Replies to post #1127 on Signature Leisure Inc. (SGLS)

[shortsinthesand]

So what you don't think they had a chance to cover yet. ROTFLMAO

RE:Approximately 56.6 Million Shares Shorted Since July 2005

[Homersbud]

Buyins.net is total bs. Never does anything for a stock.

[shortsinthesand]

WOW looks like we have a real serious short problem here in 2007?

Short Interest Date Short Interest % Change Avg. Daily Share Volume Days to Cover
Aug 27, 2007 52,649 952.98 412,473 1.00
Jul 25, 2007 5,000 100.00 1,336,379 1.00
May 24, 2007 0 -100.00 1,151,876 1.00
Apr 24, 2007 18,289 -2.44 669,799 1.00
Mar 26, 2007 18,746 -93.76 1,203,598 1.00

ROTFLMAO what a freeking joke that PR was yesterday!

[Monksdream]

As I understand it, one has to have margin account with a brokerage in order to sell short. On can, of course, also buy additional shares by putting up as much as 50% of the equity (cash and acceptable bonds/stocks) and the brokerage puts up the other 50%.

The money the brokerage is treated as a loan on which it can charge interest.

The same holds true for selling short. It is a loan on which the account must make good.

As I understand it, an account wanting to make a short sale must have adequate capital to back up the value of the execution. Otherwise, the brokerage is acting like a credit card company. It creates money out of thin air by issuing a line of credit. The account holder, however, is obligated to make good on any amount borrowed, plus interest.

56 million shares is the estimate put out by this outfit that detects potential short squeeze opportunities.

If the estimate is anywhere near correct, one then has to determine the average price of these sales and how much money is at stake.

At 10cents a share, it works out to 5.6M$. At 25cents a share, it works out to 13M$.

The question in my mind is how many individual account holders spontaneously decided to enter short sales on the same trading session, or series of trading sessions with no foreknowledge of each other's decisions?

Did they have sufficient capital to allow for the executions?

And which brokerage firm or firms performed these executions?

Inquiring minds want to know.