Ask them about GVRP. OS=11 Float=1. Insiders sold the ONE share 138,000 times with a 3,000,000 to 1 FS due on 5/23/2005. They sold the previous week FS shares they had received early. SEC regulations state that those who bought the shares prior to the ex-date of 5/23 are entitled to the FS shares. The mistake caused the Auth of 100M (or 33 shares pre FS) to be obliterated.
Surely then one would expect those who sold in error to have to buy their shares back off the open market since they made a mistake.
Surely the SEC would not step in and suspend the NET CAPITAL rule which caused those with a short position to have to cover. Surely the SEC would not allow insiders to sell the company 12,500 times adn the float 138,000 times. Surely the SEC would not allow the MMs who shorted this stock to not have to cover their short positions.
That is EXACTLY what the SEC has done. The biggest mistake in any stock market anywhere in the world and those on the correct side of the mistake are getting screwed because the regulators are throwing the rule book out the window and letting those with a huge short position walk away scott-free.
OUTRAGEOUS. Then throw a little fine at about 15% of the shares that were traded and say see we protected investors.
GVRP is the finest example in the world of extreme shorting that was sanctioned and approved by the regulators. Their failure to enforce the security laws, and in fact to suspend them, created a corrupt and unfair market place.
Just the truth plain and bold.
Before you criticize a man, walk a mile in his shoes. That way, if he gets angry, he's a mile away and barefoot.
