AgFeed (FEED) is a small cap Chinese company that today took an unusual step. It's stock is up 17%. Now someone might say this is due to their reiterating guidance but as we have seen in this market that means nothing. They bought 4 pig farms - again I find that highly doubtful for a pop of that magnitude. But they put the naked short sellers on notice, and as those locusts scrambled away the stock is popping. It is quite a sad statement really - again I don't mind, nor should any investor mind, when they make a bad stock selection or bad news comes out and their stock drops. But as I watch some of these stocks on the regulation SHO list sit hammered for months on end, and then I watch when a company actually drops a warning shot against the naked short sellers - to see how violently the stock reacts - this shows you how 'rigged' things are in the small cap world especially. (although naked short selling can be done anywhere to any stock - it affects smaller names disproportionally) If you don't have institutional support on the long side you are just a plaything for certain "pools of capital".

I usually don't bother with these things and frankly have found most companies who comment on this sort of thing to be making excuses for bad execution. And maybe I am making excuses but to see some of these small companies shoot lights out, and continuously retract in price makes one scratch their head. And why is a company like this gaining 1/5th of their market cap almost instantly just by saying these sort of statements?

• AgFeed has received numerous calls from concerned shareholders over the recent stock activity. AgFeed is not aware of any negative events that could impact its fundamental business or financial projections.
  
• AgFeed has noticed however significant discrepancies between the shares that appear to be listed the electronic DTC system and the shares that actually exist on the shareholder records held by AgFeed's transfer agent -- potentially as a result of heavy naked short selling in FEED.