November 17, 2007
Well gentlemen and ladies.
Your refusal to do your job has now cost the country another viable company gone the way of the naked shorting menace.
Novastar Financial faces imminent delisting from the NYSE in a couple weeks. You have allowed the naked shorters free reign to decimate the share price into oblivion. You even allowed naked share sales amounting to over 20% of the issued shares at a time while you stood by and did nothing.
Novastar Financial only has 9 million shares issued. Here is just a single example of a 2 million share trade done naked by an opeions maker on the 17th of last month:
Here are the details from the Thursday trade: 17 oct 2007
Bid,,7.28,200,14:55:13,Chicago (Midwest) Stock Exchange
Trade,,7.30,2000000,14:55:08,Philadelphia Stock Exchange
Ask,,7.30,200,14:55:02,Chicago (Midwest) Stock Exchange
That is nearly 25% of the entire issue in a single trade
How can you allow that trade to go unreported? How can you ignore desperate pleas from shareholders to your Enforcement Division? How can you sleep at night knowing that you allow people to dump tens of millions of dollars worth of fake shares into the market of a single company neartly every day?
There are now over three times the NFI issue trading in the market naked. You stood by and allowed this to happen.