NewStream Energy Technologies Group Inc (NSGP)

[trader53]

According to Wayne E. Crumpley......March 15, 2010

Market makers have the legal right to sell shares short that they do not own. This is called "naked" short sales. It would be my educated guess that the company has a 40,000,000 to maybe as much as 60,000,000 over-hanging "short" position.

The next step is . . . how do the "shorters" cover themselves, and what is the direction of the stock. The "shorters" will "cover" when they are certain the stock is heading "UP." What happens if there is no stock for them to purchase? All of a sudden the "supply/demand" position is turned on its head.


.....Instead of no Buyers (demand) looking at a 435,000,000 share supply, we now have maybe 40,000,000 to 60,000,000 short demand chasing no supply. As fast as the stock went from $1.20 per share to $ .04 per share, it is my opinion that the stock could go from $.14 per share (present), back to above a dollar. There could develop a "feeding frenzy" to buy the stock to stop the losses of the stock moving up.

http://stockcharts.com/h-sc/ui?s=CCTC&p=D&yr=0&mn=6&dy=0&id=p40079166357