Top 50 holders hold 106% of the Stock

Discussion in 'Wall St. News' started by flytiger, Jul 24, 2008.

  1. So, ask yourself. With 590 or so SHO stocks, and a thousand or two or three thousand stocks 'grandfathered', what are the fails to deliver out there, how much to buy them in, and why is the SEC dragging their feet? Reappears on the Regulation SHO Threshold List
    'We're Still Batting .950!' Celebrates CEO Byrne

    Last update: 5:44 p.m. EDT July 24, 2008
    SALT LAKE CITY, July 24, 2008 /PRNewswire-FirstCall via COMTEX/ --, Inc. (OSTK:
    overstock com inc del com

    4:00pm 07/24/2008

    OSTK 18.20, +0.75, +4.3%) announced that today, after a 14 trading day reprieve, it has reappeared on Nasdaq's Regulation SHO threshold list. (Source:
    Regulation SHO requires the stock exchanges to publish daily a list of companies whose stock has failures-to-deliver above a certain threshold. It also requires mandatory close-outs for open fail-to-deliver positions in threshold securities persisting for over 13 days, with the aim that no security would appear on the threshold for any extended period. Despite that aim, has now appeared on the Regulation SHO threshold list for 839 trading days -- about 95% of the nearly 900 days the list has been in existence.
    "We're back on the list," said chairman and CEO Patrick Byrne, "but I'm not surprised. Data provided by a financial news organization suggests that of our approximate 6,000 owners, the top 50 own 106% of our stock. And yet last Friday, it appears that 20% of our issued and outstanding stock traded, as the price of it fell 40% when we announced earnings that largely beat the Wall Street consensus expectations."
    Last Friday, nearly 4.5 million shares traded -- nearly ten times the average volume. In addition, there was an abnormally large volume of trades in the options market on Friday -- even for an options expiration day.
    Ironically, this happened while the SEC put in place an emergency apartheid order that provides special protections against naked short selling for a select 19 companies, those being Fannie Mae, Freddie Mac, and 17 Wall Street firms, only seven of which have ever been on the Reg SHO list to date, and nine of whom have been enabling naked short selling against (according to a lawsuit filed by Overstock). Byrne said, "This apartheid protection of the elite of Wall Street is Orwellian: why should a select group of brokerage firms receive special protection from illegal trading practices, when many of these firms have enabled others to engage in these very same practices, targeting public companies that now receive no protection under the SEC's emergency order?"
    The American Bankers Association has asked that the apartheid system be expanded to include more banks. However,, the Financial Services Roundtable, and former SEC Chairman Harvey Pitt, have called on the SEC to expand and extend the rule of law to the entire market.
    Byrne continued: "When someone sells something that they neither own, nor borrow, nor deliver, a reasonable person may ask, 'What is being sold?' The answer is, 'Nothing.' The SEC has realized that liquidity born of 'nothing' may be unhealthy for the market." believes that in order for naked shorting to stop the SEC must:
    1. Eliminate the option market maker exception of Regulation SHO.
    2. Extend the pre-borrow requirement of the emergency order to the entire
    market, not just the 19 select companies.
    3. Cause to be disclosed the volume of failures to deliver on a timely
    basis -- at least as often as the exchanges disclose legitimate short
    interests (twice a month).
    4. Expand the purview of Regulation SHO to include transactions that occur
    outside the Depository Trust and Clearing Corporation.

    "The SEC must do more to stop chronic failures-to-deliver," said senior vice president of corporate affairs and legal, Jonathan Johnson. "If it continues to take mere half measures, abusive manipulators will continue to have their way in the markets."
    As of today, 568 companies are on the Regulation SHO threshold list: 245 for over 13 consecutive trading days, 52 for over 100 consecutive trading days, and one, Medis Technologies Ltd., for 746 consecutive trading days. (Source:
  2. has ostk ever made a profit?
  3. S2007S


    OSTK, hmmmm

    Its posted a loss every year since 1999, never had profits, how long can they last, they are paying more and more and more to obtain customers. Wouldnt touch it.
  4. must be those naked shorts keeping ostk from making money :D
  5. top 50 holders hold 106% of the stock.

    What is it you don't get about illegal? What is it you don't get about illegal? JUst what is it you don't get about illegal?

    Anybody drive a Ford? What are they doing in business? What Airline do you fly?
  6. Cry me a river.

    Easy rule: When the company blames shorts for their shitty performance, short the livin hell out of them.
  7. Even if it's a multiple of the float. Right? Tell me how that happens.
  8. How ever I can get the shares. I trade for the money plain and simple.

    I would like to know how they get naked borrows overnight. I can only get them intraday.