ERHC Energy Inc (ERHE)

[kaydee]

Agreed, these days the sellers are traders ….. and MMs trading for the house. Witness the large short position reported by Bloomberg at 96,375.000 shares. If correct (big IF I think), it is a time bomb waiting to shoot our share price into orbit.

Imagine the panic when drill results are published. The rush to cover such a large short position of approx. 15% of all outstanding shares will be of epic proportions. In fact it is even higher at approx. 38% of the float shares (assuming 550 million shares are locked up by Offor and friends).

The caveat here is that drill results are decent and get published in due time and that the Bloomberg short position report is accurate (check this link http://www.bloomberg.com/apps/quote?ticker=erhe ).

Assuming the number is correct, how can the shorts have 'borrowed' so many shares so they could short the stock? Naked shorting is illegal, or is it only for the average schmuck and not the professionals?