I just got off the phone with an ETRADE rep and she said when someone makes a trade with them, it is called a Book Entry transaction to make sure the trades aren't counterfeit. Their ass is on the line and they are also insured against fraud. All my shares I have a legal and legit.

As far as naking shorting....people can legally short a stock, however, if the stock takes off, they're liable for the money the stock goes up to. If it goes down, they make money.

My position is...why would anyone short SFMI when it is a penny stock and there is very little volume. How much money can you make?

My concern comes from lack of urgency by management of the share price drop. Do they care?