April 26, 2007
I hope the SEC will review and revise its regulations and policy in relation to oversight of shorting and especially naked shorting and enforcement of covering requirements. As a lawyer, I am concerned about the distortion of stock prices and the unfair impact this has on investors who are influenced into making poor decions.
As a medical psychologist I am concerned especially about the incessant shorting of biotechs which can hinder and/or prevent raising capital for R and D.
As a survivor of cancer and chemotherapy, and an investor who was recently inspired to go long on Dendreon (DNDN) I request you examine the shorting of Dendreon in particular, and biotechs generally. In relation to DNDN, shorting appears to be at appallingly high levels. Historically, the company has had to drop research on its life saving cancer treatment "Neuvenge" largely as a result of the hammering its stock has taken from shorts. (We know it is likely to be FDA approved as its similar treatment for Prostate Cancer is about to get the FDA nod and to revolutionize cancer treatment.)
Sadly, this is not uncommon in relation to biotechs.
People are dying who might otherwise live - the consequences of unregulated shorting and share counterfeiting (if I might use this phrase) can be lethal -and I am confident that with your help, the market can rise above greed and ensure life saving treatments are not lost in the pursuit of unfeeling profits.