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Gold/Mining/Energy : Casavant Mining Kimberlite International (CMKM)
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To: rrufff who wrote (2071)5/18/2006 8:35:09 AM
From: StockDung  Read Replies (1) of 2595
 
Shares of Document Security Systems Hit New 52-Week Low, Company Eyes Illegal Short Selling

ROCHESTER, N.Y. (AP) -- Document Security Systems Inc., which makes anti-counterfeiting technology, said Wednesday illegal stock manipulation could be behind the recent decline in its share price.
The company's shares hit a new 52-week low, closing down $1.41, or 15 percent, at $8.01 on the American Stock Exchange, after dropping as low as $7.50 earlier in the day. Over the past week, shares traded between $7.80 and $15.15.


Document Security Systems officials said they believe there is no business related reason for the drop and asked regulators to determine if "naked short selling" took place.

"Our business has never been in a better position to capitalize on the security technologies we own," Patrick White, the company's chairman, president chief executive, said in a statement.

"Our opportunities and prospects are more significant and viable than at any time in our short history. We believe that uncovered short sellers may be driving the decline in our stock price."

Naked short selling is an illegal practice in which traders sell a stock short without first borrowing the shares that are supposed to be delivered to the buyer.

The shares sold are never delivered by the seller, which enables violators to make money on stock they never owned. The practice tends to lower a company's share price by artificially creating more sellers than buyers.

The Securities and Exchange Commission banned naked short selling in October 2003 to protect thinly traded stocks that could be targeted by traders or hedge funds engaging in the practice.
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