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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?
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To: Hawkmoon who wrote (3537)7/16/2008 6:38:02 AM
From: rrufff   of 5034
 
You are on to it. Despite the whiney protests that your plan is too difficult to implement, the real excuse, as with all "we can't let the public know," stuff is too limit info to the insiders in the industry. We have to protect the broker dealers, who have to protect the big pools of money. Wasn't that the excuse given for the grandfather joke? We don't want short squeezes, but they can destroy companies by counterfeiting shares. Their scam is ok.

As far as the uptick rule goes, I think it's of less importance because of decimalization than the MM manipulation, and offshore-off book route to manipulative shorting.

Anyone who has tried to short through online brokers knows that once you get turned down on the equity, all you have to do is go to the options and write a call somewhere in the money to have the same play. Many take the cash from the naked call and use it to buy puts to really create leverage in killing the share price. I first became aware of this from the bragging post many years ago by a notorious posting hedge fund manager, the ultimate "paid basher." He personally was destroying a stock and he was damn proud of it. He posted it, bragged about the strategy. It didn't matter that the company provided a service that would have been ahead of its time. It was admittedly a strategy of creating fear in longs and boldness in his followers, such that it would "create volume" for him and his crew to cover. Strangely enough the post was later removed.
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