Shorted Firms Now Have Weapon To Fight Back
OTC companies at last have a weapon to defeat the powerful Market Makers who unscrupulously naked-short their stock in hopes of destroying the company and walking away with the money, obligation free.
Behold: The reverse stock split, accompanied for emphasis by a name change so new certificates are clearly required.
One company just pulled it off and has giant MM Knight and other greedy MMs looking at substantial losses they can do nothing about. I have often suggested a similar tactic for Wamex.
But, heretofore, it has been "theory" – just a seemingly good idea. But Intrac, once ITCCN, now IRAC, did it quietly and efficiently without public notice so MMs would have no time to counter the play.
Now Knight, said have sold "millions" of ITCN shares it didn’t have, must delivers those millions of shares to the buyers who need to turn them in to get new IRAC shares. What are they going to do?
What they are going to do is beg, borrow and, in the end, buy all the shares they can, putting a powerful upward pressure on the IRAC share price.
A little problem there, perhaps. There may not be enough shares which NITE et al can purchase at any price to meet all their needs. That can happen when you massively naked-short, sure that you’re strong enough to kill the company and never have too deliver. Then a dirty, dishonest but barely legal ploy becomes a federal crime – whoops!
You cod urge the CEO and board of your own shorted-stock firm to quietly vote a 1-10 reverse split. If you and your fellow shareholders hold fast and refuse to sell, the naked-shorters will eventually have to go into the open market and pay a pretty price for shares they need to meet their obligations.
Knight and other MMs have contemptuously use their financial clout as a weapon to obliterate promising companies, callously unconcerned about anything but the easy profit.
But now, OTC companies have the power and the weapon. It’s available to all and incredibly easy to operate.
We don’t want to kill the MMs – just make them behave like reputable members of the investment community, instead of financial terrorists. Now the means to make the is at hand. Will your company use it. I hope so!
WOWSAAAAAAAAAAaaaaaaaaaaaaaaaa
AI
