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Re: jayree post# 1315

Sunday, 05/08/2011 7:15:45 PM

Sunday, May 08, 2011 7:15:45 PM

Post# of 1826
Jay:..also i once researched a few stocks which had this OBV Acc/dist variance and came up with a theory. I believe i usually occurs where there are huge amounts of "failures to deliver" as is the case with neph. MM's continue to allow a few clients to short shares with out borrowing real shares (naked shorting). If you check out nephs failures to deliver it usually has been a big percentage of the overall daily volume for over a year now, again making some thing there will be a short squeeze at some point.

if you want to look into my theory check out the stock Dendreon(DNDN). This company was known publicly to have been a naked shorted stock. It even made jim cramers show and when asked about it he made the statement to the caller; "don't touch it, it's a battle ground stock!" If you look at period from about 2-3years ago the OBV and Acc/dist discrepancy is again obvious. Let me know what you think.

-con
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