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I know he is limited to like 5 post per day.
I am glad I was able to post now as it has been a busy day at the office.
Lots of buying and this wall is tumbling down
Anytime... It was an interesting reading and then some. I am thoroughly convinced this has been naked short sold and more convinced it is the shorts who are trying to keep a lid on it as SPARKS last comments on friday regarding friday's trading activity.
I strongly suspect that it wont be effective any longer.
PR + Golden Cross on the charts = BOOM BAM
I hope the procrastinators on here that want to average in get in at the ask first thing tomorrow morning or run the risk of paying more.
I am so fired up about tomorrow and this week.
Sparks, I would love your take on the illegal naked shorting situation in smaller companies and would love a comment from you if you think this is indeed what is and has happened to HLNT?
Thanks for your insight and input you have in advance.
Looking forward to your comments as everyone on this board knows you know your stuff.
Thanks again.
The shorts will start losing pretty badly and then wait until other longs on here like myself buy more and average in along with NEW MONEY entering this stock.
Take pending great PR into the equation and BAM!
I suggest you all wear your seatbelts and if you have the opportunity to get a decent price at the open tomorrow, do it at the ask.
Make no mistake, YOU WILL be paying more for shares that you want later on.
Bluhorshu and all... Just a little inside info as it has been mention by ASSETS many times.
Indeed, I do believe it has been naked short sold. I can see the beginning of a huge covering. Simply put, it can't and won't stay at this level and there is only ONE way to go.
I cannot wait until that GOLDEN CROSS with a PR.
MY OH MY.
Part 7:
HAPPENS A LOT IN SMALLER PINKY'S READ ABOUT PIPE'S BELOW
Regulatory enforcement actions
In 2005, the SEC notified Refco of intent to file an enforcement action against the securities unit of Refco for securities trading violations concerning the shorting of Sedona stock. The SEC sought information related to two former Refco brokers who handled the account of a client, Amro International, which shorted Sedona's stock.[69] No charges had been filed by 2007.
In December 2006, the SEC sued Gryphon Partners, a hedge fund, for insider trading and naked short-selling involving PIPEs in the unregistered stock of 35 companies. PIPEs are "private investments in public equities," used by companies to raise cash. The naked shorting took place in Canada, where it was legal at the time. Gryphon denied the charges.[70]
In March 2007, Goldman Sachs was fined $2 million by the SEC for allowing customers to illegally sell shares short prior to secondary public offerings. Naked short-selling was allegedly used by the Goldman clients. The SEC charged Goldman with failing to ensure those clients had ownership of the shares. SEC Chairman Cox said "That is an important case and it reflects our interest in this area."[71]
In July 2007, Piper Jaffray was fined $150,000 by the New York Stock Exchange (NYSE). Piper violated securities trading rules from January through May 2005, selling shares without borrowing them, and also failing to "cover short sales in a timely manner", according to the NYSE.[72] At the time of this fine, the NYSE had levied over $1.9 million in fines for naked short sales over seven regulatory actions.[73]
Also in July 2007, the American Stock Exchange fined two options market makers for violations of Regulation SHO. SBA Trading was sanctioned for $5 million, and ALA Trading was fined $3 million, which included disgorgement of profits. Both firms and their principals were suspended from association with the exchange for five years. The exchange said the firms used an exemption to Reg. SHO for options market makers to "impermissibly engage in naked short selling."[74][75][76]
In October 2007, the SEC settled charges against New York hedge fund adviser Sandell Asset Management Corp. and three executives of the firm for, among other things, shorting stock without locating shares to borrow. Fines totalling $8 million were imposed, and the firm neither admitted nor denied the charges.[77]
In October 2008 Lehman Brothers Inc. was fined $250,000 by the Financial Industry Regulatory Authority (FINRA) for failing to properly document the ownership of short sales as they occurred, and for failing to annotate an affirmative declaration that shares would be available by the settlement date.[78]
In April 2010 Goldman Sachs paid $450,000 to settle SEC's allegations that it had failed to deliver "approximatedly" 86 short sells between early December 2008 and mid-January 2009, and that it had failed to institute adequate controls to prevent the failures. The company neither admitted nor denied any wrongdoing.[79]
Part 6
Developments, 2007 to the present
In June 2007, the SEC voted to remove the grandfather provision that allowed fails-to-deliver that existed before Reg SHO to be exempt from Reg SHO. SEC Chairman Christopher Cox called naked short selling "a fraud that the commission is bound to prevent and to punish." The SEC also said it was considering removing an exemption from the rule for options market makers.[31] Removal of the grandfather provision and naked shorting restrictions generally have been endorsed by the U.S. Chamber of Commerce.[32]
In March 2008, SEC Chairman Christopher Cox gave a speech entitled the "'Naked' Short Selling Anti-Fraud Rule," in which he announced new SEC efforts to combat naked short selling.[33] Under the proposal, the SEC would create an antifraud rule targeting those who knowingly deceive brokers about having located securities before engaging in short sales, and who fail to deliver the securities by the delivery date. Cox said the proposal would address concerns about short-selling abuses, particularly in the market for small-cap stocks. Even with the regulation in place, the SEC received hundreds of complaints in 2007 about alleged abuses involving short sales. The SEC estimated that about 1% of shares that changed hands daily, about $1 billion, were subject to delivery failures. SEC Commissioners Paul Atkins and Kathleen Casey expressed support for the crackdown.[34][35]
In mid-July 2008, the SEC announced emergency actions to limit the naked short selling of government sponsored enterprises (GSEs), such as Fannie Mae and Freddie Mac, in an effort to limit market volatility of financial stocks.[36] But even with respect to those stocks the SEC soon thereafter announced there would be an exception with regard to market makers.[37] SEC Chairman Cox noted that the emergency order was "not a response to unbridled naked short selling in financial issues", saying that "that has not occurred". Cox said, "rather it is intended as a preventative step to help restore market confidence at a time when it is sorely needed."[25] Analysts warned of the potential for the creation of price bubbles.[37][38]
The emergency actions rule expired August 12, 2008.[39][40][41][42] However, at September 17, 2008, the SEC issued new, more extensive rules against naked shorting, making "it crystal clear that the SEC has zero tolerance for abusive naked short selling". Among the new rules is that market makers are no longer given an exception. As a result, options market makers will be treated in the same way as all other market participants, and effectively will be banned from naked short selling.[43]
On November 4, 2008, voters in South Dakota considered a ballot initiative, "The South Dakota Small Investor Protection Act", to end naked short selling in that state. The Securities Industry and Financial Markets Association of Washington and New York said they would take legal action if the measure passed.[44] The voters defeated the initiative.[45]
In July 2009, the SEC, under what the Wall Street Journal described as "intense political pressure," made permanent an interim rule that obliges brokerages to promptly buy or borrow securities when executing a short sale.[46] The SEC said that since the fall of 2008, abusive naked short selling had been reduced by 50%, and the number of threshold list securities (equity securities with too many "fails to deliver") declined from 582 in July 2008 to 63 in March 2009.[47][48]
In January 2010, Mary Schapiro, chairperson of the SEC, testified before the U.S. Financial Crisis Inquiry Commission, fails to deliver in equity securities has declined 63.4 percent, while persistent and large fails have declined 80.5 percent.[3]
Part 5
Securities Exchange Act of 1934
The Securities Exchange Act of 1934 stipulates a settlement period up to three business days before a stock needs to be delivered,[13] generally referred to as "T+3 delivery."
Regulation SHO
The SEC enacted Regulation SHO in January 2005 to target abusive naked short selling by reducing failure to deliver securities, and by limiting the time in which a broker can permit failures to deliver.[26] In addressing the first, it stated that a broker or dealer may not accept a short sale order without having first borrowed or identified the stock being sold.[27] The rule had the following exemptions:
Broker or dealer accepting a short sale order from another registered broker or dealer
Bona fide market making
Broker-dealer effecting a sale on behalf of a customer that is deemed to own the security pursuant to Rule 200[28] through no fault of the customer or the broker-dealer.[27]
To reduce the duration for which fails to deliver are permitted to sit open, the regulation requires broker-dealers to close out open fail-to-deliver positions in threshold securities that have persisted for 13 consecutive settlement days.[26] The SEC, in describing Regulation SHO, stated that failures to deliver shares that persist for an extended period of time "may result in large delivery obligations where stock settlement occurs."[26]
Regulation SHO also created the "Threshold Security List", which reported any stock where more than 0.5% of a company's total outstanding shares failed delivery for five consecutive days. A number of companies have appeared on the list, including Krispy Kreme, Martha Stewart Omnimedia and Delta Air Lines. The Motley Fool, an investment website, observes that "when a stock appears on this list, it is like a red flag waving, stating 'something is wrong here!'"[13] However, the SEC clarified that appearance on the threshold list "does not necessarily mean that there has been abusive naked short selling or any impermissible trading in the stock."[26]
In July 2006, the SEC proposed to amend Regulation SHO, to further reduce failures to deliver securities.[29] SEC Chairman Christopher Cox referred to "the serious problem of abusive naked short sales, which can be used as a tool to drive down a company's stock price" and that the SEC is "concerned about the persistent failures to deliver in the market for some securities that may be due to loopholes in Regulation SHO".[30]
Part 4
Claimed effects of naked shorting
As with the prevalence of naked shorting, the effects are contested. The SEC has stated that the practice can be beneficial in enhancing liquidity in difficult-to-borrow shares, while others have suggested that it adds efficiency to the securities lending market. Critics of the practice argue that it is often used for market manipulation, that it can damage companies and even that it threatens the broader markets.
One complaint about naked shorting from targeted companies is that the practice dilutes a company's shares for as long as unsettled short sales sit open on the books. This has been alleged to create "phantom" or "counterfeit" shares, sometimes going from trade to trade without connection to any physical shares, and artificially depressing the share price. However, the SEC has disclaimed the existence of counterfeit shares and stated that naked short selling would not increase a company's outstanding shares.[7] Short seller David Rocker contended that failure to deliver securities "can be done for manipulative purposes to create the impression that the stock is a tight borrow," although he said that this should be seen as a failure to deliver "longs" rather than "shorts."[19]
Robert J. Shapiro, former undersecretary of commerce for economic affairs, and a consultant to a law firm suing over naked shorting,[20] has claimed that naked short selling has cost investors $100 billion and driven 1,000 companies into the ground.[10]
Richard Fuld, the former CEO of the financial firm Lehman Brothers, during hearings on the bankruptcy filing by Lehman Brothers and bailout of AIG before the House Committee on Oversight and Government Reform alleged that a host of factors including a crisis of confidence and naked short selling attacks followed by false rumors contributed to the collapse of both Bear Stearns and Lehman Brothers.[21] Fuld had been obsessed with short sellers and had even demoted those Lehman executives that dealt with them; he claimed that the short sellers and the rumour mongers had brought down Lehman, although he had no evidence of it.[22] Upon the examination of the issue of whether "naked short selling" was in any way a cause of the collapse of Bear Stearns or Lehman, securities experts reached the conclusion that the alleged "naked short sales" occurred after the collapse and therefore played no role in it. House committee Chairman Henry Waxman said the committee received thousands of pages of internal documents from Lehman and these documents portray a company in which there was “no accountability for failure".[22][23][24] In July 2008, U.S. Securities and Exchange Commission chairman Christopher Cox said there was no "unbridled naked short selling in financial issues."[25]
Part 3
Extent of naked shorting
The reasons for naked shorting, and the extent of it, have been disputed for several years before the SEC's 2008 action to prohibit the practice. What is generally recognized is that naked shorting tends to happen when shares are difficult to borrow. Studies have shown that naked short selling also increases with the cost of borrowing[reference needed].
In recent years, a number of companies have been accused[by whom?] of using naked shorts in aggressive efforts to drive down share prices, sometimes with no intention of ever delivering the shares.[13] These claims argue that, at least in theory, the practice allows an unlimited number of shares to be sold short. A Los Angeles Times editorial in July 2008 said that naked short selling "enables speculators to drive down a company's stock by offering an overwhelming number of shares for sale."[16]
The SEC has stated that naked shorting is sometimes falsely asserted as a reason for a share price decline, when, often, "the price decrease is a result of the company's poor financial situation rather than the reasons provided by the insiders or promoters."[4]
Before 2008, regulators had generally downplayed the extent of naked shorting in the US. At a North American Securities Administrators Association (NASAA) conference on naked short selling in November 2005, an official of the New York Stock Exchange stated that NYSE had not found evidence of widespread naked short selling. In 2006, an official of the SEC said that "While there may be instances of abusive short selling, 99% of all trades in dollar value settle on time without incident."[17] Of all those that do not, 85% are resolved within 10 business days and 90% within 20.[17] That means that about 1% of shares that change hands daily, or about $1 billion per day, are subject to delivery failures,[5] although the SEC has stated that "fails-to-deliver can occur for a number of reasons on both long and short sales," and accordingly that they do not necessarily indicate naked short selling.[4][14]
In 2008, SEC chairman Christopher Cox said that the SEC "has zero tolerance for abusive naked short-selling" while implementing new regulations to prohibit the practice, culminating in the September 2008 action following the failures of Bear Sterns and Lehman Brothers amidst speculation that naked short selling had played a contributory role.[9][18] Cox said that "the rule would be designed to ensure transparency in short-selling in general, beyond the practice of naked short-selling."[9]
PART 2
Naked shorts in the United States
Naked short selling is a case of short selling without first arranging a borrow. If the stock is in short supply, finding shares to borrow can be difficult. The seller may also decide not to borrow the shares, in some cases because lenders are not available, or because of the costs of lending. When shares are not borrowed within the clearing time period and the short-seller does not tender shares to the buyer, the trade is considered to have "failed to deliver."[13] Nevertheless, the trade will continue to sit open or the buyer may be credited the shares by the DTCC until the short-seller either closes out the position or borrows the shares.[5]
It is difficult to measure how often naked short selling occurs. Fails to deliver are not necessarily indicative of naked shorting, and can result from both "long" transactions (stock purchases) and short sales.[4][14] Naked shorting can be invisible in a liquid market, as long as the short sale is eventually delivered to the buyer. However, if the covers are impossible to find, the trades fail. Fail reports are published regularly by the SEC,[15] and a sudden rise in the number of fails-to-deliver will alert the SEC to the possibility of naked short selling. In some recent cases, it was claimed that the daily activity was larger than all of the available shares, which would normally be unlikely.[13]
Naked short selling, or naked shorting, is the practice of short-selling a tradable asset of any kind without first borrowing the security or ensuring that the security can be borrowed, as is conventionally done in a short sale. When the seller does not obtain the shares within the required time frame, the result is known as a "failure to deliver". The transaction generally remains open until the shares are acquired by the seller, or the seller's broker settles the trade.[1]
Short selling is used to anticipate a price fall, but exposes the seller to the risk of a price rise.
In 2008, the SEC banned what it called "abusive naked short selling"[2] in the United States, as well as some other jurisdictions, as a method of driving down share prices. Failing to deliver shares is legal under certain circumstances, and naked short selling is not per se illegal.[3][4][5] In the United States, naked short selling is covered by various SEC regulations which prohibit the practice.[6]
Critics, including Overstock.com's Patrick M. Byrne, have advocated for stricter regulations against naked short selling. In 2005, "Regulation SHO" was enacted, requiring that broker-dealers have grounds to believe that shares will be available for a given stock transaction, and requiring that delivery take place within a limited time period.[4][7]
As part of its response to the crisis in the North American markets in 2008, the SEC issued a temporary order restricting short-selling in the shares of 19 financial firms deemed systemically important, by reinforcing the penalties for failing to deliver the shares in time.[8] Effective September 18, 2008, amid claims that aggressive short selling had played a role in the failure of financial giant Lehman Brothers, the SEC extended and expanded the rules to remove exceptions and to cover all companies, including market makers.[2][9]
Some commentators have contended that despite regulations, naked shorting is widespread and that the SEC regulations are poorly enforced. Its critics have contended that the practice is susceptible to abuse, can be damaging to targeted companies struggling to raise capital, and has led to numerous bankruptcies.[6][10] However, other commentators have said that the naked shorting issue is a "devil theory",[11] not a bona fide market issue and a waste of regulatory resources.[12]
Very good feeling that shorts are covering with new money to follow in the last 30 minutes..... DO NOT be surprised for a close in the mid 30's today. Yes, TODAY.
Good Luck to all longs- We all truly deserve it
HLNT is cooking
2 million shares left at 30 and next stop or next market maker at 38
Can we see a close of 35 boys?
1.5 hours left. I say we can. especially with this volume so far.
I think we are seeing a little short covering at the ASK for a change
Shorts do not want to be caught with their pants down come monday
News imminent and this baby is ready to fly. Today marks the day for heavier volume days ahead and a great price appreciation,
Congrats to Longs!
Some kinds of news is leaking.
Would not be surprised if this closed over 32/33
My gut feeling that good news is lesking.
You can tell by volume and pps action last hour
Time to buy more, ladies....
***Post of the day***
HLNT is here to stay, folks.
Enjoy the ride up and enjoy the wealth that will come with it
Wow, this is what I like to see.. Positive board!
Love it.
Small volume but nice action as 27's just printed.
Newsletter out today? Hoss w epa certification months away?
Nir bye bye soon.
Looking good and I hear from Jason News soon to turn the corner?
Got to love it longs.
Hlnt is here to STAY
Guys, with the transparent T/A and with the newsletter out tomorrow morning it is shaping up to be a great close of the month.
I expect news out shortly and good luck to all.
Marcg, we got 5 minutes for you or another LONG
to put a buy limit order for 560,000 shares to be at 29
Hope a long comes in here at limit to 29 for $1500
and we end up green. 8 minutes
I do see that Level 2 penny trades.
They are trying to manipulate.
Do not sweat it
Assets, $1k order at limit of 29 gets you avg of about 27.5
and be bidding 29 for a few shares.
You are right. I do see that however I dont think it will happen today.
I am not worried Look at volume. Just pennies being sold.
Nothing at all.
Good Luck to you
Seems like the shorts are winning today and may win today but will not win this week, month, quarter or year.
It is a personal feeling I am getting and with all the DD I have been doing.
Best of Luck to all Longs.
This time, HLNT will not be held down.
I honestly believe there are people out there that want this to fail and possibly illegally naked shorting this stock.
Good Luck
LOL, yes Jay hit the ask just for a cool million shares please.
Hlnt is waiting for you and so are we
LONGS posting on here! Exactly what we need and we need others!
Longs, say hello. Post something
Love what is happening here at HLNT land
Jason, we will have an HLNT party in Vegas at the Wynn next spring 2013.
Your Level 2, please Nik, when you have a moment
TIA
RAVMN,I am will you and been here 2 years and 1 month and def feel and hear you 100000%
It is time and it will happen
Loan Guy, hello my friend. We need to see this from all longs on IHUB, especially in days like today when we hit another mini milestone again of 30.
It just puts more eyes on the stock, imo before the PR
NIKO, YOUR Level 2 post please?
Thanks in advance
Those bid whackers are not investors selling. Those are illegal shorts or illegal naked shorts keeping a rope on HLNT
Just look at the actual volume of trades.... All weird off lots.
I like seeing the tape at 30 and imo, will be higher today
If we want more eyes on this, WE NEED POSTERS.
Where is everyone at on a monday morning when this is at 30?
We need for all HLNT holders to start posting everyday, even if one post to get more eyes on this.
Longs, where are you at, say HELLO
LOVE the play by play assets LMAO Niko, just saw 30's hitting.
I do see it wants to hit 38 on Level 2.
Where is everyone at?
I see that.. Extremely encouraging to see that ask at 30 and very thin
Stop Selling and get more later on in the week.
Lay off that ask and get more for your shares.
Good Luck to all and have a great day to all
DONG FENG MOTORS- that's all I care for as it's a JV with a
HUGE COMPANY. Everything else will fall into place when the time comes.
Hope they sell them to me... I will be happy to pick more up as many other longs would.
Long and Strong
Remember that the 50DMA is trending up and catching up to the now trending up 200DMA. Remember that in the technical world, there is NO OTHER more BULLISH pattern than when the 50 crosses the 200 both on the uptrend.
This could be days away. Of course news could send this out of orbit before then.
Just a thought for the day and week.
NEW week, new traders and investors. Let's remember the grand prize and remember what is in the pipeline.
Please remember to tell your friends and hit that ask for those that are averaging in.
Good Luck to a great week and a great remainder of MAY
Bank on it.
I do believe the PR's will start very VERY soon.
Just too much in the pipeline and this I do personally know.
JasonMills, is this the week?