May 6, 2011
I have reason to believe that naked short selling occured in Gulf Resources, Inc. ("GFRE") between the period of 1/2011 and 5/2011. Trading volumes in comparison to normal float were far too high during that time. The stock value fell from $11 to $4 during this period on no negative news from the company. On 4/26/2011, an attack report was filed by Glaucus Research which was later found to be filled with incorrect comments, erroneous assumptions and scare verbiage. I believe that the purpose of that report was to drive the stock price further down from about $4 to $2.69, which allowed the sellers who had naked shorted to cover by buying cheaper shares that day. On the day of the report, the trading volume was about 11 million shares, or about 57% of the stock's float. Normal volumes prior to the report were usually less than 1 million shares per day.
Naked shorting appears to be running rampant throughout certain parts of the market. We absolutely need an uptick rule and full disclosure. Naked shorters are flying in the face of the SEC and do not believe you will track, investigate or follow up on their activities. I pray that you prove them wrong and that you seek damages from any individuals or firms who have partaken in this type of illegal activity.