From Quarters for shares on ihub:
First Mike: “I was not commenting on whether or not KBLB was being heavily shorted but rather on the possibility and motivations for shorting a stock.”
I understand. Your post did not explicitly mention KBLB but I took it as relevant to our board. The OTC clearly has many stocks and many situations. I don’t pretend to speak to them all.
Short attacks are occasionally mentioned on this board as the reason why KBLB’s share price is so low. Evidence for this theory is seldom offered, but some have mentioned the short interest reported for KBLB.
Short interest is not a direct measure of how many shares have been sold short. It also includes transactions made by market makers during the ordinary course of completing trades. These might clear quickly or remain until the exchange is finalized after 3 days, depending on the market maker’s position. I had to learn about this and realize others may be making the same mistakes I did.
When one looks deeper at KBLB, there is no evidence of actual shorting in KBLB. Beliefs that critical posts on this board, made in an effort to hold the price down while short positions are covered, make no sense at all when the short interest is around 25,000 shares.
Again, to reiterate my position: there are plenty of reasons beyond shortin....
Reply that can not be posted to ihub ( I hope it can be posted here?)
I can't answer your post publicly because it will be deleted and I would likely be banned from iHub for trying.
I once tried to start a discussion board about market maker's behavior on ihub and it was "discouraged".
I can't even tell you where to look because such information / discussion is heavily suppressed.
Briefly, MMs are required to reveal NOTHING of their activities except the closing price at the end of the day.
They are not required to cover shorts in any length of time and routinely write naked shorts that remain open for as long as they wish.
They are not required to sell to the highest offer or buy from the lowest offer.
They trade naked paper between themselves both long and short.
A single MM may trade between 2 different pockets ("accounts") at any price they desire at any time.
These "transactions" (any MM Transactions between themselves and their fellows or between pockets A and B of a single MM) are not part of the short interest because they are not reported, because they are not required to be reported.
MMs report only what they want to report when they want to report it (with the exception of daily closing prices which is the only thing required).
These practices are used to make money for the MMs at the expense of retail investors.
Example: An MM has a buy bid for 12,000 shares at $10 from a retail investor or another MM.
He has asks from 2 different sources for 10,000 shares, one at $10. and one at $8.
In an honest market the $8 ask would be filled and the remaining 2,000 shares would go to the $10 ask.
In the OTC/MM world if the $10 ask was from another MM or from a somehow favored client the $10 ask will be filled and the $8 ask would get the remaining 2,000 shares.
If you follow the streaming 2nd level trades you will see this all the time.
The reason/excuse given by the market makers in the highly unlikely event that they are challenged is that they were more certain of speedy delivery from the "Known" source.
So your precious "short interest" is FAKE NEWS!