Pegasus Wireless to Electively De-Register from US, Going to Europe?

Tony1965 · Sun, 11-05-2006, 01:39 PM

Pegasus Wireless (PGWC.OB) voluntarily delisted from the NASDAQ recently because the CEO claimed there were as many as 30 million "phantom" shares in the market as a result of a bear raid that took the share price from $19 to 50 cents. They went to the Pink Sheets for one week and moved to the NASDAQ OTC BB on Friday. They are now looking for a new exchange. Does naked short selling occur on the London AIM exchange? There are rumors that the company might go to the London exchange. Thanks in advance.

Here are a few DD links:

Attack On Pegasus - Forbes.com

Pegasus Wireless Corporation Commences Trading on OTC Bulletin Board: Financial News - Yahoo! Finance

PGWC.OB: Headlines for PEGASUS WIRELESS NV - Yahoo! Finance

Small Cap Copy: Peter and Paul

Small Cap Copy: Short-sale Side-Step

Pegasus Offering Apple iTV Clone, Now

Thanks,

Tony

Canestsal · Sun, 11-05-2006, 01:56 PM

I have noticed that naked shorting is rampant on the pinks and otcbb. In fact, I think it has become so common place, that the SEC may have to impose stricter laws and penalties to curb it. A great example of a thinly traded stock manipulated by naked short-selling:

AXGJ - SharpCharts 2 from StockCharts.com

Although I think naked short-selling occurs on every exchange, I doubt it occurs to the frequency as it does on the otcbb and pinks. IMHO, the otcbb and pinks have very lax regulations and many thinly traded stocks which allow naked shorting, stock manipulation, and trading fraud to occur.

A good topic, imho.

Josh

Tony1965 · Sun, 11-05-2006, 02:08 PM

I forgot to ask if this company does go to the London AIM Exchange and has an ADR on the OTC BB or Pink Sheets, will it still be susceptible to naked short selling?

I can see why the short sellers took it down from $19, but the company is now profitable and had $25 million in sales in Q2. It's a nice collection of companies that appears to be gift-wrapped for Apple or Microsoft to buy but the insiders bought shares at much higher prices than 70 cents so I don't think that will happen any time soon.

Track insider buy and sell

PEGASUS WIRELESS CORPORATION

Here's a good site to read about the push to stop naked short selling:

The Sanity Check > Home

Thanks,

Tony