farviewhill did I answer your question? If not please ask again.
I simply undertook this DD to understand what GR was referring to in the CC:
GR on Naked Shorting
Ken Ziegleaf: Hi Gary. First off congratulations again… This is just exciting times for myself as a shareholder and I look forward to the months ahead. I wanted to step back, and I know you alluded last call that you really didn’t want to talk about some of the market dynamics of our stock. However, I think on a legacy basis there must a tremendous amount of, in my opinion, naked short positions and I am curious with your background in the capital market, what are you plan on doing to reconcile these accounts and possibly get some more attention for the market regulators to address what might be a significant amount of short sale positions? Thank you.
Gary Rabin: You bet. …I have actually hired a group that assists in evaluating naked short positions. And, unfortunately, one of the problems with being a bulletin board stock is that the SEC just doesn’t seem to really want to do anything about enforcing these naked short positions. So, I think as you have probably seen from the short reports that we had published from time to time, it is obvious that there is a significant number of naked shorts. But unfortunately, you know we are doing what we can to obviously alert the SEC to this. But, I think one of the problems is that there is just so much fraud and information going on related to what happens on bulletin board stocks, that it’s just very hard to get the SEC’s attention on these matters. So, this is another thing that we think is a big benefit to being listed on the NASDAQ.
Joe Vorano: …I have half a million shares myself for three years now. I mean the stock is already down 20% since 9:30 this morning. I am just saying this could bottom 4-5 cents before this reverse split happens. And the new investors coming on board, you know that will be a benefit for them when everything is corrected and all the stuff has to be, you know, up-and-up, but for the current investors I think we are probably going to lose. One more question if you don’t mind. When the NASDAQ requirements are in, do all the people that are naked shorting have to be straightened out first before you can get listed, like everybody has to show their books?
Gary Rabin: Well, look. The SEC takes much more seriously failure to deliver on NASDAQ listed stocks then they do on bulletin board stocks. So, that red show is designed to support stopping naked shorts. We are optimistic that that will be one of the things that will help us quite a lot. And the short analytical service that we are involved in obviously is all over this and is something that we are going to work to clean up.
