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Gold Seeker

09/10/10 11:40 PM

#27245 RE: mata hari #27244

Mata Hari, do something useful. Find the connection between Tara Minerals and Mitchell Hull's warrant fund.
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mata hari

09/23/10 11:42 PM

#27326 RE: mata hari #27244

mr. mata. i believe goldseeker was correct that warrants are used in this space to establish short positions:
goldseeker posted 3/10/09:

1 investor stated: "a short squeeze would be nice. i haven't sold one share of this stock in over four years. it may be time to buy a bit more..."

from what i know about shorting, it would be foolish to short a penny stock without protection. that is why brokerage houses do not allow retail to short stock below about 5 dollars. i would guess that this particular short may have warrants that limit top side exposure. with that in mind, you would be unwise to assume a short would have to purchase shares if the stock price ran away. it is possible, but i highly doubt it.


when i look at the effective amendment filed 7-09-10 to an s-1 filed by bocx back in the fall of 2008. page 55:

if any selling shareholder enters into an agreement to sell his or her shares to a broker-dealer as principal, and the broker-dealer is acting as an underwriter, tara minerals will file a post-effective amendment to the registration statement, of which this prospectus is a part, identifying the broker-dealer, providing required information concerning the plan of
distribution, and otherwise revising the disclosures in this prospectus as needed. tara minerals will also file the agreement between the selling shareholder and the broker-dealer as an exhibit to the post-effective amendment to the registration statement.


circumstantially it sure appears that an otc bb company, tara minerals, needing capital to fund their described attractive mining claims, would not be long bocx warrants. is hull capital using “warrant strategies” to raise capital for tara minerals? any thinking person would not conclude that tara minerals is long bocx warrants.

i wonder when tara minerals would have establish a short position in bocx shares? a year ago? maybe not.

goldseeker is again right when he/she/it/they state that the filings are not usually messed with by scammers. i’m thinking that one or more market makers must have a swap agreement with hull and tara. i wonder if the pipe hedge fund, hull capital, has an establish strategy with regards to this apparent swap agreement? i wonder what they are willing to do to insure their position makes money?

sincerely,

hari houdini