Fortress Financial Group fka FFGO

[Karl43]

An interesting read from the Mining play message board on this subject.


Reply #170 on: August 09, 2010, 06:52:14 PM »Quote
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Here's how things are going to get interesting. The 94% of sales made today being "short sold" means that they were "naked short sold" by MMs theoretically legally selling fake shares to inject liquidity when buy orders dwarf sell orders. The new laws state that even these "bona fide MMs" must "purchase or borrow" those short sold shares before the opening of trading on T+6. Historically, this was no big deal because they could always illegally buy fake shares from a co-conspiring MM to gain compliance. With a dividend around the corner it is going to be tougher to find a willing co-conspiring MM willing to naked short sales to the first MM in order for him to gain compliance. To complicate matters, as the share price goes up so too do the collateralization requirements on these preexisting probably astronomic naked short positions. To really complicate matters if a press release were to come out and say the dividend is for cash or shares of a huge mining firm and the ex-dividend date is on "X" date then this is the same as hanging out a "FREE MONEY" sign to all buyers getting in below the dividend price level. The share price should gap to 98% of the dividend amount in about 5 seconds