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Mr. Bill

06/25/04 11:11 PM

#39631 RE: skunksyard #39620

Skunksyard,

* The OS does not matter.
* All that matters is a SHORT position relative to the FLOAT

Consider the following. No one knows SQUAT right now.
Do you know the OS ? the FLOAT ? the SHORT ?

Just a few people know this like UC, the lawyer, and perhaps a few others.

Let's say 2 weeks from now a PR comes out or some SEC filings or whatever revealing what the OS, Float (OS - Insiders), and
SHORT position are.

Well use your example with a float of 20B, an OS of say 100B with UC / UC Insiders holding 80B. Now since a large number of shares have traded the SHORT might be 200B or more.

Whoever is so SHORT will come under pressure to COVER. If they shorted at .0001 it will cost them 45 TIMES that to COVER at .0005 cents.

Now that EVERYONE knows a HUGE SHORT exists and the details of the share structure are known MASSIVE buying will begin. Shorts will be between a rock and a hard place. Do I cover at .001 or hope it comes back down?? What if it goes higher? When am I going to cover? Much will depend on how deep the shorts pockets are. If it is MMs then they will have the cash. Individual traders from out of the US who may have shorted may be in a big bind as covering may not be an option as it will break them. They may be required to liquidate their account and still owe considerable money.

Hope this helps.

The KEY is NOT the OS.

What will make CMKX go is the FLOAT relative to a SHORT position.

The greater the value SHORT / FLOAT is the GREATER the Explosion. Throw in VOLUME and STAND BACK!!!