Plastic2Oil Inc (PTOI)

[jimmenknee]

The final results are in to prove your theory absolutely wrong 4kids...

Fails-to-Deliver (FTD) Report for the second half of June 2012

To review, your assertion is that CANT Naked Shorted JBII in early June and overshot the Threshold and thus triggered Reg SHO.

For that to be true you rely on Daily Short Volume numbers as Naked Shorts that then show up as Fails to Deliver. At that point you are asserting identified Short trades are Naked Shorts somewhere in the neighborhood of 450k shares...

therefore 1 of 2 things have to happen as by your own admission they have been marked and are being tracked.

1. The Borrows are located and thus the Fail status resolves and the Short Trade continues in "legit" status.
2. The Borrows are not located and the Shorter is eventually forced to cover.

In the case of 1.), the Shorter would have to cover prior to the next Short Interest report date, that date being 6/29/2012 or have the Short shares accounted for in the Short Interest report.

In the case of 2.), the Shorter would have to purchase open market shares to the tune of ~450k.

What we now know of the FTDs and reported Short Interest during the "cover" timeframe is:

a. Up to/including 6/25/12 FTDs remained above 500k shares.
b. On 6/26/12 the Fails dropped like a rock to ~11k shares (the exact difference is 499,827). This area (low 10k) remained through 6/29/12.
c. On 6/29/12, the reported Short Interest was 71,742-- a mere 2,075 increase over the 6/15/12 reported numbers.

--So it is impossible for "case 1" to have resolved by locating borrows. Let's take a look at whether or not the resolution was via closing Short trades:

d. From 6/26-6/29/12, the total volume traded was 308,105 shares. So since the Short Interest on 6/29/12 was only reported to be 2,075 higher than the 6/15/12 report, that means that 306,030 shares total could be used as "cover" trades. At best that leaves 193,797 marked short trades short, thus making it impossible for those trades to have been "case 1" covering.
e. On 6/26/2012, the total volume traded was 48,311 shares, making it impossible for "case 2" purchases of over 450,000 shares.

So what did happen? Let's recap my assertion ( #msg-77147915 which also provides the referenced links). ~500k Restricted shares recieved in early December were sold into the float before their legends were removed. Restricted Shares are either marked Short or bypass the Daily Short Volume report and turn up as Fails while the process to get the legends removed runs its course. Once the TA transfers new shares to the Broker, the Fails are satisfied with no further "trading."

a. From at least 6/6/12 - 6/13/12 the Float remained at 46,099,023. This covers the period where FTDs eventually broke the reporting threshold in Reg SHO.
b. Up to/including 6/25/12 FTDs remained above 500k shares.
c. On 6/26/12 the Fails dropped like a rock to ~11k shares (the exact difference is 499,827). This area (low 10k) remained through 6/29/12.
d. By 6/27/12 the float increased by 1,272,664 shares, which is 2 days into the reported FTDs at a level below the Reg SHO Threshold.

Simple as that-- and to review, here's what the SEC says about NSS the conspiratorial side:

There also may be instances where a company insider or paid promoter provides false and misleading excuses for why a company's stock price has recently decreased. For instance, these individuals may claim that the price decrease is a temporary condition resulting from the activities of naked short sellers. The insiders or promoters may hope to use this misinformation to move the price back up so they can dump their own stock at higher prices. Often, the price decrease is a result of the company's poor financial situation rather than the reasons provided by the insiders or promoters.

http://regsho.com/faq/investorquestions.php