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TransGlobal Assets Inc. (TMSH) 780%
I just realized this has anyone noticed that IHUB is showing TMSH up at 780%??? How does that work?
http://investorshub.advfn.com/boards/hotboardsrelative.aspx
1 Environmental Infrastructure Holdings Corp. (EIHC) 2,222% 346 Recent News for EIHC EIHC 0.069 0.034 97.14% 3,956,361
2 WENR Corp. (WNRC) 1,450% 203 Recent News for WNRC WNRC 0.25 0.055 28.21% 170,120
3 Diamant Art Company (DIAAF) 870% 87 DIAAF 0.0065 -0.0125 -65.79% 77,015,154
4 Diamond Discoveries Intl (DMDD) 788% 143 DMDD 0.03 0.007 30.43% 8,875,827
5 TransGlobal Assets Inc. (TMSH) 780% 243 TMSH 0.11 0.011 11.11% 326,756
I decided to see what else it was showing up on.
This one shows it big and Green.
http://investorshub.advfn.com/boards/tcloud2.aspx
And looks like it is getting some notice out there on this list.
http://investorshub.advfn.com/boards/most_post.aspx
TMSH Golden Cross
LOL! Well if you want my opinion, this one was much better and the price is now 15% higher than in this chart. The I also like this fact as well. That we have a Golden Cross! That is very bullish IMO.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63712552
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63714274
How about this one too?
TMSH = 11.24 Million Total Shares Shorted
TMSH is green today. I think this is a trend that could continue through the month of June.
I was not really thinking about the short interest and what I could see was really not impressive. I decided to look into it a little further and what I found out was very interesting. There actually might be a very large short position in the stock after all.
I think that the shorts are getting borrows against their short position and the rest of you real traders know what that means.
I think that the shorts are in real trouble here.
A few points of interest to look at. I noticed that the SEC does not have the May Data available. Not even for the first half, I find that strange.
But what is really important to notice is Accumulation/Distribution has consistently gone up, the entire time since December, and the shorting has been just as consistent. Which more likely means that the short position is fairly large, maybe even larger than what Buyins.net reported on May 2nd. Then I saw this report from Buyins.net.
If anyone tries to state the shorts do not exist, then you know they are the ones shorting IMO. You can also see all of the rules and regulations for shorting and naked shorting at the SEC website.
http://www.sec.gov/foia/docs/failsdata-archive.htm
http://www.sec.gov/spotlight/keyregshoissues.htm
I also put the links below to tie in the information for you.
I noticed Buyins.net has also been following the stock. And their information matches the FINRA and the SEC data.
Look at this Press Release from Buyins.net. Look at the size of the short position!
http://finance.yahoo.com/news/BUYINSNET-Updates-TransGlobal-pz-2970600552.html?x=0&.v=1
* Approximately 11.24 Million Total Shares Shorted Since November 2009
* Short Squeeze Expected to Begin Above $0.159
The total aggregate number of shares shorted since November 2009 is approximately 11.24 million shares. Approximately 32.48% of daily trading volume is short selling. The SqueezeTrigger price for all TransGlobal Assets (OTCBB:TMSH - News) shares shorted is $0.159. A short squeeze is expected to begin when shares of TMSH close above $0.159.
I would think that the "SHORT SQUEEZE TRIGGER PRICE" is much lower now, probably only about .12! IMO.
Click for original Report: http://www.buyins.com/reports/tmsh3-24-11.pdf
Click for updated SqueezeTrigger: http://www.buyins.com/images/tmshstr4-30-11.jpg
Click for updated Friction Factor: http://www.buyins.com/images/tmshff4-30-11.jpg
Friction Factor calculates if a fair market is being made in the shares of TMSH. 35% of the previous 37 trading days have been positive or bullish-biased and 65% have been negative or bearish-biased.
Can you say unbelievable? What were these people thinking. I am now thinking this is building to become the "Perfect Storm"!
http://www.sec.gov/foia/docs/failsdata-archive.htm
Here is the April SEC Data for Fails to Deliver (Naked Short Sales)
20110401|89366P105|TMSH|6110|TRANSGLOBAL ASSETS INC COM STK|0.15
20110404|89366P105|TMSH|6501|TRANSGLOBAL ASSETS INC COM STK|0.12
20110408|89366P105|TMSH|6851|TRANSGLOBAL ASSETS INC COM STK|0.09
20110411|89366P105|TMSH|5661|TRANSGLOBAL ASSETS INC COM STK|0.09
20110412|89366P105|TMSH|3645|TRANSGLOBAL ASSETS INC COM STK|0.09
20110413|89366P105|TMSH|1208|TRANSGLOBAL ASSETS INC COM STK|0.09
20110414|89366P105|TMSH|4748|TRANSGLOBAL ASSETS INC COM STK|0.07
20110419|89366P105|TMSH|37486|TRANSGLOBAL ASSETS INC COM STK|0.08
20110420|89366P105|TMSH|7075|TRANSGLOBAL ASSETS INC COM STK|0.09
20110421|89366P105|TMSH|6447|TRANSGLOBAL ASSETS INC COM STK|0.08
20110425|89366P105|TMSH|5637|TRANSGLOBAL ASSETS INC COM STK|0.11
20110426|89366P105|TMSH|873|TRANSGLOBAL ASSETS INC COM STK|0.08
20110427|89366P105|TMSH|1000|TRANSGLOBAL ASSETS INC COM STK|0.08
20110428|89366P105|TMSH|1000|TRANSGLOBAL ASSETS INC COM STK|0.07
20110429|89366P105|TMSH|9661|TRANSGLOBAL ASSETS INC COM STK|0.07
Now these Naked Short Shares may have been covered, but I really doubt it because they probably did not figure the company would get any financing at all. Looks like the shorts guessed wrong.
There are a total of 103,903 Naked Shares that were FTDs. This is a definite Red Flag because that means there were shorting and basically have been for a long time and have not bothered to cover the short positions. This will play into the longs hands very shortly.
Date Change BuyVol SellVol NetVol
4/28/2011 -$0.0030 26,549 125,782
4/27/2011 -$0.0080 90,738 233,164
4/26/2011 $0.0000 77,800 170,263
4/25/2011 -$0.0340 176,523 639,762
4/21/2011 $0.0380 609,563 511,559
4/20/2011 -$0.0090 55,736 89,140
4/19/2011 $0.0100 5,510 58,320
4/18/2011 -$0.0200 132,565 226,763
4/15/2011 $0.0150 357,309 315,441
4/14/2011 $0.0100 234,190 425,600
4/13/2011 -$0.0200 26,325 155,092
4/12/2011 -$0.0030 87,450 211,390
4/11/2011 -$0.0020 86,600 197,794
4/8/2011 -$0.0040 77,003 168,674
4/7/2011 -$0.0150 30,200 37,430
4/6/2011 -$0.0088 19,750 181,543
4/5/2011 $0.0088 22,000 13,000
4/4/2011 -$0.0200 33,210 119,105
4/1/2011 -$0.0300 55,828 103,605
3/31/2011 $0.0250 130,430 98,004
3/30/2011 -$0.0300 28,552 71,830
3/29/2011 $0.0000 2,325 10,000
3/28/2011 -$0.0389 22,850 75,290
The FAILURES TO DELIVER ("naked shorts") HAVE BEEN MINIMAL (which I think means shorts are getting BORROWS on their short sales, IMO):
SETTLEMENT DATE CUSIP SYMBOL QUANTITY (FAILS) DESCRIPTION PRICE
20110324 89366P105 TMSH 5323 TRANSGLOBAL ASSETS INC COM STK 0.15
20110325 89366P105 TMSH 91263 TRANSGLOBAL ASSETS INC COM STK 0.17
20110328 89366P105 TMSH 603 TRANSGLOBAL ASSETS INC COM STK 0.15
20110329 89366P105 TMSH 12804 TRANSGLOBAL ASSETS INC COM STK 0.14
20110331 89366P105 TMSH 6110 TRANSGLOBAL ASSETS INC COM STK 0.12
SETTLEMENT DATE CUSIP SYMBOL QUANTITY (FAILS) DESCRIPTION PRICE
20110324 89366P105 TMSH 5,323 TRANSGLOBAL ASSETS INC COM STK 0.15
20110325 89366P105 TMSH 91,263 TRANSGLOBAL ASSETS INC COM STK 0.17
20110328 89366P105 TMSH 603 TRANSGLOBAL ASSETS INC COM STK 0.15
20110329 89366P105 TMSH 12,804 TRANSGLOBAL ASSETS INC COM STK 0.14
20110331 89366P105 TMSH 6,110 TRANSGLOBAL ASSETS INC COM STK 0.12
The other problem lies here, that "short sellers" are SHORTING AND GETTING BORROWS on their short sales as well as the FTDs, IMO:
Date ShortVolume TotalVolume Percent
4/27/2011 62,200 323,900 19.2
4/26/2011 39,200 248,000 15.81
4/25/2011 295,796 822,700 35.95
4/21/2011 370,165 1,139,100 32.5
4/20/2011 43,877 144,800 30.3
4/19/2011 15,500 63,800 24.29
4/18/2011 99,015 359,300 27.56
4/15/2011 309,574 677,200 45.71
4/14/2011 288,290 687,700 41.92
4/13/2011 40,000 181,400 22.05
4/12/2011 80,290 298,800 26.87
4/11/2011 89,500 284,400 31.47
4/8/2011 70,524 245,600 28.71
4/7/2011 31,470 67,600 46.55
4/6/2011 105,810 201,200 52.59
4/5/2011 33,000 35,000 94.29
4/4/2011 25,500 152,400 16.73
4/1/2011 56,500 169,400 33.35
3/31/2011 82,020 243,500 33.68
3/30/2011 38,627 104,400 37
3/29/2011 2,200 12,300 17.89
3/28/2011 27,290 132,300 20.63
Now here are the RegSho for TMSH.
http://regsho.finra.org/FORFshvol20110502.txt
20110502|TMSH|48849|0|283527|O
20110503|TMSH|10000|0|52286|O
20110504|TMSH|2500|0|44342|O
20110505|TMSH|7000|0|283490|O
20110506|TMSH|93381|0|276630|O
20110509|TMSH|8950|0|63950|O
20110510|TMSH|17500|0|163180|O
20110511|TMSH|10000|0|194423|O
20110512|TMSH|18000|0|79310|O
20110513|TMSH|10000|0|30000|O
20110516|TMSH|5000|0|31700|O
20110517|TMSH|80100|0|175300|O
20110518|TMSH|54446|0|138968|O
20110519|TMSH|160000|0|406325|O
20110520|TMSH|66340|0|130100|O
This is just to show that the percentage for the daily volume is very high.
If anyone tries to state the shorts do not exist, then you know they are the ones shorting IMO. You can also see all of the rules and regulations for shorting and naked shorting at the SEC website.
http://www.sec.gov/foia/docs/failsdata-archive.htm
http://www.sec.gov/spotlight/keyregshoissues.htm
This document is under revision. Please see the following documents for updated information: 34-58775, 38-58774, 38-58773, and 34-56212.
Division of Market Regulation:
Key Points About Regulation SHO
Date: April 11, 2005
I. Short Sales
A. What is a short sale?
A short sale is generally the sale of a stock you do not own (or that you will borrow for delivery).1 Short sellers believe the price of the stock will fall, or are seeking to hedge against potential price volatility in securities that they own.
If the price of the stock drops, short sellers buy the stock at the lower price and make a profit. If the price of the stock rises, short sellers will incur a loss. Short selling is used for many purposes, including to profit from an expected downward price movement, to provide liquidity in response to unanticipated buyer demand, or to hedge the risk of a long position in the same security or a related security.
B. Example of a short sale.
For example, an investor believes that there will be a decline in the stock price of Company A. Company A is trading at $60 a share, so the investor borrows shares of Company A stock at $60 a share and immediately sells them in a short sale. Later, Company A's stock price declines to $40 a share, and the investor buys shares back on the open market to replace the borrowed shares. Since the price is lower, the investor profits on the difference -- in this case $20 a share (minus transaction costs such as commissions and fees). However, if the price goes up from the original price, the investor loses money. Unlike a traditional long position — when risk is limited to the amount invested — shorting a stock leaves an investor open to the possibility of unlimited losses, since a stock can theoretically keep rising indefinitely.
C. How does short selling work?
Typically, when you sell short, your brokerage firm loans you the stock. The stock you borrow comes from either the firm's own inventory, the margin account of other brokerage firm clients, or another lender. As with buying stock on margin,2 your brokerage firm will charge you interest on the loan, and you are subject to the margin rules. If the stock you borrow pays a dividend, you must pay the dividend to the person or firm making the loan.
D. Are short sales legal?
Although the vast majority of short sales are legal, abusive short sale practices are illegal. For example, it is prohibited for any person to engage in a series of transactions in order to create actual or apparent active trading in a security or to depress the price of a security for the purpose of inducing the purchase or sale of the security by others. Thus, short sales effected to manipulate the price of a stock are prohibited.
II. "Naked" Short Sales
In a "naked" short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard three-day settlement period. 3 As a result, the seller fails to deliver securities to the buyer when delivery is due (known as a "failure to deliver" or "fail").
Failures to deliver may result from either a short or a long sale. There may be legitimate reasons for a failure to deliver. For example, human or mechanical errors or processing delays can result from transferring securities in physical certificate rather than book-entry form, thus causing a failure to deliver on a long sale within the normal three-day settlement period. A fail may also result from naked short selling. For example, market makers who sell short thinly traded, illiquid stock in response to customer demand may encounter difficulty in obtaining securities when the time for delivery arrives.
Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. For example, broker-dealers that make a market in a security4 generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board,5 as there may be few shares available to purchase or borrow at a given time.
III. Regulation SHO
Compliance with Regulation SHO began on January 3, 2005. Regulation SHO was adopted to update short sale regulation in light of numerous market developments since short sale regulation was first adopted in 1938. Some of the goals of Regulation SHO include:
* Establishing uniform "locate" and "close-out" requirements in order to address problems associated with failures to deliver, including potentially abusive "naked" short selling.
o Locate Requirement: Regulation SHO requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security.6 This "locate" must be made and documented prior to effecting the short sale.
o "Close-out" Requirement: Regulation SHO imposes additional delivery requirements on broker-dealers for securities in which there are a relatively substantial number of extended delivery failures at a registered clearing agency7 ("threshold securities"). For instance, with limited exception, Regulation SHO requires brokers and dealers that are participants of a registered clearing agency8 to take action to "close-out" failure-to-deliver positions ("open fails") in threshold securities that have persisted for 13 consecutive settlement days.9 Closing out requires the broker or dealer to purchase securities of like kind and quantity. Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker)10 may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as the "pre-borrowing" requirement).
2. Who is Responsible for Identifying Threshold Securities?
Regulation SHO requires the SROs to disseminate a daily list of threshold securities where such SRO, or its market center,19 is the primary listing venue for any such security.
3. Where Can I Find Threshold Lists?
Each SRO is responsible for providing the threshold securities list for those securities for which the SRO is the primary market. You can obtain SRO threshold lists at the following websites:
Nasdaq: http://www.nasdaqtrader.com/aspx/regsho.aspx (includes Nasdaq issues, OTCBB, and other OTC issues)
NYSE: http://www.nyse.com/Frameset.html?displayPage=/threshold/
AMEX: http://www.amex.com/amextrader/tradingData/RegSHO/TrDa_RegSHO.jsp (Amex listed securities only)
CSE: http://www.chx.com/publications/reg_sho.htm
ArcaEx: http://www.tradearca.com/traders/regsho_th.asp
E. Who Do I Contact For More Information About Securities On a Threshold List?
If you have a question regarding a security on a particular SRO's threshold security list, contact that SRO directly. The following SROs are publishing threshold securities lists:
* for a particular OTCBB or Pink Sheet security on the threshold list, you may call NASD Market Operations at (866) 776-0800 or send an email to nasdmarketoperations@nasd.com;
* for a particular NYSE listed security, you may contact NYSE at RegSHOQ@nyse.com;
* for a particular Amex listed security, you may e-mail regsho@amex.com;
* for a particular ArcaEx security, you may call ArcaEx Clearing Hotline at (312) 442-7989 or send an e-mail to exchangesecop@archipelago.com;
* for a particular CHX security, you may e-mail regshoinfo@chx.com.
Thanks, you too. I am looking forward to crossing that .156 mark to see what happens.
I like the link to the very nice DD Sheet, thank you.
Here is my link to the naked short and short data from the OFFICIAL SEC Website. Not the OTC Markets behind the times website!
Short Data DD
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=63709972
Between the two DD Links, very informative I think. IMO.
I agree, I do not think this is a one day play. Still doing to research into what they have going on and that email was interesting to say the least from the company Osisco. More going on that we know about.
I also saw that trade that was below the BID. I have a question. Are Market Makers or Brokers allowed to sell shares below the BID? Or is someone trying to knock the stock down with those types of sells?
The first image shows the nice buying going on.
The second image shows a SELL of 18801 shares at .08 when the BID was .099 and the ASK was .
The third image shows the normal buys vs sells and there is more buying than selling which means more accumulation. I think that this will pop at some point. IMO.
See the Chart below, looks very good and Bullish.
Buys vs Sells Normal Trading
Buys vs Sells Under the BID Trading I highlighted it in yellow for everyone to see.
Buys vs Sells Normal Trading
3 month Daily Chart
Revenues are not needed when there is a major short position. I recommend the shorts cover at this point.
You may have missed this information earlier.
* Approximately 11.24 Million Total Shares Shorted Since November 2009
* Short Squeeze Expected to Begin Above $0.159
I think this all started because "something is about to happen". "Something wonderful".... Ha Ha Ha Ha
TMSH SHORT SQUEEZE I think is in progress.
Money that chart makes it official, TMSH is in a breakout mode!
See the chart below!
I noticed that some people had a large amount of shares for sale on the ASK. IMO I think people will be more likely to buy on the ASK with smaller amounts there than large blocks when the stock is not really moving yet. Again IMO.
And with a large short position that will need to be covered. This is going to move very fast once we hit the .12 or .14 whichever one is the new "SHORT SQUEEZE TRIGGER PRICE". That makes me happy!
TMSH = 11.24 Million Total Shares Shorted
This is a very large short position.
The Accumulation/Distribution has gone up since December which means this stock is close to taking off and I think the FLOAT is almost bought up.
If anyone tries to state the shorts do not exist, then you know they are the ones shorting IMO. You can also see all of the rules and regulations for shorting and naked shorting at the SEC website.
http://www.sec.gov/foia/docs/failsdata-archive.htm
http://www.sec.gov/spotlight/keyregshoissues.htm
I noticed Buyins.net has also been following the stock. And their information matches the FINRA and the SEC data.
Look at this Press Release from Buyins.net. Look at the size of the short position!
http://finance.yahoo.com/news/BUYINSNET-Updates-TransGlobal-pz-2970600552.html?x=0&.v=1
* Approximately 11.24 Million Total Shares Shorted Since November 2009
* Short Squeeze Expected to Begin Above $0.159
The total aggregate number of shares shorted since November 2009 is approximately 11.24 million shares. Approximately 32.48% of daily trading volume is short selling. The SqueezeTrigger price for all TransGlobal Assets (OTCBB:TMSH - News) shares shorted is $0.159. A short squeeze is expected to begin when shares of TMSH close above $0.159.
I would think that the "SHORT SQUEEZE TRIGGER PRICE" is much lower now, probably only about .12! IMO.
Click for original Report: http://www.buyins.com/reports/tmsh3-24-11.pdf
Click for updated SqueezeTrigger: http://www.buyins.com/images/tmshstr4-30-11.jpg
Click for updated Friction Factor: http://www.buyins.com/images/tmshff4-30-11.jpg
Friction Factor calculates if a fair market is being made in the shares of TMSH. 35% of the previous 37 trading days have been positive or bullish-biased and 65% have been negative or bearish-biased.
Can you say unbelievable? What were these people thinking. I am now thinking this is building to become the "Perfect Storm"!
http://www.sec.gov/foia/docs/failsdata-archive.htm
Here is the April SEC Data for Fails to Deliver (Naked Short Sales)
20110401|89366P105|TMSH|6110|TRANSGLOBAL ASSETS INC COM STK|0.15
20110404|89366P105|TMSH|6501|TRANSGLOBAL ASSETS INC COM STK|0.12
20110408|89366P105|TMSH|6851|TRANSGLOBAL ASSETS INC COM STK|0.09
20110411|89366P105|TMSH|5661|TRANSGLOBAL ASSETS INC COM STK|0.09
20110412|89366P105|TMSH|3645|TRANSGLOBAL ASSETS INC COM STK|0.09
20110413|89366P105|TMSH|1208|TRANSGLOBAL ASSETS INC COM STK|0.09
20110414|89366P105|TMSH|4748|TRANSGLOBAL ASSETS INC COM STK|0.07
20110419|89366P105|TMSH|37486|TRANSGLOBAL ASSETS INC COM STK|0.08
20110420|89366P105|TMSH|7075|TRANSGLOBAL ASSETS INC COM STK|0.09
20110421|89366P105|TMSH|6447|TRANSGLOBAL ASSETS INC COM STK|0.08
20110425|89366P105|TMSH|5637|TRANSGLOBAL ASSETS INC COM STK|0.11
20110426|89366P105|TMSH|873|TRANSGLOBAL ASSETS INC COM STK|0.08
20110427|89366P105|TMSH|1000|TRANSGLOBAL ASSETS INC COM STK|0.08
20110428|89366P105|TMSH|1000|TRANSGLOBAL ASSETS INC COM STK|0.07
20110429|89366P105|TMSH|9661|TRANSGLOBAL ASSETS INC COM STK|0.07
Now these Naked Short Shares may have been covered, but I really doubt it because they probably did not figure the company would get any financing at all. Looks like the shorts guessed wrong.
There are a total of 103,903 Naked Shares that were FTDs. This is a definite Red Flag because that means there were shorting and basically have been for a long time and have not bothered to cover the short positions. This will play into the longs hands very shortly.
Date Change BuyVol SellVol NetVol
4/28/2011 -$0.0030 26,549 125,782
4/27/2011 -$0.0080 90,738 233,164
4/26/2011 $0.0000 77,800 170,263
4/25/2011 -$0.0340 176,523 639,762
4/21/2011 $0.0380 609,563 511,559
4/20/2011 -$0.0090 55,736 89,140
4/19/2011 $0.0100 5,510 58,320
4/18/2011 -$0.0200 132,565 226,763
4/15/2011 $0.0150 357,309 315,441
4/14/2011 $0.0100 234,190 425,600
4/13/2011 -$0.0200 26,325 155,092
4/12/2011 -$0.0030 87,450 211,390
4/11/2011 -$0.0020 86,600 197,794
4/8/2011 -$0.0040 77,003 168,674
4/7/2011 -$0.0150 30,200 37,430
4/6/2011 -$0.0088 19,750 181,543
4/5/2011 $0.0088 22,000 13,000
4/4/2011 -$0.0200 33,210 119,105
4/1/2011 -$0.0300 55,828 103,605
3/31/2011 $0.0250 130,430 98,004
3/30/2011 -$0.0300 28,552 71,830
3/29/2011 $0.0000 2,325 10,000
3/28/2011 -$0.0389 22,850 75,290
The FAILURES TO DELIVER ("naked shorts") HAVE BEEN MINIMAL (which I think means shorts are getting BORROWS on their short sales, IMO):
TMSH CHART from Stock Charts.com.
Why thank you bulldog, I am blushing. And I agree I think that this could take off quickly if there is enough volume.
TMSH = 11.24 Million Total Shares Shorted
This is a very large short position.
You know I was not really thinking about the short interest and what I could see was really not impressive. I decided to look into it a little further and what I found out was very interesting. There actually might be a very large short position in the stock after all.
I think that the shorts are getting borrows against their short position and the rest of you real traders know what that means.
I think that the shorts are in real trouble here.
A few points of interest to look at. I noticed that the SEC does not have the May Data available. Not even for the first half, I find that strange.
But what is really important to notice is Accumulation/Distribution has consistently gone up, the entire time since December, and the shorting has been just as consistent. Which more likely means that the short position is fairly large, maybe even larger than what Buyins.net reported on May 2nd. Then I saw this report from Buyins.net.
If anyone tries to state the shorts do not exist, then you know they are the ones shorting IMO. You can also see all of the rules and regulations for shorting and naked shorting at the SEC website.
http://www.sec.gov/foia/docs/failsdata-archive.htm
http://www.sec.gov/spotlight/keyregshoissues.htm
I also put the links below to tie in the information for you.
I noticed Buyins.net has also been following the stock. And their information matches the FINRA and the SEC data.
Look at this Press Release from Buyins.net. Look at the size of the short position!
http://finance.yahoo.com/news/BUYINSNET-Updates-TransGlobal-pz-2970600552.html?x=0&.v=1
* Approximately 11.24 Million Total Shares Shorted Since November 2009
* Short Squeeze Expected to Begin Above $0.159
The total aggregate number of shares shorted since November 2009 is approximately 11.24 million shares. Approximately 32.48% of daily trading volume is short selling. The SqueezeTrigger price for all TransGlobal Assets (OTCBB:TMSH - News) shares shorted is $0.159. A short squeeze is expected to begin when shares of TMSH close above $0.159.
I would think that the "SHORT SQUEEZE TRIGGER PRICE" is much lower now, probably only about .12! IMO.
Click for original Report: http://www.buyins.com/reports/tmsh3-24-11.pdf
Click for updated SqueezeTrigger: http://www.buyins.com/images/tmshstr4-30-11.jpg
Click for updated Friction Factor: http://www.buyins.com/images/tmshff4-30-11.jpg
Friction Factor calculates if a fair market is being made in the shares of TMSH. 35% of the previous 37 trading days have been positive or bullish-biased and 65% have been negative or bearish-biased.
Can you say unbelievable? What were these people thinking. I am now thinking this is building to become the "Perfect Storm"!
http://www.sec.gov/foia/docs/failsdata-archive.htm
Here is the April SEC Data for Fails to Deliver (Naked Short Sales)
20110401|89366P105|TMSH|6110|TRANSGLOBAL ASSETS INC COM STK|0.15
20110404|89366P105|TMSH|6501|TRANSGLOBAL ASSETS INC COM STK|0.12
20110408|89366P105|TMSH|6851|TRANSGLOBAL ASSETS INC COM STK|0.09
20110411|89366P105|TMSH|5661|TRANSGLOBAL ASSETS INC COM STK|0.09
20110412|89366P105|TMSH|3645|TRANSGLOBAL ASSETS INC COM STK|0.09
20110413|89366P105|TMSH|1208|TRANSGLOBAL ASSETS INC COM STK|0.09
20110414|89366P105|TMSH|4748|TRANSGLOBAL ASSETS INC COM STK|0.07
20110419|89366P105|TMSH|37486|TRANSGLOBAL ASSETS INC COM STK|0.08
20110420|89366P105|TMSH|7075|TRANSGLOBAL ASSETS INC COM STK|0.09
20110421|89366P105|TMSH|6447|TRANSGLOBAL ASSETS INC COM STK|0.08
20110425|89366P105|TMSH|5637|TRANSGLOBAL ASSETS INC COM STK|0.11
20110426|89366P105|TMSH|873|TRANSGLOBAL ASSETS INC COM STK|0.08
20110427|89366P105|TMSH|1000|TRANSGLOBAL ASSETS INC COM STK|0.08
20110428|89366P105|TMSH|1000|TRANSGLOBAL ASSETS INC COM STK|0.07
20110429|89366P105|TMSH|9661|TRANSGLOBAL ASSETS INC COM STK|0.07
Now these Naked Short Shares may have been covered, but I really doubt it because they probably did not figure the company would get any financing at all. Looks like the shorts guessed wrong.
There are a total of 103,903 Naked Shares that were FTDs. This is a definite Red Flag because that means there were shorting and basically have been for a long time and have not bothered to cover the short positions. This will play into the longs hands very shortly.
Date Change BuyVol SellVol NetVol
4/28/2011 -$0.0030 26,549 125,782
4/27/2011 -$0.0080 90,738 233,164
4/26/2011 $0.0000 77,800 170,263
4/25/2011 -$0.0340 176,523 639,762
4/21/2011 $0.0380 609,563 511,559
4/20/2011 -$0.0090 55,736 89,140
4/19/2011 $0.0100 5,510 58,320
4/18/2011 -$0.0200 132,565 226,763
4/15/2011 $0.0150 357,309 315,441
4/14/2011 $0.0100 234,190 425,600
4/13/2011 -$0.0200 26,325 155,092
4/12/2011 -$0.0030 87,450 211,390
4/11/2011 -$0.0020 86,600 197,794
4/8/2011 -$0.0040 77,003 168,674
4/7/2011 -$0.0150 30,200 37,430
4/6/2011 -$0.0088 19,750 181,543
4/5/2011 $0.0088 22,000 13,000
4/4/2011 -$0.0200 33,210 119,105
4/1/2011 -$0.0300 55,828 103,605
3/31/2011 $0.0250 130,430 98,004
3/30/2011 -$0.0300 28,552 71,830
3/29/2011 $0.0000 2,325 10,000
3/28/2011 -$0.0389 22,850 75,290
The FAILURES TO DELIVER ("naked shorts") HAVE BEEN MINIMAL (which I think means shorts are getting BORROWS on their short sales, IMO):
SETTLEMENT DATE CUSIP SYMBOL QUANTITY (FAILS) DESCRIPTION PRICE
20110324 89366P105 TMSH 5323 TRANSGLOBAL ASSETS INC COM STK 0.15
20110325 89366P105 TMSH 91263 TRANSGLOBAL ASSETS INC COM STK 0.17
20110328 89366P105 TMSH 603 TRANSGLOBAL ASSETS INC COM STK 0.15
20110329 89366P105 TMSH 12804 TRANSGLOBAL ASSETS INC COM STK 0.14
20110331 89366P105 TMSH 6110 TRANSGLOBAL ASSETS INC COM STK 0.12
SETTLEMENT DATE CUSIP SYMBOL QUANTITY (FAILS) DESCRIPTION PRICE
20110324 89366P105 TMSH 5,323 TRANSGLOBAL ASSETS INC COM STK 0.15
20110325 89366P105 TMSH 91,263 TRANSGLOBAL ASSETS INC COM STK 0.17
20110328 89366P105 TMSH 603 TRANSGLOBAL ASSETS INC COM STK 0.15
20110329 89366P105 TMSH 12,804 TRANSGLOBAL ASSETS INC COM STK 0.14
20110331 89366P105 TMSH 6,110 TRANSGLOBAL ASSETS INC COM STK 0.12
The other problem lies here, that "short sellers" are SHORTING AND GETTING BORROWS on their short sales as well as the FTDs, IMO:
Date ShortVolume TotalVolume Percent
4/27/2011 62,200 323,900 19.2
4/26/2011 39,200 248,000 15.81
4/25/2011 295,796 822,700 35.95
4/21/2011 370,165 1,139,100 32.5
4/20/2011 43,877 144,800 30.3
4/19/2011 15,500 63,800 24.29
4/18/2011 99,015 359,300 27.56
4/15/2011 309,574 677,200 45.71
4/14/2011 288,290 687,700 41.92
4/13/2011 40,000 181,400 22.05
4/12/2011 80,290 298,800 26.87
4/11/2011 89,500 284,400 31.47
4/8/2011 70,524 245,600 28.71
4/7/2011 31,470 67,600 46.55
4/6/2011 105,810 201,200 52.59
4/5/2011 33,000 35,000 94.29
4/4/2011 25,500 152,400 16.73
4/1/2011 56,500 169,400 33.35
3/31/2011 82,020 243,500 33.68
3/30/2011 38,627 104,400 37
3/29/2011 2,200 12,300 17.89
3/28/2011 27,290 132,300 20.63
Now here are the RegSho for TMSH.
http://regsho.finra.org/FORFshvol20110502.txt
20110502|TMSH|48849|0|283527|O
20110503|TMSH|10000|0|52286|O
20110504|TMSH|2500|0|44342|O
20110505|TMSH|7000|0|283490|O
20110506|TMSH|93381|0|276630|O
20110509|TMSH|8950|0|63950|O
20110510|TMSH|17500|0|163180|O
20110511|TMSH|10000|0|194423|O
20110512|TMSH|18000|0|79310|O
20110513|TMSH|10000|0|30000|O
20110516|TMSH|5000|0|31700|O
20110517|TMSH|80100|0|175300|O
20110518|TMSH|54446|0|138968|O
20110519|TMSH|160000|0|406325|O
20110520|TMSH|66340|0|130100|O
This is just to show that the percentage for the daily volume is very high.
If anyone tries to state the shorts do not exist, then you know they are the ones shorting IMO. You can also see all of the rules and regulations for shorting and naked shorting at the SEC website.
http://www.sec.gov/foia/docs/failsdata-archive.htm
http://www.sec.gov/spotlight/keyregshoissues.htm
This document is under revision. Please see the following documents for updated information: 34-58775, 38-58774, 38-58773, and 34-56212.
Division of Market Regulation:
Key Points About Regulation SHO
Date: April 11, 2005
I. Short Sales
A. What is a short sale?
A short sale is generally the sale of a stock you do not own (or that you will borrow for delivery).1 Short sellers believe the price of the stock will fall, or are seeking to hedge against potential price volatility in securities that they own.
If the price of the stock drops, short sellers buy the stock at the lower price and make a profit. If the price of the stock rises, short sellers will incur a loss. Short selling is used for many purposes, including to profit from an expected downward price movement, to provide liquidity in response to unanticipated buyer demand, or to hedge the risk of a long position in the same security or a related security.
B. Example of a short sale.
For example, an investor believes that there will be a decline in the stock price of Company A. Company A is trading at $60 a share, so the investor borrows shares of Company A stock at $60 a share and immediately sells them in a short sale. Later, Company A's stock price declines to $40 a share, and the investor buys shares back on the open market to replace the borrowed shares. Since the price is lower, the investor profits on the difference -- in this case $20 a share (minus transaction costs such as commissions and fees). However, if the price goes up from the original price, the investor loses money. Unlike a traditional long position — when risk is limited to the amount invested — shorting a stock leaves an investor open to the possibility of unlimited losses, since a stock can theoretically keep rising indefinitely.
C. How does short selling work?
Typically, when you sell short, your brokerage firm loans you the stock. The stock you borrow comes from either the firm's own inventory, the margin account of other brokerage firm clients, or another lender. As with buying stock on margin,2 your brokerage firm will charge you interest on the loan, and you are subject to the margin rules. If the stock you borrow pays a dividend, you must pay the dividend to the person or firm making the loan.
D. Are short sales legal?
Although the vast majority of short sales are legal, abusive short sale practices are illegal. For example, it is prohibited for any person to engage in a series of transactions in order to create actual or apparent active trading in a security or to depress the price of a security for the purpose of inducing the purchase or sale of the security by others. Thus, short sales effected to manipulate the price of a stock are prohibited.
II. "Naked" Short Sales
In a "naked" short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard three-day settlement period. 3 As a result, the seller fails to deliver securities to the buyer when delivery is due (known as a "failure to deliver" or "fail").
Failures to deliver may result from either a short or a long sale. There may be legitimate reasons for a failure to deliver. For example, human or mechanical errors or processing delays can result from transferring securities in physical certificate rather than book-entry form, thus causing a failure to deliver on a long sale within the normal three-day settlement period. A fail may also result from naked short selling. For example, market makers who sell short thinly traded, illiquid stock in response to customer demand may encounter difficulty in obtaining securities when the time for delivery arrives.
Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. For example, broker-dealers that make a market in a security4 generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board,5 as there may be few shares available to purchase or borrow at a given time.
III. Regulation SHO
Compliance with Regulation SHO began on January 3, 2005. Regulation SHO was adopted to update short sale regulation in light of numerous market developments since short sale regulation was first adopted in 1938. Some of the goals of Regulation SHO include:
* Establishing uniform "locate" and "close-out" requirements in order to address problems associated with failures to deliver, including potentially abusive "naked" short selling.
o Locate Requirement: Regulation SHO requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security.6 This "locate" must be made and documented prior to effecting the short sale.
o "Close-out" Requirement: Regulation SHO imposes additional delivery requirements on broker-dealers for securities in which there are a relatively substantial number of extended delivery failures at a registered clearing agency7 ("threshold securities"). For instance, with limited exception, Regulation SHO requires brokers and dealers that are participants of a registered clearing agency8 to take action to "close-out" failure-to-deliver positions ("open fails") in threshold securities that have persisted for 13 consecutive settlement days.9 Closing out requires the broker or dealer to purchase securities of like kind and quantity. Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker)10 may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as the "pre-borrowing" requirement).
2. Who is Responsible for Identifying Threshold Securities?
Regulation SHO requires the SROs to disseminate a daily list of threshold securities where such SRO, or its market center,19 is the primary listing venue for any such security.
3. Where Can I Find Threshold Lists?
Each SRO is responsible for providing the threshold securities list for those securities for which the SRO is the primary market. You can obtain SRO threshold lists at the following websites:
Nasdaq: http://www.nasdaqtrader.com/aspx/regsho.aspx (includes Nasdaq issues, OTCBB, and other OTC issues)
NYSE: http://www.nyse.com/Frameset.html?displayPage=/threshold/
AMEX: http://www.amex.com/amextrader/tradingData/RegSHO/TrDa_RegSHO.jsp (Amex listed securities only)
CSE: http://www.chx.com/publications/reg_sho.htm
ArcaEx: http://www.tradearca.com/traders/regsho_th.asp
E. Who Do I Contact For More Information About Securities On a Threshold List?
If you have a question regarding a security on a particular SRO's threshold security list, contact that SRO directly. The following SROs are publishing threshold securities lists:
* for a particular OTCBB or Pink Sheet security on the threshold list, you may call NASD Market Operations at (866) 776-0800 or send an email to nasdmarketoperations@nasd.com;
* for a particular NYSE listed security, you may contact NYSE at RegSHOQ@nyse.com;
* for a particular Amex listed security, you may e-mail regsho@amex.com;
* for a particular ArcaEx security, you may call ArcaEx Clearing Hotline at (312) 442-7989 or send an e-mail to exchangesecop@archipelago.com;
* for a particular CHX security, you may e-mail regshoinfo@chx.com.
Thank you and more of those shares will be held by me. And now I wish I had not sold my shares from before.
But that is okay because I sold higher than where it is now and I can buy starting this morning.
I also saw that the Accumuation/Distribution has gone up the entire time since December! Wow!
I think this stock is going to explode upward. I do not think that there could be many more shares left in the float!
Look at the charts that were posted.
I think this is a very nice way to show that TMSH is moving up.
I received an email with a heads up to take a look at TMSH. After looking at the messages it is clear it is on the move to greener pastures IMHO.
I noticed there were a couple of posts about the Share Structure that were different. I checked the 10Q and found this information.
http://www.sec.gov/Archives/edgar/data/1402457/000113175411000070/transgloba10q5911.htm
NOTE 5 – SHARE STRUCTURE
The current Company Shares Structure is:
Authorized Shares - 175,000,000
Outstanding Shares - 85,436,170
Restricted Shares - 67,722,796
Float - 17,713,374
Wow! I have not been in TMSH for a while but just saw their new website at www.transglobalassets.com. VERY NICE!
They have a lot of great information there and I noticed they have links to all of their PRs as well. Again very nice job.
The Share Structure is on their website at this link.
http://www.transglobalassets.com/page/prosperity/stock_data
OTCQB: TMSH
TransGlobal Assets Share Structure:
Authorized Shares: 175 M
Outstanding Shares: 82.4 M
Restricted Shares: 67.7 M
Float: 17.7 M
To view a TransGlobal Assets price quote from StockCharts.com, click here
Click here to view AOL’s Daily Finance site for more complete TransGlobal Assets data.
I also noticed that there are Form 3s for the Directors filed which shows they own a ton of shares which will not be in the float till the end of the year in December! Wow!
Together they own 34,391,000
http://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001402457
Kent Strickler http://www.sec.gov/Archives/edgar/data/1402457/000109328711000037/xslF345X02/primary_doc.xml = 13,060,000
Doug Johnson http://www.sec.gov/Archives/edgar/data/1402457/000109328711000024/xslF345X02/primary_doc.xml = 11,020,000
Paul Thompson http://www.sec.gov/Archives/edgar/data/1402457/000109328711000025/xslF345X02/primary_doc.xml = 10,311,000
Looking at the chart alone shows that it is on a new uptrend and is above the 50 Day MA. Which I believe puts this in a breakout mode.
Here is the chart from stockcharts.com.
http://stockcharts.com/freecharts/gallery.html?tmsh
Daily View
Weekly View
Point & Figure View
http://stockcharts.com/h-sc/ui
6 Month Daily Chart
There is also Barcharts.com that says this is a BUY right now.
http://www.barchart.com/opinions/stocks/TMSH
Composite Indicators Signal
Get Chart Get Performance TrendSpotter Buy
Short Term Indicators
Get Chart Get Performance 7 Day Average Directional Indicator Buy
Get Chart Get Performance 10 - 8 Day Moving Average Hilo Channel Buy
Get Chart Get Performance 20 Day Moving Average vs Price Buy
Get Chart Get Performance 20 - 50 Day MACD Oscillator Sell
Get Chart Get Performance 20 Day Bollinger Bands Buy
Hmmm, $1.... maybe $2, we will see....
VFIN, NITE and ETMM IT IS NOT NICE OR SMART TO FOOL WITH MOTHER NATURE! RAISE YOUR SELLS FOR TMSH!
VFIN, NITE and ETMM for the Love of GOD please move your sells up above .10 I will buy there! What else do I need to say!
If you people want to make money then sell to me at .15, I will buy your shares there, you keep lowering the ASK and I will not buy anything there. Your choice.
VFIN! MEET ME AT .15 I WILL PERSONALLY PAY YOU DOUBLE!
Why thank you kindly dear sir.
I don't think we have a clue as to what is really coming in a very good way. And I agree, it is very shiny.
I am hearing next week, by Friday we will see the new website. I hope that is correct.
I am also hearing news soon. But, we always hear that and it does not always come true. When you look back at the history of all the things this company has done in 3 months time. I feel that it is very impressive and even the large companies with huge budgets do not go any faster than this.
And for those who are so worried or think that they will never get financing, well they already did according to the latest PR. But as always people have to rip it apart and twist the truth about a public PR stating what the company has accomplished. Truly amazing from my point of view. As I compare TMSH to the other stock which is the other energy company, they diluted and did a reverse split without as much as a thank you to their shareholders and hid it from everyone. But you don't see that person talking about the BS from their stock now do you? LOL!
TransGlobal Assets, Inc., I think has done everything they said they would to date and I think even more is coming. But that of course is just MHO. He He He
TransGlobal Assets, Inc. = TMSH
http://www.tmshglobal.com/
NEW LOGO!
Soon I think the new website! Wonder what we will see there?
I think it does not matter what the predictions are about how low it will go, who cares.
What matters is where it will rocket to once news comes out that proves the value of TMSH.
THAT AND ONLY THAT MATTERS! Nothing else or mindless banter.
I see the rocket is being fueled again. I wonder why.
But it is not for us to know, but to watch the sky........
As the rocket is launched to new HIGHS.... He He He
Everyone knows that the Market Makers can swap shares between each other and do so on a regular basis to keep from showing they have RegSho going on. Enough said on that. LOL!
Yes it is interesting to say the least that when facts are being presented about TMSH that we see a lot of information trying to counter the truth. Well the SEC Rules and Regs show that they exist and people trying to claim that shorts are not on this stock are probably short. Everyone can choose their own strategy. But a person can lose more shorting than going long.
That is very true, 5% on any NASDAQ stock a a very good move and I saw that there were many more when I did not put 100% in my search. I could post those as well but at this point the facts have been presented and TMSH is being heavily shorted and VFIN keeps pushing the ASK down manipulating the stock and everyone knows it. They have dropped the ASK 3 times this morning from .1539, to .15 and now to .14.
Proof of stock manipulation. VFIN is pushing the stock down every day.
I'm sorry but you have the wrong person, I did not call anything. And please do not make statements that I have not made. Thank you. You made some statements and I replied. And I have been focusing on the stock and the Buyins Report.
Yeah when the truth and the facts are presented it is usually best not to fight it.
TMSH is being heavily shorted and everyone knows that VFIN and UBSS has been doing it.
It was only a matter of time before the truth came out. IMHO
PAVC, OTOW, XPGH, ACTC, URZ, IDIT, and VLKAY to name a few.
I did a search on Buyins.net and asked for Short Squeezes over 100%, that provided this information. Try it to see what results you may receive.
http://seekingalpha.com/article/103073-volkswagen-saga-major-short-squeeze
http://www.ladendieb.eu/507/paivis-corp-otcbb-pavc-is-short/
Here is my favorite part!
COMPANY NAME: Paivis Corp
TICKER SYMBOL: PAVC
EXCHANGE: OTCBB
SHARES OUTSTANDING: 30,558,352
FLOAT: 18,970,000
SHARES SHORT: 10,500,000 (APPROX)
SQUEEZE TRIGGER PRICES: 1.05, 1.41, and 1.63
RECENT PRICE: 0.34
4-DAY TARGET: 6.25
RECOMMENDATION: STRONG BUY UP TO 4.25
We are expecting this stock to literally jump by 2,000% - 3000% in
the short term.
I find it interesting that not everyone reads the fine print. TMSH obviously had nothing to do with this and I bet they were just as surprised as we were. Seems to me shorty better start covering.
http://finance.yahoo.com/news/BUYINSNET-Issues-TransGlobal-pz-242256206.html?x=0&.v=1
BUYINS.NET is not a registered investment advisor and nothing contained in any materials should be construed as a recommendation to buy or sell any securities. A third party has paid $1,166 per month to purchase data to be provided in six monthly reports. The third party may own shares and may benefit from a rise in the stock price. TMSH has not approved the statements made in this release. Please read our report and visit our web site, http://www.buyins.net, for complete risks and disclosures.
Really, then why would they bother doing a report on TMSH? And why would the SEC make rules against shorting and Naked Shorting? Hmmm, I think Shorty needs to cover. That is what I think. I think TMSH has been manipulated by short sellers and naked short sellers and to me this unsolicited report proves it!
And why are there are the rules and regulations regarding shorting?
I think reading these links to understand the rules and regs on shorting and naked shorting will help explain why Buyins.net did this report.
http://www.sec.gov/spotlight/keyregshoissues.htm
A. What is a short sale?
A short sale is generally the sale of a stock you do not own (or that you will borrow for delivery). 1 Short sellers believe the price of the stock will fall, or are seeking to hedge against potential price volatility in securities that they own.
If the price of the stock drops, short sellers buy the stock at the lower price and make a profit. If the price of the stock rises, short sellers will incur a loss. Short selling is used for many purposes, including to profit from an expected downward price movement, to provide liquidity in response to unanticipated buyer demand, or to hedge the risk of a long position in the same security or a related security.
B. Example of a short sale.
For example, an investor believes that there will be a decline in the stock price of Company A. Company A is trading at $60 a share, so the investor borrows shares of Company A stock at $60 a share and immediately sells them in a short sale. Later, Company A's stock price declines to $40 a share, and the investor buys shares back on the open market to replace the borrowed shares. Since the price is lower, the investor profits on the difference -- in this case $20 a share (minus transaction costs such as commissions and fees). However, if the price goes up from the original price, the investor loses money. Unlike a traditional long position — when risk is limited to the amount invested — shorting a stock leaves an investor open to the possibility of unlimited losses, since a stock can theoretically keep rising indefinitely.
C. How does short selling work?
Typically, when you sell short, your brokerage firm loans you the stock. The stock you borrow comes from either the firm's own inventory, the margin account of other brokerage firm clients, or another lender. As with buying stock on margin,2 your brokerage firm will charge you interest on the loan, and you are subject to the margin rules. If the stock you borrow pays a dividend, you must pay the dividend to the person or firm making the loan.
D. Are short sales legal?
Although the vast majority of short sales are legal, abusive short sale practices are illegal. For example, it is prohibited for any person to engage in a series of transactions in order to create actual or apparent active trading in a security or to depress the price of a security for the purpose of inducing the purchase or sale of the security by others. Thus, short sales effected to manipulate the price of a stock are prohibited.
II. "Naked" Short Sales
In a "naked" short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard three-day settlement period. 3 As a result, the seller fails to deliver securities to the buyer when delivery is due (known as a "failure to deliver" or "fail").
Failures to deliver may result from either a short or a long sale. There may be legitimate reasons for a failure to deliver. For example, human or mechanical errors or processing delays can result from transferring securities in physical certificate rather than book-entry form, thus causing a failure to deliver on a long sale within the normal three-day settlement period. A fail may also result from naked short selling. For example, market makers who sell short thinly traded, illiquid stock in response to customer demand may encounter difficulty in obtaining securities when the time for delivery arrives.
Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. For example, broker-dealers that make a market in a security4 generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board,5 as there may be few shares available to purchase or borrow at a given time.
IV. Threshold Securities
A. The Basics
1. What is a Threshold Security?
Threshold securities are equity securities that have an aggregate fail to deliver position for:
* five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));15
* totaling 10,000 shares or more; and
* equal to at least 0.5% of the issuer's total shares outstanding.16
3. Where Can I Find Threshold Lists?
Each SRO is responsible for providing the threshold securities list for those securities for which the SRO is the primary market. You can obtain SRO threshold lists at the following websites:
Nasdaq: http://www.nasdaqtrader.com/aspx/regsho.aspx (includes Nasdaq issues, OTCBB, and other OTC issues)
NYSE: http://www.nyse.com/Frameset.html?displayPage=/threshold/
AMEX: http://www.amex.com/amextrader/tradingData/RegSHO/TrDa_RegSHO.jsp (Amex listed securities only)
CSE: http://www.chx.com/publications/reg_sho.htm
ArcaEx: http://www.tradearca.com/traders/regsho_th.asp
D. Reasons Why A Security With a Large Short Position May Not Appear on a Threshold List
There are various reasons why an equity security with a large short position may not appear on an SRO's threshold securities list, 25 for example:
* the aggregate delivery failures do not meet the definition of a threshold security in Regulation SHO;
* the security's issuer is not registered or required to file reports with the Commission. For instance, the majority of issuers quoted on the Pink Sheets do not file reports or register with the Commission, and so would not appear on threshold lists.
This document is under revision. Please see the following documents for updated information: 34-58775, 38-58774, 38-58773, and 34-56212.
Division of Market Regulation:
Key Points About Regulation SHO
Date: April 11, 2005
I. Short Sales
A. What is a short sale?
A short sale is generally the sale of a stock you do not own (or that you will borrow for delivery).1 Short sellers believe the price of the stock will fall, or are seeking to hedge against potential price volatility in securities that they own.
If the price of the stock drops, short sellers buy the stock at the lower price and make a profit. If the price of the stock rises, short sellers will incur a loss. Short selling is used for many purposes, including to profit from an expected downward price movement, to provide liquidity in response to unanticipated buyer demand, or to hedge the risk of a long position in the same security or a related security.
B. Example of a short sale.
For example, an investor believes that there will be a decline in the stock price of Company A. Company A is trading at $60 a share, so the investor borrows shares of Company A stock at $60 a share and immediately sells them in a short sale. Later, Company A's stock price declines to $40 a share, and the investor buys shares back on the open market to replace the borrowed shares. Since the price is lower, the investor profits on the difference -- in this case $20 a share (minus transaction costs such as commissions and fees). However, if the price goes up from the original price, the investor loses money. Unlike a traditional long position — when risk is limited to the amount invested — shorting a stock leaves an investor open to the possibility of unlimited losses, since a stock can theoretically keep rising indefinitely.
C. How does short selling work?
Typically, when you sell short, your brokerage firm loans you the stock. The stock you borrow comes from either the firm's own inventory, the margin account of other brokerage firm clients, or another lender. As with buying stock on margin,2 your brokerage firm will charge you interest on the loan, and you are subject to the margin rules. If the stock you borrow pays a dividend, you must pay the dividend to the person or firm making the loan.
D. Are short sales legal?
Although the vast majority of short sales are legal, abusive short sale practices are illegal. For example, it is prohibited for any person to engage in a series of transactions in order to create actual or apparent active trading in a security or to depress the price of a security for the purpose of inducing the purchase or sale of the security by others. Thus, short sales effected to manipulate the price of a stock are prohibited.
II. "Naked" Short Sales
In a "naked" short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard three-day settlement period. 3 As a result, the seller fails to deliver securities to the buyer when delivery is due (known as a "failure to deliver" or "fail").
Failures to deliver may result from either a short or a long sale. There may be legitimate reasons for a failure to deliver. For example, human or mechanical errors or processing delays can result from transferring securities in physical certificate rather than book-entry form, thus causing a failure to deliver on a long sale within the normal three-day settlement period. A fail may also result from naked short selling. For example, market makers who sell short thinly traded, illiquid stock in response to customer demand may encounter difficulty in obtaining securities when the time for delivery arrives.
Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. For example, broker-dealers that make a market in a security4 generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board,5 as there may be few shares available to purchase or borrow at a given time.
III. Regulation SHO
Compliance with Regulation SHO began on January 3, 2005. Regulation SHO was adopted to update short sale regulation in light of numerous market developments since short sale regulation was first adopted in 1938. Some of the goals of Regulation SHO include:
* Establishing uniform "locate" and "close-out" requirements in order to address problems associated with failures to deliver, including potentially abusive "naked" short selling.
o Locate Requirement: Regulation SHO requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security.6 This "locate" must be made and documented prior to effecting the short sale.
o "Close-out" Requirement: Regulation SHO imposes additional delivery requirements on broker-dealers for securities in which there are a relatively substantial number of extended delivery failures at a registered clearing agency7 ("threshold securities"). For instance, with limited exception, Regulation SHO requires brokers and dealers that are participants of a registered clearing agency8 to take action to "close-out" failure-to-deliver positions ("open fails") in threshold securities that have persisted for 13 consecutive settlement days.9 Closing out requires the broker or dealer to purchase securities of like kind and quantity. Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker)10 may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as the "pre-borrowing" requirement).
* Temporarily suspending Commission and SRO11 short sale price tests12 in a group of securities to evaluate the overall effectiveness and necessity of such restrictions. The Commission will study the impact of relaxing the price tests for a period of one year.13
* Creating uniform order marking requirements for sales of all equity securities. This means that orders you place with your broker-dealer must be marked "long," "short," or "short exempt."14
IV. Threshold Securities
A. The Basics
1. What is a Threshold Security?
Threshold securities are equity securities that have an aggregate fail to deliver position for:
* five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));15
* totaling 10,000 shares or more; and
* equal to at least 0.5% of the issuer's total shares outstanding.16
Threshold securities only include issuers registered or required to file reports with the Commission ("reporting companies").17 Therefore, securities of issuers that are not registered or required to file reports with the Commission, which includes the majority of issuers on the Pink Sheets,18 cannot be threshold securities. This is because the SROs need to look to the total outstanding shares of the issuer in order to calculate whether or not the securities meet the definition of a "threshold security." For non-reporting companies, reliable information on total outstanding shares is difficult to determine.
2. Who is Responsible for Identifying Threshold Securities?
Regulation SHO requires the SROs to disseminate a daily list of threshold securities where such SRO, or its market center,19 is the primary listing venue for any such security.
3. Where Can I Find Threshold Lists?
Each SRO is responsible for providing the threshold securities list for those securities for which the SRO is the primary market. You can obtain SRO threshold lists at the following websites:
Nasdaq: http://www.nasdaqtrader.com/aspx/regsho.aspx (includes Nasdaq issues, OTCBB, and other OTC issues)
NYSE: http://www.nyse.com/Frameset.html?displayPage=/threshold/
AMEX: http://www.amex.com/amextrader/tradingData/RegSHO/TrDa_RegSHO.jsp (Amex listed securities only)
CSE: http://www.chx.com/publications/reg_sho.htm
ArcaEx: http://www.tradearca.com/traders/regsho_th.asp
The Boston Stock Exchange, Philadelphia Stock Exchange and National Stock Exchange are not the primary listing exchange for any securities at this time and, therefore, are currently not publishing threshold securities lists.
4. Inclusion on, and Removal from, Threshold Lists.
At the conclusion of each settlement day, NSCC provides the SROs with data on securities that have aggregate fails to deliver at NSCC of 10,000 shares or more. For the securities for which an SRO is the primary market, that SRO calculates whether the level of fails for each security is equal to, or greater than, 0.5% of the issuer's total shares outstanding of the security. If, for five consecutive settlement days, such security satisfies these criteria, then such security is a threshold security. Each SRO includes such security on its daily threshold list until the aggregate fails level for the security falls below these levels for five consecutive days. (See below for a discussion as to why a security may appear or remain on a threshold list.)
5. Implementation Dates for Threshold Lists.
The SROs disseminated the first threshold lists on January 10, 2005. Regulation SHO does not require a broker or dealer to close-out the open fail position until a security appears on a threshold list for 13 consecutive settlement days and an open fail position for such security exists for each of those days.. Therefore, the first day on which a close-out action could have been required for a threshold security was January 28, 2005.
6. Mandatory Close-Outs of Threshold Securities.
Regulation SHO requires broker-dealers to close-out all failures to deliver that exist in threshold securities for thirteen consecutive settlement days by purchasing securities of like kind and quantity ("close-out").20
Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker),21 may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as a "pre-borrowing" requirement).
7. Key Points to Remember.
Any equity security of an issuer that is registered or required to file reports with the Commission could qualify as a threshold security. Therefore, threshold securities may include equity securities:
* listed on an exchange, 22
* quoted on Nasdaq,23 or
* quoted on the OTCBB.24
Whether or not a security is a threshold security does not affect the Commission's ability to prosecute manipulative or fraudulent activity that may have occurred before or after adoption of Regulation SHO.
B. Reasons Why A Security May Appear on a Threshold List
A security's appearance on a threshold list does not necessarily mean that any improper activity has occurred or is occurring. An equity security will appear on a threshold list if it meets the definition of a threshold security set forth in Regulation SHO, meaning that failures to deliver the stock (i.e. to the party on the other side of the trade) have reached an aggregate of 10,000 shares or greater at NSCC for five consecutive settlement days and are equal to 0.5% of total shares outstanding;
C. Reasons Why A Security May Stay on a Threshold List for Longer Than 13 Consecutive Settlement Days
Even when broker-dealers close-out delivery failures, a security may remain on an SRO's threshold securities list for longer than 13 days. Examples of why securities may remain on the threshold securities list:
* after broker-dealers close-out all delivery failures, the security stays on the threshold list for five consecutive days;
* new delivery failures resulting from long or short sales may have crossed the threshold, keeping the security on the SRO's threshold securities list; or
* the delivery failures at NSCC may have been established prior to a security's appearance on the SRO's threshold securities list, and are grandfathered from the close-out requirement of Regulation SHO.
For information about specific securities, contact the appropriate SRO or its market center listed above.
D. Reasons Why A Security With a Large Short Position May Not Appear on a Threshold List
There are various reasons why an equity security with a large short position may not appear on an SRO's threshold securities list, 25 for example:
* the aggregate delivery failures do not meet the definition of a threshold security in Regulation SHO;
* the security's issuer is not registered or required to file reports with the Commission. For instance, the majority of issuers quoted on the Pink Sheets do not file reports or register with the Commission, and so would not appear on threshold lists.26
E. Who Do I Contact For More Information About Securities On a Threshold List?
If you have a question regarding a security on a particular SRO's threshold security list, contact that SRO directly. The following SROs are publishing threshold securities lists:
* for a particular OTCBB or Pink Sheet security on the threshold list, you may call NASD Market Operations at (866) 776-0800 or send an email to nasdmarketoperations@nasd.com;
* for a particular NYSE listed security, you may contact NYSE at RegSHOQ@nyse.com;
* for a particular Amex listed security, you may e-mail regsho@amex.com;
* for a particular ArcaEx security, you may call ArcaEx Clearing Hotline at (312) 442-7989 or send an e-mail to exchangesecop@archipelago.com;
* for a particular CHX security, you may e-mail regshoinfo@chx.com.
F. Grandfathering Under Regulation SHO
The requirement to close-out fail to deliver positions in threshold securities that remain for 13 consecutive settlement days does not apply to positions that were established prior to the security becoming a threshold security. This is known as "grandfathering." For example, open fail positions in securities that existed prior to the effective date of Regulation SHO on January 3, 2005 are not required to be closed out under Regulation SHO.
The grandfathering provisions of Regulation SHO were adopted because the Commission was concerned about creating volatility where there were large pre-existing open positions. The Commission will continue to monitor whether grandfathered open fail positions are being cleaned up under existing delivery and settlement guidelines or whether further action is warranted.
It is important to note that the "grandfathering" clause of the Regulation does not affect the Commission's ability to prosecute violations of law that may involve such securities or violations that may have occurred before the adoption of Regulation SHO or that occurred before the security became a threshold security.
V. Answers to Frequently-Asked Questions from Investors
1. Is all naked short selling abusive or illegal?
When considering naked short selling, it is important to know which activity is the focus of discussion.
* Selling stock short without having located stock for delivery at settlement. This activity would violate Regulation SHO, except for short sales by market makers engaged in bona fide market making. Market makers do not have to locate stock before selling short, because they need to be able to provide liquidity. However, market makers are not excepted from Regulation SHO's close-out and pre-borrow requirements.
* Selling stock short and failing to deliver shares at the time of settlement. This activity doesn't necessarily violate any rules. There are legitimate reasons why a seller may fail to deliver on the scheduled settlement date.
* Selling stock short and failing to deliver shares at the time of settlement with the purpose of driving down the security's price. This manipulative activity, in general, would violate various securities laws, including Rule 10b-5 under the Exchange Act. Regulation SHO does not address this issue.
2. Is naked short selling the reason my stock has lost value?
Investors should always use caution before investing in high-risk, speculative stocks, especially with regard to their retirement portfolios, because all stocks may decline in value. There are many reasons why a stock may decline in value. The value of a stock is determined by the basic relationship between supply and demand. If many people want a stock (demand is high), then the price will rise. If a few people want a stock (demand is low), then the price will fall. The main factor determining the demand for a stock is the quality of the company itself. If the company is fundamentally strong, that is, if it is generating positive income, its stock is less likely to lose value.
Speculative stocks, such as microcap stocks, often have a high probability of declining in value and a low probability of experiencing above average gains.27 For example, investors should take extra care to thoroughly research any company quoted exclusively in the Pink Sheets.28 With the exception of a few foreign issuers, the companies quoted in the Pink Sheets tend to be closely held, extremely small or thinly traded. Most do not meet the minimum listing requirements for trading on a national securities exchange, such as the New York Stock Exchange or the Nasdaq Stock Market. Many of these companies do not file periodic reports or audited financial statements with the SEC, making it very difficult for investors to find reliable, unbiased information about those companies.
There also may be instances where a company insider or paid promoter provides false and misleading excuses for why a company's stock price has recently decreased. For instance, these individuals may claim that the price decrease is a temporary condition resulting from the activities of naked short sellers. The insiders or promoters may hope to use this misinformation to move the price back up so they can dump their own stock at higher prices. Often, the price decrease is a result of the company's poor financial situation rather than the reasons provided by the insiders or promoters.
Naked short selling, however, can have negative effects on the market. Fraudsters may use naked short selling as a tool to manipulate the market. Market manipulation is illegal.29 The SEC has toughened its rules and is vigilant about taking actions against wrongdoers.30 Fails to deliver that persist for an extended period of time may result in a significantly large unfulfilled delivery obligation at the clearing agency where trades are settled. Regulation SHO is intended to address these effects by reducing the number of potential failures to deliver, and by limiting the time in which a broker can permit a fail to deliver to persist. For instance, as explained above, Regulation SHO requires brokers and dealers to close-out the open fail-to-deliver positions in "threshold securities" (i.e., securities that have experienced a substantial number of extended delivery failures) that have persisted for 13 consecutive settlement days.
There was a lot of action today right at the end of the day, I think tomorrow we will see some serious action and maybe set some new highs... TMSH chart will go much higher tomorrow I tbink...
Yes, that was interesting wasn't it. I guess tomorrow will be even more interesting.
No one uses a 5 month chart to base trading on. That to me is very misleading.
Thank you I do feel that my chart is definitely shaping up nicely.
TMSH or.....
Your welcome!
Which ones?
In my short experience in trading these stocks, some come and go fade in and out, then others rocket on good news.
I am watching the rocket getting fueled now. Waiting for the launch.
Is it any minute or any day or any week. Who knows, but I like watching rockets get fueled and the chart is shaping up nicely.
TMSH 1 Month 60 Minute Chart, very nice I think!
If you look at his ID you can see he is in Jail till this Wednesday. He will not be able to respond until then.
On another note, for those who sold their shares. Thank you.
For those who know what is coming, you are the strong, smart and soon to be rewarded ones like me.
I am very excited about what is coming. But of course the sooner the better.
LOL!