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KWK to go NYSE to OTC KWKA
01/09/2015 06:45 6:45 am Quicksilver Resrcs confirmed that it received notification from the NYSE that it had determined to commence proceedings to delist the Company's common stock; to trade on OTC under symbol KWKA
Stocks so dif from commods
Yes I was with 2 FCMs in 79-81 during silver run. Learned lot. Turns fast if Exchange changes margin reqs or slaps on a Sale Only but otherwise usually trends better than most stocks.
Funny thing is how ordinary Joe thinks commodities so 'high risk' compared to everyday DIS ConEd X DAL etc.
Except for the rare Hershey for divys stocks a crap shoot when head guys are crooks or bookkeeper CFO gets the Brazil itch.
Hard to fleece soybeans. lol
Reduce your stock stakes and park some in the $15-25 range for a bit just to reduce stress while concentrating on commods. Try a few /CL XLE USO for oil sport.
Good weekend.
WTSL midnite news dump Bk stores, jobs
Throw another on fire blaze of stores & jobs.
.11 to .04 from pre close into the last trading 8pm ET so they knew.
By Stephanie Gleason and Lillian Rizzo
Struggling teen retailer Wet Seal Inc. (WTSLA) has hired restructuring lawyers to help the company with a potential bankruptcy filing, according to people familiar with the matter.
The clothing retailer has hired Klee, Tuchin, Bogdanoff & Stern LLP , according to the people familiar with the matter.
Wet Seal said Wednesday that it is closing 338 stores and laying off nearly 3,700 employees. The closures will leave 173 stores in the chain. The company said it was forced to close the stores after being unable to negotiate "meaningful concessions from its landlords."
It is also under the gun with bondholders, after missing a bond payment on $28.8 million in debt, bringing that amount immediately due. Hudson Bay Capital , which holds the bonds, agreed to give Wet Seal until Monday before it takes any action to collect on the debt.
The situation remains fluid, but a bankruptcy filing could come sometime next week, according to one of the people familiar with the matter.
(An expanded version of this report appears on WSJ:com http://www.wsj.com/articles/teen-retailer-wet-seal-hires-restructuring-lawyers-1420756165?mod=mktw.).
- Stephanie Gleason ; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
01-09-15 0001ET
FREE $500K convert note. R/S soon
01/07/2015 08:30 FreeSeas Inc. Announces USD 500,000 Convertible Note Issuance
FREE $500K convert note
01/07/2015 08:30 FreeSeas Inc. Announces USD 500,000 Convertible Note Issuance
rotation FOMC may turn more dovish 2015: SCR
According to Standard Chartered Research , the 2015 FOMC will turn more dovish than in 2014 due to the rotation of regional Fed presidents:
Vocal hawks Richard Fisher (Dallas Fed) and Charles Plosser (Philadelphia Fed) are losing voting power; and the hawkish camp will be represented by Jeffrey Lacker only (Richmond Fed).
The San Francisco Fed's John Williams gets voting power, and he is a close ally of Janet Yellen (herself a former President of the San Francisco Fed).
Charles Evans (Chicago Fed) is not as strong a dove as Kocherlakota (Minneapolis Fed), who loses voting power, but Evans still advocates for the Fed to wait until 2016 to raise rates, later than most colleagues.
Another president getting voting power is Dennis Lockhart (Atlanta Fed), a 'centrist', who has repeatedly argued there is no rush to hike rates
NYT Betting on Default swaps
NY TImes THE EDITORIAL BOARD JAN. 2, 2015
Imagine a lender demanding that you miss a payment. That is the situation described in a recent article in The Wall Street Journal. In 2013, GSO Capital Partners, the debt-investing arm of the private equity firm the Blackstone Group, refused to renew a $122.3 million loan to the Spanish gambling company Codere unless it delayed paying interest on other existing debt. Why? It turns out that GSO had placed a bet that Codere’s existing debt would not be paid on time. When, lo and behold, the payment was late, GSO collected on its bet.
The bet in this scenario was a credit default swap, in which one party to the transaction — say, a bank, hedge fund, insurer or other institutional investor — agrees to pay the other party in the event of a bond default. Credit default swaps, a type of derivative, can be used to hedge against losses on bonds that investors own, or to speculate on how the underlying companies will perform.
If this sounds familiar, it should. In the years leading up to the financial crisis, banks and investors gorged on toxic mortgage bonds that were supposedly “insured” against loss with credit default swaps. When the bonds went bad, many swaps turned out to be worthless as well, necessitating bailouts to cushion catastrophic losses.
The Dodd-Frank financial reform law was supposed to curb speculation in swaps. But as The Journal has reported, hedge funds are increasingly using swaps to wager on whether weak firms will live or die. RadioShack, the troubled consumer electronics retailer, is one of several prominent examples. In December, RadioShack’s total debt came to about $1.4 billion, but swaps outstanding on the performance of the debt totaled $23.5 billion. Similarly, J.C. Penney, the ailing department store chain, had total debt of some $8.7 billion, but swaps outstanding on the debt totaled $19.3 billion.
Those gaps suggest excessive speculation, though it is hard, if not impossible, to gauge the precise exposure of funds to big losses. What is known is that a hedge fund that is betting on a company’s default has an incentive to push it over the edge. Conversely, a fund that is betting a troubled company will not default has an incentive to keep it afloat, at least long enough to avoid a big payout. Either way, the company becomes a pawn in a financial game.
Speculative activity is likely to increase. Last month, Congress repealed an anti-speculation provision of Dodd-Frank that would have prevented federally insured banks from conducting several types of swap transactions. In addition, the Federal Reserve recently gave the banks two extra years to meet a Dodd-Frank provision requiring them to sell their investments in private equity funds and hedge funds.
The next crisis will differ from the last crisis in its origins and effects. But it is probably safe to assume that sooner or later, poorly regulated credit derivatives will again play a role in damaging the economy.
Nasdaq Top Position '14 Total IPOs
Nasdaq Grabs Top Position for Total IPOs for U.S. Exchanges in 2014
Traders Magazine Online News, December 29, 2014
John D'Antona Jr.
Its official - Nasdaq OMX beat out its rivals to land the most public listing this year.
According to the exchange, it had its strongest year for listings (313) since 2000. It brought 189 companies public for the first time in 2014.
The 313 IPOs represent a 50 percent increase from the 126 IPOs that occurred on Nasdaq in 2013. The combined proceeds raised by Nasdaq-listed IPOs in 2014 totaled more than $22 billion.
"We are extremely proud to be the leading U.S. exchange venue for the most innovative and growth-oriented companies in the world," said Nelson Griggs, executive vice president, listings services at Nasdaq. "Companies from a broad range of industries have realized the benefits of a Nasdaq listing and the value of our commitment to provide the long-term solutions they need to successfully navigate the capital markets through all stages of their lifecycle."
According to Nasdaq OMX:
- 61 percent of all U.S. IPOs occurred on Nasdaq.
- Year-over-year, Nasdaq IPO listings were up 50 percent and total proceeds raised were up 39 percent.
- 106 health care IPOs raising over $7.7 billion, representing 93 percent of all U.S. health care IPOs listed on Nasdaq. Companies include: Juno Therapeutics, VWR Corp., INC Research Holdings and FibroGen Inc.
- 51 percent of technology IPOs listed on Nasdaq raising $6.5 billion in 2014 including: JD.com Inc., Markit Ltd., GoPro Inc., Sabre Corp., Weibo Corp. and TrueCar Inc.
- Nasdaq's technology IPOs in 2014 are up an average of 22.6 percent from their offer price to date.
- In 2014, Nasdaq became the leading exchange for U.S. airlines with the addition of Virgin America Inc. 66 percent of public U.S.-based airline companies are now listed on Nasdaq including: American Airlines, Inc., JetBlue Airways Corporation and Hawaiian Holdings, Inc.
- 80 percent of restaurant IPOs listed on Nasdaq including: Habit Restaurants Inc., El Pollo Loco Holdings Inc. and Dave & Buster's Entertainment Inc.
- 100 percent of specialty retail store IPOs listed on Nasdaq including: Michaels Companies Inc. and Sportsman's Warehouse Holdings Inc.
- 60 percent of international IPOs in the U.S. listed on Nasdaq including companies from China, France, Israel, and the United Kingdom. Companies include: JD.com Inc., Weibo Corp., Momo Inc., Cnova NV, Markit Ltd. and CyberArk Software Ltd.
- 77 percent of venture capital-backed IPOs listed on Nasdaq including: JD.com Inc., GoPro Inc., Hortonworks Inc., and Mobile Iron Inc.
- 63 percent of financial companies listed on Nasdaq in 2014.
- 5 companies transferred their exchange listing venue to Nasdaq, including Office Depot, representing over $6 billion in combined market value switching to Nasdaq in 2014. In addition, Walgreens and Advanced Micro Devices, Inc. have announced their intention to transfer their exchange listing venue to Nasdaq, representing over $72 billion in combined market value.
GEVO notice AH, transfer to Nas Cap Mkt
2-Jan-2015 17:05 ET
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transf
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On December 30, 2014, Gevo, Inc. (the "Company") received notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") that its application to transfer its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market had been approved. The Company's common stock listing will transfer to the Nasdaq Capital Market at the opening of trading on January 5, 2015. Following the move to the Nasdaq Capital Market, the Company's common stock will continue to trade under the symbol "GEVO".
As the Company previously announced, on June 30, 2014 the Company received notice from Nasdaq that it did not meet the minimum $1.00 per share requirement for continued listing on the NASDAQ Global Market under Marketplace Rule 5450(a)(1). By transferring its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market, the Company received an additional 180 calendar day compliance period, or until June 29, 2015, to regain compliance with the minimum $1.00 per share requirement for continued listing on the Nasdaq Capital Market. The Company intends to monitor the bid price of its common stock and its minimum market value of listed securities and will consider options available to it to achieve compliance.
Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transf
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.
On December 30, 2014, Gevo, Inc. (the "Company") received notice from the Listing Qualifications Department of The Nasdaq Stock Market LLC ("Nasdaq") that its application to transfer its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market had been approved. The Company's common stock listing will transfer to the Nasdaq Capital Market at the opening of trading on January 5, 2015. Following the move to the Nasdaq Capital Market, the Company's common stock will continue to trade under the symbol "GEVO".
As the Company previously announced, on June 30, 2014 the Company received notice from Nasdaq that it did not meet the minimum $1.00 per share requirement for continued listing on the NASDAQ Global Market under Marketplace Rule 5450(a)(1). By transferring its common stock listing from the Nasdaq Global Market to the Nasdaq Capital Market, the Company received an additional 180 calendar day compliance period, or until June 29, 2015, to regain compliance with the minimum $1.00 per share requirement for continued listing on the Nasdaq Capital Market. The Company intends to monitor the bid price of its common stock and its minimum market value of listed securities and will consider options available to it to achieve compliance.
Never know
ILNS pretty big A/S. Never had any luck w/ those in the billions range but they have run a few times.
This one, and IWEB, do have a trader following which helps.
IWEB serial & name changes A/S
A/S up to 6 bil from 5 bil per R/S too. DEF 14C
http://www.otcmarkets.com/stock/IWEB/filings
Capital Change=shs increased by 10 for 1 split. Ex-date=10/13/2004. Rec date=09/30/2004. Pay date=10/12/2004.
•Capital Change=shs decreased by 1 for 10 split. Pay date=01/07/2002.
•Capital Change=6-74 shs decreased by 1 for 3 reverse split
•New Issue=8-69 150,000 shs in units (1 sh Com & 1 warr) at $3 per unit by Charles Plohn & Co. Warrants entitle holder to purchase Com at $4 to 8-18-71.
•Capital Change=shs decreased by 1 for 80 split. Pay date=04/27/2005.
Company Notes
•Formerly=Disease Sciences, Inc. until 5-02
•Note=6-01 company is in the development stage as a biopharmaceuitcal & clinical diagnostics company
•Formerly=AuctionAnything.com, Inc. until 7-01
•Formerly=Lawton-York Corp. until 3-99
•Formerly=Mediplex Corp. to 6-74
ILNS has 6M A/S more post R/S too.
http://www.otcmarkets.com/stock/ILNS/filings
Def 14A earlier. Not that many bagholders 88 shown.
Second R/S in history Capital Change=shs decreased by 1 for 50 split. Pay date=04/12/2011.
Rest up icon, worthy. Sorry loss. HNY
Thx link BB & Best New Year!! em
Best to ya icon HNY!
RFMD & TQNT = QRVO 1/2/15
12:40 PM EST, 12/31/2014 (MT Newswires) -- RF Micro Devices (RFMD) and TriQuint Semiconductor (TQNT) requested that the NASDAQ Stock Market suspend trading and delist RFMD and TQNT common stock in connection with the companies' merger expected to close tomorrow.
Trading in the common stock of the new combined company, Qorvo, Inc., is expected to commence on the NASDAQ Global Select Market on January 2, 2015, under the stock ticker symbol "QRVO."
Price: 16.86, Change: -0.08, Percent Change: -0.47
http://www.mtnewswires.com © 2014 MT Newswires, a Division of MidnightTrader, Inc. All rights reserved.
Ebola Patient Zero 1 yr old bats tree
http://www.nytimes.com/2014/12/30/health/how-ebola-roared-back.html?emc=edit_th_20141230&nl=todaysheadlines&nlid=16092731
NYT long story Tuesday about how the Ebola spread and reasons for not having stopped it early on.
Story mentions the 1 year old boy believed to be Patient Zero. Elsewhere are stories he & others likely got it from playing in a nearby dead tree with lots of bats. Playing in and around the place they came into contact with droppings and all the rest.
Bats are eaten a lot but not believed to be source in this case.
Unusual for bats to spread Ebola amongst themselves tho they can. But the tree burned down and all the bat group flew out to settle nearby like in roofs of nearby homes. Bats adapt.
Destroying bats can be counterproductive since they eat tons of mosquitoes & bugs. Better to find a human cure fast.
China Final HSBC PMI Dec results
8:50pm ET
China HSBC PMI reading for December came in at 49.6, up slightly from the 49.5 preliminary reading, but still lower than November's 50.0. http://www.cnbc.com/id/102300097
LOL robo proofreader!
May 6, 2010, "flash cash"
That's what happens with newswires, no proofs or editors. Spell checks won't discern 'meaning' or 'context'.
TGC, TNVMF issues 13.6M common on convert note
2:47pm ET
(ACCESSWIRE via COMTEX) -- Singapore / ACCESSWIRE / December 30, 2014 / Terra Nova Energy Ltd. ("Terra Nova") (TGC)(otcqx:TNVMF) announces it has issued a total of 13,636,364 common shares in connection with the conversion of CAD $1,500,000 of its previously issued 10% convertible note at a price of $0.11 per share. This conversion has reduced the principal balance of convertible notes to $nil.
About Terra Nova Energy Ltd.
Terra Nova Energy Ltd. is an oil and gas company with a right to acquire up to a 55% working interest in two onshore petroleum exploration licenses ("PELs"), being PEL 112 and PEL 444, located on the western flank of the Cooper/Eromanga Basins in the State of South Australia, Australia. Its common shares trade on the TSX Venture Exchange under the symbol "TGC" and its ordinary shares trade in the U.S. on the OTCQX marketplace under the symbol "TNVMF."
For more information please contact:
Terra Nova Energy Ltd.
Lydia Danis
Corporate Communications
ACHI move day. cheap CRIS too em
ospreyeye thanks mucho. em
SEC to fix EDGAR flaw that can favor HFT
SEC Plans to Fix Data Release Flaw in Q1 2015
Traders Magazine Online News, December 29, 2014
John D'Antona Jr.
The Securities and Exchange Commission is about to fix a problem with its electronic data distribution system (EDGAR) that can favor high-frequency traders over other market participants.
Responding to government criticism and calls from the equity trading industry, SEC Chairman Mary Jo White said the agency plans to complete an overhaul and create an enhanced electronic distribution system in the first quarter, according to an earlier report in the Wall Street Journal.
The SEC's goal is to better even the playing field for all types of traders in the U.S. equities market, which some have argued is unfair and favors HFTs and other firms that can better afford to pay for market access and/or data feeds. At issue is the electronic distribution of corporate regulatory filings that has allowed low latency traders to get a first look at what could be market-moving news and execute trades using it before others.
The Journal wrote that the issue was first raised by a pair of academic studies published this year documenting a lag time between the moment paying subscribers-including trading firms, newswires and others-received filings from a direct feed from an SEC contractor and when the documents became available on the agency's website.
The studies unearthed lag times ranging from seconds to a minute or more, giving traders with access to the direct feeds ample time to act on the information ahead of investors who rely on the SEC's website.
The discovery was the latest to reveal how some superfast traders can exploit tiny advantages in how market-moving information is disseminated electronically, at times to the detriment of less-sophisticated investors.
Last year, The Wall Street Journal reported some high-speed traders were able to get the University of Michigan's consumer confidence report a few seconds before everyone else. High-speed traders also were paying to get direct access to market-moving news releases before other investors from certain press-release distributors, the Journal reported in February. Both revelations led the companies distributing the information to stop the practice.
Regulators have been beefing up their focus on computer trading in recent years amid revelations some sophisticated firms have gained advantages over others. They have also worked to address electronic market malfunctions such as the May 6, 2010, "flash cash" and a failure in the Nasdaq Stock Market's data feed last year that halted trading in Nasdaq stocks for hours.
SEC Chairman Mary Jo White has vowed to ratchet up oversight of computer trading. In June, she said in a speech in New York that while technology has increased market efficiency, "it can also allow severe problems to develop very quickly."
The recent studies focused on the SEC's Electronic Data Gathering, Analysis and Retrieval System, or Edgar, which was launched in the 1990s to disseminate corporate earnings reports and other documents filed to the agency. The studies analyzed differences between the time filings distributed by a contractor through the Edgar system were sent to subscribers of its public dissemination system, or PDS, and when they appeared on the SEC website. The studies showed evidence of trading upon the release of information through the direct feed and before it reached the Edgar website.
The Journal reported the issue in an Oct. 29 article, citing the studies. Following the article, several members of Congress raised concerns about the issue with SEC officials.
On Dec. 19, the SEC chairman, in a letter to Senate Banking Chairman Tim Johnson (D., S.D.), said the agency has reviewed its distribution system and is "implementing an enhancement to our system designed to ensure that Edgar filings are available to the public on the SEC website before such filings are made available to PDS subscribers."
White wrote that the SEC expects to complete the process in the first quarter. "Upon implementation, we will continue to monitor our systems to ensure optimal dissemination of Edgar filings to the public."
An SEC spokeswoman confirmed the contents of the letter. SEC officials have also spoken with staff members of Sens. Chuck Grassley (R., Iowa) and Jack Reed (D., R.I.) about the matter, telling them they planned to fix the Edgar distribution system, according to people familiar with the conversations.
SEC to fix EDGAR flaw that can favor HFT
SEC Plans to Fix Data Release Flaw in Q1 2015
Traders Magazine Online News, December 29, 2014
John D'Antona Jr.
The Securities and Exchange Commission is about to fix a problem with its electronic data distribution system (EDGAR) that can favor high-frequency traders over other market participants.
Responding to government criticism and calls from the equity trading industry, SEC Chairman Mary Jo White said the agency plans to complete an overhaul and create an enhanced electronic distribution system in the first quarter, according to an earlier report in the Wall Street Journal.
The SEC's goal is to better even the playing field for all types of traders in the U.S. equities market, which some have argued is unfair and favors HFTs and other firms that can better afford to pay for market access and/or data feeds. At issue is the electronic distribution of corporate regulatory filings that has allowed low latency traders to get a first look at what could be market-moving news and execute trades using it before others.
The Journal wrote that the issue was first raised by a pair of academic studies published this year documenting a lag time between the moment paying subscribers-including trading firms, newswires and others-received filings from a direct feed from an SEC contractor and when the documents became available on the agency's website.
The studies unearthed lag times ranging from seconds to a minute or more, giving traders with access to the direct feeds ample time to act on the information ahead of investors who rely on the SEC's website.
The discovery was the latest to reveal how some superfast traders can exploit tiny advantages in how market-moving information is disseminated electronically, at times to the detriment of less-sophisticated investors.
Last year, The Wall Street Journal reported some high-speed traders were able to get the University of Michigan's consumer confidence report a few seconds before everyone else. High-speed traders also were paying to get direct access to market-moving news releases before other investors from certain press-release distributors, the Journal reported in February. Both revelations led the companies distributing the information to stop the practice.
Regulators have been beefing up their focus on computer trading in recent years amid revelations some sophisticated firms have gained advantages over others. They have also worked to address electronic market malfunctions such as the May 6, 2010, "flash cash" and a failure in the Nasdaq Stock Market's data feed last year that halted trading in Nasdaq stocks for hours.
SEC Chairman Mary Jo White has vowed to ratchet up oversight of computer trading. In June, she said in a speech in New York that while technology has increased market efficiency, "it can also allow severe problems to develop very quickly."
The recent studies focused on the SEC's Electronic Data Gathering, Analysis and Retrieval System, or Edgar, which was launched in the 1990s to disseminate corporate earnings reports and other documents filed to the agency. The studies analyzed differences between the time filings distributed by a contractor through the Edgar system were sent to subscribers of its public dissemination system, or PDS, and when they appeared on the SEC website. The studies showed evidence of trading upon the release of information through the direct feed and before it reached the Edgar website.
The Journal reported the issue in an Oct. 29 article, citing the studies. Following the article, several members of Congress raised concerns about the issue with SEC officials.
On Dec. 19, the SEC chairman, in a letter to Senate Banking Chairman Tim Johnson (D., S.D.), said the agency has reviewed its distribution system and is "implementing an enhancement to our system designed to ensure that Edgar filings are available to the public on the SEC website before such filings are made available to PDS subscribers."
White wrote that the SEC expects to complete the process in the first quarter. "Upon implementation, we will continue to monitor our systems to ensure optimal dissemination of Edgar filings to the public."
An SEC spokeswoman confirmed the contents of the letter. SEC officials have also spoken with staff members of Sens. Chuck Grassley (R., Iowa) and Jack Reed (D., R.I.) about the matter, telling them they planned to fix the Edgar distribution system, according to people familiar with the conversations.
Fastest home internet access ever rolls out in US city
By Eric Mack December 27, 2014
Some residents of Minneapolis, Minnesota, received a holiday gift this December – the fastest home internet speed available just about anywhere in the world.
US Internet, based in the Minneapolis suburb of Minnetonka, announced this week that it has begun rolling out 10 gigabit per second internet access, ten times faster than Google Fiber's much-publicized gigabit connections, and similar planned networks in the UK.
It's also much faster than typical speeds in South Korea, often cited as having the fastest average connections in the world. The company says that compared to the rest of the United States, 10 Gbps is about 200 times faster than the average home connection nationwide.
The fiber optic service will cost $399 per month and the company claims that it will deliver matching upload and download speeds. While only available to a limited number of homes in the southwestern part of the city this winter, US Internet plans to expand its service area in the summer of 2015.
The company currently offers gigabit service for $65 per month in the same service area. In many areas of the United States, cable internet providers charge a comparable amount for connections with a fraction of that kind of speed, while others must contend with even slower DSL access.
Source: US Internet
See BkofChina ruble/yuan trade deal w/o USD
BofChina announced allowing trade of derivatives for companies & investors to bet on exchange rate between ruble & yuan, w/o USD between them as chaperone.
Dow Jones has story. I posted it twice already. 8:57pm ET
'Rubble' had soft day on more bank woes.
China sets direct ruble/yuan deal w/o usd
2057 ET. Rubble (ah ruble) did slip more today.
What new devilry is this? While all of Christendom was recovering from a day over-indulging on eggnog, figgy pudding and antics worthy of that new quadcopter drone, China was busy extending its financial tentacles. On Dec. 26 , the currency boffins at the People's Bank of China announced that, starting this week, they would begin allowing the trade of derivatives for companies and investors to bet on the exchange rate between Russia's ruble and China's currency, the yuan, with no U.S. dollars between them as chaperone.
Conspiracy theorists weren't so besotted with Yuletide cheer that they didn't sit up and cry foul. This, they bellowed, was a clear instance of China stepping in to lend a helping hand to its old Cold War comrade and prevent Western sanctions (and cheap Saudi crude) from breaking Russia's back. And just when they seemed so close to convincing Moscow into pushing its proxies in eastern Ukraine into a peace deal and its Middle-Eastern puppet Syria to the negotiating table, too.
The derivatives deal comes on the heels of an October agreement allowing Russia's central bank to borrow up to 150 billion yuan ( $24.4 billion ) using swap agreements. Some commentators called that deal a lifeline to Russia as the ruble slid. The Russian currency has lost half of its value this year, forcing Moscow to take extreme measures to avoid a balance of payments crisis, including raising the benchmark interest rate to 17% and ordering Russia's biggest exporters to cash in their dollars for rubles.
It may therefore seem like Beijing is trying to turn Russia's crisis into its own opportunity -- to sew a silk purse from Moscow's ear. But the Chinese panda may not exactly be scratching the Russian bear's back here. Opening up a credit line in yuan to Moscow doesn't begin to solve Russia's immediate problem: oil prices are too low relative to its imports and overseas debt. Unless Russia can substitute trade with the West for trade with China , the balance of payments risk remains as long as the ruble is in free-fall. All the yuan in the world can't help Russia if it runs out of dollars.
Indeed, China is only offering a long-term solution to Russia's immediate dilemma. Opening a swap line and allowing for the trade in ruble-yuan forwards and swaps makes it easier for Russia to conduct its foreign trade in yuan instead of U.S. dollars or Euros. As China opens its own economy further to foreign investors, it may someday make sense for central banks like Russia's to hold yuan in their reserves, just as they now holds dollars and to a lesser extent Euros, yen and gold. When that happens, a soaring dollar wouldn't necessarily be game-over for Russia's economy. Until Russia kicks its crude-export habit, however, falling oil prices will hurt in any currency.
The advantages to China of internationalizing the yuan are much clearer. As Citigroup notes, China accounts for roughly 11% of global currency trades, but less than 2% of those trades are settled in yuan. Earning dollars was awesome when China was using cheap exports to fund its rise from poverty. But it's now a middle-income nation with almost $4 trillion in predominantly dollar reserves. With no other country's financial markets big enough to absorb even a fraction of that, most of those greenbacks go right back to the U.S. to be invested in U.S. Treasuries and quasi- government agency debt. U.S. Congress members may grouse about America being in hock to China , but the truth is that China is at the mercy of its giant, heavily indebted trading partner.
Like any yield-hungry baby boomer staring into the face of retirement, China's aging economy is getting to the point where America's rising debt, low interest rates and weak currency do more harm than good. China has tried to diversify to some extent into higher-yielding investments. But it can't do too much without taking on risky emerging-market risk or torpedoing the value of its existing U.S. holdings as it tries to sell them off.
Its solution: gradually convince the world to use its own currency instead. That way China can accrue the benefits of a strong currency as it moves from being a dynamic exporter to an aging importer, and can even borrow abroad in its own currency. China won't make any quick moves: the downside of having the world use your currency, as the U.S. Federal Reserve has learned, is that you can't control what happens to money beyond your borders. To some extent, that robs a central bank of control over domestic interest rates. Oh, and you have to have open financial borders, something else China isn't yet completely comfortable with.
So China's financial feelers to Russia aren't part of an urgent conspiracy to foil Western sanctions. They're part of a more gradual, profound plot: to topple the U.S. dollar as the world's reserve currency.
The Russians aren't the only ones involved, either. Beijing already has swap arrangements with a long list of co- conspirators in Southeast Asia and in November sealed a swaps deal with Australia . On Christmas day of 2011, it signed a swap agreement with regional rival Japan . And in June, it signed an MoU to get advice on currency derivatives from none other than the Chicago Mercantile Exchange .
As one former U.S. Treasury official told me a few years ago, no one asked China to buy up all those dollars. If internationalizing the yuan is a conspiracy, it seems everyone is in on it.
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Comments? E-mail us at wayne.arnold@barrons.com
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Comments? E-mail us at asiaeditors@barrons.com
(END) Dow Jones Newswires
12-29-14 2057ET
Copyright (c) 2014 Dow Jones & Company, Inc.
China sets direct ruble/yuan deal w/o usd
What new devilry is this? While all of Christendom was recovering from a day over-indulging on eggnog, figgy pudding and antics worthy of that new quadcopter drone, China was busy extending its financial tentacles. On Dec. 26 , the currency boffins at the People's Bank of China announced that, starting this week, they would begin allowing the trade of derivatives for companies and investors to bet on the exchange rate between Russia's ruble and China's currency, the yuan, with no U.S. dollars between them as chaperone.
Conspiracy theorists weren't so besotted with Yuletide cheer that they didn't sit up and cry foul. This, they bellowed, was a clear instance of China stepping in to lend a helping hand to its old Cold War comrade and prevent Western sanctions (and cheap Saudi crude) from breaking Russia's back. And just when they seemed so close to convincing Moscow into pushing its proxies in eastern Ukraine into a peace deal and its Middle-Eastern puppet Syria to the negotiating table, too.
The derivatives deal comes on the heels of an October agreement allowing Russia's central bank to borrow up to 150 billion yuan ( $24.4 billion ) using swap agreements. Some commentators called that deal a lifeline to Russia as the ruble slid. The Russian currency has lost half of its value this year, forcing Moscow to take extreme measures to avoid a balance of payments crisis, including raising the benchmark interest rate to 17% and ordering Russia's biggest exporters to cash in their dollars for rubles.
It may therefore seem like Beijing is trying to turn Russia's crisis into its own opportunity -- to sew a silk purse from Moscow's ear. But the Chinese panda may not exactly be scratching the Russian bear's back here. Opening up a credit line in yuan to Moscow doesn't begin to solve Russia's immediate problem: oil prices are too low relative to its imports and overseas debt. Unless Russia can substitute trade with the West for trade with China , the balance of payments risk remains as long as the ruble is in free-fall. All the yuan in the world can't help Russia if it runs out of dollars.
Indeed, China is only offering a long-term solution to Russia's immediate dilemma. Opening a swap line and allowing for the trade in ruble-yuan forwards and swaps makes it easier for Russia to conduct its foreign trade in yuan instead of U.S. dollars or Euros. As China opens its own economy further to foreign investors, it may someday make sense for central banks like Russia's to hold yuan in their reserves, just as they now holds dollars and to a lesser extent Euros, yen and gold. When that happens, a soaring dollar wouldn't necessarily be game-over for Russia's economy. Until Russia kicks its crude-export habit, however, falling oil prices will hurt in any currency.
The advantages to China of internationalizing the yuan are much clearer. As Citigroup notes, China accounts for roughly 11% of global currency trades, but less than 2% of those trades are settled in yuan. Earning dollars was awesome when China was using cheap exports to fund its rise from poverty. But it's now a middle-income nation with almost $4 trillion in predominantly dollar reserves. With no other country's financial markets big enough to absorb even a fraction of that, most of those greenbacks go right back to the U.S. to be invested in U.S. Treasuries and quasi- government agency debt. U.S. Congress members may grouse about America being in hock to China , but the truth is that China is at the mercy of its giant, heavily indebted trading partner.
Like any yield-hungry baby boomer staring into the face of retirement, China's aging economy is getting to the point where America's rising debt, low interest rates and weak currency do more harm than good. China has tried to diversify to some extent into higher-yielding investments. But it can't do too much without taking on risky emerging-market risk or torpedoing the value of its existing U.S. holdings as it tries to sell them off.
Its solution: gradually convince the world to use its own currency instead. That way China can accrue the benefits of a strong currency as it moves from being a dynamic exporter to an aging importer, and can even borrow abroad in its own currency. China won't make any quick moves: the downside of having the world use your currency, as the U.S. Federal Reserve has learned, is that you can't control what happens to money beyond your borders. To some extent, that robs a central bank of control over domestic interest rates. Oh, and you have to have open financial borders, something else China isn't yet completely comfortable with.
So China's financial feelers to Russia aren't part of an urgent conspiracy to foil Western sanctions. They're part of a more gradual, profound plot: to topple the U.S. dollar as the world's reserve currency.
The Russians aren't the only ones involved, either. Beijing already has swap arrangements with a long list of co- conspirators in Southeast Asia and in November sealed a swaps deal with Australia . On Christmas day of 2011, it signed a swap agreement with regional rival Japan . And in June, it signed an MoU to get advice on currency derivatives from none other than the Chicago Mercantile Exchange .
As one former U.S. Treasury official told me a few years ago, no one asked China to buy up all those dollars. If internationalizing the yuan is a conspiracy, it seems everyone is in on it.
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(END) Dow Jones Newswires
12-29-14 2057ET
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A Dark ETMF Comes Calling
As transparency remains a goal for the SEC, traders are pursuing an opaque exchange-traded managed fund
Traders Magazine Online News, December 26, 2014
Spencer Mindlin
Regulators sent a message to the investment management community last month that they are ready to embrace innovation, but the managers have their collective guard up. U.S investment firm Eaton Vance won approval from the SEC to launch a new kind of investment product: a non-transparent type of Exchange-Traded Fund (ETF) called an Exchange-Traded Managed Fund (ETMF). Sort of a next-generation mutual fund, the ETMF is a completely different type of animal than the "blind trust" type of ETF. Both provide opacity for the portfolio manager, but the latter has numerous pricing and trading uncertainties and potential conflicts of interest.
The SEC was cautious. Only days before the approval, the regulator rejected a different type of non-transparent ETF characterized by its utilization of a “blind trust” and unique redemption process. The SEC apparently didn’t care much for the funds’ plans to ensure that ETF market prices would not deviate significantly from their net asset value (NAV), and deemed that they “failed to meet the public interest.”
The SEC’s basic problems with the funds were threefold. First, a “blind trust” and its opaqueness seem to serve the interests of the portfolio manager more than of market participants and investors. Second, the funds rely heavily on the intraday indicative net asset value (IIV), a calculated price that’s 15 seconds old by the time it updates; an ETF trader would never rely on an intraday indicative value for price discovery and hedging of risk and exposures. And third, these investment products are not transparent; the SEC heavily favors transparency.
The lack of transparency is likely to discourage participation by ETF market-makers. Their role is critical in the ETF ecosystem to provide liquidity and price discovery, and ensure close linkage between the ETF price and its NAV. The opacity also impacts their ability to effectively manage their risk. ETF market-makers would have needed to figure out how the ETF’s IIV would move in relation to various market forces such as interest rates, commodity prices and broad-based indexes.
The SEC also expressed little faith that these products would hold up during periods of market stress, when the ability to quickly obtain fair-value pricing is especially important.
Concerns abound. For one, the SEC has sought to impose more disclosure requirements on mutual funds in favor of more transparency, not less. Two, nontransparent active ETFs could prove to be fertile ground for risky and illiquid assets that could sprout the type of systemic risk that led to the 2008 financial crisis. Three, mutual funds’ understood fees could be replaced with a mix of explicit and implicit costs including increased transaction costs, wide bid/ask spreads and new forms of arbitrage. And finally, at the core of the SEC’s concerns is the potential for these ETFs to deviate from NAV. ETF premiums and discounts would increase and hinder fair-value price discovery.
Still, non-transparent active ETF products are hailed by some as potential game-changers for the investment industry, and industry advocates remain optimistic. So expect to see more attempts to apply for SEC approval.
ETF sponsors have plenty of incentive to see these products come to fruition, as there is little left of the market to index, and an active manager can command higher fees than a passive manager. There will also always be an appetite for actively managed portfolios despite their long-term track record compared to passive indexing strategies.
A New ETF Offering
This isn’t to say that non-transparent funds don’t potentially have value. The transition from traditional mutual funds into an active ETF structure should provide net-neutral to net-positive outcomes for investors. The investor would simply be replacing one relatively non-transparent investment product (mutual funds) with another (non-transparent active ETFs). The ETF structure should benefit mutual fund investors with advantages such as tax efficiencies, lower costs and improved tracking.
For the portfolio manager, it is easy to understand his or her desire to protect the secret sauce. The structure also inhibits other market participants from profiting from portfolio changes at the expense of the fund.
The investor and media frenzy witnessed with the “me-too” launches of leveraged and inverse ETFs provided a cautionary tale for what happens when poorly understood - and arguably unnecessary - investment products are put in front of investors. This time, the SEC took a proactive and cautious position.
As for the ETF sponsors, it probably didn’t help the pitch to lead with terms like “nontransparent,” “active” and “blind.” These are not exactly what an investor wants to see when deciding where to invest.
Spencer Mindlin is an analyst with Aite Group who focuses on capital markets technology.
A Dark ETMF Comes Calling
As transparency remains a goal for the SEC, traders are pursuing an opaque exchange-traded managed fund
Traders Magazine Online News, December 26, 2014
Spencer Mindlin
Regulators sent a message to the investment management community last month that they are ready to embrace innovation, but the managers have their collective guard up. U.S investment firm Eaton Vance won approval from the SEC to launch a new kind of investment product: a non-transparent type of Exchange-Traded Fund (ETF) called an Exchange-Traded Managed Fund (ETMF). Sort of a next-generation mutual fund, the ETMF is a completely different type of animal than the "blind trust" type of ETF. Both provide opacity for the portfolio manager, but the latter has numerous pricing and trading uncertainties and potential conflicts of interest.
The SEC was cautious. Only days before the approval, the regulator rejected a different type of non-transparent ETF characterized by its utilization of a “blind trust” and unique redemption process. The SEC apparently didn’t care much for the funds’ plans to ensure that ETF market prices would not deviate significantly from their net asset value (NAV), and deemed that they “failed to meet the public interest.”
The SEC’s basic problems with the funds were threefold. First, a “blind trust” and its opaqueness seem to serve the interests of the portfolio manager more than of market participants and investors. Second, the funds rely heavily on the intraday indicative net asset value (IIV), a calculated price that’s 15 seconds old by the time it updates; an ETF trader would never rely on an intraday indicative value for price discovery and hedging of risk and exposures. And third, these investment products are not transparent; the SEC heavily favors transparency.
The lack of transparency is likely to discourage participation by ETF market-makers. Their role is critical in the ETF ecosystem to provide liquidity and price discovery, and ensure close linkage between the ETF price and its NAV. The opacity also impacts their ability to effectively manage their risk. ETF market-makers would have needed to figure out how the ETF’s IIV would move in relation to various market forces such as interest rates, commodity prices and broad-based indexes.
The SEC also expressed little faith that these products would hold up during periods of market stress, when the ability to quickly obtain fair-value pricing is especially important.
Concerns abound. For one, the SEC has sought to impose more disclosure requirements on mutual funds in favor of more transparency, not less. Two, nontransparent active ETFs could prove to be fertile ground for risky and illiquid assets that could sprout the type of systemic risk that led to the 2008 financial crisis. Three, mutual funds’ understood fees could be replaced with a mix of explicit and implicit costs including increased transaction costs, wide bid/ask spreads and new forms of arbitrage. And finally, at the core of the SEC’s concerns is the potential for these ETFs to deviate from NAV. ETF premiums and discounts would increase and hinder fair-value price discovery.
Still, non-transparent active ETF products are hailed by some as potential game-changers for the investment industry, and industry advocates remain optimistic. So expect to see more attempts to apply for SEC approval.
ETF sponsors have plenty of incentive to see these products come to fruition, as there is little left of the market to index, and an active manager can command higher fees than a passive manager. There will also always be an appetite for actively managed portfolios despite their long-term track record compared to passive indexing strategies.
A New ETF Offering
This isn’t to say that non-transparent funds don’t potentially have value. The transition from traditional mutual funds into an active ETF structure should provide net-neutral to net-positive outcomes for investors. The investor would simply be replacing one relatively non-transparent investment product (mutual funds) with another (non-transparent active ETFs). The ETF structure should benefit mutual fund investors with advantages such as tax efficiencies, lower costs and improved tracking.
For the portfolio manager, it is easy to understand his or her desire to protect the secret sauce. The structure also inhibits other market participants from profiting from portfolio changes at the expense of the fund.
The investor and media frenzy witnessed with the “me-too” launches of leveraged and inverse ETFs provided a cautionary tale for what happens when poorly understood - and arguably unnecessary - investment products are put in front of investors. This time, the SEC took a proactive and cautious position.
As for the ETF sponsors, it probably didn’t help the pitch to lead with terms like “nontransparent,” “active” and “blind.” These are not exactly what an investor wants to see when deciding where to invest.
Spencer Mindlin is an analyst with Aite Group who focuses on capital markets technology.
Japan Industrial Output Nov -.6%, exp +.8%
Japan Shares Swing as Investors Weigh Data on Inflation, Output
By Anna Kitanaka and Yuko Takeo Dec 25, 2014 7:31 PM ET
Japanese shares fluctuated, with the Topix (TPX) index headed for a weekly advance, as investors assessed data on inflation, industrial output and retail sales.
Sumitomo Mitsui Financial Group Inc., the country’s second-largest lender by market value, gained 1.2 percent after saying it agreed to buy Citigroup Inc.’s Japanese consumer-banking business. Zojirushi Corp., a maker of kitchen appliances, tumbled 7 percent after forecasting a 31 percent drop in profit. Bridgestone Corp., Asia’s biggest tiremaker, slid 0.9 percent as rubber-product companies sank the most among the 33 Topix industry groups.
The Topix added 0.2 percent to 1,424.21 as of 9:25 a.m. in Tokyo after retreating as much as 0.1 percent. Volume was 32 percent lower than the 30-day intraday average. The measure is poised for a 1 percent gain this week. The Nikkei 225 Stock Average was little changed at 17,807.47 today. The Tokyo Stock Exchange Mothers Index of smaller companies climbed 2.2 percent, while the yen dropped 0.2 percent to 120.34 per dollar.
“I expect stocks to remain fairly steady today given the lack of market participants,” said Juichi Wako, a senior strategist at Nomura Holdings Inc. in Tokyo. “With the market overall lacking direction, investors are more likely to focus on small caps.”
Japan’s inflation rate slowed for a fourth straight month, adding to central bank chief Haruhiko Kuroda’s challenges in reflating the world’s third-biggest economy. Consumer prices excluding fresh food rose 2.7 percent in November from a year earlier, the statistics bureau said today, down from 2.9 percent the previous month and matching the median projection of economists surveyed by Bloomberg.
Industrial production fell 0.6 percent in November from the previous month, data showed today. Analysts surveyed by Bloomberg had expected a 0.8 percent advance. Retail sales unexpectedly dropped 0.3 percent on the month.
To contact the reporters on this story: Anna Kitanaka in Tokyo at akitanaka@bloomberg.net; Yuko Takeo in Tokyo at ytakeo2@bloomberg.net
NYT warns on insider trading ruling
Last sentence "In the meantime, public mistrust of the stock market is warranted as are doubts about its integrity."
When Insider Trading Is Legal
By THE EDITORIAL BOARD DEC. 23, 2014
The Justice Department is reviewing its options in response to a recent court ruling that overturned two insider-trading convictions and threatens others. Unfortunately, the options are limited, and the ruling — a setback in the fight against rigged markets — is likely to stand for a long time.
The case involved Todd Newman and Anthony Chiasson, hedge fund managers whose insider-trading convictions from 2012 were reversed this month based on a narrow reading of prevailing laws and rules. The judges, on the federal appeals court for the Second Circuit, said that trading on nonpublic information is illegal only if the direct recipient of the information provides or promises the tipper a personal benefit in exchange for the information. They said that Mr. Newman and Mr. Chiasson, who received the tips through intermediaries rather than directly from a corporate insider, were too distant from the original tipper to have known of a quid pro quo.
That finding alone has sparked debate about the correct interpretation of the law. But the judges didn’t stop there. They said that in most cases there would be no unlawful insider trading unless the tipper received money or some other tangible benefit for the information. That reasoning challenges a bedrock of insider-trading law that holds that spreading and using nonpublic information can be illegal even if it is provided free, say, to help a friend.
In effect, the ruling provides greater leeway to trade on inside information, while making it harder to prosecute insider trading.
The Justice Department should ask for a review of the decision by all of the court’s judges. An appeal to the Supreme Court is unlikely, and the complicated fact pattern of the case makes it a poor vehicle for such an appeal. Besides, Justice Scalia has suggested that overzealous prosecution of insider trading is a bigger problem than insider trading itself, a stance that bodes ill for well-policed markets. In the meantime, public mistrust of the stock market is warranted as are doubts about its integrity.
5 cent spread test costly, brokers
U.S. retail brokers warn 'tick size' plan to boost investor costs
By John McCrank
NEW YORK Tue Dec 23, 2014 8:47pm GMT
Dec 23 (Reuters) - A plan by the U.S. Securities and Exchange Commission to widen the minimum trading increments of some small-cap stocks to test if that would spur more trading could end up harming mom-and-pop investors, retail brokerages said in letters to the regulator.
The potential cost of the program to all investors could be up to $455 million dollars annually, TD Ameritrade Holding Corp said in a letter dated Dec. 22, and posted to the SEC's website on Tuesday. The No. 1 retail broker by client trading volume estimated the potential cost to its customers between $11 million and $18.4 million.
The SEC's proposal would increase the minimum size between the bid and the ask price of some thinly traded stocks of companies with market capitalizations of $5 billion or less, trading at $2 per share or more, to 5 cents from 1 cent for a one year period.
Supporters of the plan, known as the "tick size pilot," say it would incentivize brokerages, which profit off of the bid-ask spread, to post more bids and offers, making it easier for others to trade these stocks. The brokerages could then use the extra profits to increase their research on small-cap companies, prompting more firms to go public and provide more jobs.
But some retail brokerages say the plan is flawed and its costs may outweigh any benefits.
Charles Schwab Corp said in a letter to the SEC that the program would ultimately result in a "wealth transfer" from retail investors to stock exchanges and middlemen. Fidelity Investments also said in a letter to the regulator that it does not support the plan.
All three of the retail brokers said the pilot, which includes three test groups and a control group, would add unnecessary complexity and risk to the market and, because of that, many brokers and investors might stop trading the stocks chosen for the pilot altogether.
The firms also opposed the idea that stocks in one of the test groups would be forced to trade more on exchanges rather than in broker-owned alternative trading systems, where nearly all retail orders end up.
This could erode a significant source of profit for retail brokerages, most of which sell their client orders to other brokers to be executed, rather than paying exchanges to match them. Retail orders can be more profitable for brokers than orders from better-informed institutional traders. (Reporting by John McCrank)
SEC on stock promoter side deals IPOs
The Securities and Exchange Commission today charged a stock promoter based in Santa Barbara, Calif. , with fraudulently raising nearly $3.5 million from investors purportedly to purchase Facebook and Twitter shares prior to their initial public offerings (IPOs).
The SEC alleges that instead of purchasing the shares in the secondary market as promised, Efstratios “Elias” Argyropoulos and his firm Prima Capital Group misappropriated investor funds. They used the money primarily for day trading of stocks and options as well as to pay off certain investors who complained when they didn't receive the promised Facebook or Twitter shares.
Argyropoulos agreed to settle the SEC's charges and be barred from working for an investment adviser or broker-dealer, and financial penalties will be determined at a later date.
“Argyropoulos capitalized on the high demand for pre-IPO Facebook and Twitter shares to steal investor money and secretly fund his own day trading,” said Michele Wein Layne , Director of the SEC's Los Angeles Regional Office.
The SEC's complaint charges Argyropoulos and Prima Capital with violating the antifraud provisions and broker-dealer registration provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. Argyropoulos and Prima Capital agreed to settle the charges without admitting or denying the allegations, and the settlement is subject to court approval.
The SEC separately announced an administrative proceeding against Khaled A. Eldaher, a registered representative living in Austin, Texas . The SEC Enforcement Division alleges that while working for a registered broker-dealer, Eldaher reached a side agreement with Argyropoulos to solicit investors and receive 50 percent of the mark-up on Facebook shares he sold. Eldaher sold $362,887.50 worth of Facebook shares and was paid $15,478 by Prima Capital . He was later terminated by the broker-dealer for selling securities other than through the firm. The Enforcement Division alleges that Eldaher's sales of unregistered securities violated Section 15(a)(1) of the Exchange Act. The matter will be scheduled for a public hearing before an administrative law judge for proceedings to adjudicate the Enforcement Division's allegations and determine what, if any, remedial actions are appropriate.
The SEC's investigation was conducted by Tony Regenstreif and supervised by Victoria A. Levin of the Los Angeles Regional Office. The Enforcement Division's litigation against Eldaher will be led by Karen Matteson .
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
FONU proxy votes 1:400
http://ih.advfn.com/exchanges/USOTC/FONU/stock-price
No change A/S. 6am today
NOTICE IS HEREBY GIVEN that, on December 22, 2014, the Company obtained the unanimous written consent of its Board of Directors and the written consent of stockholders holding 2,500,000 preferred shares representing 53.99% of the outstanding capital shares to effectuate a 1 for 400 reverse split of all outstanding capital shares.
OUTSTANDING SHARES AND VOTING RIGHTS
As of December ___, 2014 (the “Record Date”), the Company’s authorized capitalization consisted of 2,000,000,000 common shares, of which 1,065,115,769 common shares were issued and outstanding, and 20,000,000 Series B preferred shares, of which 2,500,000 are issued and outstanding.
Each common share of the Company entitles its holder to one vote on each matter submitted to the Company’s stockholders. Each Series B preferred share of the Company entitles its holder to 500 votes on each matter submitted to the Company’s stockholders. However, because the majority stockholder has consented to the foregoing action by resolution dated December __, 2014, in lieu of a special meeting in accordance with Sections 78.315 and 78.320 of the Nevada Revised Statutes, no other stockholder vote will be solicited in connection with this Information Statement.
REVERSE SPLIT
The Board of Directors and majority shareholder has authorized a 1 for 400 reverse split. Any fractional shares will be rounded up to the next whole number. Stockholders have no right under the Nevada Revised Statutes, the Company’s Articles of Incorporation, or the Company’s Bylaws to exercise dissenters’ rights of appraisal with respect to the reverse split.
Doral DRL halted as FBI visits
Doral Financial (DRL) were halted in midday trade Tuesday, while the bank announced that the Federal Bureau of Investigation visited its main office in Puerto Rico . Prior to the halt, the stock was down 9.6%, but had been down as much as 36% earlier in the session. Volume was about 823,000 shares, or more than five times the full-day average. "Doral is cooperating fully with law enforcement authorities, and we look forward to sharing more on the focus of the investigation as we learn more," Doral said in a statement. "Our commercial operations and service to our customers are not affected by these events." Doral has been with the government of Puerto Rico . The stock has lost 77% this year until the trading halt.
- Tomi Kilgore ; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
12-23-14 1202ET
DRL halted, FBI visits
Doral Financial (DRL) were halted in midday trade Tuesday, while the bank announced that the Federal Bureau of Investigation visited its main office in Puerto Rico . Prior to the halt, the stock was down 9.6%, but had been down as much as 36% earlier in the session. Volume was about 823,000 shares, or more than five times the full-day average. "Doral is cooperating fully with law enforcement authorities, and we look forward to sharing more on the focus of the investigation as we learn more," Doral said in a statement. "Our commercial operations and service to our customers are not affected by these events." Doral has been with the government of Puerto Rico . The stock has lost 77% this year until the trading halt.
- Tomi Kilgore ; 415-439-6400; AskNewswires@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
12-23-14 1202ET
JNUG did R/S today 1:10 $22.46
Stock Split in General
Direxion Daily Junior Gold Miners Idx Bull 3X Shs JNUG.EU:NYSE Arca
Direxion Daily Junior Gold Miners Idx Bull 3X Shs has announced a 1-10 split effective 12/23/14.
JNUG 1:10 R/S today junior gold miners
Stock Split in General
Direxion Daily Junior Gold Miners Idx Bull 3X Shs JNUG.EU:NYSE Arca
Direxion Daily Junior Gold Miners Idx Bull 3X Shs has announced a 1-10 split effective 12/23/14.
FREE R/S 1-2/1-10. A/S 250M > 750M
FreeSeas Inc. Announces Results of Annual Meeting of Shareholders
2 minutes ago
GlobeNewswire
Athens, Greece, Dec. 22, 2014 (GLOBE NEWSWIRE) -- December 22, 2014 - FreeSeas Inc. (FREE) ("FreeSeas" or the "Company" ), a transporter of dry-bulk cargoes through the ownership and operation of a fleet of Handysize and Handymax vessels announced today that at the annual meeting of the Company's shareholders held on December 18, 2014, the shareholders: (i) elected Mr. Ion G. Varouxakis and Mr. Dimitrios Panagiotopoulos to serve until the 2017 Annual Meeting of Shareholders; (ii) ratified the appointment of RBSM LLP, as our independent registered public accounting firm for the fiscal year ending December 31, 2014; (iii) granted discretionary authority to the Company's board of directors to (A) amend the Amended and Restated Articles of Incorporation of the Company to effect one or more consolidations of the issued and outstanding shares of common stock, pursuant to which the shares of common stock would be combined and reclassified into one share of common stock at ratios within the range from 1-for-2 up to 1-for-10 (the "Reverse Stock Split") and (B) determine whether to arrange for the disposition of fractional interests by shareholder entitled thereto, to pay in cash the fair value of fractions of a share of common stock as of the time when those entitled to receive such fractions are determined, or to entitle shareholder to receive from the Company's transfer agent, in lieu of any fractional share, the number of shares of common stock rounded up to the next whole number, provided that, (X) that the Company shall not effect Reverse Stock Splits that, in the aggregate, exceeds 1-for-15, and (Y) any Reverse Stock Split is completed no later than the first anniversary of the date of the Annual Meeting; and (iv) approved an amendment to the Amended and Restated Articles of Incorporation of the Company to increase the Company's authorized shares of common stock from 250,000,000 to 750,000,000.
Mr. Ion G. Varouxakis, Chairman, President and CEO, commented: "Having taken note of today's Annual meeting results, we would like to reaffirm the Company's commitment to the public markets as a fully reporting entity. It is the intention of the Company, being eligible under Nasdaq rules to apply for the second 180-day compliance period of the minimum bid price requirement, to not effect a reverse split at this time. The Company is actively exploring financing structures to leverage its existing unencumbered assets in order to enlarge the fleet early next year. The increase of the fleet size will not only improve earnings potential, but is expected to improve investor confidence and restore shareholder value. This shall be our foremost priority for the new year."
About FreeSeas Inc.
FreeSeas Inc. is a Marshall Islands corporation with principal offices in Athens, Greece. FreeSeas is engaged in the transportation of drybulk cargoes through the ownership and operation of drybulk carriers. Currently, it has a fleet of Handysize and Handymax vessels. FreeSeas' common stock trades on the NASDAQ Capital Market under the symbol FREE. Risks and uncertainties are described in reports filed by FreeSeas Inc. with the U.S. Securities and Exchange Commission, which can be obtained free of charge on the SEC's website at http://www.sec.gov. For more information about FreeSeas Inc., please visit the corporate website, www.freeseas.gr .