Comment Text:
i do not have inside information. rather the shortsellers have all the inside information about their strategy.
if you look at recent market activity, you will see that over 25+ million shares were traded the first day after the FDA approval.
the float was 24.5 million shares.
approval is good news, but the shorts were shorting against the demand.
there were not enough shares available to borrow to cover that kind of a short.
you will see that the share volume and the shares reported to FINRA do not add up.
it is not OK to dump imaginary shares on the market to lower the price.
it is not OK to drive companies out of business.
it is not OK to owe people shares and not deliver on settlement.
it is not OK to lower the price daily 5-10% by selling imaginary shares.
shortsellers care about PRICE. they don't care about other stuff. they sell on bad news or good news.
the shortsellers THINK that DSCO is now diluting stock and that they can cover with those shares. they also want to reduce the price so that people receiving those shares will sell, so that DSCO will not get the financing they want. this was the whole point to drop the price in afterhours.
the shortsellers have more $ than DSCO.
they don't want these drugs on the market.
they want the company to lose.
they want the investors to lose.
they only want more $ in their pocket.
the whole thing is artificial.
when is DSCO going to let out those shares? who knows. but shortsellers are already wanting those shares so that they can cover their short.
in such an environment, DSCO has to craft a strategy against these shortselling trading strategies IN ORDER TO SURVIVE.
many posts by shortsellers on the finance yahoo messageboard for DSCO threaten to take this stock down to $1.50.
and they will. THEY CONTROL PRICE.
this is not a stock market. it is just a capital outflow, from the investors to the shortsellers. shortsellers are not investors. they take $ out of the market. this is what "liquidity" does. it takes $ out of the market, usually returning imaginary stock certificates.
imaginary stock certificates often do not return shares to the market either. many shortsellers buy someone else's shorted shares "to cover" and this does not cover, if the first shortseller has not covered. if a shortsellers submits counterfeit stock certificates "to cover", this does not cover the shortselling either. shortsellers are risk-averse and have shifted their risk to their brokers, the clearinghouse, and the investors' brokers.
if shortsellers do not get the price that they want, they churn (buy and sell to change their duedates). Churning is keeping the price of a stock at a certain level and buying and selling mostly to each other in order to change the duedate. shortsellers have multiple accounts with different brokerages.
if you have a faucet going full blast ALL of the time, investors do not have the opportunity to make $. they can drive the company out of business by making the company appear that they are not a going concern. they can dry up financing. these are all things that they have done and they don't care if the company is making a worthwhile product. in the case of DSCO, they don't care if children might die if they don't get access to this company's products.
stock market rules are for the stupid investors. the brokers obviously don't care if you catch them because they feel immune to any prosecution, any correction, any fine. you will have to take their license to trade to make a difference because they don't think you can stop this. shortsellers tell investors that the SEC has no teeth. i hope that isn't true. but this must be stopped or else you will only have crooks in the market.
it should actually be easy to catch the people who are doing it, the brokers who allow it. you have a finite period of time to examine. you can find blogs telling people to short. you have the options market, which is also involved with DSCO.
http://caps.fool.com/Blogs/how-are-you-playing-dsco/717920
http://www.smbtraining.com/blog/march-7th-am-idea
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_D/threadview?m=tm &bn=5493&tid=190375&mid=190375&tof=8&rt=1&frt=2&off=1
this guy refers to his blog on yahoo finance because he is:
1) trying to influence longs to sell cheaply
2) trying to get others to short so that his options position improves.
http://www.biorunup.com/articles/20120309?utm_source=twitterfeed &utm_medium=twitter
shortsellers love algorithm trading, since shortsellers control the trend. they love HFT/high frequency trading for the same thing. the puter systems do all the work for the shorts so the shortsellers can:
1) sell into the bid, either long or short
2) get on the bid and just drop the price, no matter if there are more shares on the bid than the ask. the game when buying in is trying to see how many pennies you can go lower so that the ask can drop the bid.
3) sometimes shortsellers put up a wall of many shares so that they can sell into the bid as in 1) or drop the bid as in 2). the wall protects the price and keeps it lower.
if the longs don't sell sufficient shares, they just keep on doing this, churning, then dropping the price.
they love price targets, where someone sets a stop loss. those are guaranteed price-lowering positions. the marketmaker and broker can see them and use that information accordingly. they love people who buy on margin. why do you think they dropped the price down here, from the high on the day of FDA approval? it is because they want the brokers to sell out of the position.
maybe shortselling is just bound to be corrupt. maybe it should be illegal to sell short.
you will have to do something to TRADERS, BROKERS, CLEARINGHOUSES and AUDITORS. this is a fantastic conspiracy, a grand conspiracy. this shortselling thing is global. economic systems cannot allow shortselling to be the dominant force in the economy. are we under the government of goldman sachs? i am being figurative here, but if shortsellers control the $ of the world, we certainly have a new unelected government.
if $ is power and all the crooks have the $, then who do you think will be in charge?
http://www.huffingtonpost.com/ellen-brown/short-sellers-investors_b_985701.html
explanation about shortselling.
http://www.youtube.com/watch?v=aC19fEqR5bA &feature=player_embedded
trader interview on BBC
this is not a stock market. it is a bunch of people/companies who act as criminals, taking $ from the investing public and putting it in their own pocket.
suzanne hamlet shatto
i am cc'ing discovery labs, SEC, CFTC also.
On Sun, Mar 18, 2012 at 10:21 AM, Clem, Pat wrote:
Dear Ms. Shatto:
This is to acknowledge that the Market Regulation Department of the Financial Industry Regulatory Authority (FINRA) received the E-mail you sent on 3/7/12 regarding your concern about the trading activity, particularly short sale activity, in Discovery Laboratories, Inc. (DSCO) on that date. Please advise if you have any direct first-hand knowledge of the activity described in your correspondence or any other additional information to support your allegations. In any event, we will use the information you provided regarding DSCO in the scope of our regulatory programs designed to review for member firm and registered representative compliance with federal securities laws and FINRA rules. While the reviews conducted by the Market Regulation Department are confidential and non-public, the staff may contact you if deemed appropriate as it carries out its responsibilities with regard to your complaint.
Thank you for bringing this matter to our attention.
Sincerely,
Patricia A. Clem
Assistant Director
Market Regulation
FINRA
9509 Key West Avenue
Rockville, MD 20850
(240) 386-5105
[email protected]
www.finra.org
Confidentiality Notice: This email, including attachments, may include non-public, proprietary, confidential or legally privileged information. If you are not an intended recipient or an authorized agent of an intended recipient, you are hereby notified that any dissemination, distribution or copying of the information contained in or transmitted with this e-mail is unauthorized and strictly prohibited. If you have received this email in error, please notify the sender by replying to this message and permanently delete this e-mail, its attachments, and any copies of it immediately. You should not retain, copy or use this e-mail or any attachment for any purpose, nor disclose all or any part of the contents to any other person. Thank you
