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Post by frenchysxm on Jun 29, 2014 20:38:27 GMT -5
I was just at the Nasdax site and it states that a short sale circuit breaker was tripped on MNKD Friday June 26 at 3:34 and short selling according to rule 210. Can someone please explain the implications of this on us and the share price impact tomorrow. Thank you
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Post by mannmade on Jun 29, 2014 20:46:06 GMT -5
Just posted similar find found on YMB. Apparently SEC Rule 201 prohibits shorting of a stock the next trading day after it has declined more than 10% in value during any trading session from previous days close.
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Post by mannmade on Jun 29, 2014 20:47:23 GMT -5
Here you go... will try and remove other post...
Found this on YMB today...
Important All longs read this Short Sale Restriction imposed on MNKD mandatory
This is the SEC rule. Short Sale Circuit Breaker
The SEC adopted amendments to Regulation SHO with a compliance date of November 10, 2010. Among the rule changes, the SEC introduced Rule 201 (Alternative Uptick Rule), a short sale-related circuit breaker that when triggered, will impose a restriction on prices at which securities may be sold short. The SEC also issued guidance for broker-dealers wishing to mark certain qualifying orders 201cshort exempt.201d For more details, refer to Amendments to Regulation SHO (Release 34-61595).
MNKD short sale circuit breaker was activated, tomorrow no brokers can short MNKD.
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Post by frenchysxm on Jun 29, 2014 20:49:14 GMT -5
It sounds really good to me!
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Post by babaoriley on Jun 29, 2014 21:00:35 GMT -5
Great stuff, mannmade, but to paraphrase (more like contort) a famous line from Casablanca, "shorting has been known to happen despite rules against it."
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Post by jpg on Jun 29, 2014 23:44:37 GMT -5
If my understanding of what happened Friday is correct the short sellers massively shorted thinking Afrezza was denied (by Twitter or some other social media 'news'). Were shorts tricked into doing this? I think they were more then happy to follow any precomcieved view they had and blindly followed a sketchy rumour. I trulely dount they would have so massively shorted if approval was the first news they got. Once momentum set in it took a pause to change the run away train's direction. How many more shorts were added?
Will they be so bold as to keep the SI moving upwards in the face of an imminent partnership or possibly buyout? At this point you have to be kind of nuts to add to an already massive short interest with such a relatively large percentage of shares controlled by insiders. A long fund with a few million $ could wreak havoc on shorts in a very short timeframe. I can see why this will not happen to Mannkind.
JPG
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Post by mattm on Jun 30, 2014 2:22:19 GMT -5
Could someone confirm my understanding? From my search online,the rule is so that "traders may only sell shares short if the order price is above the best bid on the shares nationally" and not that the stock cannot be shorted.
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Post by noonen on Jun 30, 2014 4:24:49 GMT -5
Could someone confirm my understanding? From my search online,the rule is so that "traders may only sell shares short if the order price is above the best bid on the shares nationally" and not that the stock cannot be shorted. Been a while since living in that world, but looks like it can still be shorted. From the rule 201 it looks like shorts can only happen at 1 tick above the nbb (national best bid). now if a tick is .01 or .0001, who knows. some biggens can put in orders to the .001. www.nyse.com/pdfs/8764_NYSEArca_FAQ_110225.pdf |
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Post by Deleted on Jun 30, 2014 7:32:15 GMT -5
Also from Casablanca: I'M shocked, shocked !! that shorting is allowed in this establishment.
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