I covered Long before, because shorting those Kind of stocks is rather expensive but I had a nice return.
So I am flat.
But I can see your Point based on the lawsuit that some of those Shares would have to be covered. But then this was the same Story with Spongetech and there the difference between the reported O/S of 750 Mio and actually then outstanding was 2.4 Billion. Well the shortcovering never came on the contrary.
What I cannot see here: If a TA issues Shares, this is one Thing. But then when you deposit those Shares with your Broker then they will not relase those Shares before not having had a clear legal opinion on one Hand and a clear evidence why they got those Shares. As it happens a lot of times, the right for the Shares can Change if the real holder assigned them to a third Party but this is the Kind of CV today asked from every compliance department. And how is it possible, that MYEC showed in their filings 2 of the names they now sued with Holdings above 6 % each. If you see this and file this, then you must know the reason for it. If they knew it then, why sue now.
In most of the cases, such a lawsuit killed a Company. Why: You lose trust in a Company who is not in control of the sharecount, which from my Point of view is hard to understand with Novo Lists, DTC list and more.
But it goes further: If this is true, then those supply depressed the stock. Right? So somebody took Advantage of it and was able to buy cheap. But then somebody could now make a class Action suit against MYEC for being negligent and based on this they did not sell when the stock was high or that they paid too much as they did not know this oversupply.
It ain't over until it is over.
AI
