As usual, the issue of naked short selling and short selling is conflated. Everyone in prison is guilty and everyone who shorts, naked or not is providing a public service. I have no doubt this is what those who have gained a great deal by naked shorts tell themselves. It's called relativism.
Sprstpd, I hear ya. No dispect to anyone but this is how it usually proceeds, insults and broken down analogies and I've been called a short. Eh. Price one pays for insight. Naked shorting, real problems with debt covenants triggered by stock price changes, everything else I personally stay away from. Not healthy to get emotionally involved with a stock or a negative value.
In just one day on YouTube: http://www.youtube.com/watch?v=7fcre8P2UUY&eurl=http://www.faulkingt Here is what has happened in only 1 day: #13 - Most Viewed (Today) - News & Politics - All #11 - Most Viewed (Today) - News & Politics - English #84 - Most Viewed (This Week) - News & Politics - All #13 - Top Rated (Today) - News & Politics - All #13 - Top Rated (Today) - News & Politics - English #62 - Top Rated (This Week) - News & Politics - All #52 - Most Discussed (Today) - News & Politics - All #5 - Top Favorites (Today) - News & Politics - All #5 - Top Favorites (Today) - News & Politics - English #38 - Top Favorites (This Week) - News & Politics - All #33 - Top Favorites (This Week) - News & Politics - English #40 - Most Linked (Today) - News & Politics - All For such an obscure subject, pretty good traffic.
Some of the statements I've read on this thread rank right up there with that amazing oxymoron "price improvement" that the specialists are helping everyone out with.... A company with real fundamental value will reach it's correct market price in spite of millions upon millions of phantom shares? Huh???
Yes. If the naked shorters are wrong in their analysis of a company's fundamental worth, they will inevitably be taken to the cleaners.
Remember Sedona from the Bloomberg show? Real company, survived only because a large shareholder came in and kept the door open. The company survives, AND THEY STILL NAKED SHORT THE STOCK ON A DAILY BASIS. There are some2000 others who didn't make it. The only way Sedona did make it was a fellow by the name of Herb Sargent was on the board. In 2001, he was over 80. He had been a Commissioner at the SEC. He walkied in the SEC one day and said, "what the hell is going on?" They knew everytime they made an announcement, like a parntership w/IBM, the stock fell. EVERY SINGLE TIME!!!!!! The people at the SEC had no idea what Sedona was talking out. It was a two day affair to teach them. There are two civil actions, one closed, and the bad guys were fined a whole million dollars. Sedona is the poster boy of all this. Overstock is much late to the party. They have destroyed hundreds of companies for over ten years, pocketing hundreds of millions of our dollars, laundering money, killing people, bribing officials, the press, the works. Sedona was burned by guys at Refco. Today, at .30, you can "borrow" stock at IB Canada. Right. The chairman has 43 million in a vault, but you can hypothecate Sedona. Why would you want to? Clean money, Zero? Partnerships with FiServ? I don't think so. Bad companies. Many out there. this kind of treatment? I'd say you decide, but some of you are just not that experienced. In the next post, read the complaint. It will tell you who you are dealing with. By the way. The officials of Sedona were threatened with death. See, "Naked and Confused", Feb 12 Forbes Magazine.
SEC short target, brother face criminal charges in Sedona case Canada StockWatch By Brent Mudry December 29, 2003 Two American shortsellers face criminal charges in the first major U.S. prosecution of naked shorting through a Vancouver brokerage in a death spiral financing. A criminal complaint naming Thomas Badian and his younger brother Andreas Badian was unsealed Dec. 4 in United States District Court for the Southern District of New York. Both face one count of conspiracy to commit securities fraud. Andreas Badian was arrested that same day by U.S. postal inspectors and released on $2-million bail, with $1.5-million cash, and ordered to surrender his travel documents and not to leave the U.S. (All figures are in U.S. dollars.) Thomas Badian remains at large and his current whereabouts are unknown. Both remain presumed innocent unless proven guilty beyond reasonable doubt at a future trial. Both men, who worked for New York-based Rhino Advisors Inc., allegedly used offshore accounts in a death-spiral financing of Sedona Corp. The criminal case comes nine months after the United States Securities and Exchange Commission jointly fined Rhino and Thomas Badian $1-million in a consent settlement of the regulator's civil case in February. The SEC defendants neither admitted nor denied any of the regulator's allegations. The SEC notes that Rhino represented secretive offshore client Amro International S.A., which was not named as a defendant. Despite its copycat name, Amro International S.A. is believed totally unrelated to ABN Amro International, the respected European-based international finance group. Neither the SEC case nor the criminal prosecution identify which Vancouver brokerage was used as a short-selling conduit in the Rhino scheme.