AlanC I know you are a student of shorts sales
Post# of 96892
Posted On: 08/12/2015 9:21:20 AM
AlanC
I know you are a student of shorts sales and even naked short sales. What does all of this daily FINRA short sale evidence tell you.
If we assume that every day in the last 2 weeks there have been 12,000,000 sales, and further assume that shorts are 25% of every days transactions; that is 3,000,000 short sales per day.
Are the shorts successfully closing each of these transactions within 3 trading days, and still find it possible to control the stock price as they have?
Is it still possible to retain a naked position? Are Market Makers still loaning out their ability to create naked positions to their customers?
On the other side of the coin, if the short positions have not been closed at all, and all shorts are supported by a borrow: then there are now 30,000,000 new short positions added to the enormous short position created just to take the stock down to .007 from .023 where I originally started to buy. That selling activity was aided only by the fact that NTEK was selling new shares into the market without good news.
And then we have to talk about the borrowing cost to maintain such a staggering short position.....
And then we have to talk about the Risk of Loss vs their potential gain of forcing NTEK stock value to go to 0. The most they could gain would be some percentage of our 5,800,000 equity. Even if we assumed that shorts were 50% of NTEK the most they gain from this point is 2,900,000. Granted, the shorts that started at .05 have more to gain and they are still easily profitable; but I would bet that most of those positions have been closed on the way down to .007.
A short closing out a profitable position today that had even a bit of common sense and is obviously a risk taker/evaluator should be a natural long preparing for the trip back up.
So why continue to short today? Who are these guys?
Paul
I know you are a student of shorts sales and even naked short sales. What does all of this daily FINRA short sale evidence tell you.
If we assume that every day in the last 2 weeks there have been 12,000,000 sales, and further assume that shorts are 25% of every days transactions; that is 3,000,000 short sales per day.
Are the shorts successfully closing each of these transactions within 3 trading days, and still find it possible to control the stock price as they have?
Is it still possible to retain a naked position? Are Market Makers still loaning out their ability to create naked positions to their customers?
On the other side of the coin, if the short positions have not been closed at all, and all shorts are supported by a borrow: then there are now 30,000,000 new short positions added to the enormous short position created just to take the stock down to .007 from .023 where I originally started to buy. That selling activity was aided only by the fact that NTEK was selling new shares into the market without good news.
And then we have to talk about the borrowing cost to maintain such a staggering short position.....
And then we have to talk about the Risk of Loss vs their potential gain of forcing NTEK stock value to go to 0. The most they could gain would be some percentage of our 5,800,000 equity. Even if we assumed that shorts were 50% of NTEK the most they gain from this point is 2,900,000. Granted, the shorts that started at .05 have more to gain and they are still easily profitable; but I would bet that most of those positions have been closed on the way down to .007.
A short closing out a profitable position today that had even a bit of common sense and is obviously a risk taker/evaluator should be a natural long preparing for the trip back up.
So why continue to short today? Who are these guys?
Paul
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