Replies to post #152524 on Sulja Bros. Building Supplies, Ltd (SLJB)

[vixpix]

It would have to have been naked right. I know you can legally short pennies with overseas brokerages but they can't do it legally in our market correct? Therefore they must naked short?

Vic

[sawtrader]

Depends on the brokerages who initially lent those naked shares out, in cahouts with mm's, to offshore trading accounts--eg hedgies etc.
Now most of those hedgies will not even care to buy back or cover, because the brokerage is held ransom, for lending them shares, in an illegal transaction. In the end, it is the brokerages, who are forced to put trading restrictions, because they are unable to force these offshore entities to cover.
Finally the brokerages/mm's play hardball, keeping the pps low as long as possible and then cover to some extent, creating spikes in spurts.