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Isn't that the typical transaction. I buy your shares and you are selling me mine. We both use brokers to do so?
Correct me if I am wrong.
-Matt
Not entirely sure. The restrictions say for ANY stock trading under 1.00. So unless they really get their act together or do a reverse split... with just financials filed and no PPS movement. I think the answer is NO.
This is the classification Zecco provides to fall under the new restrictions from Penson...
Penny Stocks
Penny stocks are low-priced shares of small companies not traded on an exchange or quoted on
NASDAQ. Prices often are not available. Generally a penny stock is a security that:
• Is priced under one dollar
• Is not traded on a national stock exchange or on NASDAQ (the FINRA’s automated quotation system
for actively traded stocks);
• May be listed in the “pink sheets” or the FINRA OTC Bulletin Board’
• Is issued by a company that has less than $5 million in net tangible assets and has been in business less
than three years, by a company that has under $2 million in net tangible assets and has been in business
for at least three years, or by a company that has revenues of $6 million for 3 years.
-Matt
I use zecco and they do clear through Penson. At this point, I cannot sell my shares or leave Zecco so I am stuck. I have a few smaller share holders that can't even get out. So people that say if you don't like it sell (EVAN), we can't even do that now!
In it for the long haul, have no choice and well maybe that is a good thing.
I didn't check the specifics with changing trading platforms, but it would seem to me that these shares couldn't be transferred easily or at all.
I believe Etrade clears themselves so at this point there are no trading restrictions with them, however, the way the SEC is clamping down on the Penny stock market, these restrictions will very well spread to other brokers.
IDGI needs to get up to date, off the pinks, and begin informing us of the companies progress. I would expect an uplisting off the pinks to take them years before it can happen.
-Matt
Penguin... my numbers will a little off. The restrictions are actually even worse.
Potential Buy-In Following Sales Triggering the NSCC Illiquid Requirement
The National Securities Clearing Corporation (NSCC) is a subsidiary of DTC which provides clearing,
settlement, risk management, central counterparty services and a guarantee of completion for certain
transactions for virtually all broker-to-broker trades involving equities, corporate and municipal debt,
exchange-traded funds, and other securities. The NSCC Illiquid Requirement is applied to Penson when
one customer (or more than one customer in the aggregate, across the totality of customers of Penson’s
correspondents ) whose account is carried by Penson sell more than 25% of the average daily trading
volume of a security over the last rolling 20 business days. The amount of this requirement depends on
the percentage of the ADV (Average Daily Value) represented by the open sales. The requirement has
very little relation to the value of the trade, and is generally at least ten times the trade value and may
be as high as one hundred times the trade value, or even more. This requirement is incurred even if the
customer owns the shares and even when Penson has these shares long in its DTC account.
If Penson’s customer(s) create a NSCC Illiquid Charge greater than $50,000, the offending trade or
trades will be bought in on T+1, without notice to the customer.
If a customer creates a second NSCC Illiquid Charge greater than $50,000 in a ninety day period, in
addition to the buy-in, the customer account may be subject to closure for ninety days.
I think you need to do your own research on Penson's new trading restrictions. If you are not informed, using Penson and attempting to trade Pinks, you run the risk of racking up $1000's of dollars worth of penalities.
Paranoid? No.... down right scared as hell about my groups investment worth $100K+ your damn right I am scared/nervous/paranoid and anything else you want to call it.
Being informed about these new rules is something you need to look into!
-Matt
THROUGH PENSON... which a lot of trading platforms use.
-matt
Is it possible that due to the new trading restrictions that one cannot buy or sell more than 50% of the last 60 days trading volume. Considering we have had next to 0 volume, that is probably all they can sell.?
IMO
-Matt
I was waiting for that comment and you are absolutely right...
-matt
Same story different year after year after year.
My guess...
They are having difficulty "building the business". The brand awareness is there. Put yourself in their shoes, if they had a stellar turn out with 500k-1M in orders, they would be more than excited to tell us.
Anything else, they would keep quite about.
IMO
-Matt
No liquidity due to trading restrictions. Pink market is down overall substantially in regards to volume.
-Matt
I agree 100%... and if Stephanie ran this like a stinky pinky and got us to .10 or higher... I would be happy. Money is money, don't really care how it's made. Watching the company grow is nice and all... but we don't even know if its growing or actually ANYTHING ABOUT IT.
-Matt
And that got us........ Stacy is great at getting in magazines and having her name exposed. I was strictly referring to operations and the investment side of the equation both of which DIRECTLY effect us as shareholders.
-Matt
Has anyone every considered that when that big mess occurred a few years ago and the two owners parted ways... that there was more to the story than we knew and we possibly ended up on the WRONG side of that split?
I know Stacy retained the company, but maybe the other owner wanted out because of the way Stacy was running it?!?!?
-Matt
Praying for a better week or at least to hold the current PPS and not go any lower!! Is that to much to ask!!!!
-Matt
I would have to agree. It can go lower though.. once an RS occurs and we are 100th or 1000th lower...
Sucks! Maybe just one pop before it all happens would be nice!
-matt
This mess is certainly not your fault nor anyones on this board. As we have proven... IHUB investors will NOT make or break this stock. All the promos that were done only attracted us and may a few other investors outside of IHUB. Other than that, NADA. Management will need to get out of the pinks and uplist to the NASDAQ and maybe an investment group or hedge fund with billions in capital will push it forward.
IMO
-Matt
Thanks Craig
-matt
I think he is basing his prediction on the possibility the Florida SOS is not updated for Oct 31, 2011.
Or at least the "fear factor" of it not being updated causes additional selling.
We all know us IDGI investors are always scared about the next big date not happening!
IMO
-Matt
After hours bid is showing .0011... looks scary! Basically that is the highest GTC order placed right now. Everyone else places the order during market hours, it appears. If we get a whack job in first thing, we could easily open at .0011 for a quick second or hour or day the way things have been going!
NOT GOOD
-Matt
Not sure who you talked too.. Just tried it again and same results as yesterday. I spent a good amount of time talking with zecco and two other upper level managers yesterday and they all told me the same exact story.
It cannot be sold unless you are willing to get whacked a substantial fee. I have tried to sell it in 25k, 50k, 100k, 125k and 250k blocks for one of my guys and all are denied.
-Matt
Thanks for the confirmation Penquin... not that it's a good confirmation, but it does confirm Penson has shut us down!
-Matt
I show no change in volume since 10:39 AM. Contact zecco yourself. I already posted the documentation provided in the email.
-Matt
Read the very first line of that document... you can call them if that helps.
Try to buy or sell 1000 shares. It will come back denied ECN Rejected.
-Matt
Agreed... there always seems to be a pop at some point.
-Matt
Considering we are sitting at 6B OS... not a prime target to be sold. Without a major R/S first.
IMO
-Matt
Haha that is so true... Everything I see indicates thats the way it is heading.
Just my opinion, but their actions are making it difficult to trade these stocks. Natuarally investors will move to investments that they can actually buy and sell. It will kill itself.
Heck look at it now... greatly reduced trading volume and many are completely illiquid.
-Matt
They will be delisted or will be uplisted if they have an actual company...just google it and you will see its already in the works by the SEC. To many scams and no control of these markets, its actually good for investors who have been burnt time and time again on scams.
-Matt
Seems pretty clear that the demise of the penny and OTC markets is on our door steps. IDGI will do a reverse split eventually. It will probably happen around the time the SEC tells them to clean up their acts or be delisted. I see that coming sooner rather than later.
-Matt
I believe that is the case... wouldn't suprise me if others follow suit soon.
-Matt
Another point one of my investors just made... check out the interview with Stacy and see how many times it has been viewed... take out all of US watching it and you have next to 0 interest in her or her company or more than likely the new line.
NOT GOOD.
Praying they can turn this thing around.
-Matt
The following is what my contact at zecco sent me. I have one investor with 250k shares that needed to get out and he was declined when he placed a sell order. The contact stated that he could call zecco and they could arrange to sell the stock, but after settlement fees, he would end up owing them money!
LOW PRICED SECURITIES DISCLOSURES
It is important for our customers to understand that trading low priced securities is subject to significant
risks and increasing regulatory requirements and oversight. The following disclosures outline important
information about some of these risks and requirements.
Penny Stocks
Penny stocks are low-priced shares of small companies not traded on an exchange or quoted on
NASDAQ. Prices often are not available. Generally a penny stock is a security that:
• Is priced under one dollar
• Is not traded on a national stock exchange or on NASDAQ (the FINRA’s automated quotation system
for actively traded stocks);
• May be listed in the “pink sheets” or the FINRA OTC Bulletin Board’
• Is issued by a company that has less than $5 million in net tangible assets and has been in business less
than three years, by a company that has under $2 million in net tangible assets and has been in business
for at least three years, or by a company that has revenues of $6 million for 3 years.
If you decide to buy penny stocks, you must understand that the securities being bought have not been
approved or disapproved by the Securities and Exchange Commission. Moreover, the Securities and
Exchange Commission has not passed upon the fairness or the merits of this transaction nor upon the
accuracy or adequacy of the information contained in any prospectus or any other information provided
by an issuer or a broker or a dealer.
Zecco Trading does not provide advice or information. As our customer, you are making unsolicited
trades and must understand that you are responsible for your own transactions.
Settlement Fees for Non-DTC-Eligible Securities
DTC, through its subsidiaries, provides clearing, settlement and information services for equities,
corporate and municipal bonds, money market instruments and other securities. In addition, DTC is a
leading processor of mutual funds and insurance transactions, and provides custody and asset servicing
for 3.6 million securities issues from the United States and 121 other countries and territories.
For various reasons, certain low priced securities are not DTC-eligible or have had their eligibility
revoked. As a result, the settlement of these physical positions can carry significant pass-through
charges for our clearing firm, Penson, including execution fees, DTC fees, deposit fees, New York
window fees, and transfer agent fees. These fees, which can vary and may be substantial, increase the
cost that Penson, passes through for clearing and execution.
Customers who trade non-DTC-eligible securities are responsible for these charges, which can be as
high as $700.00 per trade. Orders that require executions with multiple contra-parties will result in
settlement fees for each separate transaction. Please note that neither Zecco Trading nor Penson mark
up any of these fees before they are passed through to customers.
It is your responsibility to investigate the eligibility status of a low-priced equity before trading it. You
may consult the Known Non-DTC Eligible List in our Forms Library or contact the specific company
whose equity you intend to trade to confirm eligibility. Please note that there is no guarantee that the
Known Non-DTC Eligible List will contain a complete and updated list of non-DTC-eligible stocks. This
information is provided on a ‘Best Efforts' basis.
It is strongly recommended that, if you intend to trade a low-priced security (typically those priced
below $1.00 and most commonly in the sub-penny range), you contact Zecco Trading’s customer
service at 1-877-700-7862 for more information.
Finally, please note that the pass-through charges described above may not be immediately charged to a
customer account following a trade in non-DTC-eligible securities, as our clearing firm may receive
notice of such fees as late as three weeks following the trade. Zecco Trading reserves the right to
withhold funds in a customer account pending potential assessment of fees associated with trading in
low priced or sub-penny securities.
Potential Buy-In Following Sales Triggering the NSCC Illiquid Requirement
The National Securities Clearing Corporation (NSCC) is a subsidiary of DTC which provides clearing,
settlement, risk management, central counterparty services and a guarantee of completion for certain
transactions for virtually all broker-to-broker trades involving equities, corporate and municipal debt,
exchange-traded funds, and other securities. The NSCC Illiquid Requirement is applied to Penson when
one customer (or more than one customer in the aggregate, across the totality of customers of Penson’s
correspondents ) whose account is carried by Penson sell more than 25% of the average daily trading
volume of a security over the last rolling 20 business days. The amount of this requirement depends on
the percentage of the ADV (Average Daily Value) represented by the open sales. The requirement has
very little relation to the value of the trade, and is generally at least ten times the trade value and may
be as high as one hundred times the trade value, or even more. This requirement is incurred even if the
customer owns the shares and even when Penson has these shares long in its DTC account.
If Penson’s customer(s) create a NSCC Illiquid Charge greater than $50,000, the offending trade or
trades will be bought in on T+1, without notice to the customer.
If a customer creates a second NSCC Illiquid Charge greater than $50,000 in a ninety day period, in
addition to the buy-in, the customer account may be subject to closure for ninety days.
© Zecco Trading, Inc.
V. 001 Published on August 18, 2011
Agreed. Now if I can only stop posting for a few more years.. this is going to be a long haul! It better be worth it.
-Matt
To a certain extent I agree... however they are in the High End bathing suit category... meaning the rich are their primary targert and for the most part... the rich always stay rich and are not generally effected by a meltdown.
-Matt
Just got an email notice from Zecco...looks like our new little RED STOP Sign has officially put IDGI on the freeze list for Penson...meaning it cannot be sold without a large transaction fee.
Looks like my entire group is in this for the long haul. Or at least until they fix the reporting status or they go private!
That's one way to ensure us longs in CT can't get out.
Stacy and Evan... our money is now solely tied to you and your choices going forward. I can only hope what you have said in the past was true and you hold to your word.
-Matt
Same scenario except the bidder may not have a L2 available so the .003 bid was thought to be theirs and when they didn't get filled raised it to .0031.
-Matt
I don't have a magic ball... but my guess would be another bidder using the same MM saw the sale and realized he wasn't the next in line to pickup shares at .003. He then raised his bid to .0031 to be the highest bid using that MM. That is where we stand now.
-Matt
The only GAME is the GAME the company is playing with investors. What you see are people selling and another bidder stepping in to collect what they are hoping to be CHEAPIES...
NOTHING MORE so lets not go down this GAMES path again.
-Matt
Agreed. They need to expand, hire more employees to help grow the company, hire someone to deal with the investment side and our complaints, and use the extra time to let Stacy and Evan do what they do best... land new clients with wining and dining.
-Matt
Unless revenues are still pathetic and they have come to understand that this will only be a hobby and nothing more? Right...
In the end... this is all speculation and wouldn't need to happen if they would just give us a DAMN UPDATE!! Investors tend to think the worst when a company goes dead silent... and the PPS directly reflects that.
-Matt
The PPS isn't low enough for them to begin the buy back if that is their intentions...
Once a few longs give up... as it seems they are just about ready to. We will quickly drop to .0003-.0005. Thats when they will begin buying back shares. They can do so without filing anything for a specific period of time. Not sure on the details.
I pray this isn't the path, but I haven't seen ANYTHING to comfort me.
-matt