Replies to post #6358 on American Green Inc (ERBB)

[alj14]

Stehsucker,

Thanks for your important and well-argued post. Your radical perspective of including the virtual shares (or 'antishares' whose function is to destroy the value of authentic shares) in the total count is in any case salutary, as it focuses minds on the enormity of the problem. You are estimating a figure as high as 300 million (bringing the total effective float to 620 million). In the past I have heard figures that range widely, between 20 million and at most 150 million, but none as high as 300 million, so for me yours is a record estimate. You may be right. Several sources state that it is extremely difficult to formulate a precise figure, because all this shorting is totally illegal, and those who do it do their very best to hide their tracks. But I realise that it is possible to monitor and do research on this to some extent, however time-consuming it is.

Now that the second major has signed on, I take it that Peter now feels free to initiate the steps that will lead to the migration of SunnComm to a market like the AMEX, where the shorters will have a much harder time, and may all be forced to cover definitively, in a frantic rush. At the same time, the way will be open for institutional investors to build up holdings.

Every item of good news that comes out makes it increasingly evident that the real value of each SCMI share -- at least, the core value it would have if the situation had not been grossly distorted by naked shorters -- is far above what we are seeing now. With every day that passes, their situation is becoming less sustainable, becuase it becomes more and more evident that the share price is out of tune and out of joint with reality, and that the company's revenues are taking off. At a certain point the best interest of shorters will be to cover and go long. Events will help them to make the right decision! In a case like this, the manipulators risk having their hands chopped off.

My coda is that I hope that the whole scandal of naked shorting, and of the criminal intent that powers it, will finally explode, and that legal and regulatory counter-measures will be put in place to finally expose and punish those who do it with the full force of the law.


alj14