Innovation Pharmaceuticals Inc (IPIX)

[sox040713]

The naked shorting theory can be debunked using simple logic. According to some longs here, naked shorting started when the SP was around $5 and there are hundreds of millions of shares out there. Let's say you naked shorted 100 million shares at an average price of $2.50. Would you

1. cover now at 25 cents and take $225 million in profit ($250M - $25M) and run, or

2. continue to hold for years hoping to drop another 25 cents, pay interest on hundreds of millions of shares, and risk the SP to recover?

5. I won't discuss in detail naked shorting here since there is no viable way to show it one way or the other as others have professed. I believe there may have been a large naked short during CTIX and maybe a lingering much smaller naked short now as part of my explanation will graze upon. Quite possible there is no naked shares at this point. I really don't know.