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brian whats wrong with this update?
QUESTION:
1. Audited Financials Earlier Garr mentioned that Esprit might publish audited financials for year-end 2006 depending on how the deals in China went. Now that the merger will go through can you please tell us what your plans are for the new combined company to publish audited financials for the end of the year?
RESPONSE:
As a fully reporting company, and with a growing base of investors, we anticipate that the year end statements will be audited. We will need to ensure that the Good Life financials reflect international accounting standards, although they are not required to follow U.S GAAP (Generally Accepted Acounting Principles). QUESTION:
2. Post-merger selling of shares. Will the new company be selling shares for financing or any other reason in 2008 after the merger? RESPONSE:
The Company has negotiated a commitment for a regulation D offering to raise an initial $5 million to fund expansion. The terms are still being finalized, and will be disclosed upon signing of all of the paper work.
QUESTION: 3. EFGO buyback of GoodLife shares. In response to the earlier Town Hall question “Will Goodlife be buying back shares showing there faith in the new merger?” you responded with “Post-acquisition, EFGO plans to sell off other remaining non-core assets. Plans call for the proceeds received in these subsequent transactions by EFGO to be utilized to buy back shares.”
RESPONSE:
The intent is to use proceeds that are generated by EFGO to buy back EFGO shares
QUESTION:If EFGO and GoodLife will be separate companies how can EFGO buyback shares for GoodLife? Do you mean that EFGO will buy GoodLife shares and hold them for a period of time?
RESPONSE:
Actually, EFGO will buy back shares of EFGO with proceeds from the sales.
Permalink Comments
Value of mergerPosted in Uncategorized at 3:39 am by Bigdogs
QUESTION:
Can you please help shareholders realize what the current market cap is of Goodlife?
RESPONSE:
The market cap is determined by the total number of shares outstanding multiplied by the price per share, and is thus determined by the investment community. We can noted that Good Life has a current run rate in excess of $100 million USD, and business plans for 2007 called for a net income of $2.29 million USD. We are advised that the Company is ahead of plan, and we will provide updates as they are received. It is reasonable to speculate that the current share prices of EFGO have not yet reflected the incremental value associated with Good Life.
QUESTION:
Also can you attach a PE to it with the growth rates that Goodlife is doing right now and give us a good idea what this might open at with regards to market cap?
RESPONSE:
That is another tough question. A typical multipe of a mid-pack, stable company is often in the 15 range. When you consider the growth rate of Good Life, looking to move from 1,600 to 4,000 locations by 2008, (on a franchise basis which limits company exposure to undue risk), and agressive plans to expand its portfolio of products, we would not be surprised to see a multiple much higher than that.
QUESTION:
Also how do the preferred shares that Garr holds play out in the merger?
RESPONSE:
There are no direct affects on either the common or preferred shares stemming from the uplisting process itself. Certainly the recapitlization required for the Fully Trading pink sheet company will not see any shareholders receiving a 1:1 exchange of shares, which would exceed the authorized capital of the new Company with which we are being acquired.
QUESTION:
What is the process to determine the opening price of Goodlife with the new name change?
RESPONSE:
Unfortunately, it is premature to speculate. The opening price will be determined in conjunction with our financial consultants, and may reflect changes changes in the valuation of shares leading up to the actual name change and new ticker symbol. We certainly hope that it will reflect a significant increase in value given Good Life’s tremendous growth rates and financial success to date.
QUESTION:
Whats the goal of keeping EFGO and the current sharestructure.? Is it to add more assets to it in the future and sell it off at some point or what?
RESPONSE:
Announcements regarding this point will be forthcoming as early as tomorrow. Please look for more updates and press releases this week, which promises to be quite exciting
Post Unavailable
Additional Information
Post Unavailable
Additional Information
A lot of Good News has happened lately with EFGO
BEIJING, Nov. 28 /PRNewswire-FirstCall/ - Esprit Financial Group Inc. (ESPRIT) (EFGO.PK) is pleased to announce that it has signed a firm and binding agreement to complete a reverse merger with Hebei Haorizi Company Ltd., a China based company.
http://biz.yahoo.com/prnews/071128/to400.html?.v=32
LAS VEGAS, NV, Dec. 3 /PRNewswire-FirstCall/ - Esprit Financial Group (Esprit) CEO Mr. Garr Winters announced the Company's intent to achieve fully reporting Pink Sheet company status.
Once the Company merges with the fully reporting entity, we will immediately apply for a name change to Good Life China and a new Ticker symbol.
http://biz.yahoo.com/prnews/071203/to476.html?.v=26
Business Plans call for a total of 4,000 franchised stores (an increase of 250%) and a total of 8 logistics centers (up from 3) by the end of 2008. Within Hebei Province alone, the Company estimates market demand for another 6,600 stores.
It is the intention of EFGO management to use the proceeds from these asset dispositions to buy back shares of EFGO and retire them to treasury.
http://goodlifechina.com/townhall/
Net Profit is currently projected to exceed the fiscal plan of $2.29M million USD for the 2007 fiscal year by a significant margin, and increase to over $25 million USD by 2011.
http://www.goodlifechina.com/about.php
As mentioned (probably too briefly), China's Commerce Minister has initiated a policy to help the rural provinces catch up to the gains of the cities on the east coast, Beijing, Shanghai, etc. in a Universal Rural Retailing Network.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24969500
GoodLife wants to be listed in US Stocks Exchange and no one can stop this.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24968525
With 4.9 billion now estimated to be long with 142 Ihubbers and 260 shareholders unaccounted for whats going to happen when the transfer agent realizes that the float is underwater.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24975991
The TV news clip said: Today Goodlife and Esprit had siging ceremony. They are to merge.. After that, the merged company will
endeaver(?) to build grow and expand through China... Going to Nasdaq.
YouTube
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24997298
mhallb LOL a whole lot
Keep the faith. At least I had a good birthday.
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Alright....been out a couple days. Seen the post where we're buying out this co. Great news. What's the news GOVOLs is saying is coming? What else did I miss besides the bashers a plenty?
HOpe all had a great weekend.
It's a Big World out there
The USA is only one part of a Global Economy. Other regions of the world are and will be growing and the potential is huge IMO.
Get ready, the PDR EXCHANGE will have a major roll in all regions of the world.
It is coming IMO and all the new and long term naysayer posters here can go ?
PepsiMan snowing here
in CT LOL remember what it looks like LOL
On todays News Launches New Brand Within PayDay Loan Division
Don't posters here find it very suspicious that certain negative posters show up right before the good news comes out on the Company and other posters insist they have important Facts about the Company and won't tell us EFGO investors what those very important Facts are on the EFGO the Company.
Very strange indeed
Esprit Financial Group Inc. (Esprit) (EFGO.PK) Launches New Brand Within PayDay Loan Division
via COMTEX
December 7, 2007
LAS VEGAS, Dec 07, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --
Esprit Financial Group Inc. DBA Good Life China (EFGO.PK) www.goodlifechina.com announced that it will be launching a new brand within its PayDay Loan Division; www.MoneyLendingbusiness.com.
The PayDay Loan industry is undergoing major changes in line with a changing regulatory environment at the State level. MoneyLendingBusiness.com creates a new brand identity to underline that Esprit Financial Group is offering the most up to date licensed software to conduct business in this changing environment.
Esprit CEO Garr Winters noted, "There continues to be very strong demand for 'micro' sized loans at the consumer level. The number of U.S. citizens who are unbanked (do not have a bank account) continues to grow. There is strong need for this type of service, and we intend to continue to participate actively in this market".
Esprit will continue to concentrate on licensing its software, rather than operating on a franchise system approach. Licensees will be able to offer this micro-loan capability as a stand-alone service or as an addition to a pre-existing portfolio of financial services.
Both the Cash Now and MoneyLendingBusiness.com brands will be offered in the market place. Efficiencies generated from utilizing the same back-office software and operational systems means that the new brand has a low break-even point to reach before beginning contributing to the bottom line.
In other Company news, Esprit will be providing updates on the completion of the paper work associated with the reverse merger with Good Life China next week.
Mr. Winters noted, "We are making excellent progress towards having all of the paperwork, as well as the uplisting to a fully trading Pink Sheet Company, completed before the end of the year".
About Esprit Financial Group Inc.
Esprit Financial Group Inc. is a public company engaged in a diversified number of online financial services. These include: the Payday Loan Software division; Forex Trading; Advanced Electronic Funds Management; and Specialized Investment Banking and Financial Advisory Services.
About Good Life Group Limited.
Good Life Group Limited operates a rapidly growing chain of franchised convenience stores based in Hebei Province, China. It employs advanced retail concepts such as e-commerce enabled POS/back office systems, and achieves significant economies of scale on the supply side of the business. It will be expanding geographically to neighboring Provinces, as well as offering a growing number of additional products and services, such as financial products, as it moves forward.
Safe Harbor Statement
Information in this press release may contain 'forward-looking statements.' Statements describing objectives or goals or the Company's future plans are also forward-looking statements and are subject to risks and uncertainties, including the financial performance of the Company and market valuations of its stock, which could cause actual results to differ materially from those anticipated. Forward-looking statements in this news release are made pursuant to the 'Safe Harbor' provisions of the United States Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, risks relating to the ability to close transactions being contemplated, risks related to sales, continued acceptance of Esprit Financial Group's products, increased levels of competition, technological changes, dependence on intellectual property rights and other risks detailed from time to time in Esprit Financial Group's periodic reports filed with the regulatory authorities.
SOURCE Esprit Financial Group
Copyright (C) 2007 PR Newswire. All rights reserved
Post Unavailable
Additional Information
itlogic your changing the subject the Facts please
I have been respect full and asked you to posts your Facts that you say you have found that could help EFGO Investors. "Things based on facts and honesty" as you say in one of your many posts below.
Now your avoiding the very issue you brought up in the post below "Dude I have facts"
Put up the facts, if you don't then it is obvious you do not have any Facts as you stared.
Posters here are waiting itlogic.
Dude I have facts
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25103436
"I'm just trying to level the playing field so the bad guys don't always have the upper hand"
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25103435
Things based on facts and honesty.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25103266
itlogic Please enlighten us with your Facts
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25103487
OK itlogic the Facts please
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25103961
itlogic if you want to help investors as you stated
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25104239
No itlogic I can't wait.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25105229
Well, I know I'm doing the roud-a-bout. I learned it from GoVols.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25105724
No itlogic I can't wait.
and I am sure others here as well want to know what Facts you have found out that are so important to us EFGO shareholders.
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Can't you wait until the weekend? We have one more day to get this thing to .0004 or higher. In fact, I will wait another week if you insist.
Also, I got a PM yesterday from someone. I had to laugh because, by their post, I could tell that they have already planned their counter.
Let me ask you this. When the PR first came out about the Chinese company, where did you go for information? I bet you went straight to the english website set up by EFGO didn't you? I'm sure your read it dillegently to get all the scoop.
Not me, I went staright to the Chinese website. I figured if this was the real deal, the Chinese would have something to say about it... and they did. The thing is, it had more details. I posted some of them last Friday. After posting them, I returned to the Chinese PR page and guess what. All those details were suspiciously gone.
Good thing I have the original PR translated with screen shots just in case there is any doubt.
itlogic if you want to help investors as you stated
then now is the time to post your Facts. Excuses and avoiding posting your Facts will tarnish your image as really trying to help EFGO investors. What is the clincher you found?
Please post your findings.
"D) Even though there is plenty, only one thing needs to be known. Fortunately, the last thing found was the clincher I had been looking for. I'm sure many, if not most, will tear it down because it won't fit your opinions. I can only show you the water, I can't make or expect you to drink it."
***********************************************************
A) There are too many things and it gets very confusing to just put in a post.
B) I have riddled this board with much of them over the past 7 months
C) I said last Friday that I wouldn't post my latest until, at least, this weekend. I like to play fair and want to give those who know what I'm talking about a chance to think of a counter attack. Besides, I was hoping the pump fest would be in full swing this week. I didn't want to spoil anyones fun.
D) Even though there is plenty, only one thing needs to be known. Fortunately, the last thing found was the clincher I had been looking for. I'm sure many, if not most, will tear it down because it won't fit your opinions. I can only show you the water, I can't make or expect you to drink it.
There are many many smart peole here. Much much waaaayyyyyy smarter than me. The only thing I have going for me is persistance and a technology background. Once the financial stuff and SEC rule stuff hits the fan, I need lots of help.
OK itlogic the Facts please
Posted by: herbalife13
In reply to: itlogic who wrote msg# 79249
Date:12/6/2007 8:19:55 PM
Post #of 79261
itlogic Please enlighten us with your Facts
As you state below.
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Dude I have facts that would spin your head off your neck. You rely on safe harbour statments. Good luck with that one.
Thanks BigDogs for updating the Box
Nasdaq opens office in Beijing to lure more Chinese firms
http://english.people.com.cn/90001/90776/6314036.html
NYSE to inaugurate Beijing office next week
http://english.people.com.cn/90001/90778/6313968.html
Pics on Haorizi corp site.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25005940
What timing for Haorizi/Good Life (understatement).
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24969500
itlogic Please enlighten us with your Facts
As you state below.
*************************************************************
Dude I have facts that would spin your head off your neck. You rely on safe harbour statments. Good luck with that one.
itlogic IMO you do not give posters
enough credit on the DD they have done on EFGO and the Reverse Merger. The Press Releases and updates on Town Hall point out the Facts for all to read for themselves.
Also if one wants to they can write Town Hall and ask a question and get an answer not an opinion. Who would one rather get their information from? A poster or the Company?
"I'm just trying to level the playing field so the bad guys don't always have the upper hand"
*************************************************************
The answers are for you to find, I'm just giving you other things to consider. Things based on facts and honesty. Even though it doesn't suite my wallet, it suites my soul. As soon as you think whatever is a sure thing, your toast! It is easy to get duped in this game, especially at this level. I'm just trying to level the playing field so the bad guys don't always have the upper hand.
I guess I'm a traditionallist who loves Batman and Spiderman. I route for justice and the capture of the villan.
Stratey our markets Corrupt
Is that good?
you state
-"Our company is now run by a Communist Government. Can that be good?"
To the pessimistic posters: Given whats about to happen with this EFGO/Good Life deal what's not to like? BOOOYAAAAH
I'll tell you what's not to like...
-What happens to EFGO when it borrows the $5M from the related party?
-What happens to the super-voting shares?
-Who is that big guy in the picture?
-Our company is now run by a Communist Government. Can that be good?
-The new pink buys the assets of EFGO, and we still get to keep the shares in EFGO. What good is a company with no assets?
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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.
itlogic Pump and Dump Your reasoning bewilders me
Your reasoning bewilders me and your constant posts over and over day after day troubles me. You answer a Question with another Question never resolving anything.
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I suppose that is consievable. But, I wonder what the A/S will be of the new company. The current employees and managment of the new company will want to play too. According to the scenerio at hand, the A/S is the only conduit they will have to get in their own game.
I don't want to be completely pessemistic, your case could very well be valid. But, I'm always trying every angle. What better time to dilute then when you know everyone will be buying. Perhaps that is the very reason EFGO hasn't made it to the moon with such big thrusters these past weeks.
Play it as you see fit bigdogs and everyone else. I'm just pointing out other ideas to consider. If all what is being discussed is true, it could be setting up for one great pump and dump. Choose as you will, just make sure you know all your options.
The Green Monster
Read the factual links below
then make a wise decision based on Press Releases, Town Hall News, TV interviews and great DD done by posters here.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25001240
Nasdaq opens office in Beijing to lure more Chinese firms
http://english.people.com.cn/90001/90776/6314036.html
NYSE to inaugurate Beijing office next week
http://english.people.com.cn/90001/90778/6313968.html
Pics on Haorizi corp site.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25005940
What timing for Haorizi/Good Life (understatement).
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24969500
crisenzio I second that
To the pessimistic posters: Given whats about to happen with this EFGO/Good Life deal what's not to like? BOOOYAAAAH
ergo sum I suggest you read Town Hall
and all the past press releases for your answers.
http://goodlifechina.com/townhall/
universaltrader you state is pretty evident some will do anything
to bolster their position.
So again explain these posts for all of us here.
How about explaining all these posts you wrote.
I am interested in your Group (the 3rd post down) can you tell us more?
http://investorshub.advfn.com/boards/read_msg.asp?message_id=18262864
http://investorshub.advfn.com/boards/read_msg.asp?message_id=18210147
http://investorshub.advfn.com/boards/read_msg.asp?message_id=17543836
http://investorshub.advfn.com/boards/read_msg.asp?message_id=18210147
Posted by: universaltrader
In reply to: wildcard1 who wrote msg# 78948
Date:12/6/2007 11:46:14 AM
Post #of 79156
EFGO infiltration has only hurt the position here. Shareholders can make their own decision on who is being truthful, and who is lying. It is pretty evident some will do anything to bolster their position
Good Life (Haorizi) is in fact a reverse merger
QUESTION:
The Press Releases from China indicate that Esprit is only acquiring an interest in Good Life. This does not sound lke a reverse merger at all. Why is there such a discrepency?
RESPONSE:
The Deal with Good Life (Haorizi) is in fact a reverse merger. Good life has tendered all of their shares in their private company in order to complete this deal. They will receive publicly traded, but restricted stock in exchange for these shares.The press releases in China were poorly translated, and coupled with their inexperience in the public market, it came out backwards.
In esssence, 100% of Good Life China shares will be traded under the new ticker symbol (once it is obtained) on the Pink Sheets, and Good Life is no longer a privately held company.
BigDigs hard to say but whatever it is
IMO will be an added gift to us EFGO longs. I said a long tome ago that we may see spon offs of some sorts. There is a lot of positive things to look forward to with this reverse merger.
Just read all the Facts that have been put out by posters here and the company. Good job keep it up.
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I think the big question is
What is the new company going to be valued at Marketcap wise.
EFGO/Goodlife with be north of 100 million dollars in Gross sales.
If the market cap is at 90 million on the open then our share will be 9 million of that (10 percent) and from current prices that would be equivalent to .0009.
If the market cap is 60 million then (.0006) equivalent.
If the market cap is 30 million then we would be the same to where we are valued now.
EFGO thinks we are highly undervalued so my guess is the Market cap of the new company could be in excess of 100 million market cap based on there revenues and profit.
Whats everyones thoughts on this and how is this going to be assessed before it opens up under the new symbol.
51 Individual Traders for Fraudulent Market-Making
For Immediate Release 99-2
SEC Fines 28 Brokerage Firms $26 Million and Suspends
51 Individual Traders for Fraudulent Market-Making
Activities in the Nasdaq Market
Washington, DC, January 11, 1999 -- The Securities and
Exchange Commission today imposed civil penalties of more than
$26 million on 28 broker-dealers and suspended 51 individuals
from the industry for various lengths of time for numerous
federal antifraud or other violations resulting primarily from
market-making activities in the Nasdaq stock market.
Richard H. Walker, Director of the Division of Enforcement
said, "These settlements effectively bring to a close the long-
standing investigation of the Nasdaq market first begun by the
SEC in 1994. The settlements require the firms to improve their
trading policies and procedures, building upon other reforms
already implemented."
Chairman Arthur Levitt said, "Thanks to effective
leadership, today Nasdaq is stronger and better. The sound
reforms implemented over the past several years and the
commitment to strong oversight greatly enhance investor
protections and reaffirm confidence in the Nasdaq market."
The firms and individuals consented to a variety of
sanctions, including: civil monetary penalties totaling
$26,302,500, disgorgement of wrongful gains totaling $791,525,
suspensions or bars for the individual respondents, and cease and
desist orders. All of the firms and individuals involved in this
action settled the cases without admitting or denying the
charges.
The SEC found that the firms had engaged primarily in one or
more of the following types of violations: (a) the coordination
of quotations and transactions by traders making markets in
Nasdaq stocks in violation of antifraud and fictitious quotation
rules, (b) the intentional delay of trade reports, (c) other
manipulative activity, (d) failure to honor quoted prices, (e)
failure to provide customer orders with best execution, (f)
trading as principal with advisory clients or discretionary
customers without disclosure and consent, (g) failure to comply
with the books and records requirements, and (h) failure to
supervise.
The sanctions on the broker-dealer respondents include: (a)
civil monetary penalties, (b) disgorgement of wrongful gains,
where appropriate, (c) cease and desist orders, and (d) in the
case of twenty-two of the broker-dealers, a review of their
policies and procedures relating to the areas of their violations
by an independent consultant to be appointed by the Commission.
The sanctions on the individual respondents include: (a)
suspensions or bars from the securities industry, (b) civil
monetary penalties, (c) cease and desist orders, and (d)
disgorgement of wrongful gains, where appropriate.
Details of the Commission's actions, including the names of
the firms and individuals and the respective penalties assessed,
are identified in the Commission's order, which is available at:
www.sec.gov.
The SEC acknowledges the assistance of the NASD in these
cases.
# # #
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
ADMINISTRATIVE RELEASE, January 11, 1999
SECURITIES EXCHANGE ACT OF 1934
Release No. 34-40900
In the Matter of Certain Market Making Activities on Nasdaq,
Administrative Proceeding File No. 3-9803
The Securities and Exchange Commission today announced the
institution of administrative proceedings against 28 broker-
dealers and 51 individuals who worked at those broker-dealers for
various antifraud violations and other violations of law
resulting primarily from market making activities in the Nasdaq
stock market. The respondents are identified on the attached
list. The respondents have simultaneously consented, without
admitting or denying the Commission's findings, to the entry of
Orders which impose civil monetary penalties totalling
$26,302,500, disgorgement of wrongful gains totalling $791,525,
suspensions or bars for the individual respondents, cease and
desist orders and other sanctions. The Orders found that the
respondents had engaged primarily in one or more of the following
types of violations: (a) the coordination of quotations and
transactions by traders making markets in Nasdaq stocks in
violation of antifraud and fictitious quotation rules, (b) the
intentional delay of trade reports, (c) other manipulative
activity, (d) failure to honor quoted prices, (e) failure to
provide customer orders with best execution, (f) trading as
principal with advisory clients or discretionary customers
without disclosure and consent, (g) failure to comply with the
books and records requirements, and (h) failure to supervise.
The sanctions on the broker-dealer respondents include: (a)
civil monetary penalties, (b) disgorgement of wrongful gains,
where appropriate, (c) cease and desist orders, and (d) in the
case of twenty-two of the broker-dealers, a review of their
policies and procedures relating to the areas of their violations
by an independent consultant to be appointed by the Commission.
The sanctions on the individual respondents include: (a)
suspensions or bars from being in the securities industry, (b)
civil monetary penalties, (c) cease and desist orders, and (d)
disgorgement of wrongful gains, where appropriate.
The Commission issued two different but related types of
Orders in this proceeding. The Order Instituting Proceedings
provides a broad discussion of the various types of unlawful
conduct that occurred in 1994 in connection with market making by
the respondents in the Nasdaq market. In addition, specific
Orders Making Findings and Imposing Sanctions were separately
issued for each broker-dealer respondent and the individual
respondents, usually traders, who worked at that particular
broker-dealer. Each Order Making Findings and Imposing Sanctions
describes the extent to which any particular respondent engaged
in the types of unlawful conduct described in the Order
Instituting Proceedings. The types of violative conduct found by
the Commission include the following:
1. Market Manipulation. Market makers coordinated the
entry of bid and/or ask quotations into the Nasdaq system
for the purpose of artificially affecting the market price
of a particular security in order to obtain an unfair
trading advantage for the participating market makers.
These undisclosed arrangements typically involved one market
maker requesting another market maker to move its quotations
in a manner that changed the inside spread or disadvantaged
customers or other market participants. Such coordinated
activity violated the antifraud provisions of Section
15(c)(1) of the Exchange Act and Rule 15c1-2 thereunder, and
the prohibition on the entry of fictitious quotations
provided in Section 15(c)(2) of the Exchange Act and Rule
15c2-7 thereunder.
2. Undisclosed Coordination of Quotations. Another type of
misconduct involved undisclosed arrangements between market
makers to coordinate the entry of quotations that did not
have a manipulative impact. In many instances, this
activity was intended to paint a deceptive picture of market
conditions, or induce another market participant into buying
or selling at an artificial price. Although the Commission
did not find that, in these instances, there was any
manipulative impact, such as a change in the inside market,
or harm to a customer or other market participant, such
conduct violated the rules prohibiting undisclosed
coordinated quotations. In other instances, one market
maker would enlist another market maker to disseminate a
quotation to buy or sell Nasdaq stocks on its behalf, such
as a request to the second market maker to join the existing
inside bid or ask, or create a new inside market price, in
the hopes of buying or selling stock. These undisclosed
arrangements violated the prohibition on the entry of
fictitious quotations provided in Section 15(c)(2) of the
Exchange Act and Rule 15c2-7 thereunder.
3. The Intentional Delaying of Trade Reports. In a number
of instances, market makers intentionally delayed reports of
significant trades to the Nasdaq market. The purpose of
delaying these trade reports was to provide the relevant
trader with an unfair informational and trading advantage
over other market participants. The failure to properly
report trades in such cases violated the antifraud
provisions of Section 15(c)(1) of the Exchange Act and Rule
15c1-2 thereunder.
4. Other Market Maker Misconduct . Market makers engaged
in other manipulative activity which did not involve
arrangements for the entry of quotations. This activity
involved transacting with other market makers that were
quoting the inside bid or inside ask, for the specific
purpose of altering the inside market prices where customer
orders were executed, which resulted in a worse price for
the customer (or for another market participant, in some
instances). Such conduct improperly benefitted the market
maker and harmed the interests of its customer (or another
market participant), in violation of the antifraud
provisions of Section 15(c)(1) of the Exchange Act and Rule
15c1-2 thereunder.
5. Best Execution Violations In a number of instances,
Nasdaq market makers failed to provide best execution for
their customers' orders. These instances involved a market
maker deliberately favoring its own interests, or those of a
cooperating market maker, over the interests of its
customers, such that the customer did not receive the most
favorable price reasonably available under the
circumstances. This violated the antifraud provisions of
Section 15(c)(1) of the Exchange Act and Rule 15c1-2
thereunder.
6. Failure to Honor Quotations. Another type of misconduct
was the failure by market makers to honor their Nasdaq
quotations in various instances. In these instances, the
market makers did not honor their quotations because they
did not like the trading practices of firms that presented
the orders or because of other improper reasons, in
violation of the Commission's firm quote rule (Exchange Act
Rule 11Ac1-1, 17 C.F.R. 240.11Ac1-1).
7. Failure to Keep Accurate Books and Records. In many
instances, market makers failed to create or maintain
records of their trading activity, particularly with respect
to the terms and conditions of customer orders, or the times
of entry or execution of such orders. These failures
violated the recordkeeping requirements of 17(a) of the
Exchange Act and Rules 17a-3 and 17a-4 thereunder .
8. Failure to Reasonably Supervise Nasdaq Trading. Most of
the respondent firms failed to reasonably supervise traders
and other persons involved in transactions in Nasdaq stocks.
Most of the respondent firms did not prescribe procedures or
guidelines for their traders or supervisors concerning the
potential problems of discussing quotations with traders at
other firms. Other respondent firms had inadequate
procedures in this regard. In addition, most respondent
firms had no procedures or guidelines for supervisors to
review activities of traders for potential coordination or
collaboration with respect to quotations. Other respondent
firms had inadequate procedures or guidelines for such
supervisory reviews. Certain respondent firms relied on
their head Nasdaq trader to perform much or most of the
supervisory function without effective oversight of the head
trader's activities. This proved to be a flaw in the
supervisory structure in some instances when the head trader
engaged in one or more of the violations of the federal
securities laws found by the Commission in these proceedings
to have occurred. Further, certain respondent firms did not
provide their Compliance Departments with resources adequate
to perform their assigned responsibilities relating to
trading in the Nasdaq market. The complexities of the
Nasdaq market and trading in Nasdaq stocks will often
require, at firms with sizeable Nasdaq trading departments,
a substantial commitment of compliance resources.
In addition, the Orders Making Findings and Imposing Sanctions as
to a few specific firms made findings of certain other unlawful
conduct in 1994, as is described below:
a. Improper DSPG Trading. PaineWebber, Inc., S.G. Cowen &
Co., CIBC Oppenheimer Corp., and Herzog, Heine, Geduld,
Inc., and certain of their employees engaged in manipulative
conduct involving the stock of DSP Group, Inc. ("DSPG").
Certain traders at these firms engaged in quote coordination
and other collaborative conduct involving DSPG stock on
various days over a period of several months. In the manner
and to the extent described in the applicable Order Making
Findings and Imposing Sanctions, they artificially depressed
prices in order to enable PaineWebber or Cowen to purchase
stock more cheaply from customers or others, and
artificially elevated prices in order to enable PaineWebber
or Cowen to sell at higher prices to customers or others.
Among other things, a PaineWebber registered representative
and certain of its traders failed to fulfill their
obligation of best execution for certain customer orders, in
order to enhance the profits and compensation obtained from
executing these orders. This conduct violated the antifraud
provisions of Section 10(b) of the Exchange Act and Rule 10b-
5 thereunder.
b. Section 15(f) Charge. J.P. Morgan Securities, Inc.
("J.P. Morgan") violated Section 15(f) of the Exchange Act.
This provision requires that a registered broker-dealer
establish, maintain and enforce policies and procedures
reasonably designed to prevent the misuse of material
nonpublic information. A J.P. Morgan Nasdaq trader
accumulated approximately 100,000 shares of Perrigo Company
("Perrigo") after learning that J.P. Morgan investment
bankers working for Perrigo were analyzing a potential stock
buyback by Perrigo as a means to enhance its stock price.
Perrigo subsequently decided not to proceed with a buyback
and the trader sold this position without profiting from his
knowledge of the consideration of a buyback. J.P. Morgan's
then existing policies and procedures were deficient in not
requiring any consultation with the Compliance Department or
legal personnel before the trader bought this position under
these circumstances.
c. Principal Trading with Advisory Clients and
Discretionary Customers. Legg Mason Wood Walker,
Incorporated ("Legg Mason") violated Section 206(3) of the
Investment Advisers Act of 1940 ("Advisers Act") by engaging
in indirect principal transactions with its advisory
clients, and violated the antifraud provisions of Section
15(c)(1) of the Exchange Act and Rule 15c1-2 by engaging in
indirect principal transactions with its discretionary
customers. These provisions prohibit a broker-dealer from
trading as principal with its advisory clients and
discretionary customers, without certain disclosures to them
and their consent. In executing certain orders to transact
stocks for the account of advisory clients and discretionary
customers, Legg Mason delivered the order to another market
maker, purportedly on an agency basis. Legg Mason then
simultaneously arranged to trade itself with the other
market maker the same amount of the same stock, such that it
indirectly filled the customer's order. The customer
confirmation inaccurately indicated that Legg Mason acted in
an agency capacity in the transaction. This arrangement
gave Legg Mason the potential to make a trading profit from
the orders of advisory and discretionary clients, or to
dispose of an unwanted inventory position, in violation of
the previously cited provisions.
The Commission acknowledges the assistance of the National
Association of Securities Dealers, Inc. in the investigation.
Respondent Firms and Individuals
Bear Stearns & Co., Inc. and Philip D. Zeifer
Cantor Fitzgerald & Co.
S.G. Cowen Securities Corp., Kennedy M. Buckley, David D. Dube,
Peter M. Gilfillan, John P. Mottes and Richard S. Striefler
CS First Boston Corp.
Dean Witter Reynolds, Inc.
Donaldson, Lufkin & Jenrette Securities Corp. and Lawrence H.
Kurtz
Gruntal & Co., L.L.C.
Hambrecht & Quist LLC and Edward L. Albert
Herzog, Heine, Geduld, Inc., Ronald F. Cullen, Jr. and Bradley
Zipper
J.P. Morgan Securities, Inc., Donald A. Dunworth, Mark A.
Gallagher and David J. Mottes
Jefferies & Company, Inc.
Legg Mason Wood Walker, Incorporated
Lehman Brothers Inc.
Mayer & Schweitzer, Inc., Robert Burns and Christopher D. Colgan
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Morgan Stanley & Co., Inc., Peter W. Ferriso, Jr. and Robert S.
Ranzman
Olde Discount Corp., Jack G. Monopoli, Frank W. Schwarz, III, and
John F. Watson, Jr.
CIBC Oppenheimer Corp. and William G. Clark, Jr.
PaineWebber Inc., Richard A. Bruno, Peter F. Comas, Robert D.
Coppola, Gerard Kane, Joseph J. Palma, Arthur A. Raiola, Joseph
H. Raiola and Reuben G. Taub
Piper Jaffray Inc. and Stacey R. Rickert
Prudential Securities Inc., Michael T. Burke, Jr., Joseph G.
Candela and Robert D. Sprotte
Raymond James & Associates, Inc., Thomas J. Dudenhoefer and
Timothy J. Kane
The Robinson-Humphrey Company, LLC
Salomon Smith Barney Inc. (as successor to Salomon Brothers Inc)
Salomon Smith Barney Inc. (formerly known as Smith Barney Inc.),
Glenn Y. Blitzer, Barry J. Dusti and George C. Ross, Jr.
Sherwood Securities Corp., Brian J. Deegan, Richard M. Marino,
Edward G. Schmitz and David M. Zitman
Spear, Leeds & Kellogg, L.P. (by virtue of the activities of its
Troster Singer division), Michael J. Ling, James P. Morris, John
J. Quigley and Eric J. Scherzer
Tucker Anthony Inc.
Warburg Dillon Read, LLC, Michael R. Antolini, Steven D. Murphy,
Joel I. Zweig and David S. Rothman
William P. Heenan
Marine IMO Conflict of Interest
If this were done I would think it would cause legality issues.
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I have a question to all:
Can an MM legally ask questions on a town hall forum via the Company's web site?
Thanks......... PM me if you want
Real Estate Growth in China, good for business IMO
2nd-tier cities a popular option
+ -
09:05, December 06, 2007
Second-tier cities remain the key focus for domestic and foreign property investors for 2008, fuelled by their strong economic fundamentals and bigger profit margin, industry experts said.
"Though the property price of China's second-tier cities has seen a big jump this year, I believe there's still plenty of growth potential, compared with metropolitan cities that already have very high property prices," Chris Brooke, president & CEO of CB Richard Ellis, told China Daily.
Some second-tier cities, such as Tianjin, Hangzhou and Chengdu, have been well explored, while others like Shenyang and Wuhan are becoming more popular with investors, Brooke said.
"However, if the property price in those key second-tier cities grow too fast next year, real estate firms may turn their eyes to other second-tier cities and even third-tier ones," he added.
Sale prices of new residential apartments rose by 10.6 percent year-on-year in October, according to statistics from the National Development and Reform Commission (NDRC). Ningbo and Urumqi led the price hike, with rates of 19.1 percent and 18.5 percent respectively.
Beihai, a city at the southern end of South China's Guangxi Zhuang Autonomous Region, has been on the top of a list by the NDRC for four months in a row, for its skyrocketing property prices.
According to Eric Chan, deputy managing director of Savills, a UK real estate services provider, the first-tier cities will see major opportunities in high-end buildings, while those second-tier ones have bigger chances in industrial and logistics real estate.
"The attraction for foreign investors, in fact, is even more stronger after the Olympic Games, thanks to the big improvement in infrastructure," Chan said.
Meanwhile, as more Chinese property developers mull over listing plans, domestic real estate firms are going to have stronger power, Brooke said.
Henan-based Xinyuan (China) Real Estate has recently submitted an application to the New York Stock Exchange for listing.
"There may be more property firms seeking listings in other overseas stock exchanges, but the majority will still choose Hong Kong bourse, the most convenient capital market," Brooke said.
Positive things happening
You will see. All IMO
maybe this article will help explain things.
Why all the bashing ..... maybe this article will help explain things.
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.
Report: China's 2007 online ad market may exceed 10 bln yuan
+ -
08:11, December 05, 2007
China's online advertising market is likely to exceed ten billion yuan (1.3 billion U.S. dollars) this year, a research report said.
The figure represents a 114.6 percent increase from the 4.66 billion yuan of last year.
In October, the nation's online advertising revenues hit 870 million yuan, lifting the market size to 7.5 billion yuan in the first ten months, according to the report from Nielsen, a leading global information and media company.
The report noted that China's web advertising market will post faster growth in the coming months as the 2008 Beijing Olympics nears and businesses from home and abroad seek to cash in on the nation's huge purchasing power.
The growth rate of China's online advertising, one of the most successful business models for Internet firms, was higher than that of broadcasting advertising and magazine advertising.
Sina, Netease, QQ, and Sohu, China's four largest Internet portals, are big gainers of the robust online advertising growth. Their total advertising incomes exceeded 100 million U.S. dollars for the first time in the third quarter of the year.
The report also shows that entertainment and fast consumable products makers have overtaken financial and property firms as the largest spenders on web advertising.
Source:Xinhua
Bigdogs good analysis.
Read the factual links below
then make a wise decision based on Press Releases, Town Hall News, TV interviews and great DD done by posters here.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25001240
Nasdaq opens office in Beijing to lure more Chinese firms
http://english.people.com.cn/90001/90776/6314036.html
NYSE to inaugurate Beijing office next week
http://english.people.com.cn/90001/90778/6313968.html
Pics on Haorizi corp site.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25005940
What timing for Haorizi/Good Life (understatement).
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24969500
veloyt
There could be a few different scenarios.
There are groups that are working together in cohoots to keep the stock at these levels so they can buy it cheap and trade it between the spread.
Currently the spread is 50 percent so there could be some very good money made if they can get longs to sell and then buy those up at .0002 and resell them at .0003.
Or the MMs have a huge undersupply of shares and are doing everything in there power to try to discredit EFGO so they can cover as many as possible as low as possible.
Sure the stock traded at .0001-.0002 but this doesnt mean they covered the shorts they were in. Why because if most of the shares are already owned by longs then what are they covering with even if the volume is big. If Ihub owns the majority of shares and are holding then there are no real shares to cover with.
MMs also profit huge through the spreads. So for every buyer and seller they match up they get whatever the spread is so its to the advantage of the MM to try to keep pinky stocks as low as possible if its in there power so they can make 50 percent off of each trade. As the stock goes higher the percentages decrease.
MMs also want to participate in the rise and fall of stocks and before this takes off they will find a way to reap the benefits of a huge run just as they made out on the downside.
Its all speculation but this is what my experience from talking to some transfer agents and CEOs.
By the way there are some huge hedgefunds in on this and they must have there own MMs or influences as I recently found out that another stock and I wont name it have found the source to some massive Shorting and its based in Switzerland.
Company is trying to come up with solutions to trap them and have consequences for them so the Hedgefunds are most definitely involved here.
Thats right BigDogs
"So many geniouses with no concrete evidence for any of it."
All scare tactics.
***********************************************************
All of these posts are ridiculous speculation and noone knows the terms of the deal and negotiations that have been made.
Let EFGO do there thing and then report it.
So many geniouses with no concrete evidence for any of it.
The stock is way undervalued at these levels and for anyone thinking about selling now in any case will get no shares of the new company.
The plan is in place and EFGO is extremely confident the stock is way undervalued at these prices.
6-9 months of planning and they by now way will sell out with nothing to gain from it.
So let them unfold the story before and let the chips fall where they may.
Anyone selling now will definitely short change themselves.
We are already at the bottom basement in case nobody realizes.
Read the factual links below
then make a wise decision based on Press Releases, Town Hall News, TV interviews and great DD done by posters here.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25001240
Nasdaq opens office in Beijing to lure more Chinese firms
http://english.people.com.cn/90001/90776/6314036.html
NYSE to inaugurate Beijing office next week
http://english.people.com.cn/90001/90778/6313968.html
Pics on Haorizi corp site.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=25005940
What timing for Haorizi/Good Life (understatement).
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24969500
Overseas firms encouraged to list in Chinese mainland market
+ -
13:45, December 02, 2007
Related News
China to allow foreign governments to issue yuan bonds
Young HIV carriers go public to join battle against AIDS
China to regulate 3 mln security guards
China's grain production expecting to top 500 mln tons in 2007
China Eastern to launch new route from Nanjing to Pusan
China encourages overseas firms and Hong Kong-listed domestic companies to go public in Chinese mainland market, said top securities regulator Shang Fulin on Saturday, as the country seek to enlarge the capacity of its capital market.
"We wish they could choose to get listed in our A share market." said Shang. "We also support existing companies to boost its scale through assets regrouping and integration."
Sources with the Shanghai Stock Exchange said the bourse was considering introducing international firms that performs well in China.
China Securities Regulatory Commission (CSRC) will continue to absorb large and well-performing firms into the country's stock market, said Shang.
China has sped up the listing of large state-owned enterprises (SOEs) mainly in oil and chemicals, telecommunications, transportation and metallurgy industries in past few years, which not only diversified the ownership of SOEs but also gave a de factor boost to mainland bourse.
Acknowledging that "China's existing capital market needs further improvements," Shang rated the establishment of a multi-tier capital market as one of the urgent tasks in current economic development.
Source: Xinhua
Chinese banks mature with improved governance, risk management
+ -
20:22, December 04, 2007
As the sector continues to mature, Chinese banks have significantly improved their corporate governance and risk management, according to a new report released by the Research Center of Corporate Governance of Nankai University in Tianjin.
Publicly listed banks in the country had superior corporate governance performance to the more than 1,000 other listed enterprises on the Chinese mainland, according to the recently released study.
A total of 135 domestic banks now have more than an 8-percent capital adequacy ratio, while only eight banks reached the standard at the end of 2003, the report said.
Banks are required to have at least an 8-percent capital adequacy ratio before they can have a commercial operation and apply for mainland listings. Many banks now have a capital adequacy ratio surpassing 12 percent.
"Heated competition brought by foreign banks since the country opened its financial market, increasing mergers and acquisitions and expanding demand for service diversification and specialization have pushed Chinese banks to improve their corporate governance," said Liu Mingkang, chairman of China Banking Regulatory Commission (CBRC), the country's banking watchdog.
While significantly improving their corporate governance, banks have at the same time greatly increased their profitability.
Among the 10 most profitable listed companies, five were from the banking sector.
Industrial and Commercial Bank of China (ICBC), the country's largest commercial bank, recorded a net profit of 63.3 billion yuan in the first three quarters of 2007, the highest of the 66 listed companies whose net profits were 1 billion yuan more.
China Construction Bank (CCB), the country's second-largest lender, posted a net profit of 57 billion yuan in the first three quarters.
Also on the list are the Bank of China (BOC), the Bank of Communications (BOCOM) and China Merchants Bank.
"Rapid reform of banking assets and increasing innovation have also enabled Chinese banks to improve corporate governance and risk control," Liu said.
The average non-performing loan (NPL) ratio for the four big State-owned banks - ICBC, CCB, BOC and BOCOM - is now 3.3 percent, compared to more than 22 percent at the end of 2003.
The nation's 12 joint-stock commercial banks now have an average NPL ratio of 2.8 percent, in contrast with 4.22 percent at the end of 2005 and 16.62 at the end of 2001, according to statistics from CBRC.
"Corporate governance is of vital importance in the financial sector," said Li Weian, professor and director of the Research Center of Corporate Governance with Nankai University.
The research center has introduced a corporate governance index to help the government better supervise listed companies and protect investors' interests.
"The index will help ensure rational investment," Li said.
The country's banking regulator said it aims to further improve bank corporate governance through four measures, including enhancing internal controls and risk management, setting criteria to evaluate corporate governance, enforcing a clear responsibility and accountability system and raising the level of transparency in the banking sector.
Source: China Daily
Thanks KA12
Appreciated
By the way I am Back
The GREEN Monster LOL, nice find Marine
Tell me this isn't funny :)
http://english.people.com.cn/90001/90776/6314036.html
or this
http://english.people.com.cn/90001/90778/6313968.html
China cares about this R/M
That is all that matters to me. China is the place to be now and in the future for growth and investment. Read the factual links below, then make a wise decision based on Press Releases, Town Hall News, TV interviews and great DD done by posters here.
BEIJING, Nov. 28 /PRNewswire-FirstCall/ - Esprit Financial Group Inc. (ESPRIT) (EFGO.PK) is pleased to announce that it has signed a firm and binding agreement to complete a reverse merger with Hebei Haorizi Company Ltd., a China based company.
http://biz.yahoo.com/prnews/071128/to400.html?.v=32
LAS VEGAS, NV, Dec. 3 /PRNewswire-FirstCall/ - Esprit Financial Group (Esprit) CEO Mr. Garr Winters announced the Company's intent to achieve fully reporting Pink Sheet company status.
Once the Company merges with the fully reporting entity, we will immediately apply for a name change to Good Life China and a new Ticker symbol.
http://biz.yahoo.com/prnews/071203/to476.html?.v=26
Business Plans call for a total of 4,000 franchised stores (an increase of 250%) and a total of 8 logistics centers (up from 3) by the end of 2008. Within Hebei Province alone, the Company estimates market demand for another 6,600 stores.
It is the intention of EFGO management to use the proceeds from these asset dispositions to buy back shares of EFGO and retire them to treasury.
http://goodlifechina.com/townhall/
Net Profit is currently projected to exceed the fiscal plan of $2.29M million USD for the 2007 fiscal year by a significant margin, and increase to over $25 million USD by 2011.
http://www.goodlifechina.com/about.php
As mentioned (probably too briefly), China's Commerce Minister has initiated a policy to help the rural provinces catch up to the gains of the cities on the east coast, Beijing, Shanghai, etc. in a Universal Rural Retailing Network.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24969500
GoodLife wants to be listed in US Stocks Exchange and no one can stop this.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24968525
With 4.9 billion now estimated to be long with 142 Ihubbers and 260 shareholders unaccounted for whats going to happen when the transfer agent realizes that the float is underwater.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24975991
The TV news clip said: Today Goodlife and Esprit had siging ceremony. They are to merge.. After that, the merged company will
endeaver(?) to build grow and expand through China... Going to Nasdaq.
YouTube
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24997298
The PDR Exch
IMO will do just fine. I think some big things are coming our way and soon.
Bill more on EFGO
IMo China is the place to be, it took over a year for EFGO to gain entry, here is some more info for all to read.
Signing ceremony on Hebei TV
Congratulations, Garr.
Welcome Ms. Dongmei Jia.
This was quite an impressive ceremony ... Ms. Dongmei and Mr. Winters sitting at a long table with only a large bouquet of flowers between them (looked like the UN) ... audience of approx 30-40 people with maybe 10 more standing behind them ... signing their respective documents. Segment closed with interior shots of one of the stores.
Friendly warning: Site automatically installs its own video player. Video takes several seconds to load.
I tried to do a few screen caps with my trusty SnagIt, but apparently the vid is DRM protected. If anyone has Replay or other prog, you may be able to capture a few screen shots.
http://mms.hebtv.com/player.jspa?contentid=25731
Posted by: REED198
In reply to: None
Date:11/28/2007 4:13:04 PM
Post #of 76106
Here's what I've translated from the Chinese site Haorizi so far.
Corporate Profiles:
Good day commercial stake was founded in August 1998, has always been committed to the retail chain operations, a positive for the building, sales and logistics network to continuously expand new markets, new ideas and new models. Hebei Province is currently agricultural products, agricultural production materials, and daily consumer goods sales of the three major areas of one of the leading enterprises. Total assets of nearly 150 million yuan, under the logistics companies, trade companies, technology companies and other seven subsidiaries. In Beijing, Shijiazhuang, Cangzhou already completed three to the logistics of the regional distribution center for the shop network, with 1,200 more than franchising and network member shops.
Our mission:
Build service chain stores in China's urban and rural network of purchasing and marketing business platform.
http://www.haorizi.com/jtjj/jtgk.html
Honorary aptitude
Company Honors
China Chain Store and Franchise Association Member units
Chinese enterprises franchise record
ISO9000 international quality system certification enterprise
China Green Food Association executive director will be flat
The Ministry of Commerce, "000 million rural village market project" excellent pilot enterprises
Hebei Province, one of the leading enterprises focus on circulation
Chairman of the Association of Hebei Province chain unit
Hebei Enterprise Information Application Demonstration units
Hebei consumer trust units
Model e-commerce enterprises in Hebei Province
Most market competitiveness of Hebei Enterprises
Credit Qualification
Famous Chinese commercial enterprises
China business services brand-name enterprises
ICBC credit rating of AA Enterprises
Commercial brand-name enterprises in Hebei Province
Commercial services brand-name enterprises in Hebei Province
http://www.haorizi.com/jtjj/ryzz.html
Good day logistics companies
To logistics services for the main business operation, the face of the rapid urban and rural consumer goods manufacturers at the regional level agents and standardization warehousing, distribution and retail channels - building services.
Cangzhou, Shijiazhuang regional logistics center with a total distribution radius of 150 km, Beijing allocated a total distribution logistics center radius of 50 km.
Good day logistics plan in three to five years in the Beijing-Tianjin - Hebei area building 19 logistics centers with a total of approximately 8,000 vendors, 50,000 network provides distribution shops
http://www.haorizi.com/jtjj/wlgs.html
Good day-commerce company
Brand operators to standardize trade and agricultural trade business as a core business, organizations for urban and rural areas, supermarkets, community shops, village shops differentiated commodity business and services.
The whole country for agricultural products, native products, standardization of products for licensing investment. Through B2B trading site and an easy access to good day regional logistics network-store sales.
In three to five years, the agricultural products trade volume reached 1 billion yuan.
http://www.haorizi.com/jtjj/smgs.html
Dynamic Matrix Network Technology (Beijing) Ltd.
2005 operation, three years of experience in retail e-commerce operations, in 2007 and technology universities in Beijing, networks and application software development.
Gigabit fiber access protection with the information flow, professional database management, category analysis, Member services.
Have independent intellectual property products: logistics trading platform, Internet banking payment platform, supply chain SCM system, CRM system, MIS / POS management information systems, sensor networks and monitoring systems.
Major service
Logistics were assigned: to serve suppliers, network shops.
Network Bank to pay: Industrial and Commercial Bank of China, the Agricultural Bank of China Construction Bank and other major banks to become strategic partners, protection payments, secure, reliable and timely settlement.
Joining shops: shops provide category management services to help store management Invoicing, direct profit and loss accounting.
Vendor: online inquiries, marketing, sales promotion, clearing.
http://www.haorizi.com/jtjj/jzdl.html
Posted by: breezin_nyc
In reply to: REED198 who wrote msg# 76060
Date:11/28/2007 4:23:17 PM
Post #of 76425
Here's some perspective on the Universal Rural Retailing Network Project ... Officially Important. EFGO has the political will on its side.
http://boxilai2.mofcom.gov.cn/aarticle/speeches/200605/20060502320015.html
"We will strive for establishing standard farmers’ shops in 50% of the villages and 70% of towns nationwide within 3 years."