They have to cover. (The following numbers are use
Post# of 11040
Posted On: 01/15/2016 9:57:04 AM
They have to cover. (The following numbers are used only as example).
If there are no shares in the market, covering is going to be difficult. If the merger goes forward and the price is $0.27, the shorts have to pay that amount to whoever has those shares.
Suppose there are 600M shares in the market, but only 300M were issued by the company. Then 300M are naked shorts.
The company had already been buying shares before the divi, aprox 150M shares.
Suppose they bought an extra 145M the crazy high volume days after the divi. They would have 295M of the 300M total they issued.
If CRGP proceeds with the merger @ $0.27 per share. They have to pay 5M x 0.27 = $1,250,000 for the operation.
Whoever issued the naked shorts has to pay 300M x $0.27 = $81,000,000. This amount could be much higher. So, this is the cause of the bashing panic (paid service). I think the big naked shorter is ETrade.
Maybe CRGP has a good amount of the extra 300M. Maybe some insiders, or people from FINRA, DTCC, Nobilis. Maybe even people from COR.
A party can't say "I have the good shares, you have the air shares". There's no way to distinguish them and all have to follow the same treatment.
Does COR has CRGP shares? Sounds strange, but it's a possibility. All this lawsuit show could have the purpose to register all the share amounts/issuance in a court of law.
If there are no shares in the market, covering is going to be difficult. If the merger goes forward and the price is $0.27, the shorts have to pay that amount to whoever has those shares.
Suppose there are 600M shares in the market, but only 300M were issued by the company. Then 300M are naked shorts.
The company had already been buying shares before the divi, aprox 150M shares.
Suppose they bought an extra 145M the crazy high volume days after the divi. They would have 295M of the 300M total they issued.
If CRGP proceeds with the merger @ $0.27 per share. They have to pay 5M x 0.27 = $1,250,000 for the operation.
Whoever issued the naked shorts has to pay 300M x $0.27 = $81,000,000. This amount could be much higher. So, this is the cause of the bashing panic (paid service). I think the big naked shorter is ETrade.
Maybe CRGP has a good amount of the extra 300M. Maybe some insiders, or people from FINRA, DTCC, Nobilis. Maybe even people from COR.
A party can't say "I have the good shares, you have the air shares". There's no way to distinguish them and all have to follow the same treatment.
Does COR has CRGP shares? Sounds strange, but it's a possibility. All this lawsuit show could have the purpose to register all the share amounts/issuance in a court of law.
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IMHO
Always, always do you own DD. Only invest funds you can afford to lose and trust nobody but yourself.
Always, always do you own DD. Only invest funds you can afford to lose and trust nobody but yourself.