Penny Stock Wall Street

[buyittradeit]

THIS MESSAGE SERVES TO PROVE HOW OUR MINDS CAN DO AMAZING THINGS! IMPRESSIVE THINGS! IN THE BEGINNING IT WAS HARD BUT NOW, ON THIS LINE YOUR MIND IS READING IT AUTOMATICALLY WITH OUT EVEN THINKING ABOUT IT, BE PROUD! ONLY CERTAIN PEOPLE CAN READ THIS RE POST IF YOU CAN.


pretty neat....

[JunkStockLady]

R3 is what I couldn't figure! Would that be re?

[pennystockwallstreet]

If you can read this you have a strong mind:

TH15 M3554G3 53RV35 TO PR0V3 H0W 0UR M1ND5 C4N D0 4M4Z1NG TH1NG5! 1MPR3551V3 TH1NG5! 1N TH3 B3G1NN1NG 1T WA5 H4RD BUT NOW, ON TH15 LIN3 YOUR M1ND 1S R34D1NG 1T 4UT0M4T1C4LLY W1TH OUT 3V3N TH1NK1NG 4B0UT 1T, B3 PROUD! 0NLY C34RT41N P30PL3 C4N R3AD TH15. R3 P05T 1F U C4N

[pennystockwallstreet]

Debt Deal Done: What Does it Mean?

By Daniel Gross

At long last, a deal on raising the debt ceiling and cutting spending has been reached. The agreement, which the White House dubbed "a Win for the Economy and Budget Discipline," includes: a $2.1 trillion increase in the debt ceiling, 10-year discretionary spending caps generating nearly $1 trillion in deficit reduction (balanced between defense and non-defense spending) over ten years. What's more, a super Congressional committee will come up with a package of $1.5 trillion more in cuts and/or revenue enhancements that is guaranteed an up-or-down vote by December. And if Congress can't agree to a package, automatic cuts will commence in 2013, split 50/50 between domestic and defense spending (exempting entitlement programs like Social Security and Medicare).

Should it pass, the deal will have far-reaching consequences. The conventional wisdom on the politics of the deal have already hardened: good for the GOP and especially its Tea Party base; bad for President Obama, who gave in to repeated threats; bad for Congressional Democrats, who were marginalized; a slight gain for the U.S., which finally affirmed it would live up to its financial obligations. Much of this conventional wisdom is likely to prove wrong in time. And the impact is likely to be larger in the coming months on the markets, the economy, consumers and taxpayers than in the coming months than on politics.

Is this deal good for investors? It sure seems to be a plus for global stock markets, as Asian stock markets and U.S. stock futures rose after the deal was announced. It's difficult to see why, though. The U.S. stock market isn't a barometer on the U.S. economy any more. The typical member of the S&P 500 already gets about half of its revenues (and almost all its growth) from overseas. It's a truism that equity markets hate uncertainty. And the quick positive reaction is the latest example of the risk-on/risk-off trade. When bad things happen, or when investors think bad things are going to happen, they sell stocks. When anxiety fades, they buy stocks. That's what is happening now.

But when there are crises over government debt, doesn't the real action take place in the bond markets? Yes, it does. And the action in the U.S. bond markets has been odd in recent weeks. As the U.S. careened toward a debt crisis, people and institutions around the world continued to buy U.S. government bonds, pushing interest rates down further. In fact, last Friday, the 10-year bond closed at 2.8 percent. Investors never really believed that the U.S. would not pay its debt. They did believe, correctly, that large budget cuts would slow growth in an economy whose rate of growth is already slowing. And that tends to push interest rates down. So bonds may fall as investors embrace risk again. But over the long term, this deal in and of itself, is likely to act as downward pressure on rates.

Isn't slower growth is a potential negative factor for stocks? Exactly. While the deal takes uncertainty over debt payments off the table, it does contribute to other types of certainty for stocks in general, an for certain classes of stocks. For example, the deal calls for real cuts in defense spending (with the prospect of much more), which would be negative for the large defense contracting/aerospace complex. And as a general rule, actions that reduce domestic demand (as across the board budget cuts would) is a negative for companies that derive a disproportionate share of their revenues from the U.S.

If this is resolved, can we get back to worrying about the ongoing crisis in Europe? Yes. As the U.S. flailed toward an agreement, Europe has continued to grapple — or fail to grapple — with its own sovereign debt crisis. Spain is paying high interest rates to borrow. There's no path toward a resolution of Greece's severe fiscal problems. And don't look now, but Cyprus, the island nation whose banks are heavily exposed to Greece and that just suffered a huge power plant explosion, could be the next problem spot.

How will this deal affect growth? Poorly. Government spending is demand. If you don't believe it, try asking Wal-Mart or any food retailer what would happen to sales if food stamp payments were to be disrupted. As we've noted many times, government, at all levels, has already been throttling back employment for many months. The private sector is driving growth and will increasingly have to do so on its own. Cuts in discretionary spending, even if they are backloaded and spread over ten years, will mean less money for scholarships, for education, for health care, transportation and infrasturcutre — all vital parts of the economy.

How will this affect consumers? There was great concern that a debt crisis would cause interest rates to spike and ignite inflation. That prospects now seems unlikely. In fact, interest rates remain extraordinarily low. On net, for those with jobs and decent credit scores who want to borrow, the deal is likely to be a plus.

And America's long-suffering taxpayers, who pay the salaries of the politicians who brought us to the brink of default? How do they come out?

That remains to be seen. The big concern among many was that this crisis would result in significant tax increases. All the big discussions -- the Simpson-Bowles Commission, the Gang of Six in the Senate, the potential Grand Bargain between President Obama and House Speaker John Boehner -- included revenue enhancements, the elimination of loopholes, the termination of tax credits. In other words, tax increases on some people. And at time when income tax rates and overall tax receipts as a percentage of GDP are as low as they've been in recent history, the prospect of making a huge dent in the deficit through spending cuts alone seemed politically unviable. And yet, thanks to a combination of Republican intransigence, moderate wishy-washyness, and Democratic lameness, the deal included no revenue enhancements. People worried about higher taxes have dodged a bullet, for now.

So taxes will never go up? Remember, I just said "for now." As always, the devil is in the details. As the White House noted in its fact sheet, tax cuts are always just over the horizon. President Obama couldn't get Republican agreement to raise taxes on the wealthy, but he may not have to. Current law calls for the Bush-era tax cuts on income and investments to expire at the end of 2012. All that has to happen for taxes to rise is for President Obama and Congress *not* to agree on how and whether to extend them. And as this whole artificial crisis has shown, Washington as it is currently configured has a great capacity for not agreeing.

Daniel Gross is economics editor at Yahoo! Finance

[pennystockwallstreet]

Cellar Boxing

Part 1

There’s a form of the securities fraud known as naked short selling that is becoming very popular and lucrative to the Market Makers that practice it. It is known as “Cellar boxing” and it has to do with the fact that the NASD and the SEC had to arbitrarily set a minimum level at which a stock can trade. This level was set at $.0001 or one-one hundredth of a penny. This level is appropriately referred to as “the cellar”. This $.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations.

“Cellar boxing” has been one of the security frauds du jour since 1999 when the market went to a “decimalization” basis. In the pre-decimalization days the minimum market spread for most stocks was set at 1/8th of a dollar and the market makers were guaranteed a healthy “spread”. Since decimalization came into effect, those one-eighth of a dollar spreads now are often only a penny as you can see in Microsoft’s quote throughout the day. Where did the unscrupulous MMs go to make up for all of this lost income? They headed "south" to the OTCBB and Pink Sheets where the protective effects from naked short selling like Rule 10-a, and NASD Rules 3350, 3360, and 3370 are nonexistent.

The unique aspect of needing an arbitrary “cellar” level is that the lowest possible incremental gain above this cellar level represents a 100% spread available to MMs making a market in these securities. When compared to the typical spread in Microsoft of perhaps four-tenths of 1%, this is pretty tempting territory. In fact, when the market is no bid to $.0001 offer there is theoretically an infinite spread.

In order to participate in “cellar boxing”, the MMs first need to pummel the price per share down to these levels. The lower they can force the share price, the larger are the percentage spreads to feed off of. This is easily done via garden variety naked short selling. In fact if the MM is large enough and has enough visibility of buy and sell orders as well as order flow, he can simultaneously be acting as the conduit for the sale of nonexistent shares through Canadian co-conspiring broker/dealers and their associates with his right hand at the same time that his left hand is naked short selling into every buy order that appears through its own proprietary accounts. The key here is to be a dominant enough of a MM to have visibility of these buy orders. This is referred to as "broker/dealer internalization" or naked short selling via "desking" which refers to the market makers trading desk. While the right hand is busy flooding the victim company's market with "counterfeit" shares that can be sold at any instant in time the left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstrable demand for shares and a huge oversupply of shares which induces a downward spiral in share price.

In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser.

Cellar Boxing Part 2

An interesting phenomenon occurs at these "cellar" levels. Since NASD Rule 3370 allows MMs to legally naked short sell into markets characterized by a plethora of buy orders at a time when few sell orders are in existence, a MM can theoretically "legally" sit at the $.0001 level and sell nonexistent shares all day long because at no bid and $.0001 ask there is obviously a huge disparity between buy orders and sell orders. What tends to happen is that every time the share price tries to get off of the cellar floor and onto the first step of the stairway at $.0001 there is somebody there to step on the hands of the victim corporation's market.


Once a given micro cap corporation is “boxed in the cellar” it doesn’t have a whole lot of options to climb its way out of the cellar. One obvious option would be for it to reverse split its way out of the cellar but history has shown that these are counter-productive as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level.

Another option would be to organize a sustained buying effort and muscle your way out of the cellar but typically there will, as if by magic, be a naked short sell order there to meet each and every buy order. Sometimes the shareholder base can muster up enough buying pressure to put the market at $.0001 bid and $.0002 offer for a limited amount of time. Later the market makers will typically pound the $.0001 bids with a blitzkrieg of selling to wipe out all of the bids and the market goes back to no bid and $.0001 offer. When the weak-kneed shareholders see this a few times they usually make up their mind to sell their shares the next time that a $.0001 bid appears and to get the heck out of Dodge. This phenomenon is referred to as “shaking the tree” for weak-kneed investors and it is very effective.

At times the market will go to $.0001 bid and $.0003 offer. This sets up a juicy 200% spread for the MMs and tends to dissuade any buyers from reaching up to the "lofty" level of $.0003. If a $.0002 bid should appear from a MM not "playing ball" with the unscrupulous MMs, it will be hit so quickly that Level 2 will never reveal the existence of the bid. The $.0001 bid at $.0003 offer market sets up a "stalemate" wherein market makers can leisurely enjoy the huge spreads while the victim company slowly dilutes itself to death by paying the monthly bills with "real" shares sold at incredibly low levels. Since all of these development-stage corporations have to pay their monthly bills, time becomes on the side of the naked short sellers.

At times it almost seems that the unscrupulous market makers are not actively trying to kill the victim corporation but instead want to milk the situation for as long of a period of time as possible and let the corporation die a slow death by dilution. The reality is that it is extremely easy to strip away 99% of a victim company’s share price or market cap and to keep the victim corporation “boxed“ in the cellar, but it really is difficult to kill a corporation especially after management and the shareholder base have figured out the game that is being played at their expense.

As the weeks and months go by the market makers make a fortune with these huge percentage spreads but the net aggregate naked short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring MMs. The predicament they find themselves in is that they can’t even stop naked short selling into every buy order that appears because if they do the share price will gap and this will put tremendous pressures on net capital reserves for the MMs and margin maintenance requirements for the co-conspiring hedge funds and others operating out of the more than 13,000 naked short selling margin accounts set up in Canada. And of course covering the naked short position is out of the question since they can’t even stop the day-to-day naked short selling in the first place and you can't be covering at the same time you continue to naked short sell.

Cellar Boxing Part 3

What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet Negative Poster”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on.

The truth of the matter is that the single biggest asset of these victim companies often becomes the astronomically large aggregate naked short position that has accumulated throughout the initial “bear raid” and also during the “cellar boxing” phase. The goal of the victim company now becomes to avoid the 3 main goals of the naked short sellers, namely: bankruptcy, a reverse split, or the forced signing of a death spiral convertible debenture out of desperation.

As long as the victim company can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes name changes, CUSIP # changes, cancel/reissue procedures, dividend distributions, amending of by-laws and Articles of Corporation, etc. Nevada domiciled companies usually cancel all of their shares in the system, both real and fake, and force shareholders and their b/ds to PROVE the ownership of the old “real” shares before they get a new “real” share.

Many also file their civil suits at this time also. This indirect forcing of hundreds of U.S. micro cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes the U.S. financial systems have ever sustained.

In a perfect world it would be the regulators that periodically audit the “C” and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs, clearing firms, and Canadian b/ds, and force the buy-in of counterfeit shares, many of which are hiding behind altered CUSIP #s, that are detected above the Rule 11830 guidelines for allowable “failed deliveries” of one half of 1% of the shares issued. U.S. micro cap corporations should not have to periodically “purge” their share structure of counterfeit electronic book entries but if the regulators will not do it then management has a fiduciary duty to do it.

A lot of management teams become overwhelmed with grief and guilt in regards to the huge increase in the number of shares issued and outstanding that have accumulated during their “watch”. The truth however is that as long as management made the proper corporate governance moves throughout this ordeal then a huge number of resultant shares issued and outstanding is unavoidable and often indicative of an astronomically high naked short position and is nothing to be ashamed of.

These massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully the regulators will come to grips with the reality of naked short selling and tactics like "Cellar boxing" and quickly address this fraud that has decimated thousands of U.S. micro cap corporations and the tens of millions of U.S. investors therein.

---
link back .. original post courtesy of roger wilco

[Webwyrm]

GRDO Merger news on their IR page....

25MAR2011
Attention Share: Holders

It has come to our attention that a 10:00 pm (CST) conference call directed
towards GRDO shareholders has been announced via a social network platform.
The message within the announcement is as follows:
“Please announce to anyone that is a shareholder that I am going to hold a
conference call tonight. If they would like to attend the call they will need to
contact me personally for the number. It will be at 10PM (CST).”
We would like to clarify that this conference call is not hosted or sanctioned by
Guard Dog Inc. Any message or information discussed on this call has not been
approved or authorized by Guard Dog Inc or its officers.
We would like to further clarify that the parties of the recently announced merger
are still operating within a quiet period. An official announcement will be made
via a press release once all legal requirements have been satisfied. Guard
Dog Inc is not merging with, nor powered by Assurance Inc. An announcement
will be made early next week after our notification to FNRA, and another upon
completion of and the final stages of the merger.
Thank you for your patience and support,

James Watson.
CEO and President
Guard Dog Inc.

[pennystockwallstreet]

[blademan]

I haven't been here in awhile. So I wanted to check in and throw out the plays I'm in FWIW. All are very solid chart bouncers with solid SS's.

ADSV
TCLN
GOHG
IGSM
NWTT, News today
WTCT
AAVG, possibly news or awareness next week I'm hearing

Just a few chart bouncers I'm in. Hope you all have a great New Years!!

[Peter Smithson]

Dear Followers,

Hot Penny Picks is an active helpful informational board that is posting on older dried up boards that have one to zero posts a day to help grow its following and help diversify its posters. Our goal is to become one of the top boards with a couple hundred posts a day and a good place to share DD and bounce ideas off of one another. Were a growing board gaining a couple followers a day and have on average 75 posts a day. We have made several picks all returning over 100% so far and will continue to keep giving its members Hot Picks!

http://investorshub.advfn.com/boards/board.aspx?board_id=19162

Hot Penny Picks

[pennystockwallstreet]

[GREENGOLDRUSH]

KING looks like it's about to blow hard. A golden cross is about to happen. This in is looking really good. The chart says it all. Get in before the masses.

[ballantyne]

Good deal. PrMO will make money for us in the near term.
I've learned long ago not to cry over a missed opportunity. I've gotten out of some dogs that ran as soon as I did. Oh well, there's money to be made, especially among us friends.

[megan1o]

I did ballantyne 2 more mil @3.
So, a little higher this time - but that's fine.
2 out of 3 of mine ran today.
If we could just light a fire under that 3rd one of ours.

Sorry for the late reply - tis the season of overtime for me.
Of course if I had been in LOCN - I could have given notice..." monster run from $.0001 to $.315 or in other words a 52,400% gain"
There's always a next time - lol.

[Wrinkles]

Hi Guys, just book marked your board. Keep up the good work! Thanks to Ballantyne for the link and invite.

Wrinks

[ballantyne]

did you get in on PROM this mroning ? Looks like the run is about to start.

[4 MY T]

NATC......tomorrow.....

[ballantyne]

I think so here. It's a good bet.

[megan1o]

Thanks ballantyne,
I have few extra $$. I'll add in the am. Follow the money as they say.

[ballantyne]

Hey, I jumped into this a couple of weeks ago and bought some more today....The financials seemed to reinforce a lot of things I have been looking at. Without going into thosae details, I think all we need here is continued volume and exposure. The financial numbers will continue to improve..exposure, volume and this one rocks. My new goal is 001 - 0015 right now in the near term.

[megan1o]

OMG,
I just looked at PROM. 100 buys 1 sell.
Can't tell you how many times I was ready to throw this one under the bus. Anyone know if it's just the financials or something more?

[4 MY T]

you mean NWTT right??

[Vipyr]

Been following CIST for quite some time. Had off day today, but still keepin eye on it.
You sent me a PM but I dont have PM so have to respond to your question here regarding ENTI..as that was what my respond to that other guy was about. Yes to your questions in PM.

[ballantyne]

Yes. Quarterly is out and news is good. This one should explode soon.

[pennystockwallstreet]

PRMO

[4 MY T]

take a look at CIST tomorrow.....

[4 MY T]

sound good to me......

[4 MY T]

Ths is a good thing......I like it.....

[megan1o]

Hi Chief,

Glad your here.
PSW has created a little gem with this board.
As ballantyne said it's a good place to discuss money makers or stocks your keeping an eye on or anything else. And it's away from the bashers and no one will delete posts. What more could anyone ask for...!

[ballantyne]

Any stock you want to discuss is fine. That's why we are here, to help each other and discuss money makers.

[4 MY T]

yes..very nice board.......

[4 MY T]

Is it o.k. to talk about NWTT here? or will this post get vaporized?

[megan1o]

Very nice board PSWS...

I've been in PRMO since August - holding about 2mil.

I also have a bit in UNVC but watching it closely to add.
It ran last week on Q10news - but there's speculatioln of a merger. Here's a little dd.

UNVC

The company itself is privately owned by Dr. David Dalton...
It's start up company that plans to deliver prescription drugs directly to doctors’ offices and patients’ homes across the country is looking at Louisville as the site for its central fill pharmacy. There's speculation of a merger between this company and Dalton's other company. Dr. Dalton also founded Pharmacy Services, Inc., a pharmacy fulfillment center for correctional and other institutions, with facilities in Maryland, Tennessee and Pennsylvania.

[pennystockwallstreet]

Thanks! We have good people here.

btw, keep an eye on PRMO! :)

[OTCPennyTrader]

nice board here pswallstreet! i'll keep my eye on it:)

[detailman]

EWRC ready - set go!!! Up 100% broke bottom - triple zero 2 to 0.005 , need volume !!!

[blademan]

HGGI, SMPP, breakouts..

[blademan]

By the way... MXXH went huge. I have played that stock 3 times now. I had a sell set for .0026 and the MM's grabbed it before I could get it moved up! My entry was .0015. Very good stock, has a run about once every 2mos or so. Getting more awareness now though. I'm guessing a sell down mon. I've traded it 4 times from .0015-2-3 now. Very under valued, and great SS.

I'll buy it at .0015 or lower all day long.

I always have a sell set on all my stocks, and it moved too fast for me. Profit is profit...

[NOBO]

I'll check it out--thanks

[blademan]

Sure...looks like a bouncer. I'm not in yet..watching. I did buy ADSV.

[NOBO]

Thanks for the GRDO mention

[ballantyne]

Yea, man. I agree.

[blademan]

Lots of buzz and big hitters there. Should be fun once the momo really starts!

[ballantyne]

I'm going in on Moday.

[blademan]

Yea...saw the SS on that, I'm watching. Might be an doubler for sure.

GRWW .0001 lotto that is getting smacked around right now and for the last week or so. 2bil ish O/S. Easy doubler there as well. Loaded some more today.

[ballantyne]

Yes sir. PRMO. Lotto play but not too much to lose at this price with the potential upside. Even with the new A/S there's potential - worse case - I think of .00075. More news than gold sales and I believe it will jump much higher.

[blademan]

Which one? PRMO?

[ballantyne]

I got me a handfull of shares earlier in the week. I think we'll see the volume as soon as there is some announcement about the gold sales and the other off shore news.

[blademan]

Been watching that. Take a ton-o-volume, but might break!!

[pennystockwallstreet]

Keep an eye on PRMO ;)

[blademan]

TCLN chart break!