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Re: Ubertino post# 16550

Friday, 04/02/2010 12:32:21 PM

Friday, April 02, 2010 12:32:21 PM

Post# of 18532
I don't think there's anyway of knowing. I think you can get a ballpark figure for the legit short positions but the naked shorts are indeterminate. Of course, there could be no shorts at all but to my knowledge, companies that were once on the verge of going out of business like HTDS was before the mergers with Mellow Hope and BioChem are shorted because it's basically selling shares of a company that you believe is on the way out and there's no cost basis. It's all profit. Now that HTDS is breathing again, those positions will need to get a cost basis. At what cost? They would most likely try to wait it out and hope for bankruptcy but that's not an option if HTDS does a share buyback, they would have to buy the shares regardless if HTDS had to file BK after that time.
As you know very well with these companies, it's a huge gray area. Are there shorts out there on HTDS? Is HTDS bluffing in order to force shorts to cover? Will HTDS actually buyback shares? WIll they give a divy on HIRU shares? It could all be a bluff because they want to eliminate the short positions and both a divy and buyback would accomplish this. HTDS could be doing a double bluff with these announcements. If there are shorts, will they fold or stay in the game? Inquiry minds want to know.

Lots of question with no answers.

Sloth
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