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Post by harryx1 on Oct 10, 2015 12:13:43 GMT -5
poodlebytes has put together a spreadsheet containing all failure to deliver (FTD) going back to the beginning of MNKD stock trading. I've taken the 2015 data and graphed the FTD percentage over the price up until the latest info in Sept. I believe Market Makers (MM) through a loop hole are exempt from the laws of naked shorting but they have 21 days to return the naked shares otherwise they become FTD. After a certain number of days and/or outstanding % of shares, the security can go on the RegSHO list which MNKD landed on back in June for 10+ days. Year to date 121,484,444 shares have been FTD. Will we see another spike in the end of Sept, beginning of Oct? 
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Post by mssciguy on Oct 10, 2015 12:17:06 GMT -5
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Post by irrationalexubera on Oct 10, 2015 12:28:11 GMT -5
forgive me if this is a newbie question, but once shares are officially quantified as FTD, have they in essence vaporized? 121+M shares times whatever price they were sold at is a staggering amount of money that seems to be removed with zero requirement to buy it back, ever.
am i wrong? can someone clarify?
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Post by harryx1 on Oct 10, 2015 12:35:54 GMT -5
forgive me if this is a newbie question, but once shares are officially quantified as FTD, have they in essence vaporized? 121+M shares times whatever price they were sold at is a staggering amount of money that seems to be removed with zero requirement to buy it back, ever. am i wrong? can someone clarify? I believe that's what the RegSHO list is for but not sure how many actually get cleaned up or closed out. Maybe someone with more experience/knowledge can explain. |
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Post by tonyz on Oct 10, 2015 15:28:06 GMT -5
It's my understanding that FTD only shows shares that weren't delivered by the 3-day settlement deadline. They still have to be delivered. Maybe I'm naïve, but I can't imagine a situation where they would just let shares "vaporize." I think during the short selling surges the available shares become harder to locate this is why the interest rate to borrow the shares had gotten so high.
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Post by jpg on Oct 10, 2015 17:10:02 GMT -5
Naked shorts supposedly transfer shares around to avoid failure to deliver notification.
I think the biggest use of naked shorting is to overwhelm buyers and create panic at the 'perfect' time. It is an ideal weapon to take out stop losses and cover quickly. A stock like Mannkind with a lot of not so savvy retail and zero chance of a buyout makes for a good target.
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