Blackstar, I *almost* agree with your scenario.
However, I don't agree that they typically hype the stock after shorting it lower. This is actually the false hope of the shareholders. I think that the off-shore boys are generally happy with their risk-free return, and are basically risk-averse. They are totally neutral on the stock price.
Yes, ESVS and NETZ are two separate entities financially. However, some on this thread say otherwise, that they are as good as married. Well, ya'know what? Maybe they are RIGHT. If one group of investors already has effective control of both, perhaps they are like Frick and Frack. Where one goes, the other will. So, with the SEC being more dilligent about Reg S, one little wrinkle is that shorting NETZ might be essentially equivalent to shorting ESVS, and skirt a technical violation of the rules. |
