August 18, 2009
Companies are 'killed' before they ever have a chance to reach their full potential...how? Naked and short selling. Take Spongetech for an example: this company is on track to do 300 million in sales this year, yet because the stock has been manipulated to the point of exhaustion, many long term investors have thrown in the towel and departed. It is believe (by the companies investor relations contact) that there are nearly a billion naked shorts and 1.5 million actual shorts driving/holding this stock down in the teens while it should be in the dollars and have already been listed to the Nasdaq.
The belief that shorts, especially naked shorts, have little or no impact on the economy is blantantly false when you consider how many 'long' investors are driven away from potentially viable companies.