Subject: Delimmas Answered
A couple of delimmas have come up over the last days postings. The answers to those questions are easy to find if you want to read 3000 posts. I'll save you the trouble and dispel some myths:
1. Why are some armchair analysts able to find hundreds of millions of shares out there?
Quickly reading over old edgar filings they think they found a weak link in the cartels idea of what is going on. they have failed to take into account the reverse splits. Yes, this company, once under different management used to have a shamefully huge public float. It's current management has reduced that float exponentially over the last year or two. You have been told over and over that reverse splits are bad news. Yes they usually are if you are holding the shares during and directly after the reverse split. Once you have allowed the market to adjust the value of the shares, and once the company turns a profit (like OVIS), one of the greatest buys in the world is a previously reverse split share. If you are holding shares that reverse split, you end up with many less shares than you started with, and when those split shares drop in value, they drop hard, especially under mm drive downs. If you buy shares that were previously reverse split, and undervalued, you end up getting a much bigger chunk of a company for your money. You know you should buy on dips. A reverse split makes a wonderful, magnified dip once the smoke clears.
2. Why aren't there any shorts reported for OVIS?
Excellent question. One answer already posted, is that OVIS is a bb stock that doesn't have that data reported. There is another answer:
Nobody (very few anyways) is legitimately shorting this stock. The legitimate shorters probably have covered. Shorters tend to be smart and knowledgeable investors. They are people just like you who sift company data, perform due diligence, and pay attention to the threads and news. These guys borrow legitimately bought shares and bet they will go down a little. If it works they repeat the process all the way down. This is legal, ethical, and a standard common means of balancing out market forces. It is part of what makes the market work. After the first couple days of OVIS going up, these guys saw which way the wind was blowing and covered.
WE ARE NOT TRYING TO SQUEEZE THE LEGITIMATE SHORTERS!!! We are squeezing the market makers. Our goal here is not to crush the guy who was hoping to buy back borrowed shares at a nickle profit. We are trying to trap the people who sold non-existant shares! Market makers sometimes gamble that a company will go out of business. When they do that, they sell shares with impunity knowing they will never have to cover. They sell millions of
"Non-existent" shares and flood the market. They aren't really selling you shares though, they are crediting your account with the promise of shares. That is where this squeeze comes from. It is incredibly important to the mms that this stock not go up in value. If it does (and it is) they have to pay for every single share that they "Created" and sold to people like you and me. Calling for Certificates is a way that a force outside of the market (the transfer agent) creates a new demand for the legitimate float. When that happens, buying force doesn't come from new investors so much as it comes from the mms themselves buying shares from one another and from you to cancel those debts (promises of stock they made to you). Since you have legally purchased shares, you are the only person who can give them that stock. Now YOU get to decide what that stock is worth and when you will sell it. I hope you pick a very big number.
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RG |
