courtesy of the OTC short report ..
What is Naked Short Selling?
Before we get into Naked Short Selling let’s understand the basic premises around short selling.
Short selling is the sale of a security that is not owned by the seller.
The motivation for short selling is an investor's belief that a stock's price will decline, enabling the short seller to buy the stock back in the future at a lower price and make a profit.
Normally, when one short sells a stock, their broker will lend them the shares to sell. The loaned stock will come from the broker's own inventory, from another one of the firm's customers, or from another brokerage firm. The shares are sold and the proceeds are credited to the short seller's account.
As payment for borrowing the shares, the short seller is charged a fee, quoted as an annualized percentage of the value of the loaned securities - i.e. a borrower of a stock with a 5% stock borrow rate will be charged $5 per year for every $100 of stock borrowed. Stock borrow rates change daily based in large part on the supply and demand to borrow that particular stock.
If the number of shares available to borrow is in short supply and/or great demand (which is often the case in highly shorted stocks), finding shares to borrow can be difficult and expensive.
A frequently asked question and outlined in our FAQ’s but let’s look at naked short selling from various perspectives.
How does naked short selling effect the stock market?
When a seller "naked short sells a stock" they do not own the shares they are selling and therefore are selling artificial shares. This is like counterfeiting a stock. This process creates an obvious unfair advantage to the seller and an imbalance in the market as the sell side is now increased with more shares – many of which are counterfeit. There is a time limit on how long the seller can sell these shares and be naked on the trade and the time limit is 3 days. This is where the RegSho rules come in and the data we track. If the sellers broker-dealer has not located a borrow to cover this short trade within 3 days they will need to purchase back the shares they have sold on the open market. This process is referred to as a "Buy In".
"When it comes to illicit short selling, the shorts win over 90% of the time"Naked Short – A license to steal?
Naked short selling is yet another creation of the securities industry and is in essence nothing more than a license to create counterfeit shares. When you are inflating the amount of stock that is outstanding in a company, this is considered counterfeiting. The rules justify the practice by saying it helps create smooth, efficient and orderly markets. Same stuff we have heard countless times around high-frequency trading, but in reality we believe this practice leads to shady characters creating unlimited supplies of counterfeit stocks which in turn results in your investment continuing to decline and you wondering why?
I am sure you here because you are a shareholder in a company that just continues to go down, and you have no idea why. Nothing material has happened but the trading doesn’t make any sense. We hear it all the times. Most CEO’s don’t even understand, and are baffled. The worst part is, good luck getting anyone to listen! There is a major epidemic going on right now with naked short selling right now.
It's funny when we hear CEO's say , I will just buy all the shares up and own the whole O/S and they wont be able to short me anymore. Really?
Read about: Global Links Corporation and see what happened when Robert Simpson purchased 100% of Global Link’s 1,158,064 shares. Then you will truly understand how the system is rigged. Back to counterfeiting…
How to Detect Naked Short Trades
There are many tell tale signs that a company is being naked short sold. Do you think your company or investment is under attack? Here is what you should keep your eye out on:
1. Has the stock been on a continual downtrend over the past several months with no material events or known reasons for why it has depreciated?
2. Does the stock see downwards pressure anytime the company outs out a press release?
3. Do you notice any unscrupulous posts or new handles popping in bashing the company, it’s story or management? It is common for short sellers – both regular and naked short sellers to hire bashers and deploy them on the stock message boards and social media.
4. Do you ever notice weird uneven trade lots? Example, someone traded 1,172 shares or an odd lot, but frequently? This is sometimes a way that market makers and short sellers communicate with each other in the marketplace without the evidence of a text message, email or recorded phone call.
5. Are you a company that has gotten phone calls from investors who all of a sudden seem curious in investing in your company? Be wary. We have seen this ploy come out of Germany many times in the past. Traders go short, knock the stock down in the process and come calling for a financing to cover their position. Another illegal tactic but it happens!
6. If you are a NASDAQ or NYSE company, rule of thumb is If you see more than 20% of your overall volume initiated short on a daily basis as reported by REGSHO and displayed on our website as per REGSHO guidelines and delivered by FINRA you may be under attack. If you are looking to track naked short selling on OTC companies please visit www.otcshortreport.com
Naked Short Selling and The Destruction it Costs
Death to the Company
Naked short selling kills the value of companies and peoples investments by artificially pushing a company’s stock price down. For smaller companies looking to raise working capital, this causes them to have to raise funds at much lower prices which substantially increases the outstanding share count. This is called dilution.
https://nakedshortreport.com/faq
since P2O's UPSIDE SURPRISE of October 2017 (2 BoD Adds) this is what NR has had to *actually report* re: daily reg sho %s
i use a % of 30% .. and imo NR *splits* the month into 2 parts .. 1 - 15 .. 16 -31
which is why imo it's pretty easy to call *volume* time frames NR has to *show*
NR is (and has been) UPSIDE DOWN on PTOI .. but until P2O's mgmt executes
(and by that i mean 8ks' material events that will bring in new investors who can't
be run off by various SMB *aliases*) NR can control PTOI's PPS .. what NR can't
control anymore tho' is *volume* .. which is why since P2O was wrested back in
mid August 2013 .. PTOI's *annual* volume has decreased from NR's *wash trading* efforts of 36M over back to back years .. to last years *paucity* of 13.5M~
down 6M from 2016's 19M and change .. that isn't the way this *game* usually works .. NR can almost always outlast Mgmt teams .. and investors .. but when it comes to P2O .. as i've noted for years .. everyone who wanted out was *gone* by the EO Jan 2014 .. that is 4 years and counting
Historical Short Volume Data for PTOI
Date Close High Low Volume Sht Vol % of Vol Shtd
Feb 21 NA NA NA 35,690 10,000 28.02%
Feb 20 NA NA NA 28,300 5,000 17.67%
Feb 16 NA NA NA 75,049 13,549 18.05%
Feb 15 NA NA NA 33,499 33,499 100.00%
Feb 14 NA NA NA 62,048 58,171 93.75%
Feb 12 NA NA NA 61,854 47,454 76.72%
Feb 08 NA NA NA 17,900 9,900 55.31%
Feb 06 NA NA NA 27,302 2,025 7.42%
Feb 02 NA NA NA 36,240 10,200 28.15%
Feb 01 NA NA NA 16,400 10,000 60.98%
Jan 31 NA NA NA 64,822 28,869 44.54%
Jan 29 NA NA NA 19,690 1,676 8.51%
Jan 25 NA NA NA 30,000 30,000 100.00%
Jan 23 NA NA NA 85,712 27,990 32.66%
Jan 17 NA NA NA 112,500 52,050 46.27%
Jan 16 NA NA NA 18,486 750 4.06%%
Jan 12 NA NA NA 164,580 160,343 97.43%
Jan 11 NA NA NA 80,059 28,109 35.11%
Jan 10 NA NA NA 68,170 24,467 35.89%
Jan 09 NA NA NA 232,071 13,300 5.73%
Jan 08 NA NA NA 23,329 4 0.02%
Jan 05 NA NA NA 99,290 23,500 23.67% .. actually 44.79% due to t trade bypass
Jan 04 NA NA NA 266,673 101,731 38.15%
Jan 03 NA NA NA 215,354 55,756 25.89% .. actually 42.03% due to t trade bypass
Jan 02 NA NA NA 300,000 168,750 56.25%
Dec 29 NA NA NA 223,307 38,707 17.33%
Dec 28 NA NA NA 222,608 138,700 62.31%
Dec 27 NA NA NA 149,741 15,400 10.28%
Dec 26 NA NA NA 235,928 86,051 36.47%
Dec 22 NA NA NA 69,519 30,000 43.15%
Dec 21 NA NA NA 2,711 1,000 36.89%
Dec 20 NA NA NA 42,871 10,000 23.33%
Dec 19 NA NA NA 53,882 5,200 9.65%
Dec 18 NA NA NA 100,969 28,115 27.85%
Dec 15 NA NA NA 185,670 91,308 49.18%
Dec 12 NA NA NA 60,809 39,487 64.94%
Dec 08 NA NA NA 24,225 8,200 33.85%
Dec 06 NA NA NA 123,275 890 0.72%
Dec 05 NA NA NA 4,602 1,152 25.03%
Dec 04 NA NA NA 40,600 300 0.74%
Nov 30 NA NA NA 40,101 18,000 44.89%
Nov 28 NA NA NA 9,000 6,000 66.67%
Nov 27 NA NA NA 17,269 4,000 23.16%
Nov 24 NA NA NA 69,662 10,000 14.36%
Nov 16 NA NA NA 81,991 30,000 36.59%
Nov 10 NA NA NA 160,807 117,600 73.13%
Nov 06 NA NA NA 6,900 900 13.04%
Nov 03 NA NA NA 38,000 18,000 47.37%
Nov 02 NA NA NA 16,180 6,680 41.29%
Nov 01 NA NA NA 94,042 30,000 31.90%
Oct 31 NA NA NA 124,361 36,000 28.95%
Oct 30 NA NA NA 26,505 15,000 56.59%
Oct 27 NA NA NA 45,505 37,500 82.41%
Oct 26 NA NA NA 48,000 25,000 52.08%
Oct 24 NA NA NA 116,935 56,680 48.47%
Oct 23 NA NA NA 105,509 57,853 54.83%
4kids
Quote:
As much as these bashers would like to bash heavily it would appear you have detected that they are being careful already in what they say. It appears that they know the end is near and sooner then later they are going to be called on by the courts to explain. Like Ricky said to Lucy. You got a lot of splaining to do.
All these guys and their bosses are going to be walking around like hunch backs when they get their asses kicked up to their shoulders.
It will be a great site to see and very satisfying as well, to say little about the monetary reward for all those longs like us who have endured the relentless onslaught of verbal abuse as well as the price manipulation of the stock.
The tremendous work that 4kids has done in compiling information is going to be of great assistance in bringing these thieves to justice. We are all in 4 kids debt for the work that she has done for us all.
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