ScripsAmerica Inc. (SCRCQ)

[coolerheadsprevail]

we heard about a short 2.6m Dec 15th to Dec 19th and since, the stock has exloded to upside, nearly doubled. Frankly, if short, they have not covered.

Again, not true. The TUTs are covering approx 90% of their short sales intraday, keeping them open for very brief windows of time because they recognize the inherent risk in shorting a penny stock.

As one example, using the first day of the 12/15/14 thru 12/19/14 period you referenced above, we see this on 12/15/14, the first day of the real run when the daily short sale volume began to really take off. From FINRA, we see that 690k shares were shorted on 12/15/14. BUT YET, by EOD 12/15/14, we now also see that the net open short position was only 52k shares. See link here:

http://www.otcmarkets.com/stock/SCRC/short-sales

This tells us that approx 640k of the 690k shares shorted DURING the 12/15/14 trading day were also covered DURING the 12/15/14 trading day, which is how the REMAINING net open short position dropped to only 52k by EOD 12/15/14. And keep in mind that this isn’t even counting the open short positions that were carried over from BEFORE 12/15/14 that were covered on 12/15/14, as these would also have been covered in order to arrive at the 52k net remaining open short positions number.

Since the net open short positions report is only produced semi-monthly, we will never know what exactly transpired on 12/16 or 12/17 or 12/18 or 12/19, but logic and common sense tell us that there is no reason to expect that the trading pattern changed significantly on these days relative to the behavior that occurred on 12/15.