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Re: Willy post# 6145

Friday, 05/20/2011 10:46:44 AM

Friday, May 20, 2011 10:46:44 AM

Post# of 31709
Ok, i'll give you an example to clarify how shorts can manipulate the SEC # - let say an off shore brokers hmmm - Bahamas :) has a client who holds 1M shares of CAVR - since their accounts are pooled account, they can short (sell) their clients CAVR into the market - what do you think the short position is? Well according to SEC it's 0 since the broker sold their clients position rather than borrow from a different broker house.

When the client sells, they will need to buy back - they know most of their clients are impatient and will to sell at a loss if they can show weakness in the stock - bonus for them. But when a company like CAVR comes around with solid fundamentals, that when they get stuck - push then to a trigger point than the squeeze is on.