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In 2007, naked shorting was still allowed. It is not allowed any longer. Any Market Maker or Brokerage firm that is doing it is breaking the law. The only way around that is the 3 day settlement.
All shares sold Monday are now due to cover.
The only way we as longs can help our cause is to remain long and not panic and take advantage of any dips in the stock.
I did on Friday and will do the same all next week, including Monday.
You can tell by the way the stock trades there are very few shares out there to be had.
The company gives us some news and we are off to the races and those fools who have shorted the stock over the past few days will have to cover forcing us higher.
It is a very simple equation.
It is not rocket science.
STAY LONG
and your current position, will increase.
There is no specualting going on here. The formula for a stock price to go up is buying and no selling. You want your investment or your remaining investment to increase in value you need to STAY LONG.
I am not going anywhere and advise any longs to add to their positions ASAP. It is called supporting your investment.
The company is in the process of closing on three major acquisitions that are all profitable. They can NOT do it without shareholder support. The lower the price goes, the more difficult it will be for them to close on their acqusitions.
Cool!
This is another example of a Buy In.
There has to be folks that are short in this stock.
I don't believe the Buy In has even started.
In this article it says the broker will give the client a few days after the delivery date.
I wonder how many days the other brokers are going to give ST?
There will still be a short covering in some capacity going to happen with GBOED.
When and how much of one when is the question. You can tell by all the bashers that showed up today, someone is trying to drive the stock down.
I will be adding to my position if it dips on Monday.
I added more to my position today.
Your broker has 3 business days from the transaction date to deliver the shares to the other party. If it does not do so, there will be a "Fail to deliver" status on the transaction and your broker will issue a forced buy-in call that you will have to execute so that new shares are bought in the market and deliver to whoever bought your shares (from when you opened your short position originally). This will close out the transaction and might result in profit or loss to you depending on the price at which they were executed. Most brokers will issue the buy-in call and allow you a day or two for you to buy back the shares yourself so you have some control on the price (remember, this might be your whole position or only a portion of it). If you fail to do so though, your broker has the right to close out your short position (fully or partially).
http://webcache.googleusercontent.com/search?q=cache:kYgYVCCh71cJ:tradingdemystified.blogspot.com/2010/03/forced-buy-in-short-position.html+forced+buy+in&cd=5&hl=en&ct=clnk&gl=us
I only have one post remaining for the day.
So, even though it was ST's fubar, the DTCC will be the ones doing the buy in? If they choose to do so?
Is this a situation where the DTCC will intervene?
What other types of situations does the DTCC get involved in?
Is that what your telling us?
Unless it has changed since 2007, DTCC has no authority on a buy in.
DTCC is involved in post-trade processing, which occurs after a trade is completed. DTCC has no regulatory authority over trading activity or to release information related to trading activity. In fact, as we told the WSJ reporters, we have no power to force the closing of an open fail, no matter what the cause, and we do not have the authority to force a buy-in.
http://www.dtcc.com/news/press/releases/2007/wsj_response.php
You got to take advantage of those swings. I did today... :)
I have been doing my part today. No need to try to play hero.
I will add more at the close if it goes lower.
I don't know. However, when a company does an RS, more times than not, they have plan in place. They have already informed us via the last PR of what they want do. I believe they have already done it or getting ready to do it. It is only a matter of time before we here a follow up to their plan.
This little snag with ST really plays into the company's favor because now there is even more eyes watching the stock.
A very good possibility the company got a few calls from some hedge funds that heard about this story.
It is inevitable it has show up a on a few more desks.
It is the profitable companies they will be closing the deals with make this a no brainer even at this level.
We have a big time winner here. We have a company that is about to close on three major acquistions. All three companies they are acquiring are profitable.
They could close on any or all of these comapanies anyd day now, sending the stock higher on its own merit.
We could see news as early as Monday.
Let us hope these bashers are shorting the stock today.
Hold tight longs there is far more to this story and the company than just the Scottrade Fiasco.
I see us closing green. JMO
Holding them tight and just took advantage of the dip. :)
Not flipping it either. From weak hands to stronger hands.
They would cover immediately, then it would go into arbitration.
Lloyds covers claims faster than probably any insurance company in their world. They operate completely different that other insurance companies.
http://www.lloyds.com/The-Market/Operating-at-Lloyds/Claims/Claims-Initiatives
Lloyds of London would insure something like this.. That is what they do. I bet most of those brokerage firms have insurance through them in some capacity. I invest in Lloyds of London. It is a roller coaster ride with them and an extremely high risk investment, but if you can stomach the swings, over 20 years, I am up ten fold with them.....
Still holding and waitin for the dip here. I knew there would eventually be some profit taking..... Oh well. I got the ammo loaded, just need to come a little bit lower for Pappa!
Stay strong longs. I believe we will be rewarded, especially with the new acqusitions in the wings. We will see a company that has in the past bleed red ink and and will start showing positive earnings.
We could still be looking @ a $5.00 stock in the near future.
600,000,000 shares @ .0001 is only $60,000 and that was for investor relations services. It says it right there in print. It was for prior services. Nothing is mentioned about funding in that one.
The company mentions in their press release why they did th R/S.
GeoBio completed its planned 5,500:1 reverse recapitalization of its common stock. GeoBio believes this recapitalization is integral to its strategic growth and financing plans, and confirms that its current issued and outstanding common stock following the recapitalization is 2.4 million shares (2,486,314).
We are going to have to agree to disagree. I am not discrediting you. I will not debate it any longer.
The most important aspect of it all and I have said it over and over and over and over. And I will keep emphasizing it.
It is blatantly obvious someone wants the share price higher. As shareholders let us stay out of the way. If we need to sell some stock, sell it on the offer.....Plain and simple....
I really don't believe much of this has been short covering yet. I still believe that is to come. JMO
That said, I still believe we could see $5.00 one day next week.
I am holding for $20.00
I only have 15 posts a day.
You win.
Have a great day!
SPPH, suppose to have market event news before the open today.
BOSTON, MA--(Marketwire - 12/09/10) - Spencer Pharmaceutical Inc. (Pinksheets:SPPH - News) announced today after the markets closed that it will be announcing a material event before the market opens Friday, December 10, 2010.
http://finance.yahoo.com/news/Spencer-Pharmaceutical-to-iw-1007341788.html?x=0&.v=1
That was their debt. You will notice those conversions took place in 2008. We are now in 2010 and about to go into 2011. None of their debt is part of the acquistions. Read further. Anyway however you slice it, someone wants the share price up. That is really my main argument. Yes, we as shareholders obviously want it to go higher. Many up ten fold. It is called supporting your investment. Nothing wrong with doing that at this level if your up tenfold. If your up $100k, it only makes sense to buy a few shares at this level to support it.
It is not marke manipulation. It is called supporting your investments.
Now back to the funding aspect.
It also makes sense why they did do the reverse split. To get the funding to close on these acquisitions. If they already got the funding, then congrats to them. That means no immediate dilution.
However, the recent PR says differently. The good from it all, the funding, which I believe has not taken place is tied to the share price. That is my belief. Also, more institutions involved, means more support for the stock price.
All good, IMO. They will be acquiring three profitable companies.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
From the filings in the overview section
On July 14, 2010, we entered into an amendment to our Stock Purchase Agreement with Collins Construction, Inc. (“Collins”), dated March 30, 2010, previously amended on June 1, 2010 (the “Collins Stock Purchase Agreement”), for the purchase of 100% of the issued and outstanding capital stock of Collins (the “Amendment”).
The closing was originally scheduled to take place on or before June 1, 2010 (the “Closing Date”), with GeoBio having the right and option to extend the Closing Date until July 1, 2010 (the “Extended Closing Date”), in exchange for an additional, non-refundable down payment (the “Down Payment”) of $50,000. Under the June 1, 2010 amendment, we agreed, in exchange for extending the Closing Date to July 16, 2010, that the Down Payment would be treated as an additional payment of consideration, raising the total purchase price of Collins from (i) $8,000,000 in cash and (ii) a Five (5) year, 8% Subordinated Promissory Note in the amount of $2,500,000 to (i) $8,050,000 in cash and (ii) a Five (5) year, 8% Subordinated Promissory Note in the amount of $2,500,000. Under the July 14, 2010 Amendment, the parties agreed to extend the Closing Date to September 15, 2010.
Collins, based in Colorado, is a civil construction company that primarily constructs sites and platforms for drilling and reclamation of the site locations following the drilling phase, as well as access roads to and from wells, reserve pits and production facility pads, in the Piceance Creek Basin. Its construction services occur primarily during the site construction and site completion or restoration life cycles of natural gas fields and oil wells.
We are also currently seeking to acquire New Mexico based H&M Precision Products, Inc. (“H&M”), as detailed in our Current Reports on Form 8-K filed May 27, 2010 and July 1, 2010. H&M sells proprietary chemical blends used to maintain, clean and improve the operating efficiency of natural gas and oil wells. The purchase price is to be determined by the formula of the product of (i) H&M’s 12-month trailing cumulative, “adjusted” earnings before interest, taxes, depreciation and amortization as of the closing date multiplied by (ii) 2.99, with a maximum Purchase Price of $8,410,000.
Additionally, on July 14, 2010, we announced our entry into a letter of intent to purchase Magna Energy Services (“Magna”), a New Mexico Limited Liability Company (LLC). Magna is also a chemical treatment and services company focused on oil and natural gas production improvement in the San Juan Basin shale play area of New Mexico. The proposed purchase price is $3,200,000. The form and terms of payment will be determined under a definitive stock purchase agreement, which the parties are currently negotiating.
We expect to complete the acquisitions of Collins and H&M during September 2010, but not later than September 15, 2010, and Magna shortly thereafter, all subject to receipt of financing for the purchases.
Go read the filings..
Those shares were basically sold naked. They don't exist. ST will get no shares in exchange. The best way is to offer the company a certain price for the shares that were sold and maybe some warrants. No shares because then ST could turn around and short against those shares to recoupe their loss.
The shares that the company were going to issue pertaining to the funding are obviously already in the market. Unfortunately, the company has not gotten their funding. Therefore, ST offers the company funding at a particular price in exchange for warrants. Not more shares.
The company obviously, hopefully had intentions of doing financing through a secondary or private placement. In doing so, in most cases the folks who do the funding want to make a profit also. Those shares are always tied with a clause. IE, time frame or stock at a certain price.
If ST has approached the company with a scenario, which I am sure they have, then they (ST) needs to get the share price up to take advantage of the plan whatever it may be without causing too much harm to the stock price. Why?
The company has obviously struck some deals with these 3 acquisitions they are about to acquire. One of them is to come up with nearly $20 million to make it happen. For that to happen, the company needs a certain share price.
That is where we come in as shareholders. For those who can read a trading tape, it is obvious someone wants the stock price higher. This not just short covering. How can we help? Stay the hell out of the way on the sell side and keeep buying.
This is not rocket science boys and girls.......Use a little common sense. Many who are still holding should be up ten fold. I am.
If you need to take profit, do it on the ask side as to not kill the price. They, whomever they are are trying to get the price up to do some financing......That is how it works......Let them do their thing.
All, Just My Opinion and my opinion. I am just a shareholder.
We traded less than 1 million shares today and we moved up 50%.
That tells me shares are being held very tightly!
Congrats to all those who held today.
It made the rubberband even tighter.
Due to the low number of shares traded today and the 50% move, tells me there is still plenty of shares that need to be covered.
I was expecting a shake today or an MM attempting short us down, but we didn't see anything but weak hands getting out today.
We will in all likelyhood be all over the board again tomorrow.
As long was we hold, there is no place to go but up! up! up! up!
$2.00 Friday
$3.00 Monday
$4.00 Tuesday
$5.00 Wednesday........
RSI is still in tack. You got to love that aspect. That means this stock has not busted out. I know, I know, I am nuts, but that is what the charts are saying.
We could see $2.00 tomorrow.
Yeeeeeehhhhhhaaaaa!!!!
SELL AT THE ASK FOOLS!!!!!!
Another great day and another day of losers selling on the bid.
Still long and strong and holding all my shares and no one, no one is getting them any time soon.
Folks, I don't understand that you don't see what I see.
We are headed to $20.00!
Who is the idiots hitting the bid? What losers.
SWEEEEEEEEEEEEEEEEEEEETTTTTTTTTT!!!!!!!!!!!!!
Houston, we have lift off! $2.00 as I was saying early today isnot out of the question.
I traded a few shares on it last week. Got it right twice.
Then I tried to do it again Monday before the run. But no dip the third time around. Oh well. It was all profit. Still sitting on 100k from .05
She swings quite a bit. Usually 1.5 range.
Dang, missed that top.... I was going to try to trade a small portion of my position. I always miss the top... Dang!
I get excited, checking balances...damn greed sits in.
I always have a target I set myself in the morning, but, I am always slow to commit......Not disciplined enough.
We be rocking today.
I agree. I hope to have an update soon.
There are no shares to be had folks! NONE, ZERO!
HOLD TIGHT!!!!!!
That is why you are seeing these crazy spreads!
It is beginning to trade like a stock that has only 2.4 million shares in it.
$2.00 is not out of the question today.....
I am not kidding!!!!!!!!!!!
Now, now, he has a legitimate claim. However, he has not had the time to do his DD. Some folks doubted us on PFOB for a long, long time. It is only a matter of time. These shells, every single one of them can be purchased for a price. You just have to dig to find the owners and then arrange something.. This is another great one because there is only one creditor attached to the shell. What is even sweeter, there are only 42 million OS.
Looking for a bounce here soon. Only fools selling here.
Staying strong and I too believe managment will take advantage of all the eyes on the stock and start giving us some PRs.......
Great job buying both! Especially with the 2 voting rights, really 3. Somewhere, I read there was some preferreds attached to the Bs. I have not actually confirmed it.
Congrats!
That is the wise thing to do is to take some money off the table.
I may do the same.
Mr. Gent, I have done extensive DD on WMDA. I have made numerous calls. Please go check out PFOB. I started researching that stock over a year ago when it was in BK. I discovered in my research it was an empty shell that was still part of the estate in the Bankruptcy. That means it was an asset. PFOB was trading under .005 when I ran across it. I had my share of skeptics on that one too. A year later it was purchased out of Bankruptcy.
The stock is currently trading in the .03 range and we are waiting on a RM to take place.
Low and behold in my research on WMDA, we have the same thing here. The remaining asset here is the shell. It too can be taken over or even cleaned up by the owners. They have one obsatcle, the one creditor that has a 1.2 million lawsuit against the public shell. The creditor, if he wishes, can have the shell or he can take some dinero in exchange. As of right now, that creditor will not see a dime of the $1.2 million because all the assets of the company were sold off.
That is where we stand today. Will it happen? I don't have a crystal ball in front of me.
I believe something will take place because we have a shell here with only one creditor attached to it.
Here is another example of a shell that was purchased out of BK.
http://www.secinfo.com/d1ZC93.z3.d.htm
(a) That Seller shall be authorized to sell and Purchaser shall be authorized to purchase the Asset free and clear of all liens, claims and interests under 11 U.S.C. section 363(f);
(a) Competitive Bidding. After the bankruptcy court approves the procedures set forth in this agreement, but no later than seven days prior to the final hearing on the sale of the Asset, interested parties may bid to purchase the Asset by submitting a cashier’s check in an amount equal to or greater than $40,000 ("Competing Bid"), payable to "Sonya L. Salkin, Trustee" and delivered to Patrick Scott, at Scott Malnik & Salkin, LLP, 111 SE 12th Street, Suite B, Fort Lauderdale, FL 33316. Any Competing Bid shall be subject to all the same terms and conditions as this contract.
(b) Auction Sale. If Seller obtains a Competing Bid, then two business days before the final hearing on the sale of the Asset by the bankruptcy court there shall be an auction sale subject to bankruptcy court approval (the "Auction"). The Auction will take place at the office of Sonya L. Salkin, 1776 N. Pine Island Road, #216, Plantation, Florida at 9:00 a.m., and Purchaser, the competing bidders, and anyone else may bid at the Auction. The opening bid at the auction shall be the highest Competing Bid and bidding shall be in increments of $500. If there is competitive bidding, the Asset shall be sold to the highest bidder. In order to qualify to participate in the Auction, all participants must tender a cashier’s check to the trustee prior to the start of bidding. At the conclusion of the Auction, all checks shall be returned to the participants (including the Purchaser’s check or an equal amount), except the check tendered by the successful bidder, which shall be retained by the trustee pursuant to the provisions set forth below. If the successful bidder’s final sale price exceeds $40,000, then the successful bidder must tender a cashier’s check for the difference between the final sale price and $40,000 ("Additional Funds") to the trustee prior to the final hearing. In the event that the successful bidder fails to deliver the Additional Funds prior to final hearing, the next highest bidder will be deemed the successful bidder and request shall be made to continue the hearing to enable the next highest bidder to re-tender its bid. The failure of the successful bidder to tender the Additional Funds shall result in the loss of all funds previously tendered to the trustee as liquidated damages.
I am with yuo on BLOAQ. I done plenty of DD on BLOAQ and have not looked into Bs well enough. I realize they have 2 votes. Let me know if you find anything else out on it. Been in it since .05. It is getting ready to break out and go for IMO. Soemthign is brewing in it. I believe we are going to get a piece of the pie. I am going to hold it through the hearing.
In any other situation you are correct about not having to cover as long as you cover your margin. However, those shares don't exist. They basically sold shares naked.
Due to the fact it just happened to do an R/S, the shares can be easily accounted for in a matter of days. That is why the company issued a new cusip number.
These shares, I believe are attached to the new cusip number. The company could come down hard on Scottrade and file a lawsuit if those shares are not covered ASAP.
It is critical for the company to not let too many days go by before they address the issue. I am sure they are letting these settlement days happen and seeing where the stock settles.
Due to the massive short, it is impossible to not see the stock price north of $2.00 in the next day or two. If not, then we have someone illegaly shorting the stock that someone else is covering.
That can't happen, cause there is no stock to short. Worse case scenario, if this thing doesn't keep going up, I advise everyone to call in their certs. That way the company will know exactly who is holding what and it won't be sitting in any brokers account for them to short against.
I really don't believe the company wanted their stock to tank the way it did. They did the R/S for numerous reasons. One important reason was to get the share price up so they can get new financing to do acquisitions and mergers.
New managment have been involved with AMEX companies. They have done IPOs. I believe their initial intention was to get the stock price up after they did the RS. Not fall back below .01 Under bogus selling. I believe management's background's experience in the industry will be able to detect some nonsense if there is any going on in the stock.
Up to this point, it looks like short covering with some folks taking profit.
We see any downside in the near term, it will be the shorts attempting to shake some weak hands out of their positions so they can cover.
As long as we hold, they will have no other option, but to push the stock price much, much higher. That only happens if we do not sell.
This story is far from over.
I am not going for any shake any time soon. I am here and they can have mine @ $20.00. I know quite a few others who feel the same as I do. Whomever, needs to cover.
They can walk it all the way down to .30. I will be backing up the truck. Not selling on any dip... :)
The company gives us some news and Kaboom!
I have had quite a few folks PM today. Unfortunately, I am not able to respond.
I believe my posts says it all.
WMDA, empty shell and only 42 million OS. It is gaining more and more attention. I believe something is unfolding here. It spiked back in November and the interest has not faded. The charts are beginning to shape up and you can tell someone is accumulating it.
Great day today! Up 50% on only 1.5 million shares.
Don't be juked tomorrow folks! What I mean by that, they could take it in either direction at the open tomorrow morning.
As long as you hold firm, they have no other choice but to take it higher.
We could be all over the board tomorrow.
This all just my opinion and only my opinion.
GLTA!
Welcome aboard. I believe BLOAQ is just getting started. We have until the 15th of Dec for the hearing. It may even get delayed longer. I believe there is a trade there between now and 15th. JMO
Been in it since .05 and everything tells me we could go much higher. JMO
The small transaction on the buy side, I believe is the shorts attempting to cover to not cause the ask to move up too soon on them.
There were over 60 million traded on this one the other day. How many of them are actually still short, that I don't know.
I would say a minimum of at least 20 million are still short on GBOED.
We have traded less than 4 million the past couple of days. A lot of those have yet to cover. I am sure some of them have seeked counsel and have not covered their positions.
Tomorrow is the last day for them to cover their positions or the margin calls will be kicking in.
I beleive this run could last for many days forcing the shorts to cover at a premium.
Good for the longs that hold. I am baffled by the fools have sold already knowing that there is extremely large short position in this stock.
I am still holding my entire position from below .015 and not selling for good couple of weeks. I beleive it is going to take that long for the shorts to cover. I am looking for $20.00
Sweeeeeeeetttt isn't it? Looking for WMDA to do the same soon. An empty shell with only 42 million...... :)
Ditto and they may even attempt to walk it down, but due to the fact there is such a tremendous short position, many wil be waiting to cover themselves. I don't believe it is just ST that is short in the story. It could be MMs and other brokerage firms that let their clients short this thing.
I also believe there is more to this story because of new managment. I believe the RS was done because of them coming on board. They make light of the reason for the RS is to do new acquisitions and mergers. I assure you with what they thought was only going to be 2.8 million OS has now ballooned inot a major short position, only plays into their favor.
Why? Because 2.8 million OS is minor in the grand scheme of things. They probably had all the intentions to take the stock price higher after the RS. JMO Now, the short position will help them getting the stock price well north of $2.00
There is a lot of buying going on today, and that buying has been goig on at the bid. A few huge blocks too. All good for longs and those who are patient. Not even all short squeezes go straight up. They will attempt to try to do the reverse mannage at some point to only cover and push it higher. You have to hold firm on those dips.
BLOAQ, has legs.
SPPH, playing it off the bounce from last week. Now, if you go read the thread, you will go GAWD! I did. However, I pay more attention to way it is trading. It bounced last week an I snagged some down @ .10.
I got out yesterday @ .28 and back in yesterday @ .16.
Supposedly, supposedly there is offer on the table for over $1.00.
Final meeting is to take place tongiht. The suitor has already given the company $500k, no refundable. Some bashers on the thread are saying it is all a scam. Me, I am not vouching for anyone. I am just playing it as a trade. The stock as you can see by the charts, it moves all over the place. It may have a end of the day run.
GBOED, put it on your watchlist. Major FU by one of our Brokerage firms on an RS created what is believed to be a major short position. That is why it has run over the past couple of days. I dug deeper and I believe there is more to the story than just a short squeeze going on. New managment has some serious credentials. Look to jump on if you seeing it move up or if it tanks, it could bounce.
GLTA!