VLVT (was CSMA) Message Board

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Microcap & Penny Stocks : VLVT (was CSMA)

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To: David M. who wrote (3801)	12/17/1997 7:12:00 PM
From: TraderGreg	Read Replies (3) of 11708

Welcome back David M. With all that has happened today, I forgot to relay something I read late, late last night. As tired as I was, it sunk in and hit me like a ton of bricks. It is an excellent example of why not to adopt something as gospel, when it isn't. I post my mea culpa now. This was posted on the NETZ thread by Insider: "Holding certificates will not cause a short squeeze in a penny stock. why? 1. MM's can short as much stock as they want without "borrowing" certificates. They are not borrowing anyone's stock to short. 2. non listed, non margainable stocks cannot be shorted by the public, so you cannot squeeze them by removing your shares from the brokers." After reading that a half dozen times, it sunk in as clear as crystal. I couldn't believe how I hadn't seen it before. Calling for certs to stop naked shorting won't work because the people shorting are doing it with vapor shares. Calling for certs only works for marginable stocks since those LEGAL shorts have a 1 to 1 mapping with a genuine long account. It's amazing how the obvious becomes apparent...in the long run. TG

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