Replies to post #95055 on North Bay Resources Inc (NBRI)

[1manband]

Those are not short sales, and that website is a paid promotional website that means nothing.

The only accurate data for short interest is from FINRA, who is the legal regulator for shorting. And they show..........ZERO shares of NBRI short. Not a single share. NONE.

http://otce.finra.org/ESI

I suggest you review my prior factual posts on the subject. Short volume is meaningless and is not short interest, which is the only one that counts.

[Peggy]

Nonsense.

Here's a spot on explanation courtesy of poster 1ManBand that explains why the OTC Short Report is bogus (it only shows the first leg of the trade) and why short squeezes never happen.


Quote:
--------------------------------------------------------------------------------
Market makers keep little to no inventory of sub-penny stocks. Especially ones with toxic death spiral convertibles, who are going to be worthless eventually. It is a matter of when, not if. Which means when they get an order, they short the stock to the client and then covers almost instantly. Usually that means buying the stock from the toxic death spiral funders, who have a standing order in for millions to sell - they will sell as much stock to the MM's as they need. If an order comes in for 10 million shares at $0.0002, the MM sells it short to the customer (because they have no inventory) then immediately buys the 10 million shares from the toxic death spiral funder at $0.00019 (or less) and is flat. But the short volume report only records the short leg - they don't reconcile the long trade, which is why short interest is ZERO. These MM's are happy to make the spread with zero risk. Keeping any inventory, or holding a short position overnight, is too risky.

Ironically, those daily short volume numbers are highest with toxic death spiral stocks under massive dilution. NBRI is the perfect example. The MM's know they don't have to keep a single share of inventory because the toxic convertible holders will sell them as much as they need to cover any order.