RE: RE: Somebody has noticed DLKMstockarchangel:
I can appreciate the profit making potential and flexibility of having low cost shares or options. But I do not understand how the ownership of options or low cost shares obviates the need to deliver actual shares to a buyer when shares are sold. As I understand, if shares sold are backed by options, then, in order to meet regulatory rule, the options must be exercised and the related shares delivered in the required time. I presume that the actual retail owners of shares or options would meet this requirement as it would be enforced by their brokers, although I could be mistaken.
True, the listing of short sales is more current than the Failure To Deliver data. But it does appear that someone has sold shares repeatedly over the months of July and August of this year and did not deliver the shares sold.
So to my mind, either the holders of options or cheap stock when selling are ignoring, or being allowed to ignore, the delivery requirement or someone is shorting the stock and not delivering shares as is required by regulation. In either case, the buyer is getting phantom shares, and the price is being held back until the activity is curtailed.
But,
jmho
icbw