EnviroTechnologies International Inc. (ETII)

[bluesky2]

For newbies interested in details...

Healthnostics, Inc. (Pinksheets:HNSS - News) provided short-sale defense details.Strong circumstantial evidence indicates that there is a sizable short position in the stock. This evidence includes:
1. Contacts with the Company by individuals and firms seeking to buy large amounts of discounted stock;
2. Increased selling volume when positive news is released;
3. Attempts to dispense negative rumors on chat boards;
4. Trading activity that appears to circumvent normal trading procedures (T-trades, unfilled orders, etc.)Shorting falls into several categories:
1. Normal market-making shorting that maintains liquidity;
2. Hedge fund and investor shorting to profit from stock price declines;
3. Predatory shorting designed to drive a stock into oblivion.There are two types of shorting:
1. Legal shorting in which the short-seller borrows stock and sells it;
2. Illegal shorting in which the short-seller fails to borrow and fails to deliver stock. This is naked shorting.Short selling entails substantial risk because the potential loss is virtually unlimited. When a stock begins to make significant gains, short sellers may be forced to cover, creating a short-covering rally.The best defense to a short-selling attack is strong fundamentals. Companies that earn money and do not need to raise capital are impervious to a short attack, and this is enhanced when companies continually update information and keep their stockholders informed. Further, companies that have a policy of never selling stock to short sellers close that fallback outlet. And there are additional stratagems, the most powerful of which are the repurchase of stock or the sale of the Company.