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Prediction: there will be theories and rumors strewn with predictions and pathetic excuses. Enjoy!
or does it???????
Who thinks they are losing their lease and who thinks its an investigation?
Reverse mergers. USA TODAY ARTICLE.
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GBDX has no assets IMO they are worthless which is why they keep selling more shares but not diamonds. and anyone who can provide evidence please be my guest since no one has done so yet. .
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NOw to the USA today article which explains why GBDx and SIB have used the reverse merger tool repeatedly and obviously have no reason to stop doing so. vway / wwcd / nevada magic holdings etc etc tons of fake companies who never did anything they promised just like gbdx.
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Reverse MERGERS:
It's easy for anyone to "take their company public," thanks to the fact that there are hundreds of shell companies trading on the Pink Sheets that exist on paper but have no assets.
Consider Wind Farming, created when William Telander bought a Pink Sheets-listed company called Applied Research. Applied had no assets, just a Pink Sheets listing, according to an SEC complaint filed this year. After buying Applied, Telander changed the name to Wind Farming, which allowed him to avoid regulatory scrutiny because he took over another company rather than issuing new stock. Starting as far back as summer 2004, Telander began issuing trumped-up and "false" press releases extolling Applied's success, the SEC complaint says, including fabricated business contracts. Trading volume soared from basically nothing to more than a million shares a day, the SEC says, allowing Telander and a group of partners to make hundreds of thousands selling shares. The attorney representing Wind Farming declined to comment.
USA TODAY- MONEY SECTION::::Direct Cut out Quote:::::
Pink Sheets scams may give investors nightmares
By Matt Krantz, USA TODAY
Old scams never die. They just get new names and snare fresh victims.
That vicious cycle is powering a renaissance in pump-and-dump schemes on the Pink Sheets, the Wild West of Wall Street that is a breeding ground for penny-stock scams.
"If you can't get a full picture of what a company is doing, you should stay away from it," says Cromwell Coulson, CEO of PinkSheets.com.
The scant regulatory oversight that allowed penny-stock scams to rise in the first place is enabling their comeback. And they're surfacing with a vengeance because of technology that makes it easy to reach millions of investors via e-mail and instant messages on cellphones.
A typical pump-and-dump scheme involves somebody making falsely optimistic claims (the pump) via a press release or an e-mail about a shell company whose shares trade for a few cents. Unsuspecting investors buy the "penny stock," causing its price to double, triple or more. Then, scamsters sell shares (the dump) at a profit, leaving other investors holding what turns out to be nearly worthless stock.
Regulators shake their heads at the lengths some go to snare victims. "Some of these bad guys rig the Internet. You can rig the Internet to lure investors into a false sense of security," says Cameron Funkhouser, NASD's senior vice president of market regulation. For instance, some create a fake message board where it appears dozens of investors are gushing about a company's hot prospects.
Technological advances might have made the scams more effective, but many wouldn't work if it weren't for the Pink Sheets. Unlike stock exchanges such as the NYSE, the Pink Sheets system is an informal computerized network that allows brokers to trade stocks and compare quotes. When an investor wants to buy a stock on the Pink Sheets, they contact a broker, who can use a computer to see what the stock is trading for, then contact another broker who facilitates buying and selling in that stock.
Stocks on the Pink Sheets system fall between the cracks of regulation. The NASD regulates brokers, not the stocks they trade. The Securities and Exchange Commission, with few exceptions, regulates only companies with more than $10 million in assets and more than 500 shareholders. Virtually no stocks traded on the Pink Sheets clear that bar.
"As a practical matter, smaller companies tend to fall below the SEC's radar and state regulators'," says John Coffee, securities law professor at Columbia University. "They're too small."
That means a lot of latitude for anyone who wants to abuse the system. Only when a penny-stock scam runs blatantly afoul of the law or violates anti-fraud provisions can the SEC get involved.
The SEC has not released the number of penny-stock scams it has found on the Pink Sheets this year, which makes the boom hard to quantify. But a few of the SEC's recent enforcements show the range of tactics used to lure investors:
Questionable correspondences.
In July, the SEC charged Joshua Yafa, a stock promoter in Florida, with fabricating a fax that appeared to be a private letter from a broker urging a client to buy shares of Pink Sheets-listed stock AVL Global because it was poised to triple in value. The fax was transmitted to thousands in late 2004. The shares jumped 25% on heavy volume after the fax went out, and the SEC's lawsuit alleges that gave Yafa a chance to sell at a $300,000 profit. Yafa's attorney did not return calls for comment.
At the same time, the SEC charged Michael O'Brien Pickens, son of oil tycoon T. Boone Pickens, with using a version of Yafa's tactic to pitch three stocks, two of which traded on the Pink Sheets. The SEC claims the younger Pickens also pocketed $300,000 on the alleged scam. He might never have come to regulators' attention if the fax service he used hadn't unwittingly sent it to one of the SEC's California offices. Pickens' attorney did not return calls for comment.
Multimedia assaults.
In February, the SEC charged Donald Oehmke, Bryan Kos and five partners with putting out false press releases, faxes, e-mails, voice mails, websites and videos to promote two Pink Sheets-listed penny stocks. One claimed to be a Latin American staffing company and the other, a fitness center operator. The SEC said the press releases were false and that the president of the Latin American recruiting firm was in on the scam. The SEC also said the second company didn't own a single fitness center.
Even so, buzz created around the stocks drove them up and allowed the men to profit by more than $27 million, the SEC alleges. Oehmke's attorney declined to comment. Kos' attorney says his client was fooled by the company's management and believed the statements he made about the stock were correct.
Bogus "research reports." Scamsters often enlist the help of firms that create bogus research reports designed to look like they're from legitimate brokerages. Other times, the fraudsters make the "reports" themselves and disguise that key fact from investors. That's what the SEC in September charged two people with doing when they promoted what was described as a website construction company. The SEC accused George Bogle and Peter Emmanuel with putting out a report that appeared to be from an independent stock analyst and that said the stock was "our most aggressive stock buy recommendation." But it was based on false information, the SEC says. Nonetheless, the stock jumped 120%, and the two profited nearly $500,000 by selling the shares amid the good buzz, the SEC says.
Emmanuel thought he was just repeating reliable already public information on the stock, his attorney says. Bogle's attorney didn't return calls.
Anyone who isn't confident promoting a Pink Sheets-listed stock can get help. Take Jonathan Lebed, who was fined $285,000 in 2000 by the SEC for buying stocks mainly listed on the NASD's "Bulletin Board" market, spreading false messages to promote the stocks, then dumping them. Lebed paid the fine without admitting or denying guilt. Now, he concentrates his efforts on promoting Pink Sheets-listed stocks. He discloses on his website that he gets paid by companies, often $25,000 a month, for "investor relations" contracts to promote certain Pink Sheets-listed stocks. He often sends e-mails touting events at the company. Several e-mails sent to Lebed were not answered, and no phone number could be found for him or his offices.
"STOP" NOT WILLING TO PROVIDE INFORMATION. This company has been designated unable/unwilling to provide disclosure and has been censured with a "stop" on its label by pinksheets.com! Buyer beware! This company is considered questionable at best and judging from what we have seen they are proving to lie about things such as sharing news about the takeover (which already happened many months ago and no filings or p.r.), they say they are considering reducing shares (since then they already increased the number of shares ), they say they will exit the markets (sure thing- but as a reverse merger with a reverse split if you view their history).
http://pinksheets.com/content/doc/ps/tier/logo/no_info.gif
Indicates companies that are not able or willing to provide disclosure to the public markets - either to a regulator, an exchange or Pink Sheets. Companies in this category do not make Current Information available via Pink Sheets News Service, or if they do, the available information is older than six months. This category includes defunct companies that have ceased operations as well as 'dark' companies with questionable management and market disclosure practices. Publicly traded companies that are not willing to provide information to investors should be treated with suspicion and their securities should be considered highly risky.
When the R/S hits you will see plenty of shares retired. Or decimated is a better word.
I posted one right but for those of you who missed it.
http://www.globaldiamondex.com/faq.php
"When the audits are complete the company will evaluate the merits of another exchange. "
go to gbdx website and see the statement about no sales are to be done until after the audit. That means they have not been in business since that FAQ was posted 1 year ago. So they are not selling any diamonds. Shut down. Assets and Income = 0 for 1 year. All the shareholders money is gone with the prior managment, board, pr firm, Transfer agent, and anyone else who was paid for the controlling interest of the company in the Takeover in Summer 2007. Sorry folks you have been punk'd by GBDX!
please explain why the company sold out and left the shareholders behind. while your at it explain why the takeover is done and you still held your shares/ why was nothing ever reported about assets to gbdx? okay now send me the link for all your answers... im waiting.....link... cmon now.
show a link proving sib is not. lets see you twist out of that one. by the way sib is not Al Rosa and Sib is not any other company. sib is sib Almaz. okay im waiting . link...
same thing. sib is in the hole even worse than gbdx. prove me any link that shows otherwise - thats a challenge you cant win bucko!
Please refer to the GBDX website where it says they will make no more sales until after the audit. No audit proves they made no more sales.
straight off the corporate website approximately 1 year ago- they admitted they were halting sales until after the audit---therefore no diamonds were sold since then.
http://www.globaldiamondex.com/faq.php
When can I see the financial information?
The company is in the process of hiring an S.E.C. approved audit firm with multilingual capacities. The company only wants to release reviewed or audited financial data. This includes size of the first shipments, sales, profits, share structure. All financial data that would be relevant to normal GAP accounting procedures and audit standards. It will be released to all shareholders at the same time. The companies goal is completely audited and disclosed financial information. As soon as the reviews are complete and signed off the company will release information. When the audits are complete the company will evaluate the merits of another exchange.
Better to flip than to flop.
So sorry to hear about your loss.
So you are saying there will be a run but if we don't see it, its still a run - just someone took a profit so it will actually look like a price drop? How creative of you to explain a price drop that way. Kudos.
This looks like a sucker ploy, based on my close study of this stock since spring 2007. I have seen it before and I am more convinced than ever that this spike will be short lived and followed by never before seen drops. Why did it happen? Some people may have done some heavy buying which without inherent value in the stock will drop like all the past blips on the down slope.
Here is the last PR before code black:
No mention of any revenues or sales having occured. No indicating of sales continuing at that time or in the future. They did say they were planning to reduce the number of shares but that they were not necessarily doing so through a repurchase from the shareholder. Now since they went off and increased the number of shares, that means they are probably going to do a REVERSE SPLIT, that way they can meet their goal of share reduction while they continue selling off more shares to new people. They will be able to exit the public markets, their ultimate goal, by reverse merger.
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September 17, 2007 - 7:30 AM EDT
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Global Diamond Exchange Inc. Changes Ownership
Management for Sib Almaz is pleased to announce that it has completed the purchase of the controlling interest in Global Diamond Exchange Inc. (PINKSHEETS: GBDX). Sib Almaz is now in full control of the company with new management already in place.
New Chief Executive Officer, Mr. Slava Beurikov states that, "Purchasing the controlling interest of Global Diamonds Exchange and installing new management was the first part of the transaction. We are now proceeding with the second step -- to reduce the number of shares, through various means including but not limited to a repurchase of shares. The company's ultimate goal is to eventually exit from the domestic markets. Details will be made public through press releases as they occur and the transaction progresses."
The upcoming fall season -- New staff has been hired and fall orders have already been placed. The company views the New York office as an exciting opportunity to expand its business into New York City and utilize the space that is available. Additionally, Sib Almaz is considering the opportunity to enter the retail side of the business and is looking into acquiring retail space in New York City's Diamond District.
About Global Diamond Exchange:
Global Diamond Exchange originally opened their office on 2 West 46th Street in the heart of the New York's Diamond District. After several years of operation at their New York office the company decided to shut down the operation due to low pricing and soft demand in North America. The company concentrated its efforts on exporting cut diamonds from the Russia Federation and European locations. The new company has reopened its sales offices in the original building ready to take on the increased demand for fine quality diamonds.
Why did the old owners put up the website in the first place and then not follow through. Forget the new owners, noone ever kept it up to begin with
Companies only make extra shares to sell. But maybe all the shares are yours and everyone else has sold back to Sib. Why stop at 800 million- maybe you are the only share holder left! What good does that do if they flood you out with their share increasing structures!
Every time the increase the number of shares its outright stealing from the shareholders. The price of any shares you own is cut in half when the double the number of shares outstanding. Guess what, thats what happened since 1 year ago, they went from 975,000,000 shares to 1,950,000,000 shares from a year ago--- including several share increases under the leadership of SIB! So believe in a buyout if you must, but you just lost half the value of your stock by this share dumping. If you choose to believe that this company is trying to get the share price to drop, then what reason would possibly stop them from fabricating trillions more shares out of thin air -- that Sib owns. That would make current shares that are out there worth virtually zero! So far that is the trend its heading towards
I suggest you relook at the GBDX website, print it, write it down, or save it on your computer, and check back every month. You will see no change in the inventory from today - if it continues the way it has since approximately April 2007 when the inventory was posted. There is your proof that there is not ongoing sales of diamonds. I think maybe because of the name of the company uses words "diamond exchange" some people think that is enough proof and look no further at what GBDX is doing. It is a shame for the people who lost money from when the stock was worth nearly 2 cents July 2007, 5 cents in July 2006, and 15 cents to 25 cents in April-May 2006 when GBDX started from the prior shell. Now its not even a tenth of a penny anymore.
You should look at the DD. GBDX shell has sold over and over and the proof is in the Nevada Secretary of State Articles of Incorporation. However you will be hard pressed to find any audit or proof that GBDX has sold any diamonds, as their own website admits the audit never happened and they wont sell any more diamonds until the audit occurs.
Are you kidding? The "inventory" proves they have not sold because it never changes. Their corporate website never changes either. The "sold" or yet-to-be sold status have been stuck like that for nearly the whole time that appeared on the webpage. The "sold" signs you refer to went up only 2 times a few weeks apart (once in red, once in black letters). Since then not one stone was indicated to "sell" and thats nearly 1 year ago. The funny thing is they announced they sell lots and not individual stones in their p.r. yet what do you know they inventory it as individual stones. Seems they are not getting their story straight. Another snag in their story is they claimed after the first shipment they would audit and publicize the results before making a second sale--- so either they didn't make any more sales, lied about the second shipment sale, or they lied about auditing before doing another one! It wouldnt suprise me if the reason they stopped putting out p.r. was since it was too hard to keep their story straight.
So are you saying they will continue to milk the shareholders until the price flattens to a cap of .5 million before the next reverse merger occurs? In the meantime they do keep selling off more shares hot off the presses. That is possible but I see no reason why they wouldnt do a reverse merger earlier because its always been the same group behind this shell as far as we know (they are very secretive but some of the names can be found), and they stand to make more money with a fresh shell company than a stale one.
Another Share Increase!? INcredible: announced Jan 2 they went from 1.8 billion to 1.95 billion. HellO! Ever since sib took over they are diluting the heck out of this., remember that it was below 1 billion when talks of the buyout began now its about double that! I am letting GBDX do my talking here folks, and this is bad news.
Type: Amendment
Document Number: 20080000919-89 # of Pages: 1
File Date: 01/02/2008 Effective Date: 12/28/2007
Previous Stock Value: Par Value Shares: 1,800,000,000 Value: $ 0.001 No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 1,800,000.00 New Stock Value: Par Value Shares: 1,950,000,000 Value: $ 0.001 No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 1,950,000.00
this company would bring down Leviev's portfolio. based on my readings of his bio. he would not want to buy a middleman company to push russian leftovers when he already operates his own diamond trading company from top to bottom without sharing with middlemen. imo
well if they are smart enough to do that they are smart enough to render all owned shares virtually worthless with the said AS increase since they can make the number of shares so high (with no limit whatsoever) they can buy yours back for 1 cent for a trillion shares assuming they are as smart as you say. So either way you lose- whether they are smart and legit or smart and a con.
My condolences on your loss today (2/15) = 13.3%.
the company is on a selling spree until they need more shares to sell. then they will increase the shares again. and again.
the buyout happened already, Sib bought from Alexy and left willy out in da Kold. Ouch.
Gbdx is making tons of money and using it to pay their ceo and nothing ever will go to the shareholders. look at the pps and you tell me.
I hear a wise analysis: sid will keep selling at this volume until all shares are gone. Next he will issue more shares past the crrent 1.8 billion. Look for 2 to 3 billion more shares by spring. imo
terrible advice to jump onto a sinking ship. much smarter to ride the wave up than down. oh well you probably dont have much left to lose at this point
then you should stop telling everyone or you will ruin your plan. the fewer longs that join you, the better your price according to your logic.
be patient. you are sure to see the teens by December.
If you dont sell now then you will be kicking yourself pretty hard
So you knew the shell when it pretended to sell fish? price was 25 cents http://www.thenewssvc.com/WWCD041006.html
you do realize of course they promised their lucrative EU license they just obtained in the canned fish export business was just approved, pumped on that fact and then shut down to pump on the diamond business. This is a company who promises everything and delivers a name change or a brand new product when ever too much time goes by without delivering on it. They quickly covered up a scam about their nonfunctional fish factory by claiming to only be selling the containers and cans for the fish products and since no one believed that and the stock tanked, the same owners clamied to set up GBDX- not a buy out, it was called a new strategy by the same team. So now you know how they work, they call changing a fake company to a sexy new product that attracts new buyers of their stock who ask no questions a "change in strategy" IMHO
SOUNDS FAMiLIAR????
03/22/06 VWAY International Announces Major Corporate Changes - Name Changed to World Wide Cannery and Distribution
After careful review and consideration, VWAY International (formerly OTC: VWYI) has decided to change its corporate objective. Considering all options and taking into account the current state of the company's affairs, the CEO and Board of Directions decided to move away from being a real estate company and will now seek to be a major participant in the lucrative food manufacturing and distribution sector.
why hold to lose money when you can make money by shorting
Shorters are very lucky right now and very solid footing! No lose frankly! Especially according to the rumors about sec some people are posting, but regardless based on the lack of an actual operating jewelery business according to my local jewlery store who buys their diamonds from NY wholesale suppliers and importers.
Nothing including a PR will help you at this time IMHO-
1.) How have any of the PR helped ever since the company renegged and sold out their newly created shares to the suitor Sib without any consultation with a shareholder (no vote, no receipts, nothing) or explanation of the transaction afterwards! This is a clue of the problem.
2.) Then Sib saying they want to reduce shares but then increasing shares-- what does that tell you? They are making money by selling more shares.
3.) This really was not a buyout, they just changed the boards names.
4.) There is no evidence who GBDX or Sib really are (they could have been partners from the beginning. Why else would Sib get to take over the board and office well before they were considered to have controlling interest.
5.) Also GBDX website since day one has not been updated to explain the background of the Board (it perpetually says that information will be updated soon) which makes it hard to believe that the people involved have not been working together all along.
6.) A reverse split will artificially lower the number of shares. I do see a reasonable likelihood the company will do that after the number of shares they generate bring the price down to the next lower decimal place.
Good luck with your investments fellows.
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Posted by: zahnj
..........We all know the only thing that will give us sustained price appreciation is a solid PR from the company.