RE: CS now on SHO (naked short) listFolks,
The concern over "naked shorting" is way overblown. Just because a stock appears on the SHO list does not mean that it is the victim of naked shorting. Fails to deliver can happen for a number of reasons. Here's what the SEC says:
https://www.sec.gov/spotlight/keyregshoissues.htm
"A security'sappearance on a threshold list does not necessarily mean that anyimproper activity has occurred or is occurring. An equity security willappear on a threshold list if it meets the definition of a thresholdsecurity set forth in Regulation SHO, meaning that failures to deliverthe stock (i.e. to the party on the other side of the trade) havereached an aggregate of 10,000 shares or greater at NSCC for fiveconsecutive settlement days and are equal to 0.5% of total sharesoutstanding"
This link is also worth considering.
https://www.dtcc.com/news/newsletters/dtcc/2005/mar/naked_short_selling.php
Capstone trades on the pink sheets in the U.S. The short position as of the last report is only 81k shares.
https://www.pinksheets.com/pink/quote/quote.jsp?symbol=csfff#getShortInfo
Stockwatch has the current canadian short position at 75k. These numbers are tiny.
I would also like to point out that shorting is perfectly legal and widely recognized as serving a very useful purpose in the marketplace. Further, naked shorts are not a free ticket to profits. They assume unlimited risk just as with a normal short position.
Certainly the Canadian junior market has been devastated over the last year but I don't believe shorting, naked or otherwise has been a big factor. Some of the juniors that I hold have tanked dramatically despite very small short positions. In my opinion, the fall of the juniors is a function of three factors: 1) a flight to production over exploration in order to take advantage of current high commodity prices; 2) a flight to large caps with multiple projects (companies that require massive funding to bring their projects to market are at a large disadvantage because of the tight funding environment and rapidly increase costs of capital equipment; and 3) the proliferation of junior companies which has diluted the capital in this sector and spread it too thin--investor interest and capital has been diverted from the solid projects to weak ones.
Having said all that, I'm a big Capstone fan and own both Capstone and Silverstone.