There are shorts around bearspread but not from the grays.
Believe I read somewhere that Shorts must get out of Dodge after a stock is suspended, and lands on the Greys. It's out there somewhere in Internet land. The OTC site confirms 0% interest. Apparently they can't stick around, even if they wanted to.
As to the theory of Shorting before the suspension... first you need big bucks to Short penny stocks. As an exercise, ask your broker using a hypothetical example what type of margin or cash you would need in your account. Shorting a penny stock is just plain nuts!
Also focus in on the May period after the buyback was announced. Huge consistent volume, with the PPS deteriorating. How much was bought back? Jeffy never told ya. Consider the float in Jan 2011 was 140M. Then add on the 434M issued, and the 140M Reid converted before the suspension. That adds up to 714M out of the estimated 732M currently. It's also within the bounds of the 750M authorized by Jan 2012. From 01-May to 15-May approx 250M shares were traded. Everything points to the previously 434M shares issued to that "someone" being dumped. Dump 250M shares at an average price of 006, and you have approx $1.5M. That's not a bad profit from the $292K debt it cancelled out, for whoever was issued the stock.
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