Quote from AAA30:
Flyingtiger
You seem to be the expert here on naked short selling.Like a cancer sufferer being a "cancer expert". Ok. Could you go over the ramifications of this change in relation to stocks on the fail to deliver list. In whatever time it takes to get this in the Federal Register, could be months, 60 days from that day grandfathers ON THE SHO LIST will have to be covered w/i 35 days. There is a law now that says 13, but they don't enforce it. I am curious if the dealers with naked shorts on their books will force these accounts to cover, potentially sending some shares to lofty and unjustified extremes. They haven't so far. "Unjustified. I contend they are taken to levels unjustified already. Any unwinding unjustified? It already is happening. CROX????? Many Prime Brokers do not make them cover now. However, it appears some covering is happening. I know of specific instances I do not care to discuss at this point. I do not agree with naked short selling at all as it is against the rules and gives some people an unfair advantage. However some of these firms are valid shorts due to incompetence, bad management, over promotion, and over valuation. So, given we are huge commission producers, we should put a matrix in place to violate the laws to make undue profits, and drive firms from business? I think you would agree with this and we both could agree that even if it is a good short using naked ss's is still wrong. Not only that, but understand what Byrne is doing. He is contending Rocker/Gradient/Weiss shorted, published and sued to get Overstock down. He never said naked shorting. It happened, of of course, and has not been rectified for over 500 days. Byrne is after them for the other charges.
Also could you go over if this will effect the operations of market makers in both equities and options markets. None because they want to "study" it some more. That's SEC speak for "the masters say no".
I am going to read what the SEC put out but you may be able to give a clearer explanation after all the research you have done in this area.
Thanks,
Andy
If you look at JAGH, you'll see a tout piece on it.
http://www.mrswing.com/artman/publish/article_3486.shtml He's wrong. Not about the stock going up, but he's wrong about the "grandfathering", which he's saying effects Jagh. I put the link here because I'm telling you he doesn't knowwhat he's talking about before hand. He's right the stock has gone up. That is documented. But the grandfathering is mostly smoke and mirrors, and here's why.
Cox was telling people before Memorial Day, I have an email, thank you, telling people he would abolish grandfathering, and if you watched that dog and pony show yesterday, he said it. However, in the actual document, he is referring to only those stocks on SHO. That would effect only about 250 stocks or so. There were hundreds, maybe thousands of companies that were naked shorted to death before January 5, 05, effective date for SHO. He's left them to die. Why? Jagh was told several years ago there were 300 million short then. How do you cover? Where is the money stolen from the people who bought that stock? How could the company, at the time they had TV studios, analysts, even political observers signed to produce a TV show, when they lean on the stock and push it to zero?
Now, reference Sedona Corp, the company in "Phantom Shares" by Bloomberg. They have two civil actions on their behalf by the SEC, but the stock is still naked shorted to death, seriously affecting the companies ability to grow. They were w/i a week of going under. Now look at "Sedonacorp.com". Look at the releases. They have a business. Why does the XXXXXXXX Market maker sit on it every day? Why does he insist on selling at .20, when an idiot can see they could sell higher? Why has the stock never gone up three days in a row? (margin calls). If Sedona is making it inspite of all this, who is to say how many companies were put to sleep that would have made it w/o interference? How many jobs have been destroyed? I'll bet some of you guys have had your dad come home and say he was out of work. How'd it feel? That 's what this is about.
If you're looking for a play, go to TASR. I don't own it. But it exhibits early stage action like CROX. Second time on sho, good fundamental news, but still very, very volatile. If it smooths out later, it could work very well for you. The CEO is a West Point Grad, class of 61 I believe. He's complained all over Washington, and look what it's gotten him. They don't care. The money is too huge. Tasr could be effected, because it's on SHO. Hope this helps. It's killin' me.
