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Put yourself in his position. Why would you even start talking about business when your stock can't reflect any positive ventures because it's been beat up? How can he come out with positive business news until the stock situation is cleaned up? It can never truly reflect any benefits of said positive business news.
I'd much rather get this out of the way and then start talking business. It's not a bad thing when you think about it because the share price will truly reflect the value of any business. Right now with 2.1 billion shares out that shouldn't be there, it can't.
I've been here just as long as you have. I'm not in a position to demand anything and you know why? Because now I'm witnessing what Newton has been saying all along starting to play itself out.
Newton isn't hiding anything nor afraid. If he was, wouldn't he and RCCH be distancing themselves from the SEC? Quite the opposite as witnessed from the last website update though. Newton is embracing this and that alone tells me he has nothing to hide.
Look at the other stocks mentioned. Do they have bids as well? How can anyone focus just on RCCH alone when there are other companies included in the investigation? Too many factors are involved here so let's just wait and see the outcome of this before demanding a bid.
Yup. We'll just have to wait and see what happens with the SEC first.
What everyone here should realize is that RCCH isn't the only company listed in the lawsuit. Maybe we should focus on what they all have in common and what they don't. Then we can sit back and talk about RCCH and what Newton has or hasn't done.
The share structures of some of the others are out in the open BTW.
Lawsuit by the SEC and then who knows.
I know 2.1 billion shares were sold of another stock mentioned in the article. Enough to take the price down from 0.02 to 0.0001.
No rumors now. This company along with others mentioned in the article has been cellar boxed and naked shorted. This is what that volume last year was about and why we are seeing volume now.
According to the complaint, Gendarme Capital illegally distributed shares in 12 pink sheets companies starting in early 2008 and ending in May, 2010. Typically, Gendarme acquired shares from small public companies at a discount of 30 to 50 per cent, falsely representing to the issuer that it was buying the shares for investment purposes. Then, within days or weeks, Gendarme resold the stock on the market, the SEC says.
During the scheme, Gendarme claimed on its website that it was an accredited investor that bought shares under Rule 504, an exemption that applies to accredited investors who do not plan to resell the stock. According to the SEC, Gendarme actually bought the stock with a view to immediately selling it. In doing so, it acted as an underwriter and was required to register the transactions.
The other stocks listed in the complaint are Macada Inc., Perihelion Global Inc., Bederra Corp., Z Com Networks Inc., RCC Holdings Inc., 141 Capital Inc., RBID.com Inc., Russell Industries Inc. and TidwalWave Holdings Inc. (The complaint does not accuse the companies of any wrongdoing.)
http://www.stockwatch.com/News/Item.aspx?bid=Z-C:*SEC-1798053&symbol=*SEC&news_region=C
SEC charges pair for selling billions of shares
2011-01-06 19:41 ET - Street Wire
Also Street Wire (U-*SEC) U.S. Securities and Exchange Commission
Also Street Wire (U-BWNR) Brownstone Resources Inc
Also Street Wire (U-MGLG) Magellan Inc
by Mike Caswell
The U.S. Securities and Exchange Commission has filed civil charges against two U.S. residents for illegally distributing billions of shares in at least 12 pink sheets companies. The SEC claims that the men, Ezat Rahimi of California and Ian Lamphere of Vermont, repeatedly bought discounted shares in unregistered transactions and immediately dumped the stock, making $1.6-million in profits. (All figures are in U.S. dollars.) The stocks include Toronto-based Magellan Inc. and Toronto-based Brownstone Resources Inc.
The charges are contained a civil complaint the SEC filed on Jan. 6, 2011, in the Eastern District of California. In addition to Mr. Rahimi and Mr. Lamphere, the defendants are Cassandra Armento, a New York lawyer who wrote opinion letters used in the scheme, and Gendarme Capital Corp., a private company that Mr. Rahimi and Mr. Lamphere control.
According to the complaint, Gendarme Capital illegally distributed shares in 12 pink sheets companies starting in early 2008 and ending in May, 2010. Typically, Gendarme acquired shares from small public companies at a discount of 30 to 50 per cent, falsely representing to the issuer that it was buying the shares for investment purposes. Then, within days or weeks, Gendarme resold the stock on the market, the SEC says.
During the scheme, Gendarme claimed on its website that it was an accredited investor that bought shares under Rule 504, an exemption that applies to accredited investors who do not plan to resell the stock. According to the SEC, Gendarme actually bought the stock with a view to immediately selling it. In doing so, it acted as an underwriter and was required to register the transactions.
One example described by the SEC is that of WGL Entertainment Holdings Inc., a Florida-based company that produced a TV show called the WGL Million Dollar Shootout. Between March and September, 2008, Gendarme entered into warrant agreements that allowed it to buy shares of WGL at a 30-per-cent discount to the market price. The SEC says that Gendarme used those agreements to acquire over six billion shares for $615,000. According to the complaint, it then sold the stock within days or weeks, grossing $780,000. (The stock, which traded around two cents in March, 2008, was at 0.01 cent by October, 2008.)
In negotiating to buy the shares, Mr. Rahimi indicated to the company that he would help establish a market, the SEC claims. He told the CFO that Gendarme would "try to find a life in your stock" and "if your stock starts trading with our help, you will have a liquid stock on your hands."
One of the key helpers in the scheme, as described by the SEC, was Ms. Armento. According to the complaint, she drafted more than 50 opinion letters stating that Gendarme could receive shares in the companies without any trading restrictions. She made no inquiry as to whether Gendarme planned to sell the shares to the public, the SEC claims. "Armento knew that, as a result of her opinion letters, Gendarme was obtaining shares without a restrictive legend, and thus would have the ability to quickly sell the shares to the public, even if doing so violated ... the Securities Act," the complaint states.
The SEC is seeking appropriate civil penalties and disgorgement of ill-gotten gains against all defendants, as well as penny stock bans against all defendants except Ms. Armento.
The other stocks listed in the complaint are Macada Inc., Perihelion Global Inc., Bederra Corp., Z Com Networks Inc., RCC Holdings Inc., 141 Capital Inc., RBID.com Inc., Russell Industries Inc. and TidwalWave Holdings Inc. (The complaint does not accuse the companies of any wrongdoing.)
Magellan and Brownstone both list Canadian addresses, and one of the other stocks has a lesser Canadian connection. In 2009, RCC Holdings claimed that it had appointed William Hess, the former president of the Canadian Venture Exchange, as a director. (The company initially said he was president of the Toronto Stock Exchange, which it later corrected.) As it turned out, Mr. Hess did not ever become a director of the company, as his appointment was contingent on the company completing an acquisition that it never finalized.
It's nice to know that two companies listed in the SEC document I happen to own. It makes even more sense now why the other company had a 95 million share trade day out of the blue last year after spending most of it dormant and without any volume.
I think Gene is waiting on the outcome of the SEC before anything else. And you know what? I'm absolutely fine with waiting it out just a little bit longer.
Not holding my breath for news this week although I certainly won't complain if we do hear something.
What are the rumors?
Yeah. Look at the quote chart and tell me what you see. I see the trades that took place at 9:32 going for 0.0001 and then a couple of smaller trades taking place a little later on for under that.
I haven't bought anymore as of late but may here before the end of the week.
Maybe someone sold at market? Who knows.
Yet the majority of it went at 0.0001 from what I can tell. Only a fraction of today's volume was lower.
Quote and chart on Zecco.
That 7 million was at 0.0001. The rest was below that price with some trading at 0.00002.
Agree with that. But my thinking is some sort of spark will occur to ignite that type of volume and hopefully from more than just one buyer.
Some of my other plays are still being shorted though. One had a 51% short day on the 30th for example.
If there are billions shorted, I doubt the squeeze would be short lived or uneventful.
Do you mean silence since the PR about the lawsuit or silence before the actual lawsuit?
In regards to the lawsuit. The SEC is about to find out who would short a stock thanks to the financial reform bill which will now require hedge funds to file both their long and short positions with the SEC and also make them subject to surprise audits by the SEC.
I believe that's what we are waiting on.
Yeah because they can live off of the mega volume here at 0.00005. I'll toss in another $25.00 here in the next few days so Gene can dine out at McDonalds.
Look at the authorized shares though. It's scary.
The authorized count is still the same. And the date is still 4 days off. Maybe news on Monday?
I picked up another 600,000 shares at 0.00005 today. Oddly enough though, the volume isn't showing up.
Edit to add: It's starting to show up here but not on the quote in my brokerage account.
Not since October 15th anyway. Doesn't matter though because all the shares will have to be accounted for one day and every share holder will benefit.
Nice volume right out of the gate.
Agree. Wyatt needs to explain his excitement.
December 2008 was when I first bought in. Yeah the wait has been tough and hopefully it's almost over.
Only if some of my plays start moving.
The way real estate is in Vegas, I might just buy a house out there.
You and I both.
At that price though it was a nice buy. And it's a quite a bit more shares than I hold.
Could it be half off? I picked up 250K today for 1 so the 5's might be gone. Happy now?
That was a nice buy then.
160,000 just went off. Dilution?
That 2 million share block yesterday went at 1 so not all shares are available for 5. Keep that in mind as well.
Right on. This is a risky play. People should be aware of that. End of story.
I'm picking up shares at 0.00005. My average is 0.0001 BTW. I certainly don't have the money invested here that others do but I have the potential to make some serious bank on a minimal amount of money that I do. But only if what has been described here comes to fruition and that's something I'm willing to take.
I know this is a gamble nor am I defending this guy. Not at all. But seeing that his chances of gaming more people to buy at what many here did, it simply won't work. There are too many burned bridges and the negativity surrounding Newton and RCCH is quite abundant. Either he comes through or he doesn't.
I picked up 706,000 shares today for $54.00. If the share price were ever to hit 0.01 then that's $7000.00. Not a bad take but a very risky one. I know that. Anyone that buys this stock needs to be made aware of that as well and I'm certainly for it. I'm also for stickies being posted up above warning potential investors of the risks here.
No one should ever accuse me of being a pumper of this stock as was written earlier today.
Are we clear?