What is going on with CCSI?
There is a organized effort by many large professional short traders to drive the price into the ground. There is supposed to be a new short recommendation on Monday or Tuesday by a well known short seller, who publishes on the internet. His cronies have been calling MM's, top brokers, companies, breathlessly telling people to short CCSI because we are going to crush the stock. A number of his top accounts,and friends have shorted the stock in front of his recommendation. This is called "front running". This is illegal, but be that as it may, this is the way of the jungle when you are a professional short seller.
New MM's have started making markets in CCSI, FSCO, (Fiero Brothers), WMIN, (Westminster Securities). these two are short sellers.
There are a large number of shareholders that I have been trying to contact since 6pm last night to bring up to date as to what is going on. I hope that some of them that I have been unable to contact come to this board.
I have been told the jist of this report, and I am looking forward to its publication. The first part is a rehash of the street.com article of 4/15/98, and some thoughts that Avalon Group also shared with us.There is also supposed to be an article in the NY Times rehashing the old Dreyfus story.
Talks about old financings, and questions what went on 3-4 years ago. Probably questions market size, competetion, doctors unwillingness to use or need device, hospitals won't order it, etc. A complete rehash of what has been on this board for 3-4-5 months, and has been dealt with many times.
They have been unable to borrow stock, but that has not been a problem, as this is a common practice. The short position is now over 4mm shares.
This report has been the best known secret for the last 4 days. People that have never heard of CCSI have been told to short it because this report is coming. I have heard the conversations that have gone on, and it is unbelievable.
I am sure some of you have margin calls early next week, and it is tough to give you advice, as who knows what these guys are going to do in the next few days. I personally have a buy program that I am going to put into effect after reading their report, and do not know what the level is going to be, but nothing has changed. This is like the week before the FDA gave us final approval, the stock was in the toilet, and looked like hell, but we got approval, and the rest is history up until now.
I have bought and sold securities for 33 years, and I have known or heard of all of the tricks, and games, but this one takes the cake up until now. These people destroy companies to make a buck, it does not concern them one iota who gets screwed in their process. What they are doing is ILLEGAL, but no one takes any actions, or cares. The regulatory agencies pay no attention, and therefore they can act with impunity. It would be interesting to see them face a real challenge, and it would be interesting to see if this case might be a small start.
I don't know where the stock is going to be on Monday or Tuesday, and I personally will be on the sidelines, until the playing field is leveled a little bit, that is, after I get to see their report. If what I have heard is in it, it is going to be a real interesting week, because I believe "the deal" is around one of these corners.
The shorts have picked the stock apart, and the longs are in an axe fight with pillows, but if we can get an axe to use, we will try and return the favor. At some point, the short position has to be resolved, one way or the other. I personally feel, this is a rubberband that is going to snap back, and really slap the shorts.
If I had a margin call I would sell enough to satisfy myself, but I would not put at risk my entire investment, because that could be a disaster.
There is no law againstsnt buying it back at a later date, when the smoke has cleared or we have factual information on which to base a new investment.
One last suggestion. Darby has told a number of you, some who have posted, and many who have not, that the deal is with the lawyers, and they are working on final details. I would believe her, for 2 1/2 years she has called all the ups and downs, and has never told it in any way but straight.
I for one welcome this "secret" report, and it will get a whole bunch of real scrutiny, in every imaginable way. I sure hope it is specific, because I would really like to know the short story. I love fiction, an imaginative creation of pretense, a lie, a work produced by the imagination and is not necessarily based on fact.
A possible scenario. The report is issued, the stock goes down, a deal is done, and the stock goes up. That is called a whipsaw, don't get caught in it. Nothing has changed in the story, nothing. |
