Ann: Change in substantial holding , page-20

kdropper,

what's there to stop me from lending my shares to you, you then short selling those shares on the market, me buying those shares on the market from you, me lending those shares I just bought from you back to you, you short selling those same shares, me buying those same shares on the market from you again, me lending those exact very same shares that I just bought from you that had been previously lent to you by me for a similar purpose? at the end of the day it's a loop that creates extra shares, which I then can charge extra fees and interest on you.

At any point in time my asset book will look like:
aLNC shares (+) #aLNC shares

And your asset book looks like:

(-) #aLNC shares

where 'a' is the number of shares and '#' is the number of lend/sale cycles. The '#' of cycles is limited by the amount of money I can raise to purchase the '#a' LNC shares. Say, a = 1000 and LNC shares are trading at $1 and I have $10,000. Then I can create 10 cycles and add 10,000 new shares into circulation.

My asset book at any point in time, taking it one step further, will look like:
aLNC shares (+) #aLNC shares (+) b (-) #aLNC shares x share price of LNC shares

and your asset book will look like:
(-) #aLNC shares (+) #aLNC shares x share price of LNC shares [to the limit of b]

where 'b' is the cash in the system.

The amount of interest or fees I charge will be directly proportional to the number of cycles (#) and # is inversely proportional to the share price in the above formula, so the lower the share price the more # I can create.

Sorry guys, just trying to work out schemes on how the system has managed to get to 8% cumulative shorts (from what has been "reported") when half the issued shares belong to Bondy. And why the share price has sunk with the increase in shorting activity.