Replies to post #19938 on Medinah Minerals (MDMN)

[wdl777]

Well let's hope it's substantial and will be played out properly when the time comes. Nice talking to you, you have made some good points...off to church.

[can_wait]

In 2005, the shares traded at .005, why would'nt the NS at least start to cover at that time.

Here's a good response:

"That’s a valid point and it makes sense UNTIL you learn how our DTCC has been set up. Let’s say that Medinah “got cheap” back when the naked short position was only 300 million shares. In order to cover you need to do two things. First you need to stop your daily “maintenance” naked short selling done to keep your collateralization requirements down. Think of it as playing “whack a mole”. Every time the share price goes up the clearing firm you used asks you for a giant check to re-collateralize your 300 million share naked short position. Instead of cutting the check you smack down the share price with a burst of theoretically beneficial “liquidity”.

At some indefinable time in Medinah’s history a point was reached when the shorts couldn’t cover. When you cover you not only need to stop the daily maintenance naked short selling which results in a gap upwards in the share price but you also have to start spending the money you stole from investors. As you cover during this already gapping upwards share price it gaps up even more and the collateralization requirements on the yet to be covered naked short position goes ballistic. The pile of stolen money now drains outwards in 2 directions simultaneously. Some goes to buy back shares and some goes back to the clearing firm that agreed to hold your naked short position. In other words the crooks hit a point in which THEY CAN’T COVER EVEN IF THEY WANTED TO. From the last post:

“The fact that these ABUSIVE SHORT SELLERS never get busted has resulted in the declaration of an “open season” on the shares of development stage corporations that are not cash flow positive and therefore can’t buy back their shares when they get ultra-cheap.”

Think of these “bear raids” as a race. The crooks have a window of opportunity to bankrupt the company they chose to destroy. That window closes the second that company can get its hands on cash to buy back and cancel its ultra-cheap shares. 99.9% dead is not good enough. Medinah’s enemies had 12 years but they couldn’t finish the job. Why? Because of what’s in the mountain. You can’t bluff your way through 12 years of a battle."