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You are right. Could not access the web site either.
The Yahoo page states: "No websites available for OSEE.OB"
http://finance.yahoo.com/q/pr?s=osee.ob
The latest news: "For the nine months ended 9/26/04, revenues rose 46% to $3.5 million. Net loss applicable to Comm. from continuing operations decreased 48% to $1 million. Revenues reflect the overall recovery of the semiconductor industry. Lower loss also reflects a decrease in selling expenses."
I checked for any recent SEC fillings, and is nothing from the last Q in November.
I expect further improving financials, since the Semi as a whole has been picking up quite a bit lately.
Mike
Zetti, don't know about next week, but most definitevely OSEE is due for a nice rebound very soon.
http://www.ddmachine.com/default.asp?s=osee.ob
Low float, good business, improving financials = nice move ahead.
Problem is, except for a few folks on RB board, no many other boards are active on OSEE.
http://www.boardcentral.com/aios/aios.cgi
This will change as soon as it decides to move. Hope the Q (due early next month), should trigger a nice move. Then the K (due late March) if as good as I expect it to be should move it above 0.1, where it really belongs.
PS: In the mean time, check out GDVI. Another sleeper, that I expect to jump quite a bit very soon. Good, steady financials, and for some reason it's just at ~0.06 right now (from 0.33 high last year), although financials and prospects look a lot better now. Expected to close any day now the acquisition (in very advantageous terms) of another (larger) construction company (Aurora).
Mike
FYI: Yokogawa Electric Develops World's First 40Gbps Optical Packet Network System
Tokyo (JCNN) - Yokogawa Electric (TSE: 6841) has announced that it has successfully demonstrated the transmission of video data using a 40Gbps optical packet networking system it has prototyped.
The system consists of a 40Gbps optical packet switch with optical buffering functionality and an optical media manager device, allowing each PC terminal to directly exchange data over a high-speed optical packet network.
The prototype network enables 10 PC users to simultaneously access a server and download 2-hour DVD video data in approximately 10 seconds.
Yokogawa Electric plans to commercialize the system in 2006, aiming to generate sales of 100 billion yen ($980.4 mil) in optical communications devices in 2010.
The company is disclosing the experiment results at the FIBER OPTICS EXPO (FOE) 2005 (January 19 E21, Tokyo Big Sight).
Scam. See for yourselves:
http://finance.yahoo.com/q/hp?s=LVSG.OB&a=10&b=12&c=2001&d=00&e=21&f=2005&am...
My advice: get out ASAP!
Mike
George, and everyone else,
to access RB and the Yahoo board (and for a good DD), go to the DD Machine:
http://www.ddmachine.com/default.asp?s=mobl.ob
For all the other MB's (including RB), you can use the Board Central (mark all MB's, and chose 25 Msgs):
http://www.boardcentral.com/aios/aios.cgi
Mike
Closing Aurora, and the deal significance.
Buying Aurora for 3MM (as per the last PR - if it holds), when only the raw materials are worth 4MM:
http://www.cmaauctions.com/auctions/past_auctions/176_aurora.shtml
http://biz.yahoo.com/prnews/041207/latu055_1.html
For now, all that we know about the deal:
"Global Diversified estimates the value of the agreement at approximately $3 million and has ten days to finalize the contract. Global Diversified included the option in the agreement to outright purchase the asset package from the other entity within two years. Global Diversified Industries, Inc. Chairman and CEO Phil Hamilton said that the Company is "fortunate to be able to combine these assets within our business arsenal, as they will undoubtedly generate pathways for future growth and profitability." Hamilton added that Global Diversified "expects to realize increased efficiency from our manufacturing process once we fully incorporate the Aurora production components in our facility. The total implementation of these assets should be finalized within the next 60 days."
Some other sites:
http://www.kellysearch.com/us-company-900254138.html
http://news.tradingcharts.com/futures/0/1/62369810.html
http://www.mbinet.org/winners/printable/aurora1.html
For now, based on the known data, I'm cautiously optimistic. This deal could move GDVI's business to a different level.
Good time to load more, IMO.
"The acquisition includes a two-year licensing agreement between Global Modular, Inc., the wholly owned subsidiary of Global Diversified, and Impact Modular Leasing. Included with the assets are various tool, die and patterns for production use, an option for piggyback contract rights, all intellectual property including state approved engineered designs, the Aurora Modular brand name and electronic domains including Web sites.
This agreement is especially significant because Aurora Modular Industries, Riverside, Calif., was a 38-year-old company whose product designs were always considered superior by end users and competitors, from both an aesthetic and quality perspective. This testimonial is supported by the fact that during the past six years, Aurora Modular supplied more two-story structures to California schools than any other modular provider. Also, Aurora Modular was the second largest manufacturer in California with annual sales reaching as high as $70 million. Its latest state approved designs encompass comprehensive single and two-story offerings, along with permanent modular construction (complete campuses).
Also, Aurora's closing has created a significant void in the California modular manufacturing market, especially in Southern California where Aurora was headquartered. Global Modular, Inc. has already benefited from their closing by booking several new contracts from previous Aurora customers. Its modular division will continue to aggressively implement strategic sales and marketing tactics to capture market share in both the Northern and Southern California regions."
Hope this goes through. If it does, we shall have a very nice ride ahead of us, IMO.
Mike
Me to! It went down to 0.0002 once again before the previous move to 0.0022. The financials look good, so this will move again. Just wait for some news, and enjoy the ride, IMO.
Do your DD:
http://www.ddmachine.com/default.asp?s=mmon.ob
Mike
-----------------------------
"I bought and doubled my position. I'm trying to buy more at .0002
It will move fast and won't stay at .0002-.0003 long. IMO"
Last PR:
Marmion Industries Corp. Announces Balance of Sales and Firm Purchase Order Figures
Thursday December 16, 9:33 am ET
HOUSTON, TX--(MARKET WIRE)--Dec 16, 2004 -- Marmion Industries Corp. (OTC BB:MMON.OB - News) today announced that, as of December 13, 2004, its Balance of Sales and Firm Purchase Orders totaled $1,402,677.99.
The Company's revenues to date as of December 13th 2004 stood at $1,052,403.39 with firm purchase orders not yet shipped coming in at $350,274.60.
Marmion Industries Corp. CEO W.H. Marmion commented, "We are confidant that by the end of the current fiscal year these figures should substantially eclipse the previous fiscal year."
PS: Hope you folks bought today, as I did. When it decides to move, it will move fast to over 0.01, IMO.
Mike
Regulation SHO Appears To Be Regulation SHO What
Source: OTC Jpurnal
The early reviews on Regulation SHO are in, and they are not favorable. According to some of the reviews I have read in the media recently, Regulation SHO seems to be turning into Regulation SHO What- meaning the SEC is just playing lip service to the many companies and shareholders who have been bitterly complaining about the widespread practice of illegal naked short selling. Read the January 4th edition for some background if you are not familiar with the issue.
According to David Patch who edits the "StockGate" electronic newsletter, there were originally 374 stocks on the Threshold list. Inexplicably, the vast majority simply disappeared. 110 are now left. Click Here to view the most current version of the list. Nearly every microcap company on the Bulletin Board and in the Pink Sheets that was originally on the list has now mysteriously disappeared.
Lending credibility to the entire issue was a paper recently published by University of New Mexico Professor Leslie Boni, which was initiated while the author was visiting financial economist at the SEC.
According to Professor Boni's findings, 42% of listed stocks at the New York Stock Exchange, NASDAQ and AMEX, and 47% of unlisted stocks in the OTCBB and Pink Sheets had persistent fails of 5 days or more with 4% being above the SEC's threshold limits for failures.
The media is calling the growing evidence of widespread abuse within the system as "StockGate", and some heavy legal entities are throwing their weight into the fight.
A consortium of law firms has now filed over 20 civil cases. The law firms include O'Quinn, Laminack & Pirtle, Christian Smith & Jewell, and Heard, Robins, Cloud, Lubel & Greenwood, LLP, all of Houston, Texas. This group of firms is well known for the gigantic awards they have been able to garner from the Tobacco industry.
In comments to the U.S. Securities and Exchange Commission, C. Austin Burrell, who is providing litigation support and research for the law firms, said that StockGate is more massive than anyone may have imagined. "Illegal Naked Short Selling has stripped hundreds of billions, if not TRILLIONS, of dollars from American investors," and have resulted in over 7,000 public companies having been "shorted out of existence over the past six years." Burrell said some experts believe as much as $1 trillion to $3 trillion has been lost to this practice.
According to the law suits, the DTC is at the heart of the problem. The DTC is the electronic clearing exchange that handles the electronic transfer of shares from one firm to another. The suits allege DTC has an inherent conflict of interest in the entire short selling scandal through the huge income stream they were realizing from it every day. They have made billions of dollars lending individual real shares, in most cases over and over, getting a fee each time they made a journal entry in a "Stock Borrow Program."
Most of the information in today's edition was gleaned from an article published yesterday in the online version of Investors Business Daily. It makes for fascinating reading. Click Here to read the article.
The DTC is owned jointly by the NASDAQ and the New York Stock Exchange. If billions in revenues are in fact being generated by the DTC for allowing failures to deliver, the law suits will eventually uncover the ugly truth.
In the interim, NBC's Dateline is rumored to be preparing a major expose on the issue, and activists in the growing StockGate scandal are trying to recruit Eliot Spitzer to help in the investigation. Stay tuned: This is getting exciting.
Level II looking good! Only NITE left @ 0.012. Bid is also building up. Anyone heard something?
Mike
That's great news! Thanks for posting.
Mike
"HEXS current O/S! 37,775,554! Just re-verified with T/A!!!"
What are your expectations? Anyone?
A 0.0015 to 0.002 run will happen very soon, IMO. What's your take on it?
Do your DD:
http://www.ddmachine.com/default.asp?s=nexh.ob
Mike
You are keeding! I'm MF over there.
Mike
Amasing, Pulpiteer from CBS MarketWatch MB, noticed him also, and basicly came to the same conclusion as you did:
Mike
-------------------------
Posted by Pulpiteer:
"That looks about right, ENGY is a SHO listed stock with an uncovered short position....and suprise surprise there's a basher on RB.
Probably works for one of the MMs caught short."
FreeRealtime.com. Use the Board central site, and you'll find him (Unde):
http://www.boardcentral.com/aios/aios.cgi
Mike
Ledrog, in two weeks we'll know. Hope the rule holds, in which case this will jump big time. ENGY was on all the naked short list forever, so there should be quite a few shares to cover.
Have you seen "Undi" bashing it on RB, and pumping it on the other board. What's wrong with that guy?
Mike
The only way this thing will get to 0.1 is for the Co. to go for a large R/S. So, yes, in this case you can get 0.1/share, but only if you get out among the first after that happens.
For now it's moving: down, down, down. Why? The answer is simple: dilution, dilution, dilution. Read the SEC fillings:
http://www.pinksheets.com/quote/filings.jsp?symbol=IVGA
They use all the diluting instruments that only a Nevada incorporated scam think best knows how to.
My advice: count your loses, and get out while you still have something left. That's AJIMHO. Do your DD (but do it well!) I see even some of the most dedicated pumpers over RB got out after the new S-8 today. Check them out:
http://www.boardcentral.com/aios/aios.cgi
Mike
1:200 R/S tomorrow:
http://www.otcbb.com/asp/dailylist_detail.asp?mkt_ctg=OTCBB&d=01/13/2005
Mike
Going, Going, GONE!
The last dump, IMO. I don't think the crooks will go for yet another R/S, but rather for chapter 7 exit.
Mike
Ledrog,
It looks like whomever shorted it is covering now. We shall see some spike here over the next few days, IMO.
Are you the same one as Ledrog from RB? If so, I see theUndefeted is very active today of FreeRealtime board. Check it out using the Board Central:
http://www.boardcentral.com/
Mike
Holding well under low volume is a good sign. A small "disturbance" and this will jump far, and fast.
Mike
QBID gave me the best return in a while. In @ 0.0001, and out @ 0.012 average (120x, not bad). They have a too large OS, so I stay away from it.
CIRT, I still have some shares. Wanted to buy more, but decided not to. The reason: the Mgmt. refuses to comunicate, and they let their PR companies to handle public relations. Since I'm a tech guy myself, I wanted to ask them some pertinent tech questions, but could not pass the PR company level. The Mgmt. (by name they seem to be related), either do not speack English, are too arogant, or who knows what else. W/o a proper dialogue, I plan getting my remaining shares out, although my initial set-up was a long-term holding. For instance, the PR company couldn't answer my question on when do they expect the poisonous Cornell funding (the main cause for the 0.03 price, IMO) will end.
I'll look into IBCS. Thanks!
PS: I changed late this AN my BUY order from 0.06 to 0.062, and got partially filled (35K). That is why GDVI started to move toward the EOD. Hope I'll to get the balance filled tomorrow morning. This stock will start moving very soon, IMO.
Mike
----------------------------------
"check out qbid i have been in this one for a few years waiting for cirt to run ,ibcs all have a good chance of some good profit,jmo quacker"
Butchmann, as a favor to other legit stocks, I call this think an imaginary caw that the two crooks (Rick and Flo), and their families were milking for way too long. The survival of this type of scam is shame for the OTC:BB, the SEC, and oh yes, Nevada.
Mike
OT: Big butts, I don't know about ASRO, but check out ZKID financials. Revenue of 3K and 1K, over the last two Q's, and quite a bit of debt:
http://finance.yahoo.com/q/hp?s=ZKID.OB
Now, check out the financials, and latest news on GDVI (just slightly higher PPS than ZKID right now), and you might see why I consider it to be a good growth stock.
Mike
I don't know your picks, but (besides MOBL), you might want to check: GDVI, VFIN, and COVD, which are among my true longs, and which for one reason or another are near the bottom, but poised for a nice rebound. I'll check out your picks, and let you know what I think.
PS: You are wrong about MMON (as a short-term play, that is). I truly believe it got a good chance to jump to over 0.01 in the very near future.
Mike
------------------------
"mike i wish u the best of luck with it,,,ive had enough heartaches from these subs,,ill stick with the more stable ones for now,,i posted earlier today about ASRO,,i honestly feel that has a real chance for growth not just a quick profit,,,keep a watch on it,,i dont own any but would like to,,if i was out of ZKID id buy ASRO"
Quaker, I see we are stationary. But, the good think is that no one is selling. On my four days order to buy 50,800 @0.06, I only got 100 this morning (the first buy), and like many times before the MM posted 0.055 (I guess they keep the change).
While wating for this (and COVD, MOBL, and VFIN which besides GDVI are my true longs) to go up, I'm playing some short-term ones: HEXS, TSBI, BTOO, CYBT, MMON, OSEE, PUPS, and NEXH. At the present price, the above are all low-risk, high reward short-term plays, IMO.
If you (or anyone else that might show up here) have some other good short-term bottom plays, would you please post them here?
Mike
Big butts,
The only way to recuperate your loss is to buy the same stock after it has reached the bottom. If I could do it with GAWD (DO NOT TOUCH IT for it's the absolute champion in big time R/S's - 3 of them last year), most probably this one (and the others I indicated to you on MOL board) will give your 10K back. I took a chance with GAWD (then GAWY - prior to the last R/S), and the 0.0003 to 0.015 run gave me back my losses. I'll try to do the same with the ZANN scam, after it goes down a bit more.
MMON has a very good chance to make a nice run very soon. As you see it's trying, and one of these days it will do it, IMO.
Hope this helps you,
Mike
--------------------
"I LOST EVERY CENT ON MMON AKA MRMN ALONG WITH MANY OTHERS,,ITS NOT WORTH THE RISK IF U ASK ME.. JMO"
BTOO, ready to move. It won't be long, IMO. Do your DD:
http://www.ddmachine.com/default.asp?s=btoo.ob
Mike
Kris, check also: TSBI, BTOO, CYBT, OSEE, and NEXH. Besides MMON, at the present price, the above are all low-risk, high reward short-term plays, IMO.
If you (or anyone else) have some other good short-term bottom play, would you please post it here?
Mike
"If anyone thinks that this isn't going to .008 or .006 they are just plain blind. No news and yet all this action this week."
Kris, I'm looking for over 0.01, short-term. Still accumulating on this one.
Take care,
Mike
***Jay Wright, CEO of MobilePro Corp, was interviewed on WallSt.net .
To listen to the audio , go to Featured Interviews OTCBB (lower left hand side of page)
http://www.wallst.net
Mike
***Retail Car Care Product Line Now Available at Automotive Retailers
via COMTEX
January 10, 2005
CINCINNATI, Jan 10, 2005 (BUSINESS WIRE) --
Pickups Plus, Inc. (OTCBB:PUPS), a retailer and national franchiser in the light truck and SUV after market accessory industry and wholly owned Auto Preservation, Inc. (AP) a single source provider to automotive dealerships for their new vehicle preparation, environmental protection packages, detailing and reconditioning products and services; today announced Auto Preservation's retail car and truck care product line is now available at select retailers across the country.
Through its distribution agreement with Meyer Distributing, the company has confirmed that the full line of ValuGard Professional Grade Car Care Products are available to consumers at many automotive retailers, including the following; Kemper Automotive, Tri-State Rhino Linings, Auto Xtremes, Classic Detail, Stuff for Trucks, Auto Trim Design, and Pickup Outfitters.
This is not just another car care product line, ten of the largest vehicle manufacturers in the world including GM, Ford, Daimler Chrysler, Toyota, Mazda, Hyundai, Nissan, Renault, Saturn and Saab, have relied on this product line for their own use, factory defect resolution, or have private labeled the products for resale in their dealerships.
In addition, some of these same retailers are finalizing agreements with the company to become Authorized Processing Centers for its ValuGard Environmental Protection Products. Within their existing facilities, utilizing environmental friendly products and with no expensive application equipment automotive retailers can generate additional revenue.
Pick-Ups Plus, Inc. is a retail operator and franchiser of retail automotive parts and accessories stores catering to the light truck market. There are currently five franchised locations in operation and two Company owned-stores. In addition, through its Automotive Preservation Division the Company now offers automotive dealerships new vehicle preparation, environmental protection packages, detailing and reconditioning products and services. The Company intends to attempt to expand by opening additional company-owned stores, ValuGard Processing Centers, Distributorships and franchise. For more information about the Company go to www.pickupsplus.com and look for updates in the Chairman's Letter.
Safe Harbor Statement: Except for historical information contained herein, the statements made in this press release are forward-looking and are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933, Section 21E of the Securities Act of 1934 and the Private Securities Litigation Act of 1995. Forward-looking statements involve known risk and uncertainties, which may cause the Company's actual results in the future to differ materially from forecasted results.
SOURCE: Pick-Ups Plus, Inc.
Pick-Ups Plus, Inc. Sean Hayes, 860-633-0377 shayes@Pickupsplus.com
Rather than betting for a 10 MOMO, if I would be you, I would go for smaller gains to start with. If 1K is all you have, I suggest you try your luck with: MMON (not more than 0.0004), HEXS (try it at 0.008), NEXH (@0.0004), BTOO(@ 0.008), PRRM (@0.0001), TSBI (@0.0015 or so), or CYBT (@ 0.0012). The above are all bottoms, hence low risk for now. If you get into any of these, try getting out at 2x to 3x (don't be greedy!) and repeat it, until you have accumulated enough to buy some better stocks (e.g., MOBL, GDVI, VFIN).
All pennies involve risk, so do your own DD:
http://www.ddmachine.com/default.asp?s=gdvi.ob
To see what other people are talking about your choice check out the Board Central:
http://www.boardcentral.com/aios/aios.cgi
but, only to get the idea. Do your own DD, and do it well. Do not forget to read the SEC fillings, and to check out if a R/S is not coming. The above, that I gave you, are OK for now. But again, go through the pain and do your own DD. NO PAIN, NO GAIN!
Mike
OT: Quacker, it just happen I bought several MM's NEXH last week. I have a sale order at 0.0012 (3x). Hope it works!
Check out the DD Machine, and the other boards on it:
http://www.boardcentral.com/aios/aios.cgi
Mike
***Good HEXS News!
"The SEC has finally implemented the long awaited Regulation SHO. Regulation SHO went into effect on January 3rd. Beginning January 10th, each day a list of securities with excessive open naked short positions will be publicly published.
For many years short sellers have been able to simply sell unlimited supplies of small stocks through overseas brokerage firms, even though no shares have been borrowed. Thanks to loopholes in the clearing system, these sellers are never forced to deliver the shares. In essence, short sellers have been able to "counterfeit" supplies of stock by avoiding the regulations from offshore."
Good news: In anticipation of the January 10th (Tuesday) deadline, it looks like at least one of the oversee exchanges (The Berlin Stock Exchange - BE) started to cover today:
http://finance.yahoo.com/q?s=hexs.BE&d=t
Note: These crooks usually don't post the volume. Nonetheless, important is that today HEXS:BE moved up 25% from the recent hystoric low price of 0.003 Euro (1 Euro = $1.36), and ended today at 0.005 Euro.
Mike
FYI: Regulation SHO: This Could Get Interesting
Source: The OTC Journal, today's edition
The OTC Journal archives reveal I have written three editions on the subject of illegal naked short selling over the past two years. It is a fascinating subject, and one that is back in the news as a new SEC regulation goes into effect this week.
If you have an interest in this subject and want to review the past editions, here they are: 4/19/03,5/18/03, and 2/4/04.
Illegal naked short selling has been problematic for microcap stocks for many years, but the pendulum began to swing the other way in early 2004. Normal short selling requires the seller to borrow the shares ahead of executing a sell trade in shares not owned. The seller hopes to buy them back later at a lower price and lock in a profit.
For many years short sellers have been able to simply sell unlimited supplies of small stocks through overseas brokerage firms, even though no shares have been borrowed. Thanks to loopholes in the clearing system, these sellers are never forced to deliver the shares. In essence, short sellers have been able to "counterfeit" supplies of stock by avoiding the regulations from offshore.
Small and microcap companies have been particularly vulnerable to this practice as there is often little institutional support for the stocks. When a stock starts trading poorly, small investors tend to panic and sell, forcing prices even lower. Once an enormous short position is established, a smear campaign often follows, characterized by negative articles from questionable sources and malicious posting on message boards with no disclosure. The stock ends up trading so poorly the company cannot raise equity capital, and many die a premature death.
A high profile example of this kind of practice occurred in the middle of December. Sirius Satellite Radio (NASDAQ: SIRI) had been on a tear over the past several months. Clearly the stock was richly valued and extended, and it was rumored short sellers were getting killed. Miraculously a complete hatchet job article appeared in Barron's, which sent the stock temporarily plummeting. While indeed, there was a strong argument the stock was overvalued, the article was completely one sided and gave no credence to the growth argument. A similar article in the Wall Street Journal was much more balanced. If you think the Barron's article was an accident, and short sellers didn't know about it in advance, you are living in LaLa land.
Small companies have been hounding regulators for years to take steps to eliminate these oppressive practices. In February of last year the NASD one upped the SEC by implementing the Affirmative Determination Rule, which required US brokerage firms to affirmatively determine if an overseas brokerage firm selling shares through them can actually deliver the shares. This made for some exciting moves in heavily shorted stocks.
The SEC has finally implemented the long awaited Regulation SHO. Regulation SHO went into effect on January 3rd. Beginning January 10th, each day a list of securities with excessive open naked short positions will be publicly published.
This required list is referred to as the Threshold Securities List. Under Regulation SHO, threshold securities are defined by two criteria: 1) there are at least 10,000 shares in aggregate failed deliveries for the security for five consecutive settlement days and, 2) these fails to deliver constitute 0.5% or more of outstanding shares.
If the failed deliveries for the stocks on the Threshold List are not rectified within 13 trading days, the market maker to whom the shares was sold will effect a "buy in" in the open market.
Each exchange is required to maintain a daily Threshold List. I am guessing the list will be found at the web site of the exchange; i.e. www.nasdaq.com and www.otcbb.com.
It will be interesting to start monitoring the Threshold Lists for unusual movements to the upside.
I am not opposed to the practice of short selling. I believe all investors should be able to bet on any stock in either direction. I am opposed to sophisticated fund managers with offshore accounts using loopholes to initiate trades you that you and I cannot execute through our regular brokerage accounts. If they can do, we should all be able to do it.
The Threshold List could become a favorite resource for locating trading ideas on the long side. It might become the sport of hedge fund managers. These new regulations are emerging out of down side excesses from the the 2000 to 2003 time frame. The pendulum is finally swinging back to a level playing field. These actions by the regulators will help the OTC Bulletin Board become the incubator it is intended to be.
Since reaching the 0.0022 high, SCHB has not left the top of the "Ask" column, always at some distance from all the other MM's. Question is do they still have shares they bought at a lower price, or expect to cover at a lower price? Monday should be fun!
Mike
"Beginning January 10th, each day a list of securities with excessive open naked short positions will be publicly published."
This should stop (or at least diminuate) this craziness (price going from 0.0002 to 0.0016 one day, and from 0.0022 to 0.0006
the next). Let's see if it will hold, or the MM's will find alternate ways to still short the stocks?
Mike
FYI: Regulation SHO: This Could Get Interesting
Source: The OTC Journal, today's edition
The OTC Journal archives reveal I have written three editions on the subject of illegal naked short selling over the past two years. It is a fascinating subject, and one that is back in the news as a new SEC regulation goes into effect this week.
If you have an interest in this subject and want to review the past editions, here they are: 4/19/03,5/18/03, and 2/4/04.
Illegal naked short selling has been problematic for microcap stocks for many years, but the pendulum began to swing the other way in early 2004. Normal short selling requires the seller to borrow the shares ahead of executing a sell trade in shares not owned. The seller hopes to buy them back later at a lower price and lock in a profit.
For many years short sellers have been able to simply sell unlimited supplies of small stocks through overseas brokerage firms, even though no shares have been borrowed. Thanks to loopholes in the clearing system, these sellers are never forced to deliver the shares. In essence, short sellers have been able to "counterfeit" supplies of stock by avoiding the regulations from offshore.
Small and microcap companies have been particularly vulnerable to this practice as there is often little institutional support for the stocks. When a stock starts trading poorly, small investors tend to panic and sell, forcing prices even lower. Once an enormous short position is established, a smear campaign often follows, characterized by negative articles from questionable sources and malicious posting on message boards with no disclosure. The stock ends up trading so poorly the company cannot raise equity capital, and many die a premature death.
A high profile example of this kind of practice occurred in the middle of December. Sirius Satellite Radio (NASDAQ: SIRI) had been on a tear over the past several months. Clearly the stock was richly valued and extended, and it was rumored short sellers were getting killed. Miraculously a complete hatchet job article appeared in Barron's, which sent the stock temporarily plummeting. While indeed, there was a strong argument the stock was overvalued, the article was completely one sided and gave no credence to the growth argument. A similar article in the Wall Street Journal was much more balanced. If you think the Barron's article was an accident, and short sellers didn't know about it in advance, you are living in LaLa land.
Small companies have been hounding regulators for years to take steps to eliminate these oppressive practices. In February of last year the NASD one upped the SEC by implementing the Affirmative Determination Rule, which required US brokerage firms to affirmatively determine if an overseas brokerage firm selling shares through them can actually deliver the shares. This made for some exciting moves in heavily shorted stocks.
The SEC has finally implemented the long awaited Regulation SHO. Regulation SHO went into effect on January 3rd. Beginning January 10th, each day a list of securities with excessive open naked short positions will be publicly published.
This required list is referred to as the Threshold Securities List. Under Regulation SHO, threshold securities are defined by two criteria: 1) there are at least 10,000 shares in aggregate failed deliveries for the security for five consecutive settlement days and, 2) these fails to deliver constitute 0.5% or more of outstanding shares.
If the failed deliveries for the stocks on the Threshold List are not rectified within 13 trading days, the market maker to whom the shares was sold will effect a "buy in" in the open market.
Each exchange is required to maintain a daily Threshold List. I am guessing the list will be found at the web site of the exchange; i.e. www.nasdaq.com and www.otcbb.com.
It will be interesting to start monitoring the Threshold Lists for unusual movements to the upside.
I am not opposed to the practice of short selling. I believe all investors should be able to bet on any stock in either direction. I am opposed to sophisticated fund managers with offshore accounts using loopholes to initiate trades you that you and I cannot execute through our regular brokerage accounts. If they can do, we should all be able to do it.
The Threshold List could become a favorite resource for locating trading ideas on the long side. It might become the sport of hedge fund managers. These new regulations are emerging out of down side excesses from the the 2000 to 2003 time frame. The pendulum is finally swinging back to a level playing field. These actions by the regulators will help the OTC Bulletin Board become the incubator it is intended to be.
CORRECTING and REPLACING ItsAboutFinance.com Features Nexia Holdings CEO and Founder Richard Surber Interviewed from the Floor of the Chicago Stock Exchange
Business Wire - January 06, 2005 19:13
SALT LAKE CITY, Jan 6, 2005 (BUSINESS WIRE) -- In BW5189 issued Jan. 6, 2005: The correct link in the third graph should be:
http://media4streamtoyou.com/cadavis/NEXHDesc.wmv sted http://media4.streamtoyou.com/NEXHDesc.wmv
The corrected release reads:
ITSABOUTFINANCE.COM FEATURES NEXIA HOLDINGS CEO AND FOUNDER RICHARD SURBER INTERVIEWED FROM THE FLOOR OF THE CHICAGO STOCK EXCHANGE
Nexia Holdings (OTCBB:NEXH) today announced an aggressive strategy of real estate acquisition and management for the company's real estate holdings comprised of commercial, residential, and retail properties. Nexia promotes this aggressive strategy of real estate acquisition and management by purchasing properties it believes are undervalued in relation to cash flows and prospective resale.
The company has built an impressive real estate portfolio based on improving and leasing the properties while increasing occupancy rates, improving cash flows and enhancing the potential resale value over time as the properties appreciate in value. You can visit Nexia Holdings at their website: http://www.nexiaholdings.com/
Click on the link to hear Nexia Holdings CEO Richard Surber talk about these real estate holdings: http://media4streamtoyou.com/cadavis/NEXHDesc.wmv
About ItsAboutFinance.com:
ItsAboutFinance.com is a marketing firm for publicly traded companies. It's financial broadcast consists of CEO interviews from the floor of the Chicago Stock Exchange. CEO's can be interviewed on the floor or from their office. ItsAboutFinance.com also features a daily stock Market Report video webcast featuring Chicago Stock Exchange floor traders and monthly reports from the Federal Reserve Banks of New York and Chicago.
About Eure Entertainment:
Eure Entertainment is a full service publicity firm. In conjunction with MagnaBand.net the company also provides marketing services to publicly traded companies and entertainment clients. the companies client list includes comedian and entertainer Eddie Griffin and pop star Michael Jackson
SOURCE: ItsAboutFinance.com
ItsAboutFinance.com
Gail Felix, 209-839-8310