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Message: How to make the shorts cover:

How to make the shorts cover:

posted on Mar 03, 2008 10:39AM

 This is borrowed from the yahoo-BRLC message board. Don't know if there is any truth to this but IMO -I think there is...

 

This is how we can force some of the shorts to cover

    11-Feb-07 05:50 pm    

If you have a margin account your broker is allowed to lend your shares for shorting. However if you place a sell order on your shares they can no longer be lent for shorting and if they already have been lent then they have to cover enough positions to equal your sell order. On Monday I am going to place a good for 60 days sell order for my 10,000 shares with limit price of $30. So they will never sell and the order will be good for 60 days but my broker will be forced to remove the 10,000 shares from those lent and force someone who has borrowed them to cover. I suspect that my holdings here are about average to above averar3. I'm sure that some of you have as much as 100,000 shares but even those that have only 1000 shares can help because a lot of small orders are equivalent to one large order. I don't think it would be unrealistic to get a few million shares off the market on Monday. We did this on the TIE board when ever the shorting got out of hand. It won't cost you a thing because the order will never execute. It only cost you the few minutes that it will take you to place the order. The law says that your broker has to cover these positions once you place such a sell order or they are committing a crime. I know what I’m talking about because I called my broker and he verified that what I say is true and told me that I could do this if I wanted to but it would not be in good faith of my margin agreement with them. So I asked him what they could do about it and he said there was nothing they could do about it in a somewhat disappointed voice. So I say if they want to short the stock naked then let’s take out some of the legally shorted shares and make them bleed.
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