It is an impressive piece of research. I have been chewing on this issue for some time in regards to LNC. In no way do my efforts match the work done by the author of this blog. However, I do have a different take on what is going on.
The blog seems to take the view that the strategy is ultimately about accumulating stock far below true market value. I am not convinced this is the actual agenda. [e.g. in this most recent blog, the author demonstrates in the case of LYC the large instos now hold less of the stock and more has passed into the hands of retail holders.... This is inconsistent with the notion of large holders rorting the system to accumulate]
Admittedly on far less work and research, I hold the view that the massive shorting operation is the 'funding tool' used by the high frequency traders [HFTs] to gain the financial ability to 'herd' prices into a trading channel which they then exploit.
I do not think they care to own anything. They make an excellent income by just 'clipping the ticket' on a multitude of trades. [Owning stock requires due diligence and research, followed by the usual risks.]
I might be wrong, it is only the conclusion I have come to thus far. From time to time I have put up these thoughts here and there on HC. I did so recently on the LYC page where I tried to paint the picture as clearly as I could ... as far as I see things. The link to that post is below for any who might be interested.
