Thoughts on Naked Shorts
I'm skeptical Michaels will be able to curb naked short selling of HPON stock (see #reply-18296104). For one, market makers are allowed to short sell.
I'm with Savant, Michaels would be better served if he put his time and effort into bringing the Hop-on phone to market in mass. That way, when the shorts cover, everybody will share the improvement in stock price.
I talked to Michaels briefly today. He thought 10 million to 15 million shrs were uncovered shorts with about 90 million shrs oust. This situation is not as bad as GeneMax (GMXX), another penny stock with over 250% of the float short. There are so many shrs short on GMXX that price of the stock has been driven as high as $20, currently around $8.00.
Michaels indicated that he was going to "get" the people caught naked in their shorts. He commented they have hurt him personally because he can't sell his stock for what he thinks it is worth, now he will hurt them. This appears more of a vendetta than a business issue. He also lamented a low price stock was keeping him off the NASDAQ small cap market. As I said, he will be better served by tending the store since a few reported sales would do wonders for Hop-on's stock price.
Michaels indicated that financials would be filed by end of the month, or shortly there after.
On another note, Michaels referred to Hop-on as a virtual company. I trust everybody knows what that means.
When you think about it, every virtual company has its virtual shorts. |
