NeoMedia Technologies, Inc (NEOM)

[jonesieatl]

"There wasn't any massive short covering rally"

You're right , and there most likely never will be.

REG SHO Threshold explained for anyone interested ... and with NEOM-specific numbers provided afterwards.

"A Threshold Security is defined by Rule 203(c)(6) of the SEC's Regulation SHO as any equity security of an issuer that is registered under Section 12, or that is required to file reports pursuant to Section 15(d) of the Exchange Act where for five consecutive settlement days: (1) there are aggregate fails to deliver at a registered clearing agency of 10,000 shares or more per security; (2) the level of fails is equal to at least one-half of one percent of the issuer's total shares outstanding; and (3) the security is included on a list published by a self regulatory organization.

Reg SHO is designed to fulfill several objectives, including: (a) the establishment of uniform locate and delivery requirements in order to address problems associated with failures to deliver, and (b) the creation of uniform marking requirements for sales of all equity securities."

http://www.nyse.com/regulation/nyse/Threshold_Securities.shtml?date=20090310

So , NEOM's O/S is nominally 1.30B , for the sake of this exercise I'll assume that it is exactly that.

To get on the SHO list NEOM would have to have FTD's for 5 consecutive trading days and show a total short interest of at least 1/2 of 1 percent of 1.3B or .... 6,500,000 shares.

That's all , just 6.5M shares.

Today there could be 6.499999999999999999M shares short and NEOM is off the Reg SHO threshold list.

Tomorrow a few shares shares get shorted and NEOM is on the Reg SHO list.

Thursday a few shares get covered and NEOM is off the Reg SHO list.

The total short interest required to put NEOM on the Reg SHO threshold list is less than half of one day's average trading volume over the last few months. The change in short interest required to take NEOM on or off the list could be as few as 100 shares.

Whether or not that means some offshore company is or isn't shorting NEOM is anybody's guess ... but it ain't takin' a whole lot of shortin' & coverin' to flip little NEOM on and off that list LOL.

jonesie