September 23, 2005
Mr. Katz,
I request you accept the Pink Sheet Chairman’s recommendations: http://sec.gov/rules/petitions/petn4-500.pdf
The problem is simple: anyone with a large enough account, and with the ability, can short a penny stock endlessly until interest in the stock stops and the shorters can cover at significantly low prices (usually 50% or more lower than the short price.) Adding insult to injury, the shorters are usually those who quote the price for the stock, thus making manipulation rampant. More frustrating is that stocks with no volume are not the ones that are shorted, but stocks that get a sudden flood of buys. The net result is that the theory of supply and demand is upside down, and the penny market becomes nothing more but a game. While the shorters make 50+% profits in one to two days, we struggle from one stock to the next hoping not to fall off the inevitable cliff.
I want to invest in emerging companies that show potential, prove themselves, and respect shareholders. I will support anything that will help me with my investment style, which includes the Pink Sheet Chairman’s recommendations. Don’t misunderstand me, if someone can short legally and profit, kudos to him/her.