One Big Short
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by: rook_to_q5
Long-Term Sentiment: Strong Buy 07/18/03 12:07 pm
Msg: 151012 of 151059
Seems to me it is apparent there is one big short. A hedge fund. About three years ago, the hedge fund manager determined he had made a mistake shorting REFR. The hedge fund manager asked asensio to try and intimidate RFI into selling treasury shares to cover his short position rather than buying stock in the open market. RFI told asensio to hit the road and he reported to this to his boss (the hedge fund manager.) The hedge fund manager became enraged and decided to try to destroy RFI rather than cover about 300,000 shares in the open market (a huge mistake.) The hedge fund subsequently shorted an additional 1,500,000 shares legally and maybe as many as 500,000 shares illegally.
RFI did not fold. What the hedge fund manager did not realize was that the REFR longs had organized and created their own support groups to analyze and distribute information. No group of equity investors had ever been so organized and able to resist the pressures of a well financed hedge fund.
The investors were winning the battle with the hedge fund when the bubble burst, 9-11, and Enron collapsed. The hedge fund got a great break and had an opportunity to cover at much lower prices than it could have dreamed possible just months earler. However, arrogance and greed once again seized the hedge fund manager and he missed his last great opportunity. For, during those dismal days of the market disaster and recovery, RFI was continuing to build the relationships that would foster the commercialization of SPD.
Once again the investors in REFR have gained the upper hand. They realize they are fighting one major short and his gang of thugs that include out-of-work disc jockeys and an assortment of non-achievers. All the thugs can really do is bash RFI on chat boards. The thugs have been identified and their messages discounted as a pack of lies.
The war plan by the longs is relatively simple and effective. They hold their position during attacks on the stock price. They let the big short expend his inventory of long shares to drive the price down. They build their inventory when the price bottoms. In this way, the longs can compete with the shorts for the shares being purchased and the big short can never cover his position. In addition, the longs are ever viligant to make sure their shares cannot be shorted.
RFI licensees are working on a host of projects that will bring the SPD technology to the masses. Make no mistake, that day will come. The hedge fund manager is going to fight like hell but to no avail. |
