Thank you for thinking of me dread...!
Below are a few excerpts from the article that I think are key to the issue...
"'Phantom Stock'
Some delivery failures linger for weeks or months. Until that failure is resolved, there are effectively additional shares of a company's stock rattling around the trading system in the form of the shares credited to the buyer's account, critics say. This "phantom stock" can put downward pressure on a company's share price by increasing the supply.
DTCC officials counter that for each undelivered share there is a corresponding obligation created to deliver stock, which keeps the system in balance. They also say that 80% of the delivery failures are resolved within two business weeks.
There are legitimate reasons for delivery failures, including simple clerical errors. But one illegitimate reason is naked shorting by traders looking to drive down a stock's price.
Critics contend DTCC has turned a blind eye to the naked-shorting problem.
and this....
"Among other things, authorities need to make public much more trading data related to stock-delivery failures, he says.
Critics contend that DTCC and the SEC have been too secretive with delivery-failure data, depriving the public of important information about where naked shorting might be taking place. Currently, DTCC's delivery-failure data can only be obtained through a Freedom of Information Act request to the SEC, which has released some statistics that are generally two months old."
I post the published short numbers here each month and on the surface those numbers, which represent the reported short position, seem minor....150,000 shares. That is the tip of the ice berg in my opinion...the broker/dealer to broker/dealer FTD's (failure to deliver), or in other terms, IOU's on Torvec in my opinion account for millions of shares of TOVC naked short and it's been happening for years....I think it's more than one short player and the huge bet has always been that Torvec willnot make it financially...they will run out of money....interestingly enough, Torvec keeps getting stronger, not weaker...the ICE tech sale funded about a year and half of burn and there is NO debt....
My observations....I think the shorts also have been betting on Torvec tech not getting to market...the company now appears on the edge of that indeed happening and fortunately for us shareholders, the company has 8 or 9 products which are essentially ready to go...if this was a one-tech company, i would be a little worried.....TOVC could be a billion ompany on one for their technologies alone...they have 8 more after that...
The shorts will at some point have to deliver shares to cover...forget about the 150,000 short shares...think millions....In the event of a deal annoucement that has some critical mass, where are they even going to be able to get the 150,000 shares inthe middle of a stampede let alone millions...
Zendo....I have never for a minute doubted the fact that over the years, TOVC stock goes down on good news way more than it goes up...I have also never doubted why....
The piper will eventually have to be paid on the cover....I personally hope it occurs without warning and is swift and decisive....
