>"There are no short opportunities either for this kind of pump and dump."
>
>Read that sentence over to yourself a dozen times or so.   Eventually you'll 
>realize you just logically said A & !A.

Jones analysis is essentially correct. It's very difficult to short Canadian 
pump and dump stocks. Most brokerages will not accept short orders for penny 
stocks. And in general, markets can stay irrational for longer than you can 
stay solvent. It doesn't matter if the stock crashes after you've already had 
to cover a margin call.

On the larger topic, fraud in Canadian OTC/"wildcat" markets is rife, and the 
penalties are few. Canadian exchanges would be the ideal location for a 
fraudulent cold fusion enterprise, and the level of corporate disclosure and 
due diligence is not comparable to US exchanges. I doubt we will get to see 
many details of Defkalion's technology and customers, and I also highly doubt 
that their roadshow includes any actual technology demonstration beyond a 
Powerpoint deck.


BRE-X is the most famous example of a Canadian stock fraud- a $6 billion mining 
company built entirely on elaborate faked test results. After the stock 
crashed, the RCMP eventually dropped all charges and other civil cases failed, 
so nobody went to jail over it. The founder was tracked down years later in the 
Bahamas by armed thugs and died shortly afterwards. It took well over a decade 
for the entire BRE-X story to play out.

The recent sorry tale of Zenn Motors (and their claims for EESTOR) could be 
headed for a similar fate based on the postings at http://theeestory.com

AF

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