RNWF - $50,000+ Coming Into This Stock In Earnest

Today RNWF was officially placed on the Nasdaq's Regulation SHO list http://www.nasdaqtrader.com/Trader.aspx?id=RegSHOThreshold .  

This is huge news for RNWF shareholders.  Specifically RNWF shareholders could be looking at at least $50,000 worth of buying volume in the coming days.  That $50,000 figure is based on today's $.003 close.  If RNWF continues to head higher that $50,000+ figure could rise substantially.

You might be asking why at least $50,000 worth of buying volume will be coming into RNWF?  Specifically Rule 3210 which was enacted by the SEC in 2006,  means that over $50,000 of RNWF stock has been sold naked.  Essentially some unscrupulous market makers(s) have sold shares to you, the retail investor, without actually owning those shares.  Wouldn't it be nice to sell shares of a stock you don't actually have the certificates of?  These market makers create fake shares out of thin air and sell them to you.  Most of the time these market makers can get away with it, but seeing RNWF on the REG SHO list means RNWF market makers have gotten caught with their pants down.

If RNWF continues on its track toward $.01 and beyond these market makers will be under significant pressure to find bona-fide shares to cover their naked short positions with.  As it stands these market makers, per SEC rules, can no longer short this stock.  That should provide for less resistance to the upside.  Couple these naked shorts with long term shareholders, who aren't willing to sell and you've got the ingredients for an impressive short squeeze.

I have said RNWF will hit $.01 and beyond, but this new development really adds some fuel to the fire.  At this stage we really don't know the exact amount of shares sold naked.  All we know is that it is in excess of $50,000 worth.  I think it is even more than that, likely $100,000-$200,000 as of today's $.003 close.

If RNWF continues its accession higher the real buying volume attributed to naked shorts covering could amount to close to a million dollars.  It's time these market makers paid for their greed.

RULE 3210 explained:





Rule 3210 requires clearing agency participants to close out
all failures to deliver in ”non-reporting threshold securities” that have existed for
13 consecutive settlement days. For purposes of Rule 3210, a non-reporting threshold
security is any equity security that is not a reporting security and, for five consecutive
settlement days, has: (1) aggregate fails to deliver at a registered clearing agency
of 10,000 shares or more; and (2) a reported last sale during normal market hours
(9:30 a.m. to 4 p.m., Eastern Time (ET)) for the security on that settlement day that
would value the aggregate fail to deliver position at $50,000 or more.4
If the fail to deliver position is not closed out in the requisite time period, a clearing
agency participant or any broker-dealer for which it clears transactions would be
prohibited from effecting further short sales in the particular specified security without
borrowing, or entering into a bona-fide arrangement to borrow, the security until the
fail to deliver position is closed out. To the extent that the participant can identify the
broker-dealer(s) that have contributed to the fail to deliver position, the requirement
to borrow or arrange to borrow prior to effecting further short sales may apply only
to those particular broker-dealers to which the participant has allocated such fail to
deliver position.
NASD will publish daily a list of the non-reporting securities that meet the threshold
requirements of Rule 3210 (Rule 3210 Threshold Securities List). To be removed from
the Rule 3210 Threshold Securities List, a security must not meet either of the threshold
tests in Rule 3210 for five consecutive settlement days.