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RedSky,
In one of your posts, you stated that the American Geologist who did the survey for Greystar was going to be the chosen one for MGMX. Am I remembering this correctly?
Greystar Resources Ltd and Cambridge Mineral Resources are basically neighbors to MGMX. Their PPS are about $10/s.
And the address has changed. Is this a new location that you recall venturing there on your trips?
What does your source in Columbia tell you about the mines operating...do they see more people working, location of new office, equipment or trucks moving in and out???
Thanks
What's your email addy? I will send you my share count.
Naked Horror
Liz Moyer, 08.25.06, 5:25 PM ET
Suspicious trading last year in shares of Global Links, a small Nevada real estate holding company, was far more intense than previously thought.
New data from the U.S. Securities and Exchange Commission reveals trade settlement fails in early February 2005 that were 27 times greater than the total number of shares Global Links (other-otc: GLLC - news - people ) had issued at the time. The data show suspicious trading in Global Links far earlier and to a far larger degree than any previously released by the SEC.
The data was obtained this week by a Freedom of Information Act request from David Patch, an outspoken critic of the SEC and an active participant in the drive for reform of market regulations and enforcement.
It was posted on anti-naked-short-selling blogs Thursday night, igniting a fresh round of calls for a special prosecutor to investigate claims of market manipulation by aggressive short-sellers. This comes as the SEC is working to close loopholes and otherwise strengthen its trading regulations.
An SEC spokesman had no comment on the data, which showed Global Links trade fails totaling 27.3 million shares on Feb. 4, coinciding with the first day that Feb. 1 trades should have settled. They were 23 million the next day and tapered off from there.
Data released to Patch earlier this month had shown trade fails of 10 million shares starting in mid-April, a time when 4 million shares of Global Links were issued and outstanding.
Questionable trading activity was not lost on Global Links Chief Executive Frank Dobrucki, who told shareholders in March 2005 that he believed there was fraud occurring. Without the reverse split and the events that came after it, "we may never have discovered how blatantly our stock was being abused."
Global Links owns a development in Arizona and office property in Las Vegas. Dobrucki says, "We have millions of dollars in real estate assets. We are not going to fall apart."
The broader issue is so-called naked short-selling. Normally, a trader looking to sell a stock short must borrow or at least identify a share to borrow before making the sale trade. But naked short-sellers don't borrow the shares, and manipulative naked short-sellers use the tactic to drive a stock into the ground.
Stock transactions are supposed to settle within three days, and if the shares fail to be delivered to the buyer, that failure is reported to the SEC and to the national stock markets, which keep track of repeated trade failures. Large and persistent failed trades in a stock can be a sign that something is amiss.
The Global Links matter came up briefly in a Senate Banking Committee hearing in March 2005, when Sen. Robert Bennett, R-Utah, told then SEC Chairman William Donaldson that his constituents, among them Internet retailer Overstock.com (nasdaq: OSTK - news - people ), had complained that a new regulation designed to curb abusive trading was not working.
That regulation, called Reg SHO, went into effect in January 2005 and was supposed to impose strict close-out requirements on stocks that showed consistent and frequent settlement failures over a specific period of time. But even the SEC has admitted that companies have remained on the SHO list for far longer than the rule was intended, an indication it has been less than effective.
Current SEC Chairman Christopher Cox acknowledged this practice in July when he put out for comment proposed amendments to Reg SHO. Large and persistent failures can be "indicative of manipulative short-selling," the SEC said. Well more than 120 public comment letters are now posted on the SEC Web site.
Reformers like Patch have demanded that regulators and market operators do their jobs of enforcing existing rules and have expressed exasperation about seemingly lax oversight. They point to a July enforcement action by the New York Stock Exchange's regulation division against four brokers, including Daiwa Securities, Goldman Sachs (nyse: GS - news - people ), Citigroup (nyse: C - news - people ) and Credit Suisse, for failing to have adequate Reg SHO Compliance in place.
"Regulation SHO is an important federal securities rule meant to protect the market and investors from short-sale abuses," said Susan L. Merrill, chief of enforcement, NYSE Regulation in a press release. "As these cases demonstrate, firms that fail to enact effective procedures and systems by the compliance date threaten to undermine the important policies served by this rule."
Despite the tough talk, the collective fines imposed were $1.25 million.
Other "large and persistent" failures have been reported in shares of Overstock.com, Netflix (nasdaq: NFLX - news - people ), Martha Stewart Omnimedia (nyse: MSO - news - people ) and Novastar Financial (nyse: NFI - news - people ), all of which have been on Reg SHO lists practically since the beginning. Global Links calculates that it's been on the list for 556 days as of the end of last week.
Global Links was caught off guard by the events that transpired in February 2005 when it implemented a one-for-350 reverse split of its stock, the result of which would reduce its float from 350 million shares to 1.1 million.
The reverse split went into effect Feb. 1. In the first four days of trading, more than 143 million shares traded hands. This is despite the fact that the stock was trading under a new ticker and a new trade tracking number, and despite the fact that it had only 1.1 million shares issued. The Depository Trust & Clearing Corp., which handles the lion's share of U.S. stock settlement, had just 929,277 shares available for trading.
Global Links stock, which in theory should have risen, dropped to .08 cents from 10 cents within hours. "It became very clear that we had no control of the volume or price of our stock in anyway," said Global Links' Dobrucki, in a March 15, 2005, letter to shareholders. "Outside forces were now manipulating our stock."
Stockholders reported they could not obtain delivery of shares they had bought. One such individual, Robert Simpson, a Michigan businessman who had inadvertently purchased 100% of the common stock outstanding in February, has yet to receive any of the shares he purchased.
Some have said it is all a simple matter of broker error. Accounts showing 350,000 old shares of Global Links should have been adjusted by the broker to show 350 of the new shares, but some have said that didn't happen.
Pat Donahoo, the manager of marketing services for Global Links, said Friday, "The process of issuing the new symbol on Feb. 1, 2005, worked just as it should. If the brokers tried to trade the stock on the old symbol, they would not have been able to. It was no longer an active trading symbol."
Donahoo adds, "When we saw the trading taking place in February of 2005, all we could do is stand back and watch the parade march down the street in total disbelief."
I've done research on the mining companies around the MGMX mines, I come up with big pps. What puzzles me most is Ken Lamb not coming forward with information to keep shareholders in the loop. That could be the reason why the pps has dropped at a steady pace. There's no reason for this.
If the company would just verify the gold bars Redsky photographed and perhaps mention the American Geologist's report, we could have renewed interest and gain confidence from the investment community.
I think we could see a nice climb in pps, once the company can just give us geological data, production and financial information like Ken Lamb promised.
We've waited long enough, so a bit longer may be worth it. GLTA
I think the next PR will mention at least the 17 we know of. It's also been a while since RedSky was there, so any numbers to date will be more not less. Let's hope it's soon.
Mr. Peacock is a "young dude" compared to my grandmother. Who cares! MTG said that because he sounded young on the phone.
Now, let's go back a day or two. When people were trying to figure out how to access the court papers regarding GGI and the three defendants, MTG already had it in his hands. Notice it was past 4am and he was still insisting on getting the actual court case sent to people to be posted. If he were a pumper, he wouldn't go out of his way to provide information to clear up questions/doubts.
Mr. Trend Green, you've done more here than most who claim to know. I appreciate your hard work. I hope Mr. Peacock can put out some nice PR's to clear up the confusion about share structure and get this thing moving in the right direction.
I, along with so many, appreciate your great work. There's no harm done when you have people accuse you of pumping, lying, among other things. Don't worry about these people. You always have people who love you long time.
I reason I asked was because your writing was great! I thought the accident fixed your sloppy spelling but wasn't sure, so I had to ask.
I have a BIG question...is that you, RedSky?
I am still invested huge in this. I would really like to see this thing take a turn, but it all depends on JP delivering the things he promised.
JP could be a swell guy with a vision, but fact of the matter is...we trusted him to take this thing to the next level, but that hasn't been the case. How can people remain calm when their investment is taking a 50% loss? If JP is a man of integrity, who has nothing to hide, then he could at least address: FIPS, mystery third party, patent information, acquisition talks, etc. IMHO, companies do and should list patent numbers as part of the company's asset, among others. Is that too much to ask for?
If JP is the man he says he is, he should work day and night to get the AFs out ASAP and announce any contracts, status of the buyback, etc. The current PPS is a sad reality. A lot of people keep claiming that this company is going places, and it's a great opportunity to buy in cheap; and CHEAP it is and has been. C'mon!
ITEM 5.02 DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF PRINCIPAL OFFICERS
On June 6, 2006 the Board of Directors accepted the resignation of Charles Neild.
Also on June 6, 2006 the Board of Directors appointed former Chairman and CEO Edward C. Heisler as Chairman, President, & CEO.
ITEM 8.01 OTHER EVENTS
The Board of Directors has decided to postpone a shareholders meeting the Company had tentatively scheduled for June 29th, 2006. The Company had recently filed a Preliminary Proxy Statement on Schedule 14A with the Securities and Exchange Commission (SEC) regarding the meeting. That filing was prepared without the assistance of counsel or auditors, and the SEC responded to the filing with many comments as to the filing's deficiencies.
The Board has been advised to complete its delinquent filings prior to filing an amended Schedule 14A, and to substantially expand its disclosures. The Company is currently delinquent in its December 31, 2005 and March 31, 2006 10-Q's and is unable to complete its quarterly reports due to outstanding invoices with the Company independent auditors. The Company does not have funds to retain auditors and attorneys to complete its filings.
The Company continues to be unsuccessful in acquiring needed funding to support itself. To restore shareholder value, the Company is looking at every option possible, including a new business model. In addition, it has had discussions with several potential acquirers.
In May the Company was also unable to make its latest payment due to AZTECA Wrap Foods. The Company had purchased a 50% ownership in Kokopelli Franchise Company from AZTECA in August of 2005. AZTECA has sent the Company a letter of default, to which the Company replied requesting an extension.
Recently the Company's CEO appeared in a proceeding in San Diego Superior Court as a witness for the Company's former President and CEO, Bradford Miller, and two other shareholders. The three had personally guaranteed an agreement between Franchise Capital Corporation and Golden Gate Investors, and are now being sued by Golden Gate. Franchise Capital, which is not a party in the litigation, believes that the agreement was a violation of securities laws, and in addition, they believe Golden Gate violated Section 16b of the 1934 Act. Franchise Capital hopes that a decision in this case could aid the Company in settling its outstanding contract dispute with Golden Gate.
The Company's corporate address has changed to 20701 N. Scottsdale Rd. Suite 107-239, Scottsdale AZ 85255
http://biz.yahoo.com/e/060608/fccn.pk8-k.html
One day on this MB and you know it all. Your DD must be quite exceptional to come here and offer to "help" us long and strong investors.
Would be nice to see a near-future ticker symbol change. That would take care of the shorting that's been going on.
For all who wanted to know the share structure...today's filing established that.
Previously Stated:
O/S = 72m
Float = 53m
What if the $850k that was drawn down came from the OS at .05, which amount to roughly 17m added to the float ($850,000 / .05)?
When I eat nuggets - chicken nuggets - I think of MGMX gold nuggets.
We have the A-Team.
Mr. T "Pity the Fool" with the complex.
muleofkintire,
Please build a handicap ramp for RedSky to enter the room.
RedSky, hope everything is well. Take it easy and hope you will make it back here with us pronto.
In early December people bought at .026 then the pps dipped to .017. Some who bought at the high were upset because they thought they had bought in on hype and were left "bagholders." The pps stayed at that level for sometime. The bashers were at the ready, saying all sorts of things. Their psychological games did affect the would-be investors and created doubts.
Prior to Tuesday, there were still people implying this merger was a fluke. The 8-K and today's PR clearly defined the direction of FCCN/AERO. Now it's a matter of time before all the terms and conditions can be spelled out. The pressing concern was whether the merger would be inked as anticipated - YES! If I may sum this development "a small step for FCCN; a giant leap for FCCN shareholders." But, please keep in mind...good things do not always happen overnight. There will be many more bumps along the way; but the journey will be worth it. Keep the faith and don't let the daytraders (flippers) or MM's manipulate your mind. These "professionals" may be able to manipulate the pps, but do not let them shake you.
This is an awesome opportunity. AERO Exhaust is a legit company with national exposure/retail distibution. They want to grow. They wouldn't want to merge into a pinksheet company just so they can trade in the pennies...think about it. There are a few procedures they must follow, which I am sure have been in development already. The 60-90 days may be formality, but the final details of the transaction could come out any time. Don't sell yourselves short. That day may come sooner than we think.
GLTA
So now is no longer a matter of "if" but "when" the PR will come out. Do you have a good estimate as to a date the announcement will come out?
Yes, next week will be quite exciting indeed.
Again, I really appreciate your time and your excellent DD.
I have my own eject button, too.
Different strokes for different folks. As long as you don't stroke other folks.
Neither. Why do you think I am still up? Well, not hard up but awake.
You guys need to go get a life or a wife.
Alrighty, everyone go to sleep. Good night John Boy. Good night MaryAnne.
Mule, I am with you. Let's see who's turning off the lights tonight.
I really want to stay upbeat about this stock, but it's just full of mystery. I don't know if Jim is a bigger dreamer than I, or if it's the other way around. Ever since I bought in, it started to turn south. I recently sold half of it at a loss of $46k to be exact. Now, some of you are suggesting Jim is trying to shake out the flippers....WTF? That's far fetched.
I don't want to go on further, because I will sound like basher or disgruntled shareholder. All I want to hear is AF's, contracts, acquisitions if any...whatever to validate what JP has said so far.
I think DD stands for size for something that I haven't been fortunate enough to try yet.
Remember that RM with FCCN? I think they used to go by FCCN something.
Thanks for the link. I guess next week will be the moment of truth.
I went down the checklist to compare what has transpired with FCCN.
How to value a Shell Stock
****************************************MAJOR CONSIDERATIONS****************************************
VERIFIED SHELL STOCK LOOKING FOR AN ACQUISITION: it should be actively looking for a reverse merger. Verification can come from SEC reports, news releases, or verbally from company management.
EXPERIENCED MANAGEMENT: management must understand the mechanics of a reverse merger and know a good business opportunity. If management is not experienced, it is imperative they are working with an experienced consultant.
SEC REPORTING: it must report regularly to the SEC. This is known as a "reporting company." We want to be able to verify information about the company from public/legal filings . . . not by word of mouth or rumor. Believe it or not, there are public companies that are non-reporting.
CLEAN: it has little or no debt, no pending law suites, and little or no outstanding convertible securities (preferred stock or warrants). We don't want anything that can complicate the reverse merger.
SMALL NUMBER OF OUTSTANDING SHARES: the smaller the number of outstanding shares, the better. A smaller number of outstanding shares lessens the chance of a Reverse Stock Split. A Reverse Stock Split can lessen the chance of price appreciation.
LOW MARKET VALUE: basically, this is the buy low sell high rule. A Shell Stock with a low Market Value will have a greater chance of price appreciation than one with a high Market Value. (Market Value = price X shares outstanding). NOTE: the Profile List by Market Value sorts the Shell Companies from low to high Market Value.
CASH ON HAND: some Shell Companies have cash remaining from their previous business endeavors. Having cash to fund the new company's business plan will attract high quality candidates.
****************************************MINOR CONSIDERATIONS****************************************
TAX LOSS CARRY FORWARD: the new company can offset future net income with the Shell Stock's Tax Loss Carry Forward.
EXCHANGE LISTED: it is better for the Shell Stock to be listed on a stock exchange (NYSE, AMSE, NASDAQ, OTCBB). But, there are some quality Shell Companies that are trading on the Pink Sheets.
****************************************INDICATORS****************************************
INCREASED VOLUME/PRICE: increased volume and price with no news may be an indicator of a potential reverse merger. Information on a reverse merger sometimes leaks out and insiders/family/friends start buying before the reverse merger is announced.
CORPORATE ACTIVITY: cleaning up debts, law suits, and issuing reverse splits can indicate management is getting the shell company ready for a reverse merger.
Mule, you were too diplomatic. I would have taken on a more aggressive tone.
Anyway, it's great! Thank you.
What did the Sun Lady say about FCCN?
.055 is going to come down quick
Realistically speaking, I think everyone should give it until Thursday to say yea or nay. A lot of people are convinced that today is the day for the announcement. If it came out today it's great, if not I think the bashers will just beat this down so they can buy in cheap. We can't change how the game is played.
Just wanted to say thank you to Beandog, Mr. Trend and many others who have done great DD to give this real legitimacy. The longest is one week to make this a life-changing turn of event. I can wait.
Kermit, you are sounding too cerebral. Please speak regular English so I can understand. My GED education cannot grasp your philosophical metaphors.
But if you are say a prayer for MGMX before it climbs, then by all means.
PLEASE membermark me and I'll join you. For all you lurking in the shadows of darkness, membermark me and I'll pray for you too.
RedSky, I am catching up with you with my membermarks.
All the traders can rationalize the situation how ever you want. Fact of the matter is this thing will see new highs, upon official release of the merger. It may drop, it may rise - tomorrow. Who is up for picking up pennies, when the prize is much bigger when patience is the main factor (if no PR)? You might be able to cash in on a few bucks by coming in on dips and selling on momentum; but how would you know something won't come out during the day? So, please flip with caution, because you might end up chasing this baby.
One thing for sure...come Tuesday, this thing is fueled with hi-octane.
We are so close.....I can smell that carbon monoxide.
There are a lot of day traders who want to make a quick buck and get out. They forget this stock may be the answer for their many plays (short-term), they don't want to see in a grand scheme(long-term) that this thing has great potential to be quite huge. All they do is demand for an answer. In the real world things do sometimes take a bit longer than stated. In this case, everything seems to have been inked already; it's just a matter of time before the company can put things together to make the official announcement.
Suppose we don't get a PR pre-hour, so what? The deal is already completed. If people want to bail, they may risk coming in higher than what they want, before Tuesday. This is a game and in pennyland the MM's are playing referees. It's your call.
If the last 3.5M was added from after hours, shouldn't the price be recorded at .0505? Any ideas why that wasn't the case?
.065 is next!
SBSH just sold 25k @ .052 and a second later dropped it down to .05 with 250 shares
I have been quite surprised with the direction of this stock has taken so far. Please no more surprises.
I bought in hoping this thing was going places. I am still in knee deep. I thought the commercials were supposed to give this thing a little jolt. Now the CES....What's really happening here?