e.Digital Corporation (fka EDIG)

[HotrodHans]

I know I'm going to get my ass chewed out on Agora for what I posted but I gotta think this is what happened to us (EDIG) in the recent share fiasco. All those shares traded and it didn't do a damn thing....

any comments? or am I wrong in understanding the paragraph below.


“PILING ON/FRONT RUNNING/TRADE PADDING”

An interesting phenomenon often occurs when the Canadian broker/dealer first gets visibility of a large sell order. Let’s assume that it is a 20-million share sell order of nonexistent stock “at market” to be executed in two weeks time. The typical source of a sell order like this might be a market maker with a hedge fund connection that “accidentally” got into a large naked short position while servicing a valued client. Knowing that this sell order is going to severely depress the victim company’s share price, the Canadian broker/dealer will often put in their own sell order of maybe 10 million shares and process it before processing the 20 million share sell order. The offshore corporation can’t exactly point an accusing finger should they detect the front running since they are breaking the law themselves. Now the Canadian broker will hand a 30-million share sell order to a market maker. When the market maker sees this now gigantic sell order they will often front run this 30 million share sell order with a 10 million share sell order of their own making. They know all too well what a 30 million share sell order will do to one of these thinly traded securities. Thus a sell order of 20 million nonexistent shares has now grown to 40 million nonexistent shares. This elucidates the “Self fulfilling prophecy” aspect of naked short selling. Unsuspecting shareholders will pay “real” money for all 40 million of those shares and not suspect any hanky-panky at all. How could a monthly statement from one of these prestigious Wall Street firms be telling a lie?

Thus naked short selling can work from left to right through the various steps involved in the processing of a buy order, in essence “neutralizing” the up ticking effect on share prices caused by buy orders, or from right to left with the introduction of massive sell orders of nonexistent shares.



Here's the original link posted by emit on agora.

http://www.ragingbull.lycos.com/mboard/boards.cgi?board=srci&read=1157382