UPDATED SRO = self regulatory organization, for a pinksheet stock, especially one like ooag, does not have to enforce the threshold security rule (though take your pick of those that driven by self preservation who ultamately will-head of trading desk for example), hence its a relatively safe bet that a large number of shares may be not reported to the bimonthly totals listed on the pink sheets for example. These shares, the unreported ones + the reported ones on pink sheets constitute not the total number of shares that have been shorted but rather the number of shares still short! big difference. buyins is not clear about the current level but it may not be a streach to consider that they are suggesting that the total position is the total shorted, for a threshold security that would never be the case unless there was criminal activity. but for a stock like ooag, its possible, It depends on how big the "entites" that are shorting the stock are, if they are cappuccino sipping turtleneck sporting weenies then more positions have been covered, if a multibillion dollar firm is shorting then little or no short positions have been covered.
thats about all anyone can say about what the report means, my graph is somewhat more insightful in that you can see the 3 main peaks that the FTD volume under each peak was successively less and that in the middle peak on 5/26/2010, what buyins called a 'normal' trading day was anything but normal, stock went up with minimal FTD's this is key, you look at the curves for FTDs on my chart and you see the FTD pressure got weaker, then the Third and final peak the shorts hit it harder but the shorting about that day decreased
the upshot is that the shorts came out strong for the first peak and weakened there after, when they didnt succede during the second peak, they hit harder on the 3d, but not as hard out of the gates weeks earlier.
it was to the shorts good fortune that the markets weakend but imho they did do a lot of covering during a several week period in the early part of the run up. But only again to take on an even more lucrative short position from whence the stock was higher. based on my charts (below) I think its more reasonable to assume that the stock as a short position of more like 50,000,000 shares tops rather 150,000,000, but this is assuming that there is some kind of internal regulation such as margin control, fear, etc. or whatever you want to call it that could compel a naked short seller to cover their position
Additional Note: because ooag does not have a "traditional SRO" we need to get to the otc.bb asap so that the stock obtains one, once we do, FTD's Thresholds, etc will all have to be (ultamately) adhered to (though some shortsellers undoubtedly will drag their feet!).
I think its safe to assume that if we work with the SHO once we get on on the otc.bb, the stock will rally hugely within the first 3 weeks simply based on compliance requirements of finally being a threshold security!
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IV. Threshold Securities
A. The Basics
1. What is a Threshold Security?
Threshold securities are equity securities that have an aggregate fail to deliver position for:
•five consecutive settlement days at a registered clearing agency (e.g., National Securities Clearing Corporation (NSCC));15
•totaling 10,000 shares or more; and
•equal to at least 0.5% of the issuer's total shares outstanding.16
Threshold securities only include issuers registered or required to file reports with the Commission ("reporting companies").17 Therefore, securities of issuers that are not registered or required to file reports with the Commission, which includes the majority of issuers on the Pink Sheets,18 cannot be threshold securities. This is because the SROs need to look to the total outstanding shares of the issuer in order to calculate whether or not the securities meet the definition of a "threshold security." For non-reporting companies, reliable information on total outstanding shares is difficult to determine.
-real
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