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I work in finance and trade stocks every day. Honestly, this seems like extremely weak evidence for any kind of market manipulation. The price movements you've

I work in finance and trade stocks every day. Honestly, this seems like extremely weak evidence for any kind of market manipulation. The price movements you've seen are quite consistent with a sucky company that's going down because it's overvalued. It's generally pretty hard to short OTC stocks, so the idea that someone is out there short 10s of millions of shares is pretty far-fetched. And to what end? If the stock has gone down they're probably covering, not adding. Roughly half of OTC stocks are themselves scams, run by crooks. Is the company funding itself by continuously selling shares? Check their SEC filings for ATM offerings. If you genuinely think the fundamental value (not the share price!) of the company will be substantially higher than its current trading value, then go ahead and take advantage of the artificially low price, buy some, and be very patient and ignore the day-to-day stock price movements. If you're in this stock because you've convinced yourself some short seller has overextended themselves and will get squeezed, well... Prepare to be disappointed.

abritrum 5y ago
Thank you for the advice. This is a little special because the owners of the loan company have been fined by the SEC for precisely the naked short selling I am accusing them of (without revealing them, an unrelated case is https://www.thestreet.com/investing/stocks/sec-charges-filed-in-sedona-case-10277405 https://www.thestreet.com/investing/stocks/sec-charges-filed...). Naked shorting a stock to 0 and claiming tax benefits is what some of these toxic lenders do. I am invested only in the amount I can afford to lose. But I would like to not lose even that :-) so will heed your advice.
- ProjectArcturis 5y ago
  Does the stock you like have a death-spiral PIPE deal like the one in the article? If so, sell. You're correct that someone is pounding the stock down, but what you're missing is that management is helping them do that by printing new shares and selling to the PIPE lender at a discount. It's just a way for management to pay their own salaries by diluting the existing shareholders. There will be no reckoning. What they're doing is scummy but legal. The selling will only stop when no outsiders will buy any shares at any price. Well, legal as long as they don't short ahead of time. But either way, it's a terrible investment for you.
  - abritrum 5y ago
    They had a death spiral PIPE deal, but they paid off the loan. The company was (edited: almost) shorted to death in the months during they had the loan. Appreciate the advice.

abritrum 5y ago

Thank you for the advice. This is a little special because the owners of the loan company have been fined by the SEC for precisely the naked short selling I am accusing them of (without revealing them, an unrelated case is https://www.thestreet.com/investing/stocks/sec-charges-filed-in-sedona-case-10277405 https://www.thestreet.com/investing/stocks/sec-charges-filed...). Naked shorting a stock to 0 and claiming tax benefits is what some of these toxic lenders do. I am invested only in the amount I can afford to lose. But I would like to not lose even that :-) so will heed your advice.

ProjectArcturis 5y ago
Does the stock you like have a death-spiral PIPE deal like the one in the article? If so, sell. You're correct that someone is pounding the stock down, but what you're missing is that management is helping them do that by printing new shares and selling to the PIPE lender at a discount. It's just a way for management to pay their own salaries by diluting the existing shareholders. There will be no reckoning. What they're doing is scummy but legal. The selling will only stop when no outsiders will buy any shares at any price. Well, legal as long as they don't short ahead of time. But either way, it's a terrible investment for you.
- abritrum 5y ago
  They had a death spiral PIPE deal, but they paid off the loan. The company was (edited: almost) shorted to death in the months during they had the loan. Appreciate the advice.