JoFotoz
As I stated in my last post, "Back in '04 and a little into '05 there was a lot of talk about CTKH being naked shorted. I was convinced at the time that it was true. I concluded that based upon a combination of the running share count that I kept for several months that clearly showed that those on our list of shareholders were holding several billion shares. If I recall correctly, I was convinced that at the time that the float, both naked and real, totaled 2-3 Billion shares or more. Cannot remember for certain. At the time, we were all basing our estimates on the fact that the last known figures published by FH were after the RS, and started at 25 mm and had run to something like 875 mm by the end of '03. Not certain of that figure either, but I am in the ballpark."
"Then, after the dust settled, and following my trip to NY, we found out that FH had actually issued somewhere between 4.7 and 5.3 Billion new shares. IMO, that proved beyond a doubt that there were no NSS at that time. They were all real shares. FH was diluting the dickens out of the stock. And he continued to do so for another year, until the float was something over 6 billion."
"Since that time, and certainly for the last 2 years or more, IMO, the volume has been so low, even if the shares being traded are naked, they could not amount to enough to worry about. And with the new laws regarding NSS, I doubt that the current trades are naked anyway."
I assumed that my comment would be interpreted to be referring to only the periods I stated. Apparently I did not make that clear. Therefore, let me do so now.
IMO, there is a VERY GOOD CHANCE that during most of 2003, following the reverse split, the MMs took full advantage of the situation and issued as many naked shorts as they could, believing that they could drive the company out of business, and never have to cover. My chart programs do not allow me to go back beyond 5 years, so I cannot see the volume during that period. I suspect, that it was significantly higher than one would have expected if the float was truly in the 25-800 million range.
Also, following the run that ended early in 2005, I have no doubt the MMs continued to take advantage of the situation, right up to the the recent tightening of the regulations, though the daily volume would not suggest that the numbers have been huge. It is clear that they have CTKH cellar-boxed, and that situation almost always lends itself to more naked shorting.
And even now, IMO, though I have seen evidence that the new regs are helping, I would suspect that NSS have not COMPLETELY stopped, even for CTKH. So if you assumed that I was stating that absolutely no naked shorts are being traded with CTKH today, please note that is NOT what I intended to convey.
My point is that there have been several lengthy time frames, aside from the year and a half that FH was diluting, during which the MMs have had ample opportunity to amass a significant NS position, a few million shares at a time. To paraphrase something that was once said about the U.S. Budget, a million NS shares here, and a million NS shares there, and after a while you are talking about a large NS position.
The sad thing about the whole issue is that, while a naked short squeeze can be very beneficial to shareholders, IMO, FH will never do what is necessary to cause one here, therefore, the whole issue is moot. JMHO of course.
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