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Tom
It is a bit scarry to learn how bad the situation is with FTDs.
Worst part is the SEC knows about the problem, they are trying to cover it up, and they know the potential fallout from this could be catastrophic.
If us locusts stick together and stick to our plan, then we can start fixing this problem one stock at a time...to our great benefit.
Michael
found this on the SEC website, and didn't know if anybody else has seen it. Breif description of Naked Short selling, and regulation about covering.
D. Are short sales legal?
Although the vast majority of short sales are legal, abusive short sale practices are illegal. For example, it is prohibited for any person to engage in a series of transactions in order to create actual or apparent active trading in a security or to depress the price of a security for the purpose of inducing the purchase or sale of the security by others. Thus, short sales effected to manipulate the price of a stock are prohibited.
II. "Naked" Short Sales
In a "naked" short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard three-day settlement period. 3 As a result, the seller fails to deliver securities to the buyer when delivery is due (known as a "failure to deliver" or "fail").
Failures to deliver may result from either a short or a long sale. There may be legitimate reasons for a failure to deliver. For example, human or mechanical errors or processing delays can result from transferring securities in physical certificate rather than book-entry form, thus causing a failure to deliver on a long sale within the normal three-day settlement period. A fail may also result from naked short selling. For example, market makers who sell short thinly traded, illiquid stock in response to customer demand may encounter difficulty in obtaining securities when the time for delivery arrives.
Naked short selling is not necessarily a violation of the federal securities laws or the Commission's rules. Indeed, in certain circumstances, naked short selling contributes to market liquidity. For example, broker-dealers that make a market in a security4 generally stand ready to buy and sell the security on a regular and continuous basis at a publicly quoted price, even when there are no other buyers or sellers. Thus, market makers must sell a security to a buyer even when there are temporary shortages of that security available in the market. This may occur, for example, if there is a sudden surge in buying interest in that security, or if few investors are selling the security at that time. Because it may take a market maker considerable time to purchase or arrange to borrow the security, a market maker engaged in bona fide market making, particularly in a fast-moving market, may need to sell the security short without having arranged to borrow shares. This is especially true for market makers in thinly traded, illiquid stocks such as securities quoted on the OTC Bulletin Board,5 as there may be few shares available to purchase or borrow at a given time.
III. Regulation SHO
Compliance with Regulation SHO began on January 3, 2005. Regulation SHO was adopted to update short sale regulation in light of numerous market developments since short sale regulation was first adopted in 1938. Some of the goals of Regulation SHO include:
Establishing uniform "locate" and "close-out" requirements in order to address problems associated with failures to deliver, including potentially abusive "naked" short selling.
Locate Requirement: Regulation SHO requires a broker-dealer to have reasonable grounds to believe that the security can be borrowed so that it can be delivered on the date delivery is due before effecting a short sale order in any equity security.6 This "locate" must be made and documented prior to effecting the short sale.
"Close-out" Requirement: Regulation SHO imposes additional delivery requirements on broker-dealers for securities in which there are a relatively substantial number of extended delivery failures at a registered clearing agency7 ("threshold securities"). For instance, with limited exception, Regulation SHO requires brokers and dealers that are participants of a registered clearing agency8 to take action to "close-out" failure-to-deliver positions ("open fails") in threshold securities that have persisted for 13 consecutive settlement days.9 Closing out requires the broker or dealer to purchase securities of like kind and quantity. Until the position is closed out, the broker or dealer and any broker or dealer for which it clears transactions (for example, an introducing broker)10 may not effect further short sales in that threshold security without borrowing or entering into a bona fide agreement to borrow the security (known as the "pre-borrowing" requirement).
Temporarily suspending Commission and SRO11 short sale price tests12 in a group of securities to evaluate the overall effectiveness and necessity of such restrictions. The Commission will study the impact of relaxing the price tests for a period of one year.13
Creating uniform order marking requirements for sales of all equity securities. This means that orders you place with your broker-dealer must be marked "long," "short," or "short exempt."14
I am going to do as much DD I can this weekend on TRNP.
Let's see if it is really worth it next week.
Just signed up for Yahoo IM.
I am in it to win it!
Penny TA likes TRNP for next week.
Old EMGC now TRNP 27 mil 0S more info to come...TRNP owns 75% on NXNO!!
Outstanding shares 27 million
Float approx 2.8 million per yahoo
DO THE LOCUST LIKE???
GLTTL
Klon
I just got in GLXI today.
I own 5000 shares.
Don't have definite exit strategy yet. I am waiting to see how this develops.
Hope so, I would love it!!!
Anybody think this could go the way of URME???
They only have 28M o/s and started trading on OTC last Feb.
Is it the one about the def 14A?
I'm in at .14!!!! That's right fellas, I smaked it alright!!!
I just smaked it for 20k shares and it feels great!!!!!
Hello Locust
I took the last two days off. Needed a break after getting hammered by SOLM. Yes, I am sorry to say, I was a victim of the panic sell-off. I took a substantial hit and still bleeding purfusely. I have not even been reading the boards I was so discouraged.
Luckily I am holding long on FCCN, and with what little I took out of SOLM, I will be adding to that as well as picking up some GLXI. Hopefully tomorrow on any dips.
I will be checking for any significant pre-market news on FCCN.
Since it looks like it doesn't take much buying pressur on GLXI to get it moving, I might be able to do something about that also.
NITE all, and GLTTL
BTW, props to ajc and psy for getting this up and running so fast. Great job!!
I'll see what I can do about that wall tomorrow.
Hailing from the Mid-West (Missouri, or the "Mighty Mo"), I am very familiar with the sounds of the locust. I used to love listening to them buzzz up in the trees, and you better believe I will be listening to your buzzzing about the long play stocks on this board!!!!
Your rules are just right for me, as I hate the bashers with a passion, even though I have not been so vocal about it elsewhere. I found that not engaging them is working well for me.
I am relatively novice investor, so I will probably learn much more from you than you do from me. But, I will do my best to bring valuable DD to share with the other Locust here.
Thanks for the invite!
Penny, SOLM got devastated with news after hours today. Watch for it to bottom out, and it could be good for a bounce. It's not dead yet, but should take a good beating for a while. Just wanted to give you a heads up for a potential future penny play.
Pulling some fresh powder out of the gun barrels tomorrow, and I will look to add at the right times. FCCN is still the best bargain buy around at these prices, IMO.
You can also add me to the list of those being considered for the Locust board. Sorry had to post it public, but I am a freebie for now.
I will also be holding for the long term on this one. Who could miss the opportunity to see a 20 cent stock reach the multi-dollar range within one years time?
8K out stating we lost.
Wording from file on Edgar:
Item 7.01 Regulation FD Disclosure
On February 13, 2007, the Administrative Law Judge who conducted the hearing in connection with Solomon Technologies, Inc.’s request to the U.S. International Trade Commission for an exclusion order against Toyota Motor Corporation and several affiliates issued a final initial determination in favor of Toyota. In the order, the Administrative Law Judge determined that the hybrid transmission drive in the Toyota Prius and Highlander vehicles did not infringe Claim 7 in Solomon’s U.S. Patent No. 5,067,932 and that Solomon had not satisfied certain other legal requirements that would support an exclusion order against Toyota.
They are out of the office b/c they are at the bar having a celebratory drunk!!!!
The "shake" appears to be on. Great time to buy IMO.
Thanks for the chart BB, I think Rich is right.
Did the MACD actually cross today, or is it still too close to call?
Your all welcome.
I am hoping for the trifecta this week:
1)Def 14A early Mon or Tues.
2)Shareholder conference later in the week.
3)Lifting of online trading restrictions across the board.
Combine all that with the begining of NASCAR, the Daytona 500, and Two Guys Garage promo. Can you say...TOOOOOO DAAAAAA MMMOOOOOOOOOOOOONNNNNN!!!!!!
OK, I know it has been almost a week since I posted that I was going to get in touch with someone at Scottrade to ask about the trading restrictions. Well, they actually just sent me a letter that showed up in my post mail today. I just thought that was kind of wierd since they are an "online" broker...I figured email would be the prefered method of correspondance. Maybe they are just trying to make it sound really offical.
Anyway, to summarize, it says that Scottrade's Risk Management department regularly reviews stocks for "unusual" activity, and that when they see something, they reserve the right to "temporarily" restrict the online trading. This is basically the same thing they told me in the first email they sent. I am a little disapointed b/c I specifically asked them what the exact "unusual" activity was that caused this action.
The best part of the letter is that it states, "This review and restriction should not be construed as a reflection on the merits of the security involved (FCCN) or the people efecting transactions in the security. Please be advised that we anticipate the restriction being lifted the week of February 12."
WELL NOW, THAT IS GOOD NEWS ISN'T IT!!!! MAYBE WE WILL SEE A SIGNIFICANT INCREASE IN VOLUME THIS WEEK ALSO!!
What time, and will it be on tv somewhere?
Scottie says .026
That is some great advice. I have actually been doing just that.
However, I do think it is a good idea to average down if you actually believe that the company can sustain as a longer term investment(I have had success with others in this way), and that is what I was attempting to get at with my question.
If this is a real co. with real profit potential, and not just a P&D, then it would be worth averaging down for the long term investment. IMO of course.
Thanks again for your input.
Monrnin'...As much as I would love to see 700+ today, it would take one hell of a PR, burrying the hatchet with GGI, and some Aero financials. I am not going to expect it to be all that. Not in one day anyway:)
Sorry, didn't see it post before
Well, I have been talking this up around the office, but all my co-workers really suck. There is only one other guy who has any experience investing in stocks, but he won't touch "pennies" w/ a 10 foot pole.
Funny thing is that there used to be a guy working in my group who got rich, retired early, and everybody thinks that he really sucks...he invested in a penny play!!!! LOLOLOL!!!
GO FCCN/AERO!
Some charting on FCCN board shows very interesting indicators.
http://www.investorshub.com/boards/read_msg.asp?message_id=16878911
Your thoughts?
What the hell is the drinker talking about????
HOLY S@&T...I just realized it is less than a week from the due date. For some reason, I thought it was next Thurs.
Well, this could get real interesting - real fast!
Does anybody here think this thing has another run in it?
I am in too high and thinking about averaging down, but I still can't tell if this is a real company or a P&D.
So, are the MM's finished playing thier games with this one...finally!?
Nice analogy!!!
Lets hope that one day in the distant future, when all us longs are still holding a signifcant position of our original FCCN shares of AERO, that we will be in the same position as those early investors of Microsoft (who were not laughing at Bill like IBM did)
I am sure those investors have had a chuckle or two when they looked at their phat bank accounts!
Found this on the NASCAR homepage on ESPN. com
http://sports.espn.go.com/espn/news/story?id=2749584#
Check out what ranks #4 on Forbes' list!!!
Oh yeah, we will be getting a big piece of that action this year.
GO FCCN/AERO!!!!!!!
Has anyone else had trouble pulling up FCCN filings on the SEC Edgar database?
I finally figured out that if you type in the company name in the search criteria, instead of the ticker symbol, it will pull them up.
Here is the link FYI: http://www.sec.gov/cgi-bin/browse-edgar?company=franchise+Capital+Corp&CIK=&filenum=&Sta...
Until now, I have had to go through the FCCN's website, and click on the link for new filings.
And after looking at the 8K, that is not all that has been going on lately. Check this out:
http://www.sec.gov/Archives/edgar/data/1240722/000114420407005276/v064463_8k.htm
Anybody got any ideas about what's going on?
After hours trading not looking too good for us.