One Step Ahead

[Ignutz]

The shorts have a nice game they play with the SEC.

Step 1
Find a mark with questionable management practices or weak financials

Step 2
Initiate the bear raid and shock the market with sellside pressure

Step 3
Induce fear, create panic selloff

Step 4
Watch the shareholders and management squirm as they try to cope with the falling share price

Step 4a
Watch as management is forced to dilute share structure at micropenny PPS to pay the bills and continue operations, thereby, fulfilling the effect of the bear raid

Step 4b
Watch as management is forced into BK and never have to cover

Step 5
Should Step 4b not come around and management mangages to hold on with BILLIONS of shares out, get SEC involved to suspend trading and initiate proceedings to exploit poor management at the expense of shareholders

Step 6
Watch as company is singlehandedly crushed by regulatory agencies, eventually revoked and never have to cover

Wash, Rinse, Repeat

Except this time, the hunted has become the hunter...the shorts took the bait, hook, line and sinker.

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