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guess it's possible ATUL may still be on the right track ...
were you really surprised at ATUL?
http://www.army-technology.com/contractors/navigation/business_security/
also ,,,
... Cisco uses hardware encryption cards to speed up- rather to take the encryption
load off of the CPU, so if you had 70 ipsec tunnels, the CPU wouldn't have to ...
www.experts-exchange.com/Security/Q_20929507.html - 56k - Cached - Similar pages
HH you're raining on her parade ... LOL
ff, do you get a kick out of opening old wounds?
hh, Intel pps did the same thing ... the significance here is that the market in general is still in its severe decline ... it may be years before we see it back to what my opinion of normal is ... many stocks at or below their lows as far back as 1993 -1995 levels ... good luck to anyone with the guts to be in this market ...
you're analogy is a
play on words ... come on ...
Why not bold the whole statement?
or maybe just the first paragraph ...
We are currently focusing development, sales, marketing, and support efforts
chiefly on platform and product development opportunities for OEM and ODM
customers and licensees in portable digital entertainment device markets. This
includes automotive entertainment systems. Our objective is to have our
operating systems and application designs play major roles in the growing market
for portable digital devices. Our designs are capable of playing music files
encoded in a number of different music compression formats, and can support a
number of different DRM's. The exterior appearance, button layout, and feature
set in these designs are customizable according to OEM customers' needs. We
believe our flexibility is important as the portable digital audio player (DAP)
and portable digital video industries face choices of competing compression
formats, DRM's, and storage media.
FOR IMMEDIATE RELEASE
e.DIGITAL ANNOUNCES MANAGEMENT REALIGNMENT; PROVIDES BUSINESS UPDATE AND REVENUE GUIDANCE
Closing $1 Million Note Financing to Support Growing OEM/ODM Business
(SAN DIEGO, CA. – July 1, 2004) – e.Digital Corporation (OTC: EDIG) today announced a realignment of management responsibilities and a $1 million note financing to support its increasing original equipment manufacturer (OEM) and original design manufacturer (ODM) business. Atul Anandpura, the Company’s senior vice president of engineering/research and development, has been promoted by e.Digital’s Board of Directors to president and chief executive officer. Fred Falk has stepped down as the Company’s president and chief executive officer and resigned from the Board. Falk has been appointed vice president of business development over the Company’s personal video technology platform (PVTP), and will devote fulltime service to managing and growing e.Digital’s in-flight entertainment (IFE) and portable video player/recorder (PVPR) business. Anandpura has also been appointed to the Board position previously held by Falk.
“With the enhancements to our proprietary technology platforms and increasing OEM/ODM business being derived from them, we have realigned management resources to maximize our potential for business and revenue growth,” said Alex Diaz, e.Digital’s Chairman of the Board. “We appreciate Fred’s leadership and many contributions over the last nine years. We are pleased to have Fred’s talents, experience and efforts devoted to our burgeoning IFE and PVPR business opportunities.”
“Atul has proven experience in building and managing effective engineering teams, managing OEM/ODM relationships and has extensive manufacturing, sales, marketing and operations acumen,” said Falk. “I am confident in his leadership and excited to be able to dedicate my full attention to accelerating business and revenue growth through the release of OEM/ODM-branded products derived from our personal video technology platform.”
Diaz continued, “Since his hiring in 1999, Atul Anandpura has worked diligently with our engineering team, turning our engineering and research and development efforts into increasingly sought after OEM/ODM solutions. The Board and the employees of the Company have full confidence in Atul’s leadership. We will work together, with our customers, partners and associates, to realize the potential of e.Digital and our technology platforms.”
“I appreciate the trust the Board has placed in me,” said Anandpura. “We are experiencing increasing business and licensing opportunities, particularly for customized solutions derived from our MicroOS™-based personal video and digital audio technology platforms. For this reason, we have obtained $1 million in subordinated note financing from accredited investors to grow both our San Diego and India-based engineering resources. However, we are only adding engineering resources as we generate new business thereby keeping overall expenditures to a minimum. With Fred and Steve Ferguson fully focused on business development, our management team is now better aligned to close further licensing agreements and support new and existing customers.”
Details of the note financing will be filed by the Company with the Securities and Exchange Commission on Form 8-K upon final closing.
Demand for Digital Audio and Portable Video Platforms Increasing
The Company also announced it is experiencing increasing demand for customized solutions of its proprietary digital audio platform (DAP) utilizing 1” hard disk drives (HDD) from Hitachi, Toshiba, Seagate, Cornice, Magicstor and others. “Because of Seagate’s recent aggressive entry into the 1” HDD space, most of the OEM/ODM customers utilizing our DAP are pushing their product releases into late summer and early fall to take advantage of expected lower HDD costs,” said Anandpura. “We do not expect the delays will effect the sales forecasts provided to us by the OEMs/ODMs.”
e.Digital’s business derived from its proprietary personal video technology platform is increasing due to recent IFE orders placed by Aircraft Protective Systems (APS) and substantial interest in the Company’s recently developed PVPR. In the quarter ended June 30, e.Digital received orders for 3,270 digEplayer™ units from APS for Alaska Airlines, JetsGo and Hawaiian Airlines. More orders are expected this second fiscal quarter and continuing throughout fiscal 2005.
“Through APS’ excellent sales and marketing efforts, there is an increasing demand from the airlines and other companies in the travel and leisure industry for this powerful, portable entertainment device,” said Falk. “We are working with APS on the next generation digEplayer which will contain enhancements and new features.”
Falk continued, “We are working with satellite and cable providers interested in offering branded versions of our recently unveiled PVPR, featuring 3.5” and 7” screens and DAP capability, to their subscribers, enabling them to take their favorite video and audio content wherever they go. These opportunities have the potential for substantial opening orders because of the large installed subscriber bases of these companies.”
Falk concluded, “While we have experienced delays due mainly to customers exploring the utilization of 1” HDDs instead of 1.8” HDDs, we are also making progress with large Asian OEMs/ODMs on versions of a combined PVPR/DAP.”
Revenue Guidance and Other Developments
Commenting on the Eclipse by Fujitsu Ten (EF10) arbitration process, Anandpura remarked, “Our arbitration demand is proceeding. We remain confident in our position while remaining open to a mutually agreeable settlement through mediation. While an arbitration date has not been set, we expect the arbitration process will be completed before the end of calendar 2004.”
The Company also announced today that it has ceased providing customer support, accessories or repairs for its previous line of branded products discontinued in December 2003. “We are focusing our engineering and technical resources on supporting the growth of our OEM/ODM business,” said Anandpura. “We will honor all warranties and extended warranties until they expire.”
Anandpura continued, “Our current and future business outlook is improving. We are utilizing our engineering resources in San Diego to stay at the forefront of technology developments and integrating them into our proprietary technology platforms, including the incorporation of emerging wireless standards. We are utilizing engineering resources in India for the customization of products based on our technology platforms for our OEM/ODM clients.”
Anandpura concluded, “Most of the business we realized in the June quarter is scheduled to be shipped and accounted for in this fiscal quarter. As of today, we have more than $2 million in booked orders for the first six months of fiscal 2005 (ending September 30, 2004) and, we have received large deposits for many of these orders. With further orders anticipated, we expect to be ahead of last year for the same six month period and record the best fiscal second quarter revenues in e.Digital’s history.”
About e.Digital Corporation: e.Digital Corporation partners with leading original equipment manufacturers (OEMs) and original design manufacturers (ODMs) licensing, designing and providing manufacturing services for OEM/ODM-branded digital video, digital audio and wireless products based on the Company’s proprietary MicroOS™-enabled technology platforms. e.Digital specializes in the delivery and management of open and secure digital content through its Personal Video, Digital Audio, Wireless, and Automotive technology platforms. e.Digital’s services include the licensing of the Company’s MicroOS™, custom software and hardware development, industrial design, and manufacturing services through the Company’s manufacturing partners. For more information about e.Digital and its technology platforms, please visit the company website at www.edigital.com.
Safe Harbor statement under the Private Securities Litigation Reform of 1995: All statements made in this document, other than statements of historical fact, are forward-looking statements. Forward-looking statements are based on the then-current expectations, beliefs, assumptions, estimates and forecasts about the businesses of the Company and the industries and markets in which the company operates. Those statements are not guarantees of future performance and involve risks, uncertainties and assumptions that will be difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by those forward-looking statements. More information about potential factors that could affect the Company can be found in its most recent Form 10-K, Form 10-Q and other reports and statements filed by e.Digital Corporation with the Securities and Exchange Commission (“SEC”). e.Digital Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated by it.
###
CONTACT: e.Digital Corporation: Robert Putnam (858) 679-1504 rputnam@edigital.com
Posted on Thursday, July 01 @ 09:38:56 CDT by edig_admin
and I consider what you do with your comments equal
to any brainwash out there ... you want longs to commit
to your way of thinking ... on second thought I believe
that your brainwash would fall under the description of witchcraft ...
(no sarcasm intended) ...
anyone know about this ... story is now unavailable ...
http://news.google.com/news?q=silver%20star%20energy&hl=en&lr=&ie=UTF-8&sa=N&tab....
Silver Star Energy probed for 'pump and dump' stock fraud
Vancouver Sun, Canada - May 22, 2004
Vancouver's stock market cops have alleged that Silver Star Energy Inc., which is run from a suite of offices at the entrance to Granville Island, is a classic ...
furthur search gave me this ... some site offering the story
for sale I believe ...
http://www.fpinfomart.ca/ar/ar_result.php?page=1
Archives Search Results
New Search / Edit Search / Search in results
( silver star energy ) in... 1-2 of 2 condensed hits. (2 individual hits.)
10 20 50 100 200 hits per page. Page: 1
SELECTED ITEMS SELECT ALL
Silver Star Energy probed for 'pump and dump' stock fraud: Market cops allege that at least five men closely involved in the company participated
Vancouver's stock market cops have alleged that Silver Star Energy Inc., which is run from a suite of offices at the entrance to Granville Island, is a classic "pump and dump" stock fraud. According...
Byline: David Baines, Source: Vancouver Sun
Page: H1 / FRONT, Edition: Final
$4.75 - Vancouver Sun - Sat, May 22, 2004 - 1365 words
Column: RCMP raid Beacons Gate offices: STOCKS I Controversial firm believed to be promoted out of a site on West Second
The offices of a Vancouver company whose principals are believed to be involved in the promotion of Silver Star Energy Inc. were raided Friday by members of Vancouver's new RCMP Integrated Market...
Byline: David Baines, Source: Vancouver Sun
Page: H1 / FRONT, Edition: Final
$4.75 - Vancouver Sun - Sat, Feb 28, 2004 - 1085 words
SELECTED ITEMS SELECT ALL
http://www.marketwire.com/mw/release_html_b1?release_id=68855
Completion Rig Arrives to Test Gas Discovery at North Franklin Project
LOS ANGELES, CA -- (MARKET WIRE) -- 06/18/2004 -- Silver Star Energy, Inc. (OTC BB: SVSE) is pleased to announce that the completion program at the "Archer-Whitney #1" well, at the North Franklin Project is underway.
The completion rig arrived on site yesterday afternoon and is beginning preparations to perforate and flow test the discovery. This information will help verify the full potential of this discovery.
The North Franklin Project is located in the Sacramento Basin of California and is situated along the "Eastside Winters Stratigraphic Trend" which has produced in excess of 450 Bcf gas. The objective gas reservoir target at North Franklin is in the Winters Formation. Fidelis has a 35% interest in the play.
Highlighted Links
Silver Star Energy
ABOUT SILVER STAR ENERGY, INC.
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high quality, low risk prospects provided via key strategic alliance partnerships.
Safe harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Silver Star Energy, Inc. has little or no control.
ON BEHALF OF THE BOARD
Silver Star Energy.
"Robert McIntosh"
Robert McIntosh-President
To find out more about Silver Star Energy, Inc. (OTC BB: SVSE), visit our website at www.silverstarenergy.com.
--------------------------------------------------------------------------------
Contact Investor Relations:
Long Communications
1-866-739-6727
Silver Star Energy, Inc.
he's just having a good morning ...
the emperor has clothes ...
ok then since most of the volume was at the
higer pps , your analogy suggests that there
were more buyers than sellers ????
dump shares ? not a lot of buying interest ?
when someone is "dumping" isn't there someone buying ?
that would have to be a guess - a pps can behave
just the opposite of what appears to be happening ...
let's hope ... BTW I didn't like the close either ...
Have same problem - think I messed up the way it was
supposed to be connected to power when working with
the player and pc ... ?????
I think because Gateway may do a bigger
business than owd3 ...
5/12/2004 12:17:45 PM News Release Index
Silver Star to Spud Archer-Whitney #1 Well -- North Franklin Project
http://www.integratir.com/newsrelease.asp?news=2130828235&ticker=SVSE&lang=EN
LOS ANGELES, CA, May. 12, 2004 (MARKET WIRE via COMTEX) --
Silver Star Energy, Inc. (OTC BB: SVSE) today announces that the Company is preparing to spud the 'Archer-Whitney #1'well at the North Franklin Project, in the Sacramento Basin of California. Drilling funds have been advanced to the operator totaling $500,000 under the terms of the AFE (Authority for Expenditure) for the initial 7,800 foot test well. The well location has been chosen, surveyed and permitted.
In addition, the Company has been informed that a drill contract has been signed and a drilling rig is currently being mobilized. Silver Star anticipates a spud date of the well to be on May 14, 2004. The well location has been surveyed and permitted. Expected tie-in costs of a successful well are estimated at $300,000 as the prospect is proximal to existing gas infrastructure in the area.
The project is situated along the 'Eastside Winters Stratigraphic Trend'which has produced in excess of 450 Bcf gas. The North Franklin is located in Sacramento County, between the cities of Stockton and Sacramento. The North Franklin Project has, under lease, approximately 1,000 gross acres. The multi-objective gas reservoir target is thick, deep-water basin Winters Formation sands that are permeable, upper Cretaceous sandstones. Based on 450-acre closure, the potential prospect reserves are estimated at 40.5 Bcf of gas with analog wells nearby having initial production rates of 7,000 mcf per day.
Silver Star has retained a 40% interest in the play and has farmed out a 20% interest to Fidelis Energy, Inc. for an additional $250,000 giving Fidelis a 35% working interest. Other partners in the play are Archer Exploration, Inc. and the operator of the project, Longbow LLC of Bakersfield.
ABOUT SILVER STAR ENERGY, INC.
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high quality, low risk prospects provided via key strategic alliance partnerships.
Safe harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Silver Star Energy, Inc. has little or no control.
ON BEHALF OF THE BOARD
Silver Star Energy. 'Robert McIntosh' Robert McIntosh-President
To find out more about Silver Star Energy, Inc. (OTC BB: SVSE), visit our website at www.silverstarenergy.com.
Contact Investor Relations: Long Communications 1-866-739-6727 Silver Star Energy, Inc.
SOURCE: Silver Star Energy, Inc
Copyright 2004 Market Wire, All rights reserved
when I see my portfolio suffer _ I believe that is my fault ...
4/22/2004 9:04:25 AM News Release Index
Silver Star to Partner With Fidelis Energy at North Franklin Project -- Updates Evi Project Progress
LOS ANGELES, CA, Apr. 22, 2004 (MARKET WIRE via COMTEX) --
Silver Star Energy, Inc. (OTC BB: SVSE) today announces that the Company has farmed-out a 15% working interest in the North Franklin Project to Fidelis Energy, Inc. Under the terms of the agreement, Fidelis will contribute $250,000 towards the drilling and completion of the 'Archer-Whitney #1'well and participate as a full working interest partner on all further costs including drilling of any additional wells on the project.
In a news release dated April 13, 2004, Silver Star released details of the North Franklin Project, the first major gas play that Silver Star has acquired in the Sacramento Basin of California. The project is situated along the 'Eastside Winters Stratigraphic Trend'which has produced in excess of 450 Bcf gas. The North Franklin is located in Sacramento County, between the cities of Stockton and Sacramento. The project has, under lease, approximately 1,000 gross acres. The multi-objective gas reservoir target is thick, deep-water basin Winters Formation with potential prospect reserves estimated at 40.5 Bcf gas.
Silver Star has retained a 75% working interest in the play with Archer Exploration, Inc. and the operator of the project, Longbow LLC of Bakersfield retaining a 10% interest. Archer has elected to participate fully under the terms of the agreement.
The initial 7,800 foot test well, named 'Archer-Whitney #1'has an estimated cost of $615,000 through completion. The well location has been chosen, surveyed and permitted. Expected tie-in costs of a successful well are estimated at $300,000 as the prospect is proximal to existing gas infrastructure in the area. Silver Star anticipates the spud date of the well to be in early May as a rig contract will be signed shortly.
In related news, Silver Star also wishes to update the activities at the Evi Project in Alberta. The 7-11 well completion is underway though it has been temporarily suspended due to the Alberta Government imposed road restrictions. During spring break-up, road bans are effective each year and all heavy equipment is restricted until such time as weather permits. The Company is monitoring the situation on a daily basis and expects the 7-11 well completion, flow testing and evaluation of the multiple-hydrocarbon bearing formations encountered to re-commence shortly.
ABOUT SILVER STAR ENERGY, INC.
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high quality, low risk prospects provided via key strategic alliance partnerships.
Safe harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Silver Star Energy, Inc. has little or no control.
ON BEHALF OF THE BOARD Silver Star Energy. 'Robert McIntosh' Robert McIntosh-President
To find out more about Silver Star Energy, Inc. (OTC BB: SVSE), visit our website at www.silverstarenergy.com.
Contact Investor Relations: Long Communications 1-866-739-6727
SOURCE: Silver Star Energy, Inc.
Copyright 2004 Market Wire, All rights reserved.
resqjuc, how do you know they are selling well?
thank you so much
test: rollingrock,who patented what technology?
Q: Couldn't a bigger, better financed competitor just duplicate your product and steal your customers?
A: This is a very carefully patented technology. The board made sure we were well protected.
http://www.tribnet.com/business/story/4927420p-4861025c.html
Taking over as pilot of a high-flying venture
JOHN GILLIE; The News Tribune
Sometime in the life of most growing enterprises, the inventiveness, energy and passion of the founders are no longer enough to keep the business from drowning in its own success.
That time came early this year at Tacoma's APS Inc., when founder Bill Boyer realized his fledgling portable electronic entertainment company needed help from the practiced hand of a seasoned executive.
Boyer, a former Alaska Airlines baggage handler, and his close-knit staff have turned his idea for a portable movie player into an airline industry phenomenon.
The digEplayer, smaller than a notebook computer, has a 10-hour battery life. It can store and play dozens of full-length movies and television programs on its hard drive. It's designed to be rented to airline passengers for about $10 per long-haul flight.
His old employer, Alaska Airlines, signed a contract for thousands of APS' portable digEplayers for its longest routes, and a dozen other airlines from United to Hawaiian have expressed serious interest.
Lakewood resident Boyer, the consummate salesman, found himself constantly on the road traveling to cities as distant as Honolulu and Dublin, demonstrating his player and talking with airline executives about its potential.
That's when he sought out an experienced aviation industry veteran to become APS president. The man Boyer and his board chose was Sheldon Best.
At 63, Best's resumé includes a broad variety of aviation leadership positions spanning four decades. Best was once a top lieutenant to legendary United Airlines CEO Eddie Carlson. He rescued Air Cal from oblivion and engineered its sale to American Airlines.
He headed Aerospatiale's first aircraft sales in the United States. He helped found aircraft leasing company Boullion Aviation, and helped jump-start sales of aerodynamic winglets for airliners at Aviation Partners Boeing.
Best talked with The News Tribune about his role at APS.
Q: What attracted you to APS?
A: I just have a tremendous respect for entrepreneurial guys like Bill Boyer. This is a dream program. What more could a guy want?
At my time in life, I think I can bring a lot to APS.
Q: How will the company benefit from your presence?
A: I've worked for and with major airlines. I've started up companies, and I've turned them around.
My being here allows Bill to do what he does best: be in front of the customer with his passion and belief. From me, they get contacts worldwide.
It gives our company additional credibility. It gives us market reach that we didn't have before. We're looking at strategic partnerships, financing relationships and taking this company to the next level.
Q: What markets do you see for the digEplayer?
A: I think Alaska and Hawaiian (APS' pioneer users) are just the tip of the spear. We're engaged in discussions not only with the profitable low-cost carriers but with the established major airlines.
I think the possibilities are unlimited. Hotels, hospitals and cruise ships are all good potential markets.
But for now, we've got to keep focused on our core markets. Once we've got those secured, we can branch out.
Q: Beyond selling the product, what's important?
A: We're making sure that we're supportive. Anything we promise a customer, we've got to deliver.
Q: How big could APS become?
A: We're not here to build a big company, but a profitable one.
That's one thing I learned early on in the airline business. You don't have to be the biggest to be the most profitable.
I remember United bragging that it flew to all 50 states. I wondered why. Did they make money flying to North Dakota or Maine or Vermont or Mississippi? No. Then why did they fly there?
Q: Couldn't a bigger, better financed competitor just duplicate your product and steal your customers?
A: This is a very carefully patented technology. The board made sure we were well protected.
John Gillie: 253-597-8663
john.gillie@mail.tribnet.com
Sheldon Best
Age: 63
Family: Married with four daughters, five grandchildren
Education: Texas A&M University
Background: Began career in 1968 as United Airlines management trainee, quickly rose to become United CEO Eddie Carlson's top assistant and later vice president of West Coast operations. After stints with Continental Airlines, Air Cal, European aircraft maker Aerospatiale and aircraft leasing company Boullion Aviation, he worked with Aviation Partners Boeing to sell fuel-saving winglets for airliners and corporate jets.
Hobbies: Golf, tennis, walking, reading
(Published 1:46AM, April 5th, 2004)
How many times can a personality split?
cheerio
while many are concerned about the battery -
won't this particular gen of Ipods be obsolete
within the year?
MH - why not sell short when price was much higher?
like dec and jan ...
is there an explanation why volume for last month
is so low with all that short selling - BTW I don't
buy in to the shortselling conspiracy - MM's aren't
there to accomodate the so called sharpshooters
Monthly PricesDate Open High Low Close Volume
09/30/03 0.340 0.550 0.320 0.470 18,251,400
10/31/03 0.460 0.490 0.370 0.410 7,796,800
11/30/03 0.391 0.625 0.375 0.530 13,809,900
12/31/03 0.520 0.600 0.425 0.515 10,831,300
01/31/04 0.520 0.630 0.430 0.480 10,815,600
02/29/04 0.460 0.560 0.320 0.400 8,797,300
03/18/04 0.420 0.420 0.300 0.320 3,574,100
yeah, you're so right - I would want to watch the movies
all 13 hours - that way I would get no sleep - glad you
thought of it first ... is owd3 still a saint?
If the truth is hidden, how would one know how it's being done.
thanks emit - owd3 must have forgotten ...
guess he opted to sell at a lower price ...
By: MUGSYMAC
16 Feb 2004, 03:30 PM EST
Msg. 10699 of 10699
Jump to msg. #
OT: 'Naked selling' scam shorts share value, they allege
Mike W. Thomas
Just six months ago, Tidelands Oil & Gas (OTCBB: TIDE.OB) saw its stock fall to 12 cents a share from a high of $4. For the next three months, the company's stock price slowly began to climb back up until it went above $2 per share. Then suddenly in November, the stock began to dive once again, dropping nearly $1 in one afternoon.
Company founder and CEO Michael Ward issued a statement at the time stating that there had been no change in the company's business developments that would support such a decline in the stock price.
"In fact, we recently announced our first pipeline crossing into Mexico at Piedras Negras and Eagle Pass on Nov. 10, 2003, which marked a milestone in the history of our company," Ward said.
So how could good news for the company, which had recently moved to San Antonio, result in a sudden decline in its stock price? According to Ward, the culprit was stock market manipulation.
"There is a large short position in our stock and we have good reason to believe that for a considerable amount of time our company's shares have been manipulated by these short-sellers," he says.
Short selling is a common practice on Wall Street where investors can borrow stock from a broker to sell with the hope that the stock price will decline before they have to return the shares back or cover their position.
But there is a seamier side to the practice of short-selling called "naked shorting" -- whereby groups of people can manipulate the market by selling fictitious shares of stock in an effort to force a company's share prices to go down.
These naked short sellers tend to prey on small companies whose shares trade on the over-the-counter bulletin boards. Ward says he believes his company became a target of the naked short sellers about two years ago.
"We have a huge short position on our stock," Ward says. "The people who are shorting our stock have deep pockets and they really had us on the pavement at one time. The only way we have been able to weather the storm is because we have a good, large shareholder base."
In certain cases involving legitimate market makers, naked short selling is a legal practice. However, Ward claims more and more small companies are being victimized by illegal naked-shorting schemes carried out by unscrupulous players.
Perseverance
Gene Kazlow, a New York-based investor who controls about a million shares of Tidelands stock, says the naked short sellers may have finally met their match in Tidelands' case, though.
"Tidelands is about 40 or 50 million shares short, so this stock is going to explode when they get some really great news, which I think is imminent," Kazlow says. "I think some shorts are starting to cover now because this stock could go to 20, 30, 40, 50 dollars."
An investor holding a legitimate short position on a stock has borrowed and sold stock on the bet that the stock price will decline, at which point the investor can buy back shares at the lower price to cover his position. If, however, the share price increases, the investor has to purchase the stock at the higher price to replace the borrowed shares and is out the difference.
In an illegal naked short-selling scheme, the "investor" doesn't bother borrowing the stock and churns the same shadow shares in multiple short sales. That fraud is at risk of being compromised if the stock price increases.
"These people (naked short sellers) have tens of millions of dollars at stake and they have an investment in being right," Kazlow continues. "There are many different groups, some of whom work in concert with each other, and they don't trade under their own names. They trade under the cover of offshore corporations and they live in a gray area. They probably don't pay taxes and they are criminals.
"You can't prove it and you're not going to catch them, but we are going to punish them on this stock."
Ward says he believes Tidelands' perseverance may have finally allowed it to escape the short sellers' grasp. The company's stock is now past $3 per share and climbing. If that is the case, they would be one of the few to survive the ordeal, according to James Christian, a Houston-based attorney who along with John O'Quinn has represented hundreds of companies in lawsuits alleging naked short selling. O'Quinn is renowned for having won billions in settlements and verdicts against companies that make cigarettes, breast implants and other products.
Fighting back
One of Christian's and O'Quinn's clients is San Antonio-based ATSI Communications Inc. (OTCBB: ATSC.PK), which filed a lawsuit a year ago alleging that two groups of investors engaged in naked short selling of its stocks. The ATSI case is still pending before the U.S. District Court in the Southern District of New York.
"We think this entire matter has impacted thousands of public companies," Christian says. "Our economist says the market-cap loss to those companies just based on the fraud (illegal naked shorting) is about $700 billion to $1 trillion."
Christian says the average decline in value for companies that have been victimized by naked shorting is 94 percent. Most of those companies have been forced out of business, he adds.
ATSI's board of directors addressed their situation in their most recent Schedule 14A filing with the Securities and Exchange Commission (SEC):
"We believe that the price of our common stock may be artificially depressed due to abnormally high short-selling by speculators who are not stockholders. We believe that these sales are conducted through a practice commonly known as a 'naked short' sale. Certain brokers may have permitted their customers to sell shares that are neither owned by such customers nor borrowed from another stockholder. As a result, the broker has not delivered the shares sold to the purchasers.
"If this practice is widespread, it creates severe pressure on the price of our stock since there is no limit on the number of shares that are traded."
ATSI CEO Art Smith says the company is currently undergoing a re-incorporation in Nevada in an effort to shine a light on some of the people who have been driving the company's stock price down.
"An important reason why we are going through this reincorporation in Nevada is to squeeze out some of these guys that have been naked short selling," Smith says. "The re-incorporation in Nevada will permit us to require the delivery of certificates representing our shares for exchange in connection with the re-incorporation or subsequent changes in our capital structure. We believe that the practice of naked short sales, and the depression or our stock price which it has caused, will be discouraged as a result of the merger."
Criminal elements
Getting a bead on who is manipulating the market through naked short selling is difficult at best. Most of the illicit trades are carried out using shell companies based overseas, Christian says. But recent sting operations carried out by federal authorities have revealed the involvement of all five major crime families, he adds.
"This is one of the largest commercial frauds in U.S. history," Christian says. "It is financial terrorism on America."
Christian says that any small company sucked into a naked-shorting scheme faces an uphill climb in preventing their stock from going into a death spiral.
"We have companies that have traded more shares in one day than they have issued and outstanding," Christian says. "We have several companies who in 90-day periods have traded 170 million shares while only 50 million of those shares have cleared. The difference is naked shorts."
The gatekeepers
Christian says the practice of naked short selling is supported by an intricate web of broker dealers, clearing firms and offshore companies. He even puts part of the blame for the continuing problem on structural issues within the Depository Trust Co. (DTC), which oversees the electronic exchange of stocks.
The DTC, a subsidiary of the Depository Trust & Clearing Corp., is a member of the U.S. Federal Reserve System. DTC operates as a limited-purpose trust company under New York State banking law and is a registered clearing agency with the SEC.
The depository was established to bring efficiency to the securities industry by retaining custody of some 2 million securities issues, effectively "dematerializing" most of them so that they exist only as electronic files rather than as countless pieces of paper.
Tidelands CEO Michael Ward, who is considering taking legal action against naked short sellers similar to that taken by ATSI, says the weak link in the current DTC electronic trading system is the lag time involved in delivering the stock certificates that people are purporting to sell.
"Because it is all done electronically, the actual stock certificates don't trade hands until days later, if at all," Ward says.
In a statement last year, the DTC denied that it facilitates naked shorting in any way:
"DTC rules do not allow its participants to be short in deliveries to other participant firms. While a brokerage firm can lend shares to an investor, the brokerage firm cannot be short in delivering shares to another brokerage firm through DTC. If necessary, a firm can and must borrow shares from one or more brokerage firms that currently have enough shares in inventory to lend. Brokers who fail to deliver shares owed at DTC are subject to penalties."
But Ward says such penalties are rarely handed out. Such lax enforcement is one of the reasons Tidelands attempted to exit the DTC's electronic trading system last year before the SEC stopped them. The SEC began in 1999 looking at making changes to its short-selling rules to address some of the concerns raised by companies like Tidelands, but it has yet to take action.
"The SEC says they will do something," Ward says. "I think that they will spank a few hands, but it will take years to reform the system."
© 2004 American City Business Journals Inc
great statement - How many shares would you estimate that
they are holding? LOL about 155 million?
It's a sure thing EDIG will still be in business come April 2, 2004.
"e.Digital has begun a pattern of having webcasts a day or days before it files"
Does e.Digital really have any control over when it "flies" ?
guess austonia doesn't get that much back from IRS if
he used the player as a legitimate tax deduction ... LOL
always a step behind?
do they have to take 5 years to buy them?
Law firm considering iPod battery class action suit
By Peter Cohen pcohen@maccentral.com
December 23, 2003 12:00 pm ET
Even though Apple now offers battery replacements for out-of-warranty iPods as part of its AppleCare service, it's an issue that refuses to go away. Now it appears that a San Francisco, Calif.-based law firm is getting into the act.
http://maccentral.macworld.com/news/2003/12/23/ipodsuit/
iPods were first introduced in October, 2001 and quickly became the item that almost everyone who was playing MP3s on their computer wanted -- especially once Apple introduced a Windows-compatible version. Now that Apple's iTunes software and iTunes Music Store works on Windows, demand is higher than ever. But some owners who have had their iPods for a while have noted that the diminutive device's ability to hold an electrical charge in its tiny lithium-ion polymer battery can diminish over time ...
guess you could say that the IPOD battery
turned out to be bull soup instead of chicken salad ...