Talk:Short squeeze

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Short squeeze seems to be a phrase that is often used, yet difficult to provide anecdotal evidence it actually happens. That is what prompted me to come to this site. I'm looking for anecdotal evidence it actually happens. And furthermore, what happens when a short squeeze occurs when the shorts are NAKED shorts.

Currently there appear to be a few examples of highly suspected instances of naked short selling, and one example in particular where a short squeeze is about to take place. It is about to happen with a microcap stock from the Pink Sheets. If it's permitted, the stock is CMKX (Casavant Mining Kimberlite Inc.) The company, according to all the DD I can find, has tremendous potential to make it to the NASDAQ or AMEX, but because of the intense shorting, the PPS can't get into the pennies.

The owners of the company have recently issued two dividend announcements. The latest involves shares in a private company, soon to go public. The market makers cannot buy the stock to cover the naked shorts. So the squeeze is about to take place. It should all come to a head before the August 20th cutoff date. (the date for shareholders to be holding shares to take-part in the dividend)

Anyone wishing to observe this event for a potential case study paper should get further information about the situation from those more knowledgeable than me. I have been a stockholder for over one month, so my experience hardly constitutes "expert" status.

I do not provide recommendations one way or the other with respect to this company's stock. As all investors should know, particularly with a microcap stock, there is always a high risk of losing part or all of your investment. The purpose of this short paper, is to discover if any historic examples of a short squeeze exist, and where they can be found.

Thank you for this forum.