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serfdom

11/28/06 10:05 AM

#136350 RE: Chas56789 #136349

NSS is not fraud. It may suk for us, but it is not illegal. MMs are allowed to NS, and if you go outside the US, it is completely legal for any investor to naked short a penny stock.

What is illegal is releasing false material information, as Rufus admits to doing.
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budge

11/28/06 10:15 AM

#136354 RE: Chas56789 #136349

NSS is FRAUD as FRAUD is FRAUD !

some is, some isn't. any penny stock that spikes up big on very high volume pushes market makers into a short position. this is permissible, legal, and good. the trick is to get the pps down far enough to by the shares required for delivery.

if something is an obvious scam, that invites mm's and others to not worry too much about delivery. who cares, it's a scam.

then you have situations like that outfit that was reported to have been busted(i don't know for sure if it is legit, i only saw the story posted) for selling 250 billion nonexistent shares of cmkx. that's a problem.
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Howzie

11/28/06 11:24 AM

#136402 RE: Chas56789 #136349

It isn't there now.
there is a very small (1mil) short position. this stock is in the toilet because it is a scam