Don Sherman and All,
Just a theory on how things work in Vancouver,(and how they will
probable cotinue to work for some time, lawsuit or not). Don wrote,
"I have wondered why anyone would short this company after it's nice run-up last fall. Could it be that a few connected individuals knew
the play was doomed to fail."
Anyone connected to the company knows that this story was great and would not have fail, but this statement IS true. The shoters DID NOT look into STS and decide it was a scam or a great play. A shorter is not in it for the long haul, for better or worse (just worse). The shorter only needs a stock to come down. THIS stock to come down. The shorts ARE connected, to the VSE(vancouver shorters exchange), and this play WAS doomed to fail.
Who cares about angola, the shorts don't give a shit about Yetwene, Uganda, sortex machine, Riversomething?? All they need is STS. No, no, all they need is the stock with the symbol STS to go down! VSE regulations will not make a share value go up, but it sure as hell can make it come down(with no one to answer to as long as there is not to much of a stink created). So how does the VSE and the shorts decide what symbol will be played next? They test waters, look for weak management, 'unconnected' management. The halt on STS's news of proven reserves in the fall was a test, or maybe even earlier? STS management failed,or was to obliging, a pushover, or just not enough will or resources to raise a stink. Dick Roy said, "Actually my opinion is that STS should file (in fact should have filed anyhow) the application in order to obtain a formal response in writing. Rick said to me yesterday they don't see any point in continuing to jawbone the Exchange." OH! That sound tough! That will keep the sharks at bay. may as well pour more blood into the water. The VSE had their next short!!
I don't know if the shorters are done with STS or not. This could be the end of the shorters work, or they could just let the bottom fall out and cover even lower. Either way, I've been at this for only 9 months and am still paying my 'tuition'. I will hold my 800 shares (@1.25 avg.) on the hopes that they are done. If not, I'll hold them forever as a constant reminder of how this aspect of the VSE works (my reciept).
Everyone is looking for a system and I believe this is a reliable one. If a good story has no bad news, yet a huge short position on the VSE, and doesn't appear to be 'connected' to the VSE and gets constantly pushed around by them, GET OUT! (or short if you have it in you). If the story truely is good, pick it up after the fall if it is still good, when management has gone to school on the workings of the VSE, and at a much cheaper level.
Whatever you do, don't talk about lawsuits with valuable time. Like anything in life, this is how it is, like taxes, death, old age, gravity,....deal with it. Attempt to slay the giants in your spare time, or it will cunsume you. No one needs more stress.
Final note. Anyone who says this game is unfair is wrong. The rules are not obvious. Learn how things REALLY work, forget about the 'short squeeze'(never happens), and use everything to your advantage. After all, we're all in this to make money, aren't we.
Just my beliefs, others appreciated.
Smart investing.
Paul Kindel.
ps. Does anyone know the short position no BRE-X just before it came tumbling down. |
