So after reading all this, what I see is that ST and Nite are protecting themselves. Based on the stocks listed in those links, it looks like they were smart to stop trading them. By extension, they kept investors from buying in and getting stuck holding extremely overpriced shares they would get stuck holding. Now one could argue, we cannot sell our overpriced shares back to them when a perceived rally ensues and thus it is unjust. However, not seeing a single successful stock in that list (as far as a sustained PPS) and many completely defunct, leads me to believe that ST and NITE did your average investor a huge favor by preventing them from buying anymore.
Now for day traders, this is a problem, as they are not looking for long term investments. They love to trade shares, period. Nothing fundamental with a company truly drives them. They are trading based on momentum and this is not illegal, as long as they are not behind the over hyped, misleading, or down right false information pumped to message boards all over the internet (excluding this one of course.)
The rub on this stock (SFIO) is that there is a product that appears entirely legitimate (I even own one and have tested it among many smokers.) However, history even proves that can be misleading, and over valuation of PPS can be easily acheived. Some would argue that is exactly what has happened to SFIO, some would arge SFIO is different. Looking back in history, one could come to what would appear to be an obvious conclusion. That SFIO is...
Well as Denny Green once said, "they are who we thought they were!"
In the end, ST and NITE will allow the stock to trade again. My only question left unanswered is why couldn't NITE (I believe this is more a NITE thing than ST, as I believe NITE shutting it down leaves ST no choice and say in that matter) just choose to honor trades based on what shares they really own? Or is it the fact that they have no clue which shares are real? Oh wait, that is exactly what the problem is. So I guess I am more surprised that any MM is allowed to trade this stock, as it seems more than obvious no one knows exatly what they actually hold.
