cato / trading

Great Brazilian man - there may be more holes in this that swiss cheese but to me it makes sense in light of what we are seeing... ponder this.
Thought mmm - maybe /maybe not but i know if it's not a holder change this volume can only come from this type of play... Anyway...

It has been bought to my attention a similar thing was happening in FMG not long ago when Twiggy called on ASIC and the ASX as he felt his share were being used against his own Company to sell it down.

NAKED SHORTING..... of course this is illegal - more reason why it make so much sense here right now.

The obvious - shorts falling on ASX data down to 162,000 as we have stated and i think Dr. Golf did again recently this is an irrelevant number as no-one not even the ASX know the 'real short position' - the obvious...for we lemmings is that it on the surface as though they are closing out slowly and steadily...remember opposites cato....if that is how the 'market mechanisms 'are made look it is the exact opposite of reality.

So after say 6 weeks and 15 -20 million shares being traded and we have no holder notice change where has the volume come from when we know well over half is held and not sold?

A Hedge Fund borrows the stock of a willing participant of say 5 million shares at $5 per share for 8-12 weeks interest of 10% $625k of interest.

The lender has loads of subsidiary company's so it doesn't trigger an effective change within the register the nominee fund knows they they won't be selling and they also are aware of no news for 2-3 months ...and all pundits were tipping the market to ease off and we had the disaster ( ha ha of Emu)...the perfect shorting storm.
The real beneficial owner may not even know the lend is being used against them...but i think we know how cosy the big boys in the Financial Worlds are ...if they believe in the stock they may even use the pending tsunami to grab themselves a few more shares..... they didn't hesitate to keep buying from $6+ down to $2.60 when they were acquiring now did they? And what has changed since them doing that...KAR is much stronger in asset value!

So share has retraced 50% or so....and they have to close out at some stage probably in another 3-4 weeks so still plenty of time to continue....up a few cents at the open down 20c each day and close with a flurry of heaps of shares at days end closing out the shorts as to alarm no-one ...because of course the naked shorts aren't disclosed .

So the nominee company maybe / maybe doesn't know it has lent it's shares that it isn't selling...it pockets the fees and the interest and get's it shares back.

It may well have lost a paper profit but it isn't selling...likewise the account might pocket a million in interest and fees ...just whilst they wait for KAR to improve it's assets.

So they close out from 3.5 to 5 in a couple of 2 million trade days...hedge funds make a fortune...nominee account gets their shares back with a healthy lot of fees added.....fund manager gets his bonus and the big boys get all the cash!!

Of course it is illegal....so how else do we explain so many shares trading and no holder notice and the exact same trading day in day out?

It is controlled by one party...no doubt a hedge fund and no doubt with the full knowledge that nothing will happen.

How many speeding tickets would the ASX have issued KAR if it had of run up at the same rate.... why investigate the liquidity means loads of $$$ for them via trading dollars.