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Alias Born 04/19/2012

Re: None

Saturday, 04/28/2012 7:23:09 PM

Saturday, April 28, 2012 7:23:09 PM

Post# of 163761
How to prevent a short attack.

Let me share my experience with you and see what can be done in case SIAF does become a victim of a short attack.

A. Before the attack

- Transparency is key. In the filings.
- Make sure you have strong shareholders who actually know a lot about the company. Because the worst thing that can happen is all of the institutions dumping your stock.
- A dividend, obviously.
- Have an emergency plan ready

B. After the attack

- Be proactive. Seek the help of the SEC. After all, the attack can only be succesful if market manipulation is involved. Meaning, a hedge fund will dump the stock on the very day that articles are published. That's illegal, and the SEC should be able to trace them. A lot of companies see the SEC as a burden. But when you are at war with the shorts, they are your friend. At least, they ought to be.
- Immediately increase the dividend. Perhaps make it quarterly.
- Immediately announce a share buyback program and actually DO the buying.
- Don't interact with the shorts but be responsive to the shareholders. Silence is deadly.
- Sue them.
- Again, transparency! Tell the shareholders as much as you can.

The good thing is, if anyone can do it, SIAF can. That much I know.

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