Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Simple numbers go into calculating what is the CATV share float. The number stated at IHUB still says negative 1.469 billion shares. It still says 5,110 shares held short in CATV.
The 5110 shares held short in CATV matches precisely the number stated at the OTC website. They never correct the number for the float. The number differs by several billion shares from the float number at OTC website.
AD4NO certainly seems to have a conviction that there are billions of naked short shares held in CATV. Reg SHO gives a loophole to sell naked short.
MallenNV discusses the same counterfeit share being sold a hundred times over. Once the CE came on to CATV in July of 2021 without any prior warning the naked shorts would have had no way to find a real share to replace the counterfeit shares held.
The naked short shares held count could even exceed the total outstanding shares number for a ticker.
IG disputes this account of reality and says that this is all fantasy urban myth. Nothing this outrageous could ever happen. The $2.50 rule makes shorting not feasible. A form 211 needs to get filled out so that there is no way to issue billions of counterfeit shares. Also there would be billions of failure to delivers.
Which is it?
Thanks.
That is interesting. What are some of the most memorable pump and dumps in your penny stock experience? How did you know when was the right time to sell a PnD near the peak and just before the spectacularly precipitous tumble in pps? Thanks.
Don’t forget about BudLife.
Thanks IG. The two posters I quoted here are both highly knowledgeable it seems if you read a lot of their posts. It is hard for me to believe that they do not know the reality of what they are saying. MallenNV is writing a book about market manipulation in penny stocks. What is important to understand for profitable trading appears to be somewhat hidden.
Eventually AXIM could have good sales once the CLIA waiver for DED testing goes through if it indeed it does go through. That might be awhile.
Could massive dilution to raise cash destroy shareholders more than they have already been destroyed in the meantime?
Thanks.
We haven’t discussed the “Purple Tape Trade”. Bjones2 on the PVSP board says the following:
“ This is nothing more than MM conversions. Seen this a million time in past 6 months. Few of the debt holder converted last year and some of the shares are still be sold.
That morning dump to the BID is the short sale, and at end of day you will see the "Purple Tape Trade" which will happen below BID and is the Covering using those conversion shares they have in hand.
Just have to let it play out. Much of the previous days volume are these, usually 25M shorted daily, with some covered during the day, and the balance covered with the end of day Purple Trade.”
It seems that naked short selling or unregistered short selling is indeed common and massive in penny stocks, even those at 0.ooo7 stock price. The $2.50 rule applies to only retail investors. Those in the know have no restrictions regarding putting up margin. Can IG or anyone elaborate on what is the “Purple Tape Trade”?
Thanks to MallenNV and IG. MallenNV you talk about CNS shares. Are these naked short unregistered shares? What does the C stand for? You say that congressional laws allow for this, but it seems that IG is unaware of this. Could you post the relevant parts of these laws for people to see? Is there any efforts to fix these flaws in the law?
Most investors do not understand these hidden fundamental truths to how the market works. NASDAQ level Biotech stocks also experience massive effects from shorting combined with negative commentaries. Is naked shorting occurring there at the NASDAQ as well?
This all damages the ability of young innovative companies from raising money to do the work to improve life and society. This is assuming the company is not a scam in the first place.
Thanks to IG for his detailed responses to the questions surrounding shorting of penny stocks. Indeed there seems to be much confusion regarding this topic.
MallenNV on the SGMD board has replied to a post by IG about this topic. MallenNV is an experienced trader who likes to short penny stocks. Below is his post where he contrasts what the law says is allowed and what actually happens according to him.
“You are not taking into account that rules do NOT apply to securities. If rules did apply there would only be maybe 1000 listed OTC tickers not 12,000+ mostly over sold shorted scams that recycle the tickers into new tickers over and over. that is why when schemes fold the OTC listed tickers never is reduced.
Just because the law says it is illegal to commit a crime, crimes are still committed and with the SEC and OTC, small fines are usually the price that is paid to keep the flow going and $billions each week lost to shorted, debt diluted schemes.
When someone pays a fee as punishment to the SEC for committing crimes against securities laws, the SEC will not pass the illegal activity to the DOJ for prosecution. CMYK diamonds (remember them) raised over $80,000,000 and told to pay $20,000,000 in fines or go to jail. So the 4 principals paid $5,000,000 each and were allowed to each keep the remaining $15,000,000, and they opened up a new scheme weeks later with NO criminal charges since they paid the fines to the SEC the SEC did not pass the charged to the DOJ for prosecution. Unless the crime is to big and in the mainstream media like Cosmo or Madoff where the SEC has no choice but to prosecute.
What you never see is the 1000's each month doing the same on a smaller scale who just pay the fines and continue to scheme below the SEC radar that never makes it to the news. Combined each month the money lost to schemes far exceeds what one (Madoff did) Bernie Madoffs actions is small potatoes compared to the $200+ billion lost each year to OTC schemes.
Grayscale Bitcoin not only makes no money and even says that in the data but they use a bitcoin trust they borrow assets from to back up their claim. But as I'm sure you probably don’t know, Grayscale owns the trust and all the assets used to back up the stock are not even real. If you go to their website and scroll all the way down to where the small print is almost as white and the screen and read it. You will see that your logic about laws is not even close to the way this market works.
Your textbook logic is no match for reality. You can read how to fly a 747 jumbo jet all you want but put in the cockpit of the real thing and your doomed to die. Laws do NOT apply to OTC stocks or how to short them. You can thank congress for that.
The logic you have is textbook words but those words and laws do not apply to the OTC stocks. It did not apply to Enron, WorldCom, TYCO and others and also 1000's each month on the OTC. Rules and laws are for suckers.
If someone was across the street throwing 10,000 $100 bills on the sidewalk and people were running to grab them and jaywalking was posted as ILLEGAL, do you believe people would say NO wait, walk down the block and wait for the light to turn green then run up the other side of the street? By then the money will be gone and so the laws you read about do not apply to OTC or even NASDAQ stocks.
As long as there is billions to be made on scheme stocks, laws and rules do not apply. CNS shares, No REG SHO, and a host of others ways to bypass regulations that is not posted in textbooks but is posted in congressional laws. If congress makes a law that let’s them bypass regulations that also allows the common folk.
Laws and rules are for suckers. PLAY THE GAME!”
Everyone seems to agree that the VitaStem Ultra is a great product. With professional marketing and distribution why couldn’t or wouldn’t the VDRM company be a success?
Let’s see what investors think. Is there a massive naked short position held in CATV totaling over a billion shares or is the actual true short position around 5110 shares held short?
Gaardo and AD4NO certainly believe the first premise. IG states that he is confident in the second. IG may know better but does not choose to reveal such knowledge perhaps. What do other people think?
Reg T allows market makers to do naked shorting but only for 5 days. Beyond that time frame it is illegal to hold a naked short position. MM and HF work together to skirt he law it seems to me.
A post today from sab63090 on the Anavex board is revealing.
-“I can only add that I believe that the market makers work to help out their "buddies", also known as hedge funds....and are EXEMPT from naked short selling which they accomplish for them...Is this illegal for this to happen? Yes, but they use this exemption which has the purposed of market stabilization in collusion with hedge funds....the SEC is unable to monitor this because of the frequency of trading during the day...
I have seen this with my own eyes....also block trading and traders know this & sometimes share information with other trading desks. There are rotten apples, sadly”-
What gets me is that these are fundamental things that should be known concretely.
Are there 3 billion shares held short in CATV or rather 5,110? Is the $2.50 rule a requirement or is it 1.5 X margin or is it no margin at all?
Is it common that Penny Stocks are massively shorted or is it not efficient to do so due to rules or not safe enough or not practical to short Penny Stocks so in reality shorting does not occur much?
Naked shorting might have occurred in the distant past but could never happen today in this current modern financial regulatory environment. (?)
Shorting is only a urban myth that ignorant stinky pinky longs persist in asserting on message boards and social media. This is because they are clueless. (?)
In Reg T they allow Market Makers to create counterfeit shares in order to maintain an efficient and liquid market in shares. They have 5 days (T+5) to cover these shares that do not really exist. The Share count can for a period of time exceed the outstanding shares.
Maybe all of this is in fact legal and helpful to making a liquid market for the 5 days time. If however the shares are never registered such a position could persist for more than 5 days perhaps and nobody would be the wiser.
The stupid longs however that bought these shares would need to receive the shares that they bought into their brokerage account. They must be registered shares at this point it seems to me. If no share certificates arrived then there would be a failure to deliver.(FTD)
My question is how could a multi billion share “naked short” position be maintained over long periods of time until the share price goes to near zero over the time that dilution and legal corruption is making this result inevitable and the perfect trade?
Even more interesting MallenNV states this next information.
“Plus you can short stocks and not register them as shorts and disguise them as longs to prevent short positions form showing on the data and bypass regulations.
As long as the shorted stocks dilute and tank and the short position closed, no one will enforce any actions since the issue is closed and we know these tickers always tank. “
Is what he describes the act of naked shorting in penny stocks that IG sates could never happen under current regulations.
There is no mention by MallenNV of the $2.50 rule.
Could naked shorts in fact be the reason that CATV shows a negative float of 1.4 billion shares on IHUB?
There is a discrepancy in what is required to short a penny stock. IG has posted about the $2.50 rule whereby a trader would need to have $2.50 in a margin account to short for each share of a penny stock.
MallenNV who is a poster at the SGMD board says following.”If you sold short SGMD at $.18 and under Reg T would only have to have 1.5x the shares price in your margin account. “. This conflicts with what IG asserts.
What is the truth?
MallenNV says it is easy to short the penny stocks. There is no mention of the $2.50 rule whereby the margin requirement is to put up $2.50 for each share shorted. For example shorting a stock at $0.125 would require putting up 20 times the short position as margin. Shorting a stock at $0.0025 would require putting up 1000 times the short position as margin.
In this last example having a short position valued at a modest $10,000 would require a margin account holding $10 million. How then is this an easy thing to do?
Thanks
Over on the ST board there is a photo of a cannabis crop being grown with the question underneath whether this is the CATV greenhouse with the new roof.
My understanding is that the CE relates specifically to Svorai and his mentioning of CATV as a part of a nefarious future corruption plan that never actually did transpire.
Feldenkrais has not been charged with any crime to my knowledge.
Dr. Otiko has gotten the product perfected and thoroughly tested. It is stain free now. That is a big improvement for hospitals and teenagers with acne. The product works better than any competing product. It could save a diabetic from losing a foot.
The only problem is that nothing is being reported as to actually happening. No contracts, no sales, no Amazon listing or sales, no reports of large sales to doctors or to hospitals.
There is however newly formed a “Wound Pros” owned by Dr. Otiko and a Brewer Health product identical to our product.
We are now also told that our product is by prescription only when there is in fact no requirement to do so. None of this makes sense.
I wish to see some evidence in the real world that some sort of business efforts are being made by Dr. Otiko in the best interests of VDRM.
Anything.
We never figured out whether a float could in theory possibly be negative. I still see IHUB listing the float as negative roughly 1.4 billion. They never seem to correct it to what IG sees at OTC website. IBKR shows the float as unavailable.
IG in a thorough post defined the float as outstanding shares minus preferred shares and restricted shares. My question, if shares could be sold short but never were borrowed or met the $2.50 rule, how would this affect the float number? Could naked shorting, which IG shows to us convincingly is impossible to do in a penny stock these days, cause a negative float number?
Do other posters here see the negative float number listed by IHUB for CATV? This is what has got me curious.
Thanks
We were recently( a few days ago) at around 6 million shares outstanding. Now it is at 18 million shares outstanding. Where did the extra 12 million shares come from suddenly? Thanks
Where do you see the 38M shares held short in PSYCF? Thanks
I wonder whether Goldman Sacks will now buy more NRBO at half the price they paid just a few weeks ago. This stock was $29 just a few months ago. The drop in price seems unreal.
If there were in actuality naked shorts in CATV stock when the CE came on, how would these shorts have covered? Could they have bought stock on the Canadian Exchange to cover the shorts held on the American OTC?
Why does the stock price go always from 5 zeros direct to 3 zeros , back to 5 zeros and each time skipping 4 zeros?
Incredibly informative post IG. I would like to see an articulate believer in Naked Short Selling of Penny Stocks read and then try to counter your post if they had a way to counter.
AD4 is a seeming believer in the reality of nefarious NSS but can not articulate clearly and concretely his view the way that IG just did for us that the shares held short is only 5,000.
Thanks again IG for the rigor, high quality and helpfulness or your posts. I say this as a long in CATV with millions of shares held through the CE.
Thanks again IG. If you go to IHub financials for CATV stock it says currently -1,469,143,028 for float number. A few other stocks have a negative number as well. One is SGMD which has gone from 40 cents to currently 0.0003. Do other people see this negative number listed here on IHub?
I got my bottle. 2 droppers full did have me noticing a calming influence on my stress or anxiety level while still awake. I went to bed an hour after the dosage. I had very vivid dreams that I woke up from in the morning, which I enjoy experiencing, but I do that as well fairly often when sleeping solid previously.
If this helps for anxiety or for sleep in reality beyond my anecdotal experience then I see a large market for this. Benzos are bad news if used beyond a two week period. Calm seems to be safer in this regard. The price could be a little cheaper perhaps once they learn how to grow the amanita muscaria mushroom in a cultivation setting. The do grow to a fairly large size in the wild.
I may be unusual but I like the mushroom taste when held below the tongue for 30 seconds time.
Thanks
Thanks IG. Another question I have is what does the negative float mean. The float for CATV is reported around negative 1.6 billion shares. Thanks again for your kind assistance.
There is also this thing that gets discussed called “dark pools”. What is that and how does this work for stock price manipulation? Thanks
I see IHub posters that seem to be savvy or seasoned traders asserting on other message boards that there is naked shorting occurring that is manipulating the stock price. This is even on other stinky pinky message boards. Stocks that trade as low as $0.0003 have these assertions. How is this possible to do with regard to the $2.50 rule.
IBKR margin requirements to short a stock reflect this rule precisely. Massive percentages required for triple zero stocks. Shorts risk unlimited losses in theory. In practice they use tricks to avoid any harmful run up in stock price until they can get out by covering.
IG states here on this board that shorting a sub penny is not practical or is too risky to do. AD4NO believes we have billions of shares held short, perhaps what is referred to as a being “ naked short”. IG states here recently in a different post that the short shares are around 5,000. That is also what I see when I look it up. The disparity in belief is massive.
Also of interest to me is whether “dark pools” apply in penny stock trading activities ?
Thanks
I mean rather more accurately being related to naked shorts? It could also be perhaps that properly registered shorts are exceeding the number of total shares in the float. Most companies show a positive float of 10-20% lower than the outstanding share count.
Thanks
What does it mean that the float for SGMD is negative 727 million shares? Are these naked shorts? Thanks
Thanks Masterblaster and Ace1978. There are some nice people in the world. I need to start using the block or ignore feature here.
Is there going to be enough harvested in the wild amanita muscaria mushrooms available to meet demand if demand were to rise significantly?
I don’t see how this answers my question. How will the outstanding share count be reduced? That is a simple question to answer. The company could buy back the billions of shares. They do not appear to have the free cash to do that.
If the CE were to come off, what is the business plan going forward? Is it grow pods, edible gummies, cultivation services, Delta 8 water, something else entirely?
We have around 5.3 billion outstanding shares. I have read on this board that the company is going to reduce share count by several billion. How is that done other than a reverse split? Thanks
It seems illogical not to get the VitaStem Ultra product out to the patients who need it. Dr. Otiko is too quiet on this one. The shareholders are feeling distressed. Now somebody is going to tell me that I need more patience.
Did the OWCP employees ever get paid their unpaid wages? Did OWCP pay the hospitals what was owed? There is a broad approved patent for skin condition treatment. Is there a value for this patent? Any other assets?
AD4NO. Are you going to be able to buy on the Canadian Exchange? Or are you waiting to buy in the USA if and when the CE gets removed? Thanks