Sterling's post
This post states that the naked short position is a trillion shares.
Let's say for arguments sake that the current OS is 200 Billion. If UC decalred a dividend of 1/10,000 of a penny per share, for $2 million all the naked shorts get wiped out. Only the naked shorts that can cover can become legit.
With all the short covering the pps would have to go up. Also any legitimate short positions (those holding certs) would have to cover pushing the pps even higher. Seems like a well spent $2 million.
Even without any diamonds (should I say prior to diamonds) UC could force this stock up just by declaring a dividend. He could sell into the market to recover the $2 million spent on the dividend. It would cetainly clear the decks for the "We found diamonds" PR.
This assumes that the naked short position is 1 trillion shares. But no matter what the naked short position is this solves that problem.
The other question is who holds the naked short position. If it's anywhere near the trillion shares, this is being held by one company (DeBeers?), or a few companies. It's certainly not being held by the average man. The fact that they're playing dirty pool here is more than enough reason to burn them.
It remains an interesting stock doesn't it?
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