Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Thanks for sharing toohot, So actual shareholders don't want to sell at 7
MMs, whose job title is to 'Make a Market'', who can sell shares that they don't own and have not borrowed, don't want to sell at 7.
Sounds like we may be approaching a Material Event PR.
Ruh Roh, KT Wave Moves Up to #48 on Amazon Top Sellers
#48 out of 632 products in the Muscle Stimulators & Accessories category.
Up 16 positions since Tuesday's #64.
Why didn't 'Fantasy Sales Track' warn us about this significant increase in sales???
Did you specifically ask Paul if Synergy was an OEM deal or a Distributor deal?
Because he did not answer that specific question.
I am sure you noticed that he did not use the word 'Distributor' or 'Distribution' in his reply.
He also did not use the trademark 'RecoveryRx' name instead using 'RecoveryRX'.
Paul also said " promoting the product via a traditional device company marketing and launch plan". Shouldn't he have said, 'traditional distribution company'?
The BIEL VP of Sales and BOD Member stated, "Our OEM plan is clicking as we have added 25 new countries, SEA, APAC, CIS, Africa, MENA". There is no doubt that he was referring to the Synergy Deal.
The public relations rep, Paul, did not call it a Distribution Deal, after working at BIEL for more than a decade did not use the RecoveryRx trademark, and said the promotion would be "traditional device company marketing" not 'distributor marketing'.
I am going to side with our VP of Sales on this issue as he is the one who spent months hammering out the Deal with Synergy and knows what type of contract he drafted.
BIEL currently refers to KT Tape as their US Distributor
A look at the 'ActiPatch® Worldwide Distributors' map and one sees that BIEL considers KT Tape, who is an OEM Partner, a US Distributor.
https://www.actipatch.com/distributors/
Way too much concern over Synergy being an OEM or a Distributor, they can be both just like KT Tape.
KN on Linkedin last month,
"We are small but pack a big punch, great company coverage @microcapdaily as we increase our global footprint and drive to revenue growth. Our OEM plan is clicking as we have added 25 new countries, SEA, APAC, CIS, Africa, MENA. Disruptive technology providing pain relief w/no interactions, lowering oral meds by 50+ percent"
https://www.linkedin.com/feed/update/urn:li:activity:6970397429175050241/
Typical attempt at spreading fear and doubt TP
Happens every time BIEL has a positive event.
BIEL has known it was an OEM Deal for many months and they stated in a written company document on 8/25:
"First order will occur after we successfully Register our product in 7 countries"
"975,000 units of RecoveryRx to be purchased over the first 18 months"
"Largest contract to date for BIEL"
"Healthy margins and high volume"
Nothing has changed. No "wrench" has been thrown.
Hmmm, "No Credibility", interesting accusation given the fact that 'Fantasy Sales Track' is presented as factual information on a weekly basis.
BIEL stated this information in a public Conference Call:
* Signed Deal with Synergy Corporation
* 25 countries
* 975,000 RecoveryRx Units in first 18 months
* First Order Trigger is Registration in Seven Countries
* Largest Contract to Date for BIEL
* Healthy Margins and High Volume
Please fill free to contact the SEC if you have any proof that any of these statements are false.
"We have a signed deal for 25 countries Throughout SEA, APAC, Africa, MENA, CIS, with Synergy Corporation."
BIEL was pretty clear in their Conference Call.
See printed document from Call here,
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169805137
Missed this, KN said the 25 Country Deal (Synergy) is OEM in a Linkedin post
IMO, a lot more skin in the game for an OEM Contract vs a Distributor.
Keith Nalepka
• Following
Vice President of Sales and Marketing at BioElectronics Corporation, Board Member BioElectronics
1mo • 1 month ago
We are small but pack a big punch, great company coverage @microcapdaily as we increase our global footprint and drive to revenue growth. Our OEM plan is clicking as we have added 25 new countries, SEA, APAC, CIS, Africa, MENA. Disruptive technology providing pain relief w/no interactions, lowering oral meds by 50+ percent
https://www.linkedin.com/feed/update/urn:li:activity:6970397429175050241/
Great News JGD, RecoveryRx XTRA is moving through the FDA Medical Device protocol for gaining Clearance
And we have a confirmed name for BIEL's newest product, 'RecoveryRx XTRA' !!!
Go BIEL !!!
Go RecoveryRx XTRA !!!
Yes, Fire the Sales Staff that just closed a 25 Country Distribution Deal that requires the Purchase of 975,000 RecoveryRx units over 18 months
<<<<<<<<<<<< First they need to fire their sales staff >>>>>>>>>>>>>
Sounds like a great plan if one wants BIEL to Fail.
The 2022 Forbearance was not announced until 1/3/2022 and states "through at least 2022"
Let's have a conversation about this in January 2023.
FREDERICK, MD, Jan. 03, 2022 (GLOBE NEWSWIRE) — via NewMediaWire — BioElectronics Corporation (OTC PINK:BIEL) is pleased to announce that the managers of the firm’s two largest lenders, Ibex LLC and St. John’s LLC, both of which are controlled by Whelan family members, have agreed to forgo interest due on their convertible debt notes for a third consecutive year, through the end of 2022. Kelly Whelan, President & CEO of BioElectronics, stated: “It is the goal of both the BioElectronics’ management team and the Whelan family to bring the Company to sustained profitability as quickly as possible, for the benefit of all shareholders. The Whelan family has collectively forfeited interest in excess of $1.5 million during 2020 and 2021 and will extend forbearance of interest through at least 2022.”
https://www.bielcorp.com/bioelectronics-corporation-announces-major-lenders-forgoing-interest-for-a-3rd-consecutive-year-new-research-projects-underway/
Well that is an Opinion not supported by Facts
<<<<<<<<<<< IT WAS AN OVERWHELMING FAILURE IN THE UK.>>>>>>>>>>>>
2013 Sales = 665k
2014 Sales = 1.289 million (start of UK Social Media Campaign)
2015 Sales = 2.339 million (ActiPatch on over 1,000 Boots/Lloyds shelves)
2016 Sales = 2.089 million
2017 Sales = 1.763 million
BIEL's highest 3 sales years were accomplished with UK sales.
The problem was BIEL's costs associated with those sales were also the highest in their history. So, BIEL took ActiPatch off the UK retail shelves with the NHS Drug Tariff approval of 2018 to control costs with the new approval for NHS reimbursement.
There was still UK consumer demand for ActiPatch but CCGs did not allow their Doctors to prescribe it. Most of the retail access had been removed due to it's high overhead and the belief that the majority of business would shift away from retail and to NHS reimbursement .
<<<<<<<<<<< CCGS -- doctors -- rejected the ActiPatch >>>>>>>>>>>
The thousands of doctors who were providing medical care to patients did not "reject the ActiPatch".
The doctors who took off their lab coats, put on business suits, and were now in the roll of a bureaucrats balancing a shrinking budget would not allow use of the ActiPatch. And it was not just ActiPatch, CCGs denied the use of hundreds of new drugs and medical devices that were approved by the national NHS.
It is All About the Money
NHS doctors that provide patient care are not refusing to prescribe ActiPatch. ActiPatch is being removed from the list of medical devices and drugs that NHS doctors can prescribe by the Local Bureaucrats, CCGs, that control each community's spending.
It is not just ActiPatch that they have restricted. Hundreds of new drugs and medical devices each year are 'Black Listed' by the CCGs. They use the same excuses as the US Healthcare Insurers, 'More and larger Clinical Trials are needed to confirm efficacy', when it is really All About the Money. Their theory is that the fewer items that are approved the lower our costs will be.
For the UK the restrictions on drugs and medical devices is largely about trying to keep a fragile NHS system solvent. For the US Healthcare providers it is about profits.
Millions to suffer as NHS is ‘about to run out of cash’
Thu, May 1, 2014
"Health charity the King’s Fund says that with a quarter of trusts already in deficit, a financial meltdown is “inevitable by 2015-’16 and could arrive sooner”.
The charity claims millions of sick and vulnerable will face soaring waiting times, cuts in staff and deteriorating” quality of care."
The NHS: running out of money
The Kings Fund
15 April 2014
"The mood of pessimism is borne out by the latest news on actual financial performance. For foundation trusts, Monitor reported that for the year-to-date 39 organisations are in deficit and for trusts, the NHS Trust Development Authority reports that 26 organisations forecast an end-year deficit. For both foundation trusts and trusts these numbers are higher than planned."
https://www.kingsfund.org.uk/blog/2014/04/nhs-running-out-money
Only 40.3 million shares FTD Today
26.5 million shares were legitimate Sells, where the seller actually owned the shares they sold and could surrender them at the close of the day. What a concept, actually owning the thing you are selling.
<<<<<<<<<< Is it Market Makers illegally shorting the stock? >>>>>>>>>>>>
Date..... Symbol...Short.........Total Volume
20220920|BIEL|40359296|0|68133155
No Worries, Buys now 5.5 million shares
Sells = 788k shares
Been saying that for some time bieliever
A car produces 200 hp and weighs 3500 pounds.
The manufacture finds a way to trim 350 pounds. Same engine producing 200 hp, same body. but it is now faster and gets better gas milage.
I trimmed an ActiPatch, 12 cm antenna, down to 9 cm for use on my neck. It does a better job with pain relief and also lasts longer than the 12 cm ActiPatch.
IMO, this is why BIEL used the eye patch as their first FDA Clearance. A 12 cm antenna Actipatch is treating 110 square cm area while a 6 cm antenna ActiPatch for the eye treats a 30 square cm area.
What are the possibilities for the "Synergy 25 countries"
South East Asia (SEA)
Indonesia
Philippines
Vietnam
Thailand
Myanmar (Burma)
Malaysia
Cambodia
Laos
Singapore
Timor-Leste (East Timor)
Brunei Darussalam
Asia Pacific (APAC) (with population)
China 1,425,887,337
Indonesia 275,501,339
Russia 144,713,314
Mexico 127,504,125
Japan 123,951,692
Philippines 115,559,009
Vietnam 98,186,856
Thailand 71,697,030
South Korea 51,815,810
Canada 38,454,327
Peru 34,049,588
Malaysia 33,938,221
Australia 26,177,413
Chile 19,603,733
Papua New Guinea 10,142,619
Hong Kong 7,488,865
Singapore 5,975,689
New Zealand 5,185,288
Brunei 449,002
Middle East North Africa (MENA)
Algeria
Bahrain
Egypt
Iran
Iraq
Israel
Jordan
Kuwait
Lebanon
Libya
Morocco
Oman
Palestine
Qatar
Saudi Arabia
Syria
Tunisia
United Arab Emirates
Yemen
Commonwealth of Independent States (CIS)
Armenia
Azerbaijan
Belarus
Georgia
Kazakhstan
Kyrgyzstan
Moldova
Mongolia
Russia
Tajikistan
Turkmenistan Associate state*
Ukraine
Donbass
Uzbekistan
Final list coming soon!
Go BIEL !!!
Yep pinhigh, being in the Medical Products biz for 33 years gains you a lot of contacts and clout
Being a part of the Medtronics organization with 90k employees and operations in 150 countries does not hurt either.
You do understand how top sales rankings work right???
Last week you were quoting, "KT~Wave dropping again on Amazon to #84".
This week, "KT~Wave on Amazon #59".
Moving from #84 to #59 on the Amazon Top 100 Sales List is accomplished by Increased Sales not "Declining Sales".
Moving up 25 positions on Amazon's Top 100 is a Big Deal !!!
Go BIEL !!!
Follow the Money
Nick Capper, CEO of Trans-Pacific Healthcare Pty Ltd, likes RecoveryRx.
https://www.linkedin.com/feed/update/urn:li:activity:6975760711260024832/
https://www.linkedin.com/feed/update/urn:li:activity:6973269694657032192/
https://www.linkedin.com/feed/update/urn:li:activity:6973823985478225920/
Trans-Pacific is a part of Sofamor Danek.
Sofamor Danek is a division of Billion $$$$ Medtronic.
Someone scooped up all the available 8s, 9.2 million Shares
2:20 - 2:21 :
2.272 million
2.639 million
4.281 million
87k
Total Buys = 9.88 million shares
Total Sells = 3.39million shares
Neutral @ .00075 = 2.53 million shares
Synergy is coming soon toohot
In the 8/25 Call KN stated that he felt the Regulatory Approval, for those 7 Countries that trigger the first order, would be completed in 2-3 weeks.
We hit 3 weeks on 9/15, approaching quickly.
Go BIEL !!!
Medica, Largest Medical Products TradeFair in The World
BIEL, Hall 16, Stand C-16
Stand - MEDICAhttps://www.medica-tradefair.com › vis › exhibitors
11 hours ago — Visit BioElectronics Corporation ActiPatch from Frederick, MD at MEDICA 2022 in Düsseldorf in Hall 16 Stand C16.
Nov 14 - Nov 17
MEDICA
https://www.medica-tradefair.com/vis/v1/en/exhibitors/medcom2022.2726836?oid=80396&lang=2
Must be looking at the wrong stock
<<<<<< what happened back in late 2020, early 2021. The price went up nicely, and stayed up for a long time. We were at or above 0.003 for 7 or 8 months >>>>>>>
BIEL's 2020 high closing SP was .0015 on 11/16/2020..
BIEL closed at .003 or above for 54 continuous Trading Days in 2021, from 1/26/2021 to 4/13/2021.
On 1/26/2021 BIEL moved past .003 for the first time in 2021 driven by the release of Q4 2020 Revenue, $519k.
BIEL stayed above 003 until 4/14/2021 when the closing SP was .0029, followed by a .0026 close on 4/15.
The Q1 2021 Revenue release of $605k on 4/19/2021 drove the SP back above .003 until 4/27/2021 when it dropped back down to .0029, 4/28 -.0029, 4/29 - .0029 .
Most of May was at .003 or above, with 3 days below .003 .
Most of June was below .003 with 2 days hitting .003 .
August had 14 days closing in the .002s and 6 days closing in the .003s.
Here ya go, BIEL's Mechanism of Action
I won't hold my breath waiting for documentation that sales-track actually exists.
RecoveryRx® Mechanism of Action
Few, if any, treatment strategies have been shown to be effective in reversing SNPP (Surgically-Induced Neuropathic Pain) once it develops, and so the goal should be early intervention to reduce the risk of SNPP from developing. The key to reducing SNPP risk is to raise pain thresholds either pre-surgically or peri-surgically. This can be done by providing a barrage of non-painful stimuli to the CNS via the A-alpha and A-beta nerve fibers. This counterintuitive approach can be understood through the processes of habituation and sensitization which occur in the peripheral nervous system.
1) Nerves severed during surgery produce chemicals and abnormal signals that increase pain signaling
2) Abnormal nerve activity alters excitability and responsiveness at the dorsal horn (central nervous system), amplifying pain and inducing central sensitization
3) Decreased modulation of inhibitory pain pathway further amplifies pain perception. Central sensitization can occur within hours of tissue injury.
Adapted from Kehlet H. et.al. The Lancet Vol. 367 Persistent postsurgical pain: risk factors and prevention, pages 1618-1625 (2006)
The peripheral nervous system continuously receives large amounts of sensory information from the environment. The background level of this activity is referred to as “afferent noise”. In order to send only relevant information to the brain, the peripheral system constantly adapts to the background noise level, so that only stimuli above the background noise level are sent to the CNS for processing. The raising of the background noise threshold is referred to as habituation while the lowering of the background noise level threshold is referred to as sensitization.
Slowing, or preventing, the development of CS requires a sustained presence of a non-painful, habituating stimulus to the CNS, essentially “instructing” the system to raise sensation thresholds – this is what the RecoveryRx does.
The RecoveryRx produces low intensity (non-thermal), radio-frequency, electromagnetic energy pulses which increases afferent nerve activity originating in the tissue region where nerve damage will, or has, occurred. These pulses are repeated at the relatively high rate of 1000 times a second. This rate is critical since the A-alpha and A-beta nerves specifically respond to higher frequencies of stimulation. Using the RecoveryRx over the surgical area, peri-surgically, increases A-alpha and A-beta activity. The CNS then “sees” the RecoveryRx produced nerve responses as increased afferent noise, resulting in a habituation-like response, leading to a rise in the pain threshold level soon after the surgery and in turn serves to reduce the risk of SNPP developing.
https://www.recoveryrx.co/recovery-rx-home-page/technology/
Apparently enough thought was not given to Larry Smith's Blog
No "conspiracy involving established brokerages" is needed because it is 'Standard Operating Procedure' due to the SEC's lax enforcement of Reg SHO.
Larry comes from inside the Belly of the Beast and knows exactly what goes on.
My name is Larry Smith. I spent the first 25 years of my career working on Wall Street as an analyst with a primary focus on biotechnology and pharmaceutical stocks. However, I have also covered companies in several other industries. Most of this time was spent with Smith Barney and Hambrecht & Quist. Early in my career as an analyst, I was voted on the Institutional Investors All-Star team for pharmaceutical research for nine years in a row with my highest ranking being #2.
I became very interested in biotechnology in its infancy. I actually called on Genentech before they came public. I was also the analyst at Smith Barney when Amgen came public and was the first analyst to cover that company. The Wall Street Journal selected me as #2 in biotechnology stock picking earlier in my career.
Later in my career at Smith Barney, I was Executive Vice President, Director of Equities and Fixed Income Research, Chairman of the Investment Policy Committee, a member of the Board of Directors, on the Operating Committee and on the Commitment Committee. At Hambrecht & Quist, I was a Managing Director, Manager of Life Sciences Research, on the Operating Committee, on the Commitment Committee and was also Chairman of Annual H&Q Life Sciences Conference for six years.
In 2003, I founded DLS Research, LLC, a subscription research firm that performs due dilligence for institutional investors. Since 2003, I have interacted with over 150 biotechnology companies and track another 100 to some extent. SmithOnStocks is a new business direction for DLS Research.
I received a B.S. in Mechanical Engineering from Purdue University, an M.S. in Mechanical Engineering from Stanford University and an MBA from Columbia University.
Recap of Blog in case some did not see it:
In my opinion, Reg SHO is riddled with loopholes that render it ineffective in protecting investors from stock manipulation schemes enabled by illegal naked shorting. Also, the SEC seems strangely unconcerned about controlling illegal naked shorting and stock manipulation that results.
For an ordinary short sale, the stock must be located before the short sale can be executed. However, “bona fide” market makers are exempted from this rule and can short shares without locating the stock. This is naked shorting which if executed in accordance with the rules of Reg SHO is legal. When these rules are not followed, it becomes an illegal naked short.
“Bona fide” market makers who are perceived as providing liquidity to stock trading can maintain naked shorts for a longer six day period.
In practice, these provisions are routinely circumvented so that FTDs are not closed out. This results in the creation of counterfeit shares which the DTCC treats in the same manner as legal, registered shares. A nearly unlimited supply of such counterfeit shares can be created to overwhelm buy interest in a stock and drive down the price.
The SEC has consistently stated that it believes that both legitimate shorting and naked shorting are important to maintain market liquidity. The agency’s actions seem to consistently place more importance on liquidity than preventing illegal naked shorting. Very importantly, Reg SHO exempts bona fide market makers from locate requirements that apply to ordinary investors because it believes this is necessary to facilitate customer orders and maintain liquidity in fast moving markets. Hence, market makers are not required to adhere to the locate rule. They can naked short stock without a locate.
Also, some of the larger hedge funds expanded their business model to include market making. These widely accepted business models often result in avoiding the locate provision. These prominent market participants can implement speculative short selling by masquerading as a “bona fide” market makers. The SEC seldom can differentiate between market making and speculative trading.
https://smithonstocks.com/part-6-illegal-naked-shorting-the-secs-regulation-sho-is-intended-to-prevent-illegal-naked-shorting-but-is-ineffective/
I never said there was a Long Term Short of Millions of Shares
<<<<<<<< there is no evidence of any short interest in BIEL >>>>>>>>
BIEL releases a PR with good news of an FDA Clearance or a new OEM Partner.
Trading volume rises as investors want to own more shares.
The SP ticks up from a .0008 Ask to a .0009 Ask.
As the demand continues the MMs start selling Naked Short Shares at .0009 rather than allowing the Ask to rise to .001 where there are millions of shares available to meet the demand.
The seemingly endless supply of shares at .0009, it can literally be bottomless as these are phantom shares that do not exist, causes the positive Investor sentiments to fade and BIEL closes at .0009 . (how many times have we seen an Ask Size get hit with millions of shares in Buys yet not go down at all or go up)
After a couple of days BIEL drifts back to .0008 and the MMs cover their Naked Short with a 12.5% profit. They have zero expenses on this 12.5% gain as the shares for the Short were never bowered,
If the SEC gets a complaint and asks the MMs about that day's trading they say that they were, 'doing their job and creating Liquidity for BIEL'.
None of this Naked Shorting shows up on the twice a month Short Interest Report because it is all covered within several days or Rolled Over into a New Short if more time is needed to cover .
The idea behind Reg SHO and what Investors actually got are quite different
Dealer Brokers and Market Makers are largely self policing in following the Shorting Rules. While some trades initially marked as 'Short' may reconciled the same day and some may be by the 3 Day Delivery requirement there is no reporting on how many fall into these categories. The Dealer Broker/MM are free to follow their best interests until they get caught
The author of this Blog is Larry Smith, a former Executive VP at Smith Barney.
Overview
In previous blogs I traced the history of stock trading from the 1960s when stock certificates and cash were physically exchanged to settle trades to the paper free, totally electronic system that exists today. Instead of owning stock certificates, we now own digital entries located somewhere in the vaults of the inscrutable Depository Trust and Clearing Corporation (DTCC). This electronic system is absolutely critical to the functioning of our capital markets and our strong economic system. However, the DTCC and the prime brokers who own it have made the clearing and settlement system virtually non-transparent. This enables the routine manipulation of primarily but not exclusively, small stocks through illegal naked shorting.
The Securities and Exchange Corporation (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital formation. It enforces legislation that was first passed in 1938 to address short selling. There was no further legislation until 2005 when Regulation SHO was implemented specifically to address naked shorting issues that were a result of the move to the electronic clearing and settlement system. In my opinion, Reg SHO is riddled with loopholes that render it ineffective in protecting investors from stock manipulation schemes enabled by illegal naked shorting. Also, the SEC seems strangely unconcerned about controlling illegal naked shorting and stock manipulation that results.
This blog goes into some of the key rules of Reg SHO which are routinely circumvented by Prime Brokers, the DTCC (owned by Prime Brokers) and aggressive, short selling hedge funds who routinely execute stock manipulation schemes enabled by illegal naked shorting. Before reading this blog, you might want to review my five prior blogs on illegal naked shorting that provide important background information.
Regulation SHO was Legislation Intended to Stop Illegal Naked Shorting
In 2005, the SEC formally adopted Regulation SHO that is intended to prevent illegal naked shorting and stock manipulation which it facilitates. It defines locate and close out requirements relating to stock borrowed to execute short sales. It also places limits on trading in threshold securities that have experienced substantial Failures to Deliver in which a stock in a short sale is not delivered at settlement. For an ordinary short sale, the stock must be located before the short sale can be executed. However, “bona fide” market makers are exempted from this rule and can short shares without locating the stock. This is naked shorting which if executed in accordance with the rules of Reg SHO is legal. When these rules are not followed, it becomes an illegal naked short.
If the stock involved in the naked short can be located and borrowed in the two day period before settlement, it is just an ordinary short sale. However, if the stock cannot be located and borrowed prior to settlement, it creates a Fail to Deliver (FTD) situation. If the case of an FTD, a broker dealer is supposed to take cash from the short account and purchase shares in the open market to close out the position. “Bona fide” market makers who are perceived as providing liquidity to stock trading can maintain naked shorts for a longer six day period.
In practice, these provisions are routinely circumvented so that FTDs are not closed out. This results in the creation of counterfeit shares which the DTCC treats in the same manner as legal, registered shares. A nearly unlimited supply of such counterfeit shares can be created to overwhelm buy interest in a stock and drive down the price. This is a routine practice on Wall Street that is at the heart of innumerable manipulation schemes. This blog focuses primarily on rules of Reg SHO that attempt unsuccessfully to prevent illegal naked shorting. Later blogs will focus on techniques used to circumvent Reg SHO.
Locate Requirement
Ordinary investors are required to locate and borrow shares from another investor who is long the stock before executing a short sale. However, under Reg SHO, broker-dealers are treated differently and are allowed to execute a short sale without having borrowed the stock. Rule 203 (a) states that if broker dealers have reasonable grounds to believe that the security can be borrowed and delivered on or before the date that delivery is due, they can naked short. This often relies on easy to borrow lists of securities that are generated and policed by prime brokers. Hard to borrow lists are also maintained which are intended to prevent naked shorting in stocks that appear on this list.
Under Reg SHO then, a broker dealer can short stocks appearing on the easy to borrow list without first locating the shares to be delivered at settlement. If the shares are not located in time or not at all as in the case of illegal naked shorting, this is called a Fail to Deliver (FTD). The SEC says that repeated FTDs is a reason to remove the stock from the easy to borrow list. Stocks on the hard to borrow list should not be shorted before a locate. Also, absence from the hard to borrow list does not satisfy the reasonable belief requirement.
There is considerable ambiguity in the SEC’s reasonable belief definition and the easy and hard to borrow lists are created and maintained by broker dealers, not the SEC. These lists are subjective with no standard guidelines. This vague rule enables illegal naked shorting. Brokers can also use the DTCC’s stock borrow program to circumvent this requirement. The stock borrow program is little understood and is at the heart of much illegal naked shorting. I plan to go into this in much more detail in the next blog.
Bona Fide Market Makers are Granted Exceptions to the Locate Provision.
The SEC has consistently stated that it believes that both legitimate shorting and naked shorting are important to maintain market liquidity. The agency’s actions seem to consistently place more importance on liquidity than preventing illegal naked shorting. Very importantly, Reg SHO exempts bona fide market makers from locate requirements that apply to ordinary investors because it believes this is necessary to facilitate customer orders and maintain liquidity in fast moving markets. Hence, market makers are not required to adhere to the locate rule. They can naked short stock without a locate.
There is a lot of gray area in what constitutes a “bona fide” market maker. Reg SHO states that the exemption to the locate provision does not apply to speculative trading. It also states that market makers cannot use this to facilitate trading strategies for clients (short selling hedge funds). These guidelines are routinely ignored in day to day business on Wall Street.
In many cases, it is difficult to distinguish between market makers and hedge funds. All of the prime brokers are market makers and also operate hedge funds which they euphemistically refer to as proprietary trading. Also, the change from a fractional to a decimal system for trading stocks devastated the profitability of OTC market makers. In response, many shifted their strategy to become hedge funds while remaining market makers. Also, some of the larger hedge funds expanded their business model to include market making. These widely accepted business models often result in avoiding the locate provision. These prominent market participants can implement speculative short selling by masquerading as a “bona fide” market makers. The SEC seldom can differentiate between market making and speculative trading.
Close-out Requirement.
Rule 204 of Reg SHO covers the situation in which the short seller Fails to Deliver (FTD) the stock at the determined settlement time. If this occurs, Rule 204 requires action on the part of the brokers and dealers from whom the stock was borrowed to close out the trade by demanding that the short seller buy the stock in the open market. Settlements are made two days after a stock trade and this rule requires that the short seller must close out a FTD no later than the beginning of regular trading on the first day after the settlement date. This is three days after the trade and is referred to as T+2.
There are exemptions (of course) to this rule. If a broker- dealer has a FTD, but can demonstrate that that this resulted from “bona fide” market making activities, the close out of the FTD can be extended to the third day after the scheduled settlement day (T+5). If the position is not closed out, a participant in the short sell can not undertake more short sells unless it has entered into a pre-borrowing agreement as ordinary investors are required to do. This restriction stays in place until the FTD is closed out. Shortly, I will describe how this rule is easily avoided.
Techniques Used to Circumvent Reg SHO
The SEC has limited enforcement ability and seems to be content to allow Wall Street and the DTCC to police themselves. This was made evident in one lawsuit that I read in which a household name Prime Broker was alleged to have committed numerous illegal actions. These are representative of techniques that are used routinely across Wall Street by almost all prime brokers. Examples are:
* permitting important hedge fund clients to bypass the locate requirement when entering short sales,
* creating and distributing easy to borrow lists that improperly included threshold and hard-to-borrow securities to the firm’s proprietary traders and clients
* concealing FTDs through washed and matched trades, i.e. rolling over an FTD to another broker dealer
* transacting illegal stock sales in dark pools off the primary markets to avoid NYSE oversight and to maintain anonymity
* failing to reasonably supervise that locates were obtained and/or documented for short sales
* falsely marking short sales as long on order tickets to conceal naked short positions,
* falsely representing that they either possessed the borrowed securities or had located them for borrowing and delivery.
* failing to make legitimate or reasonable efforts to locate shares prior to short selling,
* entering into fictitious option contract to conceal naked short sales;
* using the DTCC stock borrowing program as a means to conceal naked short sales,
* submitting fake short interest and other reports to regulators;
* concealing their activity through falsely reporting shares created through illegal naked shorting as shares in brokerage statements of investors as if these assets were representative of real shares
* concealing their activity by issuing voting material to shareholders with nonexistent assets who have no corporate rights including the right to vote shares,
* failing to comply with responsibilities and duties to investigate and report suspicious transactions to regulatory authorities
https://smithonstocks.com/part-6-illegal-naked-shorting-the-secs-regulation-sho-is-intended-to-prevent-illegal-naked-shorting-but-is-ineffective/
Hmmmm, where was the "128 month" BS pulled from?
<<<<<<<< If Synergy doesn't buy 975,000 units in 128 months >>>>>>>>
Since you are adding months to the deal I will add the corresponding units and estimate 9,750,000 units in 128 months.
This is not an excerpt from a BIEL Contract
<<<<<<< "To remain as an exclusive distributor, you are required to sell certain amounts of products based on the size of your market and territory. We will discuss and finalize a Distributorship Agreement with you." >>>>>>>>
The heading is "What we expect from distributors".
A standard distributorship would be for one country, Prim Group in Spain or Novro Med S.A. de C.V. in Mexico for example
Synergy wanted and got 25 countries. To acquire this much RecoveryRx Real Estate 2 contractual specifics had to be declared, number of units to be sold, 975,000 and a specific period of time, 18 months.
I have been following BIEL for 12 years and have never seen these two specifications stated regarding a new distributor. If you have please provide an example.
This is not a typical BIEL distributor agreement. IMO, we will see that fact when the 7 country regulatory approval is completed and Synergies first purchase order is placed.
Apparently you have not been on the Board since the 8/25 Conference Call
25 Country, 975,000 unit Distribution Deal Signed
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169830850
I imagine that you played an essential part in that new investor also
Great job PW !!!
Great job KN !!!
Bammm!!! 8 million Share BUY at 8 , 12:16
Buys = 9.1 million shares
Sells = Zero
Go BIEL !!!
Thanks IB, those darn Facts, always getting in the way of BS about BIEL
Anyone who reads the Board for a few days knows exactly where the "Fake News" comes from.
Baloney sliced so thin you can read a newspaper through it
The Synergy Deal was announced at BIEL's first public Conference Call by the VP of Sales. JGD's Screen Shot gives written details of the Deal including 975,000 devices over 18 months.
The PR announcing the Deal will come after the 7 country Regulatory Approval triggers the first purchase order in Q4.
This Deal is Real. Stated by a BIEL executive at a public meeting where the company is liable for any false statements.
Ridiculous to think that BIEL would publish their Synergy Contract and let all of BIEL's competitors see their pricing strategy and the other proprietary information in a multimillion dollar contract.
What's next, BIEL needs to publish their ActiPatch Schematic or it is "FAKE NEWS".
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=169805137
The practicing doctors don't make these decisions
<<<<<<<< Maybe if we had put that Physician Education program we promised together, it would have been accepted? >>>>>>>>
In the UK it is the Local CCG bureaucracy who decide what gets covered.
In the US it is the Health Insurance Companies that decide what gets covered.
They both want Clinical Trials with thousands of patients, at a cost of millions of dollars, to verify efficacy.
Apparently B. Braun had clout with the National NHS, IMO they were instrumental in the ActiPatch Drug Tariff inclusion, but not so much influence with the hundredds of CCGs.
Total BS, the NHS CCGs are the Road Block not Doctors
The national UK NHS approved ActiPatch to be added to the Drug Tariff, the national list of approved drugs and medical products, in 2018.
The Local NHS bureaucracy, Clinical Commissioning Groups (CCG), have the final say on what doctors are allowed to prescribe in their jurisdiction.
All of the CCGs have had budget reductions for the last 15 years as the tax revenue that supports the NHS is not keeping up with medical costs.
The result is hundreds of medical items approved by the national NHS are not being approved for use by the Local CCGs, doctors are not allowed to prescribe them as a cost saving decision.
These Clinical Commissioning Groups hide behind the same excuses as US Health Insurance Companies, 'insufficient clinical data to support use, more research is needed', when it is really about one less expense to pay.
ActiPatch has good ROW coverage but we are talking RecoveryRx
Many open markets for RecoveryRx:
China
India
Japan
S Korea
Taiwan
Pakistan
Saudi Arabia
UAE
Bahrain
South Africa
Indonesia
Malaysia
Philippines
Singapore
Thailand
Listing of BIEL Worldwide Distributors,
https://www.bielcorp.com/distributors/
I think those are standard distributor requirements FB, as BIEL does not have the resources for these functions
From the BIEL website,
What we expect from distributors:
To remain as an exclusive distributor, you are required to sell certain amounts of products based on the size of your market and territory. We will discuss and finalize a Distributorship Agreement with you. Distributors will be responsible for translating product literature to the local language, managing product registrations, and holding and managing inventory locally.
Distributor Responsibility:
Top quality market penetration in your region. Top quality product presentation including participation in local medical trade fairs and orthopedic doctors’ conferences. Top quality sales force, regularly visiting customers in your market.