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breezin_chs

09/06/10 6:38 PM

#1704 RE: Stock #1703

Nice dancin'. Why didn't you answer the poster's question?

MrBusiness: I was wondering if a list has been made for this board of PROVEN (if any) NSS stocks?

He was asking about stocks that have been naked shorted, not about short interest, a different (legitmate) animal.

Since you brought it up, yes, fails can be (and are) both long and short. The question, among many, is WHAT PERCENTAGE of TOTAL FAILS are long/short?

The funny part is that since NSS has attracted so much attention, it's now getting scrutiny by serious academics. The old lame excuses of human error and my-dog-ate-the-certs are laughable.

Although FTDs occur for reasons other than naked short selling, including processing errors and delays in delivering securities held in certificate form, we argue that persistent FTDs that lead to threshold listings are highly correlated with naked short selling.

The requirements for appearing on a threshold list–aggregate, open FTDs equal to, or greater than, 10,000 shares and 0.5% of the total shares outstanding for 5 consecutive settlement days–make it unlikely that processing errors and inadvertent delivery delays are the genesis of many threshold listings. We expect that the rare instances where processing errors and delivery delays do contribute to threshold listings are random and do not systematically bias our results.

- Profs. Boulton and Braga-Alves