Green Cures and Botanical Distribution Inc (GRCU)

[Odessa99]

Hopefully this will aid in your understanding:

Short Interest Unmasked: For those interested in understanding the apparent discrepancy between the bi-weekly FINRA short report and daily share shorting tallies, I'll do my best to explain the difference.

Market makers, operating within their obligation to keep an orderly and liquid market in a stock, often sell shares they do not currently own. Most of those sell transactions will not show up in the bi-weekly FINRA short report because it shows net short positions. Since it is very common for the market markets to buy back,later in the same day, the shares that they shorted earlier in the day, short transactions of that type will never appear on a bi-weekly net shares short report (although these shares do show up in the reporting of daily shorting totals).

So if an OTC market maker covers most of their short sales within the same day, why should it even be of a concern to the shareholders of that OTC stock? Here's why. Because of the low level of investor confidence on most OTC companies, a market maker can create the impression of lack-of-demand for a stock by selling short against many of the retail buys as they are coming in at the ask, which keeps the ask from rising. As a result, other retail investors tend to become nervous and some lose confidence in their otherwise long holding, and as a result sell into the bid. It is at this time that the original market markers that sold short at the ask can then cover at the bid. That allows the market makers to make money for their work. But it also generally leads to the stock going lower. But because the short sold shares were covered during the same day, the will have no visibility on a bi-weekly net short report. And IMO, this process has undoubtedly contributed to the downward slide in Green Cures & Botanical Distribution (GRCU).

As always, simply my opinion.

MMs and brokers aren't shorting GRCU - it is a sub-penny. Where are all of the failures to Deliver if GRCU was being shorted?

From OTCM - who uses the FINRA Bi-Weekly data we can see:
Quote:
Short Selling Data
Short Interest 7,599 (100%)
Sep 30, 2014
Significant Failures to Deliver No

In the two weeks prior to September 30 there were 7,599 short sales recorded - or about $60 to $70

GRCU