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Tuesday, 05/07/2019 4:30:35 PM

Tuesday, May 07, 2019 4:30:35 PM

Post# of 90356
"2. Is “naked” short selling the reason my stock has lost value?"

The more I learn about naked short selling, the angrier I'm getting about being falsely and publicly labeled a naked short seller by a COLOTRAQ representative.

It's stupid for a company to blame their share price on short sellers. It's worse to specify who they merely "think" are short selling.

IRRESPONSIBLE AND REPREHENSIBLE.

AND STUPID.


If the idiot at COLOTRAQ who tweeted that I am a short seller has evidence, here's the number to call: 1-800-SEC-0330. Try not to embarrass yourself.

And now for the SEC portion of this post direct from https://www.sec.gov/investor/pubs/regsho.htm#_ftn15

2. Is “naked” short selling the reason my stock has lost value?

Investors should always use caution before investing in high-risk, speculative stocks, especially with regard to their retirement portfolios, because all stocks may decline in value. There are many reasons why a stock may decline in value. The value of a stock is determined by the basic relationship between supply and demand. If many people want a stock (demand is high), then the price will rise. If a few people want a stock (demand is low), then the price will fall. The main factor determining the demand for a stock is the quality of the company itself. If the company is fundamentally strong, that is, if it is generating positive income, its stock is less likely to lose value.

Speculative stocks, such as microcap stocks, often have a high probability of declining in value and a low probability of experiencing above average gains.[12] For example, investors should take extra care to thoroughly research any company not listed for trading on a national securities exchange, including companies which are closely held, extremely small or thinly traded.[13] Such companies may not meet the minimum listing requirements for trading on a national securities exchange, such as the New York Stock Exchange or the Nasdaq Stock Market. Many of these companies do not file periodic reports or audited financial statements with the SEC, making it very difficult for investors to find reliable, unbiased information about those companies.

There also may be instances where a company insider or paid promoter provides false and misleading excuses for why a company’s stock price has recently decreased. For instance, these individuals may claim that the price decrease is a temporary condition resulting from the activities of “naked” short sellers. The insiders or promoters may hope to use this misinformation to move the price back up so they can dump their own stock at higher prices. Often, the price decrease is a result of the company’s poor financial situation rather than the reasons provided by the insiders or promoters.


Emphasis added.