OCV octaviar limited

short selling reforms too late for mfs and ocv, page-5

  1. 4,293 Posts.
    Ikeeplosing ...You make me wonder!!

    Have you been reading this OCV site or just poking your nose in now and then????????
    We have spent zillions of hours learning about short selling , margin loans and non disclosure of major shareholdings due to OPES possibly Chimaera etc etc.
    and you still dont understand how SP destruction can trigger loans to become due years before they would otherwise be due thus sending a co to the wall.

    The shares dropped ok very abruptly..on one day..100million shares turnover in one day..unusual..

    Listen to "Crime of the Century" on www.financialsense.com
    to understand the whole manipulated shorting process...

    The contracts of lenders relyed on the company being worth a certain amount..ie the number of shares and their value...but because the SP was slaughtered to 99c @ about 400 mil shares .... so the co is only worth 400 mil.approx

    ..ie short selling can drop SP and then added preesure was directors margin loans that were also tripping their sell values as the SP fell SO lenders could sell the millions of Directors marginned shares at extremely low values to cover the loans ...wanting to sell shares for whatever they could get regardless of what the REAL value of the company was.
    Then add to that OPES type brokers that held shares and might have them 'leveraged' also and need to sell...I think...Tricom was one holding a lot of MFS also..
    In a nut shell...because of the shares being leveraged, margins lenders and short selling the SP is very vulnerable and this can be totally unrelated to soundness of the company...it makes profits for short sellers all the way down.Especially if your in the know...
    That is why US and UK are moving to stop shortselling and naked shortselling because SP CAN BE smashed at will...and that is what is fueling the fear across the global markets.

    When SP can be smashed...creditors/lenders demand payment immediately NOT when loans are due ie 2011.
    Just imagine someone smashing your house and the contract on your house includes a provision that if the value falls below a certain level you had to repay your mortgage in a week !!you have to start selling everything or lose the house...You would lose the house and your capital invested.

    Now as far as the PIF goes...when all this happens to the parent CO PIF holders panic and all want their money back at one time also, but it has been lent out for building projects and they dont have it..
    NOT liquid because it is out earning top interest for you...so they have to freeze the withdrawal of funds..
    until the lent money is repayed...

    Now if you add the possiblity that the same lenders who are legally able to demand their lent money back because the SP ie value of the co is so low now...if any of the parties someway connected to any other companies that extended margin loans to Directors or had knowledge of this and knew at what price the margin loans on hundreds of millions of shares would be dumped..that could be used to their benefit if they could scare the market or short the SP...then add the possibility of picking up firesaled assets...etc etc. when the company cant pay back lenders all at once..

    MFS is broke NOW because they had to repay loans all at once and years before they would have if the SP had stayed at $3.!!!
    Can someone else explain this better...
    I am tired..the possiblities for misadventure across this market in many Companies is astounding me.
    But obviously not a worry for you IKE.

    MFS wanted to raise more capital but until the SP devalued the CO and triggered lending contracts to be in breach they would have not been in this situation..

    You must follow that..do you ike?

    Its about liquidity and the old saying Cash is KING.
    Short selling occured before the Depression..conducted by US elite ...its in the details of internet sites posted on this thread..

    The net is allowing us to hear Canadians talk about short selling and I can also see Australian investors write here on HC about the trading as it goes on and Short selling was happening BIG time in unusully explosive ways..
    BNB has some good posts by people watching the trading.
    ANZ had good posts re leveraged brokers dumping shares and their ultimate demise.

    Ike you must be kidding me and just stirring me up !!
    Imagine a short selling war..It is possible imo.
    There are so many other points but Im tired..
    thats why I may not be expressing this well.
 
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