Wave Systems Corp. (fka WAVXQ)

[go-kitesurf]

bigtim, re; shorting

We already have one report of WAVX shares moved to a margin account and another of a shareholder who was offered incentives to pledge his shares for shorting. I think we will find that this is just the tip of the iceberg.

Since Wave trades below $5 it is unshortable by a vast majority of brokerages. In addition, even above $5, it has to close the prior day ABOVE $5 to be shortable, which it has not. Therefore, the brokerages calling around for shares are going around the rule, imo, and finding shares under contract to be offered. I don't think there's been as much shorting as will come once WAVX breaks $5 on a closing basis.