From what I understand the short has been around for a number of months. This is one of the reasons why the stock has been so depressed. As I tried to convey earlier the people who shorted these
"suspect" shares were hoping to sneak them past Genesis and get them
registered then unload them on the market. What happens when over a
million shares are dumped, stock dumps and the short is successful.
Unfortunately for them they were not able to get these shares registered and now they are stuck. Now all they can do is hope the
audit doesn't materialize. This is how Genesis will get rid of this
problem. They will announce the news, show everything is on the up and up, announce 1st quarter numbers, move to NASDAQ or AMEX, announce
new ventures, gold mine sampling, PACECAR opening, etc, etc. The stock
should have now problem exploding past this $2 range at which time someone is going to have to cover those shares. I don't think this will be a long drawn out court battle. Remember these people don't want to go to court about this, they know these shares are suspect and I don't believe they are going to want to tie a lot of money up in
court battles. Then again looked were they were foolish enough to get themselve into the position they are now. If they really believed there shares were good they would have pushed this thing into court. None of them have said I am trying to get Genesis into court to get this settled but Genesis is saying they are going to push the issue now. Let's wait and see, not much longer.
Greg |
