Replies to post #88726 on Expo Holdings Inc. (EXPH)

[Stock_Barber]

So you are finally acknowledging that ETMM is not guilty of any improprieties but it is rather the vehicle being used to move the diluting shares from the company's printing press into the marketplace?

shares sold *short* in anticipation of them being issued by expo's TA (11/29 ring a bell?) shares
then swapped between etrade accounts by the same entity/s shut
down when TDA stopped allowing *trades* back in 12/2009

Why does this trouble you so?

If I am a PIPE funder (or other buyer) and have made an agreement with EXPH to buy 300M shares at say .00005 on 2/1/11. Do I:

A) Wait for 2/1/11 to actually receive and then sell the shares when the dilution has been officially filed, others can see it, and may sell knocking the price down.
B) Sell on 1/31/11 and deliver the shares when they actually arrive in my account on 2/1/11.

B... of course. Zero risk, free money!

Is it legal? Yup! Is it shorting? Technically, yes. But not a short that needs to be covered at some future date beyond the delivery of the shares once issued.

I can not understand why you are making this out to be odd behavior... this is exactly how this is done everyday by PIPE funders. The blame falls squarely on the company for selling unrestricted shares.