Well, if they went through the R/S mainly so they could convert all of their preferred shares (in the billions) and dump upon the market I suppose that action could seem a bit fraudulent, but I don't know if there's enough evidence to back that up with... I saw this stock mainly as a technical-play, so I didn't care too much about it really. Someone with more fundamental-insights maybe could answer the questions if they've been misleading in their intentions or similar?
I remember the CEO said something that one of the reasons for the R/S was to fight the ongoing shorting of the stock... Well, how do he motivate the issuance of billions of shares to the market to treat any eventual naked short position to his investors? If there was a short position (which he claimed it was, and therefore the need of a stock reconstruction) I'm sure they've got the opportunity to cover any eventual short-position several times over by now...
It's a shame some companies use these claims to their advantage, to be able to dump upon prospective "investors". Legal companies out there actually DO HAVE problems with naked short selling, but for a POS-CEO to use that example on his own company, in order to dump shares (which I, unfortunately, think is the case here) then it's just sad.
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