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

To: ravenseye who wrote (2548)	6/23/2007 1:56:41 PM
From: Savant	Read Replies (2) \| Respond to of 5034

Break Dance.. Nothing to prohibit them from shorting prior to the restricted period, nor from pumping it up after, or prior, and then shorting...that I noticed, at any rate. The pump prior, then doing the deal (usually @ a discount to market), then shorting after the deal, especially with the 'convertible death spiral' financings, is particularly insidious. As to the separate accounts...oh, please... And then there's the 'bona fide purchase' clause..does it mention 'like amounts' or have any size requirement?? open door policy, imho "In order to ensure that the rule does not unduly limit the pool of possible purchasers in follow on and secondary offerings, *it includes a provision to allow a restricted period short seller to participate in an offering if the seller makes a bona fide purchase prior to pricing an offering. Moreover, the amended rule also includes exceptions concerning investment companies and certain other entities that make separate trading and investment decisions. Thus, for example, the rule does not prevent one account from purchasing in an offering even though a related account sold short during the restricted period where the accounts were not coordinating their trading or sharing profits." Oh, let's see...group one shorts it down, group two takes the offering at advantageous prices due to the shorting, buys more after the take down, pumping the price, and then sells, sells, sells, thereby making their bones, and subsequently group one covers..or alternatively, shorts, shorts, shorts some more...and then covers..group two could aid and abet with the shorting after selling their initial position... These snakes have more wiggles than a bowl full of Jello in a 8 point earthquake. As for the 'coordinating trading' or 'sharing profits' hmm, and the oversight is? As for the sharing of profits..what kind of 'entity' would have two accounts that wouldn't bring the profits home to roost in the parent entity..could be some, but most likely the profits would find their masters. The rules might be better, if the 'rulers' didn't have all of that helpful input from the 'subjects'. Of course, the SEC 'rulers' wouldn't have those cushey jobs awaiting them, after their term of government employment is over, if they ever put some teeth in the rules.