Trading Tips 101

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Live Updating

Older Newer

FollowNoOne Free

10/09/11 4:12 PM

Post #179

Re: #177: @bar1080 - I'll sunrise you by saying the Buffett method

I have been reading over your past posts and must say you are very knowledgeable. Today, I decided to cease trading in pennies altogether and move towards Index Funds and Bonds.

I will let the money I currently have in pennies ride without additional investments and divert future investments into index funds and bonds. I am going to monitor the pennies for positive exit points. I will also look at companies trading on the majors and pay closer attention to what they are saying in their statements (i.e Unaudited Filings, etc).

I believe you have saved me from losing thousands upon thousands of dollars in addition to the stress that comes with it. Thanks for taking the time to share your knowledge and point me in the right direction.

bar1080

10/08/11 8:23 PM

Post #178

Re: #176: @MaxShockeR - depends in pennies it's hard to base on

Max, why don't you list 5 picks for the next 30 days and we'll see how they do against, say, the Dow. Let's assume you buy at the ask and sell in 30 days at the bid.

BTW, having a stock skyrocket doesn't help if the shares can't be sold in significant quantity. Easy to buy junk stock; often very hard to sell without pulling down the price 20%. I see that sayuncle had a problem along those lines and it wasn't fun!

Par Value means nothing. In fact many shares have no par value.

bar1080

10/08/11 8:07 PM

Post #177

Re: #174: @FollowNoOne - I officially wave the white flag in chasing

I'll sunrise you by saying the Buffett method won't be a home run for most people, although it will CERTAINLY work out better than "playing" pennies.

Buffett is a brainy guy with great connections and savvy associates. Moreover Buffett gets deals that aren't available to most of us, like his recent preferred stock deal with Bank of America. (as we've seen so far, he doesn't always win)

But his biggest advantage--one that's almost unique to him--is his army of followers, many of whom control fortunes. To some degree almost everyone on Wall Street (and far beyond) watches him for clues. George Soros has the same advantage. Maybe two or three others do.

My own stock money has mostly been in index funds for many years. Buffett himself has spoken well of index funds. I make no attempt to beat the market because I know ***I*** can't do it. John Bogle, the founder of The Vanguard Group, says very, very few people beat the S&P 500 for long.

I make no attempt to TIME the market because I (and Buffett) know that NO ONE can do it. I KNOW that most investors, even fairly experienced ones tend to buy at peaks and sell at bottoms. Buffett would agree. University studies suggest that to be the case.

For years my money has been in a roughly 50/50 mix of index funds (and a few blue chips for tax reasons) and bonds... in my case mostly muni bonds. I don't sell stocks except for tax-loss advantages.

For the past decade or more, that simple method has probably beaten 99% of IHUBers and 80-90% of other investors including many pros. Even during the dot com days of the 90s I probably did better than most investors. And my heavy bond component not only helps the investment returns, but it provides for much better nights' sleep.

MaxShockeR Free

10/08/11 7:13 PM

Post #176

Re: #175: @FollowNoOne - I will be more of the set it

depends in pennies it's hard to base on intrinsic value, i look at the PAR VALUE and it's Share Structure (10c and lower) besides all the other "DD" stuff. i am that type "Set it and forget it" it's better 4-5 instead of 15-20 stocks, i tried it and i don't like putting all in 1 or having to many, i do have some lotto plays that i am holding based on some basic DD and/or speculation on a upcoming hype, but those i say to myself the money is already lost thats why i call them lotto plays :P

it takes only one that skyrockets to make up all your losses - previous losses and gives you huge profits.

but when your comfortable the way you trade with good Money Management it will pay off in the long run, also whats said on most boards is BS listen or follow traders or boards carefully.

either your a flipper or a holder or both, if it fits your style and it works you gotta stick to it without getting wifey upset :P

FollowNoOne Free

10/08/11 6:54 PM

Post #175

Re: #170: @MaxShockeR - thats when 2 trading accounts comes in Handy

I will be more of the set it but monitor it every so often type. While there are pennies out here doing real business, I won't be a part of the flipping crowd....too sharky for me.

The plan is to find about 4 companies - eventually I want to be invested in 10 companies - and apply the Warren Buffet principle to them: Trading less than their intrinsic value, written off by others and shares are currently trading at a discounted price.

FollowNoOne Free

10/08/11 6:41 PM

Post #174

Re: #162: @bar1080 - The stocks that rise 100X or more are

I officially wave the white flag in chasing pennies and following P&D posts / tweets / e-mails. Luckily, I sniffed out 2 companies that are actually producing revenue, making a profit and have a real business that does not depend on selling shares and releasing PRs.

Trying to follow all of the zillions of "XYZA going to the moon" type posts / tweets / e-mails is mentally exhausting and eventually exhausts your brokerage account.

The game plan is to watch for exit points in the POS penny stocks that I currently own and to roll that cash over into the two companies that are experiencing positive growth. I'm done with the pipe dream of penny stocks and will be taking the Warren Buffet route of investing: slow, steady and with much due diligence to find strong companies that are trading below their intrinsic value.

bar1080

10/08/11 8:49 AM

Post #173

Re: #172: @bar1080 - Love the answers to this anti-penny article: I

Netflix IPOd at $15 and hit $25 its first day of trading in 2002: Like most highly successful stocks it began trading on the NASDAQ immediately.

http://www.internetnews.com/bus-news/article.php/1143801/Netflix+Goes+Public+at+15+a+Share.htm

bar1080

10/08/11 8:47 AM

Post #172

Love the answers to this anti-penny article: I know MSFT IPO'd on the NASDAQ and was often over $100 in its early days. WMT wasn't a penny. Nor Mcdonalds. Nor Netflix But the poster knows that.

"I wish I had brought penny stocks such as McDonalds, net flix, Mrosoft, ect. I brought 500 shares of that penny stock net flix when it was about $1.63 sold it at $6.50 not it's over $300. pretty good for a penny stock. and one of the all time penny stocks was walmarts."

http://blogs.marketwatch.com/cody/2011/10/03/simple-rule-dont-ever-buy-a-penny-stock/?reflink=yhoof

MaxShockeR Free

10/06/11 7:40 PM

Post #170

Re: #169: @bar1080 - If you're keeping your wife informed you probably

thats when 2 trading accounts comes in Handy LOL !!!

i agree trading his "life savings" is not a good idea, but also trading not enough won't help either, better to save up the little amounts into a big amount example 1k or 2k then trade, flip the crap out of the mindless stocks that shows lots of interest building or Chart Bottom and/or Momo plays or "DD" really hard on 1 or 2 and set it and forget it style "LongTerm" it's rare less than 5 % but it does exist in the subpennies.

Thats my opinion on trading subpennies :)

Some Good Reads Below

-10 Advanced OTC Axioms
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64630875

-25 AXIOM'S OF TRADING (by Vantillian)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64630746

-BEFORE BUYING OTC PENNYSTOCKS The Basics
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64635847

-Pinkie dictionary
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64571561

-8 WAYS TO RECOGNIZE A POTENTIAL PUMP & DUMP
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64379728

$GLTA

bar1080

10/01/11 9:31 PM

Post #169

Re: #168: @FollowNoOne - That post sums up why my wife don't

If you're keeping your wife informed you probably haven't crossed the line. Believe me, "players'" worst fear is their wife opening the brokerage statement and discovering the extent of the damage to the family, the kids, and retirement.

Pennies are no more about making money than slots are about making money. With slots, at least, losses go to shady Americans. Pennyland involves overseas criminals, disbarred lawyers and censured brokers, and sometimes scary people who hate America: People who are way worse than merely "shady."

Your penny losses will probably meander thru various Caribbean banks and Euro tax havens before ending up lord-knows-where.

Listen to your wife.

FollowNoOne Free

10/01/11 8:17 PM

Post #168

Re: #167: @bar1080 - You may lose your trading appetite after reading this:

That post sums up why my wife don't want to put our savings in penny stocks. Believe me, I was thinking about it as I was infatuated with the big "gains" people brag about.

I play with a relatively small amount ($75 every week). That way, I can play the penny slots, I mean stocks, if I want to without breaking the bank. The wife is happy because we continue to build our savings and she knows that reserve won't be played in the market. The wife doesn't flinch at $75 a week but $1000 is another issue.

I did make the mistake of taking a loan for 10% of my 401(K) and playing the pennies. Yup, I lost the cash in penny investments. That won't happen again and of course, it makes the wife even more vigilant against me playing more than $75 a week in pennies. Even if I "hit the jackpot" in pennies, $75 is the limit on my play money.

bar1080

10/01/11 10:35 AM

Post #167

Re: #165: @FollowNoOne - Whew! You gave me meat, potatoes, vegetables, a

You may lose your trading appetite after reading this:

"An IHUB post from 2006:

'This has been a tough few years.

At this point I consider my investment in CMKX all but lost. It was a very large investment. I told my wife that the situation with CMKX was unique, and that justice would prevail. We don't speak much about it anymore. After all I assured her that there are good companies out there to invest in.

So I have slowly been saving up to reenter the market, assuring my wife all the way. So back in I go. Trying to due my DD as a wise investor.

This month alone, I lost a lot of money in CSHD, and the last of my three years of savings again today in SLJB.

If it is not the naked shorters, it is CEO's outright deception to steal from the investing public. I mean If you can't invest in a company like SLJB that has been in business for 25 years, what help is there with any company.

You would think that with CEO's going to prison for years, that these directors of these companies would show a little restraint in their scams. Apparently not.

Well, I really should not be writing this on this board, I should be telling it to my wife. However, I don't have the courage to tell her that I have lost our life savings again.' "

bar1080

09/30/11 11:18 AM

Post #166

Re: #165: @FollowNoOne - Whew! You gave me meat, potatoes, vegetables, a

Now read some of my old posts. You'll find that I'm utterly consistent in my hatred of junk stocks especially Chinese stocks with scam accounting. I don't promote any stocks. That's why you can trust me. Heck, I think I don't own but two or three large cap stocks that have boards on IHUB.

You'll find that the stocks I bash tend to collapse. The stocks I own tend to... well they don't collapse. LOL!

If you could read my posts from the dot com bubble days you'd find that I was about the only one on Raging Bull advocating buying bonds and bank CDs. Bonds paid 8% and Bank CDs paid 5-6% then. I wish I had taken my views to the max and put everything in 30 year maturity 8% AAA bonds back in 1999!

What stocks do I own? Index funds and a few NYSE blue chips. Currently all of my stocks are audited by Big 4 CPAs.

I read penny boards because they are wonderful contrarian indicators.

FollowNoOne Free

09/30/11 10:53 AM

Post #165

Re: #164: @bar1080 - Learn from SEC litigation, not from penny stock

Whew! You gave me meat, potatoes, vegetables, a snack, dessert, an ice cold drink all in one through your three responses. A lot to digest but it is all very nutritional.

Thanks a lot. I appreciate it.

bar1080

09/30/11 1:06 AM

Post #164

Re: #159: @FollowNoOne - For you guys who catch the 100s to

Learn from SEC litigation, not from penny stock tout boards
http://www.sec.gov/litigation/litreleases.shtml

After you've read a few hundred SEC cases (as I have) you'll begin to understand pennyland.

Warren Buffett doesn't buy pennies; why are you buying them?

bar1080

09/30/11 12:57 AM

Post #163

Re: #159: @FollowNoOne - For you guys who catch the 100s to

Why no "Dow Average" for penny stocks? Actually years ago there were such averages but they fared so dreadfully that there was no incentive to do the complex work required. Most hot pennies plummeted >90% in 2000-2002, and never came back.

No one in pennyland - whether promoters, brokers, MMs or the addicted "players" themselves - has any desire for the truth to be known. Not only do pennies fall on average, but they always fall on average, year after year! Only for one year in the past twenty, 1998, did penny stocks do well. And they quickly lost all of that gain and more.

That's why there's no "Dow" Average for the OTCBB or the Pinks.

bar1080

09/30/11 12:55 AM

Post #162

Re: #159: @FollowNoOne - For you guys who catch the 100s to

The stocks that rise 100X or more are usually illiquid shells that neither you nor any other outsider hears about UNTIL THEY ARE READY TO PLUMMET.

The shares rise on matched trades where two people flip shares back and forth at ever-higher prices. Easy and cheap to do. Those stocks usually have no boards on IHUB and may have just one MM. They aren't publicized. As long as almost no one is selling it's easy to MANUFACTURE a hundred-bagger to attract suckers. It's all fake!

"For you guys who catch the 100s to 10,000s percentage increases...:"
Who does that? Penny boards are loaded with liars. Have you ever heard of a multimillionaire who made his fortune in pennies? I never have, and I've been investing for decades.

"I am sure I am missing some things"
You are missing that NO ONE makes significant money in pennies. It's impossible. Most long term players are gambling addicts. Or they are shills.

MaxShockeR Free

09/29/11 11:38 PM

Post #161

Trade for Trade status = Good or Bad ?

"shifting any security to trade-for-trade certainly protects the interests of the existing investors and it also keeps speculative forces/players at bay from manipulating large intra day movements of the price."

Dear Friend,

There are more than one questions asked. So, to make it easier for you to understand, I am pasting your question is Italics and write my answer below it.

You had mentioned that the change to trade for trade status is not done to protect the share structure. Wouldn't this form of trade system protect the company from massive shorting or a takeover of sorts?

Yes, it is surely not to protect the share structure. But shifting any security to trade-for-trade certainly protects the interests of the existing investors and it also keeps speculative forces/players at bay from manipulating large intra day movements of the price.

Also, what did you mean when you said "No Intra day Trading Allowed"? Does this mean that one would not be able to "flip" the security, another words, make a purchase and then sell that same block in the same day?

Yes, you have correctly understood. If your purchase any security which is in trade-for-trade, you cannot sell the same security on the same day.

And one last clarification... As I read your explanation, it seems that on a CNS system it seems this is the common rolling system. If I purchase 1000 shares for 25.00 I pay 25000.00 to the brokerage firm. Then when I sell those same shares the same day I receive the 25000.00 + the extra 5.00 per share; minus any fees of course.

This also you have correctly understood. In the above given scenario, you would pay $25,000 + the brokerage on the purchase and receive $30,000 - the brokerage. However, as mentioned / explained in the preceding question, you will not be able to purchase and sell on the same day and get only the difference of the purchase and sell price.

Now, on the trade for trade scenario you mentioned I would have to pay $25,000.00 to take possession of the security, but wouldn't I have to pay anyways to receive my shares?

No, because if the security is not in trade-for-trade, then you will be able to sell the same block on the same day and get only the difference as mentioned above. However, if you decide not the sell the shares / securities on the same day irrespective of it being in trade-for-trade, ONLY THEN you will need to pay $ 25,000

Then you explained that the quantity hat I sell would "Have to be Presented for Delivery" what did you mean exactly? would I have to have a physical certificate of sorts? I did not fully understand that.

I will explain. For example, the shares you bought are in trade-for-trade. So, when you purchase the shares, you will not be able to sell it on the same day. So, it will result into "delivery". This means, you will receive shares , either physically in certificate or in dematerialized form (electronic form) in your account. Now, when you sell it, you will "Present" these shares, i.e. give these shares that you have received towards your sell.

I hope this helps...

Warm Regards,

Read more: Hello, I have a question relating to securites and trading. - JustAnswer http://www.justanswer.com/finance/4olnl-hello-i-question-relating-securites-trading.html (posted by steved_45)

MaxShockeR Free

09/29/11 11:22 PM

Post #160

Re: #159: @FollowNoOne - For you guys who catch the 100s to

you have a good range of tools already for pennyland, but if you add twitter and ihub but chosing wisely which user or board to follow you will get good tips on stocks depending on your strategy, also tools like Equityfeed or other stock scanners are usefull to give you good signals or alerts.

Look in the ibox theres lots of links i posted, and for some Good ihub boards look under "EDUCATIONAL BOARDS & Recommended boards"

For me, I tend to look at current SP, 52wk range, A/S, O/S and float, whether company has done R/S and how long ago, any recent news, volume over x amount of time, Level 2s, management, set up Google News Alerts for info pertaining to the stock (company name, execs, stock symbol, industry), customers, financials and pending news.

i don't daytrade much it's mostly swings or longerm plays, sometimes i'll have a bottom/momo Chart play thats has good technicals when good volume is available only.

but for 0001 stocks, for me they are mostly lotto plays :P got burned several times, i rather see the stock 0003 an above, transparency OTCpink and above, history of R/S also the share structure is really important, when you see some pumps of subpennies and it has 25/50 or even 100 billion in A/S or 15-20 bil in O/S theres no point trying to move an elephant LOL i try to limit them subpennies in the 5-10 bil A/S-O/S the higher the subpenny the lower i look at the limit of the SS range and most important it all depends on the "DD" thats available especially when investing longterm, does the company have a Suitcase type of company or they have a location that can be seen example via google maps ?

when you see one of these as a business location, it's not a good sign LOL !!!!

FollowNoOne Free

09/29/11 9:24 PM

Post #159

For you guys who catch the 100s to 10,000s percentage increases: How in the heck do you sniff those stocks out?

What's a typical DD session like for you?

I find it amazing that some people can get in at .0001 and ride that stock all the way to .1 or higher. I have yet to find a .000x that rides that high. What are you guys sniffing out to suggest buying in, sitting and riding it up?

For me, I tend to look at current SP, 52wk range, A/S, O/S and float, whether company has done R/S and how long ago, any recent news, volume over x amount of time, Level 2s, management, set up Google News Alerts for info pertaining to the stock (company name, execs, stock symbol, industry), customers, financials and pending news.

I am sure I am missing some things or focusing too much on some specific area. Any feedback you guys can provide to help me sniff out the winners is appreciated. I must admit that 52wk and current SP got me quite a bit. Thanks.

bar1080

09/29/11 5:22 AM

Post #158

"NIR’s strategy of investing in distressed and start-up companies began to show signs of failure by mid-to-late 2007. Many of the distressed companies to which the AJW Funds had made loans were by then essentially defunct or on the verge of filing for bankruptcy. The SEC alleges that Ribotsky made false and misleading statements to investors while his hedge funds were struggling to create the illusion of success."

This case involves many active IHUB trading stocks

bar1080

09/29/11 5:17 AM

Post #157

NEWS: "The SEC alleges that Corey Ribotsky and his firm The NIR Group LLC repeatedly lied to investors to hide the truth that his PIPE investment and trading strategy was failing during the financial crisis. For example, Ribotsky falsely told investors that despite the adverse market conditions he could liquidate all of the PIPE investments in 36 to 48 months — a practical impossibility given the size of the investments. Meanwhile, Ribotsky misused investor money by writing checks to pay for personal services and such luxury items as a Lexus, Mercedes, and Rolex watch.

“In a classic betrayal of trust, Ribotsky stole from his investors and falsely assured them that his struggling hedge funds were thriving,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “This enforcement action reflects our continuing commitment to bring to justice individuals and companies that committed fraud during the credit crisis.”

http://www.sec.gov/news/press/2011/2011-194.htm

MaxShockeR Free

09/28/11 6:49 PM

Post #156

Re: #151: @robertowens - i have a ? for someone, anyone.

List of Market Makers

http://www.otcmarkets.com/otc-pink/marketActivity/market-maker-info

$TIPS

MaxShockeR Free

09/28/11 5:12 PM

Post #155

Re: #149: @bar1080 - INBG doesn't even show a bid now? Is

i have a better one CWRN, went from 0003 to 0.3c now thats a good run :P now it's in sleep mode between 007/008 range.

or MMTE from 0003 to 005, now it's almost back where it was tho :)

just need good timing / patience & DD of course IMO

MaxShockeR Free

09/28/11 5:06 PM

Post #154

Re: #149: @bar1080 - INBG doesn't even show a bid now? Is

i actually did research on INBG lol ...

it did a nice run, but those stocks are good for flips, gotta get in/out at the right time.

heres my DD on the bad stuff about INBG

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=66170640

bar1080

09/28/11 3:15 PM

Post #153

Traders aren't good at making money but they are likely to lie about it!

One of Bar's many time-proven investing rules: Most people who think they're doing well in the market have no idea how poorly they're actually doing.

http://bottomline.msnbc.msn.com/_news/2011/09/27/7993962-traders-more-reckless-than-psychopaths-study-shows

bar1080

09/28/11 3:10 PM

Post #152

"Disturbing new research about financial traders and their personalities may shed some light on the behavior of Kweku Adoboli, the so-called “rogue” UBS trader who allegedly lost the bank $2.3 billion through unauthorized trading.

A new study from a Swiss university finds that financial traders are more uncooperative than psychopaths and that they have a greater tendency for lying and risk-taking."

http://bottomline.msnbc.msn.com/_news/2011/09/27/7993962-traders-more-reckless-than-psychopaths-study-shows

robertowens Terminated

09/27/11 12:44 PM

Post #151

i have a ? for someone, anyone. FEEL just went to no bid, i think, and one mm on the ask, if i am reading the L2 on askblasters right. Who is CSTI??? Never seen them on the L2 before until now. No other MM's are showing up on the bid or ask, what is going on, is this good or bad?

monda2frida Free

09/27/11 12:11 PM

Post #150

Re: #149: @bar1080 - INBG doesn't even show a bid now? Is

of course it's no bid now, but did it not go up 11x in 2 days?

bar1080

09/27/11 12:09 PM

Post #149

Re: #148: @monda2frida - actually, if you play it right, $1,000 could

INBG doesn't even show a bid now? Is THAT the best example you have?

monda2frida Free

09/27/11 11:50 AM

Post #148

Re: #147: @bar1080 - How do .0001 stocks perform?

actually, if you play it right, $1,000 could turn into $10,000 or more:

here's a .0001 stock that went up 11x in 2 days

INBG .0001 merger news:
International Building Technologies Group, Inc. Signed a LOI to Enter into a Merger with a China Petroleum Storage Facilities Company with Paid-in Capital of USD8.8 Million and Assets Worth USD54 Million According to a Recent Appraisal
Jun 2, 2010 8:00:00 AM
Copyright Business Wire 2010

monda2frida
Thursday, June 03, 2010 9:42:30 AM
Re: ToyotaMR2s post# 69798

Post # of 113139
INBG .0011

bar1080

09/25/11 9:35 AM

Post #147

How do .0001 stocks perform?

About 18 months ago I created a "model" portfolio of a dozen .0001 stocks ("stocks that can't go lower")

Since then two have done reverse splits and have continued to fall. The small number of reverse splits suggests that many .0001 companies have given up. Few people are now playing pennies. About half have no bids; those stocks can't be sold now.

One has been revoked by the SEC. Worthless.

Have any gone up? Not one! Many just sit and sit with zero bid and .0001 ask. Hard to say for sure how $10,000 invested in those stocks would have done. Many are so thin that selling would further depress the shares. My guess is $10,000 might now be worth less than $1,000.

MaxShockeR Free

09/21/11 3:45 PM

Post #146

Re: #144: @kiote68 - Scary article Max. I read Chapter 19

Thanks...it also made my head spin :) Penson is causing lots of problems now for everyone in the pennies, lots of people are switching brokers left and right because of the non-dtcc eligible fees brokers need to charge, just really annoying in all.

MaxShockeR Free

09/20/11 11:18 PM

Post #145

Ways of a Market Maker: Market Maker Speaks Out

I was an OTC MM for about 10 years ending in the late 80's. Since then I have been strictly an investor. Since I have not been that up to date in MM rules I will only make statements that I feel fairly confident are still accurate regarding these activities. By and large most MM don't have a clue nor do they care to learn, about the fundamentals of the stocks they trade.

They just try to make orderly markets. When dealing with BB stocks it is very easy for a MM to get trapped into being short in dealing in a fast moving market. Reason being; most of the MM's in this stock are what are called "wholesalers" this means they don't have retail brokers "working" the stocks.

So they have to rely on what's known as the "call" from larger retail houses. If a "Big" retail firm like an E-trade calls up a market maker to purchase say 5,000 shares of a stock, they expect to get an "execution" from that market maker. If he turns them down, or only gives a partial then the "Big" firm will go to another MM.

If this second MM "fills the order" then that "Big" firm has a moral obligation to continue to give future "business" in that stock to that MM who performed (his life blood). This will go on until he "fails" to perform and so on.

Contrary to popular opinion the "Big" firms Do NOT neccessarily go to the "Low Offer" to fill a buy order (Or high bid for a sell). They "Go" to who they think will perform to fill the order and expect that MM to "match" the "low offer" in the case of a buy (bid in the case of a sell). Even though this MM might in fact be the "high bid" and not really want to sell any more.

As a wholesaler he must perform or he will get a reputation as a "non-performer" with the "Big" houses and will cease getting "calls" which means he will soon go out of business. I mentioned above that this activity is very significant to BB stocks. I say this because most of the trades in these BB stocks are "unsolicited" and are done through discount houses.

With the above groundwork laid, let me try to explain how market makers get short even if they like the Company; Lets say that a stock (shell) has been lying quietly at $.25 bid $.50 offered. A limit order comes into one of the MM's to Buy at $.50 for a thousand shares. Prior to this trade that MM may be "flat" (neither long or short any shares). He fills the order and is now short 1,000 shares. He may raise his bid hoping to find a seller to "flatten" out his position. But before he realizes it a wave of buyers have come in and cleared out all the $.50 offers. Now the stock is $.50 bid .75 offered. Here comes that "Big" firm he just sold the 1,000 shares to at .50 with another bid for 1000 at .75. He makes this print. Now he is short 2,000 at an average of .625. The market keeps moving and now its .75 bid 1.00 offered. Now he has to make a decision.

Just like investors, MM Hate to take a loss. So 9 times out of 10 he will now sell 2000 at 1.00 making him short 4000 but with an average .81. At this time he would love to see a seller at .75 so he can cover his short and make a few bucks.

But instead the market keeps moving up. Now it is 1.00 to 1.25 and here comes the buyer again at 1.25. He doesn't want to lose the call so now he needs to sell 4,000 at 1.25 to keep his break even point above the bid. Now he is short 8,000. Market moves up to 1.25 bid 1.50 offer here comes the buyer now he feels he must sell 8000 here because "stocks don't go up forever".

Now he is short 16,000. And so on and so on. If the stock keeps moving up, before he realizes it he could be short 50k or 100k shares (depending how big his bank is). _________________________

Finally the market closes for the day and on paper he may look all right in that his "break even" price may be around the closing price. But now he has to figure out how to entice sellers so he can cover this short. It is important to note that if this happened to one MM it has probably happened to most all of them.

Some ways MM's entice sellers; Run the stock up with a "tight spread" in a fast market, then "open" up the spread to slow down the buying interest. After it has "cooled off" for a little while lower the offer below the last trade right after a small piece trades on the offer then tighten the spread so that the sellers feel they can take a "quick profit" by "hitting the bid" on the tight spread.

Once the selling starts the MM's will walk it down quickly by only making small prints on the way down with the tight spread. Another way is by running the stock up in the morning, averaging up their short then use the above technique to walk it down in the afternoon.

Hopefully after doing this for several days, it will demoralize the buyers. The volume will dry up and the sellers will materialize thinking that the game is over.

Contrary to popular opinion, MM usually Do Not Cover in Fast moving markets either Up or Down if they are short. They Short More. They usually try to cover after the frenzy is out of the market. There are many other techniques they use but the above are the most popular.

This technique works about 9 times out of 10 particularly in a BB market. However that is because 9 out of 10 BB stocks are BS. Remember what I said above. Most MM's don't have a clue as to the value of a Company until they get trapped. If the Company has solid fundementals and a bright future. Then the stock will do very well. And the activity that caused the situation will prove to even help the future stock activity because it created an audience."

posted by Lowman http://investorshub.advfn.com/boards/read_msg.aspx?message_id=15625415

kiote68

09/20/11 10:21 PM

Post #144

Re: #143: @MaxShockeR - Penson Financial Global Bust-Out: How the Mafia-Jihadi Nexus

Scary article Max. I read Chapter 19 and my mind is spinning. I follow you on the TYTN board and really appreciate you sharing your knowledge because I am a newbie to this world

MaxShockeR Free

09/20/11 8:29 PM

Post #143

Penson Financial Global Bust-Out: How the Mafia-Jihadi Nexus made them Big

in 2008, Penson retained that status—the biggest & most powerful brokerage on the planet

Posted on 09 July 2011 by Mark Mitchell

Please Note - Very Long Read but interesting info

$POS Penson

MaxShockeR Free

09/20/11 7:07 PM

Post #142

New non-DTC list UPDATED 9/16/2011

(thanks to Mikey aka xbigshot)
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=66764285

Visit his board "LINKS TO LEARNING (LERN)" here
http://investorshub.advfn.com/boards/board.aspx?board_id=7267

i believe this list goes back to 2008.........it is the cusip and name of the company........listed alphabetically......

again............to all..............if you are using PENSON.......you NEED to save this list somewhere!!!!!! this is a compilation of the NON-dtc lists........

IF you are being told by your broker that a certain stock is 'chilled' and its not on this list.........OR if you are being charged ADDITIONAL fees and the stock is not on this list........you 'may' have some recourse IF you holler loud enough......i know a few people that have had some fees actually REVERSED!

http://search2.dtcc.com/?q=CUSIP%27s+to+be+exited+from+CNS+and+future+trades+designated+trade+for+trade&sp_k=imp_notices&sp_p=all&sp_f=ISO-8859-1&x=9&y=10

003865102 ABSOLUTEFUTURE.COM…AFTI
00433R107 AccessKey IP, Inc.…AKYI
00790C107 Advanced Content Services, Inc.......ADCS
00754V109 Advanced Optics Electronics, Inc.…ADOT
01374L109 Alchemy Creative Incorporated…ACHM
016663205 All State Properties, Inc.…ATPT
023610207 THE AMERGENCE GROUP INC.…AMNG
02879P108 American Pacific Rim Commerce Group…APRM
034206102 Andiamo Corporation.......ANDI
03735R106 Anywhere MD, Inc.…ANWM
03841W106 Aquasil International, Inc.…AQUS
05452X109 AvStar Aviation Group, Inc.…AAVG
054617105 Axis Technologies Group, Inc.…AXGC
05546H102 BIH Corporation…BIHC
076012202 Bederra Corp.…BEDA
08520E103 BERMAN CENTER, INC.…BRMC
08782W106 Beverage Creations Incorporated…BVRG
09060S106 Biocentric Energy Holdings, Inc.…BEHL
09623H209 Blugrass Energy, Inc..........BLUG
09857A102 Bookkeeper International Equities Corp.…BKPR
10620T204 Brazos International Exploration, Inc.......BRZL
12619H100 CO2 TECH LTD…CTTD
131720104 Calypso Wireless Inc.…CLYW
133223602 CAMELOT ENTERTAINMENT GROUP…CMGR
133223701 Camelot Entertainment Group, Inc.…CMGR
137693107 Cannon Exploration Inc.…CNEX
14160L506 Cardio Infrared Technologies, Inc.…CDOI
14739W207 Cascadia Investments Inc.…CDIV
14949R105 Causeway Entertainment Co.…CIST
16890B104 China Changjiang Mining & Energy Corp.…CHJI
169364106 China Adnet Enterprises…CAEJ
169382108 CHINA DIGITAL MEDIA CORP…CDGT
169442100 China MediaExpress Holding, Inc.…CCME
189098106 Cloud Centric Systems, Inc.…CLDR
19049P107 Coastal Pacific Mining Corp.…CPMCF
19647Y302 Colorado Goldfields, Inc.…CGFIA
22004M101 Corporate Universe, Inc......COUV
221737307 COTTON & WESTERN MINING…CWRN
22938P105 Crystal Properties Holdings Inc.…CPHG
232825109 CytoGenix Inc.…CYGX
233279207 D-MECATRONICS…DMTA
24478T109 Degama Software Solutions Inc.…DGMA
26702V107 Dutch Gold Resources, Inc.......DGRI.
247018104 DELIVERY TECH SOLUTIONS, INC…DTSL
255090102 Diverse Media Group…DVME
256647108 Doll Technologies…DTGP
272023102 East Delta Resources Corp.…EDLT
27885L205 ECO DEPOT, INC…ECDP
281373100 eDoorways International Corp...EDWY
283284107 EL MANIEL INTERNATIONAL, INC.…EMLL
28486A101 Electric Car Company, Inc.…ELCR
29101R107 Emerging Healthcare Solutions Inc.…EHSI

29078T102 eMAX Holdings Corporation......EMXC

29102A103 EMERGING WORLD PHARMA INC.…EWPI
29203A101 Empire Pizza Holdings Inc. (formerly Wisebuys Inc.)…EMPZ
29271K106 Energy 1 Corporation…EGOC
30050F201 Evolution Solar Corporation…EVSO
346196108 Forest Resources Management Corp.…FTRM
37364Q104 Geotec Inc.…GETC
37945C202 Global Resource Corporation…GBRC
16949U103 China Food Services Corporation.........GDHI
37950D103 Z Com Networks Inc. (Global Gateway Media )…GGMC

37990H205 Global Earth Energy, Inc.…GLER
37990T100 CHINA MOBILITY SOLUTIONS, INC…GPPL
38019R109 Go Solar USA Inc.…GSLO
380708107 Gold River Productions, Inc.......GRPS
39303U105 Green Energy Live Inc.…GELVD
393048202 Green Globe International, Inc.…GGII
39468C106 GREENE CONCEPTS, INCORPORATED.…LKEN
39573P208 Greenstone Holdings, Inc.…GSHN
40131V109 GUARD DOG, INC.…GRDO

378949101 Global Technologies Limited......GTLL
422463109 Heathrow Natural Food and Beverage…HRNF
423258201 Heli Electronics Corp.…HELI
42331P106 Helix Wind Corp.…HLXW
G4411NAA5 Heritage Investment Capital I, LTD.…?
428397301 HI SCORE CORP.…HSCO
439338203 Hop-On Inc…HPNN
449399104 IDO Security, Inc.…IDOI
45248C100 ImagExpres Corp.…IMJX
456635101 Infinity Medical Group…IMGR
45663R202 INFINITE TECHNOLOGY CORP…ITCJ
45775F104 Innolife Pharma Inc.…INNP
46589F108 Montvale Technologies Inc.…IVVI
45823U103 Intelimax Media, Inc.........IXMD
47188V205 JAVA DETOUR, INC.…JVDTQ
49127G208 KENTUCKY ENERGY INC…QMIN
50062A107 Kore Nutrition Inc.…KORE
50730N101 Laidlaw Energy Group Inc.…LLEG
527299101 Level Vision Electronics LTD.…LVLV
53184V108 Life Exchange Inc.…LFXG
53219E808 Lifeline Biotechnologies Inc.…LLBO
53224L102 Lighthouse Petroleum, Inc......LHPT
53680P100 LITHIUM EXPLORATION GROUP INC…LEXG
54141Y102 LOGISTICAL SUPPORT INC…LGSL
54569N109 Lotta Coal Inc.…LCOL
553570102 MSGI Technology Solutions Inc.…MSGI
554042101 M-WISE, INC.…MWIS
554187104 Macada Holding, Inc.…MCDA
559071204 Magellan Energy…MGLG
55970P203 Magnum d'Or Resources, Inc.…MDOR
568093108 Marinas International Inc.…MNSI
57059N109 Marketing Concepts Intl ( Blagman Media Int Inc.)…MCCI
572356202 Marshall Holdings Intl Inc. ( Gateway Distributors, Ltd)…MHLI
60254U100 Mind Technologies Inc.…MTEK
60742G101 Mobile Media Unlimited Holdings, Inc.…ENTS
607587409 Modern Energy Corp.…MDRG
62472C102 MPhase Technologies, Inc.…XDSL
626137202 MUNDUS GROUP, INC…MNDP
62847C100 My Vintage Baby Incorporated…MVBY
62847Q109 My Social Income, Inc.…MSOA
67020G109 Nu Star Holdings.....NSHJ
670762202 Perihelion Global Inc. ( NY Met Holdings)…NYMH
682347208 141 Capital Inc.…ONCP
68403Y105 Optimized Transportation…OPTZ
67107C104 O2 Secure Wireless, Inc........OTOW
69353D109 PPJ Enterprise…PPJE
69372L850 Pacel Corp.…PCLO
71943E100 PHYSICAL PROPERTY HOLDINGS, INC.…PPYH
73106P104 POLARIS INTL HLDG INC…PIHN
732816103 POP N GO INC…POPN
74030P103 Precision Petroleum Corp.....PPTO
74161T106 PRIMEGEN ENERGY CORP…PGNE
74163K103 Prime Star Group Inc.…PSGI
74266D303 Pro Elite, Inc.…PELE
743423204 PROM RESOURCES INC…PRMO
74624D102 PureSpectrum, Inc.........PSRU
74836C108 Quest Oil Corp.…QOIL
749126207 Quri Resources Inc.…QURS
7575914R107 Registered Express Corporation....RGTX
583Q109 Real American Brands/Capital Inc.....RLAB
749283206 RBID.com Inc.…RBDC
749318101 RCC Holdings Inc.…RCCH
75883Q106 REGAL RESOURCES, INC…RSOU
766883102 Rino International Corp.…RINO
78249M603 Russell Industries, Inc.…ALGF
784484107 SMC RECORDINGS INC…SMCE
78637Q109 SAFE & SECURE TV CHANNEL INC…SSTC
786498204 Safeguard Holdings…SSHS
80917T308 SCORE ONE, INC.…SREA
81213Y108 SeaLife Corporation…SLIF
81941R102 PINGCHUAN PHARMACEUTICALS, INC.…PGCN
827692104 Silver Dragon Resources, Inc.…SDRG
832673107 Smokefree Innotec, Inc.…SFIO
83415P208 Solarbrook Water and Power Corporation.......SLRW
83416L107 Solar Park Initiatives Inc.…SOPV
83420E107 Solei Systems, Inc.…SOLI
847248200 SPATIALIGHT, INC.…SPLT
84915Q100 Spooz, Inc.…SPZI
86273M100 Strategic Management & Opportunity Corp.…SMPP
86768Q103 Sunrise Consulting…SNRS
888728102 Tivus, Inc...........TIVU
87874P203 Techs Loanstar, Inc..........TCLN
886352202 TidalWave Holdings Inc.…TWVH
89149H305 Total Apparel Group, Inc.…TLAG
89324A109 Trans Global Group Inc.…TGGI
90264C105 UC HUB Group…UCHB
902658103 UDS Group Inc.…UDSG
913459202 Universal Detection Technology......UNDT
91021P207 United Enviro Energy Corp.…UTEM
91232R109 United States Oil & Gas Corporation…USOG
913513107 Universal Food and Beverage, Inc.…UFBV
91688L200 Uptrend Corporation…UPCP
91888T409 Valcom, Inc.…VLCO
922576202 Veltex Corp.…VLXC
92658Y206 VIDEOLOCITY INTL, INC…VCTY
92763N103 VIPR Industries, Inc.…VIPR
92852R205 Vivakor, Inc.…VIVK
92909T204 VSheild Software Corp.…VSHE
929367100 WW Energy Inc.…WWNG
933706103 Wannigan Capital Corp. ( ThermoElastic Tech. Inc.)…WGAN
936902501 Wasatch Pharm Inc.…WSCH
983092206 Wyncrest Group, Inc......WNCG
98148A203 World Hockey Association…WHKA
98159A100 Wordwide Biotech & Phar, Inc.…WWBP
982557209 Writer’s Group Film Corporation........WRIT
98974R502 Zippi Networks Inc.…ZIPZ

SYMBOLS ONLY:

AFTI
AKYI
ADOT
ACHM
ADCS
ATPT
AMNG
ANDI
APRM
ANWM
AQUS
AAVG
AXGC
BIHC
BEDA
BRMC
BRZL
BVRG
BEHL
BKPR
CTTD
CLYW
CMGR
CMGR
CNEX
CDOI
CDIV
CIST
CHJI
CAEJ
CDGT
CCME
CLDR
COUV
CPMCF
CGFIA
CWRN
CPHG
CYGX
DMTA
DGMA
DGRI
DTSL
DVME
DTGP
EDLT
ECDP
EMLL
ELCR
EHSI
EWPI
EMPZ
EMXC
EGOC
EVSO
FTRM
GETC
GBRC
GDHI
GGMC
GLER
GPPL
GRPS
GSLO
GELVD
GTLL
GGII
LKEN
GSHN
GRDO
HRNF
HELI
HLXW
?
HSCO
HPNN
IDOI
IMJX
IMGR
ITCJ
INNP
IVVI
IXMD
JVDTQ
QMIN
KORE
LLEG
LVLV
LFXG
LHPT
LLBO
LEXG
LGSL
LCOL
MSGI
MWIS
MCDA
MGLG
MDOR
MNSI
MCCI
MHLI
MTEK
NSHJ
ENTS
MDRG
XDSL
MNDP
MVBY
MSOA
NYMH
ONCP
OPTZ
OTOW
PPJE
PPTO
PCLO
PPYH
PIHN
POPN
PGNE
PSGI
PELE
PRMO
PSRU
QOIL
QURS
RLAB
RBDC
RCCH
RGTX
RSOU
RINO
ALGF
SMCE
SSTC
SSHS
SREA
SLIF
PGCN
SDRG
SFIO
SOPV
SOLI
SPLT
SPZI
SMPP
SNRS
SLRW
TCLN
TIVU
TWVH
TLAG
TGGI
UCHB
UDSG
UNDT
UTEM
USOG
UFBV
UPCP
VLCO
VLXC
VCTY
VIPR
VIVK
VSHE
WNCG
WWNG
WGAN
WSCH
WHKA
WRIT
WWBP
ZIPZ

JimLahey

09/20/11 1:46 PM

Post #141

Development Valuation Cycle Video

The Development Valuation Cycle is explained by South American Silver President & CEO Greg Johnson and how investors can use it to help identify quality investments in junior mining and exploration companies.

Watch Here

MaxShockeR Free

09/19/11 9:48 PM

Post #140

SEC Announces Roundtable on Microcap Securities

FOR IMMEDIATE RELEASE 2011-186

Washington, D.C., Sept. 19, 2011 — The Securities and Exchange Commission today announced that it will host a public roundtable next month to discuss the unique regulatory issues surrounding the execution, clearance, and settlement of microcap securities.

The roundtable is being sponsored by the SEC’s Microcap Fraud Working Group, a joint initiative of the Division of Enforcement and Office of Compliance Inspections and Examinations. The Working Group is the Commission’s primary resource for issues relating to market participants and trading practices concerning securities primarily quoted on the OTC Bulletin Board (OTCBB) or OTC Quote (previously Pink Sheets).

The event will take place on October 17 from 1 p.m. to 5 p.m. at the SEC’s Washington D.C. headquarters. It will feature in-depth discussions of key regulatory issues including Anti-Money Laundering monitoring, compliance challenges, and potential changes to the regulatory framework. Panelists will include representatives from The Deposit Trust Company, broker-dealers, the Financial Industry Regulatory Authority and others.

The roundtable is part of an ongoing SEC effort to focus on the particular challenges facing issuers and regulated entities within the changing business and regulatory climates. The purpose of the roundtable is to enable Commission staff to gather ideas and request input for regulatory measures surrounding the execution, clearance and settlement of low-priced securities.

The event is open to the public with seating available on a first-come, first-served basis. The roundtable also will be webcast live on the SEC website and archived for later viewing. For more information about the roundtable, contact the Division of Enforcement at 202-551-6607.

http://www.sec.gov/news/press/2011/2011-186.htm

$SEC

bsmitty

09/13/11 3:36 PM

Post #139

Re: #137: @MaxShockeR - IDK...i think they are in the process of

STT s back up now. I made it over there finally

bsmitty

09/07/11 10:32 AM

Post #138

Re: #137: @MaxShockeR - IDK...i think they are in the process of

yea its a new site now. I remember seeing someone was trying to sell it. O well

MaxShockeR Free

09/06/11 6:10 PM

Post #137

Re: #136: @bsmitty - What happened to the STT site, any ideas?

IDK...i think they are in the process of merging databases or under maintenance, im only a user will wait a couple of days to go back on

bsmitty

09/06/11 2:39 PM

Post #136

Re: #135: @MaxShockeR - What Triggered Pensons Problems...

What happened to the STT site, any ideas?

MaxShockeR Free

09/06/11 1:05 AM

Post #135

Re: #134: @$hellKing - Thanks for the links. I like the

What Triggered Pensons Problems...

whats funny about it is that 3 months later we are paying the price for their own stupid mistakes ;-\

> May 21 2011 Penson Clearing Firm Rattles Investors

A recent research note from Sandler O'Neill analyst Richard Repetto set traders' and investors' nerves on edge when he detailed clearing-outfit Penson Worldwide's revelation that it held $42.6 million of possibly illiquid bonds issued by a horse-racing-track operator linked to a Penson director. Much ink and many pixels have been spilled discussing what the company's extremely belated regulatory disclosure means. The immediate effect was clear: Within days, the company's stock-market value was nearly halved, to about $3.12 a share. And the director resigned.

The news prompted us to look again at our annual review of online brokers ("Making the Right Connection," March 14). Quite a few of them clear their trades through Penson (ticker: PNSN). The firm specializes in clearing derivatives transactions, so it was no surprise to see options heavy-hitters like eOption, OptionsHouse, thinkorswim, TradeKing and tradeMonster on its customer list. (Thinkorswim has not yet been completely folded into the TD Ameritrade clearing operation; its separate customer base still clears its transactions at Penson.) Also on the client list: A.B. Watley, ChoiceTrade, Cobra Trading, Lightspeed Trading, MB Trading, SogoTrade, SpeedTrader, TradingBlock and Zecco.

We also got lots of e-mails from readers asking, in essence, "What will happen to my money if Penson collapses?" One wrote that he was closing an account at a firm that cleared through Penson, and thanked me for the table in our annual review that gave him ideas on where to transfer assets (see "Barron's 2011 Online Broker Review: How the Brokers Stack Up").

Penson has maintained that the bond position won't have any meaningful effect. In an e-mail via Penson's public-relations office, Vice Chairman Daniel P. Son explained that the "situation occurred as a result of an expansion of our disclosure in our most recent Form 10-Q about certain receivables where the collateral had reduced liquidity. Unfortunately, we believe, investors misunderstood some of the information." Son said that Penson will recover those receivables without a loss, but even if a loss did happen, there would be no impact on the firm's ability to clear trades, since the funds involved are separate from Penson's regulatory capital. However, Penson CEO Phil Pendergraft said later at an investor conference that the company could have a "material" loss after writing down the loan. He said he still expects Penson to post a profit this year.

SHOULD YOU WORRY IF YOUR broker clears through Penson? You should watch how Penson responds to this mess, but there's no need to move money based on its current financial position. It takes a near-perfect storm, including a major market drop and a lot of trading on margin, to force a clearing operation out of business. We witnessed a failure in mid-2008, when North American Clearing went under, tangling trades for its brokerage clients and their customers for a month. That doesn't seem to be the case here.

Even if the illiquid investment bled into Penson's regulatory capital, there is insurance through the Securities Investor Protection Corp. (SIPC), a federally mandated entity funded by broker-dealers, that covers up to $500,000 of stocks, options and bonds per account. Futures contracts, commodities and currencies are among the assets ineligible for coverage. Most brokers carry additional insurance, called excess SIPC coverage, that insures assets above the $500,000 ceiling. Check out the SIPC Website (www.sipc.org) to learn more.

If you are not borrowing money from your broker by using margin, or shorting stock, your trades don't make it onto the clearing firm's books. If you are using margin, then the clearing firm has collateral from you on the other side of its balance sheet, in case there's a problem. Penson's role in a transaction is to process trades electronically for its broker clients, and to make sure that the appropriate funds are in the right place at the right time.

Several executives of online brokers who clear through Penson spoke with us on the condition that their names not be used. The general reaction was that the disclosure of the illiquid loan was a public-relations disaster rather than a sign of impending financial doom.

One said that Penson's business will be fine, but that its management has a lot to answer for. "They should disclose every security on their books to regain confidence. They should fire everyone running it, and start over with new management," fumes the brokerage official. (Penson director Thomas R. Johnson resigned his board post on May 12. Johnson is chief executive of Call Now, which manages the Texas race track for the company that issued the bonds. Call Now was also an early investor in Penson.)

AN OFFICIAL AT ANOTHER BROKER says that regulators at the Securities and Exchange Commission and the Financial Industry Regulatory Authority "are all over this." If Penson were to try to hide something from the regulators, "they'll get a nice orange jumpsuit to wear for a few years." Although he's disappointed with the firm, the executive notes that Penson easily meets all regulatory standards. At a firm geared to active options traders, a senior manager compares clearing firms to waiters: "If they do a good job, you never think of them." Penson has more than $100 million in excess regulatory capital, according to Vice Chairman Son.

This same official points out Penson's technology for clearing derivative and futures trades is "way ahead of everyone else." The company, he notes, serves not just brokerage firms but hedge funds and proprietary trading firms.

Most important for Penson, none of these executives were about to pull the plug on their clearing relationship with the firm, and few of their customers have made any noises about moving their accounts. One brokerage official said that if his firm saw customers leaving due to their clearing operation, then it would have to reassess the relationship. Changing clearing firms is a huge, time-consuming undertaking.

It appears to me that moving an account away from a brokerage that clears through Penson just because of this disclosure would be a major time-sink, without much return. However, I do believe that some house-cleaning is needed—quickly—at Penson, and that it should discuss its practices and its services with brokerage customers. No doubt, Penson's rivals already are reaching out to many of these brokers.

$POS

$hellKing

09/01/11 11:01 AM

Post #134

Re: #126: @MaxShockeR - Penson Discontinues Execution for Certain Non-DTCC Eligible Securities

Thanks for the links. I like the DTC lookup one. They need to add those symbols that Zecco put out bc I just checked 3 that I know arent DTC eligible and they are showing eligible.

MaxShockeR Free

08/31/11 5:20 PM

Post #133

Penson's restructuring plans & Letter of New Low price Security Policy

> Penson Worldwide plans restructuring, posts wider Q2 loss

Thu Aug 4, 2011 6:32pm EDT

(In paragraph 12, corrects interest expense numbers on long-term debt)

* To restructure co, cut debt

* To sell assets to raise capital

* Q2 loss/shr $1.06vs $0.29 yr-ago

* Q2 oper loss $0.12/shr

* Q2 rev $78.5 mln

Aug 4 (Reuters) - Penson Worldwide Inc , which posted a fifth straight quarterly loss on Thursday, said it plans to restructure itself after the securities clearing firm was hurt by low trading volumes and depressed interest rates.

Declining trading volumes have forced companies like Investment Technology Group and electronic trader Knight Capital to downsize their work force and cut costs.

Penson Worldwide, which has a market capitalization of $75 million, has lost nearly half its value since making troubling collateral disclosures in May.

The company said it is in talks to sell Penson Financial Services Ltd in London, and exploring options to run its Australia unit as a partnership or go in for an outright sale.

Penson, which has seen price target cuts from brokerages in July, said it expects the restructuring to help it save $24 million annually, and hopes to raise $100 million from the sale of assets.

The company said it would expand its outsourcing agreement with Broadridge Financial Solutions to include Penson's data centres and save an additional $15-$18 million. It's current agreement with Broadridge helps it save $7-$10 million.

Penson will also combine its U.S. futures and broker-dealer business into Pension Financial Services to free up $30 million in regulatory capital and cut costs by $2 million annually.

Chief Executive Phillip Pendergraft said in a statement that the clearing firm is "determined to return to profitability."

The cost savings and increased liquidity are expected to make the company profitable, strengthen the regulatory capital position of its operating units and pay down debt.

For the second quarter, Penson Worldwide's net loss widened to $30.2 million, or $1.06 per share, from $7.4 million, or 29 cents a share, last year.

Loss from operations was $3.5 million or 12 cents per share.

The interest expense the company had to pay on its long-term debt rose to $9.7 million from $7.4 million last year.

Shares of the Dallas-based company closed at $2.61 on Thursday on the New York Stock Exchange. (Reporting by Rachel Chitra in Bangalore; Editing by Roshni Menon)

> Penson Letter...New Low price Security Policy Aug 13 2011

http://www.moneywrx.com/pennies.pdf

MaxShockeR Free

08/31/11 4:57 PM

Post #132

Penson under investigation Over Possible Violations Of Securities Laws

> Penson Worldwide Inc Under Investor Investigation Over Possible Violations Of Securities Laws

After PNSN shares fell almost 50% within days an investigation on behalf of investors in shares of Penson Worldwide, Inc. (NASDAQ:PNSN) over possible violations of Federal Securities Laws was announced.

The investigation by a law firm concerns on whether the Penson Worldwide, Inc. or others have violated federal securities laws by issuing false and misleading statements to the investing public.

Penson Worldwide’s 12months Total Revenue decreased from $404.80million in 2007 to $310.62million in 2010. Its Net Income fell from $26.83million in 2007 to a Net Loss of $19.85million in 2010.

Shares of Penson Worldwide, Inc. (NASDAQ:PNSN) fell from as high as $31.50 during 2007 to $4.34 in 2009 and $4.61 during September 2010.

During the first months of 2011 PNSN shares reached over $7 per share.

Then on May 9, 2011 Penson Worldwide, Inc filed its quarterly report with the U.S. Securities and Exchange Commission. In the report Penson Worldwide, Inc disclosed, among other things, that: “With respect to the Nonaccrual Receivables, at March 31, 2011, […] approximately $42.6 million were collateralized by bonds issued by the Retama Development Corporation (“RDC”) and certain other interests in the horse racing track and real estate project […] financed by the RDC’s bonds.
In each case these are owned by customers and pledged to the Company and/or its affiliates.

Certain related parties to the Company own approximately $14.7 million of RDC bonds that are pledged to the Company and/or its affiliates […].”

Then on May 12, 2011 PNSN stock fell to $2.74 per share after Penson Worldwide, Inc announced that on the same day Mr. Thomas R. Johnson delivered notice of his immediate resignation as a member of the Board of Directors of Penson Worldwide, Inc.
Penson Worldwide, Inc disclosed that “based on Mr. Johnson’s position as chief executive officer of Call Now, Inc, a holder of a portion of the Retama related collateral, both Mr. Johnson and the Company felt it appropriate for him to resign his position at this time.” Philip A. Pendergraft, Chief Executive Officer of Penson Worldwide, Inc said in the May 12 announcement that they “believe the activity of the Company’s stock related to the Retama related collateral is unwarranted.” And that they hope this news release will aid in putting this issue to rest”.

Shares of Penson Worldwide, Inc. (Public, NASDAQ:PNSN) closed on Friday May 13, 2011 at $3.34 per share.
Shareholders Foundation, Inc.
www.ShareholdersFoundation.com

> May 11 2011 Penson Worldwide, Inc. Says Market Activity Related to Non Accrual Receivables
http://www.businesswire.com/news/home/20110512006938/en/Penson-Worldwide-Market-Activity-Related-Accrual-Receivables

MaxShockeR Free

08/31/11 4:53 PM

Post #131

Multi Class Action Lawsuits Against Penson Worldwide

> Thursday, 25 Aug 2011 06:01pm EDT

The Rosen Law Firm, P.A. announced that a class action lawsuit has been filed on behalf of investorswho purchased the common stock of Penson Worldwide, Inc during the period between February 10, 2011 and August 4, 2011, inclusive (Class Period), seeking to recover damages for violations of federal securities laws. According to the Complaint, during the Class Period Penson concealed from investors that: (a) the Company had approximately $96-97 million in receivables, of which approximately $43 million were collateralized by illiquid securities and therefore unlikely to be collected; (b) the Company's assets (Nonaccrual Receivables) were materially overstated and should have been written down; (c) as a result, the Company's reported income and EBITDA (earnings before interest, taxes, depreciation and amortization and stock-based compensation, and excluding certain non-operating expenses) were materially overstated; and (d), the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles.

> Thursday, 25 Aug 2011 12:58pm EDT

The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announced that a class action has been filed against Penson Worldwide, Inc for alleged violations of federal securities laws. The firms are investigating additional legal claims against the officers and Board of Directors of Penson related to potentially misleading statements issued by Penson between February 20, 2011 and August 4, 2011 (Class Period).

> Wednesday, 24 Aug 2011 08:15pm EDT

Law Offices of Howard G. Smith announced that a class action lawsuit has been filed on behalf of purchasers of the common stock of Penson Worldwide, Inc between February 10, 2011 and August 4, 2011, inclusive (the Class Period), seeking to pursue remedies under the Securities Exchange Act of 1934. The class action lawsuit was filed in the United States District Court for the Northern District of Texas. The Complaint alleges that during the Class Period, Penson concealed from investors that by at least the end of 2010: (1) the Company had approximately $96-97 million in receivables, of which approximately $43 million were collateralized by illiquid securities and therefore unlikely to be collected; (2) the Company’s assets (Nonaccrual Receivables) were materially overstated and should have been written down at least by the end of 2010; (3) as a result, the Company’s reported income and EBITDA (earnings before interest, taxes, depreciation and amortization and stock-based compensation, and excluding certain nonoperating expenses) were materially overstated; and (4), the Company’s financial statements were not prepared in accordance with Generally Accepted Accounting Principles.

> Wednesday, 24 Aug 2011 01:06pm EDT

Federman & Sherwood announced that on August 23, 2011, a class action lawsuit was filed in the United States District Court for the Northern District of Texas against Penson Worldwide, Inc The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market which had the effect of artificially inflating the market price. The class period is from February 10, 2011 through August 4, 2011.

> Aug. 24, 2011, 4:34 p.m. EDT

The Law Firm of Levi & Korsinsky Notifies Investors With Losses on Their Investment in Penson Worldwide, Inc. of Class Action Lawsuit and Lead Plaintiff Deadline of October 24, 2011

NEW YORK, NY, Aug 24, 2011 (MARKETWIRE via COMTEX) -- Levi & Korsinsky announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of Texas Dallas Division on behalf of purchasers of Penson Worldwide, Inc. ("Penson" or the "Company") /quotes/zigman/97840/quotes/nls/pnsn PNSN -2.83% common stock from February 20, 2011 through August 4, 2011.

For more information, click here: zlk.9nl.com/penson-worldwide .

Prior to and during the Class Period, Penson derived a material part of its revenue and income from interest it received on margin loans to customers for which its customers pledged collateral in return for such loans.

The complaint alleges that during the class period, defendants issued materially false and misleading statements regarding and concealed from investors that, by at least the end of 2010, a) the Company had approximately $96-97 million in receivables ("Nonaccrual Receivables") of which approximately $43 million were collateralized by illiquid securities and therefore unlikely to be collected; b) the Company's Nonaccrual Receivables were materially overstated and should have been written down at least by the end of 2010; c) as a result, the Company's reported income and EBITDA were materially overstated; and d) the Company's financial statements were not prepared in accordance with generally accepted accounting principles (GAAP).

If you are a member of the class and suffered a loss in Penson stock, you have until October 24, 2011 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. To obtain additional information about your rights, contact Joseph Levi, Esq. either via email at jlevi@zlk.com or by telephone at (877) 363-5972, or visit http://www.zlk.com/penson-worldwide-pnsn.html .

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. For more information, please feel free to contact any of the attorneys listed below. Attorney advertising. Prior results do not guarantee similar outcomes.

$POS

MaxShockeR Free

08/29/11 6:32 PM

Post #130

Finra's Daily Short Sale Volume Info

An explanation of Finra's daily short volume

The daily short interest report from FINRA is as widely misinterpreted as any report ever put out. Yet, once a few basics are understood, it becomes very logical. The huge short volume seen in the daily reports are almost instantaneously covered; within a few milliseconds or a few hours at worst. The best explanation of this report, that I've ever seen, was posted by "Dave Patch" of "Investigatethesec.com."

Short Sale Volume Reporting’s are deceiving.

I spoke to FINRA today and found out some very interesting things that until now I did not fully understand. I knew there was something wrong with this transparency of information but was not 100% sure what it was. I think I have my answer and it was enlightening.

I was first directed to the Notice to Members memo dated 9/29/2009

http://www.finra.org/Industry/Regulation/Notices/2009/P120045

The individual I spoke with wanted to make clear that to maintain proper trade volume reporting accuracy, a trade with multiple legs in the trade would only be reported once in the volume reports. The example given would be.

Investor A is long 100 shares and wants to sell. They enter the order through their broker that is routed to a market maker. That market maker will go out and sell the stock into the market before they have bought the stock from you/your broker to close out their account. They do not take possession first as there is no guarantee they can sell the order into the market. By this Notice, the actual sale INTO the market is a short sale because the market maker sold the stock into the market BEFORE they had purchased the stock from you. It is a technicality since they know there position will be closed out minutes later when they go in and buy your shares. To avoid doubling up on trade volume and distorting the picture, only the sale into the market (consolidated tape) is recorded and not the second leg which was the sale transaction between seller and market maker.

So, this is why the short sale volume is high but also why the FTD’s and bi-Monthly short interest reports are not showing any indications of this volume. The short isn’t really a short it is the execution of a long sale by a market maker.

$FINRA
$SHORT

(posted by pantherj)

MaxShockeR Free

08/19/11 10:34 PM

Post #129

Canada's Anti-Spam Law Affects U.S

Aug. 19, 2011 6:30 a.m.

TORONTO -- U.S. businesses who do business with Canadian firms may have to change the way they approach electronic communication starting this fall. That's when Canada's new Anti-Spam and Online Fraud Act comes into play, and it's one of the most rigid in the world.

The new law has serious implications for any business that sends commercial electronic messages, including e-mails, texts, instant messages, or social media messages, to customers or suppliers in Canada, according to Barbara McIsaac, counsel in the Ottawa office of the law firm Borden Ladner Gervais LLP.

The new act, which is designed to prohibit unsolicited and misleading electronic communication and online fraud, outlines a number of new offenses, enforcement mechanisms, and severe penalties of up to $1 million for individuals and $10 million for organizations. Businesses must move swiftly to ensure compliance and reduce risk.

"Unless the recipient has given consent -- or opted-in -- to receive the communication, and the message complies with very specific formalities, businesses are going to find it much more difficult to send electronic messages with commercial content," McIsaac said.

"This new legislation will impact any American business that communicates with Canadian customers or transmits data through Canadian servers," she continued. For most organizations, the key part of the act is the new rules of consent around almost every commercial e-mail, text or social media message a business sends."

In many countries, including the United States, recipients are offered the option to "opt-out" once an e-mail message is received. When e-mailing Canadian customers, businesses now will be required to obtain recipient consent prior to sending the message. What may prove challenging for many businesses is the need to obtain consent without the ability to send a message requesting consent, McIsaac emphasized.

To reduce risk once the act comes into place, BLG recommends that businesses begin preparations now, and offers the following tips:

* Conduct an internal audit to account for all external-facing electronic communications distributed by the organization. Consider relevant third parties such as distributors or marketing agencies, and the location of any external servers.
* Establish procedures to ensure that all customer or supplier-facing messages are accurate and comply with new requirements, including information disclosure language and an unsubscribe mechanism that is promptly implemented.
* Obtain and maintain an accurate and current list of recipients' consent to receive messages. Instances of express and implied consent should be handled separately to ensure clarity and compliance.
* Revise contracts with any relevant third parties that distribute electronic messages on behalf of the organization to require compliance with the act.
* Clearly communicate and educate relevant employees on policies that need to be implemented as a result of the act. Consider holding staff training programs to ensure everyone is clear on both the guidelines and the risks.
* Put into place a gate keeping process to ensure that established procedures for monitoring compliance are being followed.
* Obtain insurance to protect the business, corporate directors and officers from liability.

Published by The Business Journal, Youngstown, Ohio

source: Business Journal: Canadas-AntiSpam-Law-affects-US

Older Newer

Trading Tips 101

Followers	16	Posters	24
Posts (Today)	0	Posts (Total)	253
Created	11/27/10	Type	Free
Moderator Joe1979
Assistants steved_45 MaxShockeR

***** NO STOCK PICKS BOARD - THIS BOARD IS ONLY FOR EDUCATIONAL PURPOSES & ARCHIVES ONLY *****

I-Hubs Stock Market 101

The Question and Answer Board (IHUB)

The Acronyms Board

You can file a complaint with the SEC, FINRA, AMF, FTC, ORSA, NASAA, your state's securities regulator or the FBI:

-"S.E.C" U.S. Securities and Exchange Commission Investors may file a complaint electronically at the SEC Investor Complaint Center
http://www.sec.gov/complaint/tipscomplaint.shtml or call or fax: Phone: (800) 732-0330 (toll-free) Fax: (202) 772-9295
SEC Addresses: Headquarters and Regional Offices - http://www.sec.gov/contact/addresses.htm

-"FINRA" Investors may file a complaint electronically at the FINRA Investor Complaint Center
http://www.finra.org/Investors/ProtectYourself/p118628 or call or fax: Phone: (240) 386-HELP (4357) Fax: (866) 397-3290

-"N.A.S.A.A" Your State's Securities Regulator Investors may file a complaint at the "North American Securities Administrators Association" Complaint Center
http://www.nasaa.org/about-us/contact-us/contact-your-regulator/ or call: Phone: (888) 846-2722 (toll-free)

-"AMF" Complaints Filing aka "Canada's SEC - Authority Markets Financials"
http://www.lautorite.qc.ca/en/file-complaint-conso.html or call Toll-free: 1-877-525-0337 or by email information@lautorite.qc.ca

-"FTC" Federal Trade Commission You may file an online complaint at http://www.donotcall.gov or call: Phone: (888) 382-1222 (toll-free)

-"ORSA" Options Regulatory Surveillance Authority. http://www.cboe.com/AboutCboe/legal/departments/orsareg.aspx

-"F.B.I" "The Federal Bureau of Investigation" http://www.fbi.gov/scams-safety/fraud/internet_fraud

http://www.justice.gc.ca/ (Canada's Justice DPT)
http://www.justice.gov/ (U.S.A Justice DPT)