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Tuesday, 10/27/2009 1:50:40 AM

Tuesday, October 27, 2009 1:50:40 AM

Post# of 30387
Opportunity, do you understand the difference between long and short sales? Look at the last sentence from the SEC website. Failure to deliver can result from long shares that are not delivered to the other side of the trade.

Smithline is abiding by the contract and NOT shorting. He is just converting notes and selling shares. He probably has over 10 million more to sell at or above 14 cents. Do you really think this stock is going ANYWHERE soon at all? It is time to take a reality check.

The SHO list: definitions from the SEC website.
"A "fail to deliver" occurs when a broker-dealer fails to deliver securities to the party on the other side of the transaction on settlement date. There are many justifiable reasons why broker-dealers do not or cannot deliver securities on settlement date. A broker-dealer may experience a problem that is either unanticipated or is out of its control, such as (1) delays in customers delivering their shares to a broker-dealer, (2) the inability to obtain borrowed shares in time for settlement, (3) issues related to the physical transfer of securities, or (4) the failure of a broker-dealer to receive shares it had purchased to fulfill its delivery obligations. Fails to deliver can result from both long and short sales."

http://www.sec.gov/spotlight/keyregshoissues.htm

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