Anavex Life Sciences Corp (AVXL)

[XenaLives]

Thanks for doing that research, so what do we call this phenomenon?

For now I will say it is the "effective float".

Shorts increase the effective float even when a stock is not being bought and sold very much by the actual shareholders. The more tightly held a stock is, the more easily shorts can manipulate it.

I'm going to throw out some numbers, they aren't exact and some of them are even made up so I won't argue accuracy with anyone, I'm trying to illustrate a concept. I don't have the exact numbers handy and my memory isn't what it used to be, but my logic is still intact.

Assumptions:

uplisting 40 million shares
currently 47 million shares

Fact
uplisting 2 million shares short
one year after uplisting 5-6 million shares short is the usual range
Missling and Park West combined control over 10% of the stock.

Effective Float
uplistig 42 million shares
currently 52 million shares

Concept:

If long term shareholders control 60% of the stock only 30% of the stock is liquid. 12-14 million shares.

Shorts add an additional 5-6 million shares to liquidity, they control 1/3 of all shares traded.

If they trade those shares 5x a week and the real shares are only traded 1x a week the short shares would actually equal 25 million shares traded vs. 12-14 million shares.

If those shares are trade 5x a day, that would be 125 million shares vs 12-14 million real shares.