yep, read the article. Karl isn't convinced how rampant it is. And neither am I. If Phoenix is being naked shorted, all they have to do to prove it is ungag the TA and let us find out for ourselves. Karl did mention that cash accounts will not fall victim to failed deliveries, but margin accounts do. So, perhaps it's time to convert our margin accounts to cash accounts. No biggie...
About the Global Links affair...I imagine one reason naked shorting is kept sort of legal is that if a company bought the entire outstanding share base and pulled its certs, and nobody naked short sold, the stock price would shoot to infinity because nobody would be able to buy a share at any price. If MMs can't naked short at least a little, that volatility becomes boundless, and it keeps companies from raping investors with a barbed-wire pole.
As far as PBLS, Phoenix has not released financials of any kind, and MMs are probably more attracted to shorting companies with no audited financials to back up their share price. I'll bet they're even more attracted to companies that have absurd PRs, which we have seen many of in the past 4 months. Also, so many companies like Phoenix go through reverse splits prior to filing that many MMs think it's a matter of time before the price gets so absurdly low that a buyback can happen without denting their pocket change.
If Phoenix is really earning the kind of money that merits a much higher stock price, let them prove it by issuing audited financials (and the Progas ~$397K net is not sufficient), and maybe even moreso by issuing a dividend.
Much of the buying in the past 4 months has been due to sentiment resulting from dangling promises. And every promise that is sort of half-met is followed immediately by another promise (in a couple months everything will be great! just wait a little longer...etc).
Phoenix obviously needs acquisition capital. AND THAT'S FINE. I don't mind companies diluting for capital provided their acquisitions have merit. Progas? Well, since everything appears to be debt free (though most of us missed the 'in installments' clause in the PR, which essentially means debt), and they will be a great resource for inside cost elimination, I'd say at the outset that it was probably a good move for them. However, the market seems to have echoed a sentiment I started making to myself a couple weeks ago: is Phoenix really for real or not, cause we're not convinced.
And I refuse to believe that a company with no profits or booming revenues to report (cause ya'd think they'd report it if it was there) has a low PPS because of naked shorting exclusively. Unless, of course, the MMs know the company is full of it and are naked shorting the snot out of it because they know they'll never have to cover...
I guess we'll see ;)
IMO
"A one that is not cold is scarcely a one at all" --Strongbad
