Seychelle Environmental Technologies Inc (SYEV)

[ZachBuffett]

Does Hank, or anyone who knows about this, want to explain a bit further about what is going on here:

http://regsho.finra.org/regsho-Index.html

It would seem that you were right about those shares being shorted to you, Hank. For instance, I believe it says those 8500 shares you picked up on the bid on Friday were actually shorted. If I am interpreting this data correctly, hundreds of thousands of shares that have been bought on this run have actually been sold short, most likely from MMs. Which is really quite interesting, and to me begs the question if so many of these shares were shorted out to buyers, without shorting would the PPS here be much higher? Do they do this just to keep the stock liquid and the PPS not so volatile when there is high buying volume?

And what are the market makers going to do now that they got what seems like at least 5% of the float in the hole short here on the way up. Will we see them drive the price down again? Or will they cover?

Or am I missing something?

I stumbled across that page on another board talking about market maker exemption shorting of OTCs. The whole thing bothers me, really. It is my personal feeling that shorting itself is a perversion of the investment process, but again I'm still wet behind the ears. If it is just a short term strategy of market makers to fill orders when they don't have shares and keep the stock liquid, then I guess I can understand.

It seems like the majority of the time though, that is not the intention of the institutions. I'd just like to get a firmer grasp on what picture this info is painting here.