Replies to post #30070 on China MediaExpress Holdings, Inc. (fka CCME)

[bogey999]

There is NO 'what if you don't cover" with naked shorts, the BROKERAGE has the obligation, by the rules of the nas, they MUST oover the naked shorts and they will legally and arbitrarily force the stockholders to cover, no recourse, no questions, no permissions, that is how it works.

They will cover at whatever the current ASK is, no matter how low or high

[Michael Anderson]

Im pretty certain they didnt have a choice in covering in that aspect as Drex stated, he has been forced to cover even when he did not neccessarily want to. He didnt have a choice and this is the situation with over 3 million naked + short

[Drexion2004]

I did not have an option to cover or not, it was done *for* me on my account by the broker. Sometimes they call you first (depends on broker) and tell you to cover yourself (Usually they might give a few hours). If you don't do it, they do it for you...So its not like they give you a fine or anything.

You remember when TDAmeritrade brokers made CCME 100% margin requirement right after the MW hit piece (intraday), when the stock dropped into the $11's (and then bounced soon after to the 13-14 area?). One friend of mine was forced, by the TDA brokers, to auto-sell his CCME shares in the $11 area due to that margin change -- Which was the low of the day. And this friend of mine had over 100k shares at the time with a huge account with over 10M in assets. This got him no consideration at all by the broker.

The actual account owner has no power in these kind of scenarios.

-Fernando