Replies to post #25669 on Electronic Cigarettes International Group Ltd fka

[yerboss]

Bernie, I think what we have here is an end to shorting and dilution and a few brave souls taking a chance to get cheap shares in the hope of a debt solution being announced soon. Once the NR goes out that the debt has been restructured, the company is on solid financial footing and the increase in AS and the RS are cancelled this stock will move very quickly as the MMers move right out of the way of the huge wave of massive value-based buying. Even retail will be big given the exposure we have received here recently.

[rayinbrooklyn65]

I agree with your premise that today's trading activity was the more healthy combination of investor accumulation / day and swing trader activity and not the toxic debt conversions and shorting scenarios that have viciously eroded shareholder value over the past several weeks. As the maximum number of authorized shares are attained and issued into the tradeable float, the ever-increasing supply will cease.

However, while I agree with you that some of the short covering activity was in collusion with the debt conversions, which would result in a wash in terms of the number of shares that were shorted that needed to be covered; BUT I also believe there was a significant amount of naked short selling (the illegal practice of selling shares that have not been affirmatively determined to exist) that was not coordinated with the debt conversions, thus resulting in more shares being sold that actually exist. When these shorted shares need to be covered, a rise in demand will lead to price appreciation.

A look at otcmarkets.com indicates that as of December 15, 2014 there was a whopping 639% increase in short selling activity with an average daily volume of 8,625,604 shares shorted each day throughout the 15-day period tracked by the website, a known authority on OTC stock activity. I believe this shorting activity far outpaced the debt conversion ratio during the same time period, thus resulting in more shares being shorted than actually exist.

[Phin]

Maybe they made some kind of deal with note holders so they call only dilute 1 mil a day. If that's the case 77 trading days from now is approximately end of April, by that time the pps could be .50. Then if they want to raise the AS I think most retailers would be comfortable with it.