Jetson: You might very well be right, and they short slowly , and indeed if the report on the short position in the stock is correct, and they must report their short position, as I expect they should, then indeed, they may be converting as they go. This actually pretty good, since it means that we are probably not going to go over the 450 to 50 MM shares, and that a large portion of the debenture have indeed been converted.
If this is correct, and frankly, I have no other explanation for the low short interest, then the spiral might end up soon. Maybe I should throw a little more into this endless pit.
On the other hand, in today's computer age, one rarely transferactual shares, and as long as they own the backing debenture, they can short against it, their broker is the one then charged with finding the desired stock to "borrow", but the new buyers (willingly or not) provide this source. If that is the case, I do not know how it is possible to avoid reporting the true short position. It may be time to call Sexton and find out how many shares have been issued in the last two weeks.
Anyone volunteers?.
Zeev |
