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Message: Re: Still buying more shares
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Mar 13, 2015 07:09PM

A reply to Mythology

I would like to answer some of your questions and concerns.

1. Naked shorting is the act of selling a stock that you don't own and have no intention of borrowing for delivery to the buyer.

2. As for your belief whether Cardio is naked shorted does not matter. The company in the lastest 10K stated:

"We believe, but cannot confirm, that speculators may have engaged in a practice commonly known as a “naked short” sale of our common stock, which means that certain brokers may be permitting their short selling customers to sell shares of our common stock that their customers do not own and may have failed to borrow and therefore deliver the shares sold to the purchaser of the shares. We have from time to time been included by NASDAQ on the Regulation SHO Threshold Security List, which is indicative of a significant amount of naked shorting in the stock. Because naked shorting may result in an artificial depression of our stock price, our stockholders could lose all or part of their investment in our common stock. As a result of this naked short selling, there may be a substantial number of purchasers who believe they are our stockholders, but who in fact would not be stockholders since their brokers may never have received any shares of our common stock for their account. In addition, investors who believe they are our stockholders may not have received a stock dividend to which they are entitled or may have been deprived of the right to vote some or all of their shares."

3. The naked short still exists and has not been covered in my opinion. The trading patterns of the stock confirms this.

4. Any shares of Cardio that you or any stock holder has purchased is a tradeable security whether it was purchased from a long seller, a short seller or a naked short seller.

5. As for the "10 million share" reference the stock had a 10 for 1 reverse split. In other words the stockholders positions were reduced from 10 shares to 1 share. So trading now is equivilant to a mulitiple of 10 prior to the reverse split.

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Mar 15, 2015 01:54AM
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