Here is a copy of a good strategy from a good post from yahoo....
Since snow in North East destroyed my plans, I had sometime to do some TA and research.
Here are my thoughts. Lets start with concept of “naked shorting”. First off - naked shorts are NOT borrowing shares from their broker as regular shorts would do; all they have to do is to find the “right broker” who will let them short shares without borrowing. Therefore they may “naked short” much more than entire float or outstanding share for that matter.
Once we established that, now we know that there is no direct correlation between “naked shorting” and outstanding shares.
Bearing this in mind, the only thing can happen in case of HESG retiring shares, will only create panic of unknown among “naked shorts” and yes, they’ll attempt to cover shares they never borrowed.
The way it may happen in my opinion, even if stock price gaps up at the open, they’ll attempt to nock the price down by dumping lets say 100M-200M long shares with market order to create panic among longs, to trip protective stops and ultimately to cover at the lower price if they succeed.
I did some TA, the good thing is current trend is up and it is possible to reach .02-.03 before X-mass (without short-covering rally), of course there are resistances on the way where supply and demand comes to play. However, the most important thing for now is not to let shorts nock the price down past .0009-.0010. Current SMA9 sits at .0010 and SMA20 at .009, these are important levels.
My suggestions –
1. Remove all protective stops.
2. Put your sell orders over $0.50 or whatever maximum your broker allows – this will prevent regular shorts from borrowing your shares.
3. Place you buy order between .009 and .0010 to build the wall they cannot penetrate. If you cannot place order yourself, call your broker.
Once they realize that price cannot be lowered for them to cover, X-mass will come earlier this year and could go much higher than .03 because of short-covering rally.
If someone has account with IHUB, please feel free to post it there.
All these are JMHO and not suggestion to buy or sell.
