INDEED THAT IS AWESOME!!!
Great post bluediamonds and thank you for bringing it to our attention. I have always been curious as to SGGM and how it might be used. That's as good a theory as I've seen. Right now, as I've stated, I believe the MMs are indeed trying to cover their UCAD short as the cheaper option out of this bind rather than cover their cmkx short. So even if it means they must go on the market to buy millions of UCAD, they would rather do that than face the wrath of a cmkx short squeeze. I know some still argue that you can't cover restricted shares with unrestricted shares bought on the market. I still disagree and believe the short interests have this electronic dtc system down to a science and can somehow mask this.
But what happens if cmkx issues an SGGM dividend of 200 billion shares? How in the WORLD are the MMs going to cover 200 billion shares when there are only currently 16M shares of SGGM, most all of which are likely held by insiders. Answer? They can't. The smart MMs might realize this sooner rather than later and cannibalize their fellow MMs in CMKX knowing that it will have to be covered eventually.
No idea if any of this is true, but it makes for some great theory. The dividends are spaced out very evenly. We are seeing some outrageous trading effects from the first one with UCAD already. And then we have SGGM being dangled out there with NOBODY knowing how it will be used. Great stuff. I do believe we have passed our second plot point in this screenplay and we now move towards final resolution.
Thanks BlueDiamonds and thanks GeorgeBurns!!
Z
As always, these are my personal opinions.
Hopefully nobody in here is investing anything but "fun" money that they can afford to gamble with.
