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Sunday, July 13, 2008

Oil & Gas Trusts are a Good Defense Against Naked Short Selling

I just listened to Jim Puplava's interview with Bud Burrell on naked short selling. It is a scary interview and quite frankly is quite worrisome. There are companies with more shares on brokers books then shares issued by the companies. This is basicly fraud.

My portfolio is mostly oil and gas trusts which pay healthy monthly distributions. A naked shorter would avoid these stocks because the stockholders would expect a monthly cheque which the naked shorters would have to cover.

I hope I am right.

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