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Oh my talk about an awakening. For the next 6 years the market is going to fair very well. SO between now and 2006-2008 it is going to be great and 2011, which is the 11 year reset and then boom down it goes.
Great site and curve you found Bird. Interesting observation and techicnal anaysis.
:=) Gary Swancey
Bird ... I am on to something and the character assassination has already begun. Keep a clean eye for the clutter that will arrive. Been through this several times.
Now as far as shorting the street ... absolutely because that is what is in the brokers long position PLUS 144 not in the street name. Also I have always stated their are brokers on line posting to capitalize on their shorting the long position at the clearing house.
People are going to learn not to put anymore in a brokerage account than that they wish to sell in the short term. Everytime they put stock in a brokers hands is it to their advantage to make money off of it.
Also filing 144 by the time we the public see it, its too late and most of the time that 2 weeks lag is plenty of time to sell what they are going to sell because they know when the public does see it they will still think they are selling when they are most of the time through. Thus the public consumes the public and the 144 got out before the shark frenzy of the public.
Lets see @ 10K a day for say 16 days is 160K they could have disposed of prior to the public knowing. 20K a day would be 320K so as you can see that is plenty of time to dispose of a number of shares. Now a short will be following the 144 sells so double the volume and BOOM when it hits down she goes and the resistence is where the short will cover.
Every 144 should pull their safe keeping and every true long should take out that which they do not wish to sell for the long term. That would reduce the long position on the brokers at the clearing houses and thus reduce supply to short against the box with for an orderly market.
Just going to take sometime before people really learn what is going on and how by leaving too much stock in a brokerage account only nails themselves financially.
:=) Gary Swancey
MegaMacroEconomics lesson :)
I have been following what is called the spending wave theory for several years now. Having been born at the tail end of the baby boom I have always been looking for a way to get ahead of my more fortunate boomers (the ones born before me).
The chart and it's accompanied essay speak volumes. If it's right I am sitting very pretty as far as my investment program is concerned.
The basis of this theory is that the stockmarket will follow the birth rate if the birth rate is shifted forward by 46.5 years to reflect the peak earning and spending of individuals.
check it out at:
http://www.mutuals.com/pub/learning/trends/trends04_spending.asp
birdofprey
Just a thought...
If the brokers can (and obviously are) doing this (selling short) with 144 certs...
What are they doing with all of those trillions of shares held in the street name in millions of customers accounts? Could they have shorted those too?
Could it be that *they* decide when the market (or a stock) has gone up enough... then *they* take their profit by starting to short against all of those long shares?
Then when *they* have forced things down and used the margin calls to wipe out everyone...the whole process begins again.
"The world runs on a river of money...I'm just trying to get to the bank of the river to dip my ladel in."
Look at a 100 year chart of the DJ30 and apply the above. Start throwing in a little historical perspective in and tell me what you see.
birdofprey
It sure could explain a lot of things.
1. On how $16.875 - .43 by the end of June on a mere 256K of 144 coming into the market according the transfer agent's numbers.
2. Why one particular source that links back to Denver Colorado broker by the same IP like JetfuelMillion, MyOwnMoney, HarrytheBull, LillyWhiteStocks, StockChamp, and no telling how many more aliases have been so adament about slamming this company since the infamous walk down ("Rolling the Tape") on April 6, 2000, which we all remember so well. (7 - 500 share blocks on the bid in less than a few minutes)... You do remember that. You are one of the few that should also remember the letter from the short in 1999 that wanted 250K and $100,000.00 from a Denver Colorado Attorney and Rocky Mountain Securities was where the stock and money was suppose to go, which is also in Denver Colorado.
Bart is abreast of the situation and has not discussed with me what he is doing. But it would stand to reason the 144 holders would see they shot themselves in the foot.
Only one left ...
CIIR
:=) Gary Swancey
Holy Certs, Bard-Man! What an article & what an epiphany!!!
This explains:
1. How a stock like CBQI can be kept so low in price. CBQI has a ton (I mean a TON!) of 144's out there, & if they are in the "safekeeping" of brokerages, they have surely been leveraged.
2. Why CBQI's "float" is listed at 40-some million shares.
3. How 144's get screwed by the very people "serving" them.
BUT WHAT AN OPPORTUNITY!! Here's your/Bart's strategy for upping the stock price....
Do you realize that the word NAKED would gain new meaning if all the 144's pulled their certs (these are for huge bundles of shares!) from the brokerages? It might take a bit of time & trouble, but you could create a multi-million share short squeeze in a very short time!
I think all 144's of all stocks should be made aware of this. If they were contacted, talked to & agreed to help, you'd see more NAKED than at a nudist camp! A reverse manipulation!!
If they have any sense at all, they'll understand that the price won't go higher very quickly unless they help, & that their 144's are (unknowingly) the reason for the price drop.
Maybe it's time to see just how friendly the "friendly hands" holding 144's in CBQI & other issues truly are.
Whadda ya think, Gary?
JB
interesting and disappointing...thanks for your efforts,jj
Sure is a hard way to find out that there are no honest people in this arena. Theft is the name of the game no matter what that game is. One must be on their toes at all times Gary.
Frank
Let us hold your 144 cert for safekeeping!
No matter where you go in the USA, you are told that you can not short against 144 restricted stock. That is about as true as you can not short an OTC stock. All stock can be shorted if it is in a brokerage account, which will show up in the broker’s long position.
As a service most brokerages are more than happy to hold a certificate for you in their vault. That way should you decide to register the 144, they would at least have the certificate on hand and only the form 4 plus a signature verification document would be all that is required. That can easily be done by fax or email. But is it wise to have a brokerage firm hold a 144 certificate for you in safekeeping? Is it really safe?
Well take today for example. I was watching a security, which I have 3 year restricted 144 stock. Now I had placed that 200,000 shares of 144 in certificate form into a brokerage house that told me they would glad to hold for me in their vault. So I did not sign it but just put sent it in to the broker to hold for me. Of course, I then see the 200,000 shares in my account on my monthly portfolio statement. The statement also notes they are restricted and the equity has no value by the denoted N/A under the Price column and thus no market value across the board. Now based on that statement the brokerage's long position just increased in accordance to my portfolio statement.
Now I realize and know the float is only 240,000 but it has traded the float over the past week and I could not understand where they were getting the stock to roll the bid every 30 – 90 seconds. (“Rolling the Tape”) So I called a broker and surprisingly was informed there was a big seller. Now how could that be since there was no large positions except 144 holders that I knew of at all. Further checking, I discovered there was plenty of stock in the long position of the clearinghouse! In other words, my restricted shares were now showing up in the Broker’s long position that MMs, MIMs, offshore and other players of the market can legally short against. (“Shorting Against the Box”)
A Brokerage’s Long Position is the available stock in the brokerage house accounts that can be shorted against that has not already been shorted. In other words, all stock in a Brokerage’s accounts can be shorted against, restricted or unrestricted. Thus the infamous “Air Shares” suddenly becomes “Restricted Air Shares” if the 144 holder happens to place a restricted certificate in their brokerage house for safe keeping. Because the share amount shows up as shares in the holder’s account, the brokerage shows all shares on the report as a long position for the brokerage.
Lets say that a brokerage house has in its accounts 1,000,000 shares, which is their long position to hopefully sell at a higher price. Of that say 500,000 is restricted that they are merely holding for 144 holders. The brokerage still shows a long position of 1,000,000. If someone plays the market and ”short against the box,” say 500,000 shares then the long position would reduce to 500,000 shares. Basically, they have shorted the unrestricted and have the restricted to go or vice versa. Now say another broker needs to borrow some of the long position to short and make an orderly market. Then the other 500,000 shares can be loaned out and thus shorted against the brokerage’s long position.
Restricted or not, signed or not, giving a broker a certificate for any reason is like putting a T-Bone steak (raw or cooked to whatever preference) on the floor and asking your dog to guard it. When you get back you will discover all that is left is the bone and the dog is still chewing on it. Please note, the dog is waging his tail and loves you to death but will growl at you if you try to even take the bone back. Expect a terrible hassle just to get what is left.
What does the Internet do? They merely start screaming P&D, or some other wild card to justify the stock price and the blame is no where close to the actual events of what has occurred. Now it may very well be 144 stock but not the 144 holders selling it. Most likely they are under the old belief you can’t short 144, which is apparently bogus.
Say a stock is trading at $10.00 a share. A 144 holder places his restricted stock certificate at his broker for safekeeping. The 144 holder now does not have to worry about trying to keep up with the certificate because they feel it is safe hands. Well, the MMs and MIM once the long position is out can just sell the fired out of the stock thus pre-selling the 144. Seems strange but the broker basically just nailed their client who they are suppose to be looking out for by the way. Just like the dog started eating the second you walked out the door.
Now the MIM has sold you out high and the price plummets. Watching with disbelief, you scratch your head on what happen to the stock price. Who in their right mind would be selling the stock, you ask yourself? Now you are ready to sell a bit once the legend is lifted and the price is 80% down from where you first put it into the brokerage house. Your brokerage house will be more than happy to sell the stock for you for a commission or buy it from you. Eventually, it makes back to whoever sold for you so they get the difference from when they pre-sold it for you much higher and can cover in getting you to sell at the low price. Still chewing on the bone in another words. But do not think about trying to pull that cert. Oh man the dog will used whatever they can to stop that from happening.
Bottom line is the 144 holder could not sell the 144 and was trying to be responsible and protect his interest. Heck, the 144 holder did not even sign the certificate nor even file a form 4 if they could. Unknowingly, they just shot themselves in the foot allowing a brokerage to hold their restricted security certificate and guard their investment.
When I called today to pull the certificate out and have it mailed back to me, I was informed of a numerous scenarios about getting my certificate. I was told it would take 6 weeks because the certificate was in the brokerage’s name. How could that be because the legend was still on the certificate and I had not signed it or even filed a form 4. The more I pressed on that issue I was later told that they had my original certificate and it was not in the brokerage’s name or street name. I was told they had talk to the company legal counsel and I was later told that did not happen especially after I did inquire to the counsel. I was told I needed the CUSIP numbers (I did not know you needed both restricted and unrestricted CUSIPs!), the certificate number and a reason for calling my certificate back.
Man I was blown away. My reason was became I owned the flipping certificate and I wanted back. I got both the CUSIP numbers and the certificate number to send in the written-signed request for my certificate. I even gave my Federal Express Account number so I could get the certificate back to me registered mail.
At the end of the day, I have discovered that anything in a brokerage account, restricted or unrestricted, is a long position and can be shorted. Supply and demand now is basically potential supply and demand. I was told today the “Rolling the Tape” I had been witnessing was, “Keeping the market honest.” Talk about an oxymoron or a contradiction in terms. But very few days come along where a light bulb come on or a 2x4 hits you in the head awakening you to the reality of the market.
Never put more into a brokerage account that you are willing to sell. Greed is putting in more shares than you are willing to let go of in a short term basis. They stock you do not intend to sell will be sold one way or another as long as it is in the brokerage account and thus showing up on the brokerage's long position.
I have to wonder how many people unknowingly realize that by putting their 144 certificates in their brokerage house, they actually are shooting themselves in the foot? Are they aware the market is actually about to nail them financially? How many stocks have been nailed not by 144 holders selling but putting their certificate in the hands of their broker for safe keeping and someone else sells for them? Could account for a tremendous MM oversell from what I have learned today.
Not only that, have you ever sent a certificate in to a brokerage house and it is free trading? Ever watch the selling that occurs prior to the 3 days to clear before you can sell. Envision this … you send in a certificate for say 100K shares and are informed it takes 3 days to get good delivery to street name. The broker upon receiving the certificate can short the stock. Who cares about fundamentals or anything? They got a certificate.
Hey, this is based on events today that I experienced and I could possibly be wrong. However, at 10:48 AM when I called for that 144 certificate the last “Rolling the Tape” occurred at 10:47 AM. The rest of the information in this composition was obtained by speaking to professional brokers. It was quite an eye opening experience and explains to me how a lot of stocks fall and no one lied because they have not sold a share. Nothing more than that someone else selling "Restricted Air Shares" causing the downward movement and looking for the holder to sell at the low price.
#1 Rule of the Market: Sell High (even if it is not your stock) and buy low (especially if it is the holders of the stock you sold against)
:=) Gary Swancey
I have but one question...
Where can I find this Guy? I have some newly minted state quarters to sell him!
Birdofprey
“Painting the Tape” Evolves to “Rolling The Tape”
In a Bull market this particular fear tactic has been known as several different names such as dips, shakes, back filling, you name it to induce sells or shake out shares. But in April of 2000, I watch a methodical “Rolling the Tape” of a 500-share blocks drive a stock down from $9.75 to $6.25 on 3,500 shares in a matter of minutes. Those 7 trades came on a 90-second interval. You could have set your watch by the action.
When this is happening common sense says, "Who would be selling this amount of trades instead of just one and thus paying all the commissions?"
I referred to it as a back breaker used to kill a momentum of buying. Typically “Rolling the Tape” is associated with or complimented with the “Boxing Tactic” (same MM is on the “bid” and the “ask” at the same time before and after a Roll) and a 30% - 60% gap in the “bid” and “ask” to stop momentum in buying. As the market is now turning bullish again the bears are desperately attempting to keep stocks from moving. Not only do they use the small 100, 200, 500 block trades at the bid, which are automatic book fills or rather stock calls, they can set a Rolling the Tape” with a particular amount of shares to come into the market on a set time derivative.
How this “Rolling the Tape” tactic works is simple. Create air shares of say 5000 and sell them to another MM on the bid at a set time of say 90-seconds. The bidding MM buys them thus that MM just bought low. Now the bidding MM steps up on the “ask” to sell them back for a solid 20% gain and sells them back to the other MM (who just created the shares and sold) at the bid on a set time interval. Once the MM at the bid buys all the “Rolling” block trades back, he steps off the bid and the bid drops. Sometimes a block trade to cover the roll will go off and the swapping of a Roll is short term.
Typically, the average trade on the bid is around 850 if effective. Also ridiculous number of bid trades also. Using 10 trades of 500-block shares would equate to 10 trades per 5000 shares traded at the “bid.” So if the “bid” had say 30,000 shares at the bid the trades could be something like 35-38 trades made. But this trading activity does affect the technical analysis of a stock and thus the charting.
Now this is so noticeable that a Time & Sells sheet will show a “Rolling Run” of small block sells at the bid. Then a large block trade at the bid to cover and instantly another same size block right behind it to start the process all over again. However, if the market makers can get a sell then that is to their advantage thus fueling the fire and covering the air shares. When a stock suddenly gets buys then the Rolling pauses and even stops. Someone just got “bagged.” (Market Maker is now naked short)
The MM has filled stock on the ”ask” they do not have plus they’re unable to fill the Rolling side of where they where in the time derivative. Typically, the “bid” will remain and the “ask” goes even higher, increasing the spread. Now they really need to get sells to get the price back down, but sometimes the bidding MM will take the price of the last “ask” as the bid. This is an attempt to at least break even for the trading.
Rolling the Stock is becoming very popular especially since technical analysis has been growing in the due diligence process of a stock. “Painting” and “Rolling the Tape” are nothing more than to show weakness and plays on the fear that someone is bailing out. Also by doing the “Rolling the Tape” instead of just “Painting the tape”, the Market Makers can effectively affect the relative strength indicators to show weakness.
Another limit to Rolling is to not do it too much or the false volume will go up too much and set off public interest alarms, which will bring in buying. That would shoot themselves in the foot basically. Most of the time to avoid this increased volume, the set share block and time interval will happen first right after some buying interest so the bidding MM and the rest of the line up can clearly see the “Rolling” is beginning to start.
Just another tactic to attempt to keep a Bear Market by stimulating fear that someone is bailing out, when in fact, if you look at the Time and Sales you discover it is merely another tactic of impression management.
Hey, just an observation and I could be wrong.
Gary Swancey
:=) Gary Swancey
Obviously this guy has not heard of ...........................He is "The Penny King". He began investing in penny stocks 20 years ago. He likes to trigger mergers/acquisitions, tender offers, play the global currency exchanges, cause friendly and sometimes unfriendly, takeovers or consolidations. He sees the world filled with currencies of different colors and values as they are governed by insiders at the tops of pyramidical structures which serve their constructors. He donates 100% of what he and his group of followers, (currently around 70 at iexchange) generate in the stock, bond, options, deriviatives and currency markets to the Free and Clear Foundations of Earth, International. The Foundations in turn perform two functions with the money. First and foremost, they buy pennies from homeless people for a nickel each. They buy nickels from poor people who earn less than $12,000 per year for a quarter each. They buy quarters from middle class folks for a dollar each, unless they are the newly minted commemorative State quarters, in which case they buy them for $8.00 each. And they buy Liberty Dollars from wealthy people for a Benjie, that's a Ben Franklin $100.00 bill. They leave the dimes to the Rockefellers of the world. This activity, conducted at the micro level through a cadre of volunteers on the streets of American cities has caused some interesting things to happen at the macro levels, including 130 central banks recently successfully giving the Euro a temporary boost. In other Macro events, the US national debt has been reduced from 5.6 trillion to 3.8 trillion, following record surpluses. Jubilee 2000, an organization strongly supported by "thepennyking" has put a dent in the international debts of some of the worlds' poorest countries. The mission of the Free and Clear Foundations, a supersized version of Habitat for Humanity, is to clear the earth of all Debt within the next decade. Despite record amounts of new issuance by corporations that span the earth, government debt is projected to shrink to zero in the coming decade. Secondly, the Foundations loan up to 80% of the purchase price for a single family owner occupied home for principal only, meaning Zero Interest MortgagesTM, or Principal Only MortgagesTM. (ZIMs or POMs). The Foundations, through their advisors and brokerage networks, make a market in the mortgage backed paper to foreign investors who are seeking a hedge against the surging U.S. dollar. Many bankers have asked "thepennyking" how this is done. It is very much like a zero coupon bond. The fees and yield are front loaded so that the borrower pays all costs of the borrowing (11 to 12 points) during the first year of the loan, and thereafter all payments go to principal reductions. The APR on this loan is around 4.9% which is paid back in 8.3 years as opposed to 15 or 30. He is the Founder of both the Free and Clear Bancorporation which has authorized 500 trillion shares of voting stock to effectuate the consolidation of 84 of the largest banks in the world during the next decade. The Foundations are also the largest stockholder of Penny King Productions, Inc., and the Free and Clear Bancorporation. Penny King Productions also has a large stake in the Bancorporation, whose only current subsidiary is "The Bank of Pen". The Foundations, through their affiliations around the world, have established the Free and Clear Fund, a private offshore fund, which pools funds from investors in 200+ countries outside the United States, and is utilized as an M&A Fund. Donations to the Foundations are also used on an interim basis in this fund, currently around $56 billion. Currently operating on 7 continents, the major focus is on consolidating the global financial services industry to reduce the number of competing stocks, bonds, and currencies, so as to provide a more cooperative global financial community which provides the greatest good for the greatest number in terms of equity. In 1993 his personal assets were around $2 billion. Today, his assets would be in excess of $76 billion, however, his fortune is managed from offshore locations and trusts, all of it donated to the Free and Clear Foundations of Earth and managed by him, its' Senior Trustee. He was a banker in the mortgage industry in Seattle for ten years. He has worked for dozens of industries including publishing and film in Los Angeles. He is an accomplished author of several books under different "pen" names and is an expert "punster". He enjoys making people wealthy, if they are willing to donate half of what he has showed them how to earn, to the Free and Clear Foundations. There are 66 organizations globally. He likes to create wealth for the greatest possible number of good people. He can be in and out of a stock or currency within seconds so this site does not reflect any real time positions or trades. He asks that you give away half of all that you earn in the markets, just as "The Greatest Salesman on Earth", a book by Og Mandino, a book he highly recommends in order to understand his investment philosophy. As the Senior Trustee of the Free and Clear Foundations of Earth, International, he is responsible for managing a portfolio in excess of $76 billion. He has owned off-shore banks, many Canadian and US companies, knows real estate inside and out, and is Magyar, (Hungarian) like George Soros, one of his many mentors. The only living person on the planet in history so far to have made $1 billion in one day by shorting the British Pound. Another favorite mentor is Nikola Tesla, the Croatian inventor of alternating current patents sold to Westinghouse in 1893 for $1 million. Currently, he is working on over 2000 merger deals simultaneously, some of them penny stocks, some of them large multinational deals. He favors a consolidation in the global REIT, Banking, Financial Services, Computer, Technology, Entertainment, Publishing, Health Care and Telecom sectors. He has been talking to numerous telecoms about a new technology called ThoughtWareTM, which allows humans to communicate with computers and phones etc without a mouse, keyboard, keypad or VRT, just a thought! In the past he generally valued a company at ten times book value, which was usually his tender offer price, unless he saw some hidden extra value in a company. As of November 1, 2000, however, his philosophy on values had completely shifted, and his new tender offer prices run around three times book value. If a company is trading under book, he tends to jump on it. If it is way over book, like Amazon and Yahoo, he is short for short periods (one to three days). He buys in Europe, Japan and Latin America and sells in the United States, and is heavily shorting the Yen against both the Euro and the US Dollar, as well as 200 other currencies at different times throughout the day or night. The profits from these currency transactions provides the means to buy spare change from the public through the Foundations. He forcasts that a single global currency (the World Dollar) will eventually evolve, replacing even the U.S. Dollar, which could be the last one to go, (it is backed by nuclear bombs, and the world's strongest military, despite the words "In God We Trust"). The outcome forecasted by he and his peers in some of the highest echelons of global finance is a Free and Clear (debt free) planet within his lifetime. . He agrees with Michael Miliken, the former junk bond King, that the coming rapid technological changes shall be as miracles and wonders to all of us. He recently recommended shorting 5 trillion Yen to the Foundations. A few days later, Japan's Central Bank raised its rates for the first time in 10 years. Despite this, the Yen has fallen 15% against the dollar since this recommendation. Some of his letters to certain U.S. financial institutions preceeded the current continuous consolidation in the global financial services sector and it is the intention of the Foundations to consolidate the largest of these entities into a single economic unit in order to more equitably distribute wealth among the planet's 6 billion inhabitants. Some of his letters to various boards and investor relations people, and proposals, are published here for all to see. Your reading of his reports contributes and assists in that cause. To gain further insight into his investment philosophies, he recommends you read George Clason's book, "The Richest Man in Babylon", written just before the last depression, or all the books written by George Soros. His favorite quote is, "God Blesses You a Trillion Times Per Second", a quote attributed to one of his pen names. The postings herein are not offered as investment advice and is solely published by the Free and Clear Foundations as free information. Through the Foundations and other foreign organizations, he is negotiating to buy all of the outstanding debts of the US, Canadian, Hungarian, Latin American, Chinese, Japanese, British, German, Italian, African, Indian and Russian Governments and convert them into minority equity stakes in the Free and Clear Bancorporation. 35% of the U.S. national debt is owned by foreigners. "Save your pennies", is his best advice! His favorite math problem: "Divide 6 billion people by two as many times as you can and tell me by how many cousins removed you are related to me?" His favorite riddle: "How many days would it take to have one million dollars if you started with just one penny and doubled it every day? How much would such a talent be worth to you? Would you like to have such a talent? Just ask! If you took $660 trillion of global outstanding debt, converted it all into equity and equally divided it amongst 6.6 billion people, what would be your share of this net worth? He sees the Yen continue to falter as it stumbles with over 1 trillion in bad debts. Japan Inc. is going bankrupt, so he is recommending selling 500 trillion Yen to the Foundations effective December 31, 2000. The Companies you see listed here are all targets for acquisition/merger or consolidation as he works behind the scenes to bring it all about. Answers to the riddles above: 32 cousins removed. 28 days. It is worth giving away 500K to learn how to make $1 million in 28 days. Your net worth would only be $1,000.00. He got the name "the penny king" from the homeless people on the Streets of Portland, Oregon, from whom he purchased hundreds of thousands of pennies for a nickel each beginning in 1993. Save your spare change...On paper, he is already a trillionaire, all that is left is the execution, and if he dies, the Foundations will live on as his lagacy to humanity. Not all the reports posted get published: The following list during the past six months was not posted and is posted here for the record: 9/16/00 NICM Accumulate 4.9%, pending news... 0 9/16/00 ZERO Accumulate 4.9%, tender for rest...pending news... 0 8/5/00 AMAT Accumulate 4.9% 0 8/4/00 CSGKY Accumulate 50 million shares... pending news... 0 8/4/00 NDCRY Accumulate 4.9% 0 8/4/00 SUBJY Accumulate 150 million shares...pending news.... 0 8/4/00 PRM Short 2 million shares. 0 8/29/00 VIPM Accumulate 4.9% 0 8/18/00 ZERO Recent News... 0 8/18/00 CORL Accumulate 4.9% 0 8/18/00 CDN Accumulate 4.9% 0 8/17/00 BINC Tease, entice, intrigue... 0 8/17/00 CLIC Tease, entice, intrigue... 0 8/17/00 GGNT Accumulate 4.9% 0 8/17/00 HIRE Tease, entice, intrigue... 0 8/17/00 TWX short (sell) 0 8/17/00 CNDL Accumulate 4.9%... 0 8/17/00 VO Tease, entice, intrigue 0 8/17/00 QCOM Tease, entice, intrigue 0 8/17/00 RNWK short (sell) 0 8/17/00 ATHY Management insight 0 8/17/00 GNET short (sell) 0 8/17/00 SOFN Tease, entice, intrigue... 0 8/17/00 VNWK pending settlement of suits 0 8/17/00 SGY Accumulate 4.9% 0 8/17/00 CHRD Tease, entice, intrigue... 0 8/17/00 EDIG Tease, entice, intrigue... 0 8/17/00 AMKR Accumulate 4.9% 0 8/17/00 MCTR Tease, entice, intrigue... 0 8/17/00 ASYS Recent news 0 7/31/00 FRA Settle the suits and then accumulate... 0 7/17/00 EPWN Another Penny Stock in trouble with SEC... 0 7/12/00 ARMGE Can I raise the dead? 0 7/11/00 CSGKY Free and Clear Bancorporation Bids to Acquire Cr Suisse 0 6/21/00 CSR Power Players Perform Plentifully in Perfect Passion 0 6/20/00 FPFX BARC FINDING FRAUD 0 11/28/00 LOCH Nakedly Short 21 million shares till it hits 3x book value 0 11/28/00 ABYNY Accumulate 45 million shares pending news... 0 1/8/01 TWA Short 8MM shares daily till it files for bankruptcy.... 0 1/12/01 AFTC When it comes out of Bankruptcy... 0 1/12/01 NOOF Accumulate 4.9% pending more news 0 1/12/01 AEN Short 600K shares daily...losses eroding book value... 0 1/11/01 CRWN Short 300K shares daily till it hits 3x book value... 0 1/11/01 SAPE Short 8MM shares daily. 0 1/11/01 JNPR Short 8MM shares daily till it hits 3x book value... 0 1/11/01 FSBC Accumulate 4.9% pending news 0 1/11/01 BZH Hold 400K shares pending news... 0 1/11/01 FNAN Accumulate 4.9% pending news 0 1/11/01 AED Accumulate 4.9% pending news 0 1/11/01 SRCE Accumulate 4.9% pending news 0
Founder: The Free and Clear Foundations of Earth, Chairman & CEO Penny King Productions, The Free and Clear Bancorporation, Senior Trustee; The Free and Clear Fund. www.iexchange.com top analyst!
OK Boss, offer an opinion on this.......................Top Market Timer Says, NASDAQ 5000 This Year
An InvestorLinks Exclusive Report
From the InvestorLinks.com News Desk
By: Peter Santini, January 11, 2001
Like a hot knife through butter, the NASDAQ should go through 5000 this year. That's what Don Wolanchuk says and he's one of Market Timer Digest's Top Market Timers, having won 17 annual timing awards since 1989. Some of his greatest timing calls were widely ignored by the investment community. Wolanchuk forecast the bull market rally following the 1987 crash and called for a DJIA above 10,000. When NASDAQ traded at 1800, he forecast a NASDAQ 5000. In 1999, at the bottom of the oil market, Wolanchuk called for $30/barrel oil. He was Market Timer of the Year in 1995, 1996, 1997 and 1999.
In the interview below, Wolanchuk calls for a "fast and furious" return to NASDAQ 5000. But, that's only the first level. He's calling for a NASDAQ 10,000 on its way "towards 20,000." He forecasts Intel (INTC, Chart, Boards) reaching as high as $75/share, Microsoft (MSFT, Chart, Boards) returning to $112/share, AT&T (T, Chart, Boards) reaching $60/share, and Procter and Gamble (PG, Chart, Boards) at $118/share.
Wolanchuk uses numerous historical comparisons in describing the current market conditions and helping explain why sentiment is as it is. In explaining why we should anticipate a major rally in the financial markets, he offers various technical measures, such as the VIX Index, the ARMS Index and the Advance/Decline lines. This may be the most important interview you will read this year.
Investors and curiosity seekers may wish to visit Don Wolanchuk's website for additional information about his market timing techniques at www.wolanchuk.com
INVESTORLINKS: How do you currently feel about the condition of the markets?
WOLANCHUK: When it becomes hopeless to everybody, which it appears to be now… In fact a few weeks ago, with the American Association of Individual Investors, you saw 51 percent bears and about 30 percent bulls. That's a flight. And rather amazing because the DOW is basically where it was a year, year and a half ago. NASDAQ the same way. The market's taken a time out with the DOW about 10,000. The same thing happened in 1991 - went side ways, drove everybody crazy. It's taken a great breather. Interestingly, we get all the bluebirds out and you've heard the words "crash" and "bubble" and every other thing from these bears.
INVESTORLINKS: The word "recession" has been mentioned more than a few times recently.
WOLANCHUK: Yes. After the crash of 1987, we had a recession and the market went straight up. Recession, fear of the stock market, everybody moving into money market funds and talk of bear markets is what bottoms are made out of. Proof of that is in the technical picture. While this has been going on, the base 52-week new highs have been steadily climbing for a year now - the stocks making new 52-week highs. Last week, there were over six hundred. The weekly Advance/Decline line just keeps climbing and climbing and climbing. Technically, we've got a fabulous situation in the moving averages of put/call ratios. We've got numbers that we haven't seen in years. We've got an ARMS index in the moving average - the last time that I saw 130. I can't remember seeing a ten day ARMS at 130. Even while the DOW has been going up here, recently, the five-day trend has been staying above eight hundred. That's incredible! The DOW, where is it? It's over 1000 out of the October low. In the mean time, we've got everybody being chased out of the stock market. It's absolutely a fabulous situation.
INVESTORLINKS: Is it fabulous enough that it's time for investors to rush back in?
WOLANCHUK: They're not going to do it no matter what I say. If I tell them to jump in here with both feet, they're not going to listen to me - just like they didn't listen to me after the crash of 1987.
INVESTORLINKS: For those that do listen to you, what should they expect?
WOLANCHUK: Every time that we have this situation, the stocks are served up on silver platter. The interesting thing is the wipeout in a lot of NASDAQ stocks is typical of an industry that attracted a lot of people - the Internet business. A horde of people went in there for fast and easy money. A lot of these companies, of course, are not going to make it and you had the initial shake out. You had all these troubles with financings that turned into death spirals.
INVESTORLINKS: Where do you see the NASDAQ heading?
WOLANCHUK: When the NASDAQ was at 1800, I said it was going to 5000. It's a perfect correction. I haven't seen anything in the wave structure to negate my idea that it's going to head - the potential is that the NASDAQ is going to start flying up past 10,000 towards 20,000.
INVESTORLINKS: The NASDAQ?
WOLANCHUK: Yes, the NASDAQ. "Is anybody, who was on margin and who got wiped out, going to go near the margin department for probably months or years? Of course not."
INVESTORLINKS: From where to where?
WOLANCHUK: Past 5000 and a clean shot through 10,000 on it's way to 20,000.
INVESTORLINKS: You're going on record that the NASDAQ is going to 20,000.
WOLANCHUK: It's going to go beyond that eventually. There's going to be a lot of washouts in between. This is the best washout.
INVESTORLINKS: Do you think we're ever going to see an opportunity like this again?
WOLANCHUK: Just like we never saw an opportunity when it made it's low in 1998. Here we have a situation where everybody got notoriously bullish in the NASDAQ. The problem there was they were right being bullish, but they were wrong in the way that they executed it. That was by buying stock with borrowed funds on margin accounts. It wasn't anything else, but people were forced out of the market because of margin selling. Now look how clean this market is. Is anybody, who was on margin and who got wiped out, going to go near the margin department for probably months or years? Of course not. This market is very clean in that regard. So we don't have to worry about forced margin selling anymore. We don't have to worry too much about poor sentiment. After the crash of 1987 everybody thought, all through the next two years, that it was bear market rally. There's nobody going to be calling this a bull market for long time even though the weekly Advance/Decline line bottomed out a year ago.
INVESTORLINKS: Do you think we're still in a bull market?
WOLANCHUK: Absolutely. If there's nobody left to sell and everybody's bearish…I got the same thing in 1987. I feel a lot better about it now, because I'm in the minority. What's so funny is that the media said that the NASDAQ had its worst year in history. What they don't say is that, a year ago, the NASDAQ is where it is now. For the first six months it was the grandest six months in the history of the NASDAQ. Then, you had the worst six months and you ended up back where you started. That's exactly what the DOW did in 1987. All it did was go back to where it was in 1986 and the whole process started all over again. It is a hump in a chart that is continuing it's up climb. In the meantime, these stop clock bears who yet have to get religion… Can you imagine some of these stop clock bears who have been calling for the end of Western Civilization for the last fourteen years?
INVESTORLINKS: What about the bears?
WOLANCHUK: This market's not going to let them off the hook. Here we are above 10,000 pressing 11,000. If I'd told you 15 years ago, after the crash of the DOW, when everybody hated it, that they would hate it just as much above 10,000 you would have thought I was a nut. Here we are above 10,000 and everybody hates it. We are at a high level consolidation that's been stretching out for a year and a half or so in the DOW and the NASDAQ - a flawless ABC. What we call an ABC irregular flat correction in terms of Elliot where the B-Wave made the high at five thousand. Until proven other wise, anybody who says we're in a bear market - and at the end and we'll never see these highs again for years, which we've heard a lot of… You've got to remember where all this talk came from. It came from the people who missed the entire advance to begin with. They have really no credentials to be making those kinds of statements. In the meantime I never thought that I would be in the minority bullish camp once again with the DOW pressing eleven thousand. It's a rather fabulous situation. All these companies that have taken whacks like Intel (INTC, Chart, Boards), General Motors (GM, Chart, Boards). There's some of these DOW stocks actually are screaming new highs like the banking stocks. What we've had is a rotational exercise, which is typical of a high level consolidation in the primary market. While the secondary and most speculative market, as you know the NASDAQ, has gotten it's comeuppance because of the margin buying.
INVESTORLINKS: Where does that leave us?
WOLANCHUK: Now we've got a cleaned up market where nobody is going to go near the margin desk. We're set up for a resumption of the bull market. In certain sectors the bull markets been intact for quite awhile.
INVESTORLINKS: What about the market's short-term prospects?
WOLANCHUK: Actually, the markets have been rallying while the NASDAQ is re-testing its prior lows. The Wilshire Small Cap on a weekly basis has a great-looking chart pattern as far as I'm concerned. It's declined and held its 150-week moving average. It's a mile out of its hole made in 1998. It's a classic little consolidation. But, if you look at the NASDAQ it's only declined in three waves off the top. If you're an Elliot Wave Analyst and you're bearish, you've got to say to yourself, "If that's only three waves, and that's the second wave pull back, a third wave blast of historic proportion can absolutely be born out of that." Because of that potential, I'm certainly not going to miss it, if that's going to happen. The wave structure of the NASDAQ certainly allows for that. Here we are with a VIX Index (CBOE Market Volatility Index) still above 30 percent. It's been hovering above 30 percent since September. It's taken a stab to 37 percent during that time frame. This is a long period of high VIX readings without any solid detraction in a primary market. This is bullish. A market that looks ugly and doesn't go down is a market that you want to own.
INVESTORLINKS: What are your thoughts on the recovering telecom sector?
WOLANCHUK: There's no doubt about it, but the telecom sector has gotten awfully oversold, even more oversold than the NASDAQ. A lot of these wire houses couldn't stand it so I think they put out a big buy on AT&T (T, Chart, Boards). Here's a stock that technically appears like it's going to go all the way back to $60/share because of the gap situation. When a futures contract, or a stock, declines or advances leaving lots of gaps in the chart, all of those gaps eventually get filled. Intel (INTC, Chart, Boards) in my view is a prime candidate for that. INTC left all these huge gaps all the way down and Intel has got $75/share written all over it because of these gaps. The same thing with Microsoft (MSFT, Chart, Boards). I'm seeing Microsoft going back to$112, $115 or higher. It's the gap rule. The only reason that the NASDAQ declined in the first place was to fill all the gaps it left, when it initially thrust out of the hole over a year ago. There were three large gaps. They went down and filled them all. We had the S&P 500 futures bottom over a week ago at 1288. The next day it opened on a huge gap.
INVESTORLINKS: How soon should we expect these strong moves?
WOLANCHUK: We've been through some speedy moves here. We've had a bull market and a bear market - people going from extraordinarily bullish to extraordinarily bearish, all within a number of months. These things are moving really fast. Look at the volatility we've seen in the last number of weeks. We went through this 1991. While this is going on, sentiment is improving. It's just like 1991 all over again. It went up and down, drove everybody crazy for over a year. Not much has changed.
INVESTORLINKS: Are you pretty much saying that we should expect more volatility.
WOLANCHUK: I think we've had the bulk of it. My only concern is the cycles. We've got a four-year cycle due in 2002.
INVESTORLINKS: What does that mean?
"What everybody is anticipating, in my view, could prove to be something similar to what we saw in 1987: The market going crazy."
WOLANCHUK: That means it's going to be marked by something. Let me give you an example. We had a four-year cycle low due in 1986. Everybody prepared themselves for it in early 1986 as measured by the daily Advance/Decline line. It topped out and started declining, declining, declining as everybody bailed out in anticipation of a four year cycle that was due in 1986. In September 1986, we got some sort of hammering job, but in December of 1986, the daily A/D line was making twelve-month lows while the DOW was virtually at historic highs. That got everybody really bearish. Then, the market exploded to the August 1987 peak. There were all kinds of technical problems there. The 1986 four-year cycle low basically was met in 1987. The next four year cycle low if you count forward four years was 1990. Remember how ugly that was? Then, four years later was 1994. Remember how ugly that was? Four years later was 1998. So here we are, four years later from 1998, we have 2002. Somewhere between here and there, it appears that everybody is preparing for this four-year cycle, by bailing out of the stock market in anticipation of it. What everybody is anticipating, in my view, could prove to be something similar to what we saw in 1987: The market going crazy.
INVESTORLINKS: Can you clarify how the NASDAQ fits into this?
WOLANCHUK: Basically from the 1998 low, the NASDAQ has retraced exactly 75 percent of that entire advance in a clean three-wave fashion, which is exactly what the DOW did in 1987. It went back to the area of the prior consolidation. It was a consolidation in 1999. All through that year was choppy. It went up very slowly. I'm saying that the NASDAQ is set up, until the wave structure says other wise, to go through 5000 like a hot knife through butter - to go through 10,000 and a move towards 20,000.
INVESTORLINKS: Over what period of time? Five years?
WOLANCHUK: No, the percentage. Remember it is based on percentages. If I'm right, the third wave is going to be a lot faster than the move that NASDAQ made from the 1998 low to this past high (March 2000). It should probably take half the time that it took on that last big move. If I'm right, we'll go through 5000 inside this year sometime.
INVESTORLINKS: Inside this year? Are you serious?
WOLANCHUK: It did it before. It went from 1200 to 5000 in a space of a year (and some). We've had a three-wave decline. If indeed that's a second wave pull back. It still counts that way. A third wave is going to be kind of fast and furious. Because of that potential, I'm certainly not going to say it's not going to happen. I'm going to be prepared for it if it does.
INVESTORLINKS: Could you explain how this works?
WOLANCHUK: At the end of a second wave pull back, a second wave pull back is … they've got a lot of things going for them. People have got to be convinced that they will never see the highs again. People have to be convinced that they don't want any part of it. We're seeing a lot of this. After the markets crashed in 1987, one of the prominent bears said that the chance of the DOW getting above 2700 was 10 percent. Here we are above 10,000. By the way, that bear is still bearish. It is very tough being bullish because the market makes it easy to be bearish.
INVESTORLINKS: So which sectors are going to be hot?
WOLANCHUK: The sectors that everybody hates.
INVESTORLINKS: Such as tech stocks?
WOLANCHUK: Take the technology sector - completely sold out as far as I'm concerned. Retail? Everybody loves to hate retail. In the meantime, we see Home Depot (HD, Chart, Boards) has already gone from $35/share to $52/share over the last number of weeks. Intel has got the kind of formations that I'm just drooling over because of all the gaps left open above the market. I'm rather excited about what I see.
INVESTORLINKS: Do you think the markets will struggle this year?
WOLANCHUK: It's going to be a mental struggle. I don't know about the price struggle. I don't think there is going to be a price struggle. I think there is going to be a mental struggle. People are going to struggle with price.
INVESTORLINKS: Do you mean that investors are going to be looking at an up market and won't believe that it could go higher?
WOLANCHUK: They did that in 1987 after the crash. If you got caught and got wiped out, you're not going to go near the stock market. Investors will listen to high profile bearish gurus who will be telling them it's a bear market rally. We had a prime example of that happening after 1987. Now I'm even more bullish because of the recent correction.
INVESTORLINKS: Is there anything that would change your mind?
WOLANCHUK: Yes, if the American Association of Individual Investors got up to 75 percent bulls and we got euphoric all over again. That's going to come.
INVESTORLINKS: How soon?
"There's going to be a lot of people that will start chasing - if I'm right and we've finished up a second wave correction in NASDAQ and it starts to melt up."
WOLANCHUK: At the top of the next third wave blast. There's going to be a lot of people that will start chasing - if I'm right and we've finished up a second wave correction in NASDAQ and it starts to melt up. There are no sellers left because everybody's bailed out of the stock market. People are going to be chasing stocks. Not everybody is just going to stand around and call it a bear market rally forever. When you chase stocks in a sold out market, you see the net results. It goes absolutely hairy. Look at what the NASDAQ did coming out of the 1998 hole. It was so doom and gloom in the 1998 low. It went from 1200 and it doubled in price vertically in a matter of weeks.
INVESTORLINKS: Which stocks should investors consider at this point?
WOLANCHUK: You just spread it around. Qualcomm (QCOM, Chart, Boards), in my view, is a great situation, Some of the blue chips, like SBC Communications (SBC, Chart, Boards). It wouldn't surprise me to see General Motors (GM, Chart, Boards) take off. Disney (DIS, Chart, Boards) is another. Procter and Gamble (PG, Chart, Boards) is another great looking situation. It got whacked and it came back nicely. It's consolidating. There's huge gaps just above the market all the way up to $85/share. It should take out $118/share or $120/share. It's been there before.
INVESTORLINKS: Should we expect optimism over the coming year?
WOLANCHUK: No. I don't want optimism. I want rising prices against the background of pessimism. Something like we saw through 1988 and 1989.
INVESTORLINKS: Is that the bull market climbing the wall of worry?
WOLANCHUK: Of course that's what we want and that's what we're going to get. You know how we're going to get the wall of worry? It goes up slow. It could be fast. There's two ways of leaving the world behind. The market goes up super fast, catches everybody. Or the markets go up slow with lots of correction. Everybody hates it all the way up because of that. It takes nothing to move this DOW two hundred, three, four, five hundred points anymore. When we see the epicenter of Primary Wave Three, there is going to be a thousand-point up day in the DOW. It's coming.
INVESTORLINKS: Could the NASDAQ make a thousand-point gain in one day?
WOLANCHUK: Absolutely. You can't have the epicenter Primary Wave Three of Three to the upside unless it is broad-based. All sectors going up in unison. That is a broad move. The last time we saw a broad move like that was coming out of the 1982 low.
INVESTORLINKS: Any advice to investors who sold short this market or selling it short?
WOLANCHUK: I hope they stay short.
INVESTORLINKS: Thank you very much!
Sheep to be lead astray. The newest carrot for the bovine intelligent is "Charting" the stock price. This is a classic "Impression Management" where a poster who no one has any idea of who they are in the real world posts his charting shows a down or up band. Now once he persists that he is right then he gathers up the bovine intelligent and herds them where ever he wants them to be.
If was once said that you could lead people into a desert and they would drink the sand thinking it was water because they would not know the differenece. However, that is not really because the truth is they would drink the sand because they were told to.
In a slow market where there is not a lot of volume then one person, group, influence, whatever can easily manipulate a price. No indicators are reliable on a stock that does not trade at least 750K a day ... ever day. Simply because every trade in a low volume market crosses the MACDs and thus is about as reiable and leaving a hound dog to guard your food.
These chartist if you watch there postings ot others on the MB you will see a few things.
1. They want a position so they are not going to attack the fundamentals merely the technicals to get the price as cheap as possible.
2. Their objective is to stop buying and left the market take care of itself. They realize there is not always buyers but there is always shorters and seller. By stopping the buying the price will fall, especially if they can short it down. Stopping the public buying they do not have to short as much. Price versus Stock to get an effective drop.
3. These types are always buying on the bud and selling on the ask to play the spread. In a slow market and low volume they can make a fortune as long as they can effective impression manage the MB for people to do as they are told.
4. If you find one basher turning around then they have covered and got the stock they want and if another basher is still short you will see the one not cover just make a post civilly that the price will go lower. The turned basher goes silent. Out of respect I guess so the market can go to where the not covered basher has covered or gotten a position.
5. Now all bashers are positive. They have their position and ready for the bovine to buy now so they can sell for whatever gain they want to make.
6. These type do not want you buying when they are trying to buy and do not want you selling when they are. The Bovine Intelligent or sheep have to do what they are told in order for the chartist to make money at little risk.
7. Once the low price is established the Chartist professes their unique charting indicators and savvy at predicting the market.
Yeah, hail the infamous wisdom of the chartist and the cult begins.
You would think people would be getting wise to the new story same game routine.
Gary Swancey
:=) Gary Swancey
Happy Belated Birthday Sir Dave. I do not know where you are refering to but I am going to have the articles somewhere. I will have to get with IHUB for a specific area on the MB.
Man, I have a lot to do so don;t think I was ignoring anyone.
Gary
:=) Gary Swancey
Unbelievable..................
Another Dragon Lovin Capricorn. That makes 3 of us. Perhaps we should jointly start the Dragon Lovin Capricorns thread. hehe
Truth is a small grain of sand on the beach of public relations.
Founder: The Free and Clear Foundations of Earth, Chairman & CEO Penny King Productions, The Free and Clear Bancorporation, Senior Trustee; The Free and Clear Fund. www.iexchange.com top analyst!
You do the money changers justice with your words of wisdom. Now if only the public would be as wise.
Founder: The Free and Clear Foundations of Earth, Chairman & CEO Penny King Productions, The Free and Clear Bancorporation, Senior Trustee; The Free and Clear Fund. www.iexchange.com top analyst!
Hi Gary,
A belated Happy B'day to you. Mine is tomorrow.
I was asking the other day about placing links to certain files/documents on a particular MB. I was informed that the blue header at the top of each forum is the place for that here on IHub. My suggestion to you is to place links to your articles in this area. I am sure that many would benefit from reading your essay on Convertible Debentures as well as the recent OTC Newsletter post. As this MB expands these important commentaries will disappear in the volume of posts. Make them and your other informational pieces easily accessable for the newbies that will surf in here.
Disclaimer; The above is merely a suggestion, it is not intended to point any negative vibes towards the recipient or the poster. Neither is it sucking up. It is merely an observation of the Bird of Prey. Failure to pursue any action will not be considered a slight upon the integrity of the poster Nor will any action taken be considered a slight upon the Chairman. Don't tug on Superman's cape...Don't spit into the wind...etc.
Dave
Me too ... I have gotten loaded with them and they are the very same nonsense they have always been. Someone paid the newsletter for the profile and the stocks if people would just pull up edgar would see that it is clear most of these pretty stories have nothing but stock to sell through various vessels.
Most come out on the second day of the run also.
The key to an on line newsletter is hang as many people in the stock as possible. Thus by circumstance of getting caught they will be additional online voices to tout the pretty story. That way a steady flow of volume to sell into is brought to the market.
Watched it happen all the time last year. Heck even some are using the same old pretty story from last year that never went anywhere.
Remember the public's memory is only about 90 days.
:=) Gary Swancey
No more holding the bag!
I guess that's one of the biggest lessons I learned the past 9 months. Thanks for the insight. I have noticed a big increase in the pumper newsletters too. Had four the past two days. Don't even look at them.....just do the insty-delete routine. Friggen hose-bags!!!
The OTC Market Newsletters Are Flowing Again
In order to get a better movement, the newsletters are combining forces to get more coverage. This accounts for different newsletters putting out the exact same information. Sometimes as many as 14 I have counted myself.
Of course they still have the same generic stories.
1. Short Squeeze
2. Major Acquisition
3. Details inside information
4. Unbelievable Potential in Revenues
5. Unique Product
So the stories are not changing just the number of newsletters that are coming out.
Just be careful.
:=) Gary Swancey
The OTC Market Newsletters Are Flowing Again
Well as history starts to repeat itself most should be getting numerous OTC newsletters and profiles. Most of the online news letters are disclosing there compensation though.
But to me it seems that a prelude to a newsletter the following items have been or are happening.
1. Equity financing or funding and the basic financial terms are not being disclosed. Why are the terms not in the news release and the newsletters? Is it because they are death spiral or floorless convertible debentures?
2. Numerous S8 to consultants, which are free trading. Why so many consultants? Why are they using stock for revenue generating acquisitions or something of value? Is the stock the value after sold into the market?
3. SB-2 filings registering additional stock to be distributed.
4. No revenues and no cash is a must or if they have some a mega loss but are undervalued in the write ups.
Recently, the newsletters are starting to come again just like before. I guess it is a wait and see if people make the same mistake in the same old game even after so many got burnt in the past from these pretty story scenarios.
In this market, fundamentals are the key. So the EPS (earnigs Per Share) tells investors how much profit is being made for each share in the company. There are many examples of companies with astounding growth in sales but a widening loss in earnings. Revenue that grow of 20% - 50% plus annually is very good, but if EPS has gone down then the increase in revenue is more or less not worth a hoot. Also if the revenues have increased and so has the dilution that will also affect the EPS. More shares and thought the loss EPS may go down the Outstanding has risen but the net loss has increased.
Before you buy into a news letter with a pretty well written story:
1. Reading news releases as far back as you can get them, at least 6 months.
2. Read or at least scen the filings on Free Edgar or Edgar
3. Check for insider trading (144)
Does not take but a few minutes to do a quick DD and remember the 3 day rule. A momentum newsletter will run the first day, hard touting the second and the 3rd day is selling. Most recently the days have reduced to 2 days as people try to get in on the first get out on the second.
But the market is picking up and the OTC newsletters are coming. They are picking up steam everyday now.
Just be careful and just a few moments of DD is always wise. Keeps you from watching the fall while holding the bag.
Gary Swancey
:=) Gary Swancey
Stoopidity is incurable! A picture says it all.
http://www.geocities.com/copper6500/homedepot.html
Unbelievable.
:=) Gary Swancey
For a Guy Who's Been Dead for 97 Years, That Chekhov Sure Is Prolific
By STEPHEN KINZER NY Times
CAMBRIDGE, Mass. — What do you do when you run out of Chekhov? Might there be more?
The question has tantalized and frustrated more than a few theater directors. Although Chekhov was a master storyteller and one of the founders of modern drama, he died young and wrote only four plays that are acknowledged to be great works.
Ambitious theater companies often turn to Chekhov because his plays emphasize internal conflict, an exciting challenge to actors and directors. Many companies decide to produce all four of the masterpieces: "The Cherry Orchard," "Uncle Vanya," "The Three Sisters" and "The Sea Gull."
For nearly a century directors and performers have tried to squeeze more out of Chekhov. Some companies produce his early and less admired plays. Others adapt one or another of his many short stories for the stage. Neil Simon wove pieces of several of the stories into his 1974 tribute, "The Good Doctor."
Now Robert Brustein, artistic director of the American Repertory Theater here, has fashioned an original Chekhov evening of his own.
"He is such a great seminal writer, and there is so little of him, that people in the theater naturally look for the undiscovered Chekhov to add to the canon," Mr. Brustein said in an interview.
As a young doctor in the late 1880's, Chekhov earned money on the side by churning out a highly popular string of one- act farces, vaudeville pieces that combined silliness with gentle social satire.
Mr. Brustein has knit three of these into "Three Farces and a Funeral," which is appearing in repertory here through Jan. 14. He has appended a miniplay of his own that depicts Chekhov on his deathbed in 1904 at 44.
In between the pieces Mr. Brustein has inserted excerpts from the hundreds of letters that Chekhov exchanged with his actress and future wife, Olga Knipper. She was starring in his plays on stages across Russia, but he was unable to share the glory because his tuberculosis led him to abandon Moscow for the more forgiving climate of Yalta on the Black Sea.
Mr. Brustein is not the only American playwright with a new Chekhov adaptation in hand. Frank Galati, a member of the Chicago-based Steppenwolf ensemble, wrote a dramatization of Chekhov's short story "The Duel" that was produced in Chicago last fall by Steppenwolf and the European Repertory Company.
"Chekhov's obsession is the psychology of human character," Mr. Galati said. "Because he has such a passionate interest in the domestic melodrama, he's perfect for the stage."
American Rep's "Three Farces and a Funeral" cannot rise too far above its central material, the farces themselves, frippery that Chekhov probably never considered profound or even serious. Yet by combining them with material from Chekhov's life, the production gives viewers an unusual insight into his character.
They also show that Chekhov had a light, funny, mischievous side that is not part of his artistic image. He complained about the image of his works, asserting that even the most famous contemporary director of his plays, Constantin Stanislavsky, had failed to understand their humor and turned them into weepy tragedies.
Chekhov once said that "vaudeville plots abound in me as does oil in the depths of Baku." The first presented by Mr. Brustein, "The Proposal," centers on a nervous landowner who wants to marry an argumentative neighbor. Next is "The Bear," in which a businessman sets out to collect a debt from a young widow and ends up facing a duel with her. In the third, "The Wedding," a general who is invited to a wedding party to give it status turns out to be only a retired mid-ranking naval officer.
As directed by Yuri Yeremin, artistic director of the Moscow Pushkin Theater, who like Mr. Brustein is a well-known Chekhov interpreter, the three pieces are zany slapstick. There are outrageous outfits, pratfalls, characters who bray and cluck and bark like animals, and dialogue like this:
She: "Everyone knows that your wife used to beat you."
He: "Everyone knows that you are the scum of the neighborhood."
The characters, like those in Chekhov's major plays, are ordinary, even trivial people. The nature of farce, which Chekhov called "an explosion of pain in comic form," dictates that they not be presented seriously or in great depth.
To anchor this light fare, Mr. Brustein turns the two lead players in the first farce into Chekhov and Olga Knipper, who stand at opposite sides of the stage and speak lines taken from their letters. He addresses her as "actress," and she calls him "writer."
Chekhov (played in this production by Jeremiah Kissel) was long an avowed bachelor, but in his letters he tells Knipper (played by the Belgrade-trained Mirjana Jokovic, who appeared in the films "Underground" and "Cabaret Balkan") that he wants her near him. She is torn by her desire to nurse him through his illness and the demands of her career.
"How can I come to Yalta when I'm rehearsing your play for the Petersburg tour?" she asks at one point.
In 1901 the couple finally married, but their time together was shadowed by Chekhov's illness. Mr. Brustein ends his own play with his version of the deathbed scene, a sketch called "Chekhov on Ice." It suggests that Chekhov appreciated the paradox of a great talent being given such a short and unhealthy life.
His reported last words were, "I haven't had Champagne for a long time."
:=) Gary Swancey
Do Market Makers communicate? I would say yes they do maybe not so much with verbal but level II communications. Take Boxing a stock. That is when a MM is on both the bid and the ask. They basically have gotten "bagged" and want other MMs to know, is the way I see it. By Boxing the bid and ask and tracking upward, they have the spread wide because they want to cover what they sold previously at the lowest possible bid and gapping hopefully halts buying interest.
Now hopefully an MM, out of industry respect, will try to get stock to the boxer to cover on the bid. It is similaiar communication to stock calling which are the little automatic book fills of 100, 200, 300 - 500 (NITE is a 500 I know) ... By those automatic order flows going off other MMs can clearly see there are orders on another MMs book that they do not see on theirs.
Thus they have an idea what is about to happen.
This newest Automated Order System could complicate the MMs and their tactics a bit. Aslo the NWII (NASDAQ Workstation II) will be getting some enhancements also. One thing that would be a real positive is that an inside will be calculated only when there are at least two firm and two-sided priced quotations for a stock is the way I understand it.
The key here is if there are less than two quailfied markets, there will be no inside quote.
That is another advantage I believe for the small investor.
Hey I could be wrong but I am watching this development closely.
:=) Gary Swancey
OTCBB Automated Order Delivery Proposed to the SEC.
In the next few weeks, the National Association of Securities Dealers, Inc. (NASD®) will submit a filing to the Securities and Exchange Commission (SEC) for approval to create an automated order delivery system for the OTC Bulletin Board® (OTCBB). This system would accept directed limit and directed marketable limit orders for OTCBB securities.
The need for such a system has arisen due to increased trading activity in this market, and the accompanying regulatory concerns and operational difficulties. OTCBB trading activity has grown from 41 million shares and less than 7,000 trades a day in 1995, to 312 million shares and 53,000 trades a day in 1999. Due to the wealth of information about over-the- counter (OTC) issuers and securities available on the Interact, and the growth of online trading by individual investors, OTCBB trading activity continues to increase.
Approved by the NASD Board on October 5, 2000, the primary objectives of the proposed order delivery system and execution system for the OTCBB are:
· to increase the execution speed of customer orders, which, in turn, should provide a better opportunity for best execution;
· to provide automated communication between market participants to send orders and execute orders; and,
· to complement the changing volume and trading behavior in the OTCBB, and to provide the infrastructure necessary to enact new roles aimed at investor protection.
Other features of the system include:
· Users of the system would be able to enter, cancel, correct, accept, decline, and execute full or partial orders.
· Order recipients would receive a "pop-up window" with notification of receipt of a liability order.
· In mm, they could respond with partial executions, as long as the order is not designated as All-or- None (AON). Orders would not be automatically executed.
· The system would operate from 8:30 a.m., to 6:30 p.m., Eastern Time (ET); however, there would be no liability outside the normal market hours of 9:30 a.m. to 4:00 p.m., ET.
· In order to update the automated order delivery system, the OTCBB would have dynamically updated quotes.
The system would be made available to NASD member firms classified as Market Makers or order-entry firms and participation would be voluntary. It would be accessible via Nasdaq Workstation II (NWII tm) and an application programming interface (API).
This is a good advancement for the OTCs and should the SEC apporve it then this would be a major step in the right direction.
:=) Gary Swancey
Oh yeah I do know ... and I know a lot of people used to cybersmearing companies and individual and shorters etc. are really going to hate it in the near future.
Internet is getting to be part of a norm way of life and that is going to cause some folks to really hate what and who is held accountable. Plus there is more coming.
Trying to get the update now.
Be in next post.
:=) Gary Swancey
Holy smokes Gary,
This stuff is serious you know what! Hehe
Some charges the SEC makes against MMs and brokers.
1. Market Manipulation. Market makers coordinated the
entry of bid and/or ask quotations into the Nasdaq system
for the purpose of artificially affecting the market price
of a particular security in order to obtain an unfair
trading advantage for the participating market makers.
These undisclosed arrangements typically involved one market
maker requesting another market maker to move its quotations
in a manner that changed the inside spread or disadvantaged
customers or other market participants. Such coordinated
activity violated the antifraud provisions of Section
15(c)(1) of the Exchange Act and Rule 15c1-2 thereunder, and
the prohibition on the entry of fictitious quotations
provided in Section 15(c)(2) of the Exchange Act and Rule
15c2-7 thereunder.
2. Undisclosed Coordination of Quotations. Another type of
misconduct involved undisclosed arrangements between market
makers to coordinate the entry of quotations that did not
have a manipulative impact. In many instances, this
activity was intended to paint a deceptive picture of market
conditions, or induce another market participant into buying
or selling at an artificial price. Although the Commission
did not find that, in these instances, there was any
manipulative impact, such as a change in the inside market,
or harm to a customer or other market participant, such
conduct violated the rules prohibiting undisclosed
coordinated quotations. In other instances, one market
maker would enlist another market maker to disseminate a
quotation to buy or sell Nasdaq stocks on its behalf, such
as a request to the second market maker to join the existing
inside bid or ask, or create a new inside market price, in
the hopes of buying or selling stock. These undisclosed
arrangements violated the prohibition on the entry of
fictitious quotations provided in Section 15(c)(2) of the
Exchange Act and Rule 15c2-7 thereunder.
3. The Intentional Delaying of Trade Reports. In a number
of instances, market makers intentionally delayed reports of
significant trades to the Nasdaq market. The purpose of
delaying these trade reports was to provide the relevant
trader with an unfair informational and trading advantage
over other market participants. The failure to properly
report trades in such cases violated the antifraud
provisions of Section 15(c)(1) of the Exchange Act and Rule
15c1-2 thereunder.
4. Other Market Maker Misconduct. Market makers engaged
in other manipulative activity which did not involve
arrangements for the entry of quotations. This activity
involved transacting with other market makers that were
quoting the inside bid or inside ask, for the specific
purpose of altering the inside market prices where customer
orders were executed, which resulted in a worse price for
the customer (or for another market participant, in some
instances). Such conduct improperly benefitted the market
maker and harmed the interests of its customer (or another
market participant), in violation of the antifraud
provisions of Section 15(c)(1) of the Exchange Act and Rule
15c1-2 thereunder.
5. Best Execution Violations. In a number of instances,
Nasdaq market makers failed to provide best execution for
their customers' orders. These instances involved a market
maker deliberately favoring its own interests, or those of a
cooperating market maker, over the interests of its
customers, such that the customer did not receive the most
favorable price reasonably available under the
circumstances. This violated the antifraud provisions of
Section 15(c)(1) of the Exchange Act and Rule 15c1-2
thereunder.
6. Failure to Honor Quotations. Another type of misconduct
was the failure by market makers to honor their Nasdaq
quotations in various instances. In these instances, the
market makers did not honor their quotations because they
did not like the trading practices of firms that presented
the orders or because of other improper reasons, in
violation of the Commission's firm quote rule (Exchange Act
Rule 11Ac1-1, 17 C.F.R. 240.11Ac1-1).
7. Failure to Keep Accurate Books and Records. In many
instances, market makers failed to create or maintain
records of their trading activity, particularly with respect
to the terms and conditions of customer orders, or the times
of entry or execution of such orders. These failures
violated the recordkeeping requirements of 17(a) of the
Exchange Act and Rules 17a-3 and 17a-4 thereunder .
8. Failure to Reasonably Supervise Nasdaq Trading. Most of
the respondent firms failed to reasonably supervise traders
and other persons involved in transactions in Nasdaq stocks.
Most of the respondent firms did not prescribe procedures or
guidelines for their traders or supervisors concerning the
potential problems of discussing quotations with traders at
other firms. Other respondent firms had inadequate
procedures in this regard. In addition, most respondent
firms had no procedures or guidelines for supervisors to
review activities of traders for potential coordination or
collaboration with respect to quotations. Other respondent
firms had inadequate procedures or guidelines for such
supervisory reviews. Certain respondent firms relied on
their head Nasdaq trader to perform much or most of the
supervisory function without effective oversight of the head
trader's activities. This proved to be a flaw in the
supervisory structure in some instances when the head trader
engaged in one or more of the violations of the federal
securities laws found by the Commission in these proceedings
to have occurred. Further, certain respondent firms did not
provide their Compliance Departments with resources adequate
to perform their assigned responsibilities relating to
trading in the Nasdaq market. The complexities of the
Nasdaq market and trading in Nasdaq stocks will often
require, at firms with sizeable Nasdaq trading departments,
a substantial commitment of compliance resources.
:=) Gary Swancey
Happy Birthday, Gary! My friend in SF E-mailed me asking if CBQI had shut down & gone under. He doesn't follow these threads, just watches CNBC all day & trades Big-Time. I got him into CBQI, he has chosen to stay in. But that was his take on the day's (non) activities, FWIW. Blessings... JB
Can you imagine the outcry if the SEC was to tag a major sting on naked shorters and their aliases used in "Cybersmear" It would probably dwarf the P&D stings.
Gary
:=) Gary Swancey
HOLY cow!!! That's all I can say...
Swancey, I think we are right...SEC, NASD about to make life really rough on these manipulators playing the DOWNSIDE!
Fm
Very interesting Gary. Thanks. (:>}))))
OB
Opps someone just got nailed for naked shorting.
NASD Regulation Bars John Fiero, Expels Fiero Brothers, Inc., and Imposes $1 Million Fine for Illegal Short Sales, Market Manipulation and Extortion
WASHINGTON, Jan. 8 /PRNewswire/ -- NASD Regulation, Inc., today announced
that an NASD Regulation Hearing Panel barred John Fiero, expelled his firm,
Fiero Brothers, Inc. and ordered a fine of $1 million for engaging in a
fraudulent short selling, extortion and manipulation scheme.
On Feb. 6, 1998, NASD Regulation filed a complaint against Fiero and other
co-conspirators alleging that they colluded to drive down the price of 10
Nasdaq securities underwritten by now-defunct Hanover Sterling & Co. during
January 1995, and February 1995, through illegal short selling of those
securities. This "bear raid" scheme involved Fiero and others obtaining
nearly 1 million shares, units and warrants from Hanover Sterling at below
market prices through the use of threats and coercion to cover their
illegally-created short positions. Ultimately, the short selling scheme led
to the failure of Hanover Sterling on Feb. 24, 1995, which was quickly
followed by the collapse of its clearing firm, Adler, Coleman Clearing Corp.,
and the appointment of a Security Investors Protection Corporation trustee for
Adler Coleman.
In the decision, the Hearing Panel found that Fiero participated in an
extortion scheme by purchasing $12.1 million of securities from Hanover, at
prices $866,500 below the then-prevailing market price. Fiero used these
securities to cover his firm's short positions, and resold the rest, primarily
to other short sellers involved in the scheme. Hanover agreed to sell the
discounted securities to Fiero in attempt to end the shorting of the stocks.
The Hearing Panel also found that Fiero violated short selling rules from
Jan. 20 through Feb 23, 1995 by failing to make the required affirmative
determinations prior to engaging in short sales of the Hanover Sterling
stocks. NASD rules restrict "naked" short sales, that is selling a stock
short without ensuring that the stock can be borrowed or otherwise provided
for by settlement date, also known as an affirmative determination. The
Hearing Panel concluded that Fiero was not entitled to the market maker
exemption from the affirmative determination rule during the time his firm was
registered as a market maker because it was not engaged in bona fide market-
making transactions. Fiero manipulated the market for the Hanover securities
through his purchases and resale of the extorted stock and his illegal, naked
short selling.
Unless the matter is appealed to NASD Regulation's National Adjudicatory
Council (NAC), or called for review by the NAC, the Hearing Panel's decision
becomes final after 45 days. The sanctions imposed by the Hearing Panel are
not effective during this period. If the decision is appealed or called for
review, the sanctions may be increased, decreased, modified, or reversed.
The litigation of this case was conducted by the Enforcement Department
with assistance from NASD Regulation's Market Regulation Department. This
matter was investigated by the Market Regulation Department with assistance
from the Enforcement Department and NASD Regulation's New York, Denver,
Atlanta and Chicago Offices.
Investors can obtain more information and the disciplinary record of any
NASD-registered broker or brokerage firm by calling (800) 289-9999, or by
sending an e-mail through NASD Regulation's Web Site, http://www.nasdr.com .
NASD Regulation oversees all U.S. stockbrokers and brokerage firms. NASD
Regulation, The American Stock Exchange(R), NASD Dispute Resolution, Inc. and
The Nasdaq Stock Market, Inc., are all subsidiaries of the National
Association of Securities Dealers, Inc., the largest securities-industry self-
regulatory organization in the United States.
SOURCE NASD Regulation, Inc.
Web Site: http://www.nasd.com http://www.nasdr.com
Not sure what the wife has up her sleeve! LOL ... that quote goes along with the saying that I know less now than I knew when I was 18. Gary
Gary.....a very happy birthday! Will Liz be cooking your favorite possum with greens recipe tonight?
Here is a quote from Samuel Clemens: "Life would be infinitely happier if we only could be born at the age of eighty and gradually approach eighteen."
Yep everyday a little more wiser and knowing that I know now less than I thought I knew yesterday. Gary
!HAPPY BIRTHDAY! Gary!!!!! (old man) HEHEHE.
Frank
WHOA! Someone remembered. Thanks Anna ... you know it is the little things that are overlooked sometimes that mean so much to someone. Gary
Happy Birthday Gary.
Anna
It's just a matter of time Gary. People are going to be held accountable for their actions in this arena as well they should be.
OB
You got that right Smouch. I've got ZOLT on My data base again and will be watching it. I was playing with it when it was between 40 & 50 bucks a share. I think those days are over though.
Frank
Another precedent was set in Oct also. While we were involved in the presidental race seems the courts were not favoring cybersmears.
October 12, 2000
Florida Appeals Court Lets Decision to Unmask Anonymous Posters Stand
On October 12, a three-judge panel of the Third District Court of Appeals in Miami, Florida, denied a petition for writ of certiorari filed on behalf of anonymous John Doe defendants in a cybersmear lawsuit brought by J. Erik Hvide, former Chairman and Chief Executive Officer of Hvide Marine Inc. Last May, the lower court in the case denied a motion by certain of the defendants to quash a subpoena seeking to obtain the identities of the anonymous defendants, but stayed the ruling to permit an appeal. The effect of the Appeals Court's refusal to grant the appeal is to dissolve the stay, thus requiring compliance with the subpoena and identification of the anonymous posters. This was one of the first more than 120 known cybersmear cases that have reached the appellate court level. The three-judge panel consisted of Hon. Robert L. Shevin, Hon. David M. Gersten and Hon. John G. Fletcher. The plaintiff is represented by Bruce Fischman of Fischman, Harvey & Dutton, P.A. of Miami, Florida who argued the matter before the panel on September 20. The anonymous posters were represented on the appeal by the Florida office of the American Civil Liberties Union and Lyrissa Lidsky of the University of Florida School of Law who argued the appeal.
See:
Stacy Forster, Court Says Online Posters Have No Right to Anonymity, Wall St. J. Interactive Ed. (Oct. 13, 2000) (paid subscription required).
*************************************************************
December 29, 2000
SEC HALTS ALLEGED FRAUDULENT SECURITIES OFFERING BY MIAMI, FLORIDA BOILER-ROOM
SECURITIES AND EXCHANGE COMMISSION V. WEB HOSTING HEADQUARTERS PARTNERSHIP, DONALD E. RHOADES, KENNETH R. GROSSFELD, WAYNE L. PRICHASON, EDUARDO VILLAR, AND KARYN MILLER, ET AL., Case No. 00-4975-CIV-HIGHSMITH-GARBER (S.D. Fla., filed Dec. 28, 2000)
http://www.sec.gov/enforce/litigrel/lr16846.htm
*************************************************************
December 27, 2000
SEC NAMES WESTERGAARD, TWO ENTITIES IN INTERNET TOUTING CASE
http://www.sec.gov/enforce/litigrel/lr16842.htm
Gary
ZOLT wins in court and that has nothing to do with the bashers. They down play that stock and continue their campaign of goodwill bashing. How much is one suppose to believe when ZOLT is winning the cases in court where innuendo, fabrication, convenient logic and conjecture do not apply, only the facts.
But ZOLT is a prime example of what is going on in the message boards.
Eventually, the message boards are going to have to moderate the postings to keep innuendo and emotional BS limited to providing the facts.
If a poster calls someone a P&D then where is the proof. The trading records, copies mass emails of unrealistic projuections, admission of trading etc. What about proving the fact and supplying the underlying basis for calling someone a crook like where is the supporting documentation?
If someone is disgruntled because of being associated with the company previously, then what merit can you put on their spin?
Just seems to convenient, the company wins in court but the internet posters blow it off but they want to win in the courts to keep their aliases and their idenities hidden so they can post innunedoes and accussations that they should not ever have to support or prove in court.
Times are changing ... Posters should be held accountable for their accussations and goodwill (character) attacks.
Gary
This happens when a company tries to complain about the a debenture holder shorting, take (OTC: LONE) in April of 1999 when they tried to fight Thomson Kernaghan out of Canada.
This Court has considered NAC's other contentions in support of reargument and find them to be without merit, e.g., that NAC is entitled to a "set off" because Thomson has been making "short" sales of NAC stock resulting in nothing being owed to Thomson under the debenture; and that it is unlawful in other jurisdictions to escrow unrestricted shares.
http://www.courts.state.ny.us/nycdlr/issue2-5/kernaghan.html
Heck TK got aContempt Order Filed in Conjunction With The Company's Pending Suit Against LifeOne For Failure To Deposit 4 Million Shares Court Intends to Incarcerate LifeOne's CEO
On March 16, 1999, New York Supreme Court Justice Charles E. Ramos charged LifeOne in contempt for refusing to obey the Court's Order on August 27, 1998 to deposit four million unrestricted shares into an escrow account of Thomson Kernaghan & Company, Ltd.
LifeOne has again been ordered to place the shares in escrow and will now be fined $10,000 by the Court for each day since August 27, 1998 in conjunction with its previous failure to comply with the Court's Order. The Company will also be fined $20,000 for every day it flouts the Court's March 16, 1999 contempt Order. LifeOne will be responsible for all attorneys' fees and expenses incurred by Thomson Kernaghan & Company, Ltd. The payment of monetary fines and attorneys fees may be delayed until the bankruptcy filing against LifeOne is dismissed.
Subsequently, in connection with ongoing arbitration in New York, Thomson Kernaghan filed for emergency relief to prohibit LifeOne from carrying out its recently announced plan to place all of its assets in subsidiaries which would be spun off to existing shareholders. On April 12, 1999, New York Supreme Court Justice Ramos granted Thomson Kernaghan's motion. Justice Ramos also stated that it was his intent to order LifeOne's CEO, T. Brent Chapell, to be incarcerated until LifeOne complied with the Court's March 16 Order to deposit four million shares.
Companies like Thomson Kernaghan are responsible for many convertible debentures ... research JAWZ, CCCZ, RTIN,T:XPL, ASE:DDI, SMRI, CDN:NGAM, SXML (this one is not to bad), RKS.T etc.
However, http://www.nationalpost.com/financialpost.asp?f=990112/2173914 shows the debenturer will sue chat posters and message boards in a heartbeat.
Just unbelieveable what goess on in the convertible debenture market. However some of the bigger stock do just fine because they have the clauses that protect them basically.
All a matter of how deperate the company is and how much are they willing to give the company up for in intital $$$$.
Gary
Old blue, pretty balsy ceo!
Gotta give him credit. Hopin to make some bucks on this pup.
That is interesting Smouch. Back in 96 before I ever had a computer and had any idea about chat rooms ZOLT would run up and down like a yoyo. I got into one of those runs and made a couple of bucks on it.
Frank
Gary, here is a whopper worth bookmarking!
Came up on my radar screen last week.
http://www.ragingbull.altavista.com/mboard/boards.cgi?board=ZOLT&read=169
Very interesting business too!
I believe we could see a big Basher bust in the near future. BAshing a stock down for gain is extremely popular and probably more profitable with lower risk than the P&D. Here is an exerpt from a speech by
[1]Our experience patrolling the Internet leads us to
conclude that the scams taking place online are the same
basic scams that have long plagued our markets. They
mainly break down into three categories. The first is
sham offerings. Here, con artists create fancy web sites
and use mass e-mails, or "spam," to pitch securities in
offerings that either do not exist or are misleading.
These scams are often exotic. For example, we have seen
interests pitched in eel farms, coconut plantations, and,
my personal favorite, projects to explore near earth
asteroids.
The second category of Internet fraud is market
manipulation _ most often the "pump and dump" scheme.
Here, fraudsters circulate widely false and misleading
information to drive up a stock's price, then sell their
shares at the inflated price. When the scheme is
complete, the share price normally collapses. They work
the other way, too _ a practice known as the
"cybersmear." Often perpetrated by short sellers, this
fraud is intended to driven down a stock price on the
basis of false information. These scams routinely
involve "microcap" stocks -- which are low-priced thinly
traded securities. In conducting these scams, the
Internet has served as the modern day "boiler room"
replacing the traditional army of salespersons working
the phones with scripts in hand.
Finally, we have witnessed illegal touting. This
occurs when promoters are paid to make positive
statements about a company without fully disclosing that
they have been paid to do so. The wealth of information
available over the Internet aids investors only to the
extent it is credible and reliable. If the information
is simply "bought and paid for," investors have a right
to know.
When the SEC decides to check the blue sheets of a crashed stock hangin people they will probably discover someone shorted the fire out it on for gain. 144, Convertible Debenture and Convertible Preferred are notorious for this considering most cybersmears are expanded beyond the realm of actual truth. 90% innuendo and 10% fact. Mazing how the bashers, FUDs think they are going to be able to get away with it.
Sooner or later the SEc is going to make a bust and it will probably gain them more kudos than any P&D. Especially since the scammers realize that P&D will get nailed. Why play the hardship of upward when it is so much easier and less risky for more gains to play the downside?
They have a mass collection of cards they can play to get sells.
Gary
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