This information applies to all investors and I'd suggest that some of you copy/paste it to other boards to make this information available for others to consider. The squeeze is coming closer. The PPS of some stocks will surly benefit soon.
Monday September 17, 11:49 am ET
WACO, Texas--(BUSINESS WIRE)--Brian Pardo, Chairman of Life Partners Holdings, Inc. (NASDAQ GM: LPHI), parent company of Life Partners, Inc., issued the following open letter to all of its shareholders:
Dear Shareholder:
It has come to our attention that a major stock brokerage firm is directly soliciting shareholders of Life Partners to "lend" their shares to the firm. In return, the firm is offering a small fee for this loan. While completely legal, LPHI management strongly urges all holders of our stock not to lend any shares to anyone and, further, to make it clear to your broker that your shares are not to be loaned out to anyone.
We believe this solicitation to borrow shares arises from the fact that there are as many as 1.5 million shares short in LPHI stock. We also believe that a substantial number of these short sellers have failed to borrow the underlying shares that they have already sold. In order to fulfill the sale, they must borrow or buy shares from current shareholders. Short sellers want the price of the stock to go down. The more the stock price goes down, the more money they make. They can borrow the shares, but only with your permission. If they cannot borrow the shares, they have to buy on the open market.
We think short sellers are getting desperate for shares. If, in fact, some of these people failed to borrow the shares they sold first, then let them bear the consequences.
We appreciate your continued support for management and urge you to contact your broker to make sure your shares cannot be borrowed.
Sincerely, Brian Pardo, Chairman
