Thursday, February 7, 2013

Altius Earns A Royalty

Does the chart justify the opportunity? As we all saw, the price fell before Alderon released their BFS. There's no reason for the price drop. If the BFS was junk Altius lost next to nothing. This was pretty much a pure gain for them but the sp was driven down! Is this naked shorting? See: Short Study

Looking across the spectrum of my watch list makes me wonder if the entire Jr market has been a victim of these devious actions. What naked shorting does is it inflates the legally set number of shares for a brief period then reduces it to what was prescribed by the company. The exchanges know this is being done and have done nothing except to pay the responsible parties for doing it.

The effect of the naked short is to drive the price down by selling fake shares. These are shares sold for less and not actually bough back. There's zero risk! Retail can drive the price up and it will just get walked down again. Sounds crazy? Read the report cited above. This is a fact.

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