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ABWTQ -- Full Recognition of Carbon Credit Selling
When an "Institutional Client (School Board)" starts selling Carbon Credits (over Five Years), you know this thing is the real deal.
No wonder Fairfax is playing games --- look at the involvement by a couple of the Big Canadian Banks.
imo, it's the real deal on Cap & Trade -- start you engines.
------------------
TDSB adopts innovative approach to finance environmental improvements
Greening Canada Fund to purchase carbon credits from School Board
NOTE TO EDITORS: There will be a media availability session and tour later this morning to discuss the following announcement. TDSB Chair Bruce Davis and Greening Canada Fund president Gerry Rocchi will answer media questions about this unique transaction at 11:00 a.m. (EDT) at Hillcrest Community School, 44 Hilton Ave., Toronto. To attend, RSVP to Brian Smith. A photo will be available on CNW following the briefing/tour.
TORONTO, June 9 /CNW/ - The Toronto District School Board (TDSB) and the Greening Canada Fund (GCF) signed an agreement this week under which TDSB will begin selling carbon credits to GCF - credits created from results of the Board's efforts to make significant reductions to its greenhouse gas emissions. Over five years, this innovative transaction - one of the first of its kind - is expected to generate more than $1.7 million for TDSB.
Since 2000, TDSB has invested more than $38 million in energy reduction projects that have produced an 18% reduction in greenhouse gas emissions. Those emission reductions have been measured and verified and will be sold through GCF, with the revenue reinvested in the Board's Environmental Legacy Fund Reserve to support future energy reduction projects. "Selling carbon credits is a first for us and a vital part of our Go Green: Climate Change Action Plan. This is an important step along the way," said Board Chair Bruce Davis, while on a tour of Hillcrest Community School - one of the properties benefiting from the Board's energy retrofit projects, today and into the future.
In February 2010, the Board approved an ambitious Climate Change Action Plan to reduce building-related GHG emissions by a minimum of 20% by 2020, relative to a 2006 baseline. The Board's plan consists of a number of actions designed to continue to reduce its environmental footprint. Many of the actions outlined in the plan will generate additional carbon credits and the potential to earn additional revenue to support the Board's programs.
The purpose of the Greening Canada Fund, created by the Toronto City Summit Alliance's Greening Greater Toronto initiative in 2009, is to purchase high-quality carbon credits, such as those offered by the TDSB, for the benefit of the Fund's investors - Canadian corporations that have made a commitment to reduce their environmental impact while supporting local community energy efficiency and renewable energy initiatives.
"A unique feature of the Fund is our commitment to source the majority of our carbon credits from social and not-for-profit organizations such as Canadian public schools, hospitals and community housing," said Gerry Rocchi, CEO of Green Power Action Inc., the fund manager for the Greening Canada Fund. "In this way, our investors are not only helping the environment but investing in worthwhile community projects as well." Green Power Action Inc. is a Toronto-based company specializing in the management of carbon offset credits.
Two of Canada's largest financial institutions were the lead investors in the Fund and committed an initial $13 million to its creation. The two banks - BMO Financial Group and TD Bank Financial Group - have each made a public and voluntary commitment to operate as carbon neutral.
About Toronto District School Board:
The Toronto District School Board is the largest school board in Canada and the fourth largest in North America. It has nearly 600 schools and serves more than 250,000 students each year. The Board's climate change action plan, Go Green, builds upon ten years of work that has already been done to establish the TDSB as Canada's greenest school board.
About Green Power Action Inc.:
Green Power Action, a Toronto based company, specializes in the management of carbon offset credits and renewable energy certificates. Its clients are corporations who are aware of the value of managing their environmental impact, whether for voluntary or compliance purposes. Green Power Action is the manager of the Greening Canada Fund.
About Greening Canada Fund:
The Greening Canada Fund is the first ever voluntary carbon emissions reduction fund aimed exclusively at large Canadian corporations. It was created by Toronto City Summit Alliance's Greening Greater Toronto initiative to provide emission reductions opportunities for Canadian corporations, primarily by financing not-for-profit and public sector projects to reduce greenhouse gases. Launched in September 2009 with initial investments from BMO Financial Group and TD Bank Financial Group, GCF purchases and delivers carbon offset credits sourced from across Canada.
Goldman telling its best Hedge Fund clients, buy lumber
Now -- it looks like the gap from early January (low $200's) will be filled. And maybe tested once more.
It now looks like a 39 day algorithim program "decline" in lumber from its $320 high.
-----------------
Again, ask Tembec -- they say its rigged -- they are in the know. This is why an "injunction" against ABWTQ may be the likely way (in the end) of delaying the BK Process out umtil 2011.
The longer the better.
-----------
More articles of the impending Cap & Trade issue (in light of the BP oil spill. Note: Washington Post.
I will post some stuff on Fairfax later. You can see where their investments are -- and that's probably why Prem Watsa is running circles around on this one.
Bonds still trading at par,
Then manipulated manually. Same with two others.
Last Updated: 6/8/2010
Corporate Bond Search Results
Tuesday, June 08, 2010
Ratings Last Sale
Include in
Watchlist Bond Symbol
Issuer Name
Coupon
Maturity
Callable
Moody's
S&P
Fitch
Price
Yield
BOW.GB BOWATER INCORPORATED
9.00 08/01/2009 No NR NR C 100.000 -
ABY.GB ABITIBI CONSOLIDATED INCORPORATED
7.88 08/01/2009 Yes NR NR C 99.882 -
BOW.GK BOWATER INCORPORATED
4.32 03/15/2010 Yes NR NR C 100.000 -
ABY.GH ABITIBI CONSOLIDATED INCORPORATED
8.55 08/01/2010 Yes NR NR C 99.781 -
ABY.GN ABITIBI CONSOLIDATED COMPANY OF CANADA
7.75 06/15/2011 Yes NR NR C - -
ABY.GO ABITIBI CONSOLIDATED COMPANY OF CANADA
4.82 06/15/2011 Yes NR NR C - -
BOW.GA BOWATER CANADA FINANCE CORPORATION
7.95 11/15/2011 Yes NR NR C - -
BOW.GD BOWATER INCORPORATED
9.50 10/15/2012 No NR NR C 99.636 -
BOW.GJ BOWATER INCORPORATED
6.50 06/15/2013 Yes NR NR C - -
ABY.GK ABITIBI CONSOLIDATED COMPANY OF CANADA
6.00 06/20/2013 Yes NR NR C 99.259 -
ABY.GP ABITIBI CONSOLIDATED COMPANY OF CANADA
8.38 04/01/2015 Yes NR NR C 100.000 -
ABY.GD ABITIBI CONSOLIDATED INCORPORATED
7.40 04/01/2018 No NR NR C 99.287 -
BOW.GC BOWATER INCORPORATED
9.38 12/15/2021 No NR NR C 99.250 -
ABY.GE ABITIBI CONSOLIDATED INCORPORATED
7.50 04/01/2028 No NR NR C 99.184 -
ABY.GF ABITIBI CONSOLIDATED INCORPORATED
8.50 08/01/2029 Yes NR NR C 99.449 -
ABY.GI ABITIBI CONSOLIDATED INCORPORATED
8.85 08/01/2030 Yes NR NR C 99.983 -
Search Criteria
Bond Type: Corporate Symbol: abwtq
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Lumber - now within striking distance
of the lowest gap on the continuous chart of $203 to $208.
and the currnet one above $212 to $218
Figure that at some point within the next 9 trading days, we should hit the bottom -- may test twice -- though.
---------------
Another 10,000 structures in Pakistan destroyed due to floods and a few thousand in India due to the same.
-------------------
Keep an eye on the National Hurricane Center Maps (off of Africa) -- hedgers watching every report now (4 times daily).
Jet Stream looks to turn again by the end of the week -- reducing shear off of the US Atlantic Coast.
ABWTQ -- BATS EXCHANGE
Accusations flying this weekend that the BATS Exchange through trading by UBS and GS is now being used for illegal naked shorting.
About three weeks ago, I noticed that some OTC stocks were being referenced by two exchanged -- I did not realize until now what this reference was.
Holy Cow -- this is big news for many OTC stocks -- last week a big hedge fund came out and strategized that there was a huge potential market in trading OTC stocks.
After speaking with members of many firms, I can tell you they many of them did not know they have been assigned an OTC stock symbol. I think investigations will be coming, because -- these guys must sign off on the financials -- which has a direct impact in regards to their "conflicts" on Sarbanes-Oxley.
Also -- with the new BATS exchange -- I have noticed a big change in the way the MFFAIS data is being reported. Lot's of cover up going on (imo).
ABWTQ - More Naked Short Selling
------------
I found this on another borad -- comment
------- When we get our injunction against this company -- we will and our lawyers will have some fun.
------- I think Prem Watsa / Fairfax was advised by its own legal council to distance itself from the board "now" (conflicts of interest), plus Fairfax's use in CDS transactions (maybe unrelated to ABWTQ -- based on what is in print -- it really is a casino). Note spreads on BP -- rumors on naked shorts too (trying to BK BP to give assets to another US based firm).
------------------
What happens when the SEC cover up of all the naked short shares GS has 5-Jun-10 12:47 am on most of the small cap stocks they have been trying to kill comes out.
The SEC must know that GS has the highest short positions on most small cap stocks in the market.
Why...it is easy to make money on small cap stocks by dumping on the bid.
When the volume is very low...they attack the Russell 2000 index with massive basket shorting.
The SEC must know that GS is behind this...they have the software programs that make this happen.
If this story where ever to break to the public...wall street is over and dead! The gov loaned tax payer money to a firm that uses it to kill the market cap of companies by shorting them. Then the companies to boost share holder value have to cut jobs. This is the biggest cover up in the history of wall street. No market cap means no loans.
If the uptick rule were in place....small companies would be safe from firms like GS.
The truth will come out and that is when the stock market will dive and never be the same again.
prolepsis13
ABWTQ -- More on Naked CDS (California Investigations)
Article Below
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Also, legitimate shorts seem to be covering -- link
http://shortsqueeze.com/?symbol=abwtq&submit=Short+Quote%99
-------------------------
Also - lumber continuous chart - link
http://stockcharts.com/h-sc/ui?s=$lumber&p=D&b=5&g=0&id=0
----------------------
Also -- looks like everything is aligned for spec to take a run at natural gas / electricity / lumber on rumors of hurricane season. imo, we hope for little loss of life, but massive destruction up the eastern seaboard -- no lumber inventories anywhere, according to most producers.
Pulp Prices still high -- final price increases for June, July and August to be announced soon.
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Goldman bet $35m against California
By Nicole Bullock in New York
Published: June 5 2010 00:08 | Last updated: June 5 2010 00:08
Goldman Sachs made a $35m bet in the credit derivatives market against California, the biggest such trade in the past few years by Wall Street banks that underwrite the state’s bond sales, according to information that the banks provided to the state.
California, the biggest issuer of US state debt, this year began an inquiry into the trading of credit default swaps by its six major underwriters, who have earned $215m of commissions on its bond sales since 2007.
EDITOR’S CHOICE
In depth: Goldman Sachs - May-07.Goldman seeks settlement with SEC - May-28.Opinion: Goldman is wrong target for censure - May-11.Goldman and JPMorgan roar ahead - May-11.Goldman partners face brutal cull - May-09.Goldman board in line of fire - May-06..CDS are privately traded derivatives that pay out when a bond issuer defaults.
Bill Lockyer, California’s treasurer, wanted to determine if banks selling its bonds were simultaneously booking profits by betting or facilitating bets against the debt. Mr Lockyer also wanted to work out the effect that trading in credit derivatives could have on the perceived risk of default of California and borrowing costs.
This is particularly important when US state and local governments have suffered several years of budget deficits and face long-term concern about pension obligations.
Mr Lockyer said on Friday the effect of CDS trading on California bond prices was not significant enough to cause concern “at this time” and that the banks themselves have not bet against California debt “to any meaningful extent”.
Indeed, the data provided by banks suggest proprietary trades were small. In 2008, Goldman’s proprietary trading desk entered into four CDS trades, three of which remain open, “as part of the management of its overall portfolio”, the bank said in a letter to Mr Lockyer.
Goldman stopped making proprietary bets on municipal bonds in 2009. Citigroup bought $5m of CDS on California in 2009 and then sold $5m in 2010.
Both banks said the CDS trades were small compared with their exposure to California debt.
The other four banks – Bank of America Merrill Lynch, Barclays, JPMorgan and Morgan Stanley – told California that they had no proprietary CDS bets against the state.
California found insufficient information on the extent to which the banks facilitate “naked trading”, because the banks said their clients do not disclose the motivation behind their trades. Naked trading is buying CDS without owning the underlying bonds.
Government officials around the world are pushing for transparency and regulation of CDS amid concern about the role that the market played in the financial crisis.
ABWTQ -- another line of defence.
In light of today's "press release" concerning a new director -- I too find it a little bit curious of the timing.
Pulp Prices still strong. Lumber expected to turn over the next 10 days or so. If fact the trading by mm's on Tembec was so dead this morning for about an hour (ie a pre-cursor to lumber running up) that it just goes to show you the "rigging" of the algorithim trading system.
Anyone see the most recent Naked Short data through April.
---------
My understanding is that up until now Patterson has had a pretty good reputation in the industry. He has always taken care of his friends (so curious about today's release).
That said, the executive that I spoke to at another company says that the entire industry is waiting to see if Patterson has some tricks up his sleave at the very end in order to ensure that there is equity. OR if he will take the deal offered by the hedge funds.
My understanding is that if he takes the deal with the hedge funds his carreer in the industry is basically over (his credibility will be ruined -- and he will have crossed the line that most people do regular business within). Apparently, it is a very close industry group at the top. About the same as the North American Energy Patch.
Everyone is waiting to see if this will be like Calpine -- former Chevron guy came in to clean it up, then hand it all over to the hedgers -- took the money and the credit -- and then retired before his Chevron career could be squashed.
The article below details what might have to happen, in the event that an EC Formation is denied.
For those of you familar with Canadian Superior or Canadian 88 -- you know the story behind Management.
-----------
Siskinds LLP and May Jensen Shawa Solomon LLP file securities class action against Canadian Superior Energy, Inc. and certain of its former officers and directors
LONDON, ON, and CALGARY, June 3 /CNW/ - Siskinds LLP, in London, Ontario and May Jensen Shawa Solomon LLP, in Calgary, Alberta, announced today that, on May 26, 2010, they filed a proposed class action on behalf of their client against Canadian Superior Energy, Inc., Challenger Energy Corp. and certain current and former officers and directors of the corporate defendants.
The plaintiff's claims concern various disclosures alleged to have been made by the defendants in relation to Canadian Superior's gas exploration project offshore Trinidad, and also in relation to Canadian Superior's stock option practices.
The claim is brought on behalf of all persons and entities who acquired Canadian Superior securities during the period January 14, 2008 to February 12, 2009. Persons who acquired Canadian Superior securities during that period are encouraged to contact Siskinds LLP for further information at (800) 461-6166, ext. 2380.
Siskinds LLP has successfully resolved more securities class actions than any other law firm in Canada, and is co-counsel to the plaintiffs in the first case certified under Ontario's new investor protection legislation, Part XXIII.1 of the Ontario Securities Act. May Jensen Shawa Solomon LLP successfully resolved the largest securities class action settled in Canada in 2009.
-------------
End.
ABWTQ -- Sale of Mackenzie Assets
Sorry, I missed the original news on this one.
Can anyone confirm how many $$ (dollars) are coming back to Abitibi. Conifex raised $89 Million, but some are for general corporate purposes? (Below).
------
VANCOUVER, BRITISH COLUMBIA, Jun 03, 2010 (MARKETWIRE via COMTEX) -- Conifex Timber Inc. ("Conifex"), formerly West Fourth Capital Inc. ("Fourth"), announced today that it has completed the acquisition of certain sawmill and related assets located at or near Mackenzie, British Columbia as well as a related equity financing and an arrangement (the "Arrangement") with DTR Wood Acquisitionco Ltd. ("DTR"). The common shares of Conifex are expected to commence trading on the TSX Venture Exchange (the "TSXV") at the open of the market on June 8, 2010 under the new trading symbol "CFF".
The sawmills and other assets ("the Mackenzie Assets") were acquired from Abitibi- Consolidated Company of Canada and its affiliate. The Mackenzie Assets included two sawmills, including planer mills, with a combined annual production capacity of 445 million board feet of lumber on a two-shift basis, a forest licence with an annual allowable cut of approximately 932,500 cubic metres, a steam/power plant and associated turbine and boiler, and a paper mill (excluding the headbox). Conifex intends to dispose of the paper mill assets but will retain the power generation assets.
Conifex CEO Ken Shields stated: "We are pleased to have secured a fibre and manufacturing base in Mackenzie with such exciting future potential. Now that Sinar Mas has purchased and plans to restart the idled NBSK pulp mill in Mackenzie, we look forward to working with the pulp mill and other stakeholders on a priority basis to develop an operating plan which will enable us to resume harvesting and manufacturing operations on a timely basis."
In connection with the acquisition of the Mackenzie Assets, DTR completed a private placement for gross proceeds of approximately $89 million. The private placement consisted of the sale of subscription receipts that were subsequently exchanged for shares from treasury. In addition to the purchase of the Mackenzie Assets, Conifex intends to use the funds from the financing to support a capital expenditure program, working capital and for general corporate purposes.
Link for the National Hurricane Center
Looks like we have a small tropical storm brewing, as we speak.
Supposed to be a barn burner year for hurricanes -- Africa Coastal Waters are extremely warm right now.
Would love to see one of those storms rip up the East Coast of the States.
http://www.nhc.noaa.gov/
I agree.
Actually, I was thinking of the same thing on the weekend -- most likely in response to your three consecutive posts.
Wouldn't it be something if we could force all of the executive and the B of Directors to resign in shame. This will generate a lot of good press for us. King Danny Williams is the hero -- he knows the NewFoundland assets are worth more than 1 Billion.
And then in the POR -- we type in the existing shareholders for the "incentive" option (8.5%). The key is to make this look like a sham -- which it is. Someone wanted to know about the bonds trading at par
Just kidding -- but I am serious about the injunction. And I am serious about booting out the executive / B of Directors -- or you can choose your poison. I want their salary returned for the past six years, too.
If Patterson and Harvey have gone to the dark side -- I would love to show them the door -- and let them sue us. We simply sue them back for more.
Or let's just wait for the lumber market to rise (should be very shortly -- now). Still a gap in the $210 to $215 range on the continuous chart that I never thought would get re-filled.
--------------------
I believe that tomorrow is the start of the Goldman Sachs "Basic Materials Conference".
Lot's more information to share -- we have so much of the edge.
Just talked to one Lumber Executive today -- knows Patterson too -- says everyone in his brother knows that the Lumber market was rigged by Wall Street. The guy says they are looking to sell their company during the bifg run -- says he is personally tired of the Wall Street Games -- did not mention GS, but another big Wall Street Brokerage was mentioned.
He says no storage anywhere. If a tropical storm hits and does damage -- we are going back over $300 just as quickly as it went down.
Bonds Still Trading at Par right now
Include in
Watchlist Bond Symbol Issuer Name Coupon Maturity Callable Moody's S&P Fitch Price Yield
BOW.GB BOWATER INCORPORATED 9.00 08/01/2009 No NR NR C 100.000 -
ABY.GB ABITIBI CONSOLIDATED INCORPORATED 7.88 08/01/2009 Yes NR NR C 99.882 -
BOW.GK BOWATER INCORPORATED 4.32 03/15/2010 Yes NR NR C 100.000 -
ABY.GH ABITIBI CONSOLIDATED INCORPORATED 8.55 08/01/2010 Yes NR NR C 99.781 -
ABY.GN ABITIBI CONSOLIDATED COMPANY OF CANADA 7.75 06/15/2011 Yes NR NR C - -
ABY.GO ABITIBI CONSOLIDATED COMPANY OF CANADA 4.82 06/15/2011 Yes NR NR C - -
BOW.GA BOWATER CANADA FINANCE CORPORATION 7.95 11/15/2011 Yes NR NR C - -
BOW.GD BOWATER INCORPORATED 9.50 10/15/2012 No NR NR C 99.636 -
BOW.GJ BOWATER INCORPORATED 6.50 06/15/2013 Yes NR NR C - -
ABY.GK ABITIBI CONSOLIDATED COMPANY OF CANADA 6.00 06/20/2013 Yes NR NR C 99.259 -
ABY.GP ABITIBI CONSOLIDATED COMPANY OF CANADA 8.38 04/01/2015 Yes NR NR C 100.000 -
ABY.GD ABITIBI CONSOLIDATED INCORPORATED 7.40 04/01/2018 No NR NR C 99.287 -
BOW.GC BOWATER INCORPORATED 9.38 12/15/2021 No NR NR C 99.250 -
ABY.GE ABITIBI CONSOLIDATED INCORPORATED 7.50 04/01/2028 No NR NR C 99.184 -
ABY.GF ABITIBI CONSOLIDATED INCORPORATED 8.50 08/01/2029 Yes NR NR C 99.449 -
ABY.GI ABITIBI CONSOLIDATED INCORPORATED 8.85 08/01/2030 Yes NR NR C 99.983
emailjanum -- thank you for your excellent posts
All three basically tell it like it is.
wrt valuation -- take oil and natural gas reserves as an example -- Wall Street Values based on a discounting "cash flow" basis (10%, 15%, 20%).
I think during the last "lumber" cycle -- Wall Street's model for energy has been used for Timber -- which as your articles suggest cannot be.
I think we are going to find out a lot on June 2, 2010 during the Goldman Sachs Basic Materials Industry Conference.
Many Timber Companies will be saying plenty in order to generate New Investment. Your articles (below) just about say everything that needs to be said about where Timber Pricing is Going.
Why should we let Patterson, Harvey and the rest of the Boyz club gain a "stake" in the NEW COMPANY (based on Incentives), when everyone knows that the Market is going up.
Pure and Simple = Conflict of Interest.
-----------------------
In light of the SSCCQ news -- I was not kidding about an "injunction". If you take a look at how the lawyers did it at SSCCQ -- ABWTQ could play out the same way.
Attached is the Continuous Lumber Chart -- it looks like Traders are close to seeing this thing turn --- which is why the Company is trying to discourage a Share Price Increase.
But we have the Daily Bond Information that says PAR -- and we have others too to use as LEVERAGE with the JUDGE.
http://stockcharts.com/h-sc/ui?s=$lumber&p=D&b=5&g=0&id=0
--------------------------
Note also Goldman's Public Comments on a PULP SUPER CYCLE.
Everyone on Wall Street knows that the market has been rigged for certain commodities -- while oil, natural gas, gold, and agriculture commodities ran up.
--------------------------
Repeat from my post earlier this week.
....
We’re talking about the hedge fund managers who attended this year’s Ira Sohn conference.
It’s a charity event in which top hedge fund managers reveal their best trading ideas.
What's noteworthy this year?
Value investor Jeremy Grantham says bonds are "grotesquely" overvalued and your best bets are timber and emerging markets and blue chips, reveals host Melissa Lee.
(Grantham is the Chairman of the Board of Grantham Mayo Van Otterloo, a Boston based asset management firm well known among institutional investors.)
----------------------------
From yahoo's Indisder Information, dated Friday May 29, 2010
Does Steelhead NAVIGATOR MASTER, L.P. still own 5,194,652 shares -- and why were they left off of the SEC FILING From earlier list month about 5% holders. FAR EAST was listed.
Conflict of Interest in new 8-K (May 24, 2010 agreement and other Legal Rules broken?)
Does MAJOR DIRECT HOLDERS (FORMS 3 & 4)
Holder Shares Reported
STEELHEAD NAVIGATOR MASTER, L.P. 5,194,652 5-Dec-08
FAR EAST INVESTMENT & SERVICES LTD. 2,974,676 16-Apr-10
PATERSON DAVID J 228,710 30-Jan-09
EVANS RICHARD B 101,040 21-Nov-08
SEC Form 4 still showing as is. I hope our EC Legal Team is jumping all over this Failure for Disclosure -- CDS).
Again -- if you want something bad enough -- think INJUNCTION. IT will be the only true way -- ask for 20% of the new company based on TIMBER VALUATION.
CAP & TRADE -- BP oil spil is likely going to bring it on faster.
Many lives have been destroyed in the GOM -- imo no other way -- Gov't needs to move people to smaller vehicles with a 50 Cent a gallon CARBON TAX -- right now.
Check out the 8-K Filing.
Interesting to see Steelhead Navigator Master Fund in there.
Dav1234 -- any comments on the above. Yahoo Data and SEC Form 4 still show that they own directly 5.2 million shares. But in the POR Proposal -- they were not listed as a 5% Holder (only Far East and the Insiders).
Note also recovery to creditora and shareholders -- interesting choice of words (if any).
From a Pure Technical Trading Standpoint
It would be nice to see a $0.31 pps close tomorrow.
If it breaks the 50-day -- I think it will take off.
Golman Sachs Basic Materials Conference - June 2, 2010
June 2, 2010
I do not know if ABWTQ will be presenting, but some of their Direct Competition will be (presumably to make strides for New Investment).
It will be pretty hard for their competition not to sing the praises of the Medium and Longer-Term Fundamentals.
----------------
Note : my comments last night re: the NEW HEDGE FUND Strategy of "BUY TIMBER" (see again below).
....
We’re talking about the hedge fund managers who attended this year’s Ira Sohn conference.
It’s a charity event in which top hedge fund managers reveal their best trading ideas.
In the past, some of the information has been almost prophetic, according to the Wall Street Journal. It was at this same event in 2008 that David Einhorn said he was bearish on Lehman Brothers.
And one year earlier at this same event Bill Ackman said MBIA and Ambac would be hurt by the subprime mortgage crisis.
What's noteworthy this year?
Value investor Jeremy Grantham says bonds are "grotesquely" overvalued and your best bets are timber and emerging markets and blue chips, reveals host Melissa Lee.
(Grantham is the Chairman of the Board of Grantham Mayo Van Otterloo, a Boston based asset management firm well known among institutional investors.)
------------
If hedge funds now say buy timer assets, then the hedge funds / bondholders of ABWTQ are shooting themselves in the foot.
ABWTQ -- From tonight's Fast Money - buy Timber
Buy Timber -- what we need is a 5 year forecast from these guys.
----
Looks to me like the "downside" gaps are just about filled on the continuous charts. Also -- ABWTQ chart (daily) looks intriging -- almost like mm's know there is news lurking. It is just so perfect.
------------------
From Karen Finerman's Hedge Fund Review at the Ira Sohn Conference (below).
....
We’re talking about the hedge fund managers who attended this year’s Ira Sohn conference.
It’s a charity event in which top hedge fund managers reveal their best trading ideas.
In the past, some of the information has been almost prophetic, according to the Wall Street Journal. It was at this same event in 2008 that David Einhorn said he was bearish on Lehman Brothers.
And one year earlier at this same event Bill Ackman said MBIA and Ambac would be hurt by the subprime mortgage crisis.
What's noteworthy this year?
Value investor Jeremy Grantham says bonds are "grotesquely" overvalued and your best bets are timber and emerging markets and blue chips, reveals host Melissa Lee.
(Grantham is the Chairman of the Board of Grantham Mayo Van Otterloo, a Boston based asset management firm well known among institutional investors.)
If you want to buy timber look at FBR [FBR 15.15 0.22 (+1.47%) ], comments Tim Seymour.
ABWTQ - Management's Proposal to share (Performance Based)
Could someone itemize the specific cases of "management performance" that will yield equity for current managers.
Note: It is good that they are trying to save 5 million dollars -- but this is something that they should have done previously (imo)
3.8 billion US denominated debt (for Canadian Assets)
when the Canada / US Exchange Rate was 1:1 -- they should have negotiated the same in Canadian dollars
3.8 billon US = 3.8 billion Canadian
Now exchange rate drops to 0.93 to buy 1 US dollar or 1.075.
Savings = 7.5% on 3.8 billion dollars = 285,000,000 million.
So 5 million isn't much.
-----------------
Performance Based Incentives = we (the shareholders told you what to do). We can do better at managing the company than Harvey or Pattison.
My guess is that niether of these two guys sought personal legal advice before the documents were sent out yesterday. I think that you will find (through our legal team) that they may very well have screwed up royally.
More information to follow.
---------------------
Below is a comment on Power Prices for 2012 -- which ABWTQ will be most interested in.
On May 21, 2010, Dynegy Holdings Inc. ("DHI") executed a new $150 million unsecured bilateral contingent letter of credit facility with Morgan Stanley Capital Group Inc. Availability under the new facility will be tied to increases in spark spreads and power prices for 2012 positions. Management believes this new letter of credit facility represents a cost-effective supplement to its liquidity position and will facilitate opportunistic commercial activities in a rising price environment.
Ergodoc -- Currency Risk Management - nutshell
imo, the B of D and the Senior Management have a fiduciary responsibility to manage their currency risk (if not through a physical deal, then through a financial derivative).
Duane Owens was told to lock-in a 0.77 cent exchange rate, the day it hit it. On a separate occasion he said that the Board looked at all financing options.
Operationally -- ABWTQ does better on its Candian assets if it has a lower dollar.
Same with US assets (I guess).
Debts -- you always want to have a back-to-back deal.
Canadian Assets back by Canadian denominated debts -- that way labor costs can be more easily compared -- profit center comparisons.
WRT a currency hedge and US denominated Debts. What you are really talking about is a capitalization or crystalization of the Foreign Exchange Translation. Other lumber companies did just that back in 2008 and 2009 to get cash.
If my debts are in US dollars, I missed a golden opportunity to convert all of those debts (for Canadian assets) back into Canadian dollars ar par two weeks ago. Now 5% less -- Management and board screwed up yet again.
Duane was told to get prior approval from BK Judge to enter into such transactions last year. To my knowledge, ABWTQ nwever dought approval.
NB: Calpine in BK received approval from Judge to eneter into hedges to protect cash flow -- which is what management / Trustee / Advisors should have done, if they were truly acting on our best interests.
Ergodoc -- did you ever get copies of the Annexes
From the original Merger for our Lawyer. Liability for everyone there (including auditors).
I think that now is the time to strike. So much press this morning. And if we make a case today -- wow.
If our lawyer does not know how to handle this (a formal injection or other legal intervention today -- with 2 billion dollars stolen from Naked Shorting and CDS on ABWTQ), on today's news, then maybe this guy is not the right guy.
It's all about the Naked Shorts on ABWTQ and CDS
Link to the German News (below)
Note that lumber was up big after-market and then fell on word that a Senator may propose a more watered-down finreg reform.
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_G/threadview?m=tm&bn=8089&tid=680196&mid=680196&tof=16&frt=2
And this morning, lot's of people explaining the link between Naked Short Seliing and Credit Default Swaps
ABWTQ - Naked Shorts (Updated Info for CMKM)
CMKM Diamonds crew gets more attention from DoJ
2010-05-18 13:45 ET - Street Wire
Also Street Wire (U-CMKX) CMKM Diamonds Inc
by Janice Shell
Urban Casavant, the Canadian stock promoter now infamous as the chief executive officer of CMKM Diamonds Inc., has received an upward adjustment in rank, a grade increase of sorts, from the U.S. Department of Justice. To the criminal fraud charges against him the DoJ has added racketeering and tax evasion.
Followers of the CMKM Diamonds saga have recently read about a Securities and Exchange Commission enforcement action, two lawsuits brought by shareholders, and a U.S. Department of Justice criminal prosecution.
On May 6, 2010, the DOJ unsealed a second superseding indictment in the CMKM case. The original indictment was not made public; the first superseding indictment was filed on May 27, 2009, and unsealed on Sept. 18, 2009. In March 2010 that superseding indictment was resealed; the new indictment was filed on March 24, 2020.
This complex 85-page document names additional defendants and adds RICO (Racketeer Influenced and Corrupt Organizations Act) charges and an allegation of tax evasion by Urban Casavant, CMKM's former promoter and chief executive officer.
Six defendants were charged in 2009: John Edwards, Urban Casavant, Helen Bagley, Brian Dvorak, Ginger Gutierrez, and James Kinney. In that indictment, Mr. Edwards and Mr. Casavant were characterized as the "masterminds" of the CMKX pump and dump scheme. Ms. Bagley was CMKX's transfer agent. Mr. Dvorak is an attorney who the DoJ says wrote fraudulent opinion letters freeing up unregistered stock for trading. Ms. Gutierrez and Mr. Kinney were Mr. Casavant's assistants and investor relations representatives.
As usual, the defendants all enjoy the presumption of innocence unless they are found guilty.
The new indictment
The newly-unsealed indictment expands the scope of the prosecution considerably. Originally, the case was focused exclusively on the CMKM pump and dump scheme; it has been broadened to cover a period extending back from the present to 1997, and it addresses the actions of an alleged group of conspirators in connection with nine stocks, including CMKM.
The additional defendants named are Jeffrey Turino, once CEO of Pinnacle Business Management, Inc. (PCBM); Nickolaj Vissokovsky, once CEO of Global Diamond Exchange, Inc. (GBDX), Melissa Spooner, an exotic dancer who was Mr. Turino's mistress; and Jeffrey Mitchell, Ms. Bagley's son, also a transfer agent. The companies of which the entire group stands accused of manipulating are PCBM, CMKM, St. George Metals, Inc. (SGGM), U.S. Canadian Metals (UCAD), BioTech Medics, Inc. (BMCS), GBDX, Equitable Mining Corporation (EQBM), OMDA Oil and Gas, Inc. (OOAG), and Grand Entertainment and Music, Inc. (GMSC).
Some of them at one time traded on the U.S. OTC Bulletin Board, but all ended up on the Pink Sheets. The DoJ alleges that they played a role in what could be described as a serial scam. The perpetrators moved from one to another, selling enormous amounts of unregistered stock until the authorities took action or no potential buyers were left.
The indictment is written in narrative form; it even includes "chapters" in which the expansion of the conspiracy is explained in detail. Though complicated, it is a satisfying read.
The plot's beginnings
All of the defendants will be tried on criminal charges, but only Mr. Turino, Mr. Edwards, Mr. Casavant, Mr. Vissokovsky and Ms. Spooner are identified as RICO conspirators. According to the DoJ, the plot began in 1997, the year in which Pinnacle Business Management (PCBM) was incorporated in Nevada. Pinnacle was a subsidiary of a British Columbia mining company called 300365 BC, Ltd. (doing business as Peakers Resources Company) that traded publicly in the U.S. Mr. Edwards was involved in this corporate shell, but he kept a low profile, appointing Mr. Turino CEO of the company. The two men quickly completed a reverse merger with 300365 BC. Originally the stock traded on the OTC-BB, but it was delisted to the Pink Sheets in 2000.
In 2001, Pinnacle acquired the assets of a Pennsylvania corporation called Lo Castro and Associates (also known as All Pro). Vincent Lo Castro was president of All Pro, and became an officer of Pinnacle. (Mr. Lo Castro has not been named in the DoJ action.) By 2003, Pinnacle's authorized shares had ballooned to 24.9 billion common and 100 million preferred. Most of the common was issued and outstanding.
The transfer agent who facilitated the issuance of all that stock was, according to the DoJ, Ms. Bagley of 1st Global Stock Transfer. Much of the stock was issued to trusts and entities controlled by Mr. Edwards, who then sold it through a number of brokerage accounts.
To help create a market for this avalanche of unregistered stock, the conspirators published misleading and deceptive press releases, and disseminated fraudulent "preliminary and unaudited" financials, says the government.
By the spring of 2002, the pump and dump scheme had caught the attention of the SEC. On May 8, the regulator filed a civil lawsuit against Pinnacle, Mr. Turino and Mr. Lo Castro. Both men consented to the entry of judgments against them, without admitting or denying the allegations. They were fined and were banned from participating in penny stock offerings for five years.
On July 6, 2004, Pinnacle's registration was revoked by the SEC. The first part of the scheme was over, but the second was already well underway.
The glory days of CMKM Diamonds
Mr. Turino ignored the penny stock ban imposed upon him by the judge in the civil case. As the government's litany of monkey business has it, long before Pinnacle sank below the waves, he, Mr. Edwards, and Ms. Bagley were hard at work on their next massive pump and dump scheme, CMKM Diamonds. As before, Mr. Edwards gained control of a publicly traded shell, this one a Delaware company called Cyber Mark International Corp. Calling himself "Ian McIntyre," Mr. Edwards changed the company's state of incorporation to Nevada, using as its address a postal drop box.
On Nov. 25, 2002, Cyber Mark agreed to acquire "mining claims or interests" purportedly held by five companies owned by Urban Casavant and his family. This time, no reverse merger took place. Instead, Mr. Casavant received controlling interest in Cyber Mark, and became its sole director, president, and CEO. The company's name was changed to Casavant Mining Kimberlite International in December, 2002, and to CMKM Diamonds, Inc. in February, 2004.
Though CMKM was required to report to the SEC, on Jan. 22, 2003, the company fraudulently filed for an exemption from that obligation. That move provided what the DoJ calls a "cloak of secrecy" that greatly helped the conspirators.
Under this cloak of secrecy, CMKM authorized the issuance of 800 billion shares of common stock, and issued nearly all of it. According to the DoJ, "the extraordinary number of authorized CMKM Diamonds shares rendered the price per share almost meaningless: the conspirators controlled the printing presses and issued themselves a seemingly inexhaustible supply of shares and stock certificates; having evaded registration and reporting requirements, the conspirators were able to surreptitiously issue themselves hundreds of billions of shares without disclosure."
Others entered the picture at this point, according to the indictment. Ms. Bagley enlisted her son Jeffrey Mitchell to work for her. Brian Dvorak wrote hundreds of opinion letters, freeing up stock so it could be sold immediately. Mr. Turino was not an officer of CMKM, but he received a chunk of shares for unspecified "services," and met regularly with Mr. Edwards and Ms. Bagley at Ms. Bagley's office.
As with Pinnacle, Mr. Edwards distributed most of the stock to his trusts and alter-egos. Ginger Gutierrez and James Kinney also received large amounts of stock, as did Mr. Turino's "associates and nominees" in Florida. Nearly all of the stock was sold through numerous brokerage accounts held by the conspirators, and some of the profit was kicked back to the Canadian, Mr. Casavant.
Off to the races
Though CMKM did some nominal exploratory drilling, that was just for show. The DoJ points out that "CMKM Diamonds' sole product was the billions of shares of stock issued as part of the conspiracy and scheme."
In early 2004, the company announced that it was sponsoring a racing team called "CMKXtreme" that eventually expanded to include a "funny car," a motorcycle, and a truck. Mr. Casavant frequently attended the races, which proved to be a fertile ground for attracting new, and usually unsophisticated, suckers. (The DoJ calls them investors.) Offering modest hospitality to all comers, he talked up CMKM enthusiastically. As the DoJ notes, to account for the stock's wildly high trading volume, Mr. Casavant floated rumors of "naked short-selling." Gullible investors found that explanation plausible; many cling to it even six years later, in the absence of any proof at all.
In conjunction with the CMKM fraud, the conspirators gained control of two other shell companies, U.S. Canadian Minerals (UCAD) and St. George Metals (SGGM). Both announced multi-million dollar "investments" in CMKM, though in reality money was merely being shuffled among accounts controlled by the conspirators themselves.
The registration of CMKM's stock was revoked by the SEC on Oct. 28, 2005.
BioTech Medics, Global Diamond Exchange and more
BioTech Medics (BMCS) was originally a spinoff of Pinnacle. It went through several incarnations before acquiring its current name and ticker. Unlike the alleged conspirators' other shells, BMCS had assets and business operations, but Mr. Turino and his associates nonetheless exploited it by "fraudulently issuing, reissuing, transferring, offering and selling" millions of its shares.
Global Diamond Exchange (GBDX) evolved out of a shell purchased by Mr. Edwards in 2001. The shell was controlled indirectly by Nickolaj Vissokovsky and Mr. Turino. To advance this scheme, two Minnesota corporate corporations were set up. One of them, called Mountain Passages, Inc., was entrusted to Melissa Spooner; the other, Austin Funding, LLC., to an associate of Mr. Turino's not named in the indictment. Once again, billions of shares of unregistered stock were issued and sold into the market by the conspirators.
Austin Funding and Mountain Passages also controlled Equitable Mining Corporation, OMDA Oil and Gas, Inc. and Grand Entertainment & Music, Inc. Thd DoJ says that as always, the conspirators issued and sold large quantities of stock in these shells, profiting greatly.
The indictment closes with additional counts of conspiracy, fraud, insider trading and money laundering, all acts committed in connection with the schemes outlined above. Mr. Casavant alone is charged with tax evasion.
Comments regarding this article may be sent to jshell@stockwatch.com.
(Further information regarding CMKM Diamonds and associated companies can be found in 72 Stockwatch articles dated Oct. 21, 2003; June 22; Sept. 16 and 24; Oct. 1, 15 and 20, 2004; Feb. 11, 14, 18, 22 and 23; March 1, 3, 4, 7, 14, 15, 16 and 21; June 6, 8, 9, 10, 13, 14, 15, 16, 17, 20, 21, 22, 29 and 30; July 1, 4, 6, 12 and 13; Aug. 2, 5 and 9; Sept. 7, 12, 27 and 30; Oct. 24, 26 and 31; Nov. 7, 11, 22 and 25; Dec. 1, 6, 9, 15 and 22, 2005; Jan. 3; Sept. 29; Oct. 4, 2006; Aug. 30, 2007; and April 7, 9, and 11, 2008; Sept. 21, 2009; Feb. 17 and 23; and March 2, 5 and 10, 2010.)
The Conservation Issue - does 2 things for us
1. Article that I read refers to "Full Carbon Cycle Management" -- that is good. Now the Company has acknowledged the benefit of Cap & Trade using the Forests. Start your engines. The perceived value in this company just went up. Get the lawyer working on the angle. Tembec has some interesting things to say and they are in the know. Wayzata et. al. Anything that Tembec says can be used in our favor.
2. The value of the "lack of direct" lumber that can be used for whatever "worldwide" has shrunk dramatically (off the market for sale) -- which means that the Forward Futures Values will catch up.
---------------
3. As an aside the ration between Tembec and ABWTQ was still around 0.116. TMBCF 1.11 + 1.00 (sale of French Mills) and ABWTQ close of 0.102.
Coincidence -- for about 100 of the past 365 days -- I do not think so. Withe Algor. Programs and the chatter everywhere that the stock market is finished because it is rigged (see yahoo GS board -- almost everday someone expains why).
So maybe there is a merger , it's just that the parties don't know it yet.
wrt the above, IRROC and the SEC have conceded certain things about trading programs -- and they always ask "how did you know that"? It is so easy to see.
Talk about a major conflict of Interest for Paul, Weiss
If GS hired them to represent them. EC take note of this.
Link from Bloomberg below>
http://www.bloomberg.com/apps/news?pid=20601208&sid=aC_RNPWsjeDc#
Ergodoc - ABWTQ - Naked Credit Default Swaps
Dylan Ratigan provides a real nice summary -- link below.
Naked Credit Default Swaps = Naked Short Selling (Back to Back) through a derivative.
imo, this should be sent to our legal council -- provide him / her with a quick rational summary of what really happened.
imo, would should also send to Dave Coles at CEP -- it's time he understood that between the above, it could be estimated that at least 2 Billion was stolen from ABH, ABY and BOW = ABWTQ. And get hime to believe that a formal investigation is warranted. We should also explain that GM, and Bombardier and Nortel have are somewhat related when it comes to Naked Credit Default Swaps. The 600 Trillion dollar Insuranace Fraud Sceme = Credit Default Swaps is formally acknowledged in these videos.
http://www.msnbc.msn.com/id/31510813/ns/msnbc_tv-the_dylan_ratigan_show/#37137859
http://www.msnbc.msn.com/id/31510813/ns/msnbc_tv-the_dylan_ratigan_show/#37157790
More on CDS Investigations into Greece.
See bottom of the article. "Bet against it". Recall that M. Dumas from Tembec said publically that market was rigged -- implied currencies and commodity inputs and outputs went against them and their other competittors. Too many BK sectors of the economy, if a "commodity" buyer of energy is not allowed to recover their "higher energy and other input costs" by not having a directly correlated commodity increase for pulp and paper and for lumber (cotton producers, ind. electricity providers, cattle farmers, dairy farmers, poultry and pork producers). World is not shrinking.
----------------
Goldman Sachs and Greek Debt Crisis: Investigations by US, EU and Greece
Posted on May 16, 2010 by samhenry
Goldman Sachs worries are now global and greater in scope. Investigations have been initiated in the US, the EU and in Greece to find grounds for legal action against the firm and other US investment banks for their alleged role in creating the fiscal crisis that has impacted world markets.
The Greek People and their Prime Minister are in agreement in the rush to pin blame on the US.
Greek Prime Minister George Papandreou declared he is not ruling out taking legal action against U.S. investment banks for their role in creating the spiraling Greek debt crisis.
Both the Greek government and its citizens have blamed international banks for fanning the flames of the debt crisis with comments about Greece’s likely default, actions that are causing the country’s borrowing costs to soar.
“I wouldn’t rule out that (legal action) might be a recourse. But we need to let due process (take its course) and then make our judgments once we get the results from the investigations,” Papandreou said in a CNN interview broadcast Sunday.
Papandreou also said a parliamentary investigation will examine the rapid swelling of Greece’s debt and international banking practices to examine whether the financial sector engaged in “fraud and lack of transparency.”
The European Union and the International Monetary fund have approved a euro110 billion ($136 billion) bailout package for Greece, part of an overall euro750 billion ($1 trillion) rescue loan package to protect the euro, the common currency of 16 European nations.
The Greek leader also urged more regulation of the markets which, in his view, are now betting against the European governments that have poured billions into them since the global financial crisis began in 2008.
Some European governments plan to push for tighter regulation of hedge funds this week _ a move opposed by Britain, home to the financial hub of London. [onenewsnow.com]
With other major financial hubs in Asia, Europe and South America gaining in popularity, the end game may be that New York and London cease to be the major financial capitols.
Testifying before the Senate Finance Committee, Fed Chairman Bernake said:
The Federal Reserve and Securities and Exchange Commission are seeking information about whether Goldman Sachs and other U.S. firms helped set up financial transactions over the past decade that effectively hid the amount of debt Greece was taking on. Another potential issue is whether banks and hedge funds, by taking big bets that Greece would default, are creating a self-fulfilling downward spiral for the Mediterranean nation.
Addressing concerns that financial firms have been engaging in trades to bet on a Greek default, Bernanke said that “using these instruments in a way that intentionally destabilizes a company or a country is counterproductive, and I’m sure the SEC will be looking into that.”
………………………………………………………..
Goldman served as investment banker for Greece as the country borrowed billions by entering complex financial contracts known as cross-currency swaps. The contracts allowed Greece to limit the amount of debt it seemed to be taking on to fund its national budget.
Now, with a widening budget deficit, Greece has been struggling to raise money to pay off old debts and continue to fund government operations. In turn, those troubles have prompted fears that some of Europe’s other weaker economies might also face difficulties in covering their debts, which could provoke a wider financial crisis and hamstring the global economic recovery. [WashingtonPost.com
Perhaps the only bright spot is the fact that the US having been put over a barrel by members of the international community is not on the defensive tack but is acting in concert with its detractors in investigating its own financial industry. This tactic should put it in a more favorable light – hopefully with the people rioting in the streets in Greece
Saw that part too. It settles it.
ABWTQ is SOLVENT. WOW!
----
Just kidding, in the next update -- the words will be re-arranged to screw with the shareholders.
Thanks Cork.
Maybe this announcement is part of the informal "truce" that has been called between the "tree-huggers / conservationalists" and the Forestry Companies.
On a separate note, the share price being held at 0.106 cents is just well downright strange. News coming - maybe?
I know that Anonymous has been sitting on the bid and lifting Tembec at every opportuity this morning.
CDS Investigations by US States - it's starting
Does anyone think that Mr. Patterson, Mr. Harvey and the entire Board of Directors are going to watch their backs now (in light of this new legal information). I bet they will. I think that this investigation news will come in handy for our EC request.
Looks like Greece is about to force an investigation.
I tell you the 400 to 600 trillion CDS market is going to be unwound. Once countries sue -- it's all over. And everything sets a precident.
----------------------
Goldman Sachs, JPMorgan in Massachusetts Swap Probe (Update2)
May 14, 2010, 8:26 PM EDT
More From Businessweek
By Michael McDonald
May 14 (Bloomberg) -- Goldman Sachs Group Inc. and JPMorgan Chase & Co. are among 10 banks Massachusetts is targeting in a probe of trading of municipal credit default swaps, according to the office of Secretary of State William Galvin.
The state’s securities division sent letters today to 10 underwriters of municipal bonds, asking them to detail their trading of credit-default swaps linked to state and local government bonds they’ve underwritten in Massachusetts since 2003. Recipients have until May 28 to respond. The letter asked each bank to “identify the entity that purchased CDS from your firm for each Massachusetts state or municipal bond offering.”
The other banks are: Morgan Stanley, Citigroup Inc., Deutsche Bank AG, Wells Fargo & Co., Barclays Plc, UBS AG, and both Merrill Lynch and its parent, Bank of America Corp., according to Michael Maresco, assistant secretary of state.
The probe follows a similar inquiry in California, where Treasurer Bill Lockyer asked banks to say whether they bet against the state with credit-default swaps. The U.S. Securities and Exchange Commission is also exploring conflicts of interest for banks that sold municipal bonds and bet the securities would fail, the Wall Street Journal reported, citing people familiar with the matter who it didn’t name.
Banks Respond
Bank of America will “work with Massachusetts officials to provide the information they need,” said Bill Halldin, a spokesman for the Charlotte, North Carolina-based company.
Deutsche Bank, based in Frankfurt, doesn’t have a municipal underwriting business, Ted Meyer, a spokesman in New York, said by e-mail. He declined to comment on the letters.
Goldman’s Michael DuVally, UBS’s Doug Morris, Morgan Stanley’s Jennifer Sala and Barclays’ Kristin Friel, all in New York, declined to comment.
JPMorgan’s Justin Perras and Citigroup’s Danielle Romera- Apsilos, in New York, and San Francisco-based Wells Fargo’s Elise Wilkinson, didn’t immediately return calls.
--With assistance from Catarina Saraiva in New York. Editors: Ted Bunker, Mark Tannenbaum.
To contact the reporter on this story: Michael McDonald in Boston at mmcdonald10@bloomberg.net
To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net
My guess is that the price is being held there
for "transactional" purposes. Lumber Futures -- all gaps to the downside filled. Tembec -- gaps filled. Next week -- deal (ratio between ABWTQ and Tembec) on a share deal still looks about the same -- when you add in the 100 million tembec received from Sale.
Anonymous sitting on the bid for Tembec (likely GS -- a few hundred going on and off for a few days under it).
I think that there is a share deal -- that''s why the Bonds are at 100% in the morning (every day) and manipulated down manually). Same with NTRLQ.
ABH - Credit Default Swaps and Insurance Fraud
Forget about the current share price. With all that is going on in the Swaps market wrt Greece (CDS blowing out on Ackerman's comments), these Banks that have partaken in the 400 to 600 trillion "insurance" fraud market are simply proving our case for us.
Note that with any computer algor. program, which is based on relationships between companies and input / output costs and selling prices (assuming zero hedges -- no caps and floors), anyone can BK a company.
And the moment that ABH went BK, the Board of Dircetors should have resigned is another telling tale.
I say fire away -- these mojo's are helping us prove our case for equity and they don't even know it.
EPA Rule Changes (some info).
Unfortunately, this article lacks detail. Maybe someone can post some more "guts" regarding the EPA Rule Changes.
-----------------
UPDATE 2-US EPA issues rules on biggest carbon polluters
Thu May 13, 2010 4:30pm EDT
* EPA to regulate power plants, landfills, factories * EPA action could push lawmakers to support climate bill * Climate bill would likely pre-empt EPA from regulating
(Releads, add quotes from Lieberman, greens)
By Timothy Gardner and Ayesha Rascoe
WASHINGTON, May 13 (Reuters)
The Obama Administration
finalized rules on Thursday to cut greenhouse gas emissions
from big factories and power plants starting next year aimed at
giving momentum to the troubled climate bill. Starting next year, the Environmental Protection Agency rules would require large power plants, factories and oil refineries that add capacity or do plant work to get permits proving they are using the latest green technology to cut emissions.
The rule sets emitters up to face a host of future
regulations if the climate bill fails. "It's long past time we unleashed our American ingenuity and started building the efficient prosperous clean energy economy of the future," EPA Administrator Lisa Jackson said. Although mounting industry lawsuits question EPA's authority on climate, President Barack Obama hopes the measure will push lawmakers in states heavily dependent on fossil fuels to support the climate bill. As written, the bill would pre-empt automatic EPA
regulations.
That would come as a relief to emitters who feel
they would have more influence with Congress to form new air
laws than with the EPA that issues rules from the top down. Capitals from Beijing to Brussels are closely watching how
the United States addresses climate change, an effort seen as
critical for building global agreement on a successor to the
Kyoto Protocol, which Washington sat out.
The climate bill unveiled by Senators John Kerry, a
Democrat, and Joseph Lieberman, an independent, on Wednesday
currently lacks the Republican support it needs to pass.
[ID:nN12199780] The bill faces a host of obstacles, including the narrow span of time for negotiation before mid-term elections and the fact that some Democratic senators are anxious over offshore
drilling provisions as a massive oil leak in the Gulf of Mexico
continues to gush unchecked. GUN IN THE AIR Lawmakers who unveiled the legislation said the EPA move
could boost support for the bill. "The gun being held ... up in the air by EPA is having an effect," Lieberman told reporters on Wednesday. "That's a genuine worry and that's different this year than we've had before. That's what makes me think we can get to 60" votes needed for controversial legislation to pass in the Senate. Under this ruling, the EPA is effectively trimming the
Clean Air Act, or "tailoring" it, so it only applies to the
biggest emitters of gases blamed for warming the planet.
Without the tailoring, small emitters such as hospitals and
schools would be regulated and overwhelm the agency with
paperwork.
The rules would subject power plants, factories and oil
refineries that emit 75,000 tonnes of carbon dioxide equivalent
to regulations beginning in January 2011. Regulated polluters
would include big coal-fired power plants and heavy energy
users such as cement, glass and steel makers. Waste landfills and factories that are not already covered by the Clean Air Act that emit at least 100,000 tonnes of greenhouse gases a year would get a six-month extension and would not be regulated until July 2011. Sources that pollute less than 50,000 tonnes per year would
not be regulated until 2016, if ever, said EPA air official
Gina McCarthy. Under the rules, polluters would have to get permits showing they are using the best available technology to cut emissions when building new plants or modifying existing ones. The rules could hit big operators of coal-fired power
plants. Companies such as Calpine Corp (CPN.N), Southern (SO.N)
and Dynegy Inc (DYN.N) may benefit because because they have
"peaker" plants that only run in times of high demand.
But many industries and companies hope that the bill will
fail and that they also can fight the EPA in court. The EPA
issued a finding late last year that greenhouse gases endanger
human health, which allows it to regulate greenhouse gases
under the Clean Air Act. Industry lawsuits questioning the EPA's authority on climate saying the agency has not done enough of its own research. (Additional reporting by Tom Doggett and Richard Cowan; Editing by Russell Blinch and Lisa Shumaker)
Ergodoc
Thanks for your info share from yesterday. I will post some thoughts at a later time.
I was away at a funeral today (one of my best friend's father growing up). Too young at 73 -- massive ha.
Last week, my own father had a serious operation, which has so far worked out ok.
Lumber Futures
Based on the higher or steady close on some lumber equities, and the settlement of November -- all gaps now filled. We should start heading up.
Though tomorrow is expiry, so anything can happen going into the close.
Lots of people see the funds reversing course heading into Memorial Day Weekend -- and delivery.
Good luck to all traders.
IMO, the weekly chart of ABWTQ looks good.
Still waiting on the result from yesterday's "appeal" hearing.
Ergodoc -- Cap & Trade
I just caught a small part of an interview on CNBC with John Rowe (CEO of Excelon) discussiing both Cap & Trade and Carbon Tax.
We should try to review it when it is available.
Apparently, the market is expecting the introduction of a new bill on Cap & Trade (today) by John Kerry (I think).
Note: I believe that the future value in the forestry assets might very well triple overnight. imo, newsprint doesn't matter.
Link to the November Lumber Futures Contract
Talking about it on the news -- the dramatic fall in futures prices back to early March levels for near month.
I think the hedge funds just wanted to drive it into the ground, one last time and then before delivery May 15 to 30th -- drive it back up.
No inventories. According to CCTV - English Ch., lumber for residential is not expected to slow down, despite gov't attempts. It appears there is a lot of "re-building" going on. Russia imports way down.
Targeting lows for November of 2.52 to $2.55. Triangle almost complete.
http://futures.tradingcharts.com/chart/LS/B0
Torstar and Fairfax lose bid for
CanWest Newspapers -- maybe this might change Mr. Watsa's thinking in the short-term.
Last Updated: 5/11/2010
Corporate Bond Search Results
Tuesday, May 11, 2010
Ratings Last Sale
Include in
Watchlist Bond Symbol
Issuer Name
Coupon
Maturity
Callable
Moody's
S&P
Fitch
Price
Yield
BOW.GB BOWATER INCORPORATED
9.00 08/01/2009 No NR NR C 100.000 -
ABY.GB ABITIBI CONSOLIDATED INCORPORATED
7.88 08/01/2009 Yes NR NR C 99.882 -
BOW.GK BOWATER INCORPORATED
4.32 03/15/2010 Yes NR NR C 100.000 -
ABY.GH ABITIBI CONSOLIDATED INCORPORATED
8.55 08/01/2010 Yes NR NR C 99.781 -
ABY.GN ABITIBI CONSOLIDATED COMPANY OF CANADA
7.75 06/15/2011 Yes NR NR C - -
ABY.GO ABITIBI CONSOLIDATED COMPANY OF CANADA
4.82 06/15/2011 Yes NR NR C - -
BOW.GA BOWATER CANADA FINANCE CORPORATION
7.95 11/15/2011 Yes NR NR C - -
BOW.GD BOWATER INCORPORATED
9.50 10/15/2012 No NR NR C 99.636 -
BOW.GJ BOWATER INCORPORATED
6.50 06/15/2013 Yes NR NR C - -
ABY.GK ABITIBI CONSOLIDATED COMPANY OF CANADA
6.00 06/20/2013 Yes NR NR C 99.259 -
ABY.GP ABITIBI CONSOLIDATED COMPANY OF CANADA
8.38 04/01/2015 Yes NR NR C 100.000 -
ABY.GD ABITIBI CONSOLIDATED INCORPORATED
7.40 04/01/2018 No NR NR C 99.287 -
BOW.GC BOWATER INCORPORATED
9.38 12/15/2021 No NR NR C 99.250 -
ABY.GE ABITIBI CONSOLIDATED INCORPORATED
7.50 04/01/2028 No NR NR C 99.184 -
ABY.GF ABITIBI CONSOLIDATED INCORPORATED
8.50 08/01/2029 Yes NR NR C 99.449 -
ABY.GI ABITIBI CONSOLIDATED INCORPORATED
8.85 08/01/2030 Yes NR NR C 99.983 -
Search Criteria
Bond Type: Corporate Symbol: abwtq
ABWTQ / Deloitte (Cap & Trade)
Link to Deloitte commentary on Climate Change and Cap & Trade.
We will need to subpeona information directly related to the ABWTQ studies (Deloitte as Consultant to).
http://www.deloitte.com/assets/Dcom-Global/Local%20Assets/Documents/CCS/capandtrade.pdf
Why are the ABWTQ Assets so Valuable?
1. Cap & Trade -- Short Re-Cap for our recently hired Council.
2. Nice Example (below) about a Forestry Operator in Russia
1. Due to emissions trading, coal may become a less competitive fuel than other options.
Emissions trading (also known as cap and trade) is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants.
A central authority (usually a governmental body) sets a limit or cap on the amount of a pollutant that can be emitted. Companies or other groups are issued emission permits and are required to hold an equivalent number of allowances (or credits) which represent the right to emit a specific amount. The total amount of allowances and credits cannot exceed the cap, limiting total emissions to that level.
Companies that need to increase their emission allowance must buy credits from those who pollute less. The transfer of allowances is referred to as a trade. In effect, the buyer is paying a charge for polluting, while the seller is being rewarded for having reduced emissions by more than was needed. Thus, in theory, those who can reduce emissions most cheaply will do so, achieving the pollution reduction at the lowest cost to society.[1]
There are active trading programs in several air pollutants. For greenhouse gases the largest is the European Union Emission Trading Scheme.[2] In the United States there is a national market to reduce acid rain and several regional markets in nitrogen oxides.[3] Markets for other pollutants tend to be smaller and more localized.
2. FED: Cap and Trading Scam
By Troy Lanigan and Maureen Bader
Reprinted from The Taxpayer Winter 2010
Europol, the European Union’s joint criminal intelligence agency, said over the past 18 months since December, criminals have used the EU’s Emissions Trading System (ETS) to earn $7.4 billion in elicit gains. (photo: Dr. Meierhofer)
Founded in 2005, the ETS is the world’s largest carbon trading market and is the model for global cap and tax schemes discussed in Copenhagen. Europol investigators say up to 90 per cent of the trade in some European countries was bogus.
Europe leads what is expected to be a world-wide explosion in carbon trading markets from an estimated $132-billion in 2009 to $3-trillion by 2020. To put that in perspective, the trading of a colourless, odorless gas – C02 – could surpass the $2-trillion dollars traded in oil. A global financial services firm recently called it “a fraudster’s dream come true.”
Under cap and trade, companies will need permits for their right to emit C02. These permits – the theory goes – will be offset by others who either sequester (by planting trees for example) or do not use C02. These permits will be traded on exchanges akin to a stock market.
Chis Perryman of Europol sates: “It is clear that fraudsters are fully aware of the potential that trading in intangible commodities has to further their ends. Such goods or services can be traded without the need to be physically moved or transported, which represents an obvious opportunity to frustrate law enforcement efforts to trace and track transactions.”
How does fraud work? Well, one could buy carbon credits tax-free in one country, then sell them in another at a price including value-added tax then not remit the tax revenue to the government.
In another case, a car manufacturer in South Korea might buy a permit from a forestry operator in Russia. The South Korean company receives a permit and away it goes. But what stops the Russian company from selling the same permit to companies in other countries? What stops fraudsters from setting up bogus wind farms in Africa and selling permits in North America?
Unlike most commodities, C02 has no value. The value rests in the permit. Neither buyers nor sellers will have incentive to scrutinize each other. With government regulators serving as gatekeepers for this soon-to-be multi-trillion dollar industry, rampant fraud and corruption are as sure as death and taxes.
With notes from Patricia Adams probeinternational.org
Posted: February 18, 2010
ABWTQ -- Program Trading - Last week's action
In the past, I have made comments about how certain stocks react at certain times of the day, or that certain unrelated (but similar) stocks react sumultaneously in trading patterns.
The article below seems to back some of those things up.
Re: ABWTQ -- with our legal council -- this is a perfect opportunity to go after the "trading" of ABY, BOW, ABH and ABWTQ going back to 2004. I have some data from back in 2007 (mostily betwen May and November 2007.
I will try and post all of the various Annex's from the merger. It seems that a lot of "independent" firms provided their "go ahead" of the merger based on a review of trading and share price information. imo, the liability is true with them.
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Program Trading Needs To Be BannedMay 8, 2010 - 2:47 pmShare4
Sy HardingBio | Email
Sy Harding is president of Asset Management Research Corp., editor of the free morning blog at www.streetsmartpost.com
As long-time readers know, it’s been a periodic rant of mine for many years and I’ll say it again: program-trading, now known as “high-frequency” trading, serves no purpose but to line the pockets of the program-trading firms at the expense of the millions of other investors participating in the market.
Investigations after the October 19, 1987 crash revealed that what would have been a normal down day in a correction that had begun in August was turned into the heart-stopping, portfolio destroying 1987 crash by uncontrolled automated waves of sell-programs that flooded in from program-trading firms and overwhelmed the market. As their ‘portfolio insurance’ protective stops were successively hit the automated sell orders came so fast on top of each other at ever lower prices that market-makers could not match them up with buyers. Very quickly there were no buyers anyway, and the decline just plunged into a dark bottomless hole.
By the way, I’m hearing a lot of claims that last Thursday’s ‘crash’ was the worst ever. It was not even close. Yes, the Dow was down 1,000 points intraday at its low, compared to it being down ‘only’ 502 points at its close on the 1987 crash day. But the Dow was just above 2,200 at the time. The 502 point decline was a 22.6% loss for the day, compared to less than 10% at the low on Thursday, and only 3.2% at the close.
Anyway, after 1987 curbs were placed on program-trading to try to rein it in. The curbs called for the market to be closed for cool-off periods if the Dow fell a certain number of points in a day. But, as a result of lobbying by Wall Street, those curbs were watered down and mostly eliminated along with the uptick rule, etc., in the late 1990’s.
I have ranted for years about how an occasional crash is not the greatest damage or unfairness of program-trading. It is the ability it gives a few large firms to control the market for short periods of time, sucking investors into positions, or driving them out, not based on careful thought or analysis, but in emotional reaction to a sudden temporary intraday rally created by a wave of buy programs, or a sudden intraday decline created by a wave of sell programs.
It’s most noticeable when buy programs come in late in the day to lift a declining market into positive territory at the close. We are expected to believe that millions of investors decided at the same moment to buy the same few stocks that will most affect the Dow. Their ability to manipulate the market for short periods is also obvious around options expirations each month.
The program trading firms claim their activity provides ‘liquidity’ to the market. Well, the markets were a lot more stable, liquid, and understandable before computerized program-trading became such a force.
And the farce that it provides liquidity was blown away again on Thursday when, whether caused by human error, or investor panic over events in Europe, stocks were falling sharply, with the Dow down 450 points, and the protective stops programmed into the automated program-trader’s computers began to be hit. There was no liquidity, no one taking the other side of sell orders, and the Dow plunged to being down 1000 points in 20 minutes before someone realized what was going on and pulled the plug.
Investors probably lost billions when either their own protective stops were blown through, or they were artificially panicked into selling at the low.
The only legitimate purpose of program-trading is in index arbitrage, which was originally its only activity. That is, when the futures markets get out of synch with the cash market for stocks trading on stock exchanges, the computers instantly spot the difference and pounce, buying one and selling the other for a few minutes, which brings them back into synch. The firms make tiny profits on the activity, but do it so often during each day that it adds up to $millions.
That is a legitimate and useful activity. But program-trading to take advantage of investors, or to manipulate markets, is not legitimate and should be banned.
And who are the program-trading firms?
The top-ten program-trading firms last week were Morgan Stanley, Goldman Sachs, Barclay’s Capital, Wedbush Morgan, Credit Suisse, Deutsche Bank, JPMorgan, RBC Capital (Royal Bank of Canada), Schon-Ex, and Penson Financial.
Their ‘index arbitrage’ trading accounted for just 0.8% of the week’s volume on the NYSE. The rest of their activity is classified as ‘other’ and accounted for 20% of the total volume on the NYSE, and obviously a lot more on the electronic exchanges.
The ‘other’ activity needs to be banned. But don’t hold your breath.