Hiflyer14 I believe naked short selling of BVHJ is a factor in why the stock has not been moving up on higher volume. Naked short selling of shares in Companies has caused the creation of a coalition called the NCANS ( National Coalition Against Naked Shorting ). This group took out a full page advertisement in The Washington to warn President Bush and others of a secret foe to the proposal to privatize Social Security: Naked short sellers. The ad warned that privatizing social security would give individual investors money that some would invest in companies that could become targets of naked short selling. "Naked short selling...is literally stealing money from the widows, retirees and other small investors," the ad warns. Naked short selling occurs when a broker fails to locate and borrow shares required to complete a short sale, a security not owned by the seller is sold in anticipation of a decrease in the stock price. Reg SHO was adopted earlier this year and aims at modernizing rules on short selling and addresses failures to deliver stock on settlement date. Under Reg SHO, exchanges will provide lists of securities with large amounts of failure to deliver. Once a securitie gets on the list, it typically becomes harder and more expensive to short the stock. Beverly Hills Film Studios BVHJ is on that list. It is claimed that short sellers may be using foreign exchanges to avoid delivering shares on settlement date. The reason BVHJ's board is being the subject of malicious slander, distoration of information by various posters could be that one or more individuals have or are shorting the stock. As an investor who plays both the long and short side of the market, I know that some short sellers will do every thing at their disposal to discredit a stock to discourage investors so that they either sell the stock or at the very least not buy it. So hiflyer14 the actual number of shares sold to investors of BVHJ could be significantly higher then the float suggests. As an investor of long standing I know a large short position can be ultimately very bullish for a stock. With this knowledge and the fact the stock is trading at such low levels and having the potential to surprise the market causing an increase in demand that could overwhelmed the shorts, causing a squeeze I am long the stock with a six fiqure position.
