February 19, 2010
I am a veteran and new investor and for the past year, prior to investing, I have read a great deal of material about investing. I invested $10,000 in STEC, which is nothing to most investors, but is great deal of money to me, and have seen it "stolen" from me as a result of relentless naked shorting in STEC. I have seen evidence of this naked shorting vis-a-vis large numbers of reported "failure to deliver" shares in STEC, coupled with huge short interest in the stock. How is it that short interest can approach 50% of the float at the same time that institutional ownership and mutual fund ownership, according to Yahoo Finance, is 174% of the float? In addition, how can such a relatively low float stock, which trades four or five million shares daily, have two million plus shares sold short day after day after day? In hindsight, I have learned that low float stocks such as STEC are much more easily manipulated than larger float stocks, but I believe that float large or small, it is not right to allow naked shorting. This blatant manipulation must stop.
Thank you,
Wayne Levasseur