Replies to post #60532 on Lans Holdings Inc (fka LAHO)

[dragon52]

Gee... I dunno... maybe thoughts like

"...If the company files bankruptcy, then the positions disappear from shorts accounts and they keep the profit cause they don't have to cover. The longs are stuck with a loss that they can write off. BUT if the company does not file bankruptcy and the shares are reissued, it is my opinion..."

"...Keep in mind that the longer this stays out of bankruptcy, short sellers are paying a stock lending fee that racks up daily..."


This is where your mind got twisted... Reading an article that was irrelevant.

Maintaining a Short Position in Stock That Is Delisted and Declares Bankruptcy

https://www.investopedia.com/ask/answers/maintain-short-position-delisted-stock/

It only applies if you are short and the company declares BK... it has nothing to do with this situation.

[dragon52]

You contradict yourself again...

"...We can agree that the shares are revoked, that's obvious.... and all of the shares are assigned a CUSIP # just like the long's shares are that sits in their accounts. Difference is that the shorts are waiting on bankruptcy. When bankruptcy doesn't come....those CUSIP #'s that are still "related" to LAHO will get attached to a new share, long or short, once all classes of shares are re-issued..." Up to this point you were some what on track or tracking...However, this is where you are missing the point...

To continue, you said, "...Those that are short...still must cover.... Period. Plus pay that daily lending fee..."

The shorts cannot cover because they will not be able to match the CUSIP of the stock they sold short or naked shorted. More so if it was Naked Shorted, because not only the CUSIP does not match, there are no shares to match the amount Naked Shorted.

In order to cover their short, shares borrowed are returned... But where are those shares if they were revoked? It becomes a Failure to Deliver. PERIOD.