UNICO INCORPORATED (AZ) (fka UNCO)

[Hilander]

GOLDENBOLLOX, nice research on the following post dated 9/5/2006
Post # 293 of 404. I have been trying to figure out several things in my head about Knights Shorted Position with Unico.

Referring to Knights 2005 accounts, LIABILITIES & STOCKHOLDERS' EQUITY,
my questions relate to the last two lines:

Total stockholders' equity 823,448,149 851,201,894 and
Total liabilities and stockholders'equity = $1,416,016,344 $1,394,020,315

Q1. Once the shakeout occurs with balancing the account of naked shorts, is there any way to guess how much of this money will flow back into the hands of Unico longs?
Q2. Or, should I presume this is money that Unico longs will never see?

It seems to me, some of this money will eventually flow back into the accounts of Unico longs since as stated in the report, there are Liabilities Securities sold, but not yet purchased, at market value $345,457,499 $221,420,569.

Several postings from people on the bullitan board believe the naked shorts will go bankrupt when they cannot purchase the securities to cover their short position? If this is true, we won't see a dime of this money. If someone has seen this situation previously, please share your experience from this scenario. Thanks.