Drinks Americas Holdings, Ltd. (DKAM)

[jonny1putt]

Here's my guess as to what's going on:

DKAM was found to be trading on several European exchanges without the company's approval. It is my contention that those trading on those exchanges were only there to naked short the shares. The theory is to put massive short selling pressure on a thinly traded stock and try to drive it to zero. Once the price gets close to zero, the company cannot use their stock to get financing. Usually money is tight with these targeted companies and this move could force them out of business. This event is what the nakeds want. There is no taxable event since there is no buy to balance the short sale and the illegal deeds are never exposed since the company no longer exist. What makes it even better is the naked short sales never showed up on the reported short sales in this country.

On the other hand, the exchanges that allow naked shorting of OTC stocks have their limits, especially if the stock begins to move up. At that point the nakeds are forced to begin covering with real shares. It becomes a game of musical shares with everyone scrambling to find a cover. What if there are 5,000,000 shares or more that need to cover? Imagine what that does to the share price. Imagine what it would do if Kid Rock presales were announced and a throng of new buyers appeared. Not to mention the Violator deals that are about to hit the shelves. This could get ugly for them very quickly.

I guess if I were one of these guys, I would see the window of opportunity closing quickly and feel a strong sense of desperation. I'd do everything I could to drive the price lower, including hammering the message boards nonstop to keep new buyers away and cause as many stockholders as possible to sell. I guess I would even hammer this post too. I couldn't have people even thinking that this might be true.

I happen to believe that this scenario is exactly the case, but that's just my opinion.