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Shorts are going to get squeezed!!!!! Asenio is a fruit-cake, a ranting madman whom lemmings choose to follow blindly - so self-absorbed it's sad. Asenio and I both know the majority of mutual funds buying ABTE do not participate in securities lending programs, hence fewer shares than were previously available to borrow remain available to borrow. It doesn't take a rocket scientist to figure this one out. Every time an institution buys, Asenio and his cohorts are forced to either re-borrow the shares from someone else (so the executing broker can make good delivery to the new mutual fund buyer), or Asenio must cover the borrowed position by purchasing the stock outright. The latter exerts upward pressure on the stock. Since less and less supply is available to Asenio to borrow, at some point he is forced (he has no choice per the SEC) he has to start buying the shares back to return them to those from whom he borrowed so they can in turn deliver them to their new rightful owners - the Mutual Funds. Mutual Funds aren't stupid, hence they don't make their "hot stocks" available to borrowers through lending programs. Short-selling works in the short-term, eventually every loan has to be closed out, or the borrower will be deemed in default and the lender will sieze the cash collateral at a 102% margin and will re-purchase their loaned stock. It is fairly simple...Good luck to Asssenio when he attempts to cover his loans, it won't be through borrowing from the mutual funds. He is screwed and he knows it, his press releases sound more and more and more desperate. Don't let him cover before you do, it is like musical chairs, the last one to cover his/her loan will get squeezed and will be left standing holding the bag. I hope for your own sake you are all long reading this message!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Assssenio is a big boy and can handle the loss he knows he is about to take, but can you afford it? |
