Replies to post #175743 on Fortress Financial Group fka FFGO

[arvitar]

"down at the cellar levels Rule 3370 allows MMs to legally naked short sell into markets with buy orders when there is not many sell orders. So everytime the share price tries to get off the cellar floor at .0001, there is someone there to step on the victim corporation's market. "

First, let me try to understand this part. The FINRA website says "http://finra.complinet.com/en/display/display.html?rbid=2403&record_id=13450&element_id=3759&highlight=3370#r13450
"3370. PurchasesThis rule is no longer applicable. NASD Rule 3370 has been superseded by FINRA Rule 11860"

So, going going over to Rule 11860...
http://finra.complinet.com/en/display/display.html?rbid=2403&element_id=9703

This Rule doesn't have anything to do with "cellar levels" or MM's shorting to make the market. I think you might have quoted me the wrong rule.

Anyways...Then you say:
"As the weeks and months go by the MMs make a fortune with percentage spreads while the net aggregate naked short position becomes astronomical from all the activity."

This doesn't make any sense to me for a number of reasons, especially for a stock like FFGO. What especially doesn't make sense is that the MM's make a fortune shorting into a $0.0001 stock while at the same time maintaining a growing net short position that "becomes astronomical".

Aside from the fact that MM's aren't allowed to maintain their naked short positions for very long, that math just doesn't work out. They have to cover a shorted share before they make money. It would only cost them astronomical amounts of money to accumulate a net astronomical short position on a stock like FFGO.


Next..
This leads to apprehension among the co-conspiring MM's. They can't stop naked short selling into every buy order that appears becuse if they do the share price will gap & this will put tremendous pressure on net capital reserves for the MM's & margin Maintenance requirements for the co-conspiring hedge funds and others operating out of more than 13,000 naked short selling Margin accounts set up in Canada.

You're telling me that that MM's like Knight Capital (NITE), which happens to be a $1.3 BILLION dollar company, gets apprehension about the trades on a piddling $0.0001 stock like FFGO, and they need to operate out of a Canadian margin account?!!?

You don't really believe this, right?


Sorry, none of this makes the least bit of sense to me.

Are there any links about this "cellar boxing" done by MM's. I would like to understand what exactly it is that people are talking about here.