Gino, these people aren't short. They just have nothing better to do with there lives.
As a non-hypothocatable (non-marginable) stock, it is illegal for any brokerage firm to lend shares to short unless you are a Broker
Dealer. And then only if they have to do this to create an orderly
market. (I was the President of a BD and an MM for ten years) No brokerage firm that doesn't want to run afoul of the regulators, (Reg T or Reg U) would lend this stock.
However, it is possible for the stock to be "Sold Not Long" through certain foreign brokerage firms since they do not have to adhere to the US rules. These firms will allow US accounts to place such sell orders, BUT do require a minimum of 100% maintenance. Ie. if you sell $100,000 of stock you must put up $100,000 of cash or other suitable equity. (The proceeds of the sale does not count) If the stock goes up then immediate additional cash or equity is required to keep the maintenance at 100%.
So you see, when someone on this site tries to say they have shorted this stock, then they are probably just blowing smoke.
Art |
