<!-- /* Font Definitions */ @font-face {font-family:"Cambria Math"; panose-1:2 4 5 3 5 4 6 3 2 4; mso-font-charset:0; mso-generic-font-family:roman; mso-font-pitch:variable; mso-font-signature:-1610611985 1107304683 0 0 159 0;} @font-face {font-family:Verdana; panose-1:2 11 6 4 3 5 4 4 2 4; mso-font-charset:0; mso-generic-font-family:swiss; mso-font-pitch:variable; mso-font-signature:536871559 0 0 0 415 0;} /* Style Definitions */ p.MsoNormal, li.MsoNormal, div.MsoNormal {mso-style-unhide:no; mso-style-qformat:yes; mso-style-parent:""; margin:0in; margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:12.0pt; font-family:"Times New Roman","serif"; mso-fareast-font-family:"Times New Roman";} .MsoChpDefault {mso-style-type:export-only; mso-default-props:yes; font-size:10.0pt; mso-ansi-font-size:10.0pt; mso-bidi-font-size:10.0pt;} @page Section1 {size:8.5in 11.0in; margin:1.0in 1.0in 1.0in 1.0in; mso-header-margin:.5in; mso-footer-margin:.5in; mso-paper-source:0;} div.Section1 {page:Section1;} -->
I think Jim Sinclair's "A Short Seller's Rational For Not Covering," is as good an explaination as any. It may apply to CLL.
"The plan of the organized shorts is not to re-buy their short positions back in the marketplace but rather to by preventing the companies from normal financing do the following:
1. Force by necessity the company to do participation financing on predatory terms on extremely exciting properties.
2. Force the company by necessity to do private placements with warrants and options that favored the private placee to the degree of dilution to the present stockholder that is egregious.
3. Force by necessity the company to accept loans terms based on their property sure to result because of short timeline in the failure on the note and title on the property to pass to the hands of the private loan note placement party.
This explains the enigma of no cover.
The strategy of defense has been to determine any and all other means of financing rather than the normal chain of broker dealer networks now making more money from the perpetrators than the operating companies."
