Replies to post #43788 on California Grapes International, Inc (CAGR)

[whodis]

I never quoted, and frankly do not care about the FINRA daily report. If they are covered within three days, they will not show up on the long term list, which takes two weeks. Repeating your explaination of the FINRA daily short intereste report does not disuade me from my opinion, because I was never talking about the daily report to begin with!

Slojab is right. On every sub-penny pinkie board I monitor, someone cites the FINRA daily report as proof that there is a massive short going on. In truth, there is none.

[dh30067]

Well explained!!!

Slojab is right. On every sub-penny pinkie board I monitor, someone cites the FINRA daily report as proof that there is a massive short going on. In truth, there is none.

here is what happens when someone decides to sell GDHI.

1) The order is entered to your broker

2) The Broker routs it to a Market Maker

3) The MM accepts the order and sells your GDHI shares

4) After selling your GDHI shares, the MM then buys your GDHI shares to cover the original sale. Sometimes this takes place nearly instantly, and sometimes it drags on for hours.

5) Technically a "short" was created because the MM sold your GDHI shares before he bought them from you. Obviously it has to be done this way because there is no assurance that your shares can be sold. If that were not the case and the MM was required to buy your GDHI shares first, then anyone could sell for whatever price they wanted, whenever they wanted. The MM would be out of business in a hurry.

6) Only the first transaction (The sell) is reported to the tape so as to avoid double counting volume.

It really is a simple process and nothing overly complicated. But, because of the way its reported, it creates the appearance of a massive short, when in reality there is no short at all.