Gene, Market Makers violating Rule 3350 on Naked Shorting...
can profit very handsomely in several possible ways... Take NAIB for instance and it trading pattern in the last month:
NAIB Particulars: Fort Lauderdale... Phone: 954-484 1490... Compliance Officer: Robert Gaeta... rgaeta@naib.com... SEVU trades: March 16,500 shares... April 758,000 shares, the most of any MM for that month...
chart.yahoo.com
You can clearly follow what the 758,000 shares traded by NAIB, mostly on the Offer, have done to the price of the stock, from $1.50 to 66 cents... Yet, I can see they're trying to get lower, using the same technique, except that SEC and NASD, who have been alerted by several concerned investors, are now watching... If they start covering in the 55/65 cents range, they won't have done too badly for themselves, assuming they don't get nabbed and forced to disgorge...
BTW, it's likely that a known Group of shorters is behind the whole scenario... They don't borrow shares to short but use the accounts of friendly MM's to "naked short" the stocks... It's highly illegal, as Fiero Brothers has recently found out...
Message 15713766
Message 15712114
JMHO, F. Goelo + + + |
