NeoMedia Technologies, Inc (NEOM)

[clawmann]

I have yet to find a rule outlawing the shorting of penny stocks. And the link I posted earlier to the SEC webpage on short-selling even clearly indicates that MM's may naked short penny stocks as part of their market making activity.

Quote from that SEC web-page:

"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, as there may be few shares available to purchase or borrow at a given time."


BTW, one more good reason to get off the OTCBB. I won't talk about how.....