Greg-Interesting thought. A brokerage sets requirements, as you would have to go on margin to do this probably, for covering those shares once they go so high in the case of shorting. Now, Fiero has made a ton of money and essentially they are their own little firm. In this case they would set up their own requirements for margin, as they can do whatever they please. Why not take the gambe and short our stock; if the price does shoot up,(I expect it to) is there a reason why they would have to cover. They are doing business for themselves obviously, just let it ride. Who cares how high New Visual goes at this point.
But where do the Feiro bros borrow their money from and meet federal regulations? To a extent this would be theirselves. Also here is another fault, can they go to the point where they are forced to cover their own butts? They lost their own money, but have to use their money to cover what is lost in order to repay the debt to comply with federal regulations. I'm sure they have some very good attorneys and most of the Feiro assets are out of this country, or at least registered that way. Couldn't they just declare Ch. 13 or go through some other loophole to get out of the situation? My guess is probably at this point. Especially since they have been ordered to stop trading. However, they still probably are with some of their cronies.
Also, I am glad that the filing did not come out today. I would much rather have it on Monday with a whole week of trading left, rather than going into the weekend. Plus, depending on what Greenspan does with the interest rates (like a .75 or 1. cut) I would expect a very nice rally out of the markets. I don't think we would get anything out of .5 and the market would probably drop on a .25 basis point cut as the expectations are for a larger cut. Keep into perspective that the filing is the period ending on, well, not to sure but a couple of months ago anyways. I'm expecting some good news regardless and should set us up for some more to come.
Just a few thoughts which may not be made sense of. Probably thinking with to much about the Feiro thing. Personally, I believe they have to cover no matter what, have not done so fully yet, and will put some more nitro into our fire. : )
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