Hi Brain: Maybe I sould have said "some" indications lead me to
belive that maybe AOL is short selling her own stock. I'm sure
someone is short selling, ( daytrading it; by gapping it up then buying back the same day ) and this don't work the way I'm seeing
it unless the market makers are in on it in some way.
As for AOL , Motives to do it..well this "does not" have to depress
a stock..it can support the price, at least for a while, as what
they skim on the short sell can be put back into buying more
shares thus the company or underwriter owns more stock,
it can be used to support a sort of buy back program.
Why would they do that ?
Well they can sell it down the road, ( and it really cost them
hardly nothing) but for the present it gets the
price up..and lets some of the wind out of the sails, of the
distrators..primarly the team of lawers who are after the insiders
trading and selling off on her fall..if they can get the price
back up..thoes stock holders who sold back in OCT..will have a
more difficult time claiming losses related to the insider trading,
as AOL can point at.."well had they not sold then .they could have
got so and so." I think there is a hard push on to get the price back
up to 55 if she can get there even for one day, that will take lot
of heat off thoes 18 who sold on it's fall.
If what I have deduced is happening..look out when she makes that
55 , 56 mark..as if she needs cash then the accumulation going on
with the short sell will have reached its goal, and likly
turn into a sell off.
I'll have to look, at some old prospectus, were the underwriters,
even state..they will support the price using any one of several,
means availabe, but that such support may be removed at any time.
They do not ome out and say they will short sell and accumulate,
but that is one of the options open to them..and because rules
are so ambiguious it's hard to make a legal case aginst them.
Wall street hates any rules they don't make themselves.
IN short, Short selling does not have to artificially "depress"
a stock it can be used just as well to artificially run up
or support the price if it's set to accumulate slightly more
stock on the down swing than it sold on the peak this type
of accumulation cost them nothing..but when or if they need dough..
look out below, because stock holders will get hit in the head
with a 2X4 as they sell off. This is not the first case of this
I'm seen, in addition it gives the insiders a bonus in respect
to the options they hold, ( they will know before hand just like
they did last time ) in the long term..it hurts the share
holders who are latter left holding a somewhat empty bag.
They got away with it once..why not again ?
Aol is not going to turn a real profit, if they show one it'l be
smoke and mirrors, this is a scam, but it's so big it's got
respect..and we don't dare call it by it's true nature..a Ponzi
scam this big would embarrase so many people..you can pull just
about any kind of scam..if you can make it big enough..then latter
say oh I didn't know..the fact you got so far with it, causes
the watch dogs who didn't catch onto it before, to then
pretend it didn't happen..all we ever prosicute is the little
scams..been that way for years, read "Will Rogers" auto biography.
jim
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