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Monday, February 22, 2010 8:06:35 AM
But what if they don't have to cover? What if no delivery of those short shares ever takes place? What if the supply of shorted shares is infinite?
The stock price will plummet. The company will need financing. The stock will become diluted.
I hope we see a rebound this week. I think we'll see a lot of traffic on this board, and hopefully they will not all be wanting to short tsho.
Also, if the shorts never close their short position, and the stock just eventually disappears, I don't believe they pay any taxes on those gains. Another loophole for the short trader.
I hope we see a squeeze, but they are rare.
daisy
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