A Post from Raging Bull about Cornell from someone who knows alot about Cornell Capital and the way they work;
Cornell is a HEDGE FUND, and their agreements provide for shares in a DTC account specifically so that their shorts aren't naked. Furthermore, and unfortunately I don't have access to information that can substantiate this, I suspect that when they do a deal they put the word out to the participants of their funds who short the stock to 'bolivian', then in some cases once the price is hugging the bottom they start buying up a controlling interest.
My advice to the CEO in question is that the way to beat short sellers is by becoming profitable, so he should do whatever he can to make that happen.
I'm curious about something here, I noticed a reference to c-shell production in their filings. Does the company have a deal with David Dering or are they ripping him off?
