Miller, Mike and ALL MIOA Shareholders...
Speaking of shorts... IMHO, here is something interesting for all of us MIOA shareholders to consider.
Back on Aug 13 (about 2 weeks ago), I purchased additional shares of a stock called OVIS at 19 cents. The short position there was suspected to be very, very high. Another shareholder started organizing a "shareholder cartel." That little stock has shot up to nearly $2.00 (over 1000%) and is now in the $1.50 range. The cartel is currently in the process of initiating the "short squeeze" part of the process. The coming weeks will tell an interesting story. If the cartel plays strongly and works in unison, the shorts may be forced to pay in a very BIG way!
OVIS has attracted a lot of attention now, but the basic idea the cartel is operating on could work with MIOA if we, as shareholders, work in an orgainzed way. The idea is to SQUEEZE the shorts by establishing enough "friendly" (or "long") shares in the cartel, then calling for delivery of our stock certificates (in "name" rather than "street") so the shorts have to buy to cover. If there are, in fact, short shares being sold illegally (naked shorts), then the short players CAN be compelled to pay whatever price the "real" shareholders ask. It is the ONE way shareholders (if acting in unison) CAN beat the shorts.
The strength of the cartel is established by the members acting in unison and holding their shares in certificare form until the price
meets pre-determined levels. In OVIS' case the lowest target range is $10.00 and even then shareholders will only be releasing small percentages in unison and not selling more until the next pre-determined level. Ultimately the cartel is looking to force the shorts into the hundreds of dollars per share range. This is possible if it is done right.
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IMO, The Key Points to building a successful cartel are:
POINT 1) The stock has been seriously shorted to a point where there are "naked shorts" (shorted shares that are NOT actually coverable if all certificates are called in). In other words, there are more short shares than there are Total Shares Outstanding. Technically naked shorts are illegal, but it happens often because it is not policed and the MMs are usually able to play with the share price and scare shareholders into selling at low prices. The MMs make millions this way by "manufacturing" shares that do not really exist.
An article was printed by Copley Pacific on short selling entitled... "Understanding Undeclared Short Selling and How it May Be Impacting Your Company." Here is a very important point from the article:
"Complaints to regulatory agencies haven't stopped the practice of undeclared short selling. However, one way companies can protect themselves is to recommend to shareholders that they take physical delivery of their stock certificates. When physical delivery of stock
certificates is demanded by a significant number of shareholders, the creators of nonexistent stock can be squeezed. The short seller won't have stock certificates to deliver and thus they will cause losses for them and will cause them to move their undeclared short activities elsewhere."
POINT 2) Get current shareholders to join (participate in) the cartel.
POINT 3) Find out the total amount of "friendly" shares in the cartel. These are essentially the "long" shares.
POINT 4) Keep the information confidential to just the cartel members. The MMs don't need to know what the shareholders are doing.
POINT 5) Get enough investors to buy shares and participate in the cartel until the cartel members control MORE than the amount of Total Shares Outstanding. The price will likely have already started to rise and the stock will likely attract more attention. The MMs that have illegally shorted the stock will try to play games with the
price to scare "real" shareholders into selling at low prices. They try at various times to artificially drop the price back down low to "shake out" more shares and thus break the back of the cartel. Often, the MMs (naked shorts) are successful. This is where the determination of the cartel members is REALLY tested. But, if the cartel is strong enough, the rewards can be astounding!!
POINT 6) As the certificates are called in, the Transfer Agent runs out of existing "real" shares. He then turns to the MMs (naked shorts) to turn over their certificates (which they don't have). The MMs (naked shorts) have no choice but to buy from "real" shareholders
at whatever price the shareholder is willing to accept (and the naked short player is pressured by the time element to make the deal). The share price is subsequently forced up until a shareholder is willing to sell. It has NOTHING to do with company performance at this point. The naked shorts MUST cover at whatever price they have to meet. It can be extremely effective in cleaning out the naked shorts.
POINT 7) Shareholders then sell, buy, or hold their shares without the adverse impact of naked shorts. The company also benefits because it is then better able to attract and keep investors on the basis of their performance without having to fight negative (and illegal) market manipulation by naked shorts.
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It appears that the conditions with MIOA might be very right.
Would anyone like to comment?
Best wishes,
Brad |
