InvestorsHub Logo
Followers 751
Posts 16644
Boards Moderated 0
Alias Born 05/30/2007

Re: None

Sunday, 02/13/2011 5:14:08 PM

Sunday, February 13, 2011 5:14:08 PM

Post# of 118239
Short Stoppers, Inc.

Naked Short Selling

The illegal practice of naked short selling exists when the short sellers try to overwhelm
the company by making shares of stock they do not own. Legal short seller borrow
stock to deliver when they make their short sales. The naked short sellers flood the
market with sales and do not deliver or make some shift to get around the delivery rules.
Conventional wisdom says if the company is any good, it will survived a short sale
attack, so how do illegal short sellers destroy worthy companies?
If the company is in the development stage, it needs to raise money to survive.
Typically, this will be done with issuing and selling more stock. The lower the stock
price, the more stock has to be sold and the weaker the company becomes. If the naked
short seller can push the price down far enough, he can kill the company by choking off
new stock sales. When the company dies, he profits 100%.
We recently formed Short Stoppers, Inc. to attack illegal short sellers and help their
victims. For more information, get a copy of my report, How the Shorts Raid Your
Stock, Destroy Your Company and What to Do About It.
What you should know is that the naked short is in a dangerous position. He may be
short many times the float, even many times the authorized amount of stock. If the stock
goes up, he will lose everything. He must destroy the company to survive. No weapon,
no crime is off the table.
This is why the more the company struggles and does new things to move forward, the
more violent the efforts of the short seller to kill it. It is a life and death struggle between
a well financed, smart group of financial predators and teams of overworked, underpaid
under-financed and ignorant of the ways of Wall Street company entrepreneurs.
Nowhere is this fight so evident as with what is known as “cellar boxing.”

Cellar Boxing
Cellar boxing is a form of naked short selling.
If a short seller can push the stock into the “cellar” of $0.0001 price per share, then a bid
and ask of $0.0001 to $0.0002 represents a 100% markup on any stock bought on the
bid and sold at the offering. If the price is no bid to $.0001 offer, the spread is infinitely
large.
How does cellar boxing occur? First, the short sellers, who may be market makers,
push the price into the cellar. When and if the company gets wise and tries to do a
reverse split, the stock is smashed hard back to the cellar. Investors soon lose heart.
This is a classic “bear raid.” Scare the holders into selling by selling aggressively.
As the naked shorts are short a ton of stock, they have to kill the company or face
disastrous losses and capital calls. They use smear and scare tactics, they use slander by
paid “Internet bashers” to kill the company.
As the company usually does not realize that it is in a life or death struggle, it dies.
So beware of buying a stock that has been cellar boxed or otherwise naked shorted.
This is a stock that claims to have been cellar boxed. Here is the five year overview:



In the meantime, every time the company booked a contract and announced it, someone
called up the company's customer to slander the company and harass the customer until
the order was canceled.
Has This Happened to You?
If you suspect you have been the victim of naked short sellers, if your company has been
slandered by those seeking to destroy your stock, if you have been cellar boxed, call us
now!

http://www.short-stoppers.com/

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.