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50.18% Of All NASDAQ BX Trading Yesterday Was Short Selling. AOI, CCE, RAD, JAVA, LVLT, UMC With Highest % Of Daily Trading Vo
August 27, 2009 / M2 PRESSWIRE / BUYINS.NET, www.buyins.net, has reviewed the NASDAQ BX Daily Short Volume Report for Wednesday, August 26th, 2009 and come to the following statistical conclusions. There were 2,936 stocks with daily short volume reported and total NASDAQ BX trading volume of 263,996,468 shares. Total Daily Short Volume was 132,462,879 shares. 50.18% of all trading on the NASDAQ BX yesterday was short selling. The chart below highlights 6 stocks that had unusually high percentages of their total daily trading volume attributed to short sales. Alliance One International (NYSE: AOI), Coca-Cola Enterprises (NYSE: CCE), Rite Aid (NYSE: RAD), Sun Microsystems (NASDAQ: JAVA), Level 3 Communications (NASDAQ: LVLT) and United MicroElectronics Corp (NYSE: UMC). To access SqueezeTrigger Prices ahead of potential short squeezes beginning, visit http://www.buyins.net.
DATE SYMBOL SHORT VOLUME TOTAL VOLUME MARKET PERCENT
20090826 AOI 118069 138989 B 84.95%
20090826 CCE 128338 154485 B 83.07%
20090826 RAD 131826 167645 B 78.63%
20090826 JAVA 173480 222424 B 78.00%
20090826 LVLT 2268402 2973418 B 76.29%
20090826 UMC 163032 214208 B 76.11%
In late October 2008 the SEC updated Regulation SHO requiring that all short sellers must locate, borrow and deliver any shares they have shorted, no exceptions, by T+3 settlement date. If not, a buy-in must be forced by the broker dealer that the short seller transacted through by the opening of the market on T+4. Since a company first appears on the naked short list when short sellers have been failing to deliver for 5 consecutive trading days, stocks should theoretically never be on the naked short list again. BUYINS.NET will monitor the exchangesa� naked short lists daily and issue an alert and notify the SEC and FINRA should short sellers fail to deliver on any short sales.
Reg SHO Rule 204 (i) requires brokers to deliver shares on long and short sales of publicly traded equity securities by settlement date, (ii) continues to require brokers to close-out fails to deliver by the beginning of trading on T+4 for short sales and T+6 for long sales, (iii) precludes clearing brokers and their introducing brokers from selling short a security, other than on a pre-borrowed basis, if a fail to deliver in that security is not timely closed out until the fail is closed out and that close-out transaction settles, (iv) allows clearing brokers to allocate fails to introducing brokers and (v) continues to permit brokers to rely upon pre-fail credit to satisfy Rule 204's close-out requirement to avoid the pre-borrow requirements when a fail at a clearing broker has not been closed out. However, the SEC liberalized certain of these provisions in several regards. For example, permanent Rule 204 now allows a broker to close-out a fail on a long sale by borrowing the security, whereas Rule 204T had only permitted closing out long fails by buying-in, which should alleviate some of the buy-in risk for investors that experience long fails. Similar relief was extended to close-outs for market maker fails, so that a fail from a bona fide market making transaction (including short and long fails) can now be closed out by the beginning of trading on T+6 by borrowing the security. Further, Rule 204 now permits a broker to borrow securities to obtain pre-fail credit for early close-outs, whereas temporary Rule 204T only permitted pre-fail credit to be obtained by purchases of securities.
The SEC refused requests to extend the close-out deadline for fails to deliver to the close of business on the close-out deadline, choosing instead to retain the requirement that all fails be closed out by the beginning of trading on the applicable close-out deadline. The Commission also rejected requests for a fail to deliver exception that would have provided an exception from the close-out requirements if a clearing broker's fail position was below a certain amount but said that it would continue to monitor whether a de minimis or odd lot exception could be warranted.
Alliance One International, Inc. (NYSE: AOI) engages in purchasing, processing, storing, and selling leaf tobacco to cigarette manufacturers and other consumer tobacco products in the United States, South America, Europe, and Asia. It offers flue-cured, burley, and oriental tobaccos. The company also provides processing and related services to manufacturers of tobacco products. Alliance One International, Inc. was founded in 1904 and is headquartered in Morrisville, North Carolina.
Coca-Cola Enterprises, Inc. (NYSE: CCE) engages in the manufacture, distribution, and marketing of nonalcoholic beverages. Its products include energy drinks and waters, and flavored waters with carbonation. The company offers its products principally under the Coca-Cola classic, Sprite, Dasani, POWERade, Coca-Cola, Diet Coke/Coca-Cola light, Fanta, Coca-Cola Zero, and Capri-Sun brand names. It also purchases and distributes various nonalcoholic beverages, including waters and flavored waters without carbonation, juice and juice drinks, teas, coffees, and sports drinks. The company sells its products through wholesalers and retailers primarily in North America, the Great Britain, continental France, Belgium, the Netherlands, Luxembourg, and Monaco. Coca-Cola Enterprises, Inc. was founded in 1944 and is based in Atlanta, Georgia.
Rite Aid Corporation (NYSE: RAD), through its subsidiaries, operates retail drugstores. Its drugstores primarily provide pharmacy services. The company sells prescription drugs and front-end products. It offers approximately 28,000 front-end products, which include over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, beverages, convenience foods, greeting cards, seasonal merchandise, and various other everyday and convenience products, as well as photo processing. Rite Aid Corporation markets its products primarily under the Rite Aid brand. It sells its products to the customers covered by health plan contracts, which contract with a third party payors, such as an insurance companies, governmental agencies, health maintenance organizations, and other managed care providers. As of February 28, 2009, the company operated 4,901 stores in 31 states across the country and in the District of Columbia. It has a strategic alliance with GNC to operate GNC stores within Rite Aid stores. Rite Aid Corporation was founded in 1927 and is headquartered in Camp Hill, Pennsylvania.
Sun Microsystems, Inc. (NASDAQ: JAVA) provides network computing infrastructure solutions worldwide. It offers its solutions under the Java technology platform, the Solaris Operating System, the MySQL database management system, Sun StorageTek storage solutions, and the UltraSPARC processor names. The company also develops networking computing products and technologies that include servers, storage, open source software, tools, services, and training. It offers servers, such as entry server systems, and enterprise and data center servers based on SPARC64, UltraSPARC, AMD Opteron, and Intel Xeon microprocessors; desktops; data storage products and services, including libraries, drives, virtualization systems, media, and software; and disk system products comprising data center disks, network attached storage, enterprise archive system, midrange disks, workgroups disks, a boot disk, and disk device software, as well as develops and sells silicon-based chips that facilitate networking, cryptography, and high-performance computing. The companya�s software offerings primarily comprise enterprise infrastructure software systems, software desktop systems, developer software, and infrastructure management software. In addition, Sun Microsystems offers component products, such as central processor unit chips and embedded boards on an original equipment manufacturer basis; and supplies after-market and peripheral products. Further, it offers support and managed services for hardware, software, and client solutions, as well as provides professional and educational services. The companya�s solutions are used in search, social networking, entertainment, financial services, manufacturing, healthcare, retail, news, energy, and engineering companies. It has strategic alliances and partnerships with Advanced Micro Devices, Inc.; Fujitsu; Intel Corporation; and Hitachi Data Systems. The company was founded in 1982 and is based in Santa Clara, California.
Level 3 Communications, Inc. (NASDAQ: LVLT) engages in the communications business in North America and Europe. It offers network and Internet services, including transport services, high speed Internet protocol services, dedicated Internet access, virtual private network services, and dark fiber services; and colocation services. The companya�s content distribution products and services comprise content delivery network, media delivery services, and fiber optic and satellite video transport services. Its switched services include VoIP Enhanced Local that launches IP-based local and long-distance voice services to residential and business customers; Local Inbound service that terminates traditional telephone network originated calls to Internet Protocol termination points; E-911 Direct comprising a fixed-location solution with network connections to public safety answering points and a solution for nomadic voice over IP providers; and One Plus, an automatic number identification based and carrier identification code based service, as well as a dedicated end-user service. Its switched services also comprise enterprise local and long distance voice services, including PSTN connectivity for customer telephone equipment; telephone numbers; standard services that comprise operator services, directory assistance, and 911 services; and long-distance access services. The companya�s switched services also include enterprise toll-free services; voice termination services; toll free services; and managed modem, an outsourced, turn-key infrastructure solution. As of December 31, 2008, its network encompassed approximately 67,000 intercity route miles in North America and an intercity network covering approximately 10,000 miles across Europe. Further, it sells coal primarily through long-term contracts with public utilities. The company was founded in 1884 and is headquartered in Broomfield, Colorado.
United Microelectronics Corporation (NYSE: UMC), together with its subsidiaries, manufactures and sells advanced process integrated circuits (ICs) for applications spanning various sectors of the semiconductor industry in Taiwan. It develops system-on-chip (SOC) ICs for various applications, including copper interconnects, low k dielectrics, embedded DRAM, and mixed signal/RF CMOS. United Microelectronics Corporation also offers foundry services and mask tooling services. The company was founded in 1980 and is headquartered in Hsinchu City, Taiwan with additional offices in Japan, Singapore, Europe, and the United States.
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WWW.BUYINS.NET is a service designed to help bonafide shareholders of publicly traded US companies fight naked short selling. Naked short selling is the illegal act of short selling a stock when no affirmative determination has been made to locate shares of the stock to hypothecate in connection with the short sale. Buyins.net has built a proprietary database that uses Threshold list feeds from NASDAQ, AMEX and NYSE to generate detailed and useful information to combat the naked short selling problem. For the first time, actual trade by trade data is available to the public that shows the attempted size, actual size, price and average value of short sales in stocks that have been shorted and naked shorted. This information is valuable in determining the precise point at which short sellers go out-of-the-money and start losing on their short and naked short trades.
BUYINS.NET has built a massive database that collects, analyzes and publishes a proprietary SqueezeTrigger for each stock that has been shorted. The SqueezeTrigger database of nearly 2,650,000,000 short sale transactions goes back to January 1, 2005 and calculates the exact price at which the Total Short Interest is short in each stock. This data was never before available prior to January 1, 2005 because the Self Regulatory Organizations (primary exchanges) guarded it aggressively. After the SEC passed Regulation SHO, exchanges were forced to allow data processors like Buyins.net to access the data.
The SqueezeTrigger database collects individual short trade data on over 7,000 NYSE, AMEX and NASDAQ stocks and general short trade data on nearly 8,000 OTCBB and PINKSHEET stocks. Each month the database grows by approximately 50,000,000 short sale transactions and provides investors with the knowledge necessary to time when to buy and sell stocks with outstanding short positions. By tracking the size and price of each montha�s short transactions, BUYINS.NET provides institutions, traders, analysts, journalists and individual investors the exact price point where short sellers start losing money and a short squeeze can begin.
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