Singing Machine Company Inc (MICS)

[NobleRoman]

NAKED SHORT SQUEEZE potential?

This is a very interesting conversation I'm having with Eric Nickerson.

Source: https://seekingalpha.com/news/3728827-singing-machine-receives-minority-investment-by-stingray#comment-92642977

As a reminder, he was with Third Century Partners on some of our previous conference calls. Founder of this private fund:
https://thirdcentury.org/

Of interesting note, he has noticed that there are more shares accounted for than the entire OS. Same thing I mentioned before. He echoes my sentiment that there could be naked short selling going on at end.

Conversation below:


enickerson

@Racer-X and @JTrader_25 Per recent info received from MICS management: Bitnile has a $400 million war chest for doing deals just like this one - small enough to control, yet big enough to score huge gains. They've done very successful short squeezes. You do NOT want to short where Bitnile is long. Bitnile's 56%, plus all the shares management knows to be owned by folks like us add up to substantially more than the total shares outstanding. And Bitnile is still buying aggressively. Also, the short interest is well into six figures. I myself have lent out 112,000 shares to short sellers. Those shorts are paying 70% annual interest to borrow my shares. The short behemoths stacking up against the long behemoths are entering a titanic struggle. Yet the stock remains modestly priced. The scenario we're seeing the initial stages of here is exactly similar to Gamestop and AMC. Look for memes to come extolling the company's scintillating prospects, and counter-memes equally adamant about what a dog MICS is. Bitnile's obvious preferred play: make MICS the next Gamestop. Like I said in a previous post - buckle up.

One other thing. Bitnile has Gary Atkinson on record saying MICS doesn't need to raise any more money. So Bitnile can sue MICS if our company does move to sell more stock. This is an advantage the longs in Gamestop and AMC never had.

Racer-X

@enickerson that’s very interesting. I appreciate that angle. How can everything add up more than the known os? How is that possible ? Somebody exercised warrants they don’t know of yet ? Or somebody like stingray sold shares since what they last reported? Or illegal naked short selling ? What’s your take on that ?

enickerson

@Racer-X Minor correction: I own 112,002 shares long. I’ve lent out 104,977 to short sellers. The other 7025 shares will probably get lent out shortly after they arrive at Fidelity from TDAmeritrade next week. Shorts are presently paying 70% annual interest on the value of the borrowed shares.

The total long position in any stock is always equal to the total shares outstanding, plus the total short interest. Pretty obvious at this point that much of the short interest is naked, owed by licensed brokers using their privilege to sell short without first borrowing shares.

One more thing GameStop longs never had: With majority share ownership, Bitnile can take over MICS and use MICS’s now-ample cash to buy in company stock without having to use Bitnile’s cash.