Capstone Companies Inc (CAPC)

[dashrip417]

Soft, my status

as a non-subscriber doesn't allow me to privately reply, so apologies for that.

As I have come to understand it, naked shorters aided by their brokers "sell" shares of a stock at whatever the bid price happens to be at the moment ... with the intention to buy it back at the ask price.

Hence with CHDT, once upon a time when it was struggling along in the 3 or 4 cents range, a naked shorter may have "sold" a number of shares for .035 cents, intending and expecting to buy them back at a subpenny level for a huge profit. The problem with that is, in the case of CHDT, the stock's suddenly exciting business prospects start driving the price up , up up and what the "trigger" price was -- say six cents -- is the price at which the experts expect the panic BUYING to set in among the shorts who need to cover their "bet" that the stock was going to go down, not up. So the six cent trigger price is the price at which the experts said the majority of shorts would be shaken out. Hope that helps.