E pluribus unum
You said: "Dutchess is a perfectly hedged. In a rising market, they buy an appreciating stock at a discount from market prices. In a down market, such as we have witnessed for the last fifteen months, they short the stock. If the stock doesn't decline, they cover at a discount. If the stock does decline further, they make even more money."
Two words for you - Thank you - the voice of reason. As I have said repeatedly to deaf ears it seems Dutchess plays both sides - short and long - for them to be a funding source in the most risky of securities - the OTCBB - they cover their A$$.