An investor can do only one of two things: buy or sell. Establishment brokers, investment bankers, founders and stock promoters are all on the sell side to public investors: the widows and orphans. Generally, insiders acquire shares for next to free from the company’s treasury. They spend energy and money to market these shares to the public. Economically, they are in the same position as short sellers with two very important differences: short sellers do not bear the burden of marketing costs and they do not have easy access to the insiders’ information. The buyers are the general public. They make significant profits only if some insider has been asleep at the wheel. Since he does not bear the cost of promotion insiders must pay, when the short seller has as good or better information than the insiders, he is at a financial advantage.
Establishment insiders hate short sellers. Literally, they believe short sellers are stealing profits belonging to them. Insiders pay for the promotion so they feel the high share price is their property right. Their view of the general public, the widows and orphans, borders on contempt. There are exceptions of course but not enough to require any additional comment.
[box type=”alert” style=”rounded” border=”full”]This is not an investment opportunity. It is an anti-investment. Should you decide to participate, you will not be buying shares to provide capital to management that will sell widgets. You will seek to profit by being one step ahead of the thieves running the establishment stock promotion system. In theory you will be promoting an honest market by making it more difficult to overprice shares. In reality, you will also be eating the insiders’ lunch. [/box]
This is not an investment activity or a business. It is war!
You do not have the option to not participate. If you choose to ignore reality, you will nevertheless suffer the consequences of your inaction. The establishment will still make war on you.
You are invited forthwith, to be an active participant, in your defence and profit from a good offence. Your participation can take the form of civilian staff, soldier, supplier, intelligence operative, financier or introducer.
[box type=”note” style=”rounded” border=”full”]For reference purposes, the following economic formulae is used in the book – The Art of Speculation during Civil War – and also the definitions of the abbreviations contained herein.[/box]
Speculation Short-selling Formulae
OSP: opportunity for speculative profits
FMP: free market price
COA: cost of arbitrage
SP: speculative profit
GOP: government-obstructed price
FMI: free market income
GOI: government-obstructed income
COC: cost of circumventing government obstruction
[tabs style=”default” title=”Formula Equations”] [tab title=”One”]If FMP exceeds GOP plus COA then OSP exists
Or:
FMP > GOP + COA = OSP
FMP – (GOP + COA) = SP[/tab] [tab title=”Two”]If GOP exceeds FMP plus COA then OSP exists
Or:
GOP > FMP + COA = OSP
GOP – (FMP + COA) = SP[/tab] [tab title=”Three”]If the first FMP plus (COC) is less than the second FMP, then OSP exists
Or:
FMP1 + COC < FMP2 = OSP[/tab] [tab title=”Four”]GOP1 + COA < GOP2 = OSP[/tab] [tab title=”Five”]FMP > GOP + COA = OSP[/tab] [tab title=”Six”]FMP (FMI) > GOP (GOI) + COA = OSP[/tab] [/tabs]Extraordinary speculative profits are possible with minor risk if you verify the truth, properly use logic and keep it private. The establishment will continue to make war and milk the public. If you understand exactly how they are doing this, you will also be presented with the possibility to learn how to protect yourself and profit far beyond the norm. If you are short selling shares that the establishment is short, your risk level is low and potential for profit high. This is not investment activity or undertaking a market risk. It is speculative profit in time of civil war.[box type=”info” style=”rounded” border=”full”]Excerpts from the Art of Speculation during Civil War – Sun Tzu Meets Jesse Livermore is a private manuscript copyrighted 2012 by Art Fixed.[/box]
Read more of: The Art of Speculation during Civil War
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