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"Front & Center" Author, Burrell, Predicts US Companies/Investors Going Foreign


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Guest ValueCarl

US Public Companies Will Exit US Markets For Foreign Exchange Listings Because of Naked Short Selling Manipulation

From “Front and Center”, By Bud Burrell

This week, the NY Times released an article that should send shock waves into our public markets. In very curt form, the article chronicles the many abuses of our public companies by short selling manipulators, particularly through naked short selling and regular and derivative based synthetic shorting. By implication, the article recites the sheer embarrassing ineffectiveness of our regulators, who are engaged in a pattern of systematic conflicts of interest with revolving doors that are a major disgrace to our own Government.

 

Note the article below:

 

 

Live Trading News International 

Last Update: August 23, 2010 09:43 ET

Naked Short Selling Dominates the Markets

 

Naked Short Selling now dominates the OTC markets, having been blamed by most for monument collapses during the financial crisis, the SEC attempted to, but failed to control the process.

Naked Short Sellers focus in companies they feel are “destroyable” normally this is a company that uses their market to raise capital, the case of many Pink Sheet and OTC businesses, so it is no surprise to see that naked shorting is at an all time high.

The Naked Short Sellers move in removing any chance of small companies gaining access to any form of reasonable funding by selling the stock short, effectively increasing the float, and using the basic rules of supply and demand changing the very nature of the companys market and market price.

Many of the positive runs forward of small companies in the last 6 months have been destroyed by short sellers, when in the past the small companies could have taken advantage of improved market valuation, raised funds and moved their business models to the next level.

The chances of a small company now making it out of the woods on to a main board are limited at best.

Naked short selling was clearly the end of great companies like Lehman and Bear Stearns.

If you have any doubts you should take a look at sites like:

 

http://failstodeliver.com/

And I am not alone in this opinion

US Companies are going to consider leaving the US with the wholesale abuse.

 

Foreign exchanges with firm 3 day settlement or improved DVP procedures challenging manipulators are going to be rewarded with US listings from US listed companies withdrawing from US markets. The conventional wisdom that only small companies without merit would be challenged has been proven grotesquely false.

 

If you could know that your purchase and sales would be cleared and settled in real time with no manipulation risk, would you settle for less? If US companies leave the US markets, how far away will it be before US investors do the same. US Courts have ruled that when an investor owns a share of stock, it does not reflect an actual equity ownership interest, but rather nothing more than a securities entitlement. That is the kind of arrogant disgrace that will drive US investors to give up on US brokers and US exchanges.

 

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