Replies to post #5297 on SPO Global Inc (SPOM)

[eZ3]

Agreed the whole short thing is a bit confusing and everyone has a "theory", website etc. that is supposed to reveal the logic behind shorting.

My personal simple theory is this. When a stock is running and an MM or MMs begin to sell beneath the ask and really begin to knock PPS back and do this on practically a daily basis, to me that is a MM trying to keep prices low to cover or some kind of debt conversion like VERT was doing for several weeks with SPOM.

And if these MMs like NITE aren't shorting they are just plain ol' playing dirty. Trying to scare people into selling low as these MMs turn around and sell those very shares at higher prices.

Again I know it's over simplified and probably silly to sum but it makes sense to me and that's all that matters. LOL..

[Toxic Avenger]

Because the convert holders don't put their shares up for sale. They let the MM's know they'll cover any shorts because they can buy from the company at a discount to whatever the price is.

So here's how it works. Newbie Investor comes along, says, "Hey, I'll buy 100k shares at 2 cents". MM sells them to him. Reg Sho records short. MM contacts convert holder and buys 100k shares at 1.9 cents/share. Convert holder buys 100k shares from company at 1.1 cents. Everyone wins, except Newbie Investor who can't complete with convert holders who get a 55% discount.