Replies to post #51641 on Conversion Solutions Holdings (fka CSHD)

[cindyyoohoo]

Your post is a bit misleading and you know it. Suggesting Schwab is working together with Rufus? That's a stretch. I'll run that theory by when I talk to Schwab. tsk tsk

[semiguy99]

I have a Schwab account and spoke with Howie Kennedy, the one who sent the letter, about 30 minutes ago.

First of all, there is no collusion here. Schwab has a regular business of providing other major brokerages (Goldman Sachs, Morgan Stanley, etc) with collateralized shares that can be used to short stocks. Many of these situations involve hedge funds.

Howie said that, in his experience, stocks are as likely to go up after such an event as go down so no one should read anything into this as a future indicator.

Because of the amount of documentation and cost associated with loaning these shares out, Schwab only sent the letter to those who owned more than $100K of stock. My shares didn't qualify because I am below that threshold.

Howie said he had been overwhelmed with phone calls today about CSHD, mostly from people without Schwab accounts, and he never anticipated the letter being posted publicly.

I find it difficult to believe that a penny stock would have so much interest from major brokerage houses for shorting at this time unless there was a sentiment that the share price was about to increase significantly, at which time it might be a good short.