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Re: Bankster post# 35827

Saturday, 06/05/2010 2:31:23 PM

Saturday, June 05, 2010 2:31:23 PM

Post# of 46577
Yes. Where else would those shorts come from? In order for the MM to provide market liquidity, they have to use shorts as a tool. They can't have orders just sitting there waiting to be executed. So they use their inventory to keep things running smoothly and in a timely fashion. Their shorting can drop the pps, but in order for them to do their job, it has to be done. If their intent is to drive the pps down, they can do that by selling off their inventory.

Finra requires daily and bi-weekly reports. The bi-weekly report is the short position taken (mainly) by public investors. Currently, that position is 0 shares. The highest I've seen it is 800K, which is nothing when the float is 1.9B. It's difficult for the public to short sub-penny stocks. There's really no money to be made doing it. It's difficult to locate shares to borrow in order to do it. Here's some light reading when you have time, or if you're trying to cure chronic insomnia.

http://www.sec.gov/spotlight/keyregshoissues.htm
http://www.sec.gov/rules/final/2008/34-58775.pdf
http://www.sec.gov/rules/final/2008/34-58774.pdf
http://www.finra.org/Industry/Compliance/RegulatoryFilings/ShortInterestReporting/index.htm