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Message: TRX Cycle

For Gil the proof of the pudding is in the eating. That doesnt work in speculation nor in investment. The pudding will be eaten by others.

http://tanzanianroyalty.blogspot.com/2011/06/play-it-safe.html

Short really loves the help of Gil.

http://tanzanianroyalty.blogspot.com/2011/06/dirty-trick-dead-give-away.html

Mr. Gibson

“Of course, as even fresh participants to the marketplace soon understand, when a great deal of money is at stake, such curious machinations are to be expected. Nearly every share of TRX available for borrow in the securities lending market has been borrowed, and the associated borrow rate is currently approximately 15%. In the previous nine months, one or more shorts have borrowed and sold in excess of five million shares that they are contractually required to re-purchase and return”.
“Despite this technical pressure, the share price has remained firm. Our analysis suggests that the average cost basis net of interest outlay for this short position is meaningfully underwater. With 5,807,600 shares publicly reported sold short between the US and Canadian exchanges, and essentially no shares left to borrow legally, the math gets ugly fast once the short squeeze begins in TRX. When lenders of the shares last feared a squeeze could occur in February 2011, the borrow rate surged to multiples past the current 15%; imagine carrying an underwater short position at 40+% interest”.
“Worse yet, this short position in relation to average volume is very high. If it were to be covered over a period of one month, it would nearly double average volume every one of those days; imagine the marginal price impact of a sustained doubling of demand. When the dam breaks on this, there will be nothing but atrocious options available to this short”.
THIS IS TYPICALLY AN ACT OF A DESPERATE SHORT!!! (APPLAUSE)

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