Replies to post #86677 on 8000 Incorporated (EIGH)

[butterfly89]

And that is why the SEC should be using their specialists to look into it. I don't claim to be an expert in covering because I personally don't care for the whole aspect of shorting. It is just a personal preference that I don't feel you should be selling something that you don't own, even if you borrowed it. I know people do it and I know people make money thru it. Would you like it if I borrowed your car and sold it to the guy down the street, even if I replaced it in a couple of days with one that was the same make, model and year but had more mileage on it? I'm sure that the SEC has ways of looking at this and unraveling the trades to see if there was something unusual going on. It is just a matter of waiting to see what they determine at this point.

[d-ranged]

So in this theoretical situation, how long would it take for those 400 shares to revert back to 200?

[Crazy Money]

This is why so many PINKS use the NSS excuse... IMHNO ... they can just claim ( or think they can ) they must have not understood that is how this stuff works and actually thought that there was a HUGE ILLEGAL NSS out to crush da company based on the numbers they were looking at on da books ;-)

Scragapenny Member Level Share Saturday, November 20, 2010 11:48:12 AM
Re: butterfly89 post# 86673 Post # of 86824
Wow my math was off. So if 43 million shares have traded in those dates, how many of those were covers?

This is where the NSS detection via an audit by the company bothers me.

Let's use my company as an example. It is not publically traded, but let's suppose it is.

An investor buys 100 shares from someone who holds 200 shares. That person's cert is split in my company book. The original owner's book entry is retired, and two new entries and certificates must be issued. One for the original owner reflecting 100 shares, and one for the new owner reflecting 100 shares. In my book, I have 400 shares accounted for, but only 200 shares exisit. There was no NSS, but someone could look at the book entries and assume that there are air shares out there based on percieved trading of 400 shares.

Edit ~ For the Record: This is exactly how book entries for my company stock are handled.