Narmac....respectfully I think your's is a very common POV, and ultimately it may in fact be true. The one fly in the ointment with that argument, as I see things....is short selling.

Up to Oct. 15th (just 4 trading sessions ago) the number of shares borrowed and sold short was almost 100K. I view short selling as "artificial dilution" and I will (of course) explain why.

There is somone, or more likely several....shareholders with shares in their brokerage accounts, but the shares are not there. Their shares have been loaned out and resold....and now someone else has them. Some of those borrowed shares could be mine. They still show up of course when I look at my account page, but they're held "in street name"....if I was to ask for physical delivery of a share certificate its very possible that my broker would not be able to provide it because the shares are not there.....basically what I may have is an electronic IOU for 5K or 10K shares or more....maybe they've all be loaned out.

I still own them of course, and so does someone else. That's why I call it artificial dilution. Let's say the public float is 50,000,000 shares....that means there are 50 million shares scattered around in various people's brokerage accounts. But wait....it isn't 50 million, its 50,097,000 because of short selling (up to Oct 15th at least).

Up to May 31st the number of shares sold short was only 1,500....so since that time another 95,500 have been added to the pile. And we know what the PPS has done in the interim....after bouncing around between $1.10 and $1.30 its not trading in and around $2.

So those shares that have been borrowed and sold.....if the PPS stays where it is, or climbs significantly higher.....the party or parties behind the shorting, they're in for some financial pain if they're forced to buy them back.

Right now, buying those shares back at current prices would cost around $200,000....and its possible that they aren't available.

I'm going to be opening a registered account with my broker...the one I use for my open money. And I'm going to transfer 5 or 10 thousand shares "in kind" from my open account to a registered account. If things work according to my understanding....if the shares in my open account have been loaned out, then they won't be able to move them right away....because they won't have a cert # attached to them as they've been loanded out.

If on the other hand if they haven't been loaned out....then they'll move over no problem.

I'll keep the board in the loop :-)