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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation? -- Ignore unavailable to you. Want to Upgrade?


To: tyc:> who wrote (614)1/3/2006 1:28:03 PM
From: tyc:>  Respond to of 5034
 
Postscript;

Isn't it fundamental to investing to look for mis-priced securities ? Stocks whose market price doesn't reflect their true value ?



To: tyc:> who wrote (614)1/3/2006 1:32:59 PM
From: rrufff  Read Replies (1) | Respond to of 5034
 
In essence, you are saying that your estimation of value is the only "correct" one.

Do you ever "sell?" What would you do if artificial supply kept a price 1/2 of your perceived value for a period beyond your investment time frame?

I gather you are saying that you continue to buy so long as the price is lower than your perceived value. What happens if you run out of money? What happens if you need to sell or just want to diversify or trade into something you see as more undervalued.

In any event, it's a theoretical argument that, in essence, subsidizes those who short. It leads to a gambling casino mentality, as opposed to the ostensible rationale for a market, and that is to facilitate the creation of equity capital.

Furthermore, why have any rules at all? Why not let insiders just sell at any point? Why not let cabals or trusts coordinate their trading to artificially increase or decrease share price. There would be no need for the regulations and cases interpreting vague prohibitions of "manipulation."