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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: Cosmo Daisey who wrote (213)	9/14/1998 9:43:00 PM
From: on parole	Respond to of 19428

Cosmo Daisey, Thank you very much for taking the time to provide such a lengthy and detailed response to my questions. I noticed your e-mail shows PhD, do you have a doctorate in finance, just curious? The naked shorting was what I was trying to understand. Are these guys required to cover by a certain time, such as end of the month or do some just continue to sell shares that are not authorized or outstanding since very few request their certificates and many of these companies end up going bankrupt? As an investor in one of these companies what recourse would one have? The rest you mentioned was my understanding as well. I would like to play devil's advocate with you on one point however. To me the challenge with these BB companies is the timing. I don't know that I buy the theory that most of the dilution and reverse splits is due to anything dishonest although I certainly accept it can be. Many of these BB companies are in bad need of capital although it may be a viable business with good long term potential. The only way for them to make it is to obtain financing through whatever means is necessary. Many times debentures are involved so the holders of these instruments immediately short out of Canada or offshore. Also the only way to obtain capital is to dilute, reverse split and start all over again, so you not only need to have the fundamentals right with these companies, the timing needs to be exact. That is what makes these stocks so challenging IMO. ARET and PRWT or examples of two who look to have good fundamentals but I would be afraid to become involved since they each have about a zillion shares outstanding. This has got to be cleaned up at some time if they ever want to make it to NASDAQ, so guess what, reverse split. Thank you again, if you have a source where I could continue my research, I would again be most appreciative. Realist