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DK....I bet you played Nickie Dees in Lady Lake.... the bottle club in Belleview? I frequented some of those and something saloon in Orlando....time has erased that. I suppose if I had kept it up it would erased alot more! Ha! Or perhaps you played for more elitest lounges... Good to know people on this board that have other things in common.... If I have power and your parents want to know whats going on, will be glad to assist. They may have people here to do that already, but sometimes if they are transplants they don't. I live off of 44 about 8 miles, but the 44 that runs behind the mall area.I don't have private post but my email is barbeszoo@aol.com. Later. b.
DK! NO kidding..... uh where did you graduate? I graduated Leesburg in 1971? Small world is it not? I wish your parents well.... I have too many animals to leave, so just buttoning down. At least trying. I live on Emeralda Island now in the swamp.... (of course all of Lake County was originally swamp land was it not? hee hee..... land fill works wonders.) Well got to go.... Im still moving "stuff" just hoping qbid had news today.... may lose power over the weekend and will not have much time to "lurk" on the board so everyone have a wonderful weekend and for gosh sakes hope qbid rises along with the water level....hee hee. b.
Irish, Boatgirl...Im in Lake County and making preparations as well, but know you guys are going to take the intial brunt...Good luck to you; everyone mentally picture Francis taking a reverse..who knows maybe it will help.....
Did anyone pick up the mention of Steven Grunberg on the season premier of "Scrubs" tonight? J.D. throws it out... something like "...Im not Steven Grunberg you know" dang Ive done forgot the line.. I was so shocked to hear the name.....
Big Tips...huge favor...I liked your post so well I wanted to print it out for future reference. However, so far I have been unable to either print or copy and paste elsewhere. Would you consider emailing it to me? Thank you, I am at barbeszoo@aol.com. tia
white...you are not alone...Ive yet to figure how they are bringing them up either.....where is the magic button guys?
Ha! There may be SOME truth to that DK....but it doesn't keep me from lurking all the same...lol
hey dallas....looks like the problem was with me and not ihub...at least I think so.... ha...but Im back in business anyway....have a good day!
sorry to interrupt the dialog.... Ive had trouble posting for the last couple of weeks....looks like the problem was me instead of ihub....
testing testing
Thanks Fish.
Big Tips; at least they did not say they would not carry QTN. Just did not know "If or when".....
lobo...been in since .0001; do not usually post often, but today seems right...lots of the old board post, just in and out. If there are lots of RB people here it is beyond me since I don't go there. DK must know most of them tho.
Soooooooo right CIA!
Big Tips ... I dont't post much..Ive got 10 left now I will share...just email me and I'll put in re:big tips...hee hee
whoo hooooooooo! I knew I felt good this morning for a reason!!!Gooooooooooooo Gooooooooooo Qbid!!!!
Mona Mona...its almost quitting time!!! Go home and have a beer and kick your feet up! You are way ahead of us..ha!
Good Morning all.... and afternoon to Mona... what time is it there Mona? I feel really good about QBID today... hope it turns out to be intuition...good luck to all and have a wonderful day! Gooooooooooo QTN!!!!!
CIA....this is a really good one.....
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Posted by: Capt_Nemo
In reply to: None Date:6/8/2004 10:31:21 PM
Post #of 135003
June 8, 2004. (FinancialWire) The U.S. market scandal involving thousands of shareholders, hundreds of companies, and dozens of brokerages, including FleetBoston (NYSE: FBF), Goldman, Sachs & Co. (NYSE: GS), H. Myerson & Co., Inc. (NASDAQ: MHMY), and Olde / H&R Block (NYSE: HRB), and tagged by FinancialWire as “StockGate,” is fast reeling out of control, as article after article has surfaced about various aspects of the manipulation.
As more and more companies ask to be “delisted” from the Berlin Stock Exchange, NASD has reportedly held talks with officials of the exchange, who reportedly denied that their exchange has been used as a vehicle to circumvent U.S. law requiring brokers to assure themselves of affirmative determinations before allowing short sales.
The controversy has even birthed mini-scams aimed at public companies. For example, Friedland Capital has even offered to provide a “delisting” service to companies either listed or in queue to be listed in Berlin, failing to point out that Berlin has offered to withdraw any company’s listing whose executives merely ask.
At the same time that the questionable “Stock Borrow Program” of the Depository Trust and Clearing Corp. has emerged in lawsuits, and DTCC has announced its interest in the London market, the London markets are being rumored as the next stop after Berlin where short-sellers may take advantage of the arbitrage exemptions associated with naked shorting.
All this comes as the U.S. Securities and Exchange Commission is gearing up for tomorrow’s public hearing to consider amendments to Regulation SHO, the effort to curtail the manipulative trading abuses that has plagued hundreds of small public companies and hundreds of thousands of their shareholders.
Open meetings of the Commission are usually webcast.
The meeting announcement has been published at http://www.sec.gov/news/digest/dig060204.txt .
Naked short selling is worrisome for hundreds of small U.S. companies, including those recently asking to be delisted from the Berlin Stock Exchange, such as Golden Phoenix Minerals, Inc. (OTCBB: GPXM), Nannaco, Inc. (OTCBB: NNCO), 5G Wireless Communications, Inc. (OTCBB:FGWC), CyberAds, Inc. (OTCBB :CYAD), Provectus Pharmaceuticals, Inc. (OTCBB: PVCT), House of Brussels Chocolates (OTCBB: HBSL), InforMedix, Inc. (OTCBB: IFMX), Tissera, Inc. (OTCBB: TSSR), Americana Publishing, Inc. (OTCBB: APBH), Celsion Corporation (AMEX: CLN), ChampionLyte Holdings, Inc. (OTCBB: CPLY), Pickups Plus, Inc. (OTCBB:PUPS), China Wireless Communications Inc. (OTC BB: CWLC), CareDecision Corp. (OTCBB: CDED), Titan General Holdings, Inc. (OTCBB: TTGH), IPVoice Communications, Inc. (OTCBB: IPVO), Whistler Investments (OTCBB: WHIS), WARP Technology Holdings, Inc. (OTC BB: WRPT), BGR Corp. (OTCBB: BGRR), ICOA, Inc., (OTCBB: ICOA), DICUT, INC. (OTCBB: DCUTE), NHC Communications Inc. (TSX: NHC; OTCBB: NHCMF), Stratus Services Group, Inc. (OTCBB: SERV), Golden Phoenix Minerals, Inc. (OTCBB: GPXM).
Berliner Freiverkehr (Aktien) AG has been singled out as the broker and market maker that has been “listing” the companies. It is suspected that one broker, RA Angsar Limprecht, is involved in all if not most of the listings.
Small public companies are squeezed not only by hedge funds, naked short sellers, overseas listers such as the Berlin Stock Exchange, and the out-of-control “Stock Borrow Program” run by the governance-conflict-laden Depository Trust and Clearing Corporation, but to the amazement of the industry, as often and not by their own regulators.
A new staff recommendation by Annette Nazareth, director of the division of market regulation at the U.S. Securities and Exchange Commission to “outlaw” ownership of paper certificates at the same time the Depository Trust and Clearing Corporation is under intense scrutiny for alleged electronic counterfeiting has begun hitting the small public company markets, company executives, shareholders and manipulative short-selling opponents like the proverbial ton of bricks.
A Dow Jones (NYSE: DJ) article by Judith Burns sparked the uproar, as the inextricably intertwined web of connections between the SEC and the DTC, which is sagging from the weight of conflicted governance by representatives from a rollcall of industry heavyweights, including NASD, which owns NASDAQ (OTCBB: NDAQ), the New York Stock Exchange, Goldman Sachs (NYSE: GS) and Lehman Brothers (NYSE: LEH), to name only a few.
The rule proposal would bar stock transfer agents from handling shares that carry any limitations on transfer. Control over stock certificates is one of the ways that small companies have combated illegal naked short sellers. Burns quoted Nazareth as saying that these companies’ “self-help” efforts “aren’t helping U.S. markets overall.” Nazareth was quoted as saying restrictions on stocks are “a significant step backwards” in the “move from paper stock certificates to automated computerized trading.”
Nazareth said that abusive “naked” short selling has been a problem “in some cases,” but that is “best dealt with by a pending SEC proposal,” presumably Regulation SHO.
SEC Commissioner William Donaldson purportedly publicly refused to answer any questions from the NASD about the timing of the Commission’s consideration of the Regulation at a conference where he was simultaneously proposing early reforms of the mutual fund scandals. The Dow Jones said, however, that Robert Colby, SEC deputy market regulation division director, predicted the SEC will take that to a vote in early June.
The Dow Jones report noted that “naked short-selling occurs when sellers don't buy shares to replace those they borrowed, a manipulative practice that can drive a company's stock price sharply lower.
The stock certiticate plan has been put to a 30-day comment periodl Then the SEC would have to vote to adopt it. If adopted, Colby was quoted as saying that regulators might “sue firms that seek to impose restrictions on stock transfers.”
The recent lawsuit filed by Nanopierce Technologies (OTCBB: NPCT) alleges that the Depository Trust and Clearing Corp. has a lot of reasons, almost one billion of them a year, to keep illegal naked short selling in operation. It was the shot across the bow by the legendary Houston law firms of Christian, Smith, Wukoson and Jewell, and OQuinn, Laminack and Pirtle, whose notches already include environmental targets, the breast implant industry and the tobacco industry, all brought to their knees.
In comments to the U.S. Securities and Exchange Commission, C. Austin Burrell, who is providing litigation support and research for the law firms, said that StockGate is more massive than anyone may have imagined. “Illegal Naked Short Selling has stripped hundreds of billions, if not TRILLIONS, of dollars from American investors,” and have resulted in over 7,000 public companies having been “shorted out of existence over the past six years.” Burrell said some experts believe as much as $1 trillion to $3 trillion has been lost to this practice.
He stated that the restrictions on short selling were deliberately put into the Securities Acts of 1933 and 1934 because of the first-hand evidence then available that the “sheer scale of the crashes was a direct result of intentional manipulation of US markets through abusive short selling by a massive conspiracy.”
Burrell noted that the 65-lawyer team presided over by lead lawyers Wes Christian and John O’Quinn has uncovered more than 1,200 hedge fund and offshore accounts working through more than 150 broker-dealers and market makers in a joint cooperative effort to strip small and medium size public companies of their value.
Recently the NASD and U.S. Securities and Exchange Commission approved an interim naked short-selling band-aid, requiring U.S. brokers to make an “affirmative determination” that short-sellers, even foreign short-sellers, mostly Canadian, can find certificates to cover before processing the order.
Last year, many besieged public companies sought refuge from the manipulation by seeking to exit the DTC, but on June 8, 2003, the SEC stated “the issues surrounding naked short selling are not germane to the manner in which DTC operates as a depository registered as a clearing agency. Decisions to engage in such transactions are made by parties other than DTC. DTC does not allow its participants to establish short positions resulting from their failure to deliver securities at settlement. While the Commission appreciates commenters' concerns about manipulative activity, those concerns must be addressed by other means.”
The Nanopierce lawsuit, said to be the first of many out of the box, emphatically suggests otherwise. According to lawyer Christian, et.al., the DTC is at the very heart of the problem, and has almost a billion dollars a year at stake in keeping the problem.
The Depository Trust Company (DTC) is a member of the U.S. Federal Reserve System, a limited-purpose trust company under New York State banking law and a registered clearing agency with the SEC. The depository supposedly brings efficiency to the securities industry by retaining custody of some 2 million securities issues, effectively "dematerializing" most of them so that they exist only as electronic files rather than as countless pieces of paper. The depository also provides the services necessary for the maintenance of the securities it has in “custody.”
According to the suit, the DTCC has an enormous pecuniary and conflicted interest in the entire short selling scandal through the huge income stream they were realizing from it every day. They have made literally billions of dollars lending individual real shares, in most cases over and over, getting a fee each time they made a journal entry in the “Stock Borrow Program.”
The Stock Borrow Program was purportedly set up to facilitate expedited clearance of stock trades. Somewhere along the line, the DTCC became aware that if it could lend a single share an unlimited number of times, it could collect a fee each time, according to Burrell. “There are numerous cases of a single share being lent ten or many more times,” giving rise to the complaint that the DTCC has been electronically counterfeiting just as was done via printed certificates before the Crash.
“Such re-hypothecation has in effect made the potential ‘float’ in a single company's shares virtually unlimited and the term ‘float’ meaningless. Shares could be electronically created/counterfeited/kited without a registration statement being filed, and without the underlying company having any knowledge such shares are being sold or even in existence.” Burrell said the Christian/O’Quinn lawsuits will seek to show that the “counterfeiting/creation of unregistered shares is a specific violation of the Securities Act of 1933, barring the ‘Sale of Unregistered Securities’.”
While the Nanopierce lawsuit has been filed at the state level, another companion lawsuit just heading to the courts on behalf of Exotics.com (OTC: EXII) will be argued at the Federal level.
Nanopierce’s suit in the 2nd Judicial District Court in Nevada, is Case No. CV04-01079, alleges that the DTC’s “stock borrow program” was “purportedly created to address SHORT TERM delivery failures,” but that the “end result of the program has been to create tens of millions of unissued and unregistered shares to be traded in the public market,” and in some instances resulting in “two or more shareholders who purchase shares in separate transactions to own the same shares.”
The complaint alleges that the DTC has a colossal disincentive to stop the “stock borrow” program, booking revenues from services of $425,416,000 and similarly, the NSCC deriving revenues of $293,133,000.
Further, the suit alleges that “open positions” resulting from this activity at the close of business on December 31, 2003, “approximated $3,025,467,000” due to NSCC, and $2,303,717,000 due by NSCC, and unsettled positions of $721,750,000 for securities borrowed through the NSCC’s “Stock Borrow Program.”
Nanopierce claims that DTCC and NSCC have joined in a “scheme” to “manipulate downward the price of the affected securities, thereby reducing the market value of the open fail to deliver positions.” The suit also claims that the defendants have permitted sellers to maintain open fail to deliver positions of tens of millions of shares for periods of a year and even longer.
It quotes the National Association of Security Dealers as admitting that “concerns have been raised by members, issuers, investors and other interested parties about potentially abusive short selling activities occurring in the marketplace. In particular, naked short selling, or selling short without borrowing securities to make delivery, can result in long term failures to deliver, including aggregate failures to deliver that exceed the total float of a security. NASD believes such extended failures to deliver can have a negative effect on the market. Among other things, by not having to deliver securities, naked short sellers can take on larger short positions than would otherwise be permissible, which can facilitate manipulative activity.”
Nanopierce claims that it had “relied on material misrepresentations and omissions by DTC and NSCC in trading its shares in the stock market “without knowledge of Defendants’ fraud-on-the market through statements they made about the clearing and settlement services they provided.” Further, it claims that the Defendants acted with “scienter” since they had a major financial financial motivation to falsely represent their services, which Nanopierce claims are also anticompetitive.
The largely unregulated DTC has become something of a defacto Czar presiding over the entire U.S. markets system, wielding more day-to-day influence and control than the SEC, the NASD and NASDAQ combined. And, as the SEC’s June 8 ruling indicates, its monopoly over the electronic trading system appears even to be protected.
The Depository Trust and Clearing Corp.’s two preferred shareholders are the New York Stock Exchange and the NASD, a regulatory agency that also owns the NASDAQ (OTCBB: NDAQ) and the embattled American Stock Exchange! Regulators, regulate thyself?
In an era when corporate governance is the primary interest for the SEC and state regulators, the DTCC is hardly a role model. Its 21 directors represent a virtual litany of conflict:
They include Bradley Abelow, Managing Director, Goldman Sachs (NYSE: GS); Jonathan E. Beyman, Chief Information Officer, Lehman Brothers (NYSE: LEH); Frank J. Bisignano, Chief Administrative Officer and Senior Executive Vice President, Citigroup / Solomon Smith Barney's Corporate Investment Bank (NYSE: C); Michael C. Bodson, Managing Director, Morgan Stanley (NYSE: MWD); Gary Bullock, Global Head of Logistics, Infrastructure, UBS Investment Bank (NYSE: UBS); Stephen P. Casper, Managing Director and Chief Operating Officer, Fischer Francis Trees & Watts, Inc.; Jill M. Considine,Chairman, President & Chief Executive Officer, The Depository Trust & Clearing Corporation (DTCC);
Also, Paul F. Costello, President, Business Services Group, Wachovia Securities (NYSE: WB); John W. Cummings, Senior Vice President & Head of Global Technology & Services, Merrill Lynch & Co. (NYSE: MER); Donald F. Donahue, Chief Operating Officer, The Depository Trust & Clearing Corporation (DTCC); Norman Eaker, General Partner, Edward Jones; George Hrabovsky, President, Alliance Global Investors Service; Catherine R. Kinney, President and Co-Chief Operating Officer, New York Stock Exchange; Thomas J. McCrossan, Executive Vice President, State Street Corporation (NYSE: STT); Eileen K. Murray, Managing Director, Credit Suisse First Boston (NYSE: CSR); James P. Palermo, Vice Chairman, Mellon Financial Corporation (NYSE: MEL); Thomas J. Perna, Senior Executive Vice President, Financial Companies Services Sector of The Bank of New York (NYSE: BNY); Ronald Purpora, Chief Executive Officer, Garban LLC; Douglas Shulman, President, Regulatory Services and Operations, NASD; and Thompson M. Swayne, Executive Vice President, JPMorgan Chase (NYSE: JPM).
In their comments to the SEC regarding Regulation SHO in January, the 50 state regulators, through their association, the North American Association of Securities Administrators (NASAA) issued what many consider to be a strong warning that if the DTC is not dealt with in the final regulations, state regulators such as New York State Attorney General Eliot Spitzer may step to the plate.
In what many considered to have been explosive comments, Ralph Lambiase, NASAA president and Director of the Connecticut Division of Securities, warned "NASAA urges the Commission to reconsider its stance regarding the role of the Depository Trust and Clearing Corporation (the DTC). As a threshold matter, NASAA believes that the Commission should explicitly prohibit the DTC from lending more shares of a security than it actually holds. The ability of the overall proposed rule would be severely impared unless the Commission undertakes to implement such a prohibition.”
As the Nanopierce lawsuit reveals, those were indeed strong words, meddling as it did, in a substantial revenues base for the DTCC.
Recently, leading market makers and brokers named in various lawsuits and other actions, including FleetBoston (NYSE: FBF), Goldman, Sachs & Co. (NYSE: GS), H. Myerson & Co., Inc. (NASDAQ: MHMY), Olde / H&R Block (NYSE: HRB), Charles Schwab (NYSE: SCH), Toronto-Dominion’s (NYSE: TD), TD Waterhouse Group and vFinance, Inc. (OTCBB: VFIN). A.G. Edwards, Inc. (NYSE: AGE), Ameritrade Holding Corp. (NASDAQ: AMTD), Deutsche Bank AG (NYSE: DB), and ETrade Group, Inc. (NYSE: ET), were forced to comply with new short-selling market regulations imposed by the NASD after the SEC had “sat on” the NASD request to plug material loopholes for almost 2-1/2 years.
“The new rules expand the scope of the affirmative determination requirements to include orders received from broker/dealers that are not members of NASD ("non-member broker/dealers").
The new rule is on the web at http://www.nasdr.com/2610_2004.asp#04-03
The rule itself, while welcomed by small companies and their shareholders in the U.S., nevertheless raised an outcry because the NASD’s request to put it into effect had set on a shelf at the SEC since 2001.
The scandal has embroiled hundreds of companies and dozens of brokers and marketmakers, in a web of internaitional intrigue, manipulative short-selling and cross-border acctions and denials.
Comments on Regulation SHO ended January 5, and may be viewed at http://www.sec.gov/rules/proposed/s72303.shtml .
Some 122 companies, including 13 brokers, such as FleetBoston (NYSE: FBF), Goldman, Sachs & Co. (NYSE: GS), H. Myerson & Co., Inc. (NASDAQ: MHMY), Olde / H&R Block (NYSE: HRB), Charles Schwab (NYSE: SCH), Toronto-Dominion’s (NYSE: TD), TD Waterhouse Group and vFinance, Inc. (OTCBB: VFIN). A.G. Edwards, Inc. (NYSE: AGE), Ameritrade Holding Corp. (NASDAQ: AMTD), Deutsche Bank AG (NYSE: DB), and ETrade Group, Inc. (NYSE: ET), have been embroiled for over a year in a raging controversy
The remaining 109 companies among the 122 named to date have issued press releases or been named in the media as having been victimized, or as taking various actions, either alone or in concert with other companies, to oppose manipulative trading in the form of illegal naked short selling. The actions have ranged from lawsuits to withdrawals and threatened withdrawals from the electronic trading system managed by the Depository Trust & Clearing Corp., to withdrawals from toxic financings, to the issuance of dividends or name changes designed to squeeze manipulators, to joining associations or networks or to contacting regulatory authorities to provide documentation of abuses or otherwise complain.
http://www.investrend.com/articles/article.asp?analystId=0&id=9048&topicId=160&level=160
Rick
"Great spirits have always encountered violent opposition from mediocre minds."
-Albert Einstein
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CIA...this is another good article I received today...I will send as many as you would like...... it is complicated but is something every investor needs to know. Perhaps you are already aware and if so just tell me so.....
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Naked shorting = fraude encapotada
Autor: Camisa_Roxa (123 leituras)
Data: 03-15-04 07:30
Todo o esquema explicado a seguir:
There’s a form of the securities fraud known as naked short selling that is becoming very popular and lucrative to the market makers that practice it. It is known as “Cellar boxing” and it has to do with the fact that the NASD and the SEC had to arbitrarily set a minimum level at which a stock can trade. This level was set at $.0001 or one-one hundredth of a penny. This level is appropriately referred to as “the cellar”. This $.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations.
“Cellar boxing” has been one of the security frauds du jour since 1999 when the market went to a “decimalization” basis. In the pre-decimalization days the minimum market spread for most stocks was set at 1/8th of a dollar and the market makers were guaranteed a healthy “spread”. Since decimalization came into effect, those one-eighth of a dollar spreads now are often only a penny as you can see in Microsoft’s quote throughout the day. Where did the unscrupulous MMs go to make up for all of this lost income? They headed "south" to the OTCBB and Pink Sheets where the protective effects from naked short selling like Rule 10-a, and NASD Rules 3350, 3360, and 3370 are nonexistent.
The unique aspect of needing an arbitrary “cellar” level is that the lowest possible incremental gain above this cellar level represents a 100% spread available to MMs making a market in these securities. When compared to the typical spread in Microsoft of perhaps four-tenths of 1%, this is pretty tempting territory. In fact, when the market is no bid to $.0001 offer there is theoretically an infinite spread.
In order to participate in “cellar boxing”, the MMs first need to pummel the price per share down to these levels. The lower they can force the share price, the larger are the percentage spreads to feed off of. This is easily done via garden variety naked short selling. In fact if the MM is large enough and has enough visibility of buy and sell orders as well as order flow, he can simultaneously be acting as the conduit for the sale of nonexistent shares through Canadian co-conspiring broker/dealers and their associates with his right hand at the same time that his left hand is naked short selling into every buy order that appears through its own proprietary accounts. The key here is to be a dominant enough of a MM to have visibility of these buy orders. This is referred to as "broker/dealer internalization" or naked short selling via "desking" which refers to the market makers trading desk. While the right hand is busy flooding the victim company's market with "counterfeit" shares that can be sold at any instant in time the left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstrable demand for shares and a huge oversupply of shares which induces a downward spiral in share price.
In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser.
An interesting phenomenon occurs at these "cellar" levels. Since NASD Rule 3370 allows MMs to legally naked short sell into markets characterized by a plethora of buy orders at a time when few sell orders are in existence, a MM can theoretically "legally" sit at the $.0001 level and sell nonexistent shares all day long because at no bid and $.0001 ask there is obviously a huge disparity between buy orders and sell orders. What tends to happen is that every time the share price tries to get off of the cellar floor and onto the first step of the stairway at $.0001 there is somebody there to step on the hands of the victim corporation's market.
Once a given micro cap corporation is “boxed in the cellar” it doesn’t have a whole lot of options to climb its way out of the cellar. One obvious option would be for it to reverse split its way out of the cellar but history has shown that these are counter-productive as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level.
Another option would be to organize a sustained buying effort and muscle your way out of the cellar but typically there will, as if by magic, be a naked short sell order there to meet each and every buy order. Sometimes the shareholder base can muster up enough buying pressure to put the market at $.0001 bid and $.0002 offer for a limited amount of time. Later the market makers will typically pound the $.0001 bids with a blitzkrieg of selling to wipe out all of the bids and the market goes back to no bid and $.0001 offer. When the weak-kneed shareholders see this a few times they usually make up their mind to sell their shares the next time that a $.0001 bid appears and to get the heck out of Dodge. This phenomenon is referred to as “shaking the tree” for weak-kneed investors and it is very effective.
At times the market will go to $.0001 bid and $.0003 offer. This sets up a juicy 200% spread for the MMs and tends to dissuade any buyers from reaching up to the "lofty" level of $.0003. If a $.0002 bid should appear from a MM not "playing ball" with the unscrupulous MMs, it will be hit so quickly that Level 2 will never reveal the existence of the bid. The $.0001 bid at $.0003 offer market sets up a "stalemate" wherein market makers can leisurely enjoy the huge spreads while the victim company slowly dilutes itself to death by paying the monthly bills with "real" shares sold at incredibly low levels. Since all of these development-stage corporations have to pay their monthly bills, time becomes on the side of the naked short sellers.
At times it almost seems that the unscrupulous market makers are not actively trying to kill the victim corporation but instead want to milk the situation for as long of a period of time as possible and let the corporation die a slow death by dilution. The reality is that it is extremely easy to strip away 99% of a victim company’s share price or market cap and to keep the victim corporation “boxed“ in the cellar, but it really is difficult to kill a corporation especially after management and the shareholder base have figured out the game that is being played at their expense.
As the weeks and months go by the market makers make a fortune with these huge percentage spreads but the net aggregate naked short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring MMs. The predicament they find themselves in is that they can’t even stop naked short selling into every buy order that appears because if they do the share price will gap and this will put tremendous pressures on net capital reserves for the MMs and margin maintenance requirements for the co-conspiring hedge funds and others operating out of the more than 13,000 naked short selling margin accounts set up in Canada. And of course covering the naked short position is out of the question since they can’t even stop the day-to-day naked short selling in the first place and you can't be covering at the same time you continue to naked short sell.
What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on.
The truth of the matter is that the single biggest asset of these victim companies often becomes the astronomically large aggregate naked short position that has accumulated throughout the initial “bear raid” and also during the “cellar boxing” phase. The goal of the victim company now becomes to avoid the 3 main goals of the naked short sellers, namely: bankruptcy, a reverse split, or the forced signing of a death spiral convertible debenture out of desperation. As long as the victim company can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes name changes, CUSIP # changes, cancel/reissue procedures, dividend distributions, amending of by-laws and Articles of Corporation, etc. Nevada domiciled companies usually cancel all of their shares in the system, both real and fake, and force shareholders and their b/ds to PROVE the ownership of the old “real” shares before they get a new “real” share. Many also file their civil suits at this time also. This indirect forcing of hundreds of U.S. micro cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes the U.S. financial systems have ever sustained. In a perfect world it would be the regulators that periodically audit the “C” and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs, clearing firms, and Canadian b/ds, and force the buy-in of counterfeit shares, many of which are hiding behind altered CUSIP #s, that are detected above the Rule 11830 guidelines for allowable “failed deliveries” of one half of 1% of the shares issued. U.S. micro cap corporations should not have to periodically “purge” their share structure of counterfeit electronic book entries but if the regulators will not do it then management has a fiduciary duty to do it.
A lot of management teams become overwhelmed with grief and guilt in regards to the huge increase in the number of shares issued and outstanding that have accumulated during their “watch”. The truth however is that as long as management made the proper corporate governance moves throughout this ordeal then a huge number of resultant shares issued and outstanding is unavoidable and often indicative of an astronomically high naked short position and is nothing to be ashamed of. These massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully the regulators will come to grips with the reality of naked short selling and tactics like "Cellar boxing" and quickly address this fraud that has decimated thousands of U.S. micro cap corporations and the tens of millions of U.S. investors therein.
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CIA...this is what you said and what I replied to...
"Both Fed Reserve and SEC are government agencies! The Fed Reserve doesn't "own" anything. The SEC can't "profit" from anything, because the government is a "non-profit" agency."
so don't say that I was avoiding the questions.... your premise that these are government agencies and are not willing to profit is either naive or...whatever... street gangs do not actually "own" the territories they defend, but try telling that to one of them while he is knifing a rival gang member. Paying taxes and holding title has little to do with it. If you are REALLY interested in how the SEC profits, there a number of good articles out there that will explain to you how the naked shorting of stock is controlled by the government or at the very least has their blessing... send me your email address and I will be glad to send them to you... further more Dateline has done an expose that is to be released sometime in the near future, probably in time for the election, that indicates how the government has screwed the investor all the way to the bank. Coming to a station near you.....
Hey Ray....I liked that "wrinkle in the universe" reply you posted the other day.... well said.
The government is a non-profit agency? Maybe it is supposed to be, but in the real world there are multi-millionaires vying for a job that pays a fraction of what they already have... and spending a huge portion of it just to get there...(the whitehouse) Now, tell me that its from an urgent need to serve the poor and downtrodden and I have some swamp land in Florida that I would be willing to sell you....wait...I think I can make more money on the swamp land by mitigation...you know where someone who wants to swap protected wetlands for your wet lands so they can develop their own? (rights only) Just one of those loop holes that the not for profits have passed so that all the others CAN profit...in other words, if you think someone in the government is not profiting...well you get the gist...you were kidding right?
They cannot advertise until carriage is completed....that has been stated before. RCN has said that they will start alerting the media in two weeks, and will have their own advertising...... Rags will only carry advertising once they can tell them WHERE to subscribe to.....RCN was just announced a short time ago.......
Thanks for the dd onyx...that was a good article.
Morning K.... I'm on my 3rd cup. Hope all is well with you and I'm hoping a really good week for all. Just checking for news, so have a good day.
To all of you, I do not post unless I feel that false info or negativity in the extreme is being posted on this board by other members, or unless I have something worthwhile in the way of due dilligence to add. However, I do read a good deal of the post and a lot of you have worthwhile opinions and info and I have learned a lot from reading this board. Thank you, and I'm out of here.
No, just repeated his info verbatim..... and I explained to her that my email was two-edged....if he was an employee he was leaking info that has a negative affect on other members of this board, and if he isn't an employee he is achieving the same, a goal that is not in QTN's best interest ...that is, spreading false information that leads us to believe that they lost a carrier...either way, do you see anything right about it?
A2gems...I dont think anyone directly said they couldn't...I think they were posting it as a question of irony rather than stating a fact. Sort of like you did only without the idiot part and a question mark at the end. Like this..."So they can't carry HBO and Showtime?"..... JMO
The email from Susan was a direct reply in regards to my questioning the info from oceans11; I simply told her the info that he had posted. Her reply that it was not true therefore it is in regards to Ocean11.
Tis interesting....but I vote for McDad...it is a circus. You have to wonder if he actually works there why he would take the risk, especially to tell everyone that they LOST a carrier...and if he doesn't work there, why is he privy to such crucial info? JMHO and may we all think for ourselves....
repost from McDad re Ocean11 and Dmusephoto......
Posted by: MACDad
In reply to: ocean11 who wrote msg# 17772 Date:7/24/2004 4:27:01 PM
Post #of 18444
DMUSEPHOTO vs. Ocean11 - Sometimes it's hard to stand by and watch this circus.....
By: DMUSEPHOTO
24 Jul 2004, 01:38 PM EDT
Msg. 460685 of 460779
Jump to msg. #
TO Board: Ocean11 on Investor Hub
It has come to my attention that Ocean11 is using some of my post on investor hub, but it is my personal opinion that he's a big fake. I may be wrong.
POST 17631
need to be carefull not to mention what company I work for in this building but....
Did everyone know that the qbid office in Palm Springs is about to change....Same location bigger offices with wooden floors. The paint is all over the place.
By: DMUSEPHOTO
20 Jul 2004, 12:07 PM EDT
Msg. 448502 of 460684
Jump to msg. #
Also:
Did everyone know that the qbid office in CA is about to change....Same location bigger offices with wooden floors. The paint is all over the place.
- - - - -
http://ragingbull.lycos.com/mboard/boards.cgi?board=QBID&read=460685
2nd email....
Subj: Re: Do you have a leak in your organization?
Date: 7/30/04 1:40:06 PM Eastern Daylight Time
From: susanm@qtelevision.com
To: BarbesZoo@aol.com
Sent from the Internet (Details)
We really appreciate your email, but PLEASE tell people it is TOTALLY UNTRUE!!!! Time will shut people up, but in the meantime, stop believing these lies.
1st email...
Subj: Re: Do you have a leak in your organization?
Date: 7/30/04 1:37:51 PM Eastern Daylight Time
From: susanm@qtelevision.com
To: BarbesZoo@aol.com
Sent from the Internet (Details)
What we have is someone PRETENDING work here and PRETENDING to know things they don't really know. Lots of bashers post messages stating that they know things they don't know or have "inside information" and its bull.
yes I will..... post Susans reply
Skunks and everyone....ocean11 is a fake. I received a response from Susan at QTN when I emailed her in regards to a possible "leak"; I explained to her what had been said as to carrier walking out and meetings next week. Needless to say I received a very quick response. She has denied the source and his message very vehemently. She said to please encourage you all not to believe the lies being spread by bashers and time would tell all. They are sick of us all I am afraid. (She didn't say that, I did)But anyway just a heads up.
GM all....if Ocean 11 is for real, he is violating his employer's wishes to give no info other than a press release...if he is a basher then it would stop if he were exposed....perhaps a call to Frank or whoever? Just a thot. I find it interesting that ever so often he aludes to working at QTV but never actually says it.....
Morning K; just checking to see if any more news. You are up bright and early and I'm on my way to get a cup of that coffee now. Have a great day and who knows, maybe we will see green today. I'm a lot more confident than I was a week ago.
Deann is right it is a new message since update this a.m.; says this is just the beginning and to refrain from calling or emailing....they are working hard and need to concentrate on more important things....
Qbid Dollar...its been posted before but I still thing the Sep[t date is indicative....