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It's not a penny stock, though I fail to see the reason you would specify penny stock. Naked shorting is naked shorting. The SEC has always turned a blind eye to many trading violations when it involves penny stocks, therefore, it would be harder to document SEC investigations. Apparently the new leadership has changed that, at least here anyway.
Here's one:
http://www.finalternatives.com/node/2625
Coffee02, I couldn't agree more.
It's a little coincidental that the very day they were informed of the Investigation turning Formal (Sept 18th), they applied to raise the A/S to 3 Billion. Sounds either like on the advice of the SEC, or, because the investigation is not about them per se, they had no fears of the SEC seeing it as questionable.
All very good points in my opinion. I am confident that this investigation had been going on for some time and the SEC had already done a lot of searching and probing before making it Official. Whether or not SPNG played a part in the earlier examination of the situation is anyone's guess. I would guess that they did. I also believe that raising the A/S to 3 Billion has something to do with the possibility of having enough shares available for the shorts to cover directly with the Company rather than subjecting the market to a massive squeeze that would embarass the SEC. Quite honestly, that would not be a bad idea if the Company could settle for around $2 per share. That would make all our air shares legit and give the Company about $5 Billion cash (assuming 2.5 Bil naked). With no debt and $5 billion in cash, our now legit shares would be worth at least $2 per share on a cash basis alone.
At this point, and with as little as we really know, it is impossible to completely whitewash the Co or any of its officers, but we do know that there has been a lot of effort to slam this Company and that is very suspect. If they didn't shut trading down last week, then I would not think they have plans to do so in the future unless something really unexpected comes out. Another thing is that one of the SEC's concerns would be to prevent any abnormal losses to shareholders, so maybe they believe there won't be any further manipulation thus constraining trading to that based on fundamentals and normal market fluctuations. We can only hope.
Thanks Soapy.
Very desperate indeed. I hope this investigation is for our good and it is quick.
I agree KJ. Good luck.
That, is absolutely NOT TRUE. I was involved in a Government investigation and we received subpoena's along with our first notification of an investigation. A subpoena is issued when they know what documents they want you to provide.
Right on Brother. lol
Very true.
River, you and I are on the same wavelength. Keep the faith pal and we will be the ones to cross the finish line, with a big fat checkbook.
Janice, what planet do you live on and what TV shows do you watch? In an investigation, even the investigator does not yet know who is guilty. You are saying that SPNG is guilty and everyone else would not be because they only got subpoenas. First, you have no idea who got subpoenas and who got an order of investigation, except SPNG who chose to announce it in an 8K. Do you think the shorts, if there are any, will come out Monday and announce in an 8K or PR that they received subpoenas or and Order of Investigation, I think not.
I do not think that the Company is the culprit here, and I think the SEC knows that as well. They will investigate everyone, including the Company, but my belief is that the Company will prevail. I am not saying that everyone in the Company is squeaky clean, but the regulators know that there are some unclean operators and to them, a certain percentage of corruption is tolerable. That is my opinion based on my own experience with the Government and its investigations. I think the real culprit is the shorts and those that protect the shorts.
As a matter of fact, I stated in an earlier post that I have been involved in a government investigation and they don't leave without somebody paying some cash. They are not always right in their determinations but how many people are going to fight the Government. You may win the battle but because of legal fees, you lose the war.
OK, so you know exactly who all received notices of an investigation? I don't.
You got it spongeboy, key words.
General, if it opens low, you will be in so fast it is not funny. lol Good luck.
Again Janice, you say things that are the way you interpret them not necessarily the way the are:
On September 18, 2009, the Company received a formal order of investigation issued by the SEC regarding possible securities laws violations by the Company and/or other persons. At this time, it is not possible to predict the outcome of the investigation nor is it possible to assess its impact on the Company. The Company and its officers and directors have received subpoenas requesting the delivery of certain documents. The Company has been cooperating fully, and intends to continue to cooperate fully, with the SEC with respect to its investigation.
It says they received notice of an Investigation of possible securities laws violations by the Company and/or others.
Nowhere does it say that the investigation is specifically about THEM. AND/OR OTHERS says it could be regarding the activity of others. Why do you feel it is necessary for you to imply to the board that it is a forgone conclusion that the Company and or its officers are guilty?
More, I couldn't agree with you more. "Somebuddy gonna get hurt real bad" is right, and I pray it is not us longs.
Buggs, I agree with you, and though we may end up being wrong, we are still entitled to our opinions as things now stand. Good luck to you and yours.
Well, that is a very good question and I would also like to know that. Do you have any sources or connections that can give you that information? I have a strong feeling that they may be investigating the shorts and their effect on this stock. I have no way of knowing that, but based on what we now know, which is not much, it is just as viable as them investigating the Company and its officers. I just want to get to the bottom of the reason our stock price is manipulated and deflated below its true market value.
The 8K stated very clearly that The Company and its officers and directors had been issued subpoenas for documents. The number has no effect when it comes to guilt or no guilt, if that is what you are inferring. I can tell you that it probably means many many documents.
A subpoena is nothing more than a legal request (or demand) for information that will help the Commission determine the truth. To get a subpoena does not make one guilty. I have been there done that.
That is not true Janice. A wells notice is:
When the staff has concluded its investigation, it may recommend to the Commission that enforcement proceedings be commenced, or it may determine to take no further action. If the staff has determined to recommend that the Commission commence an enforcement proceeding, it typically gives prospective defendants a Wells notice informing them of the staff's intent. The recipient of a Wells notice has a period of time, generally one month, to provide the staff with a Wells submission, which is essentially a brief arguing why an enforcement proceeding is not merited. Upon reviewing the Wells submission, the staff may elect to modify or reverse its recommendation to the Commission.
This investigation has not been completed and therefore no Wells notice has yet been given. Stop implying that what you apparently have no knowledge of.
Janice, how could you possibly know what the SEC sent to the Company on the 18th?
There are many people on this board that are much more intelligent about these matters than I am, so I am asking for me and for the benefit of most posters on here, what is the consensus regarding todays 8K. Is this a bad thing for shareholders, or a good thing, or depending on the results a bad or good thing. I see it as good as long as they don't shut us down. At least we will get to the bottom of what our real problem is, either naked shorts, or abuse of management. Your thoughts please.
No_BS, my first instinct is to disagree that an Investigation by a Federal Entity does not warrant a material event, but I will take your word for it as you know more than I do. I do believe that this could be a good thing for us as regardless of who is guilty of what, it should clean out all the corruption. The volume in regular hours and the AH volume seems to me to lend an air of fear. Someone wants shares very bad and I don't think it is for the purposes of making money. Covering ones tracks is sometimes difficult.
700 million?
Do you guys realize that today is the first time in many months that Management has made a written reference to a short position in the Company. That is a very good confirmation to me.
This wasn't GFGU's decision, it was SM's. Just paying back the 1.75 million will hurt them plenty.
BWOG, check e-mail
Carpe, I have no problem with a RS, as long as they do what they must to get rid of the shorts first, and, in doing that, give us our squeeze. Then they can RS it to death as far as I'm concerned.
My bet, as was previously stated by finta:
Last time they announced RS they did not include the A/S in the RS and a lot of people complained. The next time they announce a 1:100 RS, 3 Billion will become 300 million. Then everyone will be happy. No big deal.
I do have to agree with the last line of your post. We get to .22 after a year of sub .03, we cry the blues and go nuts because it dropped so low, and now we act like .12 is the holy grail. It should never have dropped in the first place. I kind of tired of crawling back each week to the place we ended the previous week.
Well, you could be right, but then again, we could be right. We won't know til it happens.
It could, but my bet is that they have a bunch of auditors working overtime to get this done by Monday morning. If so, then they can go with their plan to get rid of the shorts and have a two day squeeze (that ought to be fun), and then do the RS to go to Nasdaq. If not, we will hope he doesn't do the RS and we wait to see what the next plan will be.
Hi Kimi, yeah we have been there. Big difference is that this is a real Company with real revenues and profits. Just a stinky stock situation.
I've hated the last 52 weekends. We always end our week by saying "Maybe next week", and we begin by saying "OK it should be a wild week". This can be a very depressing stock, fun, but depressing. I'm ready for the squeeze.
Thanks, I knew I saw that somewhere, and although it may take a day or two for the E to come off onscreen, they are clean as soon as the filing takes place.
Exactly and they are probably working all this weekend too.