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Agreed.
Wow, looks like ucoi bounced a little eh? Interesting I guess, still lots under water I am sure.
MrGoodBuddy WICK50 NEEDS TO KNOW....
That this is a Javelin Index board...
Who created the Javelin Index? Why Javelin Advisory Group...
In fact, it is the name of thier quarterly newsletter, The Javelin Index... Soooo it would seem perfectly natural that there would be a board to talk about stocks in the Javelin Index.
What is The Javelin Index?
As Javelin Advisory Group has expanded its services
related to acquisitions and reverse merger transactions,
there has been an increased interest in tracking the
status of our current clients as well as new clients as
they are signed and new deals as they are structured.
The Javelin Index was conceived as a medium through
which those who have expressed such an interest can
follow the activities of our clients and the transactions
with which we are associated.
We currently plan The Javelin Index to be a quarterly
publication, but with several acquisitions and reverse
merger transactions currently pending, we may publish
it more frequently as events dictate.
In addition to The Javelin Index, we have created a
blog on the Javelin website through which I will be
able to communicate more regularly on the activities
of Javelin and its clients. As a private company, we
do not regularly issue press releases, so this will give
the opportunity for a more timely reporting of our
activities, especially related to the status of existing
transactions as well as the sourcing of new clients.
This is an exciting time for Javelin Advisory Group and
its network of associates, as we are involved with a
number of high profile transactions and have a fairly
steady fl ow of potential new clients. Much of this
attention was first generated by the pending acquisition
of Aero Exhaust, Inc. by Franchise Capital Corporation,
a Javelin client for which I serve as CEO. This was
planned as an interim management function, which is
a role I will occasionally fulfill in the case of shells that
do not have existing management to shepherd the
company through the reverse merger process.
Beyond our existing client base, we are also being
presented with additional potential clients through our
network of associates. We expect that as current clients
move forward and require fewer of our resources, we
will begin our work on behalf of new clients.
This is one of the reasons for my upcoming trip to
China, where I expect to be looking at several privately
held operating companies that are seeking to listing in
the U.S. markets. While we will be selective in the
Chinese companies that we take on, experience has
taught us that there are high quality brick-and-mortar
companies with significant revenues and assets that
will deliver long-term value for shell shareholders.
These are the types of companies we will be targeting
for current and future shells we represent.
I hope that readers of The Javelin Index will find it to
be a useful publication and will continue to track the
progress of Javelin Advisory Group and its clients.
Best regards,
Steven R. Peacock, Managing Director
I agree with Mr. Peacock, there is an increased interest in client companies, future mergers and the way deals are structured.
As such, there should be a board to discuss current and future plays as they arise.
http://www.javelinadvisory.com/upload/Javelin%20Newsletter%20_%20Sept07_Final_Final.pdf
Derby
He's in charge of advertising for this board.
Thanks for your help w....50!
No problemo. btw...check this out...
dhack_666
07-24-2004, 02:15 PM
I am trying to decide between the Aero Turbine or the Magnaflow. I have had the Magnaflow on my last two truck, and I have no complaints. I just want some opinions on these two, as in which is louder? Better performance, gas mileage, etc..
I have the Aero Turbine and left the stock resonator on but they make an after market resonator as well. It is still load with the resonator. I get a bit better Gas milleage but I have been told it takes a few miles for the computer to adjust. The sound file they have on their site is dam close to mine. I think the Aero has a deeper more base sound then the flowmaster though, But that's just me. I work in Windsor at the Chrysler mini van plant and their are quite a few of the 2003 and 2004 1500 Hemi's with Flowmaster and Aero Turbine mufflers as well as dual exhaust but I found the duals are TOO loud.
pietro, Javelin got 31,000,000 free-trading shares, 50,000,000 shares to Shane Traveller, and $20,000 per month for putting the "deal" together on FCCN.
Did Javelin send any FCCN supporters a Thank You letter yet?
Good luck
Agent,
I read this post you copied from some other board, and while there were parts of it which I'm sure the admins would agree would be TOU violations, the vast majority of the post was on-topic, so I have modified it, and rather than put this on the iBox, felt it did belong here in modified format.
Again, credit agent1107 for this post.
Got this from another board...
This guy should call a few Aero dealers right off of the Aero website, not only are some of them no longer ordering PRODUCT from Aero, the reviews from some of those "Dealers" is less than supportive of the Aero product, I have Heard "LOUD"......."obnoxious".......and apparently QUALITY issues surrounding this muffler, in addition to it not living up to its ADVERTISEMENTS! And that is directly from some dealers that are listed on the Aero website, No one here has to believe a word I just posted but do yourself a favor and just call some of those dealers and ask the following questions.......
1. Ask them what is the best Muffler that you sell for your car or truck and see what they say......write down the price when they tell you.
2.Then ask them about the Aero muffler, say you saw it advertised and ask about how that compares to the one they just told you about if the Aero muffler was not the first one they recommended and then ask the cost.
I think you will see that this muffler is not all it is being hyped to be here on these boards, and that the fuel mileage and horsepower gains being touted are probably not reality........otherwise those dealers that I spoke to would have promoted the Aero over the other mufflers instead of them saying "ya want me to be honest" cause that is what one of them stated as he went on to talk about how he no longer orders the Aero products as they had quality issues and were very loud and obnoxious sounding........by the way that was from a midas dealer............
The other dealer I spoke to said if you want performance and quality......go with a magnaflow cat back system and I would not be sorry!
The Midas Dealer had no idea his store was listed on the Aero website........
Like I said........pull up the aero website, find a dealer near you and call about 4 of them and ask those questions in that order and see what those dealers are promoting and what they are saying about the aero muffler products.........I would bet it mirrors what i found out.....and to be fair there was 1 or 2 that did support the Aero product when I called but I forgot to ask the Questions in the order I stated above so when I asked about the Aero I think they were looking to make a sale.....and one of those dealers stated he uses the TORNADO device in his intake and sounded like he was not very knowledgeable about performance products, he was raving about his v10 getting 13 mpg with the aero exhaust,a K&N filter and a TORNADO intake device.........all 3 of those and he is only getting 13 MPG? WOOOOOHOOOOOOO!!!!!!!!
Make the phone calls if you are invested or thinking about investing in this stock.........information is good...............and ya have to ask yourself one thing when you are getting this information and that is WHY?
Why did Aero do this deal with Peacock?
Why is the Transfer Agent Gagged?
Why did Peacock Resign as CEO but retained as a "CONSULTANT" with powers like issuing new stock,Issuing of the PR's,Answering investors Phone Calls,Decision making on future mergers/acquisitions,etc...etc.....
Its all in the 8K defining Peacocks role as a consultant under the guise of his company Javelin........anyone notice how they did not PR the fact that Javelin was retained as a "consultant"? And has anyone ever seen a consultant with this much decision making or power?
If you think Hunsaker is in control of this company you are sadly mistaken, Peacock was and is in control of just about every aspect of it and has been since day 1, if you look at his other companies you will see that they all have the same IR company using Andrew as the IR guy and they all use the same Transfer Agent which is GAGGED and that is Transfer on Line......the other comanies are GRXI and CLXN where Peacock is very much involved, I believe he is the CEO on both companies.
This is nothing more than creative financing and issuing of stock or more to the point....a pumpndump with massive Dilution associated with it.......FCCN is a perfect example of smokenmirrors and the PPS tanking is the proof..........and the 8K is the Proof.....
The Deal with Dr.GAS should it happen will most likely result in more shares being issued to both the Officers of Dr.Gas and of course the company that brokered the deal........The "consultant" Javelin or Mr.Peacock to be more specific which will result in further Dilution of the stock and issuing of many, many more shares and the pps will only drop further and further once they announce the deal or release another 8K detailing the specifics.
The End result will be a Reverse Split and or A/S increase which will pretty much wipe out existing shareholders but you can rest assured Peacock and the Gang will have made a bundle off of the whole thing.......
Once this has run its course then Peacock and Javelin will just focus on one of the other companies they have sitting in the wings ready to repeat the same process they did here...........GRXI and CLXN.......stay tuned and mark this post........
LOL!! you think Bryan and Peacock are building something? ROFLMAO!! well yes they are..........THE SIZE OF THEIR BANK ACCOUNTS ARE BUILDING!!!!!!!!!!
And I do not post for money, pure entertainment and knowledge seeking, try and stay focused here.............Hunsaker is a PAWN in PEACOCKS game, if you had read the 8K you would know that.........
See ya never know who is who here but what we do know is what has transpired since the announcement of this merger and the release of the 8K...........the PPS has tanked......many people resigned............that is reality and the biggest one of all again is the PPS has tanked all while operating under a GAGGED TRANSFER AGENT! DILUTION ANYONE? SERVE IT UP BOYS! Reverse Split and or A/S increase on the HORIZON and that is a CERTAINTY.......count on it..........
jmho/caution
I would like to see arguments against the information contained in this post, sticking again to the company situation that is shown on the post.
IMO/FWIW
FCCN will be well in to the .0030 area this week IMO and the other javelin plays are also continuing to slip.
CLXN is down -28% today so far!
Someone said it best a few days ago, its a no win situation for shareholders in peacock/javelin plays because if they complete an acquisition such as with the Aero deal then many shares are givin out to all parties (DIlUTION) and the PPS tanks,
If they don't execute an acquisition then the pps continues it's downward spiral anyway so whats the difference?
It does not appear that JAVELIN/Peacock have any interest in shareholder value, they seem to seek out companies that are struggling financially and offer them a small piece of the PIE and heck what do they have to lose? Its all money to them!
I have zero confidence that Peacock will ever have a company or execute an acquisition that benefits the shareholders in any way shape or form, what I do have confidence in is that He will continue to masquerade these acquisitions (pump them) via companies like Equity Digest and through his favorite IR Guy A.Beyer all who are getting paid as well, seems everyone is getting a piece of the pie except the shareholders.
Agent1107
Nice find, they were moving to become a BDC, Peacock's specialty, could be the missing link....
"During this past year, eCom Corp. has focused on becoming an investment company. Under this direction, eCom will make minority investments in high potential companies domiciled within the United States. The equity and/or debt investments will range in form from convertible debentures to preferred stock.
eCom has already commenced with the execution of this strategy with announced investments in CacheStream Corp., Educational Services International Inc., and most recently in TTRHP, LC."
Derb
Wonder if these people still own 15 percent
of TTRHP, LC (AERO Exhaust).
http://www.theautochannel.com/news/2001/09/28/030297.html
Penny, that was a good lesson. Thanks.
Derb. Drone is something all performance mufflers have. Type in "borla drone" "flowmaster drone" "magnaflow drone" etc. in google. It's just something one must live with if you want high performance exhaust unless you want to install a resonator. I hear they now have a resonator/muffler in one unit. I restore 1967-1971 chrysler hemi cars and some have resonators and mufflers direct from the factory. All depends what you want. If you want a quiet restricted exhaust leave the factory junk on. If you want free flowing exhaust you deal with the noise or add a resonator. I for one, with the rediculous gas prices want to hear my gas guzzling big block as much as possible! =)
LoanStew, I think the problem and perhaps the decline in muffler sales might be attributable to Aerodrone Syndrome.
One person when ordering was very apprehensive about the drone and hoping that he would not end up with a very expensive ash tray.
Another got used to it but when he had friends in the car they complained about it. It seems to be airflows at certain RPM's. The speed most drive when cruising distance 70 to 75 but varies.
http://www.google.com/search?hl=en&q=%22aero+turbine%22+drone&btnG=Search
http://www.google.com/search?hl=en&q=%22aeroturbine%22+drone&btnG=Search
Derb
EarnestDD,
Sounds to me like they can't seem to sell the items, so they're desperately tossing them out there at a discount, hoping someone will take them.
Any true INDEPENDENT evaluations of their product, not by shareholders of FCCN?
As in a real company that does these evaluations?
TIA
IMO/FWIW
I thought there might be 1 or 2 mufflers on the Ebay site ... but there are 113 new Aero mufflers for sale.
And some sellers/dealers have got multiple quantities for sale.
Agent1107, in this day and age, I would not doubt if Aero sold the rights for an E bay distributorship.
Derb
Question: Why would people be selling AERO
Exhaust mufflers on EBAY?
Javelin Play: Focus UCOI
The UCOI board has grown significantly quieter as shareholders contemplate the effects of an up to 500 to 1 RS.
That along with the preferred shares that can take a majority interest in the company that are not affected by the reverse of the common share and retain thier one to one conversion.
These shares were designed by Javelin executives for Unico management.
Unfortunately, the shareholders seem to think that by just voting no, they can change things.
The reality is that there is already enough debt on the books to reverse the stock another time at the lawsuit rates they are currently settling at.
Unless shareholders are able to wrest a non dilutive dividend of the same preferred shares that management has in thier pocket, they are lost.
Derb
If there weren't buyers the finance companies wouldn't be able to dump....
Thus IMO is why you have your ta da moon posters on that board. To herd the sheep in....
Sad though that people cannot read between the lines. It is what is inbetween those lines that is the most important here.
I watch those L2s and dilution is obvious. When will the light at the end of the tunnel be reached here? Will it be before the R/S, so that at least some will come out with at least a tank top on?
This stock is only being manipulated by the company and the financers.
Pumper vs Basher
I would say the pumpers are the pigs on this one! IMO!
AERO and the other stocks are being shorted in Canada.
Obviously Aero/FCCN, UCOI, GRXI, etc. have turned out to be horrible investments and would have made excellent shorts. Do you have evidence that there's a significant short interest in any of those stocks?
Whatever the case, in ain't hard to
tell who's being dishonest on the FCCN
board. Typical BS to suck in buyers...
but worst then that, suggesting people
hold long-term, so "they" can continue to
trade the stock for all its worth, eventually
leaving a bunch of bagholders (naive) to
wonder what the heck happened when the PPS
tanks. Very pathetic and unnecessary...imvho.
Some are just naive, thinking bashers are the
bad guys. Thats what happens when you trust in
someone that "appears" sincere...LOL!
I have been there...stupid I was!
FCCN ON SUICIDE WATCH
Two prominent FCCN posters have landed themselves in the jailhouse. They did this by committing message board suicide, engaging in multiple posts that would ensure thier jailing.
Accident or intentional?
From observing the posts, it appears to be intentional, but why?
My guess is that they know from the settlement of the lawsuit that there will be an influx of shares dragging the price down.
Will they later return and claim after the drop that "Sorry, I was in jail and could not defend it."?
Seems to be a pattern worth watching.
Derb
FCCN - On my "Top Ten" list for 1000% gainers!
it has in the past!!!!!!!!!!!!!!!!!!!!!!!!!!!
weeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee
I have traded Aero some as well.
Interesting to see than you now seem to be a trader and not a long term holder.
We disagree however in your analysis of where the stock price is going.
I believe that it will not make it back to $0.01.
I do not believe that Dr. Gas will have any significant impact and that the Hype of Dr. Gas is already built into the share price.
I also believe that the size and profitability of Dr. Gas will prove to be another disappointment.
And in order to raise capital ... more dilution will be required by that greedy Javelin machine with their new fancy certificate printing press.
LOL
Close to 15K, It would be a lot higher if I had sold on the last run. But I decided that Peacock was generous to let me take 15K in profits on it over the past year that I would but long term in Aero.
Had you played Javelin stocks correctly by flipping you would have made a mint. That is undeniable. And that the best you can expect from Penny Stocks. I only made one mistake - not selling on the last run to .03. However FCCN will run hard again, possibly to .05 early next year. Yet another gift from Javelin!
How much have you made with FCCN this year Dr.?
I LOVE JAVELIN STOCKS:
GRXI: .0008 to .0055, .0011 to .0024 two hot runs! WEeeeeeeeeeeeee!
FCCN: .002 to .065, .009 to .018, .0065 to .034 !!! THREE RUNS IN A YEAR ! WOWZA
CLXN: .008 to .018 !
It's been a great year to play in Javelins land, they've produced better returns for people than most blue chips stocks have!
Congratulations to those who took advantage of the gifts given to you in 2007 by Javelin!
I sent a Christmas basket to Peacocks to thank him for all his hard work this year. Many of us made money on the Javelin plays. Javelin is a 'top notch' company
Big problem is too much competition,
which is why so many of them have
what you might call a "niche"...which
is fine and dandy for those companies.
AERO just went public, and is now faced with
returning shareholder value, in a market
with so many niche players...a heavy burden.
There are a number of recognizeable name
brands out there with many years in the
market. AERO Exhaust will need to continually
market themselves to gain more name recognition...
and try to create a "coolness" factor among
auto enthusiasts. Just surf the internet, and
do an "unbiased" assessment. You will discover
almost no discussion of AERO's mufflers, compared
to others. With pumpers claiming that AERO has
the best muffler tech and "incredible" ability
to increase gas mileage by 15% or more (LOLOL!),
why is there no "buzz", or progress after years
in business?
Maybe I should still be "cautious"!
Agent ... they have already spent $6.4 in marketing to achieve lower sales in 2006 from prior years. And that is with their Nascar marketing in Full Gear.
Yeah...I can see an uplist to the OTCBB...
which would mean "nothing" in itself
for shareholders. Big deal!
If Hunsaker needs Peacock at the helm...
it ain't a good sign for shareholders!
Aero's muffler patent might not be worth
a whole lot, with a few years in business,
and less than $1 mil in revs. Gonna need to
spend a great deal of dough for marketing if
they intend to grab a "niche" in the exhaust
systems market.
Right ... they will reverse split it. Dilute some more and continue the facade of wanting to uplist.
They won't uplist from subpenny ! The PPS will blow your mind away, when the time comes to uplist !
You don't know the 1st thing about Steven Peacock.....so save your breath.
P&D's give Ceo's bigger boats and 4th houses. Hunsaker has been at work for the shareholders not a scam.
I hope your still around when we uplist... ")
Zero Supporting Evidence that the cause of the drop in PPS for FCCN is due to shorting etc, that is a common excuse used in pinky land and it is almost always the case that Dilution is the cause of the drop in PPS not shorting of the stock.
If the Transfer Agent was not gagged then that theory would hold more water but since the Transfer Agent has a policy of not giving out any information (GAGGED) then one must assume it is Dilution.
Don't you find it amazing and odd how you almost never see companies crying SHORTS who have transfer agents that are not Gagged?
Why is that?LOL!
What Business plan? How can you expect people to "stand Strong" when the PPS has fallen more than 50% since the announcement of the acquisition?
FCCN has shown me that this is a pure Pump/Dump scheme orchestrated by Javelin advisory group.
The PPS will continue to fall and then they will do a reverse Split which will devastate shareholder value.
All of these things are my opinion and Mr.Peacock has not shown me he has any interest in shareholder value here or any other Company Javelin Advisory Group is associated with.
I can imagine once they do announce the R/S that some will be supporting it, stating it is for up-listing etc. when in reality the pps will just sink back down to previous levels like most reverse splits in penny land.
Note: Derbenski, that issue has been taken care of and thanks for pointing that out, I agree.
Javelin Stock Play indicator laws...
The future downward thrust of any given share price on a Javelin play is directly proportional to the following.
A. Increase in recent banning or jailing of longs verses naysayers ratio.
B. Increased activity of longs on the Javelin board.
Derb
TOU Refresher
Off-topic: Any off-topic discussion is a violation of TOU. If your post is not about the stock for the board you're posting to, do not post it. Use email, private message, or post it to a board where it is on-topic.
Exactly ... I can name many where a name change along with a CUSIP # change was claimed to be the CURE to get those nasty naked short sellers .... but I can not think of a single one where it actually worked.
If anyone has an example of a name change working ... please provide it.
You mean like GLXI... oh wait, it didn't work there...
Name changes have never worked as a so-called cure to a so-called problem of Naked Short Selling.
Please show me proof of one that has worked.
Isn't it something that the more you pump, the more FCCN declines in price?
I used to say all the same krap as a
newbie...naive and unaware of the realities
in the penny stock world. I made one big
mistake of trusting in someone else's DD,
which forced me to do some research, with
an open and unbiased view. I learned now.
Guess what!? I can make money trading
without being dishonest. I can't understand
why anyone would have a problem with that.
Good to be cautious and do your homework
before viewing a penny stock as a long-term
investment...
"Penny stock fraud is one of the most widespread and destructive forms of financial crime, collectively costing investors billions of dollars each year in North America alone," said David Marchant, publisher of the Conference's organizer, OffshoreAlert newsletter, which specializes in exposing financial crime."
"Although penny stock schemes are frequently successful, they seldom are subtle. Unlike the elaborate accounting schemes that accompany massive corporate frauds, like those that unfolded at Enron, WorldCom and other major companies of that ilk, penny stock frauds usually rely on the garden variety “pump and dump” scheme. The promoters gain control of the company, often through a reverse-merger with a shell company. They then spread false and misleading information about the company to spark interest in the company, generate volume for the stock, and pump up prices. Once stock prices rise, the promoters dump their shares and stock prices slide back toward oblivion. The game takes on several variations, but the basic framework seldom differs."
2005 Venture Research Institute
btw...if the reverse split occurs before AERO
shows any signs of it's ability to increase sales
to any significant level...LOOK OUT BELOW!
It's all in the business plan....All we need to do is stand strong ! ")
Yea, changing the name will force them to come forward and reveal their names, or lose their money.
They can't have my shares.....lets get the name change done !
Whether shorted or not, doesn't change
the fact that Peacock has a great deal of
control of AERO. Why would Hunsaker need
Peacock if he has the best muffler in the
entire world? It don't add up! So that is
why I dig deeper to cut through all the
BS claims by pumpers, to get an unbiased
and realistic view of the "potential".
If people want me to be dishonest and
pump the stock, it ain't gonna happen.
What you get is unbiased, like it or not!
That is total BS! Show me unbiased proof,
and one that isn't a marketing ploy by AERO.
Pietro,
AERO and the other stocks are being shorted in Canada.
¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡
Blame Canada
US companies are saying our lax regulation lets short-sellers get away with murder
Canadian Business Newsmagazine
By Mark Brown
October 28, 2002
About two years ago, Russell Godwin, a director of Medinah Minerals Inc., noticed some unusual trading of its shares on the Nasdaq Over the-Counter Bulletin Board service. A client reported purchasing 500,000 shares of the small Nevada-registered mining company, headquartered in Vancouver, when the total trading volume for that day was only 200,000. However, Godwin, now also company president, didn't know the extent of the problem until a "shareholder census" revealed that there were more than 168 million shares outstanding, when only 117 million were available for trading. The extra shares on the market arose from "naked short-selling," a practice banned in the US but perfectly legal in Canada. And it is the reason why many small companies trading mostly on the Nasdaq Bulletin Board or on the Pink Sheets lay the blame for their misfortunes squarely on Canada.
Naked short selling is not the only way US securities are being manipulated through Canada. Death-spiral financing - one of the instruments of choice for financiers like Mark Valentine, from defunct Toronto-based brokerage Thomson Kernaghan & Co. Ltd. - is also being channeled through Canada, for the same reasons so much naked short-selling comes from the north: our weaker securities regulations. Indeed, "weaker" might not be a strong enough word. When asked about the difference between Canadian and US short selling rules, a senior official at the NASD, the US association of securities dealers, put it this way: "What Canadian rules?"
Basic short selling, which is legal in both countries, is a high-risk strategy that typically occurs when an investor believes a particular stock is overvalued. Through a margin account, the investor will borrow shares from a brokerage firm, say at $60 apiece, and immediately sell the shares on the market. When the investor is confident the company’s shares won't fall further, he will repurchase the shares, say at $40 apiece, and return the borrowed stock to the brokerage (covering the position) for a per-share profit of $20 less fees. In the case of naked short selling, the brokerage never actually has the shares in its inventory, nor does it have access to the shares' but it still allows the client to complete the short sale.
The effects can be disastrous for a small company. Even when Medinah Minerals would release positive news about its exploration activities, the stock would continue its free fall because of the massive short selling. What the short-sellers are trying to do in many cases is force companies to file for bankruptcy, says Wes Christian, a partner in the Texas law firm Christian, Smith & Jewell, which specializes in business litigation. "Once you get a company down to $1, it can't raise capital, it can't get loans, it can't do anything.'
Death-spiral financing adds yet another twist. In some cases, financiers will approach a target company on the pretense of looking to make a long-term investment. In exchange, the financiers ask for some kind of preferred stock or convertible debenture, where the company owes the investors a variable amount of stock that must equal a prearranged fixed value. The provision guarantees the financiers more stock if the share price goes down. But despite the confidence the financiers claim to have in the company, the real money for them come from shorting the stock. And if the high volumes of trading don't scare away bona fide investors, death-spiral financiers can put more downward pressure on the stock by releasing negative news on the company. Often, the short sales start even before the financing agreement is reached. "They're naked short-selling," says Christian, "knowing that they're going to get some conversions [from the preferred stock or debentures] so they can cover."
That is what happened to JagNotes.com Inc., a Florida-based market information subscription service, when it signed a deal with Valentine in May 2001. The naked short selling of JagNotes.com (now JAG Media Holdings Inc.) is the first of what could be a series of cases that high-powered Houston lawyer John O'Quinn, in association with Christian, plans to take to court. Valentine is alleged to have misrepresented himself to JagNotes.com by going against his word that he would not short the company's stock.
US regulators changed the rules regarding short-selling years ago. Broker-dealers are required to make an affirmative determination that stock is available for borrowing so that it can be delivered by the settlement date. In Canada, however, there is no such requirement. "We've looked at it, we may look at it again, but we haven't seen any need for it in the Canadian marketplace,' says Keith Rose, vice-president of regulatory policy for the Investment Dealers Association of Canada (IDA).
That's certainly not the way many small companies listed on junior exchanges see it. They argue that the differences between US and Canadian trading rules have made Canada a conduit for stock manipulation schemes. The paper trail created when shares are routed through Canada is so long that most companies simply can't afford to trace all the documents. "I can show you 15 companies that these guys have beaten," Christian says, "not because they're right, not because they're moral, not because they are legally correct, but because they ran them out of money.'
US investors can't legally open a trading account with a brokerage firm in Canada. But if they opened a Canadian account before the NASD cracked down and started to vigorously enforce the rules in 1998, they are not barred from trading. "[Canadian brokers] are not blatantly opening accounts for Americans," says short-seller William Gate, managing director of Beowulf Investments in California and author of several books on venture capital financing and private placements. "But if you are there, and you haven't caused any trouble, then they aren't kicking you out, either.”
US investors who want to bend the rules might approach a Canadian brokerage firm to conduct short sales on their behalf, put up the money and offer the broker a kickback or commission sharing for its help. "Of course, the guy in Canada, if he's greedy and happy to participate in that kind of scheme, is going to do it," says the NASD official, who spoke on condition of anonymity. Brokers need clients, and without strong rules in place there is nothing to discourage these firms from doing it, he adds.
But if a group of investors is intent on shorting a company's stock, but is not spreading rumors or misleading statements, then a company has little recourse, says Mark Deslauriers, a partner with Osler, Hoskin & Harcourt LLP in Toronto and past chair of the Ontario Securities Advisory Committee - unless the short-sellers were violating some other rule. 'It's never clean," be says. "They are selling on the downticks, not disclosing their short to their brokers [or] brokers haven't disclosed their short positions."
So what's a company targeted by naked short-sellers to do? One option is reorganization. Christian and a team of 50 lawyers are currently taking every one of their clients through a recapitalization process that requires the exchange of the actual share certificate. "You must redeem the certificate you supposedly hold in order to get a new certificate;' Christian explains. "If you don't got them, and you sold them, then you are liable. Simple.” Under the reorganization, as undertaken by Jagnotes.com and Medinah Minerals, the company renames itself and the stock undergoes a reverse split of at least 1:1.01, which is the minimum requirement.
However, legitimate shareholders run the risk of taking the biggest hit. In several cases, including Medinah, the company gave investors only 60 days to exchange shares, after which it had the power to cancel any outstanding shares. The reason it could do so was because it is registered in corporate-friendly Nevada, where securities laws allow the board of directors to cancel any outstanding share certificates for "any desirable reason." One such desirable reason might be the fact that forcing investors to claim their certificates could artificially inflate a company's share value, by forcing all the short-sellers to purchase shares they don't want.
The goal of the reorganization is not so much to put a stop to short selling, as it is to expose who is doing the shorting. Still, the short-sellers aren't always the only ones at fault. "Some of the companies don't come into this scenario with clean hands," says the NASD official. "The types of stocks, that typically are targeted by short-sellers may be companies that may be perpetrating their own violations, in terms of pumping up their own shares through press releases that are materially misleading, or other things."
Regardless of which side shoulders the blame, the shareholders are the ones who really lose out. The IDA plans to revisit this issue in the new year, but it's not a high priority. It's certainly a concern for the NASD, which has tried to put a stop to the practice - albeit with mixed results. In the meantime, a case being built by GeneMax Corp. of Blaine, Wash., against two Vancouver firms, Global Securities Corp., a full service brokerage, and Union Securities Ltd., an investment dealer, challenges the legality of naked short sales in Canada. But don't count on the case forcing a review of Canadian rules - such actions seldom reach trial, because the plaintiffs rarely have enough money left to see them through.
[ RGM Short Selling Home page ]
lease read this article.
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Scam Plays and DTC "Chilled" Stock - Beware of Both
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Since DTC is starting to "chill" or global lock quite a few stocks I thought it might be interesting to start gathering information on the various "chilled" stocks here. I'll be adding a list of the ones I know about in the near future. Please post information on any stocks you know of that have a DTC "chill" on them.
Not all DTC "chilled" stocks are scams, but, the end results to the long term shareholders appear to be the same.
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Here's some interesting reading for those with any concerns about speaking out freely with information about scams:
From IH Geek [Dave]
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=53187425
An excerpt:
"This is an important day for freedom, and a fatal blow to those who would attempt to silence our collective rights using foreign laws as their sword.
It is our great pleasure to announce today's enactment of the SPEECH ACT, otherwise known as the "Securing the Protection of our Enduring and Established Constitutional Heritage" Act. This is important legislation, not only for websites such as as iHub but also for individuals who wish to exercise their constitutionally protected right to express their views.
The new legislation, which was signed into law today, is based on the similar laws passed by New York, Florida and other states. It prohibits enforcement of foreign libel judgments in all U.S. courts of law when the foreign laws are not as protective as American law or do not comport with U.S. principles of due process. It also requires US courts to apply the immunity provided by 47 USC 230 with regard to foreign judgments against interactive websites like iHub. And perhaps most importantly, it provides the jurisdictional authority for US courts to issue declaratory judgments in favor of the US defendants in such foreign judgments, and provides for recovery of legal costs in incurred in doing so. No longer will US citizens and business be held hostage to libel judgments obtained in countries with archaic libel laws that do not respect the constitutional and statutory protections provided by US law.
It should also be noted that this bipartisan legislation passed both the House and the Senate unanimously. That speaks strongly to the will of Congress and the American people; in this age there are scant few matters before the Congress that would garner unanimous support.
Our thanks and congratulations go to Congressman Steve Cohen for originally proposing this legislation, and to Dr. Rachel Ehrenfeld who spearheaded support for the legislation. We also acknowledge the members of both parties in the Judiciary Committees of the House and Senate for getting the legislation right and getting it enacted without opposition.
We recognize and congratulate those of you who have held your ground in the face of intimidation from foreign operators."
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Here's an example of the type of scam stock I'd like to see listed here:
OTC BB | Medical - Healthcare | EYI Industries (EYII)
http://investorshub.advfn.com/boards/board.aspx?board_id=4264
Dirty shell is an understatement here:
If you go to the State of Nevada you will see their corporate status has been revoked:
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=OBGnrqpH6oP8sHIelJilxA%253d%253d&nt7=0
Pinksheets has them as Caveat Emptor
EYII closed it's doors on April 2, 2009. Website came down and nobody heard from the company again. A number of reps are now trying to file a class action lawsuit against the company. They stopped paying reps after this point. In the weeks and months leading up to April 2009, they had begun putting caps on distributor checks. After this time, the patent holder/inventor of Calorad took his product to ASANTAE, inc to allow them to distribute. EYII never owned Calorad or the rights to distribute it. Try googling for EYII distributors, and you will not find a single one that is active. There are a few that have moved onto other MLM companies, and have maintained their old telephone numbers, but they will tell you that EYII went out of business last year. Evidently, the story is that 2 people embezzeled or defrauded the company of all their cash and they went belly up. They left all their reps high and dry and even wiped out their downlines of customers, because they took down the website and they were not able to access their downlines.
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This Forum used to be for the discussion of Javelin Advisory Group Stock Plays, however, the company no longer exists. Please feel free to use this board for any scams you find. Just provide links to prove your assertion.
Website
http://www.javelinadvisory.com/ (JAVELIN out of business) email addressed to site is returned undeliverable and last blog entry on the site is from 2008. There are no current Javelin plays.
Incorporated
http://nvsos.gov/sosentitysearch/
http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=hzBwHZy%252bH0oxx8dilMyxDg%253d%253d&nt7=0 shows that JAVELIN is in default status with the State of Nevada.
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All messages, including iBox content, are the opinion of the posters, are no substitute for your own research, and should not be relied upon for stock trading or any other purpose.
Rules of the board according to IHUB:
http://www.investorshub.com/boards/complex_terms.asp
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