Replies to post #89 on Alamos Gold Inc (AGI)

[pjf]

re Sinclair's article:

This sounds like a good idea except for one thing. As long as there are physical shares being held at brokerage firms what's to stop them from being "borrowed" 2 or 3 or 1000 times over? When someone borrows shares for the purpose of shorting they are being sold. They end up in a position to be borrowed by someone else. It's my understanding this can go on forever and that one person or organization can borrow the same shares over and over again.

If people start to take possesion of their certificates all it does is decrease the liquidity of shares to be borrowed. Until every last share certificate is taken home, there can always be shorting.

If an organization gets too deep into shorting, and share price starts to go against them they will be tempted to short even more to get the share price down.

The only thing I know that can fix this situation are for regulating bodies to put some limitations. It's beyond my understanding why the regulating bodies permit so much shorting. Anyone can see the potential disaster this could inflict on any economy.

Cheers,
Pierre

[marcos]

Interesting longjon, thanks, i hadn't seen that .... generally i'm extremely suspicious of these 'call yer certs' campaigns, as they are such a standard ploy of sleazy bulletin board promotions ... you may find this thread, and links from it, amusing [too bad the hog-calling wav doesn't work, i pasted the wrong one into the header, the real one was a hoot] - http://www.siliconinvestor.com/stocktalk/subject.gsp?subjectid=27482

Every share sold short is a guaranteed future purchase of stock .... provided the outfit doesn't go belly-up, in which case none of this matters to longs ..... also provided that there is no naked shorting, which should be a hangin offense, since to sell something that doesn't exist is fraud, outright thievery ..... but overall i see shorts as part of the market, they provide a useful function, they help to keep it liquid and supply a bubble-popping service without which pure garbage could be bid to the moon until it was all hung on suckers, and then tanked from far higher

Good to see a skweeeeze once in a while though -ggg- .... such a thing is not inconceivable in gold, as i think generally the degree to which it can capture speculator interest is grossly underestimated .... i find it difficult to imagine that there are not a dozen or so Soroses out there scheming up how to run it big and cash in, since this makes eminent sense in a world of shakey fiat, they'd just be trending with their friend

Piece from Puplava this morning - http://www.kitco.com/ind/Puplava/jan282003.html

'The gold camp is divided into several investor classes. There are mainly four categories when it comes to investing in gold. They are as follows:

1.True Believers
2.Nonbelievers, Hedgers & Short-Sellers
3.Momentum Traders
4.Clueless John Q's '