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Interesting series of posts on shorting and MM manipulation on SHPS board by Justinee
Here is one of her posts:
SARASOTA, Fla.--(BUSINESS WIRE)--Aug. 25, 2000--BioFiltration Systems, Inc.
(OTCBB:BIFS) announced today that it is taking steps to solicit the assistance of Federal
Law Enforcement authorities and Securities and Exchanges regulators to investigate the
recent attempts by several persons to wrongfully discredit the company, its products, and
its executives. In a statement issued by Al Keyser, CEO of BioFiltration Inc., it was
announced that he would be seeking the assistance of federal law enforcement and SEC
regulators to investigate the variety of recent attacks made against the company and its
stock by "bashers" and others who have made false and harmful claims and is also
soliciting the investigation of those persons who published articles on the internet
claiming to have knowledge of the company's products and who attempted to discredit
their reliability without having seen them demonstrated. Mr. Keyser is seeking that these
investigations attempt to tie together the behavior and actions of these persons with
those who may have solicited their actions and been involved in conspiring against
Biofiltration. Inc, to derail the national rollout of its products.
The recent attacks made against Biofiltration came after the company announced the
release of its new wireless high-speed roaming Internet product (SWOMI) and began
marketing the product several weeks ago. On the heels of a dramatic number of contract
signings for the product by both private and government entities, a corresponding boost
to the stock price of the company occurred which elevated the price per share from
twenty-five cents to over two dollars per share in a two week period. This rise in stock
price was attributed by Mr. Keyser to strong investor speculation about the impact that
this new technology would have in competing with large dial-up services and to the
potential consumer demand which could follow by those tired of slow internet access.
Following this demonstrative growth came a flood of "bashing" by posters on the Raging
Bull Board and other such mediums in an overt attempt to discredit the company, its
executives, and its products. According to the company, many of these posters made
false and illegal statements in an overt attempt to bring down the stock price and the
company. About the same time as the bashing started, came the participation by
over twenty-five Market Makers who began to actively trade the stock. Soon after
this attention was focused on BIFS stock, the price of the stock was driven down from a
high of two dollars and twenty-five cents per share, to a low of fifty-five cents per share in
a single day on 8/16/2000.
Mr. Al Keyser, CEO of Biofiltration stated "Although the company is steadfastly focused
on achieving its business objectives of rolling out our key products on a national level, it
appears that the intensity of today's marketplace requires that we also devote equal
attention to aggressively defending the interests of our shareholders from those who
would engage in unethical and illegal behavior. Given that our stock is still traded on the
pink sheets, because of SEC rules, it doesn't enjoy the same level of protection afforded
to those stocks traded on the NASD, and this contributes to manipulation of the stock
price and promotes harmful volatility by uncontrolled shorting of the stock."
Jay Knabb, CEO of Beach Access and Developer of the SWOMI system commented
that, "We have always taken a proactive role in communicating the position of the
company and our product development efforts to our investors through a variety of
mediums and we plan to aggressively pursue those who would employ illegal practices
and manipulation to force down the fair market value of our stock. Our company is
actively pursuing partnerships and alliances with companies that can assist us with the
national roll out of our technologies and we owe it to our investors to exhaust every means
possible to identify and seek prosecution against those who have engaged in illegal
practices to try and stop these efforts. We are well aware of the promise that this
technology holds for our investors, our future customers, and its potential impact on
business and home computing and we have no intention of letting a few people stop us
from reaching our goals."
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The
statements contained herein which are not historical are forward looking statements that
are subject to risks and uncertainties that could cause actual results to differ materially
from those expressed in the forward looking statements, including, but not limited to, the
Company's ability to market its products and services and future customer acceptance
for these products and services and other risks detailed from time to time in company
documents furnished to investors. Contact:
CONTACT:
BioFiltration Systems, Inc., Sarasota
Al Keyser, Toll Free: 888/246-3587 or 941/343-9300
Fax: 800/536-9379 or 941/343-0404
Anyone have any insights into Printerman2 on RB, presents himself as someone who knows KC and is close to the situation. Just started posting today.
Ditto - no one is listening anymore, they are just spewing to themselves.
A&P's post was enigmatic,
but I'm sure he likes to keep people guessing. Could be he wants to try and get out in front of expected good news with his spin - as he quietly continues to cover.
The fact that there is continued, incessant bashing on RB and SI seems consistent with a large short position still out there.
I agree, that to short SEVU at 11 with lots of dirty laundry to show makes sense, but to short it again now, with good news on the horizon, doesn't makes sense to me.
44k volume this AM and an ask of 5 - Woooo
Francois: I'm trying to understand the logic of that. Are you saying he has already covered and wants to pump the price up so he can short again?
I think we are all surprised, and I wonder if that is why the board is so quiet, no one wants to jinx this run.
Prox.
Francois: Somehow it is a comfort to me to know that his post was so foul that it had to be deleted.
Here it is again, for what it's worth, appropriately censored.
______________________________
Anthony@Pacific Tuesday, Jan 23, 2001 12:52 AM ET
Reply # of 1370
In this post we have a Delusional ***** *** who is Rich Mcribes ******,, , claiming he has knowledge of a PR that is gonna hit Feb 5th.. My assumption is thathe is babbling about a deal with Sears Roebuck and Seaview, problem is Seaview doesnt have any products to give Sears....
http://www.ragingbull.altavista.com/mboard/boards.cgi?board=...
______________________________
Any credence to this?
I would just like to say on the lighter side:
that it is a lot more fun when SEVU is going up, and a lot more fun to be speculating about what the next good news will be rather than what other shoes are ready to drop.
I keep waiting for profit taking, but not thus far. Seems like there may be upward pressure with people jumping on board for the open house, then possibly some selling after the news is released from people who see SEVU as a short term play - the buy on rumor and sell on news folks.
So, we will see. Five would be nice short term. Anyway, my portfolio looks a lot better with SEVU at 3 15/16 than at 1.5 and that makes me very happy. And, for you S people, SHPS is showing signs of life too.
Regards to all. Prox.
Seahag:
It's a very common occurrence. Actually, it is also common that only part of a post is copied. I agree that, as a matter of courtesy, permission should be requested.
May be SEVU will close at 4 today and we will all be happy.
I don't have problem with this post because it isn't stating anything as fact which is not a fact. - "the SecureView Multi-Camera System is scheduled to go into mass production in 6 months". "Scheduled" is different than saying it is in production or will be in production on such and such a day. The reader is advise by the wording that there could be delays.
Seems clear to me that we are not talking here about single unit production. But, a statement of clarification would be nice since mass production of single units is on everybody's mind and everyone is understandably leery. Here, I agree with FG.
I think we should allow FG the luxury of venting. After all, he has put himself on the line more than anyone else as chairman of the thread and has spent many hours maintaining a long presence on RB and SI. He has also made constructive suggestions which haven't been taken seriously. I agree that Jeff, having talked to him personally, should go.
Having said that, I also agree with Bill, that things seem to be moving in the right direction and I am feeling much better about SEVU.
M personal thoughts. Prox.
Please, the issue of wireless has been gone over so many times before. Very old, very boring information.
Dear Rich:
In my opinion a very strong "View" both in tone, content, and a sense that it was well thought out. None of the defensiveness, victim stance, defiance in recent ones. I really liked it - projects confidence, thoughtful planning.
The points that caught my attention:
"I will stay until all the questions are asked . . You need to be aware that some questions I may not be able to answer . . employees will not answer probing questions." ( I like that Rich is making himself available, but also anticipating and heading off issues around not being able to answer all questions).
"Seaview is not under any legal, SEC, or Law Enforcement investigations"
"You will see the actual orders we have in-house for SecureView, Radio Shack, Trust Worthy and Ace Hardware stores. Yes even JC Penney and Tandy Corporation. . . . We have our GSA numbers". (if Rich delivers this, a huge lift to credibility)
"I will also be disclosing new information and this will be released after the meeting via an official press release".
(Very exciting stuff - should be fun)
Thanks Rich -
Won't happen . . . (soon). But, what would happen to the stock price if a conservative CEO were appointed - and what would that be x 4 million or however many shares Rich ownes. He might be persuaded if it become more of an issue of dollars and not so much feeling pushed out. In any case, I am sure that he and his close friends have ample votes to do what they want.
I think this view along with the last was a bit on the hostile side. He seems understandably angry that he is being called a felon and generally angry at being attacked and criticized. I think that the restriction to stock holders clearly makes sense in light of recent events. Seems understandably suspicious and sending a warning to any potential A@P infiltration.
I think his willingness to set aside a time to answer stockholders questions is very important, the most important part of the view.
I don't really get the humor, may be someone can explain it too me. I think the part on appointing a new CEO is unnecessarily and inappropriately sarcastic and dismissive. Seems insulted and angered at the suggestion, clearly he has no intention of appointing a CEO. I don't think the money is the issue at all. He will be questioned about the effect of his legal problems on AMEX I am sure. I think the credibility issue will diminish greatly if he comes through with mass production and sales.
The Miluky thing was never an issue. Does he seem happy? No. Does seem confident, bold, on the attack, not in the mood to appease, fed up with worrying and responding to his critics opinions of him and what he should do - yes.
Reading between the lines - I'm angry, I'm confident, I won't be pushed around, I won't be intimidated, wait and see - I am going to grow this company big time, I am going to win this war. Certainly seems on the offensive and very motivated.
The above are just my random thoughts. Prox.
Paulmk: your points are well taken, but I do think, and this is just my opinion, that in light of the circumstances, it will evolve into more than donuts.
I also think that a focus on products is not a trivial matter, since the future of SEVU largely involves product development.
Prox.
Bigbizz: I like your last statement:
"It doesn't mean it can't (or won't) happen" . . With all that has gone and and all the mistakes and bashing, SEVU could still make it ALL happen in 2001.
I am hopeful that there will be an up-tick in SEVU stock as anticipation for the open house builds.
JMO: Prox.
Yes, I think longs can be encouraged that Rich is willing and planning on facing what will likely be some tough questioning at the open house. An open house with investors is not the place one would go to duck anything - just think that is a good sign.
Current status reminds me of the Clinton slogan "It's the economy stupid" Here, with the barrage of material and sidetracking from A@P, the main issues are still the products, mass production, sales, and general market conditions.
I'm also thinking that shorts must be frustrated, despite their intense campaign, SEVU seems on track, hopefully all of the damaging news out, hopefully looking at the next news being good news - and here the stock is hovering around 3.
JMH: prox.
Seahag: if longs such as youself are driven from the thread, then their agenda is furthered.
FM: how about this idea:
Deleated posts go to a "recycle bin or trash bin" Anyone who wants to look at the type of posts being deleated can go to the trash bin to see.
Seriously. Prox.
MPS, my sentiments exactly, probably the same folks with new alias. Actually though, I think their tactics are backfiring to an extent because some longs that I know have a greater resolve now to see this through to some definitive conclusion. Annoying posters like bobandbob only add to that resolve. Partly, I think, we all see what the deal is here and are not impressed either by misinformation or simply dirtying up the thread. JMO. GR.
FM: This board has essentially turned into SI/RB, that is, shorts talking to each other, or attacking FG and other longs.
It's not going to work, longs will go elsewhere where they can find refuge from a constant barrage from shorts. It's not a matter of free speech or allowing a dissenting point of view, it's a matter of agenda. Whatever rules you set, shorts will find a way to defeat the rules to pursue their agenda, that is, the agenda of creating dissension, drowning out longs with continuous posting, spin whatever they have into major issues of contention - we all understand this, and no one is listening.
We all appreciate that shorts can post their opinions and have a right to advance their own agenda, but If I want the latest short spin, I can go to RB or SI, I don't need it here too. My agenda is to see SEVU prosper, to come here for the latest news and commentary from longs, not to wade through 40 posts of shorts with their latest spins.
FM, you need to rethink the rules.
JMH. GR.
As you can see it is a complete waste of time. I'm guessing the shorts are on IHUB because SI and RB posts are just shorts talking to each other, no one is listening. Most longs are content to weather the A@P storm and wait to see how this turns out.
A close above 3 would seem to be a break through to me, but with the dramatic move upward this week, there are going to be short term traders taking their profits.
Cabos: your comments are appreciated. eom.
I don't know if this is merely a short covering rally or if long's sidelined are now coming back aboard. Whichever it is, it's sure feels good to see the price edging back toward 3.
I think it is interesting that the burglars apparently did not find anything they could use (or, we would have seen it posted somehow. Perhaps there are no more skeletons in the closet. Rich certainly seems back on the offensive.
Once it becomes clear that any poster's main intention is to disrupt, to spread dissension, misinformation, and negativity on the board, they should be barred from posting. Let them go to another board and decry that the truth is being censored. What difference does it make? Since there is no intention of compromise and adhering to reasonable standards, they will simply push and push the limits until there is a consequence.
At some point, the discussion is over, and the poster is barred. Otherwise, the bickering is endless.
I think that people should be allowed to criticize and even vent to an extent, but, at some point, enough is enough and there must be some limit setting or Ihub will deteriorate to RB and SI's level, which is basically shorts talking to each other. Ihub should remain a refuge for longs who desire some constructive exchange between persons with honorable intentions.
Thanks FG, A@P's post on RB Post # of 18485 is enigmatic. He requests that the bashing stop, then seems to be saying that the best thing for shorts now is for another SEVU PR, which he posits will be a lie. Seems to be saying that what the shorts need is not more bashing, but for SEVU to release a flawed PR.
I assume that he will go over the next PR very carefully hoping to find something to use.
Who knows. I think for some, the game is the most important thing.
Volume was not heavy today, but it did pick up quite a bit at the end of the day.
I've concluded that too, so long as there are short positions, there will be short posting on RB and SI. It's seems to me that SEVU has probably seen it's low for the year, but many shorts, shorted at much higher price and they may feel pretty safe. May also be that with general market conditions as they are, short is a good position to be with almost any stock.
JMHO GR.
Francois: could you elaborate on this post from RB:
Anne, I just heard that enquiries...
are being made among known market players, to find enough shares to cover several hundred thousand shares short on SEVU... I find that surprising, as I would have thought most of the shorting was of the "naked" type, but I pass it on for what it's worth...
~~JMPO....
Francois, so how might this development affect SEVU - any short covering possibilities?
CVIEW, I was really hoping that your second line was exactly what is was - because that is exactly my sentiment. I got a sense of things turning after Rich responded to the second report, and definitely after the third report. Mass production and sales is the only real way out of this, but it does now seem that the focus is more on A@P than Rich or SEVU.
Hopefully we will start to get a little short coverage tomorrow as the A@P folks seem to be running out of steam.
This response has the "ring of truth" because I believe it is the truth. More importantly I think that A@P has pushed this too far now and destroyed what credibility he had. I'm with the previous poster, I don't really care what A@P has to say anymore.
My hope is that the major hits from A&P are now behind us and there will be no more major negative surprises. Hopefully, we will see our lows for the year soon after the market opens today and the price will recover later in the day.
As others have noted, longs need a restoration of basic confidence and trust in Rich and in SEVU's future. I personally would like some form of credible reassurance that there are, in fact, millions in outstanding orders, that there are no major problems with mass production, and when mass production will actually commence. I can be patient, and would like an accurate forecast.
It would also be helpful to receive an status report on the major areas of contention, Taiwan, GSA, military sales, AMEX, and other PR's which have been questioned. I don't think it is helpful to minimize A@P, to dismiss his claims, for Rich to portray himself as the victim here. On AMEX, I think investors would accept that, once SEVU's price dropped below 3, and in light of the A@P controversy, withdrawal from AMEX was inevitable.
Rich states: "I had planned originally for this letter to contain product and status updates. I will release that information in the future".
We all eagerly await some positive news. ...
Primo: Go the SEVU.COM, dealers, Florida, Clearwater. I called dealers in my area and go a favorable report.
From RB:
http://www.wired.com/wired/archive/8.04/dumb.html
"When Anthony predicts the downward movement of stock prices, he's often right. The thing is, even when he's wrong in the medium term, he often makes money as other traders panic and dump the stocks they bought at the peak of a quick, crazy run. In the world of the amateur player, Anthony functions as a psychological terrorist. He's the guy who makes bucks every day off everyone else's lurking suspicion that the most recent five minutes of the bull market might have been just a bit too good to be true. He's the guy who shouts "Fire!" in a crowded theater just to clear the popcorn line for a few minutes. If you are a stock buyer who got long on a press release, Anthony is the guy who proclaims the sky is falling and picks your pocket while you're looking up."
Interesting RB post in case anyone missed it.
: Haze1001 $$$
Reply To: None Monday, 25 Dec 2000 at 5:23 AM EST
Post # of 16856
The simple truth is that shorts always attack when the momentum has played out of small cap's price spike. Two recent examples in my portfolio are XYBR & CHCS. XYBR gets hammered by Bloombergs *every* time positive news comes out. XYBR *got* its Naz listing, yet Bloombergs hammered them and they didn't enjoy any appreciation. (Hope that makes SEVU owners feel better about the listing). This has happened the last three times XYBR has good news, Bloombergs trots out some blather.
Another is CHCS. They had shot from $8 to $40, a poster came on Yahoo to question accounting practices for the first time & not long after that The Street ran an article questioning the companies Same Store Sales calculations on the basis of statements made by the authors short friends (yes, he actually admitted that his source was friends of his who were short). That company dived into the $20s and hasn't completely recovered.
Point being, these guys, scum they may be, are just part of the landscape. They aren't looking for companies which are dishonest or attempting to provide a service. They target a company which has some momentum but the sales are still a year or two away. I suspect they also look for companies with a large retail investor base which they can stampede.
They wait until a run up's momentum plays out and then get some scum, sometimes even with credible organizations, to float deceptive rumors and half truths. The three times I've seen it in my portfolio, it always works.
Be grateful that Sevu's antagonist is so obviously not credible compared to the two sources who attacked XYBR & CHCS.
Checking in with my thoughts:
A divergence of opinion between Anthony and Mcbride would be the understatement of the year. McBride claiming "The Company will roll into 2001 with a backlog of orders totaling over $9-Million. . . All the parts for mass production are underway. . . for a major production run at the first of the year" and close to finalizing an 80 million deal with Taiwan. A&P claiming that sales are insignificant - that their products are "junk".
The difference here is so immense and the time frame so small - do I want to wait and see who is right? Well, if the stock price were 25, maybe not, but at 2? I think I do. Shouldn't take long for the basic truth to be revealed.
I think we can all agree, that it is quite possible, when going over a large amount of information, to pick and chose things, which, out of context, appear quite alarming. The truth is probably somewhere in between. I noted that the vendor agreement with JCP and Radio Shack PR's were not attacked and I think that is significant. I also noted that he didn't attack the PR which reported that last quarter Marine Division sales were up 410%. I have a good feeling about the Marine Division.
The Logis-Tech piece: Seems to be that the July 6, 2000 letter from Bounds re: Business Estimate is very positive - estimating 2001 sales to be in the $10,000,000 range, that is before Taiwan. This followed by the August 15 email from Travis at Logis Tech re Taiwan, confirming that there was a demonstration that went extremely well. That seems very inconsistent with the A@P "When Mr Rash was asked, Did Logis-Tech make any presentations to Taiwanese officials of SEVU products he responded by saying, "No we did not ", We know that, at the very least, there was a Taiwan presentation by Logis-tech and that the response was favorable. The July 6 letter from Logis-Tech seems very inconsistent with SEVU's products as "junk".
The May 2 PR re: SEVU about supplying SecureView cameras, infra-red floodlights, and CPU control systems to the 7th ARMCOR Division in Europe. The A@P report "not a single camera was ever bought or sold . . ", but nothing about whether are not there is an agreement, and whether or not sales will begin next year as Rich says.
The GSA piece, nothing here about NTMI being listed on GSA. As the A@P report says, NTMI does offer SecureView cameras to their customers, who are mainly government agencies. My hunch is that SecureView will be offered via NTMI on GSA and that sales have been minimal up to this point. That is my speculation. I don't know. I believe that Francois is looking into this.
The "Misleading PR" is more a more complex and troublesome issue to me. My sense is that there are no blatant lies here, but some blurring of the distinction between - we can do this, we will do this - I have been advised that we will do this - we are in the process of doing this, (and) this is a done deal, signed and delivered. It also seems that when plans changed, there was not always a PR advising the investment community to that effect, with the exception of Taiwan and revenue projections.
AMEX is a the most troubling for me given Riches 12/19 statement "I have also been reassured that it will not have an effect on our potential move to the AMEX" I believe it may be true that he was advised by Spear, et al that the A@P report, in and of itself - if proven untrue - would not affect AMEX. I do also believe, however, that when the stock price dipped below (especially 2) and with the A@P controversy unresolved, that AMEX withdrawal was a fait accompli and the 12/19 statement gave the impression otherwise. From Rich's point of view, he may have been thinking that the sales and strength of the company would pull them through, if not this year, then next. Thus, any positive statement about AMEX was technically true from his point of view. I have never met nor spoken with Rich, so this is just my speculation
I don't plan on selling Tuesday - I notice that A@P was really hammering away yesterday - perhaps a short covering dream come true, to cover during panic selling on Tuesday. If that happens, there could be a short covering bounce after the initial sell off.
The above are, of course, just my speculations, I have no insider information at all, I've never taken a course in finance, never been to SEVU, and if anything I have written is factually incorrect, I invite fellow posters to correct. On Tuesday I will not be buying or selling. I plan on waiting around for all the cards to be shown.
Should be an interesting period leading up to the stockholders meeting.
Best wishes and Happy Holidays to all. Prox.
I think the site has been down off and on.
Would like to see a "View" from Rich discussing the status of things "in the pipeline" If the specific information is confidential, then a confirming statement of what is still in the pipeline.
Bigbizz: I thought your series of posts were effective on RB, focusing on earnings growth and new products rather than an endless back and forth with shorts.