"Market makers sometimes can’t sell stock in response to demand because some securities that aren’t actively traded are hard to borrow", Well if it is hard to borrow, maybe they should stop borrowing them.
My name is Mic Stockwell from Los Angeles, and I'm just an everyday investor. I'm writing you today to try and influence you in helping me make this story publicly known to the investment community.
I would like to know what gives a Market Makers a right to short penny stocks? Why is it legal for the CEO of a brokerage house to also serve on the board of a market maker like Knight Capital? I'm referring to Rodger Riney CEO of Scottrade... also being a President for Knight? Scottrade loans our shares out to Knight without our permission, and then they use our stocks to short against us. We are just asking for a little fairness, could you help the everyday investor in changing market for the better?
I would like to give you some numbers of a certain stock Knight Capital shorted and the same stock Scottrade placed a buy halt on.
Health Sciences Group - HESG
Roughly 40 Billion HESG shares were traded in 2009 with 600 Million float and 2.2 Billion Shares Outstanding. Can you find out why Knight thinks they can short a stock like this, buy selling billions and billions of "air shares" diluting the stock price with all these phantom shares?
Transfer Online Transfer Agent for HESG 512 SE Salmon Portland, OR, 97214 503-227-2950 http://www.transferonline.com
Where is the transparency SEC had promised? What information are we supposed to believe when they can't even get the correct information themselves?
Pinksheets HESG Short Sale Data Date / Short Interest /% Change /Avg. Daily Share Volume /Days to Cover /Split /New Issue ?Nov 13, 2009 500,000/100.00/ 416,286,196/ 1.00/ No/ No ?Nov 30, 2009 33,537/ -93.29/ 1,202,490,600/ 1.00/ No/ No http://www.otcmarkets.com/stock/HESG/short-sales
Finra HESG Short Sale Data 20091113|HESG|160,686,123|416,393,152|O 20091130|HESG|142,224,948|868,823,153|O
Nov 13, 2009 - 500,000 vs. 160,686,123 difference only of 160,186,123 Nov 30, 2009 - 33,537 vs. 142,224,948 difference only of 142,191,411
HESG Security Details Share Structure Market Value1 $220,000 a/o Oct 05, 2010 Shares Outstanding 2,200,000,000 a/o Mar 09, 2009 Float 600,000,000 a/o Mar 09, 2009 Authorized Shares 5,000,000,000 a/o Mar 09, 2009 Par Value 0.0010
20091103|HESG|763,703,064|1,321,101,443|O
Last Reported HESG Float 600,000,000 vs. 763,703,064 difference only of 163,703,064 short sales above the shares available to the traded public.