Monday, May 16, 2011 11:42:00 PM
I'm not sure how the new shares are getting into the market, but that could be one source of the shorts.
Often, when there are people who have access to shares through debt conversion or options, people will short, then convert/exercise and use the new shares to cover the short. That way they only have to convert/exercise what they have already sold. When that happens they never get caught with shares.
Could be why the short is covered so fast. Sell short, convert/exercise, cover. If that is what is happening, then to me it means nothing. Just another way of converting shares to cash.
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