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Yep, I'd rather be fishing...
Could be a penny stock before the market(lawyers) and the SEC are done shredding it. It happened to me with PANA:
Once it goes below $5.00 you can't short it unless you are a market maker according to my best understanding of the "Rules!"
http://www.pinksheets.com/quote/chart.jsp?symbol=PANA&duration=2-6-9-0-0-560
Vaso is the name but the symbol is VAPH not to be confused with
VASO
I wasn't janking your cranker, just as long as we are on the same channel, why not
It's halted till the 15th...but if $5 is your best guess for a bottom...if it reopens after the investigation...I'd say it's a good bet for some good short sellers...theStreet.com has been butchering it in the press for weeks...
Man I like the sound of that music on my blaster.
Look at those gaps and volume surge!
Open short positions?
Shares Short (as of 8-Mar-04): 727.00K
Daily Volume (as of 8-Mar-04): N/A
Short Ratio (as of 8-Mar-04): 0.22
Short % of Float (as of 8-Mar-04): 32.53%
Shares Short (prior month): 261.00K
Date Open High Low Close Volume Adj Close*
1-Apr-04 7.59 7.59 7.59 7.59 0 7.59
31-Mar-04 7.57 8.20 7.20 7.59 310,700 7.59
30-Mar-04 6.75 7.77 6.75 7.59 498,200 7.59
29-Mar-04 7.46 7.65 6.85 7.08 710,600 7.08
26-Mar-04 8.05 8.68 7.38 7.46 1,617,900 7.46
25-Mar-04 6.31 8.14 6.31 8.05 1,009,500 8.05
24-Mar-04 6.90 7.17 6.17 6.29 469,500 6.29
23-Mar-04 7.06 7.46 6.80 6.90 337,100 6.90
22-Mar-04 7.27 7.75 7.26 7.41 201,800 7.41
19-Mar-04 8.15 8.15 7.61 7.75 322,700 7.75
18-Mar-04 8.00 8.37 7.85 7.92 385,600 7.92
17-Mar-04 7.87 8.90 7.66 8.11 1,741,300 8.11
16-Mar-04 7.10 7.49 6.80 7.03 572,100 7.03
15-Mar-04 6.85 7.26 6.32 6.74 618,700 6.74
12-Mar-04 7.39 8.49 7.00 7.04 903,700 7.04
11-Mar-04 7.50 8.38 6.80 7.20 1,317,500 7.20
10-Mar-04 10.26 10.60 8.16 8.33 2,670,000 8.33
9-Mar-04 12.25 12.38 11.20 11.46 832,400 11.46
8-Mar-04 12.79 13.74 11.51 11.80 2,483,300 11.80
8-Mar-04 3 : 1 Stock Split
5-Mar-04 37.00 41.00 35.32 39.30 1,570,900 13.10
4-Mar-04 34.27 37.35 32.51 36.50 1,481,200 12.17
3-Mar-04 39.80 42.33 34.30 35.99 2,289,600 12.00
2-Mar-04 32.00 38.00 30.64 36.61 1,811,400 12.20
1-Mar-04 28.00 36.00 26.50 30.30 1,655,700 10.10
27-Feb-04 28.00 28.13 26.01 27.29 412,200 9.10
26-Feb-04 28.48 29.25 26.71 27.28 715,900 9.09
25-Feb-04 24.61 29.75 23.59 28.50 1,582,600 9.50
24-Feb-04 26.15 27.50 25.00 25.73 606,300 8.58
23-Feb-04 27.60 31.05 27.00 28.35 2,280,900 9.45
20-Feb-04 25.73 35.73 24.57 33.15 2,666,500 11.05
19-Feb-04 22.65 23.90 20.60 22.11 298,300 7.37
18-Feb-04 24.75 26.44 21.27 21.63 562,200 7.21
17-Feb-04 21.29 25.35 20.29 24.04 1,164,000 8.01
13-Feb-04 15.40 19.85 14.31 19.50 529,400 6.50
12-Feb-04 15.30 15.49 14.50 15.22 164,700 5.07
11-Feb-04 13.75 15.64 13.33 15.12 266,800 5.04
10-Feb-04 11.10 13.70 11.00 13.31 223,700 4.44
9-Feb-04 9.52 11.10 9.33 10.89 94,000 3.63
6-Feb-04 9.00 9.59 9.00 9.50 39,700 3.17
5-Feb-04 8.40 9.10 8.40 9.00 31,100 3.00
4-Feb-04 8.35 8.50 8.16 8.39 21,400 2.80
3-Feb-04 8.80 8.80 8.32 8.44 27,100 2.81
2-Feb-04 9.00 9.00 8.60 8.80 18,400 2.93
30-Jan-04 8.60 8.98 8.60 8.85 32,500 2.95
29-Jan-04 9.58 9.60 8.70 8.82 50,800 2.94
28-Jan-04 9.06 9.85 9.00 9.21 128,300 3.07
27-Jan-04 8.87 9.17 8.68 9.07 84,400 3.02
26-Jan-04 9.00 9.09 8.56 8.74 55,700 2.91
23-Jan-04 8.09 9.19 8.09 8.76 72,800 2.92
22-Jan-04 7.60 8.18 7.60 8.10 88,300 2.70
21-Jan-04 7.00 7.60 6.97 7.45 70,700 2.48
20-Jan-04 6.59 7.00 6.52 6.91 24,200 2.30
16-Jan-04 6.50 6.59 6.26 6.50 24,100 2.17
15-Jan-04 6.21 6.34 6.11 6.33 7,000 2.11
14-Jan-04 6.54 6.54 6.30 6.31 29,000 2.10
13-Jan-04 6.80 6.80 6.50 6.57 11,500 2.19
12-Jan-04 6.40 6.96 6.40 6.70 56,700 2.23
9-Jan-04 6.12 6.43 6.03 6.40 43,800 2.13
8-Jan-04 6.15 6.25 6.00 6.07 11,900 2.02
7-Jan-04 6.15 6.19 6.03 6.11 52,600 2.04
6-Jan-04 6.35 6.35 6.05 6.15 24,900 2.05
5-Jan-04 6.05 6.35 6.00 6.20 38,400 2.07
2-Jan-04 5.93 5.95 5.85 5.91 4,400 1.97
31-Dec-03 6.00 6.04 5.93 6.03 5,400 2.01
30-Dec-03 6.02 6.06 5.92 6.05 14,100 2.02
29-Dec-03 6.10 6.40 5.92 6.06 37,400 2.02
Rove and Rice Indicted for Perjury....how nice.
April fools is over...
Naw, you won't hear the end of it all next week...she will be crucified much like her Saviour...only without all the blood and poking in the side by Roman guards....just another prediction...remember...I told everyone here first that CR would testify under oath over two weeks ago....want next prediction, PM me. I think both Rush Limberger and Howard Stern should have a national public debate on Television about politics...
VAPH Downlegged looking?
Story at 11...just kidding...watch to see if it ever opens after the 15th of April
http://www.investorshub.com/boards/read_msg.asp?message_id=2751628
The full story on VAPH is embedded in the above link...
Nice Rig...check this out:
http://www.investorshub.com/boards/read_msg.asp?message_id=2751628
PM me if you want to buy it. Asking $300,000
Gee that sounds like a Bush burning in the distance...echo's of a speech made sometime around 9/12/01...what was that guys name who used to be President?
http://www.investorshub.com/boards/read_msg.asp?message_id=2751628
Digging Deep into the Vaso Line...Prepare for the Bendover
No Hope Predicted For Pension Funds - Millennium Sinking Fast
Note the bold print in the second link below...
Pension Funds invest in Hedge Funds. Hegdge Funds are the next big wave of investigations after much neglect by the SEC. The data is just churning up to the surface, the iceberg runs very cold and deep.
One thing leads to another and ultimately the banks will pay.
They set up the hedge fund industry to begin with to get around certain securities and exchange rules...pension problems will plummet the dollar further...predict 100 yen to the dollar and 140 Euros to the dollar and a flight to GBP in coming weeks with 200 GBP to the US $1.00 as pension tensions tumult the markets...
http://www.investorshub.com/boards/read_msg.asp?message_id=2751521
http://www.investorshub.com/boards/read_msg.asp?message_id=2751552
Does it take a genious to connect all these dots or am I just a more - on kinda guy than you're on?
The blood letting continues into the second quarter. By half time the patient will be so sick, the Bush will be on fire according to one Prophit Spitting Moses.
No spin, just pass the Gin, and hand me another shot of Whiskey, and put that beer on Greenspan's tab for me.
No Hope Predicted For Pension Funds - Millennium Sinking Fast
Note the bold print in the link below...
Pension Funds invest in Hedge Funds. Hegdge Funds is the next big wave of investigations after much neglect by the SEC.
One thing leads to another and ultimately the banks will pay. They set up the hedge fund industry to begin with to get around certain securities and exchange rules...watch and learn my good friend:
http://www.investorshub.com/boards/read_msg.asp?message_id=2751552
The blood letting continues into the second quarter. By half time the patient will be so sick, the Bush will be on fire according to one Prophspitting Moses
Vaso Active's Claims Prompt SEC to Step In
By Matthew Goldstein
TheStreet.com Senior Writer
Vaso Active Pharmaceuticals (VAPH:Nasdaq - commentary - research), one of the hottest stocks of the year, was stopped dead in its tracks Thursday by securities regulators.
The Securities and Exchange Commission suspended trading in shares of the tiny Massachusetts company, which claims to have developed a miracle treatment for athlete's foot and a "revolutionary" transdermal delivery system for over-the-counter drugs.
The SEC imposed the suspension "because of questions regarding the accuracy of assertions" by the company in press releases, its annual report and other corporate filings. SEC officials have been investigating the company, which went public in a mid-December IPO, for a little over month.
The action followed a series of articles on TheStreet.com questioning the company's statements about its clinical trials and medical endorsements and noting troubling aspects of its corporate pedigree.
In a press release announcing the temporary suspension, the SEC says the questions surround statements Vaso Active made about Food and Drug Administration approval of "certain key products" and "the regulatory consequences of the future application of their primary product."
The trading suspension expires at midnight on April 15, and it gives time for the SEC to gather information and possibly bring an emergency enforcement action against a company.
Mark Kreitman, an SEC assistant chief litigation counsel, declined to comment on the suspension, but he said the investigation is continuing. The company did not return telephone calls seeking comment.
Matt Meister, president of Kashner Davidson, the small Florida brokerage that was the underwriter on the IPO, declined to comment.
Shares of Vaso Active were frozen at $7.59 a share. The stock is up 314% since its December 2003 initial public offering, after adjusting for a 3-for-1 stock split last month.
The past few months have been a helter-skelter ride for Vaso Active, a money-losing company with just seven employees and less than $60,000 in annual sales. The stock soared on the company's claim that its Termin8 foot lotion and its patented transdermal technology system will revolutionize the over-the-counter drug market.
Last week, in a conference call with investors, Vaso Active Chief Executive John Masiz read a statement predicting that the company's annual sales will climb from $53,000 in 2003 to a "run rate" of $12 million next year because of a number of strategic deals it has reached. The conference call sparked controversy, because Masiz abruptly ended it without fielding questions, even though more than 100 people were listening in.
Controversy is nothing new to Vaso Active. The company has had to fend off questions about an endorsement for its athlete's foot lotion Termin8 and the authorship of a six-year-old clinical study of the foot lotion.
Regulators also have raised questions about the high level of trading in the stock. In the weeks before the stock split, the shares skyrocketed from $8 to $39. The trading volume rose from just a few thousand shares changing hands each day to several million.
Despite all the controversy, Vaso Active was able to ink a $7.5 million private placement with Millennium Partners, a big New York hedge fund led by Wall Street impresario Israel Englander. The financing arrangement consisted of an 18-month convertible 2% note that can be turned into roughly 833,000 shares of Vaso Active stock, if the share price reaches $9. The deal also included warrants to purchase 166,667 shares of Vaso stock at an exercise price of $8.75.
A Millennium spokesman declined to comment on the trading suspension.
A familiar stench wafts from Vaso Active (VAPH:Nasdaq - commentary - research), the small Massachusetts company that claims to have developed a new treatment for athlete's foot.
The smell spawns memories of the late 1990s IPO market, when any company with a whiff of a business plan, vague stories and an investment bank could sell shares to the public and see them soar.
Skyrocket is the more apt verb for Vaso, which, since going public in mid-December, has seen its shares jump 440% to just below $27. This is for a company with no profits, less than $100,000 in annual sales and seven employees.
Trading in the 1.6 million Vaso shares sold to the public has been frenzied. Over the past two weeks, an average of 1 million shares have changed hands each day. The trading has been so frenetic that even the investment bankers at Kashner Davidson, the small Florida brokerage firm that led the IPO, are expressing dismay.
Perhaps investors also should worry.
For starters, there's the debate about just how amazing its foot-fungus-fighting treatment Termin8, really is.
The company contends the product, with its "revolutionary transdermal drug delivery technology," is a "highly advanced and remarkably effective cure for Athlete's Foot." The company has such high hopes for Termin8, which retails for $19.99, it recently told investors that it foresees a $365 million market for the product. Furthermore, Vaso Active boasts on its Web site that Termin8 has won the endorsement of The American Association of Medical Foot Specialists.
In a recent interview, David Z. Ascher, a New York podiatrist and the foot association's president, seemed more impressed with Termin8's packaging.
"There is no such thing as a miracle cure," Ascher said. "It is as good as any of the other products."
The doctor continued: "The packaging is fantastic. The box is so beautiful."
Vaso Active might be ruing ever getting involved with Ascher, who won't say how many members are in his medical association.
Last week, Ascher told Barron's he didn't recall endorsing the company's product. He has since amended that. Ascher told the TheStreet.com this week that he was confused when he talked to Barron's because Termin8 used to be called something else, deFEET. Ascher said his association stands behind its endorsement, but now he wants Vaso Active to make a donation to an association scholarship.
Whatever the connection, Ascher's group wants no part of a controversy. "We do not want to be involved with any hanky-panky," he commented.
A Vaso Active spokesman declined to comment.
If that doesn't give investors pause, consider the cast of Wall Street characters surrounding the tiny company.
TheStreet.com previously reported that Ray Dirks, a legendary analyst whom regulators have charged with pumping up a handful of penny stocks, initially had a hand in Vaso Active's IPO. Dirks' firm, Sky Capital, was going to be the lead underwriter on the deal, until Kashner Davidson replaced it at the last minute.
Still, sources familiar with the deal said, Sky Capital got an allocation of shares to sell to its customers. Also, one of Vaso Active's directors, Gary Fromm, also is a director of Sky Capital Ventures, a subsidiary of Sky Capital.
Kashner Davidson, the firm that ultimately took Vaso Active public, has also known controversy. The 27-year-old firm, which specializes in so-called microcap IPOs, has been fined or censured by securities regulators 19 times. The most serious infraction occurred in 1996 when state and federal regulators fined and sanctioned Kashner Davidson for having an improper relationship with a stock promoter.
Some of the investment firm's recent IPOs haven't fared too well.
EsafetyWorld, a Bohemia, N.Y., company that Kashner took public in 2000, is out of business. It imploded after regulators raised concerns about some of its financial filings and a post-Sept. 11 claim that it had developed a safe system for opening mail suspected of containing anthrax.
Two other companies, Able Energy (ABLE:Nasdaq - commentary - research) and BioDelivery Sciences (BDSI:Nasdaq - commentary - research), are both selling well below their IPO prices. Shares of Able, which went public at $7 a share, were most recently trading around $2.58, while BioDelivery, priced at $5.25, is trading around $3.75.
Matt Meister, Kashner Davidson's president and chief executive, defended his firm's reputation and underwriting track record. He said the regulatory issues at Kashner Davidson are in the past and there's always a risk in taking companies, especially small ones, public. Vaso Active's success, he said, doesn't depend on the sales of a single product, but the company's ability to develop its transdermal technology.
"This is a company we think that may have a technology platform for transdermal delivery," said Meister. "It's more the technology than the product itself. It looks like it could be pretty good, with some sound science behind it."
Wall Street wheeling and dealing can make for some strange relationships, such as the one entered into this week between Millennium Partners and Vaso Active Pharmaceuticals (VAPH:Nasdaq - news - research) .
On Tuesday, the embattled hedge fund led by legendary Wall Street trader Israel Englander made a big bet on the quirky little drug company that claims to have developed a miraculous cure for athlete's foot.
The private equity arm of Millennium, in a $7.5 million private placement, purchased an 18-month convertible 2% note that can be turned into roughly 833,000 shares of Vaso Active stock, if the share price reaches $9. The deal also included warrants to purchase 166,667 shares of Vaso stock at an exercise price of $8.75.
On Tuesday, the day the deal was inked, shares of the Danvers, Mass.-based company closed at $7.03. Vaso Active stock soared 15% Wednesday to $8.11 after the company announced the transaction, leaving the shares within striking distance of both magic numbers.
News of the deal comes as Millennium and Vaso Active face regulatory scrutiny.
With $3.2 billion in assets, Millennium is one of the big hedge funds at the center of the far-reaching investigation into improper trading in the mutual fund industry. Last year, one of Millennium's top traders pleaded guilty to making illegal trades in shares of mutual funds. Englander is bracing investors for the possibility the hedge fund could be ordered to pay a stiff fine when the investigation is completed.
Millennium Partners, one of the hedge funds at the center of the mutual fund trading scandal, has set aside 10% of its investors' money in preparation for a possible settlement with federal or state regulators.
Investors at the $3.2 billion hedge fund run by Israel Englander, the storied Wall Street trader and buyout specialist, learned in December that some of their money would be set aside for the firm's legal reserve, even as backers clamored for their cash. About $800 million has streamed out of two Millennium hedge funds since the firm surfaced in the mutual fund late-trading and market-timing scandal last October.
Millennium's decision to set up a legal reserve looks prudent, particularly after a former trader, Steve Markovitz, pleaded guilty in October to making illegal late trades in shares of mutual funds. The action is similar to one taken by Veras Investment Partners, a Sugar Land, Texas, hedge fund that put away up to $100 million to cover any fines and penalties regulators might impose in their investigation of its role in the mutual fund scandal.
Harry Davis, a partner with Schulte Roth & Zabel and one of Millennium's outside attorneys, didn't return repeated phone calls. Tom Daly, a Millennium spokesman, declined to comment. TheStreet.com reported Tuesday that a number of witnesses familiar with Millennium and Markovitz have appeared before a New York state special grand jury that is investigating the mutual fund industry.
While Millennium investors have been pulling out of funds, the situation would be worse if not for restrictions in their investment agreements that allow Millennium to bar larger withdrawals. Millennium's investors include Duke Management Co., which runs Duke University's $5 billion endowment; the Belzbergs, one of the richest families in Canada, and many funds of hedge funds.
According to an investor that still has "a few million" in one of Millennium's hedge funds, word of the legal reserve was one of very few communications the beleaguered Englander has offered to his backers in recent months. While the fund was once open about market-timing, a legal-if-frowned-upon strategy involving frequent trades, it clammed up around the time of the Markowitz late-trading plea, the investor said.
The ice is beginning to crack beneath Millennium Partners, the big New York hedge fund run by Wall Street trader and buyout specialist Israel Englander.
Over the past several months, lawyers and other sources say, investors have pulled $800 million out of Millennium, in the wake of a guilty plea last September by Millennium trader Steve Markovitz to making illegal mutual fund trades. The redemptions, which sources say coincide with the departure of several traders and back-office employees, have slashed Millennium's total assets under management to about $3.2 billion.
The drop in assets under management is particularly sharp -- Millennium had $3.3 billion in its offshore fund as of the end of December plus about $1 billion in its fund for domestic investors, according to the Center for International Securities and Derivatives at the University of Massachusetts.
More troubling, legal sources say, state and federal securities regulators looking into allegations of improper trading in the $7 trillion mutual fund industry are stepping up their inquiry into Millennium's role in the scandal. Lawyers familiar with the investigation believe the renewed focus on Millennium could be a prelude to the filing of additional criminal charges, or the imposition of a stiff fine on the giant hedge fund.
In recent weeks, a number of witnesses familiar with Millennium and Markovitz have appeared before a New York State special grand jury that is investigating the mutual fund industry, several sources said. One person familiar with the investigation said the grand jury has heard testimony from a number of people in the "Markovitz universe.'
Markovitz, one of the first people on Wall Street arrested in the far-reaching mutual fund trading scandal, pleaded guilty to making illegal late trades in shares of mutual funds. In pleading guilty, Markovitz agreed to cooperate with prosecutors and his sentencing has been delayed several times while Spitzer's office continues its investigation.
Late-trading and market-timing are the two main trading offenses at the center of the mutual fund investigation. Late-trading, which is illegal, involves buying shares of a mutual fund after the close of trading, but at an old price that doesn't reflect the impact of late-breaking market developments. Market-timing, which is not illegal, entails the frequent trading of mutual fund shares, often in violation of fund company rules.
Despite the increased grand jury activity, prosecutors are not believed to be close to filing criminal charges against anyone else at Millennium. People familiar with the inquiry said investigators with New York Attorney General Eliot Spitzer are still trying to determine what, if anything, Englander may have known about any improper mutual fund trading.
Englander, because of his past dealings with some of Wall Street's more notable characters, would represent a high-profile catch for securities regulators.
Back in the 1980s, Englander was a friend of convicted Wall Street felon Ivan Boesky. Later, he was partner in a buyout firm with John Mulheren, the storied arbitrager who was arrested on gun charges in 1988. Mulheren, who died late last year, was convicted of insider trading in the investigation that brought down Boesky. The conviction was later thrown out on appeal.
A Spitzer spokesman declined to comment. A Millennium attorney, Martin Pershetz, a former federal prosecutor and a partner at Schulte Roth & Zabel in New York, didn't return phone calls over a period of several days. Harry Davis, another Schulte Roth attorney who does work for Millennium, declined to comment. Tom Daly, a spokesman for the fund, also declined to comment.
The increased grand jury activity comes at a time when Millennium is taking steps to fortify its regulatory and compliance operation. Last month the hedge fund hired Simon Lorne, a former Securities and Exchange Commission general counsel, as a vice chairman and chief legal officer.
Some people familiar with the Millennium investigation see Lorne's hiring as setting the stage for a possible settlement between Millennium and regulators and prosecutors.
Regulators have long eyed the dozens of hedge funds that reaped big profits from improper trading as potential deep pockets for reimbursing mutual fund shareholders.
TheStreet.com previously reported that Spitzer's office and the SEC advised Veras Investment Partners, another hedge fund, to set aside more than $100 million to cover the cost of a possible settlement for its role in the trading scandal. The Sugar Land, Texas, hedge fund, which is in the process of closing down, allegedly made improper trades in shares of funds sold by Fred Alger Management and Federated Investors (FII:NYSE - commentary - research).
The mutual fund investigation began last September with Spitzer's announcement that he had reached a $40 million settlement with Canary Capital Partners, the New Jersey hedge fund run by Edward Stern.
Meanwhile, the exodus of investors from Millennium could have been far worse than the $800 million that's already been taken out. Under Millennium's partnership agreements, investors are generally obliged to leave their money in the funds for a minimum of three years.
A spokesman for the fund also declined to comment on the investor withdrawals.
And who are the investors still left behind Millennium?
UPDATE - SEC suspends trading in Vaso Active stock
Thursday April 1, 7:21 pm ET
(Adds company comment, changes dateline from WASHINGTON)
NEW YORK, April 1 (Reuters) - U.S. securities regulators on Thursday halted trading of Vaso Active Pharmaceuticals Inc. (NasdaqSC:VAPH - News), a marketer of over-the-counter pharmaceuticals, through April 15.
The Securities and Exchange Commission questioned assertions made by the Danvers, Massachusetts-based company of regarding an FDA approval of certain key products, among other issues.
Vaso Active said in a statement it is "committed to providing the company's full cooperation," but that it would be "inappropriate to provide a more detailed comment at this time."
The SEC said it questioned the accuracy of assertions made in the company's press releases, annual report, registration statement, and public statements to investors.
Vaso shares closed at $7.59 Wednesday on the Nasdaq.
Vaso Active Pharmaceuticals Statement in Response to SEC April 1st Release
Thursday April 1, 7:00 pm ET
DANVERS, Mass.--(BUSINESS WIRE)--April 1, 2004--Vaso Active Pharmaceuticals (NasdaqSC: VAPH) is committed to providing the company's full cooperation in addressing the concerns raised by the Commission in its release issued April 1, 2004. As this matter is in its early stages, it would be inappropriate to provide a more detailed comment at this time.
--------------------------------------------------------------------------------
Contact:
Vaso Active Pharmaceuticals
Matt Carter, 978-750-1991x28
mcarter@vasoactive.us
UPDATE - SEC suspends trading in Vaso Active stock
Thursday April 1, 7:21 pm ET
(Adds company comment, changes dateline from WASHINGTON)
NEW YORK, April 1 (Reuters) - U.S. securities regulators on Thursday halted trading of Vaso Active Pharmaceuticals Inc. (NasdaqSC:VAPH - News), a marketer of over-the-counter pharmaceuticals, through April 15.
The Securities and Exchange Commission questioned assertions made by the Danvers, Massachusetts-based company of regarding an FDA approval of certain key products, among other issues.
Vaso Active said in a statement it is "committed to providing the company's full cooperation," but that it would be "inappropriate to provide a more detailed comment at this time."
The SEC said it questioned the accuracy of assertions made in the company's press releases, annual report, registration statement, and public statements to investors.
Vaso shares closed at $7.59 Wednesday on the Nasdaq.
Vaso Active Pharmaceuticals Statement in Response to SEC April 1st Release
Thursday April 1, 7:00 pm ET
DANVERS, Mass.--(BUSINESS WIRE)--April 1, 2004--Vaso Active Pharmaceuticals (NasdaqSC: VAPH) is committed to providing the company's full cooperation in addressing the concerns raised by the Commission in its release issued April 1, 2004. As this matter is in its early stages, it would be inappropriate to provide a more detailed comment at this time.
--------------------------------------------------------------------------------
Contact:
Vaso Active Pharmaceuticals
Matt Carter, 978-750-1991x28
mcarter@vasoactive.us
Hyundai Heavy to build two tankers for Russian firm
Friday April 2, 2:00 am ET
VLADIVOSTOK, Russia, April 2 (Reuters) - South Korea's Hyundai Heavy Industries Co. (KSE:009540.KS - News) has signed a deal with a Russian shipping firm to construct two large Suezmax oil tankers, the Russian company said on Friday.
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Natalia Mironova, a Primorsk Shipping Company (Prisco) spokeswoman, said the tankers, with 166,000 tonnes deadweight each, will be built by 2007 and mainly used to carry crude from Russia's ports on the Baltic Sea to international markets.
Prisco is Russia's fourth biggest shipping firm running 43 tankers with a total deadweight of 785,000 tonnes, made up mainly of barges.
She declined to say how much the deal was worth.
Russia, the world's second largest oil exporter, expects crude exports to rise further, including through ports on the Baltic Sea.
Prisco had previously contracted Hyundai Heavy to build three 100,000-tonne tankers to be used to ship oil from ExxonMobil-led (NYSE:XOM - News) Sakhalin-1 oil project in the Russian far east to Asian markets.
Japan, Russia, China all working cooperatively together to meet their future energy needs
Dollar Firmer as Jobs Hopes Fly High
Friday April 2, 4:50 am ET
By Natsuko Waki
LONDON (Reuters) - The dollar recovered its footing on Friday, pulling up from recent four-year lows against the yen and 10-day lows against the euro ahead of a keenly-awaited U.S. employment report.
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Monthly U.S. jobs figures have disappointed in recent months, each time sending the dollar reeling, but a strong employment index in Thursday's ISM manufacturing report has raised optimism Friday's payrolls could show an improvement.
Economists polled by Reuters predicted 103,000 jobs were created in March compared with a paltry 21,000 in February. However, some banks expect a payrolls gain of as much as 200,000 and others as low as 75,000.
"Expectations for the payrolls are flying quite high at the moment. But room for disappointment is also considerable," said Carsten Fritsch, currency strategist at Commerzbank in Frankfurt.
"The dollar will come under pressure if the number comes in weaker than expected as it will postpone expectations for a Federal Reserve tightening and also put the sustainability of U.S. expansion at risk."
By 0930 GMT, the dollar was up two thirds of a percent at 104.18 yen, after hitting a four-year low of 105.38 on Wednesday. The euro also succumbed to the dollar's firmer tone, shedding a third of a percent to $1.2316.
"I think the real consensus now will have shifted somewhere between 120 and 150 (thousand) or even above... The bottom line here is there seems to be an asymmetric risk to the dollar today," said Mitul Kotecha, head of global FX research at Credit Agricole Indosuez.
Job creation has been the weak spot in the U.S. economic recovery and investors believe the Fed is unlikely to raise interest rates until the employment market has perked up. Low rates of return on dollar deposits have played a key role in the dollar's recent downtrend as investors have sought higher- yielding assets elsewhere.
YEN LOSES STEAM
The yen paused on Friday after sharp gains earlier in the week, prompting speculation Japanese investors were buying foreign assets at the start of the fiscal year. But many analysts said it was just a matter of time before Japan's currency made further gains.
"The yen is just pausing for breath," said David Mann, currency strategist at Standard Chartered. "We still see it going higher in the coming months."
Given improving economic fundamentals, large foreign buying of Japanese stocks, and the Japanese authorities apparent scaling back of currency intervention, some analysts say the yen could soon challenge the 100 per dollar mark.
Japan's top financial diplomat, Zembei Mizoguchi, said on Friday that Tokyo's stance on foreign exchange was unchanged, and that it would continue to act as needed in the market.
The Nikkei average gained more than one percent, as foreign investors continued to pour capital into Japanese assets.
The latest data from the Finance Ministry on weekly capital flows shows net purchases of Japanese stocks by foreigners from March 1 to March 26 totaled 2.58 trillion yen ($24.88 billion), which would likely make the month of March a record.
In the euro zone, industry producer prices rose 0.1 percent on the month and were unchanged on the year in February.
The single currency received a boost on Thursday after European Central Bank President Jean-Claude Trichet indicated the bank was in no hurry to cut rates, wrong-footing many traders who had expected him to signal a rate cut in coming months.
Mortgage rates rise 0.12 points
By Jeannine Aversa, Associated Press
WASHINGTON — Mortgage rates rose this week, but they are still lower than a year ago and should continue to spur home sales.
The average rate on 30-year, fixed-rate mortgages rose to 5.52% this week, from 5.40% last week, mortgage giant Freddie Mac reported Thursday in its weekly survey of mortgage rates.
In mid-June last year, rates on 30-year mortgages sank to 5.21%, lowest level on record. Rates have bounced around since then.
A year ago, 30-year mortgages averaged 5.79%, 15-year mortgages 5.06% and one-year adjustable mortgages 3.82%.
For 15-year, fixed-rate mortgages, a popular option for refinancing, rates this week rose to 4.84% from 4.70% last week.
Rates for one-year adjustable mortgages moved up this week to 3.46%, compared with 3.36% last week, lowest since Freddie Mac began tracking rates on one-year ARMs in 1984.
"Even with rates slightly higher, the housing industry will continue to be an active, solid sector of the economy going into the spring buying season," said Frank Nothaft, Freddie Mac's chief economist.
"We don't foresee any major slowdown in the housing market this year," he said. "Quite the contrary, we are confident 2004 will be another banner year for home sales."
Low mortgage rates propelled home sales to record highs in 2003.
The nationwide averages for mortgage rates do not include add-on fees known as points. Each loan type carried an average fee of 0.6 of a percentage point this week. That's 0.6% of the loan amount.
Federal Reserve member Donald Kohn, in a speech Thursday, raised some concern about home prices, which have continued to climb. "The odds have risen that these prices could be out of line with fundamentals," he said. But, "We still cannot be very confident about whether a significant misalignment exists."
In another report, the Mortgage Bankers Association said refinancing accounted for 62.8% of all mortgage applications last week. That was down from 63.1% the previous week.
Overshadowing News - Pension crisis comes to head with vote Friday
By Marilyn Adams and Sue Kirchhoff, USA TODAY
WASHINGTON — Thousands of U.S. corporations are in limbo as Congress battles over a bill for pension-plan relief, and an April 15 payment deadline looms.
The House will vote Friday on a bill to reduce pension contributions for companies with traditional plans by $80 billion in the next two years. But senior Senate Democrats vow to kill the measure in that chamber, saying it shortchanges some union plans.
The jockeying comes as the House prepares to adjourn for two weeks and companies face an April 15 deadline for quarterly pension contributions. Payments will be billions of dollars higher if the bill is not passed by then.
"We need to see this pension crisis resolved," says David Castelveter, spokesman for US Airways, which exited bankruptcy court a year ago but is still struggling.
The bill would provide $1.8 billion in extra relief for struggling airlines and steel firms, which have some of the most underfunded plans. Pension plans at seven of the biggest airlines are underfunded by $20 billion.
The Capitol Hill rift comes at a delicate time for UAL, parent of United Airlines, which is in bankruptcy reorganization. Its pending application for a $1.6 billion federally guaranteed loan to exit bankruptcy hinges in part on pension relief. Failure to get relief could force UAL to seek costlier private financing or consider terminating some of its plans.
Union leaders raised alarms. "Employees shouldn't be forced to pay the price of a legislative turf war," said Frank Larkin, spokesman for the International Association of Machinists. The IAM represents 90,000 workers at airlines with traditional pensions.
"We've done all that we can possibly do," says Rep. John Boehner, R-Ohio, chairman of the House Education and the Workforce Committee. He called it "unfortunate" that Democrats insist on relief for multi-employer plans in unionized industries like trucking.
Sen. Edward Kennedy, D-Mass., says he would block the measure, complaining the White House was helping corporations while ignoring union workers.
The United Auto Workers asked House members to support the bill, however, saying it would help struggling manufacturers. Traditional pension plans are insured by the federal Pension Benefit Guaranty Corp. The agency warned last fall that single-employer pension plans were underfunded by $350 billion because of stock market losses and low interest rates, which increase plan shortfalls.
Adams reported from Miami.
Wake Up Call -Pension crisis comes to head with vote Friday
By Marilyn Adams and Sue Kirchhoff, USA TODAY
WASHINGTON — Thousands of U.S. corporations are in limbo as Congress battles over a bill for pension-plan relief, and an April 15 payment deadline looms.
The House will vote Friday on a bill to reduce pension contributions for companies with traditional plans by $80 billion in the next two years. But senior Senate Democrats vow to kill the measure in that chamber, saying it shortchanges some union plans.
The jockeying comes as the House prepares to adjourn for two weeks and companies face an April 15 deadline for quarterly pension contributions. Payments will be billions of dollars higher if the bill is not passed by then.
"We need to see this pension crisis resolved," says David Castelveter, spokesman for US Airways, which exited bankruptcy court a year ago but is still struggling.
The bill would provide $1.8 billion in extra relief for struggling airlines and steel firms, which have some of the most underfunded plans. Pension plans at seven of the biggest airlines are underfunded by $20 billion.
The Capitol Hill rift comes at a delicate time for UAL, parent of United Airlines, which is in bankruptcy reorganization. Its pending application for a $1.6 billion federally guaranteed loan to exit bankruptcy hinges in part on pension relief. Failure to get relief could force UAL to seek costlier private financing or consider terminating some of its plans.
Union leaders raised alarms. "Employees shouldn't be forced to pay the price of a legislative turf war," said Frank Larkin, spokesman for the International Association of Machinists. The IAM represents 90,000 workers at airlines with traditional pensions.
"We've done all that we can possibly do," says Rep. John Boehner, R-Ohio, chairman of the House Education and the Workforce Committee. He called it "unfortunate" that Democrats insist on relief for multi-employer plans in unionized industries like trucking.
Sen. Edward Kennedy, D-Mass., says he would block the measure, complaining the White House was helping corporations while ignoring union workers.
The United Auto Workers asked House members to support the bill, however, saying it would help struggling manufacturers. Traditional pension plans are insured by the federal Pension Benefit Guaranty Corp. The agency warned last fall that single-employer pension plans were underfunded by $350 billion because of stock market losses and low interest rates, which increase plan shortfalls.
Adams reported from Miami.
Ditto Dude, can't find my pole.
Pension crisis comes to head with vote Friday
By Marilyn Adams and Sue Kirchhoff, USA TODAY
WASHINGTON — Thousands of U.S. corporations are in limbo as Congress battles over a bill for pension-plan relief, and an April 15 payment deadline looms.
The House will vote Friday on a bill to reduce pension contributions for companies with traditional plans by $80 billion in the next two years. But senior Senate Democrats vow to kill the measure in that chamber, saying it shortchanges some union plans.
The jockeying comes as the House prepares to adjourn for two weeks and companies face an April 15 deadline for quarterly pension contributions. Payments will be billions of dollars higher if the bill is not passed by then.
"We need to see this pension crisis resolved," says David Castelveter, spokesman for US Airways, which exited bankruptcy court a year ago but is still struggling.
The bill would provide $1.8 billion in extra relief for struggling airlines and steel firms, which have some of the most underfunded plans. Pension plans at seven of the biggest airlines are underfunded by $20 billion.
The Capitol Hill rift comes at a delicate time for UAL, parent of United Airlines, which is in bankruptcy reorganization. Its pending application for a $1.6 billion federally guaranteed loan to exit bankruptcy hinges in part on pension relief. Failure to get relief could force UAL to seek costlier private financing or consider terminating some of its plans.
Union leaders raised alarms. "Employees shouldn't be forced to pay the price of a legislative turf war," said Frank Larkin, spokesman for the International Association of Machinists. The IAM represents 90,000 workers at airlines with traditional pensions.
"We've done all that we can possibly do," says Rep. John Boehner, R-Ohio, chairman of the House Education and the Workforce Committee. He called it "unfortunate" that Democrats insist on relief for multi-employer plans in unionized industries like trucking.
Sen. Edward Kennedy, D-Mass., says he would block the measure, complaining the White House was helping corporations while ignoring union workers.
The United Auto Workers asked House members to support the bill, however, saying it would help struggling manufacturers. Traditional pension plans are insured by the federal Pension Benefit Guaranty Corp. The agency warned last fall that single-employer pension plans were underfunded by $350 billion because of stock market losses and low interest rates, which increase plan shortfalls.
Adams reported from Miami.
Ok, where's my darn fishing pole?
I thought I knew you, what did I know? I'm looking through you, you're not the same!
Ok, where's my darn fishing pole?
I thought I knew you, what did I know? I'm looking through you, you're not the same!
New Movie About the Bush Cabinet
First Capital, Inc. Provides Update on Stock Repurchase Program
Thursday February 5, 2:27 pm ET
CORYDON, Ind.--(BUSINESS WIRE)--Feb. 5, 2004--First Capital Inc. (Nasdaq:FCAP - News), the holding company for First Harrison Bank, announced today an update of its ongoing program to repurchase up to 345,000 shares of its outstanding common stock.
As of the close of business on February 4, 2004, the Company had repurchased 18,639 shares at a weighted average price of $16.92 per share. The Company expects to repurchase the remaining shares in the coming months depending on market conditions and other factors. At December 31, 2003, the Company had 2,843,839 shares of common stock outstanding.
As is the case with the shares repurchased to date, any future repurchases will be effected through broker-assisted open market purchases, unsolicited privately negotiated transactions, or in such other manner as will comply with applicable federal securities laws and regulations.
First Harrison Bank currently has twelve offices in the Indiana communities of Corydon, Crandall, Georgetown, Greenville, Floyds Knobs, Hardinsburg, Palmyra, New Albany, New Salisbury and Jeffersonville. Access to First Harrison Bank accounts, including online banking and electronic bill payments, is available anywhere with Internet access through the Bank's website at www.firstharrison.com. First Harrison Financial Services, a subsidiary of the Bank, offers a full array of property, casualty and life insurance products, as well as non-FDIC insured investments to compliment the Bank's offering of traditional banking products and services.
This press release may contain forward-looking statements within the meaning of the federal securities laws. These statements are not historical facts, rather statements based on the Company's current expectations regarding its business strategies and their intended results and its future performance. Forward-looking statements are preceded by terms such as "expects," "believes," "anticipates," "intends" and similar expressions.
Forward-looking statements are not guarantees of future performance. Numerous risks and uncertainties could cause or contribute to the Company's actual results, performance and achievements to be materially different from those expressed or implied by the forward-looking statements. Factors that may cause or contribute to these differences include, without limitation, general economic conditions, including changes in market interest rates and changes in monetary and fiscal policies of the federal government; legislative and regulatory changes; and other factors disclosed periodically in the Company's filings with the Securities and Exchange Commission.
Because of the risks and uncertainties inherent in forward-looking statements, readers are cautioned not to place undue reliance on them, whether included in this press release or made elsewhere from time to time by the Company or on its behalf. Except as may be required by applicable law or regulation, the Company assumes no obligation to update any forward-looking statements.
--------------------------------------------------------------------------------
Contact:
First Capital, Inc., Corydon
M. Chris Frederick, 812-738-2198, ext. 234
--------------------------------------------------------------------------------
Source: First Capital, Inc.
PRICES
Date Open High Low Close Volume Adj Close*
1-Apr-04 22.50 22.50 22.50 22.50 0 22.50
31-Mar-04 22.50 22.50 22.50 22.50 0 22.50
30-Mar-04 22.50 22.50 22.50 22.50 300 22.50
29-Mar-04 22.07 22.07 22.07 22.07 0 22.07
26-Mar-04 22.07 22.07 22.07 22.07 0 22.07
25-Mar-04 22.07 22.07 22.07 22.07 0 22.07
24-Mar-04 22.07 22.07 22.07 22.07 0 22.07
23-Mar-04 22.07 22.07 22.07 22.07 0 22.07
22-Mar-04 22.07 22.07 22.07 22.07 100 22.07
19-Mar-04 23.35 23.35 23.35 23.35 0 23.35
18-Mar-04 23.35 23.35 23.35 23.35 0 23.35
17-Mar-04 23.35 23.35 23.35 23.35 0 23.35
16-Mar-04 23.35 23.35 23.35 23.35 0 23.35
15-Mar-04 23.35 23.35 23.35 23.35 0 23.35
15-Mar-04 $ 0.15 Cash Dividend
12-Mar-04 23.50 23.50 23.50 23.50 100 23.35
11-Mar-04 24.00 24.00 24.00 24.00 0 23.85
10-Mar-04 24.00 24.00 24.00 24.00 0 23.85
9-Mar-04 24.00 24.00 24.00 24.00 200 23.85
8-Mar-04 22.00 22.00 22.00 22.00 300 21.86
5-Mar-04 22.04 22.04 22.04 22.04 0 21.90
4-Mar-04 22.04 22.04 22.04 22.04 0 21.90
3-Mar-04 23.00 23.00 22.04 22.04 500 21.90
2-Mar-04 23.27 23.27 23.27 23.27 0 23.12
1-Mar-04 23.27 23.27 23.27 23.27 0 23.12
27-Feb-04 24.00 24.00 23.27 23.27 400 23.12
26-Feb-04 24.00 24.00 24.00 24.00 0 23.85
25-Feb-04 24.00 24.00 24.00 24.00 0 23.85
24-Feb-04 24.00 24.00 24.00 24.00 0 23.85
23-Feb-04 23.00 24.00 23.00 24.00 700 23.85
20-Feb-04 23.00 23.00 23.00 23.00 0 22.85
19-Feb-04 22.00 23.00 21.52 23.00 1,600 22.85
18-Feb-04 22.00 22.00 22.00 22.00 0 21.86
17-Feb-04 22.00 22.00 22.00 22.00 0 21.86
13-Feb-04 22.00 22.00 22.00 22.00 100 21.86
12-Feb-04 21.23 21.23 21.20 21.20 300 21.06
11-Feb-04 20.77 23.93 20.77 23.93 1,500 23.78
10-Feb-04 22.13 22.13 22.13 22.13 200 21.99
9-Feb-04 22.50 22.50 22.50 22.50 0 22.36
6-Feb-04 22.50 22.50 22.50 22.50 0 22.36
5-Feb-04 22.50 22.50 22.50 22.50 0 22.36
4-Feb-04 23.19 23.19 22.50 22.50 500 22.36
3-Feb-04 24.50 24.50 24.00 24.00 1,700 23.85
2-Feb-04 24.00 25.00 24.00 25.00 3,000 24.84
30-Jan-04 21.37 21.37 21.37 21.37 0 21.23
29-Jan-04 21.37 21.37 21.37 21.37 500 21.23
28-Jan-04 22.10 22.10 22.10 22.10 0 21.96
27-Jan-04 24.00 24.00 22.10 22.10 1,800 21.96
26-Jan-04 24.00 24.00 24.00 24.00 0 23.85
23-Jan-04 24.00 24.00 24.00 24.00 0 23.85
22-Jan-04 24.00 24.00 24.00 24.00 100 23.85
21-Jan-04 22.00 22.00 22.00 22.00 0 21.86
20-Jan-04 22.00 22.00 22.00 22.00 0 21.86
16-Jan-04 22.00 22.00 22.00 22.00 0 21.86
15-Jan-04 22.00 22.00 22.00 22.00 0 21.86
14-Jan-04 22.00 22.00 22.00 22.00 0 21.86
13-Jan-04 22.20 22.50 22.00 22.00 1,900 21.86
12-Jan-04 22.60 22.60 22.60 22.60 0 22.46
9-Jan-04 22.79 22.79 22.39 22.60 500 22.46
8-Jan-04 22.00 22.00 22.00 22.00 200 21.86
7-Jan-04 24.34 24.50 24.34 24.45 500 24.29
6-Jan-04 21.00 25.00 21.00 24.47 1,100 24.31
5-Jan-04 19.70 19.70 19.70 19.70 0 19.57
2-Jan-04 20.68 20.68 19.58 19.70 900 19.57
31-Dec-03 21.62 21.75 21.00 21.00 1,800 20.87
30-Dec-03 21.00 21.00 21.00 21.00 0 20.87
29-Dec-03 21.00 21.00 21.00 21.00 0 20.87
"collateral dependant" loans /$ 12
by: jtsummer82 02/27/04 04:57 pm
Msg: 99 of 99
Yeh, the ex President sold at 12.50 according to the SEC filing. You can bet he knew what a mess the place was in.
They really messed up.
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=7084009&tid=sobi&sid=708...
Re: jeffry gendell
by: fetzervalve23 02/25/04 05:18 pm
Msg: 97 of 99
Here's his information from a recent SEC filing. According to the filing, he's a fund manager that owns about 200 stocks, virtually all of them in the financial services area. SOBI is a very small part of his portfolio, less than 1% looks like. You can see for yourself by going to the SEC website and searching.
Name: Tontine Financial Partners LP
----------------------------------------------------------------------
Address: 55 Railroad Avenue
----------------------------------------------------------------------
3rd Floor
----------------------------------------------------------------------
Greenwich, CT 06830
http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=7084009&tid=sobi&sid=708...
The significant losses incurred on repossessed and other assets during the three and six months ended December 31, 2003 resulted from downward adjustments in the value of these assets following updated appraisals of collateral securing certain of the unauthorized and fraudulent loans which the Company was able to complete during the quarter ended December 31, 2003. Certain of these appraisals updated previous appraisals obtained from law enforcement agencies for the properties in their possession. Construction expenses were also incurred in excess of previous estimates in order to make certain properties more saleable. As of December 31, 2003, there were assets totaling $2.16 million under the control of the U.S. Government. The Company's ability to sell and obtain the proceeds of these assets is dependent on the successful prosecution of certain individuals involved in the unauthorized and fraudulent loans matter, as well as any delays that may occur in this process. To the extent the prosecutions are unsuccessful, these assets will be returned to the individuals from whom they were seized, potentially delaying the Company's recovery on these assets and possibly reducing the recovery amount.
http://biz.yahoo.com/e/040217/sobi10qsb.html
Investor Suit Accuses Sonus Networks, Inc. of Stock Fraud, Berman DeValerio Pease Tabacco Burt & Pucillo Announces -- SONS
Wednesday March 31, 1:24 pm ET
BOSTON, March 31, 2004 (PRIMEZONE) -- An investor sued Sonus Networks, Inc. (NasdaqNM:SONS - News) today, claiming the telecommunications equipment provider and two top officers issued misleading financial results.
Berman DeValerio Pease Tabacco Burt & Pucillo (http://www.bermanesq.com) filed the complaint in the U.S. District Court for the District of Massachusetts on behalf of all investors who bought Sonus Networks common stock from May 12, 2003, through and including March 26, 2004 (the ``Class Period''). The action extends the Class Period alleged in a complaint filed against the company on February 13, 2004.
Berman DeValerio has represented investors in class actions since 1982. To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/SonusNetworks-Cplt.pdf.
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The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission (SEC) Rule 10b-5.
The complaint names as defendants the company; its chief executive officer, Hassan Ahmed; and its chief financial officer, Stephen J. Nill.
According to the complaint, the defendants issued numerous statements during the Class Period that either misrepresented or failed to properly disclose the true financial condition of the company, causing the company's stock to trade at artificially high prices.
Specifically, the defendants are accused of improperly recognizing revenue and violating Generally Accepted Accounting Principles (GAAP) governing the timing of revenue recognition.
After the markets closed on February 11, 2004, Sonus Networks announced a year-end audit had found ``certain issues, practices and actions of certain employees relating to both the timing of revenue recognized from certain customer transactions and to certain other financial statement accounts'' that could affect the company's results for 2003 and prior periods. Prior to disclosing these adverse facts, Sonus Networks completed a $126 million public offering, and company insiders sold approximately $2 million of their personally held shares to the unsuspecting public.
Investors' reaction was swift and severe. The following day, on February 12, 2004, Sonus Networks' stock price dropped approximately 19% from the previous day's close.
Then, before the markets opened on March 29, 2004, Sonus Networks announced a delay in the filing of its amended annual report for fiscal year 2003, which the company stated could result in a delisting of its stock from NASDAQ. Sonus Networks further reported that it expects that it will also need to restate its financial results for fiscal year 2002 and announced that it is considering expanding its ongoing accounting review to include additional prior periods.
In response to this news, Sonus Networks stock fell an additional 14% from $4.56 on March 26, 2004 to close at $3.92 on March 29, 2004.
If you purchased Sonus Networks, Inc. common stock during the period of May 12, 2003, through and including March 26, 2004, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Nicole R. Starr, Esq.
Michael T. Matraia, Esq.
One Liberty Square
Boston, MA 02109
(800) 516-9926
law@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than April 12, 2004. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=497. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 35 attorneys in Boston, San Francisco, and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca
--------------------------------------------------------------------------------
Source: Berman DeValerio Pease Tabacco Burt & Pucillo
Sobieski Bancorp Reports $2.8 Million Net Loss for Quarter Ended December 31, 2003, Resulting in Sobieski Bank Being Undercapitalized
Tuesday February 17, 7:02 pm ET
SOUTH BEND, Ind.--(BUSINESS WIRE)--Feb. 17, 2004--Sobieski Bancorp, Inc. (the "Company") (Nasdaq:SOBI - News), parent company of Sobieski Bank (the "Bank"), reported a $2.8 million net loss for the quarter ended December 31, 2003, or ($4.35) per basic and diluted share, compared to net income of $738,000 for the quarter ended December 31, 2002, or $1.14 per basic and diluted share. The Company reported a $3.7 million net loss for the six months ended December 31, 2003, or ($5.69) per share, compared to net income of $866,000 for the six months ended December 31, 2002, or $1.34 per basic and diluted share. These results are discussed briefly below and in more detail in the Company's Quarterly Report on Form 10-QSB for the quarter ended December 31, 2003, filed today with the Securities and Exchange Commission. A copy of the Form 10-QSB can be obtained from the SEC's website at www.sec.gov.
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The net losses were due primarily to the establishment of valuation allowances for deferred tax assets of $1.1 million, increases in losses on repossessed property and other assets, decreases in net interest income, decreases in gains on sales of loans and securities and decreases in insurance benefits.
Valuation allowances for deferred tax assets of $1.1 million were established for the three and six months ended December 31, 2003, compared to income tax expense of $480,000 and $561,000 for the same periods in the prior year. The Company determined that these valuation allowances were required due to the Company's continuing reported net losses and projected future losses making the realization of the benefits of the deferred tax assets unlikely.
Losses on repossessed property and other assets increased to $800,000 and $822,000 for the three and six months ended December 31, 2003, compared to $230,000 and $266,000 for the three and six months ended December 31, 2002, due primarily to asset writedowns based on updated appraisals obtained during the quarter ended December 31, 2003 stemming from the unauthorized and fraudulent loans matter.
Net interest income was $216,000 for the three-month period ended December 31, 2003, as compared to $699,000 for the same period in the prior year. For the six months ended December 31, 2003, net interest income was $529,000, as compared to $1.53 million for the same period in the prior year. The three-month decrease of $483,000 was primarily the result of decreased interest from loans of $586,000 along with lower taxable security and interest bearing deposit income, partially offset by a decline in interest expense. In addition, the Company charged off $160,000 of accrued interest on loans placed on nonaccrual status. The six-month decrease of $1.0 million was primarily the result of decreased interest on loans of $1.17 million and decreased interest on taxable securities of $269,000 partially offset by a decline in interest expense. Lower market interest rates and reduced average outstanding balances of loans were both primarily responsible for the lower interest income in the 2003 periods compared to the 2002 periods. The reduction in the average balance of loans was due to an increase of loan prepayments in the 2003 periods compared with the 2002 periods and the impact of the moratorium on new commercial loans, imposed by the OTS in October 2002, as well as the Bank's Supervisory Agreement entered into with the OTS in May 2003.
Loan sale gains decreased from $265,000 and $393,000 for the three and six months ended December 31, 2002 to $11,000 and $45,000 for the three and six months ended December 31, 2003, reflecting the decline in the Bank's mortgage banking activities. Gain on sale of securities increased from $7,000 for the three and six months ended December 31, 2002 to $79,000 for the three and six months ended December 31, 2003, as a result of sales during the quarter ended December 31, 2003 of three held to maturity securities for a gain of $34,000 and the sale of three securities classified as available for sale for a gain of $45,000.
There were no insurance claims received in 2003 compared with $1.53 million for both the three and six months ended December 31, 2002. The insurance benefits received during the 2002 periods represented bond claims stemming from the previously announced unauthorized and fraudulent loans matter. No future insurance benefits are expected from this matter.
Also discussed in the Form 10-QSB is the change in Sobieski Bank's status under the prompt corrective action regulations of the Office of Thrift Supervision (the "OTS") to "undercapitalized" as of December 31, 2003. The Bank's ratio of Tier 1 capital to total assets was 3.89% as of December 31, 2003, below the 4.00% ratio required for "adequately capitalized" status. As a result of the Bank's undercapitalized status, the Bank must submit a capital restoration plan to the OTS and may become subject to other operational restrictions.
In addition, as discussed in the Form 10-QSB, on February 11, 2004, the Company received a written request by the OTS that the Company consent to a cease and desist order. The OTS believes the Company has engaged in unsafe and unsound practices because the Company is unprofitable, no longer has the ability to support the Bank, and could have difficulties paying its own expenses, thereby becoming a burden to the Bank. The consent, which must be signed by a majority of the Company's directors, would, among other things: (i) require that no later than February 29, 2004, the Company's Board of Directors develop and submit to the OTS for its review and non-objection, a plan (referred to below as the "restoration plan") detailing the steps the Board is taking to restore the Company to a safe and sound condition; (ii) require the Board to, by March 15, 2004, develop and submit to the OTS a detailed quarterly cash flow projection for the remainder of fiscal 2004 and fiscal 2005; (iii) prohibit the Company from paying any dividends without the written approval of the OTS (the Company announced in December 2003 that its Board of Directors voted to suspend the Company's regular quarterly cash dividend indefinitely); and (iv) provide that the Company should not borrow any funds without the prior written approval of the OTS.
The Company expects that its directors will approve the consent to the order by February 27, 2004, as requested by the OTS.
Sobieski Bank is one of South Bend's oldest companies. At December 31, 2003, Sobieski Bancorp, Inc. had consolidated assets of $110.9 million and stockholders' equity of $5.3 million. The Company is headquartered at 2930 W. Cleveland Road, South Bend, Indiana.
Forward-Looking Statements
When used in this press release and in the Company's filings with the Securities and Exchange Commission, in other press releases or other public shareholder communications, or in oral statements made with the approval of an authorized executive officer, the words or phrases "believe," "will likely result," "expects," "are expected to, " "will continue," "is anticipated," "estimate," "project," "plans" or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date made. These statements may relate to the Company's future financial performance, strategic plans or objectives or other financial items. By their nature, these statements are subject to numerous uncertainties that could cause actual results to differ materially from those anticipated in the statements.
Important factors that could cause actual results to differ materially from the results anticipated or projected include, but are not limited to, the following: (1) the credit risks of lending activities, including changes in the level and direction of loan delinquencies and charge-offs; (2) changes in management's estimate of the adequacy of the allowance for loan losses and requirements by the OTS that additional provisions for loan losses be made; (3) changes in the fair market valuation of other real estate owned and other assets, including collateral securing the unauthorized and fraudulent loans; (4) the Company's ability to sell and obtain the proceeds of assets currently being held by the U.S. Government pending the successful prosecution of certain individuals involved in the unauthorized and fraudulent loans matter, and any delays that may occur in the process, as well as the possibility that these assets will be returned to the individuals from whom they were seized to the extent prosecutions are unsuccessful, thereby potentially delaying the Company's recovery on these assets and possibly reducing the recovery amount; (5) the restrictions imposed on the Bank's business activities by the Supervisory Agreement with the OTS, including the restrictions under that agreement on the Bank's commercial lending activities and asset growth, and additional restrictions that may be imposed on the Bank as a result of its undercapitalized status under the prompt corrective action regulations; (6) the restrictions to be imposed on the Company under the cease and desist order to which the OTS has requested the Company's consent, as well as the possibility of future enforcement actions by the OTS against the Company and/or the Bank; (7) competitive pressures among depository institutions; (8) interest rate movements and their impact on customer behavior and the Company's net interest margin; (9) the impact of repricing and competitors' pricing initiatives on loan and deposit products; (10) the Company's ability to adapt successfully to technological changes to meet customers' needs and developments in the marketplace; (11) the Company's ability to access cost-effective funding; (12) changes in financial markets and general economic conditions; (13) new legislation or regulatory changes; and (14) changes in accounting principles, policies or guidelines.
The Company does not undertake any obligation to update any forward-looking statement to reflect circumstances or events that occur after the date on which the forward-looking statement is made.
--------------------------------------------------------------------------------
Contact:
Sobieski Bancorp, Inc.
Steven C. Watts, 574-271-8300
Zwerling, Schachter & Zwerling, LLP Announces Class Action on Behalf of Purchasers of Sonus Networks, Inc. Common Stock Alleging Violations Of Federal Securities Laws
Wednesday March 31, 1:53 pm ET
NEW YORK, March 31 /PRNewswire/ -- Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter") announced today that a class action lawsuit was filed in the United States District Court for the District of Massachusetts, on behalf of all persons and entities who purchased the common stock of Sonus Networks, Inc. ("Sonus" or the "Company") (Nasdaq: SONSE - News) between June 3, 2003 and February 11, 2004, inclusive (the "Class Period").
ADVERTISEMENT
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the investing community during the Class Period thereby artificially inflating the price of Sonus common stock. As alleged in the complaint, throughout the Class Period, defendants issued numerous statements to the market concerning the Company's financial results, which failed to disclosed and/or misrepresented the following adverse facts, among others: (a) that defendants had improperly and untimely recognized revenue on certain of the Company's customer transactions; (b) that defendants violated Generally Accepted Accounting Principles and the Company's own internal policies regarding the timing of revenue recognition; and (c) as a result of the foregoing, the Company's revenues, net income and earnings per share published during the Class Period were materially false and misleading.
On February 11, 2004, after the close of regular trading, Sonus announced that the Company had identified certain issues, practices and actions of its employees relating to both the timing of revenue recognized and other financial statement items, which may affect the Company's 2003 financial statements and possibly financial statements for prior periods. Prior to disclosing these adverse facts, Sonus completed a $126.14 million public offering, and Sonus insiders sold approximately $2 million of their personally held shares to the public. On February 12, 2004, when the market opened for trading, shares of Sonus stock fell as low as $5.02 per share, a decline of $1.67 per share, or approximately 25%
If you purchased Sonus common stock between June 3, 2003 and February 11, 2004 or on Sonus' public offering completed September 23, 2003 (the "Class"), you may apply to serve as lead plaintiff on behalf of the Class. The lead plaintiff is responsible for overseeing the prosecution of the action and ensuring that the interests of the Class are protected. You have until April 12, 2004 to apply for lead plaintiff status in the action.
You may apply to be appointed lead plaintiff through Zwerling Schachter by contacting the individuals set forth below. Zwerling Schachter concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts and has offices in New York City, Westbury, New York, and Seattle, Washington. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.
If you have any questions regarding your rights and interests pertaining to the prosecution of this securities litigation matter or would like to consider serving as lead plaintiff, you may contact Shaye J. Fuchs, Esq. and Jayne Nykolyn at 1-800-721-3900 or by e-mail at sfuchs@zsz.com and jnykolyn@zsz.com.
--------------------------------------------------------------------------------
Source: Zwerling, Schachter & Zwerling, LLP
Real Crooks Don't Show Up In Court
Rock Hill Bank & Trust Wins Lawsuit, Damages
By Heather Vogell, The Charlotte Observer, N.C. Knight Ridder/Tribune Business News
Mar. 19--ROCK HILL, N.C. - A federal judge has ordered two men to pay Rock Hill Bank & Trust $24 million for duping bank customers in a high-yield investment scam.
But the ruling in late February may be a hollow victory.
For one, a larger institution has swallowed the troubled community bank. And second, neither Donald Hughes nor Douglas Smith showed up in U.S. District Court in Columbia to defend themselves, calling into question whether the judgment will ever be collected.
During its six years in business, publicly traded RHBT endured two major, unrelated scandals that landed two officers in prison.
RHBT continued to pursue legal action after South Financial Group of Greenville, S.C., bought the bank's operations at a bargain-basement price in 2002.
The sale followed the arrest of former bank President Rob Herron on charges stemming from a separate mortgage fraud scandal. A former Rock Hill city councilman, Herron pleaded guilty to one bank fraud count and was sentenced in February to 15 months in prison.
U.S. Chief Judge Joseph Anderson's ruling concerned a civil lawsuit in which the bank alleged that Hughes, Smith and former bank trust officer Robert Yoffie tricked bank customers out of $9.5 million.
The suit said that Hughes and Smith told the customers they would make a 150 percent profit through "risk-free" trades on the European financial markets. Hughes claimed a portion of the profit would also go to humanitarian projects in Venezuela and other poor countries, according to the suit.
But after the customers deposited funds in an RHBT trust account under Yoffie's watch, the money was wired to Italy and then to accounts controlled by Hughes and Smith, the suit alleges.
The customers sued the bank after trying and failing to get their money back.
That action was settled for $7.6 million in 2001 when the bank agreed to compensate customers with cash from its insurer. The bank then sued Yoffie, Hughes, Smith and three companies associated with them to recoup the money.
Anderson's ruling was a default judgment, which judges can make when defendants do not put forth a defense.
Anderson called the defendants' conduct "egregious" and cited anti-racketeering laws in his decision to award damages amounting to three times what the bank said was lost, plus court fees and interest.
RHBT attorney Steven McKelvey of Columbia said Thursday the corporation's next step is to try to collect, though he said he isn't sure where either defendant is living.
"We will pursue the avenues available to us," he said.
He said he did not know whether a provision exists for shareholders who lost money during the bank sale to share the judgment if it is collected.
An official said Thursday the FBI continues to investigate the trust department scandal.
The suit says Hughes lives in Florida and Smith in the Bahamas. Neither could be reached.
In a 2002 letter to the court, Smith said he was a Canadian and could not enter the United States "due to an INS restriction." He said he expected to "be cleared of any wrongdoing and liability," and intended to appeal "any default conviction."
Yoffie pleaded guilty in 2002 to one count of misapplying bank funds for an unrelated incident in which he improperly released collateral securing a $200,000 loan. He served a year in prison and was released in August. His lawyers said the charge was unrelated to those leveled in the civil suit.
In early February, RHBT agreed to dismiss Yoffie from the civil suit against Hughes and Smith in exchange for his cooperation in future legal action.
Richard Fennell, Yoffie's Charlotte attorney, said Thursday: "We're just glad to put it behind us."
Rock Hill bank wins $24 million in lawsuit
The Associated Press
ROCK HILL - Two men have been ordered to pay Rock Hill Bank and Trust $24 million for duping customers in an investment scam.
U.S. District Judge Joe Anderson's ruling, issued late last month, involved a civil lawsuit brought by the bank. It alleged Donald Hughes, Douglas Smith and former bank trust officer Robert Yoffie tricked bank customers out of $9.5 million.
However, it's doubtful that the money will ever be paid. Anderson's ruling came after Hughes and Smith did not appear in court to defend themselves.
The lawsuit claims Hughes and Smith lured customers with assurances of a 150 percent profit through "risk-free" trades on the European financial markets and promises that part of the profits would aid humanitarian projects in Venezuela and other poor countries. The money ended up in accounts Hughes and Smith controlled, according to the suit.
Customers sued the bank when they couldn't recover their money. The bank settled with them in 2001 for $7.6 million and then sued Yoffie, Hughes, Smith and three companies associated with them to recoup the money.
Last month, the bank agreed to dismiss Yoffie from the civil suit in exchange for his cooperation in future legal action.
Yoffie pleaded guilty in 2002 to one count of misapplying bank funds for an unrelated incident in which he improperly released collateral securing a $200,000 loan. He served a year in prison and was released in August.
His lawyers said the charge was unrelated to those leveled in the civil suit.
"We're just glad to put it behind us," Yoffie's attorney Richard Fennell said.
Rock Hill Bank and Trust lawyer Steven McKelvey said the corporation's next step is to try to collect though he isn't sure where either defendant is living.
"We will pursue the avenues available to us," he said.
The suit says Hughes lives in Florida and Smith in the Bahamas.
Rock Hill Bank and Trust endured two major unrelated scandals before South Financial Group of Greenville bought it at a bargain price in 2002.
http://www.investorshub.com/boards/read_msg.asp?message_id=2751472
Naked Shorts on Earth
Published: 3/23/2004 by Tastes Like Chicken
Greetings, cuz!
No, I have no pictures of Martha behind bars, and I am shocked that you would even want to see such a thing!
Yes, I know what a floorless convertible is.
No it is not a rusted out 1958 Chevrolet that covers you with water from under the dashboard if you drive through a puddle.
Once again, these stock market people have their own little language. I think they obfuscate things on purpose, but hey, what do I know?
Grab a snack and relax, and let’s start at the beginning.
Don’t skip over any of this, OK? Your girlfriend gets naked somewhere in the middle, and you don’t want to miss that, right?
A “floorless convertible” is a kind of bond.
A bond is a “note” or “debt instrument” issued by a company in exchange for money.
The company borrows money from the person they issue the bond to, in exchange for a promise to pay that money back, usually with interest.
Yes, it’s just like an “IOU”. The company owes the bondholder money.
The purchaser of the bond receives principal or interest payments (or both). Some bonds are “secured” by assets of the company, and some are not.
A secured bond allows the holder of that bond to lay claim to the assets of the company if the company fails to meet its obligation to pay the promised principal or interest on the bond.
A debenture is an unsecured bond.
Unlike a secured bond, a debenture is not secured by company assets, and the holder is not entitled to claim any assets of the company if the company defaults on the note.
One particular debenture has a very creative feature attached to it.
A convertible debenture means the bond can be changed, or “converted” from one form to another form. The most common form of change is conversion into common stock.
There are advantages and disadvantages to the company when it issues a convertible debenture. Advantages include the ability to raise money without issuing additional stock (thus avoiding immediate dilution of the stockholder’s earnings per share), and the ability to issue the debenture at a lower interest rate than another form of bond, because the purchaser will accept a lower interest rate for the privilege of converting the debenture into common stock at some point in the future.
Disadvantages to the company include a higher taxable income, dilution of stockholder earnings, and a potential shift in specific shareholder’s control of stock (and their control of the company) when the conversion takes place.
Conversion takes place according to the “conversion ratio”; debenture value X is converted into Y shares of common stock.
The number of shares to be received in the conversion is governed by a formula. Usually, the convertible security is exchanged for common stock of the issuer at the holder's request by dividing the face value of the debenture by a market price of the common stock that is discounted at the time of the conversion.
Now to the specific convertible debenture you asked about:
A floorless convertible debenture has a “floating” exchange rate built into the conversion agreement. The conversion rate (number of shares the debenture can be converted into) is “adjusted” to convert to more shares acquired (per dollar of investment) in the event the price of the stock goes down between the time the debenture is issued and the time when it is converted into stock. The lower the stock price goes, the more shares the holder of the debenture gets for his or her note.
It’s called “floorless” because there is no “bottom” to the lower price of the stock. Stocks can turn out to be worthless, as we all know.
Well, most of us, anyway.
Here’s a very simplified example of how a “floorless” conversion might work:
Nifty Alien Reptiles from Flamfoozie (ticker symbol NARF) issues a floorless convertible debenture with an interest rate of 2% simple interest per year to your sweetheart, Snookiepoo.
On April 1, 2004, the stock of NARF is trading at 1000 Intergalactic Credits per share. On April 1, 2004, Snookiepoo gives the company 1000 Intergalactic Credits in exchange for a piece of paper that says the company will pay her 2% interest (for example) every year for five years. At any time in those five years, Snookiepoo has the right to convert her little piece of paper into one share of stock in NARF.
Additionally, written into this particular note (the floorless convertible debenture) is a clause that says something like,
“If any time in the next five years the stock price is less than 1000 credits per share, and if Snookiepoo decides to exercise her option to convert her note into stock at that same time, then Snookiepoo gets more than one share of NARF (as calculated by the conversion ratio written into the note) when she converts her debenture into shares of stock. In fact, whatever the price is, if it is less than what it is now, she not only gets more than one share, and she not only gets all the stock she would expect to get at that future price, she gets to figure in a additional discount per share of the then-existing stock price when she converts.”
Fast forward…and the stock gets crushed.
Shocking, yes?
On December 25th, 2005, Snookiepoo decides to convert her note to stock. On that day, the stock is trading at 10 (for example). With the conversion rate in the note as her guide, and the discount she gets, she is allowed to convert her note into more than 100 shares of stock.
Sounds like a good deal for Snookiepoo, eh? It is.
But what if (and I say this with all due respect) Snookiepoo wanted to take advantage of the situation? In that case, the company that issued the floorless convertible debenture has a little problem.
Let’s say Snookiepoo happened to be an unscrupulous and very greedy individual with some extra cash to toss at a risky and unsecured bond issued by a company that for some reason couldn’t obtain conventional financing.
Let’s further say that Snookiepoo could short that same company’s stock without actually borrowing it.
Nobody who owns NARF stock and wants it to go higher would want to loan it out in order for it to be shorted, but Snookiepoo doesn’t worry about borrowing the stock.
She just sells it short without borrowing it from anyone first. (Remember, one of the “rules” of selling short is that you have to borrow the stock before you sell it.)
Shorting a stock without borrowing it is called “naked short selling”, or “naked shorting”, and although it is illegal in the United States, it’s not illegal in some other places.
I just realized that I suggested the idea of Snookiepoo being naked.
Not a pretty picture for the puny mammals on this planet.
Put all her clothes back on, and move along, cuz.
If she had the ability and the nefarious intention, and if she could short the stock naked, then she could buy the floorless convertible debenture, and then when the time came, she could convert her debenture into stock (at a discount to the prevailing price) and use the stock she receives to cover her naked short position!
It sounds like that should be illegal, right?
Yes, it probably should be, but there are some instances when it’s not. And that’s the reason why “floorless convertible debentures” are so dangerous to the company that issues them.
It might be possible for Snookiepoo (she is holding the note) to short the stock “naked”, drive the stock price down, and then convert the debenture into stock (at a discount) and cover her short position.
If the sum of the money she collected on the short trade and the money she saved on the discounted conversion were more than the money she put into the bond in the first place, then she would make money…maybe a lot of money if the stock were driven down to the point where it was almost worthless before she had to buy it and cover her short position.
What else could go wrong, you ax?
Plenty. If the company were planning on issuing additional stock to raise the funds to pay back the money it borrowed when it issued the bond, then the company is kinda screwed.
The stock is almost worthless, so the offering would have to be much, much larger than would have been anticipated when the bond was issued.
A large offering of additional shares would dilute the float considerably, and that is something the shareholders would not like at all. (Remember, Snookiepoo just diluted the float when she converted.) The ordinary shareholders would resemble charcoal briquettes at that point.
Here’s the point that a lot of investors miss:
Why would NARF issue a floorless convertible debenture in the first place?
To my way of thinking, there are only three reasons, and none of them are good.
Either the people that are running NARF are idiots, or the company is in so much financial trouble that it has no alternative, or the sellers are in cahoots with whoever buys the note and those sellers have no intention of using the money they raise for legitimate purposes.
No matter what the reason, no matter how “wonderful” the company claims it is or how much the investor likes the stock, the issuance of a floorless convertible debenture is about the biggest red flag you could possibly imagine.
The good news is that under most circumstances, the shareholders can (not necessarily will, but can) quickly learn about the issuance of a floorless convertible, and if they are nimble they may be able move on to a safer investment without too much pain.
I trust this assists your understanding, cuz!
My best wishes to you and Snookiepoo, and have a great week!
Your loving cousin,
Tastes Like Chicken
http://adserv.stocksite.com/commentary/commentary.asp?article=8
SONS is now SONSE.
To:ChrisJP who wrote (10284)
From: Tom Swift Wednesday, Mar 31, 2004 7:33 PM
View Replies (1) / Respond to of 11181
SONS is now SONSE.
I listened to the conference call. I still think they will get delisted, they are going to have to do a forensic audit if they widen the scope of the current investigation and there just isn't time to finish before the deadline.
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=19973419
Zwerling, Schachter & Zwerling, LLP Announces Class Action on Behalf of Purchasers of Sonus Networks, Inc. Common Stock Alleging Violations Of Federal Securities Laws
Wednesday March 31, 1:53 pm ET
NEW YORK, March 31 /PRNewswire/ -- Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter") announced today that a class action lawsuit was filed in the United States District Court for the District of Massachusetts, on behalf of all persons and entities who purchased the common stock of Sonus Networks, Inc. ("Sonus" or the "Company") (Nasdaq: SONSE - News) between June 3, 2003 and February 11, 2004, inclusive (the "Class Period").
ADVERTISEMENT
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the investing community during the Class Period thereby artificially inflating the price of Sonus common stock. As alleged in the complaint, throughout the Class Period, defendants issued numerous statements to the market concerning the Company's financial results, which failed to disclosed and/or misrepresented the following adverse facts, among others: (a) that defendants had improperly and untimely recognized revenue on certain of the Company's customer transactions; (b) that defendants violated Generally Accepted Accounting Principles and the Company's own internal policies regarding the timing of revenue recognition; and (c) as a result of the foregoing, the Company's revenues, net income and earnings per share published during the Class Period were materially false and misleading.
On February 11, 2004, after the close of regular trading, Sonus announced that the Company had identified certain issues, practices and actions of its employees relating to both the timing of revenue recognized and other financial statement items, which may affect the Company's 2003 financial statements and possibly financial statements for prior periods. Prior to disclosing these adverse facts, Sonus completed a $126.14 million public offering, and Sonus insiders sold approximately $2 million of their personally held shares to the public. On February 12, 2004, when the market opened for trading, shares of Sonus stock fell as low as $5.02 per share, a decline of $1.67 per share, or approximately 25%
If you purchased Sonus common stock between June 3, 2003 and February 11, 2004 or on Sonus' public offering completed September 23, 2003 (the "Class"), you may apply to serve as lead plaintiff on behalf of the Class. The lead plaintiff is responsible for overseeing the prosecution of the action and ensuring that the interests of the Class are protected. You have until April 12, 2004 to apply for lead plaintiff status in the action.
You may apply to be appointed lead plaintiff through Zwerling Schachter by contacting the individuals set forth below. Zwerling Schachter concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts and has offices in New York City, Westbury, New York, and Seattle, Washington. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.
If you have any questions regarding your rights and interests pertaining to the prosecution of this securities litigation matter or would like to consider serving as lead plaintiff, you may contact Shaye J. Fuchs, Esq. and Jayne Nykolyn at 1-800-721-3900 or by e-mail at sfuchs@zsz.com and jnykolyn@zsz.com.
Where the hell have I been?
Tuesday, May 27, 2003 11:00 PM ET
From: Silicon Investor
Dear Silicon Investor Members,
As you may or may not have heard, Silicon Investor was bought by Investors Hub on May 16th, and the equipment has been moved to Kansas City to the same ISP that hosts Investors Hub.
Few things will change over the short term, and the long-term plans for the site are still very liquid. Nothing is etched in stone yet. But you might notice some immediate changes, including dropping features we consider non-core, like News. If a feature, like News, is available for free elsewhere, it's been dropped from Silicon Investor.
For those who have been here more than a couple of years, this is also one of those "The more things change, the more they stay the same" things. Or, as the Who put it, "Meet the new boss. Same as the old boss." Specifically, Bob Zumbrunnen, one of the owners of Investors Hub, is once again the Administrator at Silicon Investor. His profile is at http://www.siliconinvestor.com/stocktalk/profile.gsp?id=4591117
Most of the changes that will be happening in the next several weeks likely (hopefully) won't even be noticed. We're migrating the site to the same platform Investors Hub uses. The interface will stay the same as it is now. But the invisible underlying workings will be different. Why? Because Bob's also the programmer for Investors Hub and Silicon Investor and wants to reduce the number of languages, databases, and operating systems he'll be responsible for.
For now, the most important projects are the migration, ad-serving, and subscriptions. It's currently not possible to subscribe to Silicon Investor, but making it possible is a very high priority.
Everything else will keep going the way it has been. There's no need to rock the boat too much yet.
For further information about the acquisition, see the following links:
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=18951914
http://www.siliconinvestor.com/stocktalk/msg.gsp?msgid=18951917
http://www.marketwatch.com/news/story.asp?siteid=yhoo&guid=%...
House Select Committee Plans to analyze a first-time California study on the threat of terrorism on America's rail system.
For the first time since the terrorist attack on Spain Rail system the U.S. House Select Committee on Homeland Security reviews a first-time study on "Terror On The Tracks" Economic Impact produced for OnTrac by LAEDC and Rand Corporation.
Los Angeles, CA (PRWEB) March 17 2004--“Southern California has become the nation's primary gateway for two-way international trade,” said Executive Director Christopher Becker of Orange North-American Trade Rail Access Corridor (OnTrac) Joint Powers Authority. “The recent terrorist bombings of Spain’s busy rail system have sent shockwaves to America and other countries involved in the Iraq war and a renewed interest to beef up funding and security of our own transportation system.”
Spain government had insisted that its prime suspect in Thursday's rail bombings was the armed Basque separatist group ETA, even as evidence mounted of an Islamic link in the railway bombings, which wounded 1,500 and left at least 200 dead. It has sent rail security system concerns around the world.
One day after the bombings The House Select Committee On Homeland Security began reviewing the only study of its kind done so far on the nation’s rail system produced by Los Angeles County Economic Development Corporation (LAEDC) and is under review by the Rand Corporation, Santa Monica, CA.
“The Alameda Corridor East rail lines moved about $116 billion in goods based on the manufacturer’s value in 2000,” said Becker. “The street value was much higher for these products. The street values of rail cargo traveling on the Alameda Corridor East in 2000 were $166 billion.”
Becker, who testified last year at the Congressional Railroad Committee Hearings believes Washington should provide more flexible funding for environmentally beneficial rail projects, and significantly more funding for mega projects and grade crossing programs like Alameda Corridor East.
“The threat of terrorism is real on strategic rail corridors with passenger and freight rail service and we believe that Al Qaeda's apparent interest in rail attacks should be a call to action,” said Counterterrorism Expert Elsa Lee, CEO Advantage SCI, Redondo Beach, CA, who contributed to a-one-of-a-kind Homeland Security report released last fall on the anniversary of 9-11.
A copy of the report “OnTrac Trade Impact Study: National Economic Significance of Rail Capacity and Homeland Security on the Alameda Corridor East (MayoCommunications.com or LAEDC.org ) was sent to the ranking members of the House Select Committee On Homeland Security Friday (March 12, 2004)
“Increasing capacity of rail moves more consumer and military goods, faster, but at the same time added capacity also increases the wait times for drivers at street level rail crossings,” said LAEDC Senior Vice President of Public Policy Wally Baker.
"Scores of trains delayed ambulance and fire protection in many areas like Placentia," said Becker, "which is why all eyes are on Orange County. This translates into more people possibly dying from health emergencies such as heart attacks and strokes, as well deadly fires. Senator Barbara Boxer's recent study has helped determine the impact of grade crossings in emergency situations. Remember our school children are riding in buses that cross these railroad tracks. About 250 school buses per day cross the tracks just in Placentia."
"By 2010, freight train delays alone will increase from the current 31.9 minutes per day at the five mile, BNSF/Placentia bottleneck to more than three hours. Extended conditions will delay some trains from four to six hours," Chris Becker said. "Construction of the OnTrac project will at least maintain delays at 26.1-minute average per daily train. After 2025 we expect to see a train every eight minutes 24 hours a day and seven days a week on the corridors."
“The disruption cost of shutting down the Alameda Corridor East represents a $414 million disruption value each day that it is shut down,” said LAEDC Director of Public Policy, Greg Freeman. “A 10-day disruption due to a terrorist attack would cost $4.1 billion, and 30-days duration would cost $12.4 billion.”
The study was commissioned and published in cooperation with the Orange North-American Trade Rail Access Corridor (OnTrac) Joint Powers Authority and the Los Angeles County Economic Development Corporation (LAEDC). The study was completed as part of the environmental review process for the Alameda Corridor East strategic rail system that goes through Placentia, California.
About OnTrac Authority
The Orange North-American Trade Rail Access Corridor (OnTrac) Authority is a joint powers authority (JPA) similar to the Alameda Corridor Transportation Authority (ACTA). OnTrac, headed by the City of Placentia, was formed in April of 2000 to build and sustain support for the Orangethorpe Avenue Grade Separation and Trade Corridor project -a five-mile long railroad-lowering project that will completely grade separate 11 rail crossings in the cities of Placentia and Anaheim. The City of Placentia has the only designated “Quite Zone” in the United States thanks to OnTrac.
About LAEDC
OnTrac has retained LAEDC as an independent, non-profit agency to oversee and analyze the Trade Impact Study. As the premier business leadership organization, the LAEDC's mission is to attract, retain and grow businesses and jobs in the regions of Los Angeles County, as well as identifying trends and affecting positive change for the local economy.
Contact: George McQuade at MAYO Communications for images, interviews and studies mentioned in this news release. Other facts about OnTrac are posted at www.MayoCommunications.com
818.340.5300 or 818.618.9229
United Energy Announces $1.75 Million Financing Arrangement With Laurus Funds
SECAUCUS, N.J., March 25 /PRNewswire-FirstCall/ -- United Energy Corp. (OTC Bulletin Board: UNRG.OB - News) announced today that it has entered into a $1.75 million financing arrangement with Laurus Master Fund, Ltd. ("Laurus Funds"), a financial institution specializing in funding small and micro- capitalization companies. Under the arrangement, United Energy issued a $1.75 million secured convertible term note with a variable rate coupon based on the WSJ Prime Rate. The term note is convertible into equity at an initial conversion price of $1.00 per share. Laurus Funds was also issued warrants to purchase up to 300,000 shares of United Energy's common stock.
United Energy's Chairman and CEO, Ron Wilen stated, "The arrangement with Laurus Funds provides United Energy additional capital to grow through a more aggressive international sales campaign for its current line of specialty chemicals and possibly the acquisition of value-added operating companies producing other environmentally-friendly chemicals. We view this transaction as extremely positive for United Energy and our shareholders."
About United Energy
Headquartered in Secaucus, New Jersey, United Energy is actively engaged in the development, manufacture and sale of environmentally friendly specialty chemical products. United Energy's leading product is its KH-30® multifunctional dispersant and its line of related products, KX-91® and KH- 30S®, which have proven to be effective cleaners in oil and gas wells, pipelines and storage tanks.
Forward Looking Statements
Except for the historical information herein, the matters discussed in this news release include forward-looking statements that may involve a number of risks and uncertainties. Actual results may vary significantly based on a number of factors, including, but not limited to, risks in product and technology development, market acceptance of new products and continuing product demand, the impact of competitive products and pricing, changing economic conditions, including changes in short-term interest rates and foreign currency fluctuations and other risk factors detailed in United Energy's most recent annual report pursuant to the Securities Exchange Act of 1934 and other filings with the Securities and Exchange Commission.
Form 8-K for UNITED ENERGY CORP /NV/
--------------------------------------------------------------------------------
30-Mar-2004
Other Events and Financial Statements & Exhibits
ITEM 5. OTHER EVENT
United Energy Corp. ("United Energy") entered into a financing transaction with Laurus Master Fund, Ltd. ("Laurus") as of March 24, 2004, providing up to $1.75 million in financing. Under the arrangement, United Energy issued a $1,750,000 secured convertible term note at a conversion price of $1.00 per share to Laurus (the "Term Loan"). Laurus was also issued warrants to purchase up to 300,000 shares of United Energy's common stock.
The Term Loan has a term of three years and accrues interest at the greater of the prime rate of interest (as published in The Wall Street Journal) or 4% per anum. Interest shall be payable monthly in arrears commencing on May 1, 2004, and on the first day of each consecutive calendar month thereafter. Monthly amortization payments shall commence on October 1, 2004, at the rate of $58,333.00.
The interest rate is subject to adjustment in .25% increments on a month by month basis if specified conditions are met (including that the common stock underlying the conversion of the convertible term note and the warrant issued to Laurus are registered with the U.S. Securities and Exchange Commission and whether and to what extent the average price of the stock exceeds or is less than the fixed conversion price).
Laurus also has the option to convert all or a portion of the Term Loan into shares of United Energy's common stock at any time, subject to specified limitations, at a fixed conversion price of $1.00 per share. The Term Loan is secured by a first lien on all United Energy's assets. In connection with the Term Loan, Laurus was paid a fee of $61,250 and received a seven-year warrant to purchase up to 300,000 shares of United Energy's common stock at prices ranging from $1.25 per share to $1.75 per share. All stock conversion prices and exercise prices are subject to adjustment for stock splits, stock dividends or similar events.
United Energy agreed to file a registration statement with the U.S. Securities and Exchange Commission covering the shares issuable upon conversion of the Term Loan and the exercise of Laurus' warrants.
The principal documents involved in the transaction are a Securities Purchase Agreement, a Security Agreement, a Secured Convertible Term Note, a Common Stock Purchase Warrant and a Registration Rights Agreement, each of which is dated as of March 24, 2004 and a copy of which is attached hereto as an exhibit to this Current Report.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
10.1 Securities Purchase Agreement, dated March 24, 2004, between United Energy Corp. and Laurus Master Fund, Ltd.
10.2 Secured Convertible Term Note, dated March 24, 2004, made by United Energy Corp. in favor of Laurus Master Fund, Ltd.
10.3 Security Agreement, dated March 24, 2004, by and between United Energy Corp. and Laurus Master Fund, Ltd.
10.4 Registration Rights Agreement, dated March 24, 2004, by and between United Energy Corp. and Laurus Master Fund, Ltd.
10.5 Common Stock Purchase Warrant, dated March 24, 2004, issued by United Energy Corp., in favor of Laurus Master Fund, Ltd.
99.1 Press release of United Energy Corp., dated March 24, 2004.
Date Open High Low Close Volume Adj Close*
1-Apr-04 0.76 0.85 0.76 0.85 3,780 0.85
31-Mar-04 0.74 0.91 0.68 0.85 31,900 0.85
30-Mar-04 0.75 0.76 0.70 0.73 20,300 0.73
29-Mar-04 0.78 0.84 0.78 0.84 7,500 0.84
26-Mar-04 0.85 0.85 0.67 0.79 26,900 0.79
25-Mar-04 1.01 1.01 0.83 0.85 41,500 0.85
24-Mar-04 0.77 1.01 0.76 1.01 42,766 1.01
23-Mar-04 0.72 0.83 0.67 0.77 43,900 0.77
22-Mar-04 0.70 0.73 0.65 0.73 17,750 0.73
19-Mar-04 0.70 0.70 0.70 0.70 5,500 0.70
18-Mar-04 0.70 0.70 0.70 0.70 0 0.70
17-Mar-04 0.68 0.78 0.68 0.70 37,000 0.70
16-Mar-04 0.67 0.68 0.60 0.68 9,750 0.68
15-Mar-04 0.72 0.72 0.60 0.60 26,228 0.60
12-Mar-04 0.68 0.70 0.68 0.70 5,000 0.70
11-Mar-04 0.65 0.70 0.63 0.68 24,000 0.68
10-Mar-04 0.65 0.70 0.60 0.65 2,275 0.65
9-Mar-04 0.60 0.60 0.60 0.60 0 0.60
8-Mar-04 0.56 0.60 0.52 0.60 41,259 0.60
5-Mar-04 0.56 0.65 0.56 0.65 1,000 0.65
4-Mar-04 0.65 0.65 0.65 0.65 1,500 0.65
3-Mar-04 0.62 0.75 0.60 0.60 14,500 0.60
2-Mar-04 0.60 0.61 0.60 0.61 5,300 0.61
1-Mar-04 0.70 0.70 0.70 0.70 8,000 0.70
27-Feb-04 0.60 0.60 0.60 0.60 6,163 0.60
26-Feb-04 0.75 0.75 0.75 0.75 0 0.75
25-Feb-04 0.71 0.80 0.60 0.75 5,659 0.75
24-Feb-04 0.70 0.77 0.70 0.76 4,000 0.76
23-Feb-04 0.89 0.89 0.70 0.80 19,500 0.80
20-Feb-04 0.89 0.89 0.89 0.89 1,000 0.89
19-Feb-04 0.80 0.80 0.71 0.71 8,753 0.71
18-Feb-04 0.71 0.71 0.71 0.71 5,894 0.71
17-Feb-04 0.71 0.89 0.71 0.89 2,500 0.89
13-Feb-04 0.85 0.85 0.85 0.85 0 0.85
12-Feb-04 0.85 0.90 0.70 0.85 2,200 0.85
11-Feb-04 0.85 0.85 0.85 0.85 0 0.85
10-Feb-04 0.85 0.85 0.85 0.85 1,000 0.85
9-Feb-04 0.90 0.90 0.90 0.90 0 0.90
6-Feb-04 0.90 0.90 0.90 0.90 4,000 0.90
5-Feb-04 0.90 0.90 0.90 0.90 630 0.90
4-Feb-04 0.76 0.90 0.76 0.90 2,400 0.90
3-Feb-04 0.80 0.80 0.75 0.75 53,350 0.75
2-Feb-04 0.63 0.75 0.63 0.75 6,500 0.75
30-Jan-04 0.80 0.80 0.75 0.75 1,000 0.75
29-Jan-04 0.75 0.75 0.75 0.75 0 0.75
28-Jan-04 0.87 0.87 0.70 0.75 20,000 0.75
27-Jan-04 0.95 0.95 0.87 0.87 16,000 0.87
26-Jan-04 0.95 0.95 0.95 0.95 2,600 0.95
23-Jan-04 1.05 1.08 0.95 0.95 36,650 0.95
22-Jan-04 1.04 1.07 0.95 1.00 27,000 1.00
21-Jan-04 1.07 1.08 0.90 0.95 140,530 0.95
20-Jan-04 0.90 0.90 0.76 0.80 25,440 0.80
16-Jan-04 0.70 0.70 0.70 0.70 1,000 0.70
15-Jan-04 0.64 0.77 0.64 0.70 82,500 0.70
14-Jan-04 0.51 0.61 0.50 0.61 28,900 0.61
13-Jan-04 0.42 0.51 0.42 0.50 59,000 0.50
12-Jan-04 0.45 0.45 0.40 0.40 14,675 0.40
9-Jan-04 0.40 0.42 0.40 0.42 200 0.42
8-Jan-04 0.40 0.45 0.40 0.45 17,000 0.45
7-Jan-04 0.40 0.45 0.40 0.45 12,630 0.45
6-Jan-04 0.45 0.45 0.41 0.41 15,133 0.41
5-Jan-04 0.53 0.53 0.47 0.52 30,000 0.52
2-Jan-04 0.44 0.52 0.44 0.50 39,950 0.50
31-Dec-03 0.42 0.48 0.40 0.40 46,000 0.40
30-Dec-03 0.47 0.47 0.42 0.42 5,430 0.42
29-Dec-03 0.51 0.51 0.40 0.47 57,150 0.47
A new bill designed to fight foreign Web censorship has been introduced in Congress.
The legislation, unveiled Wednesday by Rep. Chris Cox, R-Calif., would create an Office of Global Internet Freedom charged with fighting Internet blocking and helping Web users in countries such as China and Syria get around censorship efforts and avoid punishment. The bill also would allocate $50 million each year over the next two years to develop and promote anti-blocking technology.
"Just as past governments have banned pamphlets, jammed radios and committed their gravest atrocities out of the range of TV cameras, many governments are attempting to restrict an individual's freedom to receive and exchange information by blocking the Internet," Cox said in a statement.
The bill, designed to counter authoritarian governments' efforts to block their citizens from the Internet, would provide technological means to circumvent censorship tools. The legislation's policy statement specifically mentions software, including SafeWeb's Triangle Boy, Peek-a-Booty and DynaWeb, and peer-to-peer network Freenet-China.
The bill also would require the submission of a United Nations resolution condemning countries that censor the Web and would require an annual report on nations that abuse Web freedoms.
Access to foreign Internet sites has exposed citizens of countries with restrictive governments to a wide range of news and material they were unable to read otherwise. As a result, countries such as China and North Korea have stepped up their censorship efforts.
For example, Chinese officials recently arrested a writer who posted information about that country's problems on U.S.-based Web pages, and China's government blocked access to Google and AltaVista last month.
Although the amount of money allocated to anti-censorship tools is relatively small, it could spark a proliferation of products designed to circumvent filters both abroad and in the United States.
As a result, the bill could create an unintended clash between U.S. efforts to protect children from inappropriate material and attempts to thwart foreign governments from blocking citizen Web access. For example, federal law in the United States currently requires schools to filter content or lose federal funding, but some of the anti-censorship technology could help children get around the blocking.
But that debate will likely be put off until next year, if it occurs at all. In the final days of a session, before congressmen return home and turn their efforts to election season, many congressmen introduce bills that cover issues important to the lawmakers and to their constituents--even if they aren't likely to get a hearing. The lawmakers are essentially previewing issues they plan resurrect next year.
A similar anti-censorship technology bill is expected in the Senate.
http://msnbc-cnet.com.com/2100-1023-960679.html
a clever sheep
nothing more dangerous...
« My wife is already living in Ashcroft's America... / Main / An Intro to US Law »
October 03, 2002
Global censorship: NO! Domestic censorship: YES!
It's so nice of our Congress-critters to be concerned with the effects of foreign government-ordained censorship against the citizens of those countries. A new bill in Congress seeks everything up to and including a UN resolution condemning countries that censor the web. It advocates "technological means to circumvent censorship tools."
This is from the same band of idiots who gave us the DMCA -- which criminalizes using technological means to circumvent those devices which keep us from enjoying or studying legitimately-acquired media in the manner and place in which we choose.
This is from the same band of morons who gave us the CIPA & COPA & CHIPA & CDA and whatever other acronyms they use to describe the mandate for censorware in libraries and schools and public places where a child may possibly walk into or walk near or hear about the possibility of walking near...
This is from the same bunch of cretins who are looking to put a censor and a copyright cop in every piece of equipment capable of playing a digital file... including hearing aids and toilet seats.
I'm so glad they're concerned about the rights of citizens in foreign countries... now if they could just turn their sights closer to home.
Posted by evano at October 03, 2002 04:06 PM
http://www.guydickinson.com/sheep/archive/000427.html
Iran's Emerging Nuclear Plant Poses Test for U.S.
By Dana Priest
Washington Post Staff Writer
Monday, July 29, 2002; Page A01
For the past seven years, U.S. and Israeli spy satellites have swept regularly over Iran's Persian Gulf coast, snapping pictures of Russian and Iranian construction crews working to complete a nuclear power plant at Bushehr.
This year, the satellites beamed back images of a round reactor dome, cooling pipes, pumping equipment and what some intelligence analysts believe to be antiaircraft missile battery sites.
Bushehr has become the subject of debate in Washington and Tel Aviv over whether the plant should be allowed to come on line as scheduled in the next two or three years. Part of the discussions involve pressuring Russia to voluntarily cease construction. But as the plant moves closer to completion, it also has emerged as a potential test case of the Bush administration's new doctrine of preempting threats to U.S. national security.
In the process, it has highlighted the complexities involved in executing a policy of preemption: What impact would a preemptive strike have on U.S. relations with Moscow? What effect would eliminating a civilian nuclear power plant have on Iran's covert nuclear weapons development program, which U.S. intelligence says is ongoing at dozens of other less-prominent sites throughout the country?
And perhaps most significant, what would be the consequences of what Iran almost certainly would believe to be an act of war?
Bush has labeled Iran a part of the "axis of evil," and some U.S. defense officials argue that Bushehr should be destroyed before it receives its first load of nuclear fuel from Russia. "There is some support for preemption within the administration," said Anthony H. Cordesman, a leading Middle East expert and one of several proliferation specialists who described the debate within the administration.
Others in the administration argue that if Iran agrees to international safeguards, the plant does not pose a security risk. Besides, they say, while destroying Bushehr will not eliminate Iran's nuclear weapons program, it could antagonize Iranians at a time when the administration is trying to reach out to them.
Iran is a signatory of the Nuclear Non-Proliferation Treaty, and International Atomic Energy Agency inspectors have visited the Bushehr construction site.
Whatever path the administration chooses could be overshadowed by a key U.S. ally in the region: Israel. Although a preemptive strike appears to be supported by only a minority in the administration and has not been discussed at the top levels of government, Israel has suggested it will not allow the plant to open.
"Does Israel have a military option?" said a government official in Washington who is familiar with the Israeli position. "The answer is yes."
On June 7, 1981, Israeli F-15s and F-16s destroyed the French-built Osirak light-water nuclear reactor near Baghdad. The attack was criticized by the United States at the time but is now regarded by many U.S. policymakers as a milestone in efforts to prevent Iraqi President Saddam Hussein from obtaining nuclear weapons.
In recent weeks, Israel has publicly warned Iran that it considers the Bushehr plant -- which Germany began building for Iran in 1974 and Iraq bombed three times in the mid-1980s during the Iran-Iraq war -- a threat to its national security. There is some evidence, though not conclusive, that Iran is positioning antiaircraft missile batteries around the plant and a nuclear research facility near Tehran, according to analysts who have looked at high-resolution satellite images of those sites.
Last month, the Hebrew daily Haaretz reported that Israel's National Security Council was conducting an urgent review of its policy toward Iran and quoted one official as saying "that everything must be done, including, if necessary, using force to prevent Tehran from achieving nuclear weapons capabilities."
The Bushehr plant, on Iran's southwestern coast, is set to be completed in 16 months and operational 18 months later. Iran, which is paying Russia $800 million for its assistance, says the 1,000-megawatt light-water reactor is for peaceful energy production only.
Neither the technology nor the spent fuel from the Bushehr plant could, by itself, be used to make a nuclear bomb. But the same technology used in the plant is necessary to manufacture enriched fuel for nuclear weapons. Also, weapons-grade plutonium could be extracted from the spent fuel for a nuclear bomb.
The CIA estimates Iran is seven years from having a nuclear bomb. Israeli intelligence estimates five years. Within the next few years, experts agree, Iran will have acquired enough know-how and technology to produce a long-range nuclear missile capability without further foreign assistance.
The Clinton administration devoted considerable energy to its efforts to forestall construction of the plant and curtail Iran's nuclear weapons program. But the issue has recently emerged as a top priority in U.S.-Russian relations, as the Bush administration has increased pressure on Moscow to voluntarily cease construction.
But the Russians have given no sign they will comply. Indeed, the Russian government announced last week that it plans to dramatically increase its cooperation with Iran in the energy field, including a proposal to build five more nuclear reactors. The plan envisages a total of four Russian-built reactors at Bushehr, including the reactor being built, and two at Akhvaz, where construction has yet to begin.
High-level talks with Russia on the subject will take place in the next few weeks, an administration official said. For now, the administration's strategy is to ratchet up public criticism of Russia and to warn Moscow that failure to cooperate will have "a negative impact on U.S.-Russian relations."
"We continue to have concerns that technology and know-how for nuclear weapons are flowing to Iran," the U.S. ambassador to Russia, Alexander Vershbow, said in remarks outside Moscow on Monday. "Russia has to avoid letting its desire for commercial gain end up hastening the day that these countries can pose a threat that could not only destabilize their own region, but undermine the security of the entire world."
Bush has raised the issue of Russia's nuclear cooperation with Iran the last several times he has met with President Vladimir Putin, most recently in Moscow in May.
Russian officials have said repeatedly that the reactor is meant only for energy production and that they are not abetting Iran's nuclear weapons research.
"I'd like to point out that cooperation between Iran and Russia is not at all a character which would undermine the process on nonproliferation," Putin said during Bush's visit to Moscow. Putin said Western companies, not Russian entities, have furnished Iran with missile and nuclear technology. "We do have such information," he said, "and we stand ready to share it with our American partners."
In recent meetings, Russian officials, including Atomic Energy Minister Alexander Rumyantsev, have promised U.S. officials that they will not allow the Iranians access to the spent fuel. The Russian legislature changed the country's laws last year to allow for the return and storage of the spent radioactive material on Russian soil.
More important, according to proliferation experts and U.S. officials, are Iran's ongoing ties with Russian scientists. Russia's help on Bushehr creates a "convenient cover for interaction" between Iranian and Russian scientists involved in nuclear weapons development, said Gary Samore, a senior nonproliferation official in the Clinton administration. It also provides a cover to transfer sensitive, hard-to-track, weapon-related components.
The construction project and follow-up maintenance requirements "would legitimize all the trade between Russia and Iran," said David Albright, president of the Institute of Science and International Security and a proliferation expert. "It makes it difficult to control other things going on."
The CIA says it has considerable evidence that Russian scientists have been actively helping Iran acquire the technology, know-how and material to build a bomb. "Russia continues to supply significant assistance on nearly all aspects of Tehran's nuclear program," CIA Director George J. Tenet told the Senate Armed Services Committee in March. "It is also providing Iran assistance on long-range ballistic missile programs."
To many in and out of the administration who warn about the implications of Russia's expanding commercial and scientific relationship with Iran, the construction site at Bushehr remains the most ominous development. With construction slated to be completed by late 2003 or early 2004, they say the window for action will soon begin to close.
"Within the next year, either the U.S. or Israel is going to either attack Iran's [nuclear sites] or acquiesce to Iran being a nuclear state," said John E. Pike, director of GlobalSecurity.org, a nonpartisan military and intelligence research center.
Too late, you missed it.
http://www.moveon.org/press/pdfs/wwwmo31604.pdf
Rice’s 9/11 testimony confirmed for April 8
Panel will also hear from Bush, Cheney
How many people argued that she would never testify?
http://www.msnbc.msn.com/id/4637234/