dcspka, here are the facts about shorting the stock.
To legally short a stock, the broker needs to borrow shares UNLESS the seller tells the broker he has notes that can be converted into shares.
That does not mean the seller actually converts his notes into shares, just the fact that he has notes that can be converted. Each time one of the lenders processes a note conversion with the Transfer Agent, the fee is $35. That fact is from one of Radients SEC filings.
When the broker is told that shares would be forthcoming from note conversions, they are not true shorts but unresolved trades. There is a HUGe difference between the two. The true short report is a bi-monthly report. The daily short report you mentioned not only has the true shorts but also those unresolved trades.
Under the rules, after 45 days, the broker should demand shares from the seller for the unresolved trades but if the lenders are dealing with an overseas broker, that might not happen so IMO, the lenders are probably not covering the shares they sell.
What the lenders are doing is illegal anyway, for them to legally convert notes and sell, the company is required to be current with SEC filings.
I have never shorted nor intend to have any financial interest in this stock. I am not connected with anyone who trades, shorts or has financial interests in this stock. I only post facts and my opinions. I do not post on IHUB with different aliases.
