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Some more from that same article.
This is exactly what is happening to AIMH. They are making way more shares available than there should be on the offer side.
"Flooding the offer side of the board — Ultimately the price of a stock is found at the balance point where supply (offer) and demand (bid) for the shares find equilibrium. This equation happens every day for every stock traded. On days when more people want to buy than want to sell, the price goes up, and, conversely, when shares offered for sale exceed the demand, the price goes down.
The shorts manipulate the laws of supply and demand by flooding the offer side with counterfeit shares. They will do what has been called a short down ladder. It works as follows: Short A will sell a counterfeit share at $10. Short B will purchase that counterfeit share covering a previously open position. Short B will then offer a short (counterfeit) share at $9. Short A will hit that offer, or short B will come down and hit Short A's $9 bid. Short A buys the share for $9, covering his open $10 short and booking a $1 profit.
By repeating this process the shorts can put the stock price in a downward spiral. If there happens to be significant long buying, then the shorts draw from their reserve of “strategic fails-to-deliver” and flood the market with an avalanche of counterfeit shares that overwhelm the buy side demand. Attack days routinely see eighty percent or more of the shares offered for sale as counterfeit. Company news days are frequently attack days since the news will “mask” the extraordinary high volume. It doesn't matter whether it is good news or bad news."
Here is another article.
http://counterfeitingstock.com/CounterfeitingStock.html
"If a short seller cannot borrow a share and deliver that share to the person who purchased the (short) share within the three days allowed for settlement of the trade, it becomes a fail–to–deliver and hence a counterfeit share; however the share is transacted by the exchanges and the DTC as if it were real. Regulation SHO, implemented in January 2005 by the SEC, was supposed to end wholesale fails–to–deliver, but all it really did was cause the industry to exploit other loopholes"
"The bulk of the counterfeiting remains undisclosed, so don't be deceived when the SEC and the industry minimize the fails–to–deliver information. It is akin to the lookout on the Titanic reporting an ice cube ahead."
"Multiple tricks are utilized for the purpose of disguising naked shorts that are fails–to–deliver as disclosed shorts, which means that a share has been borrowed. They also make naked shorts “invisible” to the system so they don't become fails–to–deliver, which is the only thing the SEC tracks....
Settlement of stock transactions is supposed to occur within three days, at which time a naked short should become a fail–to–deliver, however the SEC routinely and automatically grants a number of extensions before the naked short gets reported as a fail–to–deliver. Most of the short hedge funds and broker dealers have multiple entities, many offshore, so they sell large naked short positions from entity to entity. Position rolls, as they are called, are frequently done broker to broker, or hedge fund to hedge fund, in block trades that never appear on an exchange. Each movement resets the time clock for the naked position becoming a fail–to–deliver and is a means of quickly getting a company off of the SHO threshold list."
GO AIMH!
Alex I
"In short selling, investors sell shares they have borrowed in anticipation of making a profit by purchasing stock to return to the lender after its price has fallen.
In naked short selling, traders never borrow the stock and can drive down prices by flooding the market with orders to sell shares they don't have."
http://www.ocnus.net/artman2/publish/Business_1/Goldman-Merrill-E-Mails-Show-Naked-Shorting-Filing-Says.shtml
GO AIMH!
Alex I
Yes, I've seen the "proof". But did you not read the part I bolded?
But due to various loopholes in the rules and discrepancies between paper and electronic trading systems, naked shorting continues to happen.
Which means they easily could be hiding the number FTD's so they can continue to do it without alarm.
Especially in a company that the SEC is taking no notice of.
GO AIMH!
Alex I
Here's an article from the LA Times.
"This month, the SEC appeared to rouse itself from its torpor. Motivated in part by the precipitous demise of Bear Stearns Cos., the commission is investigating whether traders are spreading false rumors to manipulate the price of certain stocks. As part of that probe, it has subpoenaed data from more than 50 large hedge funds. It has also called a temporary halt to a questionable trading tactic -- "naked short selling" -- on the shares issued by 19 companies in the finance industry, including Fannie Mae and Freddie Mac, whose stocks have plummeted. Some longtime critics of such sales, in which the sellers don't actually hold the shares they're unloading, say the commission should go even further and ban them on all stocks.
It's hard to defend naked shorting, which enables speculators to drive down a company's stock by offering an overwhelming number of shares for sale. And the emergency moratorium decreed Tuesday wasn't the first time the SEC sought to deter it. The commission adopted a rule four years ago to help track and restrict these sales, then tweaked it in March to more clearly criminalize abusive incidents. But traders move much faster than the SEC, meaning that the damage has already been inflicted by the time the enforcers show up.
Complicating matters is the fact that conventional short sellers don't own the shares they're selling either. The difference is that they at least make arrangements to borrow the stock (typically from brokers lending clients' shares). And although this kind of speculation doesn't exactly make the country more productive, it can help investors hedge their bets and rein in stocks whose prices rise irrationally.
That's why the emergency rule itself isn't as important as the fact that the SEC is actually responding with some alacrity to the allegations of manipulation. This is, after all, a commission that has been excruciatingly slow to identify and punish those in the securities industry whose deceptions and collusion helped fuel the subprime lending fiasco. And just last year, the commission actually made it easier for manipulators to drive down shares by eliminating a 70-year-old restriction against successive short sales. Adopting more rules won't deter bad actors if they're not convinced that the cop on the beat is paying attention."
http://articles.latimes.com/2008/jul/17/opinion/ed-sec17
GO AIMH!
Alex I
Just found some articles about it, and it pretty much explains it self. It's called naked short selling. So you are correct, normal short selling is not what is going here, but it is naked short selling. When MM's sell shares that don't exist.
"The illegal practice of short selling shares that have not been affirmatively determined to exist. Ordinarily, traders must borrow a stock, or determine that it can be borrowed, before they sell it short. But due to various loopholes in the rules and discrepancies between paper and electronic trading systems, naked shorting continues to happen.
While no exact system of measurement exists, most point to the level of trades that fail to deliver from the seller to the buyer within the mandatory three-day stock settlement period as evidence of naked shorting. Naked shorts may represent a major portion of these failed trades.
Naked shorting is illegal because it allows manipulators a chance to force stock prices down without regard for normal stock supply/demand patterns." - Making it seem that AIMH's float is much larger than 6.5 Million shares.
Read more: http://www.investopedia.com/terms/n/nakedshorting.asp#ixzz1xfzGO5e2
GO AIMH!
Alex I
If you say you've heard seminars about it, then you must know what I'm talking about. I don't know how to explain it any better.
GO AIMH!
Alex I
I'm sure he saw the consequences Berney faced, and likely won't do the same. By the way, that was 13 years ago.
GO AIMH!
Alex I
I assume he knew he had some responsibility for the company, since it was left in his hands, but it seems he was unaware that someone had tried to take it over without his permission. It's clear now that someone (and I'm positive it's Barton) is taking control and we're surely on the right path again towards a R/M.
GO AIMH!
Alex I
I'm very sure it is. But yes I will await some kind of official update from the company that should confirm to everyone the shares structure is the same.
GO AIMH!
Alex I
Lol
GO AIMH!
Alex I
It's unclear why the MM's would even want to do this. But they have been for at least 2 years now. An exponential increase in PPS would IMO cause them to buy back those shares that they sold, causing the price to explode, since they'd have to hit he ask to get them. It may not be exactly like shorts covering, but it works almost the same way.
So in answer to your question, the MM's have been able to get away with it since there hasn't really been enough volume to cause the price to shoot up and require them to cover these "fake", "air", or "phantom" shares. But that's where the R/M comes into play. Get R/M news and the volume would certainly spike resulting in the outcome of MM's covering these shares. Also a symbol change would require all shares to be accounted for. If it was found out that certain MM's were creating these "air" shares, there would be stiff penalties against them. So they would certainly be in a rush to cover all those fake shares before it was found out. And no shareholders would complain since their fake shares they bought at 0.01 would be worth much more than that, since the MM's would be desperate to buy them back to avoid penalties from the SEC.
Again I do not understand why MM's are doing this to AIMH, but it seems to be the only logical reason. Since the float is 6.5 million shares and has been for at least 5+ years.
If you look back at old charts for AIMH, check out how back in the laste 90's when AIMH wasn't being manipulated by MM's, AIMH still had a very low float and it only took a few 100K in volume for AIMH to top out at over $3. There was clearly no manipulation then.
Many other low float plays (that aren't being manipulated) have run from a few pennies to 0.30, 0.50, 0.85+ on only a few 100K to a few million in volume. But they haven't been manipulated either. And with how much buying volume AIMH has had over the past 5 years, AIMH should be up there too. But something has been holding it back, and that so far has been the only reason that we've been able to come up with. And there are many facts supporting that.
The main facts are that the float is 6.5 Million, and the second is that (when combined) we all own shares that total more than the float some 4+ times over. Possibly more.
GO AIMH!
Alex I
Just 5 months ago, Barton (acted) or in reality didn't even know he had really anything to do with AIMH. And AIMH has been trading like this for 4-5 years. So I doubt Barton has anything to do with it.
And here is a few pretty good explanations of the air share factor. It makes sense to me.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57138669
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57139459
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57139206
And these posts were from late 2010. Joby and others have all continued to add, so the total shares floating around out there are much higher. I'll look around for any more posts that explain it and post them too.
GO AIMH!
Alex I
We will get a current share structure update at some point very soon from what I hear, but the T/A and others on the inside, while not giving out the SS have continued to say that it has not changed in 6 years. So the numbers from the OTC from 2010 & 2012 are still current from from what I know.
Also I do know that "those 6.5 million shares can continue to change hands ad infinitum", but when multiple shareholders hold many shares adding up to much more than the float, and even one shareholder "jobynimble" claims he has more shares than the float and those shares are not changing hands and not being sold, then it really solidifies the claim. Believe it or not. But I think this "air" share factor will really benefit AIMH's PPS in the short & long run when we finally get going and the volume starts pouring in.
GO AIMH!
Alex I
So what do you call it then when AIMH's float is about 6.5 Million shares, but for a fact over 20-25+ million shares have been sold into the market, when that is far past how many free trading shares should be available? What happens then? Please explain it to me, since that is what is happening in AIMH's case.
In reality there are 0 shares available, but for some reason, and I don't know why you don't believe me on this, they continue to make more "air or "phantom" shares in this price range (0.01-0.03) and keep us stuck here, when there shouldn't be anymore shares left, and we should be way past these prices already.
Whether it's shorts or MM's, some one will have to account for all those shares that have been sold into the market when they shouldn't even be available, since the whole float has already been boughten up. Now several times over.
Even "TheBullTwit" showed what he owns in 1 account. All you need is 5 or 6 people to own that much and the float is already bought up.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=76468203
GO AIMH!
AleX I
That is correct. It's been claimed here and proven through charts that the float has been up almost 4-5 times over. This is why the potential for the PPS to go to 0.50+ on the volume R/M news will bring, because it should already be at 0.30+ to begin with. And the additional buying simply outweigh what the shorts can bear, and they will be forced to cover. Many P&D scams claim a short squeeze is happening, and just simply slap the ask until they don't want to anymore and the price falls. But this would a true short squeeze. And these are very rare. The share structure should be confirmed soon in a PR or other update of some sorts. This should prove to everyone that a true short squeeze should really happen when the volume hits and AIMH takes off.
GO AIMH!
AleX I
"Air shares" are shares that have been sold once the float has alrady been bought up. I don't know why the MM's have continued to sell these shares, but they will have to account for them, or they will risk facing Fed and Margin Calls (which is what will stop them from making more). Clearly AIMH should not be trading like this since it has a 6.5 Mil. float. With all the accumulation over the past 5 years we should definitely be at 0.25-0.30+, but something or someone has been holding AIMH down, and creating more shares available than what there should be in the 0.01-0.03 range, which has kept us stuck here. Get enough volume to break out and that's when this will really move.
GO AIMH!
Alex I
What do you want to know? I can go on and on about them, and how they'll affect the PPS once we really start moving (past 0.03-0.05).
GO AIMH!
Alex I
The only reason we declined in posts today was because no posters (who usually do this) were bringing up why AIMH was still a bad invesment, which caused other posters to reply back with posts supporting AIMH.
Naysayers always increase posts on a board. In realitry they're only attracting more attention to the board. lol
GO AIMH!
Alex I
Nice chart! Looks like AIMH is going up again!
Alex I
AIMH - 0.0158 - 300K yesterday vs. 44K 10day average
Alex I
AIMH UP 12%! 6.5 Mil. float R/M play.
Follow the board for updates and DD!
http://investorshub.advfn.com/AimRite-Holdings-Corp-AIMH-5977/
Alex I
AIMH set to explode! R/M news coming. Filings released last week.
Follow to board for updates and DD!
http://investorshub.advfn.com/AimRite-Holdings-Corp-AIMH-5977/
Alex I
AIMH set to explode! R/M news coming. Filings released last week.
Follow to board for updates and DD!
http://investorshub.advfn.com/AimRite-Holdings-Corp-AIMH-5977/
Alex I
Wow. That's awesome! I'll look into yours too.
Alex I
Doubt it. But you can wish for badness to happen to AIMH all you want.
GO AIMH!
Alex I
AIMH, 6.5 Mil. float reverse-merger play. Insane accumulation! R/M news around the corner. Filings out last week.
Check out the stickies for additional DD!
http://investorshub.advfn.com/AimRite-Holdings-Corp-AIMH-5977/
Alex I
AIMH, 6.5 Mil. float reverse-merger play. Insane accumulation! R/M news around the corner. Filings out last week.
Check out the stickies for additional DD!
http://investorshub.advfn.com/AimRite-Holdings-Corp-AIMH-5977/
Alex I
AIMH UP 12% so far today! NVSOS updates out. More filings expected.
GO AIMH!
Alex I
AIMH UP 12% so far today! NVSOS updates out. More filings expected.
GO AIMH!
Alex I
Your welcome. Keep spreading the word about AIMH. It's only way to get more eyes on this awesome stock.
GO AIMH!
Alex I
AIMH ready to explode. R/M news on the horizon. NVSOS updates out.
6.5 Mil. float - 61 Mil. O/S. - More updates forthcoming.
Check out the board, and read the stickies.
http://investorshub.advfn.com/AimRite-Holdings-Corp-AIMH-5977/
Alex I
AIMH ready to explode. R/M news on the horizon. NVSOS updates out.
6.5 Mil. float - 61 Mil. O/S. - More updates forthcoming.
Check out the board, and read the stickies.
http://investorshub.advfn.com/AimRite-Holdings-Corp-AIMH-5977/
Alex I
AIMH - Great R/M play! 6.5 Mil. float! Insane accumulation.
Check out the AIMH board! Read the stickies!
http://investorshub.advfn.com/AimRite-Holdings-Corp-AIMH-5977/
Alex I
AIMH - Great R/M play! 6.5 Mil. float! Insane accumulation.
Check out the AIMH board! Read the stickies!
http://investorshub.advfn.com/AimRite-Holdings-Corp-AIMH-5977/
Alex I
131 BM's
GO AIMH!
Alex I
Maybe!? lol
GO AIMH!
Alex I
0.0158 gettig hit!
GO AIMH!
Alex I