I think Rivet is saying to the market makers if your naked shorting HSCC you better stop think twice and cover the short. And if you don't here's how they are going to stick it to you. The rules as I understand are no naked shorting. Shorts are supposed to cover in 3 days. Over time 12 players could easily buy 58 million shares of a stock. The mm's that are left with a short position on the day that the Dirty Dozen own 58 million shares are the Bagholders so to speak. Sounds like giving them a taste of their own bad medicine. It's a trap laid out and explained to them. If they are stupid enough to enter then it's their own fault.
So what does that leave the mm to do? Short more shares hoping the company will go out of business. The company doesn't use dilution to raise capital won't have any effect. A bigger naked short just digs a bigger hole for the mm to fall into.
The smart and only option IMO is for the mm's to quietly cover any shorts on HSCC and support the price. Shorting and naked shorting it just creates better opportunities for the Dirty Dozen to flip and get to the 58million target sooner. Price runs up mm's sell shares they don't own. Then knock it back down 30-40% to cover. Rivet is right in their with them selling at the top and buying back.
The simplicity of it is beautiful.
He called the deep V-notch early this morning. Was anyone paying attention?
By: rivet
12 May 2010, 10:50 AM EDT
Rating: post rating 0 Rate this post: Msg. 966269 of 966291
(Reply to 966221 by energy_wave)
Jump to msg. #
Nice V-notch forming on HSCC this am, pull back to test the .04 level. Per 100k sold at .058 will buy you 145k at .04. What can I say except.
Thanks
rivet
-------------------------------------
Rivet has been watching HSCC since it went public in 2005. The post above shows he's right one the money.
Dude
News 
Market Data 
Discover 
