Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?

To: Dick Jaffe who wrote (1608)	11/22/1997 12:34:00 PM
From: RealTime	Read Replies (1) \| Respond to of 11708

I wish someone on this thread would enlighten me on how the original 700,000 share shorter was able to do that. As I understand it, in order to short a stock it has to be marginable and BB stocks are not marginable. I also understand that market makers do have the capability of naked shorting. But the 700,000 short was not a market maker. He was described as an individual who had some connection to the company and thought he was due 700,000 shares as a result of some contractual agreement. So, allegedly, he then decided to sell in advance of receiving his shares. Then he never got the shares and angrily continued to short them. HOW DID HE ACCOMPLISH THIS IF HE WAS NOT A MARKET MAKER? David Smith, can you cast any light on this? Dick Do any of you gurus have an answer to this?

To: Dick Jaffe who wrote (1608)	11/22/1997 12:35:00 PM
From: TraderGreg	Respond to of 11708

I too used to think that a stock had to be marginable to short. My Scottsdale broker swears that a BB stock can't be shorted BUT to paraphrase F. Scott Fitzgerald, "the rich(Shorty and his Crew) are different than you and me." I cannot swear that the particular Shorty we are referring is or is not a MM, but it makes no difference. His "operation" is intimately linked to one, OK. To be sure, the original short position was covered, until his shares were pulled by the Company. BTW, the pulled shares were over 1.2 Million. Through his direct or indirect methods, he was linked to a MM who agreed to let him short. His original "covered" shorting(that isn't covered now) has been given a deadline, a deadline that has slipped at least one extension. I think the drop dead date is the end of the month. In general, Dick, these BB stocks get shorted all the time by players who borrow shares without permission and then repay before anyone knows their gone. Legitimate shareholders asking for certs is the equivalent of going to a parking garage hours before the car jockey thinks you're coming and demanding your car from him, while his buddys are joyriding in it. Pure naked shorting in the FUTURE could theoretically resume but these guys will be very reticent about trying to short a stock where the vast majority of certificates have been called. It's so much easier for them to beat up a stock with no fundametals, a large float and where dilution is rampant. TraderGreg