SHort Squeeze!! Jim Cramer.....

[soonerlew]

Thanks to victory07 on board 88..............................


By Jim Cramer
RealMoney.com Columnist
10/12/2007 2:36 PM EDT
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Next week could see some pretty violent short squeezes because beginning Monday, the SEC gets rid of the major exception to the rules it put through two years ago to stop naked short-selling.

I haven't read a word about this. But on Monday, if you are using one of several grandfathered exceptions that allowed you to stay naked short, including one that said basically if you were short it before you could stay that way and another that allowed you to hide behind options rules, you have to cover.

That means stocks that are or have been heavily shorted over and over, like a Taser (TASR - commentary - Cramer's Take - Rating) or an Overstock (OSTK - commentary - Cramer's Take - Rating) or some of these homebuilders, could see a big squeeze starting Monday.

I don't like to recommend ideas based on short-bashing. It is a sucker's game; lots of stocks are heavily shorted because they deserve to go down.

I think that you could see some wild moves and I wanted you to know why that could be the case and so you can game it accordingly.

TheStreet.com and James J. Cramer, its co
messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_S/threadview?m=tm&bn=16839&tid=477005&mid=477005&tof=2&f rt=2
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cmkx $5.81 - FWIW
www.zshare.net/image/41938122fc306e/

[imSINGLEruRICH]

Thanks for the article Sooner!!

I just emailed this to my boss. When at work we spend half (some days all ... lol lol ) the time on line watching her portfolio. She has lost BIG $$$$$ in just the past year alone(5 digits). When I first started to tell her about NSS she acted like I had my head screwed on backwards.

Just Thursday I told her the same exact thing that is written in this article. Right down to the mention of Taser & Overstock. I have been watching Overstock for many many months, back when it was $13.00 pps...... Nope she didn't listen until it hit $ 20.00pps... She jumped in and bought a gang of shares but paniced one day when it dropped a 1.00 and sold. Just Thursday she bought back into OSTK at appx $35.00 +pps. Imagine 13.00 to 35.00 in not Even a year. Seems they have been covering for this amount of time. For her sake, I hope they have a lot more covering to do!!

Had she bought in at $13.00 and sat on it, she would have recovered most of her loss by now.

Same thing happened with ACEN (one of my stocks)... back in April or May I bought in at appx .58 after a phone discussion with CEO Addy Golic......... it ran to $1.41..(I sold at about 1.18) ..It was taken off the sho list after the run but put back on the sho list on 9/1 ....... I bought back in @ .20 and again @.03......... Hopefully there is some covering left to do as I am sitting with a few thousand shares. Hoping for the best !!

One thing Cramer did not mention is that they have (EDIT****until Dec 3rd ) 35 days. according to the post below, to complete the covering. I say complete because it seems that they have been covering alot of stocks for awhile now......Just my opinion though!

again thanks for the opportunity to show my boss that my head is not screwed on backwards when I am trying to tell her about NSS<...... lol lol lol.

I wish I had some BIG bucks to invest in some of the stocks I have been watching....... but unfortunately I don't,
My portfolio is sick thanks to R/s 's

Single

[imSINGLEruRICH]

By: newtopennies
13 Oct 2007, 12:04 PM EDT
Msg. 612985 of 613035
Jump to msg. #
LONGS...I don't know, I don't see any covering going on yet in the pinks. If the longer they wait, the more they pay, wouldn't the MM's bid early rather than late? Maybe they aren't worried because so many companies have reverse split their naked shares out of existence? How convenient. The whole deal smells bad to me still. For as large as many think naked shorting is, the silence is deafening. How do you trade certs? Can't do it last minute. Love all the rumors and stories, but sure would be nice to see something real. There are way too many smoke and mirror peddlers on these boards. Good luck! eom.

[imSINGLEruRICH]

ghowiepharts
Jack of Diamonds

BadBassPlayer:

Clearing agency participants and broker-dealers for which they clear positions (“participants”) must take immediate action to close out a fail to deliver position in a Threshold Security that has lasted for 13 consecutive settlement days by purchasing securities of like kind and quantity (“close-out requirement”).



The amendment requires Participants to close out any previously-grandfathered fails to deliver in a security that is on the Threshold Security List on October 15th

The close-out must occur within 35 consecutive settlement days of October 15th. If a security becomes a Threshold Security after October 15th, all fails to deliver must be closed out within 13 consecutive settlement days.

BadBassPlayer.......http://www.nasdaqtrader.com/aspx/regsho.aspx