InvestorsHub Logo
icon url

serfdom

07/27/05 2:14 AM

#2842 RE: solfnod #2839

I believe I know how to beat Shorty....

But you're not going to like it. There are three solutions I am aware of. Here are two of them:

Through my experience on another stock, I have learned that the only way to beat the shorts is NOT TO BUY OR SELL. Additionally, the company should release very little "good" PR.

It is our normal buying and selling that feeds Shorty. A great PR is his best source of income. And with every bit of good news, Shorty will be there at the ask -- pumping loads of counterfeit electronic shares into the hands of eager buyers, pocketing the money, then waiting for the dilution to drive the stock down all by itself. It's a guarranteed win for him. Once excesive dilution drives the SP subpenny, Shorty may decide to cover, or he may just walk away since it is now a "dead" stock and no one cares anymore. The faithful longs have all sold out for huge losses, and the stock has become just a momo play for daytraders.

So you have to cut off Shorty's profits by NOT TRADING THE STOCK. Make him trade with himself. He will try to settle his oldest position by selling them to a different MM, so he pays the spread each time. Additionally, a FS can really hurt him. It's true that the short position will remain at the same $ amount after a FS -- but Shorty is required to have a balance of up to .50 PER SHORTED SHARE in his margin account. So a hypothetical 2:1 FS would increase Shorty's margin requirements by 100%. That's another way to cut off his profits -- by tying them up in a high margin balance.

The third solution, well, that's a story for another day.
icon url

explorer186

07/27/05 9:30 AM

#2851 RE: solfnod #2839

solfnod I suggest we push for action if we don't see signs of covering by the end of this week. Let's all put limit sale orders, and see if the fish eat the bate.