Interesting post from Yahoo
posted on
May 23, 2014 10:39AM
"VirnetX Takes Dead Aim At Manipulators, Reverse Conversions and Naked Shorting:
During the meeting, one of the first items discussed was something many investors are fully aware of - reverse conversions and naked shorting using the market makers exemption to create air shares to control the share price. CEO Kendall Larson stated that there really are 60M shares outstanding, above the roughly authorized 52M shares currently available. The difference, 8M shares, is being used to manipulate the share price.
VirnetX introduced the Shareholder Intelligence System, which will allow the company to track the manipulation and report directly to the compliance departments of the firms in play. Overall, this system allows for several key features:
Tracks share movement
Identifies fails to deliver (often associated with naked short selling)
Identifies and tracks the parties buying and selling, "Behind The Street Name" or firm name
Provides analysis of peer group buying and selling
Management stated that they are aware of the firms manipulating the share price, and have taken this action as a step to end the manipulation of its share price - and this illegal activity." Less
Sentiment: Strong Buy