Stockcoach1 wrote: adamchess wrote: Not too comforting. Hopefully, IIROC is doing something behind the scenes in Canada. They have received many complaints about the recent short-selling and hedge funds have likely received at least a slap on the wrists regarding their participation of short-selling abuses across the markets, here and in the USA.
When reading this American article, it is important to know, that naked shorting is against the law in Canada. Only regular shorting is permitted in Canada, and only on cash margin accounts. You can not short or borrow shares from any locked in accounts, such as RRSP, RIFF, LIRA or TFSA's.
Naked shorting is a product of the US, since the George Bush era. This is the two edged sword often talked about when you get a US listing. It can do wonders for a company when in a Bull run and destroy a company in a Bear run or an attack of a sector.
Unfortunately IIROC (INVESTMENT INDUSTRY REGULATORY ORGANIZATION OF CANADA) has no power in the US to change or investigate naked shorting. No amount of complaining to IIROC will make a difference in naked shorting. They only regulate Canada and as I said Naked Shorting is not an issue here. If you want changes to the US system you will need to file complains with Financial Industry Regulatory Authority (FINRA) in the U.S. Good luck. You will need it, as now you're entering the Dark Side.
It's easier just to pick stocks that don't play in that sandbox or have a lower risk of attack,or a better risk of surviving one.
As you've read in the article, the targets are usually companies that have very little or no revenue and depend on raising money through share sale, usually to develop one product. When attacked their shares fall to pennies they don't generate cash to pay their debt and expenses and this eventually bankrupts the company.
Luckily CXR is not in that position and can not be destroyed by that play book. CXR is not trying to develop one drug and is not wholly dependant on share price to pay their debt. CXR has a fully proven line of 200+ drugs that will generate large sums of cash to service that debt. This will enable CXR to eventually regain it's share value and at that point use it again to their advantage. In the mean time we wait.