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kgs

03/16/11 1:02 PM

#8330 RE: lmcat #8326

Any short interest of tmsh will likely be naked shorts. (Shares sold by brokers and MMs who did not inventory to sell when they sold them)If the market makers do not have possession of all the shares they sold at clearing they will have to purchase them. Normally there is no real audit of the process as it is easy enough for a mm to buy the shares they need each day. The problem for naked short holders is with the certs being exchanged and limited volume to purchase replacement shares to put in their inventory .MMs short shares will be exposed as they will have a hard time finding sellers with enough shares to bring their inventory into balance.