Naked Shorting-Hedge Fund & Market Maker manipulation? Message Board

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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?

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From: pcyhuang	4/16/2008 1:32:45 AM
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Naked Shorting and Pink-Sheet Listing Naked Shorting and Pink Sheet Listing After oberserving the details of these two enclosed charts, I have concluded that Pink-Sheet Listing may be the saviour for many stocks under the threat of heavy naked shorting by the option market makers. Since no new put options may be opened aganst a Pink-Sheet listed stocks, we can expect the stock to perform bettter relative to the market after its delisting from the New York Stock Exchange. Now let us examine the performance of NOVS before and after being delisted from the New York Stock Exchange. The first chart shows how the put/call open interest ratio on NOVS reached its high six-months ago at around the 2.33 level with the NOVS/$SPX ratio around .006. Subsequently beccause of heavy naked shorting and the threat of delisting from the NYSE, the stock was driven to a low of $1.12, with the corresponding NOVS/$SPX ratio down to .0005, decreased by 1000%. After its listing on the Pink Sheet in Jan. 2008, and because of absense of further naked shorting, the ratio of NOVS/$SPX has since rebounced by 300% to the .0015 level. pcyhuang

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