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dijeetyet

06/20/12 8:54 AM

#6202 RE: kgun #6200

It sure does, take a look around at companies with convertible debt notes, their boards will be full of reg/sho complaints and MM naked shorting conspiracy theories and all their charts will look the same , a race to the bottom. Here's how the scam works.
I lend you a million dollars and you owe me a million dollars woth of stock and te stock is trading at a dollar. While the stock is hot I short 750k shares, then when it cools down a bit I short the other 250k and drive the price down to .50, now you owe me 2 million shares. I wait for some PR's and short another 750k at .50
when it cools down again I short the other 250k and drive the price down to .25, now you owe me 4 million shares so next stream of PR's I short 150 million at .25 and dump the rest at .10 now you owe me 8 million shares. In those few steps I've made 1.75 million for the million I lent you and I can keep on doing this, since I'm in control of the stock price I can maybe buy some shares cheep after driving the original investors away, then wait for some PR's and a run, I can sell those at a high price since I won't be shorting at the time I know the run will be nice, when that's done I can start shorting again..Look for co's with a deal from Asher or Dutchess if you want to see how this plays out for investors.