Wow! What a bunch of reasons not to call in your share certificates! The one that I thought was the most strange was:
He feels that the company wants their customers to do all the legwork acquiring certificates to enable them to get a handle on the short position. He says this benefits the company/and is not in the best interests of their customers...
I can't exactly say what this broker's line of reasoning was, but this looks exactly why you WOULD want to call in your certs. The whole point of this exercise is to force the issue. MDHM feels there is a huge short position. Calling in your certs will expose this. If everyone call in their certificates at once, that will force all the shorts to cover at once. If this happens, there could be a buying panic. That could send the price way up. It seems to me that the price of the stock going way up IS in the best interests of their customers...
Frankly, both of my brokerages have told me that my shares should be safe from shorters if held in a cash account. I've stated that before on this thread. I called for my certificates simply because I want to give this strategy a chance. I don't really know whether or not my shares are safe unless I have them in my safety deposit box. The brokerages can earn income from loaning out shares for shorting. And who knows, perhaps some bookkeeper there might accidentally loan out shares from cash account. Accidents happen.
All I know about this is I'd like to see the proof of this short position, and calling in my certificates would seem to be the surest way to give me that proof. I don't even think it necessary for one to call in all of their certs. If everyone just called in, say, 80% of their holdings, with the kinds of numbers that have been discussed on the thread, that would certainly do it.
So this is a personal choice one can make to help the company prove it's position. I really don't mind doing something that will help a company, whose shares I own, become more valuable in the market place.
Today is the day to do it too, according to the watercooler talk.
--Coz |
