Lucky, in theory that is correct. They can pass the short around, but for that to happen the price would have to drop. They have to mark to market at a much lower price. The problem with your theory is simple, and right in front of you, this isn't a forced MM squeeze. Let me also ask you this simple question, since DTC has been frozen on AZNT, how are the market makers filling orders. It is illegal for a transaction to be conducted, this represents not only a short, in the technical aspect of it all. If you trade in the US, you will know that the broker who executes the order sends it to the trading desk, the desk then calls up for the trade. How can a MM fill an order if the DTC is frozen and credit the account. You cannot. ACT reporting of the trade is one thing, delivery to the account is another. Where is the ability to deliver. They cannot, dtc cannot debit one side and credit the other.
Now, to clarify your statement, this short squeeze is caused from the illegal sale of 4 million shares that was to be utilized as a private placement. Of the 4 million 2,000,000 was dumped, some how, through Merit Investments, possibly you, Canacord, through NITE and MHMY, and a few others. increasing the short position. JBOxford, who received the shares then DTC'd the shares out to other firms, I have the sheets would you like to see where they went once deposited. Where the law was broken, these shares were not registered and JB Oxford entered them in to the electronic system, WRONG. Another problem, to go back if we may, how does a market maker execute an order without stock to another trader. How does the delivery aspect work. In AZNT's case it doesn't, thusly a trade was conducted illegally under the securities act of 33 as amended and the act of 34, representing grand larceny, on the market maker, the firm that executed the order to possibly even the broker that entered in the buy order.
Now ask yourself this, when a trade is reported to ACT, what is the delivery process the market maker and even the trader must conduct. Every trade gets reported. So if a Market maker executes this trade, with no paper to deliver and DTC frozen, what happens, it extend the short position. MM's working in concert to pass the same block around, well, stock watch will have to pick that one off. If one M is caught conducting that type of business, eventually they will have to deliver, and the one stuck with it in the end is going to have to deliver. As for the naked short out of Canada, that is very true, Canadians do not follow their own rules why should they follow ours. If you get caught in a short hell, thats your problem and your money. Finding the Top, Mr. Lucky is what you have to look for. Short all the way up if you wish, or wait. Shorting a BB stock, a designated security is illegal. So, who do you trade through or for? |
