Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
There is no need to cover since MDNO shares no longer exist. What will happen with the GPGD dividend is another issue yet to be solved.
Will MDNO shares be reconverted into MODR shares at a 1 for 1000 ratio? Will the GPGD shares then be awarded at a ratio of 1/10 share of GPGD for each share of MODR?
How will they unravel the MDNO trades made over the last 6-7 weeks? Some people sold their MDNO shares and proceeded to buy other stocks, ad infinitum...
Will Scottrade file suit against Modern Energy to recover their legal expenses? With the summary judgement in Scottrade's back pocket, I suspect that Scottrade has a strong case.
From yesterday's judgement:
Accordingly, it is hereby ORDERED, ADJUDGED, and DECLARED that:
1, Modern Energy's Amended Motion to Dismiss is DENIED; and
2. Scottrade's Cross Motion for Summary Judgement is granted;
The "Mandatory exchange" of 1 share of Modern Energy common stock for each 1,000 shares of Modern Energy common stock heretofore announced by Defendant Modern Energy Corporation is null, void and of no force and effect.
There is no need to cover since MDNO shares no longer exist. What will happen with the GPGD dividend is another issue yet to be solved.
Will MDNO shares be reconverted into MODR shares at a 1 for 1000 ratio? Will the GPGD shares then be awarded at a ratio of 1/10 share of GPGD for each share of MODR?
How will they unravel the MDNO trades made over the last 6-7 weeks? Some people sold their MDNO shares and proceeded to buy other stocks, ad infinitum...
Will Scottrade file suit against Modern Energy to recover their legal expenses. With the summary judgement in Scottrade's back pocket, I suspect that Scottrade has a strong case.
From yesterday's judgement:
Accordingly, it is hereby ORDERED, ADJUDGED, and DECLARED that:
1, Modern Energy's Amended Motion to Dismiss is DENIED; and
2. Scottrade's Cross Motion for Summary Judgement is granted;
The "Mandatory exchange" of 1 share of Modern Energy common stock for each 1,000 shares of Modern Energy common stock heretofore announced by Defendant Modern Energy Corporation is null, void and of no force and effect.
Judge Shaw declared today that the MODR/MDNO reverse stock split is null and void.
Nice to see some volume and PPS increased.
I don't have the cusip as the shares have yet to appear in either of my Ameritrade accounts.
I don't know if the 1 year restriction begins on the issue date or the date they are deposited in your account. Not much difference, either way.
I agree. I believe that ST will be forced to buy-in. MDNO has all of their requirements in line. They notified the WY SOS's office, filed the required notifications with NASDAQ, had the 65% approval from shareholders, etc, etc.
ST will be much better off by negotiating directly with MDNO for the issuance of the 999,000 shares they are short. ST will not want to buy on the open market as such would be uncontrolled and create too much uncertainty.
I just checked my Ameritrade accounts. I have yet to receive my GPGD shares.
MDNO has been available to trade since day 1. There has never been a restriction.
I'm sure today's trade was a double print. So, actually, only 580 shares were traded.
If the GPGD shares are in your account, you are able to trade 10% of them now. The other 90% are restricted for one year.
OK- I concede whatever you say about GVRP. Can we discuss MDNO?
Once again, there was a vote. Better than 65% voted in favor of the corporate restructuring.
Once again, MDNO did file the required papers with the Wyoming Secretary of State.
Once again, MODR/MDNO did notify the governing bodies as to the details of the corporate restructuring.
Once again, said details were published well in advance of the restructuring.
Once again, a new symbol and cusip # was issued.
Once again, Scottrade didn't adjust their client's account by the 1:1000 ratio.
Scottrade then sold one million shares.
MDNO DID conduct a shareholder vote to authorize the corporate restructuring. Insiders hold more than 65%- thus a vote beyond the 65% was not needed. MDNO DID file the required papers with the WY secretary of state.
IMO, Stottrade is grasping at straws. They are in a very bad place and are looking at a huge financial exposure. If they are forced to buy-in, and based on what I've seen, I believe that this will be case, Scottrade will drive the PPS dramatically higher.
you wrote:
Looks Like Scottrade obtained the TRO and MDNO isn't trading now?
my reply:
MDNO is available to trade. I checked with DOMS (the MM) and they confirmed this. However, given the TRO that Stottrade obtained against the forced buy-ins, traders are waiting for a ruling before buying more shares.
---------------
MDNO DID conduct a shareholder vote to authorize the corporate restructuring. Insiders hold more than 65%- thus a vote beyond the 65% was not needed. MDNO DID file the required papers with the WY secretary of state.
IMO, Stottrade is grasping at straws. They are in a very bad place and are looking at a huge financial exposure. If they are forced to buy-in, and based on what I've seen, I believe that this will be case, Scottrade will drive the PPS dramatically higher.
You wrote:
My opinion has changed in that MDNO did not send a notice to shareholders to vote on a RS, which is really what happened here(65), AND Scottrade rightfully declares the short transaction void because the RS was not properly authorized and should noy have been issued(66).
My reply:
MODR/MDNO had approval from more than 65% of the shareholders; thus giving them the authorization and legal right to conduct the corporate restructuring. (Insiders hold more than 65% of the stock)
In this instance, I believe that the decision is to be made by the US District Court judge; not the SEC.
Scottrade filed a lawsuit. Such is subject to a court decision. Had they filed an appeal with the SEC or NASD or other securities governing body, I might agree with your interpretation.
Further, on the other side of the lawsuit are several heavyweight defendants. The Depository Trust Company, National Securities Clearing Corp., Merrill Lynch, Ridge Clearing and Outsourcing Solutions, Inc., E*Trade Financial Corporation, Penson Financial Services, and MDNO are all obligated and eager to represent their interests. The DTC, Merrill and E-Trade have in-house counsel in addition to local (St.Louis) legal representation.
MDNO responded in yesterday's PR with confirmation that more than 51% of the shareholders approved the corporate restructuring.
Scottrade is in deep here. I believe that the judge will see through their pathetic attempt to evade their short position and he will uphold the defendants' demands for buy-ins.
MDNO is NOT halted. My purchase was filled at $1.10 at 10am.
The temp restraining order was issued on the 29th. Yet, there was a bid and ask and the stock traded on the 29 and 30th.
Modern Energy Corp. Informed That Scottrade Is Short 999,000 Shares of Modern Energy
Monday December 3, 5:56 am ET
Scottrade Obtains Temporary Restraining Order to Delay Forced Buy-Ins
LOS ANGELES, CA--(MARKET WIRE)--Dec 3, 2007 -- Modern Energy Corporation (Other OTC:MDNO.PK - News) announced today that the company received a notice that on Nov. 29, 2007, Scottrade obtained a Temporary Restraining Order (TRO) versus Modern Energy Corp., The Depository Trust Company, National Securities Clearing Corp., Merrill Lynch, Ridge Clearing and Outsourcing Solutions, Inc., E*Trade Financial Corporation, and Penson Financial Services to prevent forced "buy-ins" by those parties to cover Scottrade's short position of 999,000 shares of Modern Energy stock. There is no restriction on trading Modern Energy stock (MDNO) in the market, as the TRO only applies to the securities firms that have been temporarily barred from enforcing these buy-ins.
Scottrade, a discount broker based in West St. Louis County, said in a lawsuit filed in Federal District Court in St. Louis, Missouri, that one of its clients re-entered a "good until cancelled" order to sell one million shares of Modern Energy common stock at $0.01 after the recapitalization had reduced the common shares outstanding to 1.2 Million from the previous 1.2 Billion shares -- without adjusting the price to reflect the reduction in common shares outstanding. Despite proper notices being given to and by NASDAQ, of a change in the symbol from "MODR" to "MDNO," and a change in the CUSIP number, it appears that Scottrade re-entered the order at the wrong price and sold the stock "over a three day period commencing October 23, 2007."
The TRO issued on November 29 also bars the defendants and their agents from carrying out Modern Energy's corporate action (although the reorganization was complete several weeks before the order was issued) or taking any action to force Scottrade to cover its short position. A hearing on the TRO is set for 11 a.m. on Friday, December 7.
Modern Energy notified NASDAQ of the corporate action on October 5, 2007, with an effective date of October 16, 2007, providing more than the NASD-required 10-day notice. On October 18 and 19, 2007 NASDAQ published the terms of the reorganization listing the addition of MDNO and the deletion of MODR at: http://www.otcbb.com/asp/dailylist_detail.asp?d=10/18/2007&mkt_ctg=NON-OTCBB and at http://www.otcbb.com/asp/dailylist_detail.asp?d=10/19/2007&mkt_ctg=NON-OTCBB. These notices clearly stated that MODR was deleted effective 10/19/2007, with the comment: "Reorganization (.001 sh of Modern Energy Corp. New Common Stk & 100,000 restricted shs of Modern Energy Corp. Preferred Stock, Class B)"
Modern Energy issued a press release on October 11, 2007, providing the details of the restructuring along with the record date. More than 51% of shareholders approved of the recapitalization. Additionally, Modern Energy management believes that on the trade date in question, Modern Energy shareholders that held the pre-restructuring Modern Energy (Symbol-MODR) had yet to receive their post-restructuring shares (Symbol-MDNO) in their accounts, so they would not have been available to sell, even if the shareholders desired. Management of Modern Energy expected that MDNO would open near $1.00, reflecting the innovative share restructuring that also created preferred shares that effectively represent warrants to purchase MDNO common shares for $1.00 a share, which, if converted, would double the number of issued common shares to 2,400,000. (Modern Energy closed at $0.001 a share as MODR the day before the new symbol MDNO became effective.) Yet, inexplicably, Scottrade apparently did not inform their client of the change in shares outstanding, despite being informed through NASDAQ notification of the symbol and CUSIP change and the reason for these changes.
As a shareholder in MDNO, I view this news as an opportunity to buy additional shares at tomorrow morning's opening bell; or soon after. From my perspective, Scottrade's open admission of being short 1,000,000 shares is welcome news. I believe that they will be forced to cover and in so doing, the PPS will rise dramatically.
Scottrade's lawsuit can be seen at this link:
http://www.courthousenews.com/2007/11/30/ModernEnergy.pdf
I believe that Scottrade screwed up in the selling of 1,000,000 shares of MODR. They admit that there was a GTC sell order for 1,000,000 MODR shares at $0.01. AFTER MODR created a new ticker symbol/cusip # AND released PR's about the corp. restructuring that resulted in 1 share of MDNO for each 1000 shares of MODR, Scottrade asked the shareholder if he still wanted to sell the 1,000,000 shares for $.01. The seller replied with a "Yes". Scottrade should have adjusted the shareholder's account; converting the 1,000,000 MODR shares into 1,000 MDNO shares. Nevertheless, Scottrade then sold 1,000,000 shares. So, 1,000,000 shares Scottrade didn't have minus the 1,000 shares Scottrade did have has created a 990,000 share short position. I view this as great news for the PPS.
Also, in the lawsuit Scottrade wrote the following about the selling of the 1,000,000 shares:
"While the trades were executed one month ago at a price of $0.01 per share, MDNO is now selling at $0.89 or more per share without any corresponding business justification for the marked jump in price."
I view this position as laughable. On one hand, Scottrade fully admits that there was a conversion of 1000 MODR shares into 1 MDNO share. On the other hand, Scottrade claims that there is no "corresponding business justification for the marked jump in price". If MODR shares were trading as low as $0.001, the restructuring would easily support an MDNO share price of $0.89.
Scottrade has created an exciting investment opportunity. I believe that one way or another, they will be required to resolve the short position. Doing so can only be good news for the PPS.
I just called Ameritrade. They show no bid. They do show an ask of $1.25
As a shareholder in MDNO, I view this news as an opportunity to buy additional shares at tomorrow morning's opening bell; or soon after. From my perspective, Scottrade's open admission of being short 1,000,000 shares is welcome news. I believe that they will be forced to cover and in so doing, the PPS will rise dramatically.
Scottrade's lawsuit can be seen at this link:
http://www.courthousenews.com/2007/11/30/ModernEnergy.pdf
I believe that Scottrade screwed up in the selling of 1,000,000 shares of MODR. They admit that there was a GTC sell order for 1,000,000 MODR shares at $0.01. AFTER MODR created a new ticker symbol/cusip # AND released PR's about the corp. restructuring that resulted in 1 share of MDNO for each 1000 shares of MODR, Scottrade asked the shareholder if he still wanted to sell the 1,000,000 shares for $.01. The seller replied with a "Yes". Scottrade should have adjusted the shareholder's account; converting the 1,000,000 MODR shares into 1,000 MDNO shares. Nevertheless, Scottrade then sold 1,000,000 shares. So, 1,000,000 shares Scottrade didn't have minus the 1,000 shares Scottrade did have has created a 990,000 share short position. I view this as great news for the PPS.
Also, in the lawsuit Scottrade wrote the following about the selling of the 1,000,000 shares:
"While the trades were executed one month ago at a price of $0.01 per share, MDNO is now selling at $0.89 or more per share without any corresponding business justification for the marked jump in price."
I view this position as laughable. On one hand, Scottrade fully admits that there was a conversion of 1000 MODR shares into 1 MDNO share. On the other hand, Scottrade claims that there is no "corresponding business justification for the marked jump in price". If MODR shares were trading as low as $0.001, the restructuring would easily support an MDNO share price of $0.89.
Scottrade has created an exciting investment opportunity. I believe that one way or another, they will be required to resolve the short position. Doing so can only be good news for the PPS.
As a shareholder in MDNO, I view this news as an opportunity to buy additional shares at tomorrow morning's opening bell; or soon after. From my perspective, Scottrade's open admission of being short 1,000,000 shares is welcome news. I believe that they will be forced to cover and in so doing, the PPS will rise dramatically.
Scottrade's lawsuit can be seen at this link:
http://www.courthousenews.com/2007/11/30/ModernEnergy.pdf
I believe that Scottrade screwed up in the selling of 1,000,000 shares of MODR. They admit that there was a GTC sell order for 1,000,000 MODR shares at $0.01. AFTER MODR created a new ticker symbol/cusip # AND released PR's about the corp. restructuring that resulted in 1 share of MDNO for each 1000 shares of MODR, Scottrade asked the shareholder if he still wanted to sell the 1,000,000 shares for $.01. The seller replied with a "Yes". Scottrade should have adjusted the shareholder's account; converting the 1,000,000 MODR shares into 1,000 MDNO shares. Nevertheless, Scottrade then sold 1,000,000 shares. So, 1,000,000 shares Scottrade didn't have minus the 1,000 shares Scottrade did have has created a 990,000 share short position. I view this as great news for the PPS.
Also, in the lawsuit Scottrade wrote the following about the selling of the 1,000,000 shares:
"While the trades were executed one month ago at a price of $0.01 per share, MDNO is now selling at $0.89 or more per share without any corresponding business justification for the marked jump in price."
I view this position as laughable. On one hand, Scottrade fully admits that there was a conversion of 1000 MODR shares into 1 MDNO share. On the other hand, Scottrade claims that there is no "corresponding business justification for the marked jump in price". If MODR shares were trading as low as $0.001, the restructuring would easily support an MDNO share price of $0.89.
Scottrade has created an exciting investment opportunity. I believe that one way or another, they will be required to resolve the short position. Doing so can only be good news for the PPS.