Replies to post #278022 on Kraig Biocraft Laboratories Inc (KBLB)

[DimesForShares]

Well, that was a curious document you sent. No author, no date, no references. Some potential flags there. So I did a little digging.

The article was posted to the SEC in 2008, 16 years ago. Since that time, the SEC has made several changes to their regulations in order to eliminate loopholes mentioned in the article:

“As initially adopted, Regulation SHO included two major exceptions to the close-out requirement: the “grandfather” provision and the “options market maker” exception. Due to continued concerns about failures to deliver, and the fact that the Commission continued to observe certain securities with failure to deliver positions that were not being closed out under then existing requirements, in 2007 the Commission eliminated the “grandfather” provision and in 2008 the Commission eliminated the “options market maker” exception.

“In addition, the Commission adopted temporary Rule 204T in 2008 and final Rule 204 in 2009, which strengthened further the close-out requirements of Regulation SHO by applying close-out requirements to failures to deliver resulting from sales of all equity securities and reducing the time-frame within which failures to deliver must be closed out.

“In 2010, the Commission adopted Rule 201 of Regulation SHO. Rule 201 restricts the price at which short sales may be effected when a stock has experienced significant downward price pressure. Rule 201 is designed to prevent short selling, including potentially manipulative or abusive short selling, from driving down further the price of a security that has already experienced a significant intra-day price decline, and to facilitate the ability of long sellers to sell first upon such a decline.”

This is from the page: https://www.sec.gov/investor/pubs/regsho.htm

I haven’t taken the time to look for more recent analyses about the problems mentioned in that 2008 document, but I can tell you that it is significantly out of date and that many of the loopholes identified were addressed by later SEC regulations.

Aside from that, KBLB would not be a particularly good target for the kinds of attack this article mentioned. Such attacks depend on large trading volumes and lots of money involved. KBLB typically has been trading at less than a million shares/day over a pretty long period. At today’s prices, a million shares would represent $150,000 or so. This is too insignificant a target for the kind of antics you mention.

No sale.