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Re: timmyjames post# 2755

Friday, 04/17/2009 8:52:04 AM

Friday, April 17, 2009 8:52:04 AM

Post# of 11069
The fact that a company goes on the SHO list doesn't mean it's being manipulated at all. If you'll not back in mid-Feb. we had a substantial increase in trading volume. While stocks can be manipulated through "naked short selling" one doesn't necessarily follow from the other. A little basic research - even from the SEC web site would stop all the nonsense about naked short selling of OTC BB stocks. I quote...

"A fail may also result from naked short selling. For example, market makers who sell short thinly traded, illiquid stock in response to customer demand may encounter difficulty in obtaining securities when the time for delivery arrives.

Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. For example, broker-dealers that make a market in a security generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board,5 as there may be few shares available to purchase or borrow at a given time."

Pay attention to the last sentence. Is manipulation happening here? Who knows - it's hard to know. But the odds are against it. I can tell you this...I've seen hundreds of posters commenting that such and such a stock will fly once a security goes on or comes off the list...doesn't happen. You want this stock to move - have mgt. return email, etc., or update re: its business plan (if it really has one). No amount of conspiracy theory will move this. And to please the rest of you - although what I've pasted is FACT - the last sentence was IMHO :)