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Haven't heard back from the TA yet re: float/OS I'm resending the fax now.
Hydro
Just faxed the request to the TA. I'll post as soon as I hear back.
Hydro
Good volume early. Looks great!
ARSC is primed for a huge move IMO.
GLTA
Hydro
Looks good. Thanks for the info.
Hydro
ARSC +20% Moving on news
New HOD @ .74 Looking for a breakout above .75
Go baby Go!!!!!!!!!!!!
Hydro
Yesterdays run-up at EOD was fun to watch. Frantic buyers trying to get in before the next days run have to buy at the ask or risk not getting filled. Watching a stock trading like that is a rush.
Hydro
Saw the clip too. Amazing! The move to a hydrogen economy is getting closer all the time.
One of these days the Alt. fuel sector is going to get the attention it deserves.
Holding Tight
Hydro
With the low O/S and the increased revevues this baby (no pun intended) should fly. I'll be watching closely for the next report.
Hydro
Just got in this stock today. This is the first retail stock I've ever bought. My wife has convinced me this could be the next Childrens Place. Me personally I like the chart and the growth potential. I'm going to buy and hold till the next financials are out then reevaluate.
GLTA
Hydro
So, let me get this strait, you think the all the recent PR's were a grand conspiracy to bilk investors???
If you believe that then you must also believe:
Apollo 11 Moon Landings were faked by NASA
September 11 and the Indian Ocean Tsunami were orchestrated by the U. S. government
Barcodes are really intended to Control people and
Microsoft sends messages on Wingdings Fonts.
Hmmm... Scary!!!
According to the WallSteet.net interview ARSC has sales orders in house for more units as we speak.
PRs will follow and the PPS will continue to climb.
I understand that there are a lot of trading practices that can bring the share price down a bit but with all that’s on the table already and with what’s "imminent" to come...
Buy and Hold
Hydro
STRONGUS, I've been one of the unfortunate ones to be holding 200k of EQBM. Do you have any thoughts on where management or lack there of is headed with the company?
fwiw I did get my SOMA shares
Thanks
Hydro
This regulation is long overdue. Every market has suffered from short selling and a lot of perfectly good stocks have gotten such a bad reputation from this type of manipulation that it will take a long time to recover their true value. Time and time again short sellers and naked shorts have literally run stocks into the ground by their tactics of feeding off people’s fears. What a lousy life to lead if you have to theoretically cheat, borrow and steal to make a buck. I'm very glad to see the SEC stepping up and finally doing something, I just hope they didn't leave any room for loopholes.
GLTA Honest investors
Hydro
Does "Big Oil" own a part of Wallstreet.net? They sure are keeping us waiting.
Now, I wonder if Dr. Botte and her staff could just harness the power of my wifes talking, because I'm tellin ya that motor never stops running.
Ammonia-to-Hydrogen Published News Releases
Columbus Business Journal, Others Report on Ohio U-American Hydrogen Ammonia-to-Hydrogen Clean Energy Pact
Business Wire News Releases Published: 08/09/07 09:30 AM EDTReleased By:
American Security Resources Corporation
Rating:
Related Stocks:
ARSC
Newsvine Comment American Security Resources Corp. (ARSC) announced today that several news organizations have reported on the alliance between its subsidiary, American Hydrogen Corp., and Ohio University (www.ohio.edu) to commercialize the patent-pending, zero emission, ammonia-to-hydrogen technology developed by Ohio University’s Dr. Gerardine Botte, associate professor of Chemical and Bio-Molecular Engineering at the Russ College of Engineering and Technology.
Dr. Botte’s method for producing hydrogen from ammonia for a fraction of the current commercial cost of production makes hydrogen competitive with gasoline for transportation and it is a completely clean fuel.
The Columbus Business Journal article is available at: http://www.bizjournals.com/columbus/stories/2007/07/30/daily40.html
WTOL in Toledo carried a story at:
http://www.wtol.com/Global?story.asp?S=6888105
Several fuel cell industry publications carried stories at:
http://www.fuelcelltoday.com
http://www.fuelcellworks.com/Suppage7676.html
A comprehensive story is available on Ohio University’s Outlook site:
http://www.ohio.edu/outlook/06-07/August/787n-067.cfm
In Conde` Nast Portfolio.com:
http://www.portfolio.com/news-markets/local-news/houston/2007/08/ 06/american-security-ohio-university-collaborate-on-fuel-source
On Houston Public Radio:
http://kuhf.convio.net/site/News2?page=NewsArticle&id=21202&news _iv_ctrl=1522
Dayton TV station WDTN:
http://www.wdtn.com/Global/story.asp?S=6888105&nav=menu590_2_2
Houston Business Journal:
http://houston.bizjournals.com/houston/stories/2007/08/06/daily3. html?jst=b_ln_hl
Automotive World:
http://www.automotiveworld.com/AEA/content.asp?contentid=62630
A variety of other sources:
http://www.renewableenergyaccess.com/rea/news/story?id=49577
An article at the Athens Messenger is available at:
http://www.athensmessenger.com/main.asp? SectionID=273&ArticleID=4523
http://home.businesswire.com/portal/site/worldenergysource/ index.jsp?epi-content=GENERIC&newsId=20070806005414&ndmHsc=v2* A1185793200000*B1186447882000*groupByDate*I1041105*J2*N1000934 &newsLang=en&beanID=936930065&viewID=news_view
http://calibre.mworld.com/m/m.w?lp=GetStory&id=264924921
http://www.investor.reuters.com/business/KeyDevelopmentsBusInd .aspx?industry=ELECTR&topiccodes=207&target=%2fbusiness% 2fbussecindustry%2fbussecindfake%2fbusindmajerdev
http://home.businesswire.com/portal/site/opticalkeyhole/index.jsp? epi-content=GENERIC&newsId=20070806005414&ndmHsc=v2*A1185793200000* B1186433689000*DgroupByDate*J2*N1000180&newsLang=en&beanID= 1850500071&viewID=news_view
http://www.rxpgnews.com/research/American-Hydrogen-Corp.-gains- rights-to-Ohio-University-fuel-research_56439.shtml
http://digital50.com/news/items/BW/2001/07/14/20070808005104/ ludlow-energy-initiates-research-coverage-on-american-security- resources-corp-.html
http://www.firstscience.com/home/news/biology/american-hydrogen- corp-gains-rights-to-ohio-university-fuel-research_34793.html
(Due to their lengths, these URLs may need to be copied/pasted into your Internet browser's address field. Remove the extra spaces if they exist.)
Ohio University
Established in 1804, Ohio University is the oldest public institution of higher learning in the State of Ohio and the first in the Northwest Territory. Serving some 20,000 students, Ohio University has been cited for academic quality and value by U.S. News and World Report, America’s 100 Best College Buys, Princeton Review’s Best Colleges, and Peterson’s Guide to Competitive Colleges. The John Templeton Foundation also has recognized Ohio University as one of the top character-building institutions in the country. Ohio University ranks first in the state of Ohio for nationally competitive awards won by its students.
Related links
Russ College of Engineering and Technology: http://www.ohio.edu/engineering/index.cfm
Dr Botte’s faculty home page: http://www.ohio.edu/chemical/people/person.cfm?person=botte
Videos of the technology: http://www.ohio.edu/av/scholars/tech/futurefuel.cfm
American Security Resources Corporation
ARSC is a holding company actively seeking to acquire and develop clean energy companies and technologies. ARSC’s Hydra Fuel Cell subsidiary has developed a high volume, mass producible hydrogen fuel cell. Its American Hydrogen Corp. subsidiary is commercializing an inexpensive method to produce hydrogen from ammonia. ARSC’s newly formed American Wind Power Corp. will be developing residential scale wind turbines based on the patented Noble Wind Turbine design. It also has an LOI to acquire additional wind power capabilities. For more information, please see: www.americansecurityresources.com.
ARSC is a component of the Ludlow Energy SmallCap Index: www.ludlowcapital.com/indices
Safe Harbor Statement
This news release contains certain “forward looking statements” within the meaning of Section 27a of the Securities Act of 1933 and Section 21e of the Securities Exchange Act of 1934. Although the Company believes the expectations reflected in such forward looking statements are reasonable, it can provide no assurance that actual results will meet or exceed such expectations.
Contacts:
American Security Resources Corporation
Frank Neukomm, 713-465-1001
Bob Farr, 713-465-1001
info@amsrcorp.com
Thanks for the info dsp. Great looking chart! Looks like were set up for a nice run next week.
It's great to see ARSC comming off the bottom and getting some play. I'm very encouraged by managements (seemingly)new found interest in keeping investors more involved and up-to-date with all the meaty PR's lately. Frank must have lit a fire under the IR people. LOL
Good time to be vested here.
Hydro
Profit taking now is a risky proposition.
Week hands flipping for two or three cents is crazy. Fridays seem to be the worst days for shake downs.
I'm holding for a ten bagger at least.
GLTA
Hydro
Today I'm officially doubled off my .035 shares!!! Is a triple before the end of the week possible?
Great Day
Hydro
With Friday's wallstreet interview I'm hoping to hear about the progress with UL Cert.
It's Franks third interview with wallstreet.net so if it's true, "the third times a charm" we will all be in for a good one.
I'm not as familiar with the UL certification PPS boost that follows Alt. fuel stocks as my background has been with Pharm stocks. Is UL anything at all like FDA approval on a Pharm/Med stocks?
Hydro
Something that I just don't understand. At this point in the game, ARSC is still getting the penny flipper treatment from investors. Is it just inherent with all OTCBB stocks? If so, how long does ARSC stay on the BB?
Hydro
As products go ARSC has the ultimate in HydraStax. The broad customer base and now the low cost renewable fuel source. Wow!
GLTA
Hydro
HOBIE, Thanks for that post. Outsourcing the membrain has got to be expensive considering the standards involved and the fact that there is little competition to keep the costs competitive. When the Manufacturing facilities are set-up we should see a clear picture on the per unit cost.
Also, If there will be more units sold and shipped in the next 90days that would mean there are units built and in stock/ready for delivery. Do you think if the production demands are high for the Hydra Stack in the near future will ARSC be able to offer thier new hydrogen to customers?
Thanks
Hydro
Track, your right. If there ever was a time for the aformentioned trend to be squashed this is it.
All good things in time.
GLTA
Hydro
StrongUS You hit the nail right on the head.
I've seen the same pattern over and over. Spike followed by a mass exodus.
I do get the feeling though that with the information released lately a new support level can be attained. I'd like to see .10+ over the next couple days and then support at .07+ until certification news.
With cert. news in our pocket, developmental progress PRs will have a much more powerful punch.
GLTA
Hydro
Agreed, its great to think of ARSC as the Alt. fuel sector's 500 pound gorilla.
GLTA
Hydro
I'm not sure what's goin' on with you but I'm thinking about getting on the top of my desk shouting to world how much "I LOVE THIS STOCK!!!"
WEEEEEEEEEEEEEEEE
Just a matter of time before LTC will be approved in the states. When it is, look out! CTUM will need a 1 for 3 to keep up with the demand for shares.
Congrats to all longs
Hydro
Blah...Blah...Blah!!! Whaaaaaa!!!
Sell your shares and leave. Please!!!
Go buy Goldman Sach's stock if you want a sure thing. ARSC is a SPECULATIVE stock with a huge upside at current PPS. If you can't see it then by all means LEAVE! Your constant complaining and whinning is getting on my last nerve.
BYE TWALK
Hello!?! If everything goes as planned, I would say any purchase under $1.00 would be a moneymaker. The current price is a joke, this stock is so completely undervalued its funny. Well... not really funny but you get the idea.
Hard to tell what the market movers will do once this technology takes hold. IMO any serious impact on non-reliance on fossil fuels will get investors scrambling to get in on the next big mover. Kind of reminds me of the dawn of the PC era and the cellular era where anyone with two nickels to rub together invested and played the market.
I don’t know about the rest of you but I'm so damn tired of being screwed buy the oil companies that everything and anything that can get us out from under their grip is where I want to go. ARSC can be one of the leaders in this sector with the patents and the connections they already have. The future looks very good.
GLTA Longs
Hydro
Lowman...I mean Dollarman. Congrats to you and all longs here who have been waiting for this day. When I found out about the dollar news I was sitting on the can checking my stocks on my cell. Since then, containing my excitement as well as my continence has been difficult.
Next Milestone $10 !!!!
GLTA LONGS
Hydro
SEC inquiry link:
http://www.sec.gov/litigation/suspensions/2007/34-55420-o.pdf
GLTA
Hydro
Valid point. Seems to me every stock at some point or another has had to deal with this problem. Let's hope the SEC can clean up trading enough so that promising companies like ARSC wont get run into the basement by these greedy aholes.
Check out this article:
Eat My Shorts!
A Naked Shorting Primer for CEOs.Cale Smith, Senior Associate
Hawk Associates, Inc.
The drama surrounding naked shorting has all the elements of a John Grisham novel. Sly, blue blood institutions conspire with shadowy hedge fund cowboys to unmercifully assault a well-meaning but outgunned CEO in his quest for shareholder value. Offshore accounts and corrupt foreign officials veil the crimes for decades, until finally being thrust into the open through the hyper-caffeinated efforts of hundreds of message board denizens throughout cyberspace.
As with most Grisham novels, however, liberties may have to be taken with the original story to romanticize an otherwise bland topic. After all, it’s hard to make CUSIP numbers and stock certificates sound sexy, but that’s really the heart of the naked shorting controversy.
Due largely to concerns raised by microcap CEOs and their shareholders, naked shorting is a hot topic on message boards. Opinions range widely on how common it is. Those claiming it pervades the markets and foreshadows a systemic meltdown are met with equally fervent arguments calling it an over-hyped, isolated problem that is becoming the grassy knoll conspiracy theory of Wall Street.
Everyone agrees, however, that risks of naked shorting are heightened in the microcap world. The sheer number of small public companies, combined with high volatility and an almost inevitable need for financing, make detecting this hard-to-prove crime that much more difficult for the microcap CEO. Although the odds seem small that a particular company will be victimized, there is no authoritative data indicating how many microcaps are being naked shorted.
Keeping those odds in perspective, then, this primer is for microcap CEOs curious about the naked shorting fuss. On the off chance that a company attracts naked shorts, CEOs should recognize that there is despairingly little that can be done to stop it from occurring. Due to the nature of the crime, legal expertise may not help.
Although there seem to be few bulletproof ways to stop naked shorts, there are a handful of things a proactive CEO can do to reduce the odds of being blindsided by this notorious lot. This primer includes a rough sketch of how naked shorting works and a brief familiarization with the main players. A worst-case scenario of what it means to be targeted by naked shorts is presented, as are suggestions for wary CEOs. The final section contains a list of links with more about the intriguing world of naked shorting.
WHAT IS NAKED SHORTING, AND WHY SHOULD A CEO CARE?
In its simplest terms, naked shorting involves selling shares of stock that don’t exist. It’s performed routinely by market-makers to keep an orderly market, but it is illegal when done to manipulate a company’s stock price. Only when someone intends to drive down the stock price is naked shorting breaking the law. Throughout the rest of this overview, any reference to naked shorting will refer to the illegal variety.
It’s also worth noting the important distinction between shorting and naked shorting. The former is perfectly legal and occurs extensively as either a way for an investor to mitigate risk or as a bet that a company’s share price will decrease (i.e. the short-seller or “short” believes the company is overvalued). Despite the wary glances often cast upon them, shorts are an essential part of a robust market and are often the first to discover financial fraud, as in the case of Enron.
A short will sell borrowed shares as a bet against a company because he believes the price will eventually drop. These borrowed shares come from his broker, which loans the short a certain number of shares (not dollars). As soon as the short receives the borrowed shares in his account, he sells them immediately for cash, which goes to his brokerage account. The short still has that pesky loan to pay back, though, and does so by waiting for the price of the stock to drop. Then he buys some cheaper shares using money from the same pool of cash he received after the original sale, gives the broker his shares back, and keeps whatever cash is left in his account.
Naked shorts, in contrast, are much more manipulative – they sell short shares that don’t exist and then attempt to actively lower the company’s share price through constant short-selling pressure. By using pretend shares, of which there is an unlimited supply, naked shorts can effectively control the share price through this constant pressure, eventually driving the price of a company’s shares into the basement.
Where do these fake shares come from? Naked shorts can create them out of thin air, depending on your point of view, due to either (a) glaring inefficiencies in the back-office world of certificate transfers, or (b) institutionalized fraud on a massive scale. Either way, the effects can be disastrous for companies who are victimized.
WHO IS INVOLVED?
Naked shorting is typically done by hedge funds with arm’s length support from several other parties. The extent of active assistance provided to the fund by these related groups is unclear but hotly debated. One player is the Depository Trust & Clearing Corp. (DTCC), which tracks the stock certificates of traded shares between brokerages. When a fund sells short a share of stock, the fund’s brokerage (another prominent player) has a settlement period of three days to deliver those shares to the buyer’s broker. If the transfer doesn’t occur, the DTCC notifies the fund’s broker that it has “FTD’d” (Failed to Deliver). The DTCC is required by the SEC to enforce delivery of missing shares. While waiting to account for shares, the DTCC may charge the brokerage to borrow similar shares from its own inventory.
The obvious conflict of interest here is that DTCC is policing its own customers - the brokerages. In response to complaints, the SEC required all exchanges to comply with Regulation SHO in January of 2005. Reg SHO establishes several requirements aimed at broker-dealers, but it does not specifically address the manipulative aspects of naked shorting, which fall under existing securities law.
Regulation SHO specifically requires the major exchanges to provide a daily list of Threshold Securities, defined as those that (1) have an aggregate fail to deliver position of over 10,000 shares (2) equal to 0.5% of the issuer’s total shares outstanding for (3) greater than five days. Reg SHO also requires a broker-dealer to close out any “open fail” position once it has been included on an exchange’s Threshold Security list for 13 consecutive days. The ironic effect of this policy, as noted by its detractors, is that it effectively requires shorts to cover (buy back shares) after they’ve had two weeks to drive the price down - meaning they profit from the trade. Needless to say, the effectiveness of such a regulation is often called into question among the cyberspace crowd.
Links to the Threshold Security list for each primary exchange are included at the conclusion of this article. It’s important to remember that seeing a company included on the Threshold Securities list does not mean that company is being naked shorted nor that its share price is artificially depressed. It means shares in that company are failing to deliver on time for what may be legitimate reasons, including simple human error. Even shares bought long could FTD and show up on the Threshold list. A daily presence on the Threshold list for more than 13 days at a time, however, might signal the need for deeper digging.
HOW DOES NAKED SHORTING ACTUALLY WORK?
Based on the accounts of CEOs who believe they have been the target of naked shorts, here is how the worst-case scenario might play out using an ill-intentioned hedge fund (“Fund Malicious”) as an example.
Fund Malicious first identifies a target in the microcap world for naked shorting, most likely an obscure company in the development stage or having otherwise questionable fundamentals. The hedge fund gets that firm listed on a foreign exchange in, say, Berlin, via a request funneled through a complicit broker or official in that country. Malicious then sells short shares it doesn’t have (naked shorts them), waits three days for the DTCC to call and ask for the shares, and then replies either, “I borrowed them on the Berlin exchange, and they’ll take some time to get here,” or “I’m a market-maker for that company’s shares in Berlin and naked shorting rules don’t apply there.” The DTCC then loans the fund shares from its inventory and charges the broker a fee until the stock loan is repaid. Malicious, in the meantime, continues to drive the price of the target’s shares down as long and as aggressively as possible. In the event the fund does cover to pay off the stock loan, it doesn’t take much effort to begin the naked shorting cycle again.
Other theories exist as to how the hedge fund might skirt additional rules. To prevent “piling on,” exchange rules mandate that a stock cannot be shorted on a downtick or decrease in stock price. In other words, Malicious must wait for the stock price to increase briefly before shorting the company. Rather than wait passively for an uptick, though, Fund Malicious can create an uptick in the stock itself by purchasing a few shares through a small offshore account. The hedge fund is then free to short (or naked short) the company with both barrels at home.
Malicious may get additional leverage out of the original naked short by choosing to target an ugly, obscure microcap company. By driving the price down, the fund hopes to scare existing shareholders into selling their shares, too, out of fear that something is going on that they don’t know about (i.e. the fund can “paint the tape”). This, of course, drives the price even lower while further obscuring the role of Fund Malicious.
There is plenty of room for additional mischief in the above scenario. According to the most vocal critics of naked shorting, funds like Malicious have relationships with reporters and/or message board regulars who are compensated to distribute negative news about the company in order to exaggerate the selling. There is also plenty of irony possible, in that a CEO can be her shareholders’ worst enemy by merely uttering the words “naked shorting.” Investors may panic, the stock might dive further and legitimate short-sellers could begin to circle.
KEEPING THINGS IN PERSPECTIVE
Given the mysterious nature of hedge funds and the convoluted nature of this crime, it’s easy to get carried away with paranoid scenarios regarding naked shorting. The skeptics, however, have some unanswered questions of their own. For instance:
• What’s in it for the brokerages? Are they supposed to take all the risk just to get a few more commissions or under-the-table money? Since when have they been that desperate?
• Has anyone ever been found guilty of naked shorting?
• Where is the proof? Are there other pieces of evidence that would suggest a crime is being committed?
• Why aren’t more companies making noise about it? Where are the whistleblowers?
• Wouldn’t the unintentional buyers of naked-shorted shares voice their concerns when they did not receive proxy votes?
• Why is there no outrage from legitimate funds and brokerages?
• How much regulatory burden should the SEC and other publicly traded companies have to bear to resolve the questionable problems of a few companies?
Both camps raise legitimate issues that simply cannot be addressed definitively yet. Reg SHO is not the deterrent the problem seems to demand. There have been numerous calls on the SEC to increase the scope of data provided in the daily Threshold Securities lists, which may help better gauge the seriousness of this problem. Until those issues are resolved, the SEC continues to consider the surveillance and enforcement of trading activity as the primary responsibility of the markets and exchanges. The DTCC considers its role to be reporting the FTDs. Brokerages are doing all they can to win commissions from hedge funds. Detection is difficult, accusations are nearly impossible to prove, and nobody has figured out a foolproof way to stop this crime.
So what’s all that mean for the microcap CEO? When it comes to naked shorting, you are your own best watchdog.
WHAT TO DO IF YOU THINK YOU MAY BE TARGETED
Above all else, be discrete with your public accusations.
A well-intentioned CEO can fulfill his own prophecy by going public with accusations of naked shorting. Investors may flee the stock, further lowering the share price. Meanwhile, other funds may hover, waiting for an uptick to begin shorting your company themselves.
Watch your trading volume.
If you’re seeing four or five times your company’s float trade hands in an otherwise ordinary day, and you have no large share overhangs, pay attention. Start documenting those patterns.
Keep your focus on operations.
Your stock price is not declining exclusively due to naked shorting. Weakness in the business, industry, model, communications or management team exists well before naked shorting begins and allows it to continue. In most cases, the best deterrent for shorts of any kind is consistent execution and credible communications with your shareholders.
Always surprise on the upside.
By maintaining absolute secrecy before good news, you give yourself the best chance to catch the shorts off guard and maybe even squeeze them. Be conscious of unintended signals you may send when in public appearances, conference calls and analyst meetings before a particularly good quarter or other surprising good news. Keep your cards close to your chest and save those glowing press releases for the middle of the trading day.
Maintain a steady stream of news.
By communicating with your investors as often as possible, you remove some of the mystery surrounding a company that a naked shorter typically targets. In the absence of any company news, a continuously dropping stock price is the only communication your investors are hearing. Sales of stock by legitimate owners are sure to follow.
Put floors on your convertibles.
A floorless convertible bond (also known as a “convertible death spiral”) is an open invitation for its owners to short the stock as aggressively as possible. A constant decline in share price means the convertible owners will get more shares because the initial rate of conversion will change. While the original shareholders may very well lose their entire stake in the company, the convertible owners can continue to short the stock until they can effectively cover the original short with new shares created by a new rate. Should those convertibles be held offshore where naked shorting is not illegal, the potential for price depression becomes even greater. Ensuring you have a floor on those converts will prevent the worst case scenario.
Monitor small international exchanges.
If your firm unexpectedly turns up on the Berlin-Bremen stock exchange and you, the CEO, did not request a listing there, that might be a sign of a problem. Request the removal of your company from that exchange immediately, and keep asking until it’s done.
Realize your choice of financing vehicle may attract naked shorting interest.
In addition to floorless convertibles, PIPEs may also attract undue attention from potential funders. Since shares in a PIPE are sold for below market price, the provider could short the stock down to that level with no risk of capital loss on his part. When issuing warrants with the deal, you’re also effectively pushing the price lower through increased dilution of existing shareholders. While it’s true that sometimes beggars can’t be choosers when it comes to raising funds, go into those negotiations with your eyes wide open.
Check the Threshold Security lists.
Links to the lists at each exchange are below. Keep in mind that inclusion on that list does not mean naked shorting or any other improper activity is occurring, just that some shares meet the three requirements mentioned above. An extended presence on the Threshold list, however, in combination with other signals may be an important sign.
Don’t read the message boards.
You’ll drive yourself nuts, waste a ton of time and eventually convince yourself you’re a victim of someone’s ill wishes, naked shorts or otherwise. If you’re that compelled to monitor the boards, ask your IR team to send you weekly summaries of any cogent posts.
Know your IR company.
Consider your choice of an investor relations firm as your first line of defense. Does the company have expertise in dealing with naked shorting? Does the price of your stock mysteriously rise or fall between the time you send your draft press releases and when they hit the wires? Do they have long-term clients willing to vouch for their integrity? And do they have processes in place to handle sensitive information?
Know your transfer agent.
Given that the process of naked shorting begins at the brokerage level, there’s not much your company’s transfer agent can do with regards to those shares. The responsibility for tracking them lies with the brokerage. It is theoretically possible, however, for a corrupt transfer agent to conceal the true float and otherwise manipulate the shares themselves.
Both your transfer agent and IR firm should be able to advise you on the effectiveness of combating naked shorts by changing CUSIP numbers, reverse mergers, and/or reverse splits. Although the long-term effectiveness of these strategies is questionable, it may be useful as part of a larger strategy to deter naked shorting. After changing your company’s CUSIP number, for instance, all existing stock certificates must be exchanged for new ones. All issued and outstanding certificates from old shares will no longer represent an interest in the company until exchanged. This may be more trouble than it’s worth, however. Once the new shares are in circulation, there’s nothing to stop a new round of naked shorting by determined parties. Such tactics may represent a small part of an overall strategy to reduce naked shorting interest in your company.
Questions?
Please feel free to contact Cale Smith at Hawk Associates at either csmith@hawkassociates.com or (305) 451-1888 with any questions or comments.
Links:
The SEC on Key Points About Regulation SHO
DTCC on Naked Short Selling and the Stock Borrow Program
Professor John Finnerty of Fordham University on "Short Selling, Death Spiral Convertibles, and the Profitability of Stock Manipulation."
The CEO of Overstock.com explains naked shorting
An open letter from the CEO of Eagletech to the DTCC
Naked Shorts – What I Have Learned. By Mark Cuban
Motley Fool: The Naked Truth on Illegal Shorting
Motley Fool: Who’s Behind Naked Shorting
The National Coalition Against Naked Shorting
NASDAQ Threshold Securities List (for NASDAQ, OTCBB and OTC issues)
NYSE Threshold Securities List
AMEX Threshold Securities List
Chicago Stock Exchange
ArcaEx
Berlin-Bremen Stock Exchange
To report alleged abusive naked short selling activity: enforcement@sec.gov
For more information on how to submit potential violations of Federal securities laws: http://www.sec.gov/complaint.shtml or by calling 1-800-SEC-0330
GLTA
Hydro
Thankfully!!! It has very little to do ARSC.
What benefit ARSC and many other spec stocks may see from this SEC spamming and naked short selling 'Ol west' roundup is, investors who put money into a spammed stock with lofty promises only to feed the F'n shorts will hopefully look for more solid investments. ARSC imo will benefit from this activity.
I do feel sorry for some of these 35 companies that got caught-up in this web. There will be a lot of frustrated CEOs and BODs in the weeks to come when trading resumes and fallout is felt. It's not necessarily the company director’s fault when a spammer gets hold of a stock and runs it into the ground. Now, you know there are some crooked directors out there and they should be brought to justice but you also know not all of them are. It's a damn shame if you ask me.
GLTA
Hydro
Is anyone here planning on unloading as soon as this is resolved?
GLTA
Hydro
BI You can lead a horse to water...
I'll take twalk's shares and flip'um @ .75 within the next couple weeks.
GLTA
Hydro
Some DD on CTUM
SEC insider trading report
http://www.secform4.com/insider-trading/1015002.htm
02/26/07
http://quotes.barchart.com/texpert.asp?sym=CTUM
Composite Indicator
Trend Spotter TM Buy
Short Term Indicators
7 Day Average Directional Indicator Buy
10 - 8 Day Moving Average Hilo Channel Buy
20 Day Moving Average vs Price Buy
20 - 50 Day MACD Oscillator Buy
20 Day Bollinger Bands Buy
Short Term Indicators Average: 100% - Buy
20-Day Average Volume - 119824
Medium Term Indicators
40 Day Commodity Channel Index Buy
50 Day Moving Average vs Price Buy
20 - 100 Day MACD Oscillator Buy
50 Day Parabolic Time/Price Buy
Medium Term Indicators Average: 100% - Buy
50-Day Average Volume - 76172
Long Term Indicators
60 Day Commodity Channel Index Buy
100 Day Moving Average vs Price Buy
50 - 100 Day MACD Oscillator Buy
Long Term Indicators Average: 100% - Buy
100-Day Average Volume - 67377
Overall Average: 100% - Buy
Price Support Pivot Point Resistance
0.9400 0.7133 0.8933 1.0733
CSMG Technologies, Inc. (OTCBB: CTUM), a technology management company focused on commercializing human live tissue bonding devices, announced earlier today that the company has contracted with Stellartech Research Corporation (www.stellartec.com) for design and manufacturing of the commercial version of the electrocautery generator component of the Live Tissue Connect system.
Donald S. Robbins, president and CEO of CSMG, said, "We are pleased to be working with Stellartech Research Corporation for the design and manufacture of the commercial generator component for Live Tissue Connect, Inc. ("LTC"). Stellartech is recognized throughout the medical device industry as the world leader in therapeutic electrocautery device design and manufacturing. Live Tissue Connect, a subsidiary, is quickly assembling a sound team of experienced medical device professionals to meet our regulatory filing, design and manufacturing needs." LTC's Frank D. D'Amelio commented, "I was very pleased at the high caliber of experienced turn-key design and manufacturing houses that wanted to support our new product development road-map. We selected Stellartech for this project due to their experience with similar machines, their management team and their ability to support our aggressive schedule." CSMG owns the technology and exclusive world rights to the live tissue bonding device through Live Tissue Connect, Inc., a subsidiary corporation formed for the development and exploitation of the platform technology.
LTC expects to complete a generator for duct and vessel sealing, meeting FDA and European CE Mark standards, respectively. They also expect to start filing for approval of this device with regulatory entities during the first quarter of 2007.
About CSMG Technologies' Tissue Welding/Bonding Technology
The LTC tissue bonding / welding device is a platform technology that bonds and reconnects living soft biological tissue through fusion without the use of foreign matter in contrast with conventional wound closing devices such as sutures, staples, sealant, or glues.
Surgeons at 27 Ukraine hospitals and clinics are using the tissue welding/bonding technology in clinical trials. They have completed more than 7,000 human surgeries using more than 80 types of open and laparoscopic surgical procedures, demonstrating the technology is universal in its ability to repair soft biological tissue. These surgeries included lung, neuro-surgery, nasal septum, intestine, stomach, skin, gall bladder, liver, spleen, blood vessels, nerves, alba linea, uterus, bladder, gynecological, fallopian tube, ovary and testicles and dura-matter. Cosmetic surgeries conducted with this technology include breast reduction, breast implants, mastopexy and abdominoplasty. The procedure involves little or no scarring, while restoring the normal function of the body organ or tissue.
The technology was invented and developed at the internationally renowned E.O. Paton Institute of Electric Welding, National Academy of Sciences of Ukraine, Kiev, Ukraine, headed by Professor B.E. Paton. U.S., Australian, Canadian and European Union patents have been issued, and additional U.S. and foreign patents are pending, all owned by LTC.
About CSMG Technologies, Inc. (OTCBB: CTUM)
CSMG Technologies is a technology management company that finances, owns, develops, licenses and markets innovative advanced technologies and business opportunities created in the Ukraine through a network of scientific institutes and private organizations. CSMG is focused on two primary subsidiaries, Live Tissue Connect, Inc. and landfill gas processing.
For further information on CSMG Technologies and its various subsidiaries, please visit our website at www.ctum.com.