It appears Monty has some information that would suggest the short selling crack down will also be applied to small cap stocks. If this is in fact true then I would expect the juniors to benefit most from this development.

.

.

Re: Chairman’s Corner - Tuesday, July 15, 2008
Title: SEC to Move Against Short Sellers
Author: Jim Sinclair


Dear Friends,

I received the following note from my long time friend and investment manager, Monty Guild. I’m sure the SEC is motivated by market attacks on financial companies but there may be some relief here for junior entities as well. Let’s keep up the pressure on these illegal shorts, naked or otherwise.

Jim Sinclair

Dear Jim,

I know you are aware about the SEC attack on the rumor mongering financial shorts….. now they are also going after the non borrowed shorts on small cap stocks.

It used to be you had 13 days if you failed to deliver. Now it is shortening up to keep naked shorts out of the game. If this is really prosecuted, it could be a huge help for the small caps of all types in the US that have been fraudulently hammered with untrue internet postings and planted articles etc.

Next stop Canada, hopefully.

Your pal,

Monty