Jim, while I know we have no reason to trust eachother on an anonymous message board, I can only restate what I heard, and hope I am believed for the sake of furthering this discussion.
The pink sheet trader for STGI gave me a ten minute explanation about why the MMs couldn't be short on CMKX, and it was because a "non qualifying piggyback" could not be bought and sold by the MMs. The MMs only function for CMKX, according to him, was to match buyers and sellers.
While most of what he said was admittedly over my head, one statement he made was very simple for me to understand. He said that if the shares for CMKX ever had to be accounted for, the stock would probably pop over 5 cents. That is not hype, not a pump- that was the pink sheet trader's opinion.
It was he who mentioned the existence of overseas hedgefunds, and that is what made me first believe that the conspiricy type theories about overseas naked shorting were actually true.
You are far more savvy than I am in your overall market knowledge, so anything you can teach me about why CMKX cannot be shorted by the MMs would be welcome here. Of course, there is always the possibility that the trader was wrong (highly unlikely, he was older and experienced), or he was lying to me. If that is the case, I would like to know about that too.
Happy Sunday.
AI
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