NetList Inc (NLST)

[goforthebet]

another interesting post reg. shorts

Posted byu/Sarmientinator

Short Squeeze situation and info

I’ve been seeing a lot of talk about a possible short squeeze so I’m writing this post to inform most people on the reality of the Netlist situation.

Netlist is an OTC stock and that is an important detail because it is the biggest reason on what’s possible and what’s not.

OTC stocks cannot be owned by FINRA regulated funds. (There are a few exceptions that Netlist will meet but only after their next quarterly review)

A normal person cannot buy NLST on margin. A broker cannot lend out your shares to be shorted unless they are bought on margin (Td Ameritrade)

NLST shares are categorized as “hard to borrow” shares. That means that if you want to short you have to be part of a hard to borrow program and the fees are high… so just another level of difficulty to short

NLST total share float is about 217 million shares. Total shares short as of last update is 2.9 million shares. That’s less than 1.5%

The reality of it is I’m certain that most of the shares short belong to the market makers themselves. Their job is to create liquidity and is not uncommon to have some of the shares they provide liquidity for to be short as a type of hedge.

Basically, a short squeeze isn’t a driving force in this stock. It’s the fact that people are aware that it’s a high probability that a settlement is near and the speculation behind that is taking us higher every day. I am glad we are an OTC stock because that means that the means to manipulate it are minimized. Enjoy these days because soon NSLT will be over $25 (in my opinion) and in the NASDAQ and when that happens we will open the door to options and shorting.