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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: George8 who wrote (25750)	11/27/2002 6:51:19 PM
From: Steve Lee	Read Replies (2) \| Respond to of 27311

It is shortable if your name is Berg

To: George8 who wrote (25750)	11/27/2002 7:00:02 PM
From: The Vet	Read Replies (1) \| Respond to of 27311

George - Market Makers can and do short anything for their own accounts and they don't always borrow shares or accurately report the full extent of any naked shorting either. Shorting of vulnerable stocks has been a great money spinner for the MMs in this downturn of the market. It's been great sport on the OTCBB especially but it is not confined to it. Look at the situations currently with GMXX, BBIC, ENVC, ITOO, RMEC, VXEN . Ameritrade is not allowing it's customers to buy these stocks because the naked short positions are greater than the trading floats, and as a result they cannot get delivery of stock if somebody asks for it. That isn't the reason that Ameritrade gives of course, it says it is because these stocks have withdrawn from the DTC, but that is simply the excuse. They are hoping that the reduction in buyers will depress the price to allow the shorts time to cover, but the reality is that the owners of real stock are digging in and the trading has been reduced to MMs wash trades between each other with phantom shares which can't be delivered and don't help the shorts out of their predicament at all. It's a really interesting play with the SEC and NASD getting involved as well. NITE, the major MM by volume in GMXX for the past 4 months suddenly withdrew from making a market in GMXX today. One can only speculate why at this time.