From Dr D:

Jim, I'm not certain that I understand what you are saying. How are the abusive naked short who have no intention of covering held accountable?




The single most effective way is to simply succeed in your business plan. This is so rare for companies under attack that you rarely see it. Above and beyond that there are a variety of strategies to implement at the proper time. Operating in a sector like the junior mineral exploration sector that has ultra-high risk and ultra-high reward built into it helps a lot. These people have more discipline as to mitigating losses than we investors do. The hedge fund managers will continue to make gazillions of dollars as long as they don't screw up on any one deal big time. The management teams and compliance officers of the publicly traded crooked clearing firms and crooked MMs will also do quite well as long as they don't blow it real bad on any one deal or allow their shareholders to learn what they do to shareholders for a living. This series of attacks started when XXX was trading at over $2 back pre-Lipangue when they deserved to be trading at lower levels. The problem with these attacks is once you start it's tough to find the brakes when you need them. These people are collectively short many thousands of companies. Part of the goal is to get covering our naked short position to the top of their "to do" list. "Qualified" cash dividend distributions and tenders for assets that lead to qualifying dividends are the be all and end all.

If you study the 30-day period before any generous qualified cash dividend distribution "record date" there will be a lot of buying by opportunists but very little selling by shareholders lest they not earn the dividend. When that wave of buying comes in the naked short sellers have 3 options. They can NSS into these buy orders and be forced to match an astronomical number of cash dividends. They can sit on their hands and do nothing and let the share price break out to the upside until the % of share price the dividend represents moderates out or they can cover at the same time no natural selling is occurring and waves of opportunistic buying is entering. The second they stop their daily "maintenance" NSS-ing they must constantly do to keep their collateralization requirements in check the share price will gap upwards by itself without all of these other factors. In essence, you take away the daily status quo and FORCE them to make a lose-lose decision.

The status quo is bad in that it basically involves we investors riding donkeys with our fists clenched yelling at them to deliver the shares they sold to us chasing them across the prairie while they drive off in their Ferraris and flip us off. What you need to do is to route them into a "qualified cash dividend" box canyon and force a shoot out.