China, despite the R/S and the lack, so far, of any forced NSS covering, I remain suspicious of members of this board who may work for or with NITE (and/or other MMs); and I still reserve judgement about NSS that may be grandfathered in and have not been forced to cover.
NSS is not an urban myth but a very well documented reality of the markets, especially abusive during the 2000 to 2006 period in which it was known that FH was heavily diluting; and MMs that saw what FH was doing had a perfect opportunity and profit inducement to engage in NSS. Studies and investigations have, beyond question, proven that heavy and abusive NSS occurred and the SEC was forced to take action to regulate and stop this scandal of counterfeit shares and fraud that was threatening the foundation of our markets.
I watched the trading of that period and I cannot say for sure whether FHs dilution was exaggerated by NSS but I believe strongly that there was a huge amount of NSS that occurred, and that much of that may never have been covered. There is likely a large amount of money at stake for NSS if the PPS of CTKHD were to suddenly rise and force them to cover long dormant NSS positions. This is something that would explain some of the bashing on this board.
Although SHO regulations were imposed to stop this well know deleterious practice, the regulators faced a dilemna about what to do with older NSS, and the grandfathered them in initially, rather than putting them on the SHO list. Later changes in the regulations may not have corrected these older NSS from the period of 2000 to 2006 and earlier. There is no regulation that required covering NSS, it just required that you stop doing it after failure to deliver levels were hit.
So, while MMs may not be free to engage in NSS continuously nowadays, that does not tell us that all the previous ones have been reported on the SHO list or covered.
People that come on this board and reject this idea, or that attack FH endlessly, may be just deflecting attention away from their NSS positions and trying to hold the stock down.
Some of these people could be disgruntled SHs, I agree, but how can we know which is which? The poster that calls himself Orangeman is the most outspoken critic of this idea, and the most likely to be affiliated with a MM, IMO.
We certainly have some very strange and suspicious posting on this board from bashing posters that have spent years on a board calling themselves "longs" where there has been little or no news or trading that would be consistent with a large NSS position, together with some trading action that also seems to be blocking the full value of the stock from being recognized. If these guys are not MM affiliates seeking to hold the PPS in check then they certainly are not well adjusted "longs". They have been here off and on for 10 years, bashing a non trading stock, and while I am thoroughly upset with FHs deceit and failure to communicate with the SHs, nothing explains their bashing better than a NSS theory or perhaps obsessive compulsive behavior..
One part of me hopes there is a large NSS position and that FH is working on springing a trap for those short sellers. I somehow want to see the NSS activity as giving FH a push that lead him to silence. I also blame shareholder activity like that instituted by Roundmount and other active shareholders for putting FH where he is today. He runs a small company and answers his own phone, and you works hard, so, I can understand why he may be disillusioned with his shareholders and what might have worked him to this silence.
When you try to understand why FH has been silent for so long, it is apparent that one of the possible reasons may be that he knows their was a NSS attack while his dilution sales were going on because he knows how much stock he sold and he saw what amount of NSS traded.
I am not an apologist for FHs abandonment of communications with his SHs and I believe he is definitely in the wrong for doing this, but when you consider the limited business success he may have achieved with the projects he was working on, the struggle he was engaged in for corporate survival, the possible frustration caused by a MM NSS attack on CTKH, and other shareholder annoyances to which he was (and still is) subjected to daily, he may have decided to wait until he has significant business news before he opened his mouth again. This just one working theory in my thinking about the unexplained silence.
Again, I don't condone this silence, or think it is justified, or think FH is in the right, but I consider NSS to be a problem of the time that probably contributed to the SH problems and the extremely underpriced PPS.
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