NIR, bashing, shorting, HLNT, Humphries, GELMON
Many posters on Ihub seem to have no idea how Hedge Funds such as NIR work. Folks, it's all about HEDGING your bet. I pick HLNT as an example because they are presently in court with NIR, the HLNT past CEO admitted to securities fraud violation, is cooperating with prosecution and was partners with Michael Gelmon and Mel Robinson. His other partned Buckeye Epstein lied to authorities while claimin to cooperate and is now serving time in prison.
The HLNT posters seem to think NIR is bashing their company because they are in court with HLNT. That makes no sense. NIR wants to force the goose to lay golden eggs not kill the goose. It doesn't take much thought to figure out that those who want to HEDGE their bet (NIR) don't try to drive the pps down. HLNT owes NIR over 6 million bucks and claims they know nothing about ever receiving funds despite converting shares to pay the supposed phantom debt. Trust me folks NIR is not bashing their Golden Goose HLNT.
On the surface NIR makes money by receiving shares to pay hard money loan payments due by the funded company (HLNT). NIR gets these shares at a deep discount. If the pps rises NIR does even better. The "hedge" here is the discount. NIR dumps shares as fast as possible and doesn't play the pump or bash game.
Another potential hedge is the shorting game. NIR knows damn well that their funded companies usually take a fast and uniform pps dive. NIR and those that call the shots there are 100% focused on hedging their bet on the funded company. In the case of HLNT this gets very interesztin for several reasons.
1. It's been shown that HLNT CEO Steven Humphries worked in concert with Corey R. at NIR.
2. Humphries was partners with a suspected NIR shortin accomplice named Michael Gelmon.
3. Humphries has pled guilty to securities fraud that also involved his son and is cooperating with the prosecution now to avoid additional charges and shorten his sentence.
4. The sole director appointed by Humphries when he got caught was Mel Robinson who is also a convicted fraud felon.
The ultimate hedge for a funding hedge fund would be as follows.
1. Convert shares at the deep discount and sell those shares into the market as fast as possible. This usually produces a 50% gross return since the fund receives shares at their discount no matter what the pps is at on the conversion day. NIR would be best served to have pumpers not bashes working the boards to provide better liquidity and a more stable or holdin pps.
2. While #1 above is taking place the pps is almost always dropping simple due to the huge amt. of shares NIR is dumpin into the market. The hedge thst would help return a huge profit would be to bet on that pps drop. That's done by shorting the stock (HLNT). This needs to be done by a third party so the Hedge Fund is not in breach of terms and drawing SEC eyes for shorting their funded companies. Some claim Michael Gelmon and his brother Cory have this function with NIR. In fact they are suspected by some of shorting their own companies in an insider hedge opperation that includes issueing shares to yourself and shorting your own company.
It doesn't take a lot of thought to see how these folks would evaluate a hedge opportunity when it presents itself. A quick look at the HLNT management and their association with Gelmon makes this company (HLNT) very interestin. Add that the past CEO Steven Humphries is tryin ta save his and his sons ass by cooperating with authorities looking into all Humphries companies and associations and it gets mega interestin.
The bottom line is that NIR doesn't bash it's funded companies, period. That would be stupid and they're not that. They don't have to bash. Just dump shares as fast as possible and if the shortin position is taken the dumpin act itself insures success there.
