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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?

To: dvdw© who wrote (3949)	10/31/2008 10:48:10 AM
From: rrufff	Read Replies (1) \| Respond to of 5034

Great explanation and fascinating must read re VW - thanks for posting it. Looks like some of the "never lose, always right" crowd of hedgies, so often defended by the self-styled "cyber sleupps" were some of the big losers. Expect a lot of "wah, wah, they hurt the shorts unfairly...." The casualty list of hedge funds hit by the Porsche squeeze on VW grew yesterday as it emerged that Steven Cohen's SAC Capital and Perry Capital, a key financier in Malcolm Glazer's takeover of Manchester United, were among the losers. Greenlight Capital, run by David Eindhorn, Marshall Wace, York Capital and Glenview Capital are also among about a hundred hedge funds thought to have made losses.

To: dvdw© who wrote (3949)	10/31/2008 11:44:16 AM
From: Berk	Respond to of 5034

Thanks for posting the article dvdw, I was wondering how the short squeeze could have worked. A few option MM's were probably caught as well.

To: dvdw© who wrote (3949)	11/2/2008 9:10:27 PM
From: Hawkmoon	3 Recommendations Respond to of 5034

BS.. (to the authors of that story). They miss the entire point. Porsche accumulated options and shares in the open markets, or via the same private transactions used by many hedge funds to the point where only 5.8% of the public float was remaining. And the market price NEVER reflected this reality. The fact that suddenly all of the shares that banks/brokers fraudulently loaned to shorters suddenly blew up in the face of the Hedgies is not Porsche's responsibility. It's the responsibility of the market makers and specialists to ascertain what the appropriate price should be based upon available demand of uncommitted stock and options. If anything, it's a glaring indictment of the massive naked short-selling that occurs to the benefit of the banks that fraudulently loan out shares that are not deliverable. It's further proof of what happens in more traditional derivatives markets when options are sold to a party (Porsche) without having the inventory to supply them when they are called. I hope a few more of these types of squeezes occur in order to bring some sensibility to these markets. In fact, I hope one occurs here in the US. Let it scare the begeezus out of the shorts and stop this counterfeiting of public stock. Hawk