KAT Exploration Inc (KATX)

[Jim Bishop]

The daily FINRA report of short sales is useless, it's not an indication of short interest.

As for the float. As some have said, it's the total outstanding minus the number of restricted shares.

But you're partly right, if people are holding in certificate form in their sock drawer, or people are holding on tight, sure, the "effective float" is reduced...held in "tight hands" as they say.

BUT, I wouldn't count on tight hands, people can change their minds in a heartbeat.

Put simply re the FINRA daily data:

Until a security is delivered, it is considered to be technically short.

If I sell some KATX today, it will show up as a short sale on FINRA records until my MM meets the buying MM "at the window".

This can take up to 10 days. All you are really looking at is the sell side volume minus any flips or buy side through the same dealer. For example. If I buy 10 shares and you sell 20 shares and we are both using NITE and this is the only volume they handled all day long, the system would show NITE is short 10 shares until they deliver your stock to the buyer. Understand?

Stock is never delivered the same day you sell it. That would not be possible.