February 18, 2009
I was wondering if its possible to consider bringing the UPTICK Rule back in the markets. We are in a bear market where everyone is in a panic mode when it comes to the markets. There are many companies like finanicals that are being destroyed but that is because their balance sheets are taking the worse turn. However there are many small cap stocks that are taking a beating due to the market as well and even though their business is actually booming. And many small caps have significantly low volume making it easy for teh shorts to bring the stocks price down significantly scaring off investors.
For example you can look at Converted Organics (COIN). It is a new fertilizer company that takes waste and composte it to usable fertilizer that works.
However due to low volume it is being manipulated by the shorts heavily. It has a huge bid/ask spread and if you see the stock on a second to second basis you see that the asking price drops significantly for no reason.
So if there is sometihng you can do to stop the manipulation on this stock I would really appreciate it. I am sure there are many other small cap stocks that are suffering the same.