Geoff,

I always appreciate your well thought out and level-headed posts.

I do, however, question the accuracy of your statement - "I also don't see the relevance of any arguments pertaining to short selling, since there has been no reason to suggest that VYTC is being shorted."

SEC rules require that short positions be reported for all OTC stocks on a semi-monthly basis. Data can be viewed at: http://www.otcbb.com/asp/OTCE_Short_...

The following is a listing of reported short positions for VYTC from April through July. I believe you will see that there is sufficient evidence, documented by the SEC, that there is short selling of Vyta Corp shares, and that the short positions are not closing out. There is sufficient motivation on the part of those holding the short position to encourage further erosion of share price. There is, of course, no way to determine which (if any) posters on Agora hold a short position in the stock, unless they, like you, elect to provide full disclosure. Regardless, here is documented evidence of shortselling.

Date # shares short position

7/31/08 - 24,456

7/15/08 - 24,799

6/30/08 - 22,714

6/13/08 - 32,645

5/30/08 - 21,583

5/15/08 - 8,892

4/30/08 - 24.411

4/15/08 - 25.762

The DTCC reports that at least 5% of all short sales fail to deliver! That is a huge percentage given that we are not talking about just OTC stocks. There is no way to determine exactly how many shares are shorted and fail to deliver in any given stock because the DTC does not consider it a problem.

However, in a recent case involving Coil Tubing Technology (CTBG) and a dividend, the "problem" re-emerged. The Company has 40M shares outstanding, yet the DTC had book entries for 68M shares. That means that 28M shares were shorts sales that failed to deliver. That created a problem for the distribution of the dividend.

The DTC in its infinite wisdom and utilizing its frequently used, "it's not OUR problem" approach, suggested that rather than forcing the naked short sellers to cover their position and also pay out the dividend, that the company dilute the dividends and distribute the dividends to the illegal naked short shares as well as the legitimate shares.

This is the ultimate in investor abuse, in my opinion.

It seems that Coil Tubing Technology agrees, and has joined the ranks of those filing suit against the DTCC, et. al.

http://www.reuters.com/article/press...

FWIW.

-zties