Spree-do you really not understand the simple and well documented facts: virtually every identified case of price manipulation in penny stocks involves artificially inflating their price; no single case of organized, or even disorganized, widespread "naked shorting" has ever been brought to light. O'Quinn is now 0 for 4 in his ballyhood cases, none of which have survived past preliminary motions to dismiss.
Think of that: in four cases involving nine initial and amended complaints the O'Quinn team has not been able to plead sufficient facts to get the suit past the very low bar required to go to discovery.
In fact, as regards penny stocks, the basic economics of margin requirements and the daunting logistics of actually efecting a short sale make even legal shorting of these securities virtually non-existent.
The whole myth no doubt arose from the mind of a pump and dump artist who needed a way to convince the gullible that the reason for the plunge in value of their stock was not the fact that the company had no value, but rather the result of mysterious "naked shorters" driving the price down.
You, patch, and the other fanatic adherents of this unfounded myth would rather believe that there is a widespread conspiracy including the SEC, dozens of brokerage firms and investment bankers, and even the DTCC/NSCCC, when the simple fact is that every single one of the companies crying naked short is, to all intents and purposes, worthless, engaging in ongoing and massive share dilution, and incapable of ever being a profitable enterprise.
JAG is a perfect case in point. The company has plummeting revenues, has announced one LOI after claiming an "acquisition" of an equally money losing company in no way related to JAG's core business. Even those were never consummated, but they each were accompanied by significant share dilution through conversion of discount CD's.
And now we have JAG's registration of yet another 25 million discount CD shares.
Jag sells shares to pay expenses, including the very generous salary and "bonus" grants to its executives, who obvously are totally incompetent to run their business. The company's current market cap of over $10 million is absurd based on any valuation model. Even if it maintains its market cap after the new share issuance, you can expect significant share price declines based simply on the new round of dilution.
So why does shorting, naked or otherwise, need to be invoked to explain the plummeting share price and almost total lack of trading in a company whose services people are disinclined to buy.
