Mr. Federico Pignatelli decided to offer dividend a tiny amount ($0.001) per share to activate audit and thus stop the short and start a short squeeze.
Call and/or email to IR of MNKD for attention to Mr. Federico Pignatelli's recommendation to small biotech businesses.
Part of the SA article
If a company declares a stock dividend both the naked short seller and the short seller are on the hook to deliver those shares to the lender. This forces the short seller to "buy to cover" so they can return the shares to the lender. Couple this with the typical price appreciation of a dividend announcement and the fact that short sellers can get caught in a stampede that is self perpetuating because all of the short sellers try to "buy and cover" or exit at once. This phenomena is known as a "short squeeze" and drives the share price higher as shorts rush to the exits to close out part or all of their positions or at least whatever is required to satisfy the stock dividend requirement. Stocks with a high percentage of the float sold short are particularly susceptible to this phenomena.
Naked shorting can also effectively be accomplished via an illegal option strategy abusing the market maker exemption for short sales called a "reverse conversion". The SEC has caught onto this scheme and recently put out a "Risk Alert" detailing how to identify this activity but few think this "risk alert" will amount to any additional enforcement. The net result of illegal reverse conversions is a flood of fake shares that the short seller pours onto the open market in an attempt to quash rallies or stifle the stock price. These option pirates would be affected, just like a naked short seller, by a company issuing a stock dividend.
Yesterday I printed the article and mailed to:
28903 North Avenue Paine
Valencia, CA 91355
Phone: (661) 775-5300
Today I will be calling to recommend this. If enough people mail or call in, this might get on their radar and actually make a difference. It would cost them close to nothing and would help with stock manipulation, which clearly we(including Mann himself) are all sick of.
Sentiment: Strong Buy
Brilliant idea. Then why dont they do it. What are they waiting for. They should make a stop to this madness. What can we do in order to make them aware of this option or to push them to?
Sentiment: Strong Buy
As you can see from a prior response to your comment, some people just do not have any imagination. A dividend of only $000001 per share would only result in about an outlay of about $400 dollars, but would accomplish what original poster noted related to the shorts. It is not the size of the dividend, it is the fact that a dividend has been declared.
genius idea. have a startup biotech w/ no revenue start paying dividends. i'm sure that will fare well despite us continuing to raise money just to keep the lights on and biz moving forward. plain stupid.
sometimes i wonder if people actually stop and think about what they're saying and advocating. some really dumb people here.
byergo, you never stop unimpressing me. well done.
Great idea. As, I stated in a prior post. I sold some shares to lock in profits. I would love to see the shorts get burned. I think it should be outlawed. Also, I wish they would raise the margin requirements to 75% gradually.