It always troubled me how Patrick Byrne seemed to spend countless hours worrying about his stock price and constantly used any opportunity to talk about the large short interest in his stock, the low float and the potential for a squeeze..
I really dont think its appropriate.. and not even sure its proper for him to get on the naked short selling bandwagon.. Heck- when OSTK first became a major momo play back in Oct/Nov he wrote a company update and spent the majority of time talking about how he was shorting AMZN and how he personally was buying the heck out of his OSTK because he knew there was the potential for a major short squeeze.. Just feels like a very fine line management needs to walk with regards to the stocks performance, and it shouldnt really be an issue to them like a day trader who watches the price every minute of the day.. Eventually if everything is 'working' eventually the market will reflect that even if it takes years.. but with all the media attention say someone like Patrick will get with his constant talk about share price, naked shorting etc etc isnt that in itself artificially helping pump the stock? and putting money into his pocket? Companies like TASR, or NVEC that always seem to come out with positive press releases at key technical levels.. do these people sit at a screen all day and watch level II like we do???? is that proper??
Hats off to Patrick and the great job hes done with OSTK.. but there has to be some limits me thinks.. Im also very much for major investigations into the practice of naked shorting, but I gotta say- I think when/if it ever fully gets exposed? people will be shocked at how little of an impact it has, and how often its done.. I think people by nature like to look for reasons they arent performing and its always 'they' took the price down or 'the market makers are evil', and the 'shorts killed us again!
I have spent alot of time over the last few months watching a pink sheet stock called CMKX.. In my opinion it has scam 101 written all over it and the size of the scam is HUGE.. The SEC halted trading, and the company now has to meet with them and decide the outcome while its trading on the greys now.. but amazes me how the same story- call your certs! theres a huge naked short position here! blah blah.. and in the end, it turns out it appears the company was printing paper- to the tune of several HUNDRED BILLION shares they dumped onto the public and even they used the word naked shorting in press releases which probably will turn out to be 100% entirely untrue..
I think if anyone is serious about cleaning up this filthy septic tank of a market there are literally dozens of better places to start then going after naked short selling.. Believe me, I have no reason to defend any scum that practices manipulation but the problem is- theres so much scum out there thats so obvious and we all see it every day and yet its accepted.. AS a tape reader, I can tell you that 9 out of 10 times I can see odd action in the tape the day before a major upgrade/downgrade or signficant news.. Its no big mystery.. OSTK for example should just continue to do what they are supposed to- run a business and try to create value which will eventually translate into higher stock prices.. Him being a spokesman for this subject makes me continue to think its more about rah rah hype and pump then it has to do with making the market a better place to be : )
Sorry Patrick.. just my opinions.. dont screw up my next delivery because of these comments!!!!
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