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Re: AlanC post# 5221

Friday, 05/06/2011 8:35:06 PM

Friday, May 06, 2011 8:35:06 PM

Post# of 20257
This seems like a fairly simple situation to me. Both FINRA and the SEC are fully aware of the EIGH situation. Now if Etrade as an example is as short as it appears does anyone really believe they would be stupid enough to plan on putting markers in their clients accounts? I don't. I think that would be blatant fraud.
As things stand they might be able to claim ignorance but now with everything out in the open there is no way they would put markers in our accounts imho. Seems to me they have but one option and that is to buy back the shares they are short. That would mean they would have to keep increasing the bid until enough folks were willing to part with enough shares to clean up the "mess". Of course Etrade is but one of the brokerage firms that are short and I would think there would be a spirited competition to cover with the first to cover covering for the least amount of money. The only other option I can envision is with those short making some kind of deal with EIGH management and somehow I think shareholders might not be happy with that as a solution. I suppose it could be some combination of both but regardless it is sure going to be interesting.

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