Hannover House Inc (HHSE)

[RyGuy]

This is the theory of a Float Lock Down and how it works.

Long shareholders have to acquire the entire trading float. If the entire float is locked up into none selling hands, it doesn't change the fact that MM's will still sell shares to make a market. The SEC even tells us this is their job, to create a market security's even where the is shortages of the security available to be bought and sold. Thus requiring the Market Maker to Naked short sell.

Then the believed huge gains come from the eventual time, when the Market Maker has to cover their short sell, and buy back those shares to clean up their short position, before they start incurring fines.

This is the theory that the investors in Monk's Den have followed, it the exponential rise in share prices in CDIV, GRNO, and EIGH. If we can create the same situation here, wouldn't that be fantastic! CDIV is up over 60,000% Yet it still keeps climbing, and as a company, TDGI appears to have a much better outlook for earnings growth.

http://www.sec.gov/spotlight/keyregshoissues.htm

Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. For example, broker-dealers that make a market in a security generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board, as there may be few shares available to purchase or borrow at a given time.