Good points, Dave.
However, I think FAMH is a prime candidate to be regularly shorted because it has the following elements:
1) excellent potential for mid/long-term success
2) a following which includes several strong shareholders holding large numbers of shares
3) an internet audience which is extremely fickle -- some who can't decide whether to cheer or boo -- several who think they can run the company better than its principals.
4) few daytraders -- doesn't move fast enough.
We all believe in FAMH's potential; that's why we follow the stock. And because some people have socked large sums of money into it, they are going to promote it in order to protect their investment.
What we don't often see is the people who appear out of nowhere on this thread, pump the hell out of it, then disappear.
No, the people who spend the most time posting here want the company to do well, but have the feeling they are getting jerked around by the company's management. So, the dilemma they face is whether to continue to believe in the company's future, stay the course, hold their shares, and complain like crazy hoping management responds to their concerns -OR- sell and leave. Some have done the latter, but I would surmise that far more have held at least part of their shares and continue to play the waiting game. BTW, I fall into that category.
Here's where the MM's take advantage of this somewhat unique scenario. The stock is not going to absolutely tank. Too many strong hands. It goes up a little or down a little each day. Sometimes we see sustained moves in one direction or the other over the course of a few days. By all accounts, it's a slow mover. What better type of stock to short? There's very little danger here -- it doesn't move fast enough to generate problems for the MM's. Slow and steady, right?
I think though, at this point in time, we have crossed the Rubicon. This past week, the line was pretty definitively drawn in the sand by many shareholders and management responded as best they could. I think the financials are in the hands of the SEC and have been for several days. I believe first time filers have several hoops through which to jump before they receive listed status. I believe this takes time, far longer than Firamada management expected. Firamada inadvertently set themselves up by promising something they couldn't deliver in the identified time frame. But, it's out of their hands now. IMO, bitching and moaning at this point will not speed up the process -- the financials will appear when they appear.
In the meantime, this stock continues to be a prime target for simple shorting games. Up a penny, down a penny -- MM's make money either way, as long as somebody is willing to sell so they can cover the shorts.
Cautiously optimistic (and necessarily patient) on FAMH.
Scott
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