Make Money--Here is a capsulized simulation of your scenario.
First, there's only 100MM shares max in the float(at least I hope that's all<g>). Second, let's assume all those who don't agree with your concept sell to all of those who do agree with your concept.Further, let's assume the transfer is done casually with no change in the bid x ask, i.e., still at .0100 x .0110.
Now you have 100 MM shares all in the hands of those subscribing to the 1 month hold at all cost strategy.
IF the 1 month crew refuse to sell then one of two things will happen:
1. No one will buy a share for 1 month, because there are no sellers who will sell a share for 1 month...a highly unlikely possibility.
2.MMs will start short selling the stock to new investors. The new investors aren't part of the 1month crew, remember? OK, the MMs will then LOWER the ask to shake out shares that they just SOLD. This will happen even if the 100MM share 1 month crew holds pat. As the NEW investors get scared, they will sell to the MMs who will simply be covering their prior naked short and pocket the difference.
The MMs can keep this up and have no worries shorting and covering non-existent stock. What will stop this is if the company changes their name and/or the symbol and declares a dividend. Then they have to cover. But from who? There won't be real shares available for one month, all the legitimate shares are held by the 1 month crew. Right??
Now we come to the paradox of your plan.
The only, and I mean only, way to reduce the naked shorting by the MMs and produce a price increase would be for buying of real shares to occur...and for real buying to occur, some of the less than true blue 1 month crew will have to sell some of their shares. Not too much mind you, just enough, to meet some of the buying desire. As the bid/ask rises, a little more of the 1 month crew shares will have to be sold. If this keeps up for a couple of days, the MOMO types will jump in and the buying pressure will get stronger and then a little more of the 1 month crew shares can be leaked out. To be sure, some MM shorting will go on and they will continue because they will try and average UP their short position to be ready for that day when the price peaks and heads down. Other MMs will help drive the price up because, rather than average up, they will cave in and cover in the short run.
It's a great idea, but unfortunately, highly unlikely to work. What is more plausible would be to ask/hope that only 5 or 10 percent sell and that they do it slowly.
TG |
