CytoSorbents Corporation (CTSO)

[hoggey1]

The short selling in MSBT could be pushing the price lower.

The REG SHO Short Selling (see FINRA) of MSBT has averaged over 50% of the total volume over the last 10 plus trading days.

Just scroll to ORF and select your date to view:

http://regsho.finra.org/regsho-Index.html

For example:

April (volume)

6th 185,852 (short) 686,369 (total) 27%

5th 205,435 (short) 503515 (total) 41%

1st 246,635 (short) 432,325 (total) 57%

March (vol)

31st 190,725 (short) 474,186 (total) 40%

30th 137,634 (short) 253,281 (total) 54%

The key question about the short volume: Have the shares been DELIVERED for settlement?

Every day MSBT shares are being sold short under REG SHO, meaning the shares sold don't exist. The market maker can sell shares when none are being offered for sale in order to "Make a Market." The Market Maker issues an "IOU" on those phantom shares, meaning they will be covered and the phantom shares closed out or covered and the trade eventually settled with good (real) shares.

However, the MM is only allowed to sell those phantom shares when they're certain good shares will be available to purchase (and soon) so the trade can be settled and the short sale/IOU closed out.

In other words, the MM can temporarily issue shares (non-existing) to Make a Market. This is allowed when the MM knows there will be more shares available and soon so the outstanding share total is not artificially increased or altered by phantom shares.

But with SO many shares sold short EACH and EVERY DAY, we (the shareholders) have NO WAY of knowing if those shares are being covered/settled or NOT. And if not, then that means more shares are being placed into circulation by the market maker. Of course, that would cause more dilution and therfore keep the price LOW.

FINRA tells us about the daily short sales but does not advise shareholders of the settlement. In other words, we don't know which, if any trades are being settled or exactly how many shares are now in circulation. Does the outstanding share total currently in circulation reflect only those shares issued by MSBT or those issued by MSBT and the market maker?