Replies to post #30909 on Zion Oil & Gas Inc (ZNOG)

[DragonBear]

'water before oil'-they discovered a little oil and more water- someday

Someday they run the risk of contaminating the aquifer, with a lot of water, and a teaspoon full of Kerogen.

***PROTECT YOUR SHARES FROM SHORTS!***
Click on sell, put price at $5 or more, and time at GTC (good till cancelled) and then brokers can't use your shares to short you out of your money! Dont make the thieves jobs easier by not doing this!

Which would do absolutely nothing to prevent the Short selling of shares you hold.

There are only 2 ways to prevent the Short selling of shares:

1. Ask the broker to mail you the paper shares, so that you hold them directly. Which means you have to send them back in, to be able to sell them later.

or

2. Hold them in a non-margin, or all cash account. Then call, and fill out the form requesting they do not allow your Shares to be Shorted. Else that fine print you didn't read when setting up your account kicks in - the broker can loan out your shares.

The way things work in the real world is... Say the evil Bear wants to Short ZN. The Broker will look internally for any shares to Short. Done! Since your Ask is at $5, it's never hit. Your shares can remain loaned out. Until they are covered later on. The Long never knows the difference.

But let's make it interesting - instead of $5, make it 0.60. Some wild PR pump comes in, and the PPS spikes to 0.60. Your Ask is hit. The broker now has to find shares elsewhere to deliver if the Short doesn't cover. Robb another account for share delivery. If none are available, the broker has the option of telling the Short they must cover, especially if it involves having no mercy in issuing a margin call. Or... go looking for shares in accounts possibly at another broker, or from a fund that has indicated they are willing to volunteer to lend out the shares. Now why would a Long ever volunteer to lend out their shares? Because a broker offered a kickback on the interest they are charging the Short to borrow. It's like a divy coming in to those lending their shares out.

In the real world there are plenty of shares to loan out, and most are not coming from retail. Before the broker runs low on available shares it's willing to lend out (e.g. offer up kickbacks on the interest charged to Shorts), there has to be huge demand for shares to Short. In a stock where the Short bet is a stock >$2.50 for PPS. No one wants to content with FINRA Rule 4210. In a stock that has that $5 potential movement on the downside. Current Short Interest as listed on the NAS site for ZN is less than 5%. Trivial. One shouldn't get too excited until it reaches 12%+. I've got a stock elsewhere that is 40% Short, while being 60% owned by the Tutes&Hedgies. Interesting tug a war there. The current Short interest of <5% in ZN is probably an anomaly generated by SEC Rules 201-203.

So go ahead, and set an Ask at $5. Unless one has taken one of the actions I listed above, the shares can be loaned out. And the beauty of it is at such a high price, the broker will never have to scramble to find shares to deliver, as your Ask will never be hit. Again, the chances are the <5% is an anomaly. And in any case until they bug out, any real short positions are being supported by the remaining Tutes in ZN. Retail grasshoppers aren't that important, fur as long as ZN maintains its NAS listing.