*#*#*#* MODUS OPERANDI of the Short Selling Bashers *#*#*#*
I just found this Post concerning a stock called OREX (ORXX) and I have removed a few non relevant passages... It perfectly describes the actions of the SSB's on this Board and will become a Classic, IMO.... Many SSB's on this Board will recognize themselves...
-------> I have read your posts and I must say you have a good understanding of what is happening in the stocks you perform extensive DD. However, as you are fully aware trading is a game of probability. One of the best ways to put the odds on your side is to pay close attention to volatility and learn to capitalize on it. This information is what traders that short use before they just short blindly or naked. In case you are unaware of it, a MM or a financial institution probably knows nothing about the fundamentals of a company nor do they care. What they do know is when the technical analysis shows a stock can be shorted for a profitable gain.
One important key to shorting successfully is to know whether the stock has a high degree of volatility that will help your position. Organized stock bashers on a thread picking apart every little thing they can find always helps to increase volatility. Public opinion being lead into a negative is the best tactic used on the Internet. Remember once they have the public focusing on the company being a crook or scam or insider selling because the volatility of the stock, the organized bashing group focuses on the champion of the stock. They simply attack his efforts in doing DD thus attempting to humiliate and discredit him. However, I know you are a fighter when you believe in something, so the entertainment value is worth the reading.
It is extremely important for you to first understand what volatility is other than instability. On the Internet volatility means more like the ability to vaporize stock and make money. I use this term because they use stock that comes out of thin air to increase the liquidity of the market price in a stock. Thus a shorter can make a lot of money shorting the stock.
Expanding on your post of Pump and Dump vs. Short and Distort, the later is more organized and by far much more profitable. Getting people to invest in a particular stock takes far more effort and solid convincing information, than the small suggestion of innuendo and convenient short sells, which drop the price to get people to sell.
Take a stock with a historical fall such as Orex, compounded by an organized group of stock bashers insinuating negatively on any possible little item. This is a good sign to short this stock. Though you are thorough when it comes to doing DD, you apparently are not very familiar with how naked shorting out of Canada works. This has become the new realm of manipulation since the offshore tactic has been eliminated.....
Once the price started getting lowered the volume has been picking up but so did the MM codes. Apparently others short traders came into the picture. I am amazed as you are at the many different MM codes. Normally, it is only two MMs that move stock back and forth but Orex has about 5 from the codes you have published.
Lets say a Canadian influence steps up to short sell the stock for the Russian promoter or maybe another individual or institution. They naked short 100,000 shares by offering them out to the market as a short. The call is picked by a MM for say .50 knowing it is a short sell. The MMs know what is a short sell and what is a true sell at the time of the transaction. Now the MMs see shorts coming in so they might decide go to short themselves. Why not, there is no resistant buying. This drives the price down say to .375 and someone wants to bail out of the 100K that were sold to them at .50. The short covers making .125 on 100,000 for a quick $12,500.00. Now that would account for the MM code volumes of one MM to another you were seeing a week a go that started with 100K and grew to 300K as the share price deceased. Since then the MM codes have increased right along with the volume as the price has methodically fell to a ridiculous low. Now there are millions of shares associated with the MM codes.
I know you realize there will come a point when the price of the stock makes it an accumulation investment with little downside risk. Where that point is will have to be determined by the volume of the accumulation. At this time, the short sellers will get worried and try every tactic to get sells.
I hope this explains to a degree what I feel is happening more than I do about insiders selling or some other organized opinion of the bashers. Please note that organized bashers state they never own stock or are short, if compensated you would not be able to track since they would not receive stock for their services. Under the table cash is the preferred method of payment or a stock tip.
Now one more thing, which you may or may not be aware of at this time, the major cover at .068 probably erased the short position on some of the shorts. Expect the bashers to come full throttle. The accumulation stage is the deadly stage for someone who is short. They will attempt to get more people to walk away and cut their losses, not to mention, driving away potential future investors. Accumulation is the death stage for a short.
I believe somewhere I read where one of the bashers not only asked for money but also requested stock. Do you know anything about this or the post where this request was stated?
If this is what I think it is, then a case could be made that the stock was manipulated by an organized on-line group in order to put pressure on the company to agree to their demands. I believe this could lead to an interesting, as you call it scenario.?
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