Sidney Resources Corp (SDRC)

[Almost A Myth]

I heard from my buddy over the weekend that one of the major US brokerages will be recalling all their borrowed SDRC shares. I can't say which brokerage he works for, but I think they will all follow suit as the PPS continues to rise.

Here's some info on what can happen when borrowed shares are used for short selling.

https://www.investopedia.com/ask/answers/05/shortsaleclosed.asp

Short Selling: How Long Does a Short Seller Have Before Covering?
By CHAD LANGAGER
Updated Mar 19, 2020

There are no standardized regulation relating to just how long a short sale can last before being closed out. A short sale is a transaction in which shares of a company are borrowed by an investor and sold on the market. The investor is required to return these shares to the lender at some point in the future. The lender of the shares has the ability to request that the shares be returned at any time, with minimal notice. In the case of this happening, the short sale investor is required to return the shares to the lender regardless of whether it causes the investor to book a gain or take a loss on his or her trade.

KEY TAKEAWAYS
There are no set rules regarding how long a short sale can last before being closed out.
The lender of the shorted shares can request that the shares be returned by the investor at any time, with minimal notice, but this rarely happens in practice so long as the short seller keeps paying its margin interest.
A broker can force a short position to be closed if the stock rallies strongly, causing large losses and un-met margin calls.
It is far more likely that the investor will close out the position before the lender will force the position closed...

...Forced Closings

However, there are some cases in which the lender will force the position to be closed. This is usually done when the position is moving in the opposite direction of the short and creating heavy losses, threatening the likelihood of the shares being returned in the future. In this situation, either a request will be made to return the shares, or the brokerage firm will complete the closing of the transaction for the investor. The terms of margin account contracts allow brokerage firms the freedom to do this.

Short covering can also occur involuntarily when a stock with very high short interest is subjected to a “buy-in”. This term refers to the closing of a short position by a broker-dealer when the stock is extremely difficult to borrow and lenders are demanding it back. Often times, this occurs in stocks that are less liquid with fewer shareholders.