anyone, starting to catch up with earlier posts on this thread,
wanted to make sure all who contributed to this thread had their questions answered and received acknowledgement of their input.
the first one i found was from you
great post with legitimate issues which must be addressed
here is your post with some additions by me, it is a good start for a checklist of what we need to pull a squeeze off.
To: Cavalry (1 )
From: anyone Monday, Sep 7 1998 4:57PM ET
Reply # of 308
cav: The problem as I have see it with short squeezes that originate on SI, is twofold.
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lets start here, squeeze can't originate on si, si is one tool in a short busters arsenal, also the best way to disseminate timely information or to debunk disinformation campaigns which at times are waged against shorted companies.
a successful squeeze must have the cooperation of the company.
it must start there, totally legal for a company to defend their shareholders money against raiders and bandits the company must get involved by a) adding buying power b) not dumping shares into rallies
c)forward split good weapon d)growing business and signing new deals while battle vs shorts is waged. e)releasing timely information to keep shareholders informed, --uncertainty creates doubt, doubt creates fear, fear creates panic, panic creates massive sell offs
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1. The people involved (shareholders) are usually people with "hamburger" pockets, and "hamburger" dreams.
The squeezes usually have a bunch of people with
a few thousand shares apiece, and as soon as they make 50 cents or so, they bail.
They let the shorts out of the trap, and
that's the end of it.
They just don't have the money behind them to keep the pressure on, and so they take what they can get.
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good point that is why we need a real company with a growing thriving business. we need this to attract new investors to the table as well as keeping some of the people who got cheap shares.
nothing wrong with first ones in from taking some profits if new buying replaces their selling, the company can help with well timed news like abte's release of friday or announcing a forward split or share repurchase.
a good short buster would need a large following and multiple places to recruit new buying power.
rich friends could probably help also.
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2. This is probably an even bigger problem, and it stems from the companies.
They always seem to sell into the rise, and they kill the squeeze themselves.
IMO, if the companies would just sit back and
wait, they cold sell near the top, and turn themselves into a strong company.
The shareholders wouldn't be hurt IMO, because then they have positions in companies that have a real chance of success.
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this is a problem companies dumping shares into rallies if you ask me this is the biggest problem
a find company who only has restricted shares they cant dump
b find a company who wants to do secondary offering or private placement to expand or execute biz plan, they need share price up as much as us, selling into rally peanuts compared to millions they could raise with pp or so at higher per share price.
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See, IMO huge short positions don't develop in "good" companies, because only a schmuck (in general) would short a "good" company.
So they prey on the weaker ones.
The BB's are fertile ground for this because the SEC facilitates the shorting, IMO by having lax rules.
In addition, these companies are weak financially, (generally) if they weren't, they wouldn't be BB stocks.
So, IMO these things make a short squeeze difficult for any kind of a big number for the BB's.
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WE NEED A CATYLYST TO TRIGGER BUYING- BOMBSHELL RELEASE, CHANGE IN INVESTORS PERCEPTION OF A SITUATION, TAKE FOR EXAMPLE CMD, ASSISTED LIVING FACILITIES, IF TOMORROW GOVT SAID MEDICARE WOULD COVER FULL ASSISTED LIVING FACILITIES EXPENSES THIS WOULD BE A CATYLYST TO BUST SHORTS, PEOPLE WOULD PERCEIVE THIS BUSINESS DIFFERENTLY, NOW GOV'T IS PAYING TAB BUSINESS COULD REALLY BOOM.
financially poor companies can still help by growing business and authorizing a hefty forward split.
takes a special bb to bust a short.
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I do believe that there are a lot of "mini" squeezes.
For ex: midl, infe, zulu, csma, aipn, however they all fell back, and IMO it was for the reasons I stated.
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midl fell back because it was a joke, super octane you put in your tank and doubles the octane give me a break, owner ran off to bahamas with cash, famous si poster was writing releases for company and not disclosing the fact on si
infe is the greatest cleanest company on earth and one day that short and those crooked mm's will get what they deserve,
infe was trashed by tokyo mex and the rocketeers, they had their way with my beautiful infe, they are gone for the most part, infe is clean and pure and whole again and our day will come for infocall.
dont know the other three, just dont ever put infe anywhere near a midl, no comparison infe is a gem among gems.
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If a person could get people involved that
have (say) "millions", and these people were the ones that engineered a squeeze, then I think it could be different, as long as the company played ball.
See, the company is always the wild card, IMO.
I think the bulk of the stock has to be controlled by less people, not more.
(there's less chance of the scared rabbit syndrome)
These are just my thoughts, and
I am open to discussion about it.
One last thing, I also believe that the ground work must be carried out in
secret, and not a word can be discussed about it in public, until the trap is sprung.
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now you know why i cant release my squeeze till everything is inplace, if i can post a copy of float from ta along with
all the dd i will give people
there will be not doubters or reason for bashing
friday i couldnt wait till monday, now as i have time to think,
i realize this must be done perfectly and patiently
or mm's will have chance to plan a strategy or start borrowing shares from each other,
helps to know exactly which mm's are short and roughly how much.
cav
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