NewStream Energy Technologies Group Inc (NSGP)

[trader53]

Understanding the Naked Short List

Naked short selling stocks has unlimited risk. The seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard three-day settlement period. 3 As a result, the seller fails to deliver securities to the buyer when delivery is due is known as a "failure to deliver" or "fail."

Failures to deliver may result from either a short or a long sale. There may be legitimate reasons for a failure to deliver. For example, human or mechanical errors or processing delays can result from transferring securities in physical certificate rather than book-entry form, thus causing a failure to deliver on a long sale within the normal three-day settlement period. A fail may also result from naked short selling. For example, market makers who sell short thinly traded, illiquid stock in response to customer demand may encounter difficulty in obtaining securities when the time for delivery arrives.*

Since March 31st was the last day to sell the restricted shares, I'm wondering if being added to the short list had something to do with the delays that could have resulted in the transferring securities in physical certificate as it is explained above.

Can anyone confirm this as a possible explaination ?

I'm just guessing here, but it seems reasonable to me.