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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?
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To: dvdw© who wrote (3949)11/2/2008 9:10:27 PM
From: Hawkmoon3 Recommendations   of 5034
 
BS.. (to the authors of that story). They miss the entire point.

Porsche accumulated options and shares in the open markets, or via the same private transactions used by many hedge funds to the point where only 5.8% of the public float was remaining. And the market price NEVER reflected this reality.

The fact that suddenly all of the shares that banks/brokers fraudulently loaned to shorters suddenly blew up in the face of the Hedgies is not Porsche's responsibility. It's the responsibility of the market makers and specialists to ascertain what the appropriate price should be based upon available demand of uncommitted stock and options.

If anything, it's a glaring indictment of the massive naked short-selling that occurs to the benefit of the banks that fraudulently loan out shares that are not deliverable.

It's further proof of what happens in more traditional derivatives markets when options are sold to a party (Porsche) without having the inventory to supply them when they are called.

I hope a few more of these types of squeezes occur in order to bring some sensibility to these markets. In fact, I hope one occurs here in the US. Let it scare the begeezus out of the shorts and stop this counterfeiting of public stock.

Hawk
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