Replies to post #28200 on iTalk Inc. (fka TALK)

[rbtree]

Missleading data, not actual short interest:

But as has been explained many times, otcshortreport is daily MM activity processing orders to keep an orderly and timely market flowing. And only the first leg of a trade is reported. In the below case, the trade is marked short.

Example,
MM needs to fill a 10,000,000 buy, but not enough available right then. MM shorts 10,000,000, fills the order, covers the short 5 minutes later .... net zero.

Say that happens 3 times during the day. 30,000,000 "short" during the day, but net zero right afterwards, no open short position.

But the end of the day, the daily report shows 30,000,000 shares, so people mis-read it and claim 30,000,000 shares short, waiting for the big squeeze ......