Zeev -- stop blowing smoke!
<< dr, if you indeed are a Dr. you should know a little calculus, just
smooth the curve to a continuous rather than discrete decline and you
will be surprised but the story is uglier and the bandit actually makes more money >>
I do know a little calculus, but I think you bring that up only as a smoke screen. You're trying to impress, confuse, and intimidate the other readers of the thread. Stock prices don't move continuously; they move in discrete increments of 1/4's and 1/8ths. So calculus is irrelevant. Besides, your logic does not become any more sound when you make the increments smaller.
Using calculus or algebra, your scenario can only happen IF SOMETHING OTHER THAN THE FLOORLESS TIPS THE SCALES IN THE FAVOR OF THE SHORTS. What that something happens to be has changed in various versions of your story.
See, you never tell the same story twice. In your earlier post on this thread, the seller was miraculously able to (a) sell without driving down the price, then (b) enjoy a price decline after the selling stopped.
Realizing that most of us don't believe in miracles, you change the story in your most recent post. You imagine that management is conspiring with the short to help the short make money.
<< In reality, he cannot short the whole position at once, that
is why his buddies at the company (thanksful for the use of the money)
cause few pump cycles just like in the good old Reg S scheme, into which he can short >>
So now the question is: How many of us believe in management corruption? Frankly, I think that this sort of collusion between management and short sellers happens very rarely, if ever. But any shareholder who thinks management is this corrupt should sell, floorless or not. If management is corrupt, in the way you imagine, short sellers don't need a floorless to make money.
But what if management is not corrupt? How does the owner of the floorless make money shorting the stock if management is not corrupt?
More generally, how does the owner of the floorless make money shorting the stock IF SOMETHING OTHER THAN THE FLOORLESS ISN'T TIPPING THE SCALES IN FAVOR OF THE SHORT -- ANY SHORT?
I've read dozens of your posts and you've invoked miracles, management corruption, announcement hype, conversion discounts, everything but divine intervention to explain how the owner of the floorless instrument makes money shorting the stock. But all of these factors would help ANY short. You still haven't told us how THE FLOORLESS FEATURE ITSELF helps the shorts.
Joe |
