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OT: Well, things could be worse. IBZT is now IBZTE as they haven't filed something yet. You can but it @.
0275.
On a Geico type note: Just got a new job at work so I will no longer have to worry about a Reduction in Force that has been hanging over our heads for a year now. Took an early start to the weekend!
It has been my experience that Bloomberg, Yahoo, etc have old information. FWIW
Yes, Franks shares would still be counted in the o/s, but unless he is not holding on to his shares, they wouldn't be part of the actively traded shares (float).
One thing that may have escaped you alls caculations - Frank is suppose to have about 51% of the O/S shares Soooo if they reduce the O/S shares by 2% it would be on half of the 9.5Billion (the float). Then again who knows without anything solid to base the number & kinds of shares out there.
Stu
I may be able to come up $1k or so. Don't know if I'll have it to the broker on time though.
Thanks ct_here, I was asking about that last night. Is anyone on the board familiar with the SF area, and if so, is is possible to now subscribe?
I've been fighting with my computer the last 3 days. Has anyone verified Q is going out on CH250 in S.F.?
This part seemed apprapo(sp?):
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.
Since were on the subject I thought I'd post this again:
By: jgriffin
18 May 2004, 12:12 PM EDT
Msg. 2044 of 2258
Jump to msg. #
a long read but worth it...i got it from rb PCBM board
Wonder if management have read the book on "Cellar Boxing"?
“CELLAR BOXING”
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.
Yup, just wish they'd get those keyboards out. Opps, wrong stock. :(
Irishbull, if that is true than it would go a long way in explaining the share price. They probably have had a lot of new expenses getting ready to broadcast & that is the normal way to raise at least some of the money necessary. It wouldn't really suprise me at all. As long as they begin broadcasting soon all will be well IMHO.
It means they could issue that amount of shares if they deceided that's what they want to do. We really don't know how many have been actually issued. Of those issued (Frank has "a lot/half?) of those that have been issued. The "Float" refers to the number of shares that are actually available to be traded on the open market. Hope that helps.
I believe Irishbull said A/S shares (authorized)as opposed to O/S shares (outstanding), but I'm not sure as the post has been deleted I believe. Could be wrong.
OT: Tried to do read through Sirius 10q & asked on the XM & Sirius board & this is the response I got off XM's board:
xm has two, will have 3 when the first replacement is launched and the first two are co located to save power, until they can be replaced with #4. xm is designed around 2 geostationary, siri is designed around 3 in an eliptical orbit.
the siri people got cute with the soviet orbit thinking it gives them a higher angle and better line of sight. but in reality it gives them more dropouts as they hand off, more risk (xm can survive if it loses one of its sats, siri can't), and most importantly, it makes sirius almost impossible to receive in a fixed location on the ground unless the antenna is mounted outdoors, because the darned satellites keep moving relative to the ground. the xm satellites are significantly more powerful, anyway. as a practical matter, the siri design is also a leading cause of their being so far behind in chipset design and hardware.
& from the Sirius board:
By: doberman007
17 Sep 2004, 01:31 PM EDT
Msg. 81823 of 81826
(This msg. is a reply to 81820 by xgin.)
Jump to msg. #
xgin......
Sirius has 3 birds in the sky
OT: When did Sirius go from 3 to 1 bird in the sky? I ask because I am listening to it on a boombox at work as I type this & just renewed my subscription a few weeks ago. Thought it was XM that was having trouble.
Although the PR is nice I don't see it moving the stock for more then 1/2 hour. It won't create the vol. needed to overcome the manipulators. Just my opinion.
Seeing it listed & actually on the air is needed. Anything else said are just a bunch of words. Cold, but true in a pps sense.
I think you hit the nail on the head dk. Pretty much what I've been thinking.
OT: skunks, Hey Seattle did the best we could to help Boston toward their usual Fall choke. Gave you 2 out of 3 I believe, but I haven't been following baseball much this year. Still I think a sox vs cubs Series would be great. ANYONE CEPT THE YANKEES!
Also thanks for posting that interview with Frank. That was good.
For whatever rteason, it seems like a most excellent time to move the signal out of New Orleans since it will be mostly underwater soon. My Gov. 401k type account is there & they stopped reporting as of yesterday.
That would explain the share price action. Thanks foxy.
You're welcome. Thanks, Stu
OT: Gay Republican group won’t endorse Bush
Backing for constitutional ban on same-sex marriage citedMSNBC staff and news service reports
Updated: 11:25 a.m. ET Sept. 8, 2004NEW YORK - The largest group for gay men and lesbians in the Republican Party has voted overwhelmingly against endorsing President Bush for re-election this November because he favors a constitutional amendment banning same-sex marriage.
advertisement
The National Board of the Log Cabin Republicans voted 22-2 Tuesday night against endorsing President Bush in 2004, the group said in a statement Wednesday. It will instead shift its “financial and political resources to defeating the radical right and supporting inclusive Republican candidates for the U.S. Senate and House of Representatives," Log Cabin Board Chairman William Brownson of Ohio said.
The group in February criticized Bush for supporting the amendment on same-sex marriage. “Writing discrimination into our Constitution violates conservative and Republican principles,” Executive Director Patrick Guerriero said at the time. “This amendment would not strengthen marriage — it would weaken our nation.”
In a statement Wednesday, Guerriero said “Certain moments in history require that a belief in fairness and equality not be sacrificed in the name of partisan politics; this is one of those moments. The national board's vote empowers Log Cabin to maintain its integrity while furthering our goal of building a more inclusive Republican Party.”
The vote by Log Cabin's 25-member national board marks the first time since the organization opened a national office in Washington, D.C., in 1993 that its members have not endorsed a Republican nominee for President.
Log Cabin endorsed Bob Dole in the 1996 presidential election and endorsed George W. Bush in 2000. Exit polls confirmed that about 1 million gays and lesbians voted for Bush in the 2000 election, including nearly 50,000 in Florida alone, Log Cabin said.
Log Cabin last month supported statements by Vice President Dick Cheney, who has a lesbian daughter, that an amendment banning same-sex marriages is unnecessary.
Cheney said he believes individual U.S. states should decide whether to sanction such marriages, but accepted Bush’s decision to pursue a ban as administration policy.
The group has also criticized what it calls “flip-flops” by John Kerry, the Democratic presidential nominee, for statements that he opposes same-sex marriages but also opposes amending the Constitution to ban it.
Log Cabin, however, has supported Republican positions on what it has called “issues that bring us together: lower taxes, strong national defense, personal responsibility and a commitment to individual liberty.”
SShhh. It's still a secret people. Most don't know.
And it's good to see a '6'.
OT: 'dr_silkworth2002', just got back about a half an hour ago. Mentioned your screen name to a newbie (didn't know he was) & he said he had never heard of you. Told him you were before Chapter 1 & you were definitely worth a read! LOL
Hope the PR is tomorrow. Could use the adrenilin rush.
Spring Rain - Here's a link for your story:
http://seattlepi.nwsource.com/
OT: Voom TV (which I have at this moment in time)seems to have added the SciFi channel (#523) to the line up without telling me ahead of time. It's not on their homesite & says "no info" when on the channel, none the less, it's there. FWIW in relationship to QTN.
Me too. I'm a friend of Bill W myself. Wonder if we'll get a PR today. Since I'm off all week, so it would make life a little more interesting.
Be sure & sell your shares so you can snatch defeat from the jaws of victory. JMO What difference does a few more days mean?
I think QTN will be broadcasting in 2 days, however, I don't think RCN will be based on the fact they haven't done any advertising yet. Love to be proved wrong, but I keep remembering that high expectations are another name for pre-resentments. JMO
----------------------------------------------------------------
Opps, I see Ray Clarkston said it much better.
Thanks for the RTQs.
There are authorized shares = means what it says
There are outstanding shares = shares that have been issued out of the authorized shares. Then there is
"the float" which are the outstanding shares that are actually available to trade.
It's said Frank holds about 1/2 the outstanding shares, but know one knows for sure because it doesn't need to be offically reported because this is a "pink".
I'm open to corrections if needed on the above.
Stu
.0058 it is.
Long post, but interesting (to me anyway).
By: jgriffin
18 May 2004, 12:12 PM EDT
Msg. 2044 of 2234
Jump to msg. #
a long read but worth it...i got it from rb PCBM board
Wonder if management have read the book on "Cellar Boxing"?
“CELLAR BOXING”
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.
That's not true nealgalt1. MMs can do it legally & others do it illegally.
From what I've seen from the PRs & some of the comments here, I don't think that will be a problem at all. It looks to be of a higher quallity than I had first expected. I have no intention of watching myself, however, if Mystery Theater 3000 can have fans even the poorer quality shows will probably be considered campy. Especially since Q will have a defactdo monopololy for the first 4 months or so.
Laughing out loud on that one. Really!
Thanks cableguy, I did miss that one. For me, the launch date isn't quite as important as Frank successfully following through with what he promised. I realize there are huge hurdles to get over to starting a new network, but with his track record as reported by people that have been around a while, being able to deliver will surround him with that aura of winning & success that will attract people to his company. That would help the stock price IMO. If he doesn't the reverse will be true.
Thank You so much for your advice. What I asked was WHERE did it come from. Thanks Steel, didn't think it was anything official so thanks for the confirmation.
Stu
I think I missed reading a few messages along the way. Why is there talk that the start may be delayed until OCT.? Not that that will change my investment. BTW, I got the News alert from Google the same way foxy did.
FWIW: Some exposure in the regular media.
http://www.sacbee.com/content/business/story/10526132p-11445188c.html
Q: I'd like to know when it is good to take a chance on investing in a penny stock. I have some disposable income that I'd like to put into a new television network called The Q Television Network (QBID).
Putting $200 to $300 into this for fun might be a gamble, but the upside might be huge if it just goes to about 5 cents or 10 cents a share. What do you think about this gamble?
- Mike, Sacramento
A: You're right on the money when you use the term "gamble" because that's exactly what penny stocks are.
Any investor who buys a penny stock has to be willing to lose all of his money. Putting up a few hundred dollars for the chance of making a small fortune sounds enticing, and for many people it is.
To me, the real danger isn't in losing a few hundred dollars. In fact, I think you can ultimately lose more if the stock moves up.
When that happens, investors often are tempted to buy more of the same stock, greatly increasing their outlay beyond what they had originally intended.
And, if they do make a profit on their first penny stock, they can be tempted to buy other penny stocks, putting themselves at greater risk.
The company you're thinking about investing in is actually called Triangle Multi-Media Inc. and it sells for about a half-cent a share.
The stock has been as high as 2.8 cents a share in the last year, according to pinksheets.com, where you can find more information on the company.
That was very good Big Tips. Thanks for summing up the facts as you know them.
Stu