Zeev's Turnips - No Politics Message Board

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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: Zeev Hed who wrote (35076)	2/28/2002 8:50:45 PM
From: Larry Brubaker	Read Replies (2) of 99280

Zeev, I think the current weakness in VLNC is a "stealth" floorless in place. Definition of "stealth floorless": an agreement is reached in which the bandits will buy shares at a discount to the market at some point in the future. The bandits then presell the shares (by shorting). After the bandits short the amount of the financing, the price in which the bandits will buy the shares at a "fixed" price is set, which happens to be at a discount to the current trading price. The bandits then use these shares to cover the presold (short) shares. Guaranteed profit. Why do I think this is the case? (1) VLNC is running out of money. (2) The short interest, after declining steadily from 8+ million shares over the last year to 4 million, has suddenly jumped by 500K shares last month. At the current price, it is not retail shorting going on. We will probably see an announcement of a "fixed-price" stock sale by VLNC in the near future. At that point, it might be good for a trade.

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