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when you invest in the bottom dwellers of the markets (pinkies) it behooves you to understand how the system works and when notice comes.
By the time you hear of an SEC notice it is too late. Follow the other signs that precede it.
next time you talk to Mosko, ask him about the case filed and why he filed a petition with the courts in August 2010 for a stipulation of discontinuance.
maybe Mosko can tell you what that hack Alan heller has been doing this past year - answer: Nothing but defending complaints to a disciplinary committee.
Do you realize that by failing to serve Sykes Heller significantly jeopardized the case?
I have never laughed so hard.
Why haven't you discussed the illegal shareholder info transferred?
Suspending within a year of being informed is far better than CMKX and others that took YEARS.
Unfortunately you can't protect all. In SPNG, Pike bought massive amounts of shares ignoring the warnings and lost huge. The SEC can not protect against blatant fools. Similarly, the SEC can't pull the trigger too soon or they run the risk of a bad decision hurting real investors of a real company.
In the pinkies you are not talking your most intelligent CEO's and in some cases the SEC issues are based in part with ignorance and not actual fraud. You don't want to kill a company on ignorance.
well said.
Investors are provided guidance about what may be taking place behind the scenes (non-public)based on simple actions taken.
for example, it is policy for the SEC not to publicize an investigation before an enforcement action is taken. But there are plenty of extraneous circumstances that crop up that show such may/most likely is in play. These are the "Red Flags"
In EMLL the DTCC action can not go un-noticed. They make their money clearing and settling trades and thus they are giving away money by doing this. So why? Most likely because the SEC has been in contact with them.
i answered your question. feel free to research it for accuracy.
So tell me why the DTCC took this action.
the last time investors asked me the questions you just asked they found themselves sitting on a trade suspension and dead shares. actually, the last 3 times.
solid no more, EMLL is on its way out. First the DTCC then the SEC.
A scam is a scam regardless of what the company has top say. it is more about facts!
wrong! the DTCC does not have the authority to halt a stock. they have the authority to do exactly what they did here, suspend clearance and settlement thru them.
not only very thin, very much in the sights of the regulators. The fact that the DTCC has basically thrown them out is a sure sign that there is trouble (unregistered shares) in the coffers. Next step, SEC enforcement action.
ZLUS down and out with trade suspension.
The DTCC doesn't have the authority to halt any stock, only the SEC does. As for sorting out the manipulators, that too is teh SEC's job.
The DTCC stopped clearing and settling trades because of the unknown pedigree of what is in their vaults. This typically takes place after the SEC notifies them of a problem involving shares held in Cede and Co. Manipulators work outside of shares held in Cede and Co. as they trade through electronic (book entry) devices.
why it is important to understand the issues with cede and co. is because those shares are the baseline collateral in defining who owns what at a brokerage level. That is now being called into question because the shares in cede and co. are called into question (i.e. unregistered shares).
so how does unregistered shares get entered into Cede and Co.? generally it happens when a company issues shares as unrestricted when they are in fact restricted and those shares enter the market.
that is hysterical. you mean that NITE, the largest MM on the pinkies, isn't in a conspiracy to manipulate a $0.0001 stock? really?
And you disagree?
Scams are exposed to regulators and they step in and shut them down. I think that is their job. Amazingly, investors who ignored the telling signals of the scam are of course the first to cry foul at the regulators. many actually claimed some massive conspiracy when in reality it was nothing more than a simple scam.
I look at Spongetech as a perfect example. So many took what the company said as being gospel and when it was outed as a con, it was of course the regulators fault that so many lost money. those same people never learned as they went on to more and more scams and protected the con's.
It may be just me but has anybody else noticed how swiftly the SEC is stepping in on companies and initiated trade suspensions? It is almost like they were called to the carpet and want to regain their credibility. I can look back on some of the older con/scams and can think of the years that passed before the SEC initiated an action. Now it seems that there is a renewed resilience to step in quickly to prove the doubters wrong.
If this is the reinvigorated SEC, the guys who have lived off early success runs and were long gone by the time the SEC stepped in will have a much harder time with credibility moving forward. I mean, how many times can a “high potential” investment be shut down by the SEC before the predictors are called out for promoting scams?
Does anybody else see things changing in this way? I know that I do not follow many penny stocks but in the few I have, a very (extremely) high percentage of them have befallen to the SEC putting the brakes on the scam quickly. The results have caught many of the promoters off-guard and sitting on some big losses and damaged ego’s.
My crystal ball highlighted this as a scam - what was yours suggesting?
As for the SEC, they certainly have their flaws but taking action like this is that 'step in the right direction' that is expected of them. I think that you will see the SEC stepping in and shutting down these scams sooner than they would have in the past. This is called efficiency and reducing the level of victims. In years past this scam would have gone on for years while the SEC witnessed the fraud and collected the evidence, now they are taking steps in a more immediate fashion. This efficiency will make it that much tougher on traders, flippers, and promoters of junk/scams as the hammer can come swiftly when playing with scams.
In my limited attention to the pinkies over this past year I have now seen/been involved in no less than 4 of these actions.
My personal belief is that the PR's dating as far back as last summer in which Rainbolt was brought in as CEO have been carefully orchestrated to pump and dump this stock. PR's are about cause and reaction and each PR generated volume that allowed for a stable (profitable) sell off of shares.
The Rainbolt deal was not a reverse merger, it was about bringing somebody else in to run a different type business while the current business was in massive legal and financial turmoil. Why would Rainbolt choose ZLUS if he really had something? And the fact that he had a history with Ault in the days that Ault was screwing everybody is a big red flag.
Rainbolt worked with Ault and they created this plan (IMO) Rainbolt probably did not expect all of the public exposure he received nor did he expect to have to deal with an immediate SEC investigation and he bailed on the plan (IMO). I am sure family pressure took it's place as well as being CEO of a con would do wonders for family reputation.
Ault coming back was the only option but a bankrupt Ault in no way could afford the plans he presented to the public. Ault was trying to squeeze out every last penny he could (IMO)and when he saw the end coming he pulled one last rabbit out of his hat.
It's April and Ault is still using weather as the reason that well that was ready to flow in January has not yet produced. I didn't think weather could shut down production for this long.
Nope.
1. There are two people here that confirmed an investigation into this company months ago.
2. Dotting I's and Crossing T's doesn't involve such questions as related to the ownership of 18-wells.
3. And most significantly, the SEC does not suspend trading, and thus significantly impact existing shareholders, for minor issues. by stopping the trade the SEC is disallowing investors access to their money. They don't do that because of minor administrative issues. When CUSIP changes are done some companies will go thru a temporary stop in trading but that stop does not come with a memo from the SEC questioning their business. the stoppage is due to a corporate action.
The SEC release is significant and should be a sticky but for some unknown reason it is not. None the less, this is what the SEC had to say:
The Commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of the above-listed company.
The Commission temporarily suspended trading in the securities of Corestream because of a lack of current and accurate information about the company because it failed to file certain periodic reports with the Commission and because of questions regarding the accuracy and adequacy of publicly disseminated information concerning, among other thing, the acquisition of certain oil wells.
i think what you need is a very details "potential valuation": based on angel dust, wishful thinking, and a whole lot of poor math.
I know of an investigation because as I stated here, I filed a complaint and received a call regarding my complaint filed. based on the questions asked it was clear to me that something was already taking place.
The law is clear that the SEC can not go out and simply provide details or information specific to an investigation but that does not preclude the SEC from talking to the public. They have to follow up on leads somehow right?
The issue is not to call every penny stock a fraud but to look at some vs. others and decide whether it is worthy of more efforts. This one had the smell of fraud that required special attention so I took it. My track record has been extremely successful because I limit my exposure. and by limiting my exposure I can focus on greater DD, provide a more detailed and experienced complaint to the SEC, and have the agency take my reports more seriously than some who simply rant on without supportive documentation.
As for the salt in the would comments - I believe that some here deserve all that they will receive based on the treatment imposed upon me. while the personal attacks and threats were being launched - and accepted by all - I stuck to basically reporting the truth. the fact that you accuse me of insider information only re-affirms the contempt even in light of continued accuracy.
Really, I just posted two links to the most recent publications of similar DTCC actions.
http://www.dtcc.com/legal/imp_notices/nscc/2011.php
Feel free to pick out a success story to this action.
As for the intent of this rule you are wrong. The DTCC clears and settles trades based on the assumption that the underlying paper held in Cede and Co. is good. The DTCC stops clearing and settling trades once they understand that some of the paper they now hold is unregistered. Shorting and naked shorting do not create paper they create fails and the DTCC clearly has no problem accumulating fails.
If you wish to debate this issue further I suggest you stick to fact based responses and not beliefs.
If this is about shorting, and this action stops all trading to speak of, how will the MOASS take place? I am also interested in how the shorts are caught and found and if you have an example to show to support this.
I think you and the others here have totally misunderstood what has happened. this is almost worse that a SEC trade suspension as this event lasts far longer than "10-days and to the greys".
The DTCC has now told the member firms that they will no longer clear and settle trades because of uncertainty of the authenticity of what is being traded. This comes after an accusation of 'unregistered shares" entering the markets. Most BD's will now prohibit their clients from buying this stock because the firm would be liable if no delivery was made. holders are stuck holding because the buying pool dries up.
I would suggest that if anyone wants to understand how dire this will get that you start researching the trading patterns of those that have fallen against similar actions.
I would give out some examples for you to research but the post would be removed for doing so.
Check out these companies:
http://www.dtcc.com/downloads/legal/imp_notices/2011/nscc/a7182.pdf
http://www.dtcc.com/downloads/legal/imp_notices/2011/nscc/a7171.pdf
My bet is that Rainbolt bolted because the SEC was in his knickers.
As I reported here long ago - the SEC was investigating ZLUS. Before the SEC suspends trading in a company, they are in communication with that company seeking answers to satisfy their concerns. rainbolt would have been the one fielding those calls.
I suspect, and that is all we can do at this time, is that the SEC was questioning the past announcements made and could not satisfy that they were real. When Ault got greedy and announced this 18-well plan they could take no more and came down hard on the scam.
As far as transparency goes, Rainbolt promised up to date filings by end of January. He likewise promised disclosure of the divestment of the business and the settlement to the lawsuit. Then there was this thing about percent ownership in the wells. of course, none was delivered.
Ault takes over again and besides the trading patterns around bogus PR's, Ault too has delivered nothing of substance. One set of unaudited financials with promises missed on the next segment. No disclosure of divestment, financing, etc...
for people that care about how this all works and researches it, it is pretty clear how long Ault and Rainbolt knew this day was coming.
so...did ault clean up his act like so many here claimed or was he the same crook I presented him to be?
ask the crooks because they have to be up to date on their filings for a 15c-211 and i think i heard Ault claim end of 2011 for that to happen.
Really? The DTCC stopped clearing right? Go ahead and try and trade this pig.
as for the stocks I listed. common denominator is a very well know promoter of fraudulent stocks hyping baseless valuations.
The news has arrived. DOA with a block on clearance. seems like a bad week all around huh.
Stock is dead. DTCC will no longer clear trades. take a look at ZICX (f/k/a BEDA) as an example of what happens hereafter.
EMLL is just another pump promotion.
examples? Grey listed companies include saei, spng, and now zlus for example. I would hate to be a shareholder of any of these.
Once on the grey's, companies must come back to fully reporting to get off. few if any ever do.
So where do they produce their products?
The biggest news is a 10-day trade suspension and yet that is not a sticky. why not?
Will you likewise remove yourself as an Admin of this board considering you demanded my removal for the opinions (and reality) I held?
How many current admin are guilty of negligent promotion including the Mod?
As for what happens in a scam, some understand more than others.
Penny out of posts for day: But, since certain individuals made demands of my removal from admin for speaking the truth i see no cause for their losses. i find some as orchestrator's of others losses.
Did I tell you I have addressed/exposed 4 trade suspensions in the last 12 months and never been wrong to date? I do my homework and take the berating of cowards for doing it. I am also very SELECTIVE.
Those with a financial stake are rarely honest because honesty is a conflict of interest.
Lesson 1. suspended stocks have very little afterlife but if there is one it is at the beginning not the end.
Lesson 2. Never trust what you see for DD on a message board. look at all sides and research for your own opinions. NOBODY cares whether you personally win or lose.
Lesson 3. companies like ZLUS whose executives constantly get themselves sued and have shown no investor profits are NEVER to be trusted so, before you invest in a penny investigate the players and player histories (including message board presenters)
It is dead forever IMO. The SEC acted this way on an intention to file charges. It will trade on the grey's for an unknown amount of time (SPNG suspension in October 2009 and charges in April 2010). during this phase volume deteriorates and PPS falls. No market makers.
Good luck - shareholders hold dead money.
I suggest you look at other companies that have gone thru this. None survive because this is not some test but first signs of a known issue. the SEC does not hand these out without cause. It takes them forever to make this move because they have to have their ducks in a row to do so.
try researching such things as trade reporting rules, routed trades, and riskless principle trades. How many investors really have a brokerage account with NITE or any of the other primary market makers? If you buy thru NITE you also sell thru NITE as a ROUTED trade.
absolutely useless data. to understand it you need o research how a trade is reported. all long shareholders who have their trades routed thru a market maker will be added into this short volume (i.e. most of this volume is really a long sale)
huh? ZLUS never provided any evidence it was anything more than a scam. They threw the word Oil out after failing at everything else and suddenly they had a potential valuation of....Penny CEO's lie and penny CEO's use the latest craze to con. Oil and gold are great con plays right now.