Kemo,

A naked short is when a shorter sells shares that are not there in the first place. When someone buys these shares, it takes 1 plus 3 days for the trade to settle. On the 4th day, the buyer of naked short shares will check his account and will see that his shares he bought "failed to be delivered". The buyer will get his money back and it will show as a failed trade. Some times because of technical problems, a trade will fail that might not be a naked short trade at all. There are "failure to deliver " lists that shows if there is consistent failures to deliver over lets say a month of trading, that there is most likely naked shorting going on.

The naked shorters just keep selling shares because it takes 4 days to find this out. They can knock a stock down 20% in 4 days easy. At the end of 4 days, if they are brazen enough, they will sell more and most likely were selling more the whole time in the 4 days.They can keep creating shares out of thin air to sell, continuously driving the sp down. Some do the naked shorting in conjunction with their legal shorting, adding increased profit margins. To buy these phantom shares being sold, helps short term, by not letting the sp decline too much, but it does not correct the problem. Because at the end of 4 days, the buyers trade was a failed to deliver by the seller, and the buyer is sitting there without his shares, but does have his money.

Its very important that a naked short position is dealt with by the Securities commission, because really it cant be fought by trying to buy the shares he is fabricating, because he is one step ahead of you on the ladder downward and has control of the downward trend.

We dont have to worry because I beleive an investigation is already in progress by IIROC. Info is being gathered and being sent.

If anyone here has ever bought shares of SLI and found out 4 days later that their trade didn,t go through, please let us know! This may be evidence of naked shorting that can be used by IIROC.

I will add this example of how shareholders of this company were victims of this type of crime. It was posted here before, but some may have missed it.

http://satwavespro.com/2011/04/25/deer-consumer-products-suing-seeking-alpha-in-naked-short-sale-scheme/

DON,T ANYONE BE AFRAID OF BUYING MORE SHARES AT THESE PRICES, if you think it is a bargain. If the trade fails, YOU DO NOT LOSE YOUR MONEY, it goes back into your account. The stock price should be turning around and heading up shortly if it has been manipulated.