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To: jhild who wrote (9254)8/17/1998 4:06:00 PM
From: wonk  Read Replies (1) | Respond to of 11684
 
jhild:

If he owns the company again, I suppose that he could authorize the corporate counsel to drop that suit against himself. Heck, he might even have the company go after Jack now.

I think this is right on. Everyone always talks about shorters. From a practical perspective, who are the only people who can short an OTC:BB? Those who hold shares. The insiders (Christensen? Gort?, who else) probably sold half their holdings during the run-up and shorted the other half (a covered short, no problem for a BD). Now at a penny they cover and have the same profit if they had sold 100% at the peak and have control of the company again. With control, they dismiss the lawsuit.

No holes in the strategy, except for the SEC or a possible criminal fraud investigation and that can be tied up in a legal morass for years.

JMHO mind you.

ww