Deep Blue Marine (DPBE)

[PinkElephant]

Nice dodge. Whatever.

Here is a description from pinksheets of the SHO regulations put in place supposedly curtail naked shorting:

http://www.pinksheets.com/marketactivity/reg_sho_list.jsp

The SEC claims that this is too difficult to enforce for non-reporting companies, so many that should don't appear on the list. (see point #6 under section V)

http://www.sec.gov/spotlight/keyregshoissues.htm



Consequently this allows the MMs and anyone else to flood the Market at will with FTDs (Fail-To-Delivers or naked shorts). Since they can arbitrarily create supply to meet nearly any demand they can keep the price down where they want. They can smother small increases in public interest generated by PRs, long enough to discourage new investment.

Companies like DPBM who depend on selling shares to keep operating are highly vulnerable to this, because they have no other alternative except to sell more and more shares at lower and lower prices to stay afloat. Even the threat of pulling up millions in gold isn't enough to stop it, because if they can force the company to sell enough shares first, even large amounts of money won't force them beyond their break even point.


I don't think DPBM is in trouble yet. Our market cap (PPS x Outstanding Shares) is only around $10-12M. If they net $50M in the deep water find, that is 5 times our current market cap.