Well I think I've connected the dots and I'm willing to say what I think is drawn when those dots have been connected. First let me repost my thoghts about sterling's newest theory........
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Personally I liked a lot of Sterlings theories but this one is just silly and really makes me think less of the guy for trying to have us actually believe this stuff. First of all, you can't fix a short position by making a greater short position, second of all, the way he's explaining how shorting is occurring both the first and second time in his "double short" theory isn't how shorting occurrs. And thirdly, his numbers are sooo messed up that he's throwing out numbers that aren't true (like he always does) and tries to base an arguement on it!
Example: The MM's made 15 BILLION DOLLARS! That's insane, and ridiculous for him to try to use that number to base his theory on. If I remember correctly, he came up with this number by saying the MM's shorted like 400B shares or so, doing 100B @ .05, 100b @.04, 100B @.03, 100B @ .02 and 100B @ .01. HOWEVER, when did they do this? When the price was that high a couple of years ago, the volume and KNOWN O/S was very low. So how did they short 400Billion shares on a stock that would never handle that kind of volume without dropping into the sub pennies QUICK! (I bet the'd have a really tough time shorting 400 million back then) And the volume didn't really increase into the billions until the past year when the highest the share price has been was .0004 (excluding the past month..... because according to sterling they already owned their first 400B that they made 15B off of and were now shorting their second set.) So how did they short 400 billion shares back when the price was in the pennies without the volume showing those transactions?
I can really keep going on and on about how dumb this guy has made himself look in the last 24 hrs and how much respect I've lost f or him. But their is one thing that isn't sitting right with me about this new found
S t u p i d i t y............. The fact that he went to the races this weekend, and when he came back he immediately told people this double short theory...... not "hey guys, the race was great, talked to Urban and he said this and that..... talked to jeff and he said this and that.... looked at the piece of kimberlite and saw the diamonds in them" he didn't say anything like that. This leads me to conclude that he probably got this story from Urban or someone else to spew out to Sterling's class and help cover up what is really going on (I think it's probably Urban selling shares he bought at .0001 to the MM's, allowing them to cover and making a monster profit at the same time), or he never went to Denver at all and just through the story out after he pretended to get back (for the same cover up reason). Or..... he actually belives this double short theory meaning sterling is short too......... a few bricks short!
......Thoughts?
.....The Funk
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So with that being said, I think Urban and Glen have presented the MM's with all the facts and have shown them the pickle they're in. But are allowing them to get themselves a limited window to get out of that pickle (by selling shares that have been accumulated through JEFF for Urban for this purpose) from the info presented to them by Urban and Glen, the MM's know they need to lower their short position as much as possible so they start covering their shorts through JEFF. However they do so in a orderly fashion as to not cause any unecessary price jumps or runs that will force them to pay more $$. But they do have a limited time frame here because UC will release the O/S and expose the huge short position and cause the mother of all sqeezes. At which point the MM's will just have to suck up the remaining loss, and be thankful Urban didn't turn this into a big legal and monetary mess for them by releasing the O/S AND diamond results without letting them cover a good chunk of their position. So why would Urban be so nice to the MM's? It's not cause' he likes them that's for sure. However he will need MM's for his stock in the future, and there could be a point where the MM's would be responsible for so much money, that they won't cover at all and instead let the courts decide their fate.....let a couple of guys take the fall.....pay a big fine....and still walk away with a profit (or at least not nearly as big of a loss as if the tried to cover a massive short position).
...."I have exercised the demons! can you feel it! huh!huh! ...........this house is clear!"
- ace ventura, pet detective
AIMHO!
....The Funk
AI
