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Zecco just confirmed that they show MMTC as being DTC eligible. Isn't it a little strange... or is this common? I asked how it could change so quickly and they said they can switch back and forth at any time.
It makes me go back to this --
"During certain reorganizations, redemptions and maturities, DTC will chill the security for book entry activities to "close the books" with the transfer agent in order to stabilize positions while the event is occurring."
So, I was on google trying to look into this "trade for trade" thing and, ironically, came across an ihub post of yours for TIVU. Was the non-DTC thing lifted for them?
Ditto. Hopefully it isn't as bad as it seems.
Yes, I'm with you as of right now. The lack of funding for certs and the earlier comment that it takes a lot to become DTC eligible again makes me nervous though. Hopefully you're right. It feels like we're in a better position than any other time, seems strange that something like this would happen now. A little concerning to me, but we'll see.
Would you please look at this message and comment?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=70601238
This does not only affect Zecco. Like I stated earlier, I don't understand why so many are trying to wave this off as nothing. Potential investors from anyone using Penson will wave MMTC off as "not an option" because of this.
And, it sounds like similar charges are showing up with even the larger brokers. Someday it might affect you, too.
Thanks,
heather
The status changed today. You might just want to ask Zecco.
Assuming you can sell, of course! :-P
No problem, I'm in the red too. Before you transfer, make sure Etrade will either cover the transfer costs imposed by Zecco, or be sure you're okay with the Zecco charge.
Also, take a look at this message I just posted: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=70601238
Not sure if true or not, but the poster states others are starting to charge for these transactions as well.
Good luck!
Heather
Hey... just saw this. Maybe it's good?
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=70601238
This jumped out at me in the hyperlinked PDF: "During certain reorganizations, redemptions and maturities, DTC will chill the security for book entry activities to „close the books? with the transfer agent in order to stabilize positions while the event is occurring."
My apologies in advance if you end up being right! :)
Heather
Here you go... It doesn't affect everyone, but it does some. Essentially, anyone using Zecco (or Trading Direct, apparently) will be unable to invest in MMTC without calling to buy and/or paying huge fees to sell. This is according to the customer service rep I talked with today (conversation is posted).
Two things (from my understanding). First: it's up to the company to be DTC eligible or not. Second: If a company is not DTC eligible, it's up to the broker to decide whether or not to push the non-DTC associated fees to their customers or absorb them. Some will, some won't.
I can't seem to find an all inclusive non-DTC eligible list out there (it has to exist), but I did find this, posted on one of the Zecco discussion boards.
http://www.tradingdirect.com/Static/StandAlone/non_dtcc_memo.html
Not trying to start problems around here today, quite the opposite. I just don't think it's something that can be brushed aside as not being significant. It will be harder for SOME people to buy/sell MMTC! How is it not important?
Heather
I'm with bankshot today, maybe minus the petting zoo comment! Here's his post.
MMTC owes it's investors an explanation, with the ramifications clearly stated, for the future of the stock's liquidity and DD on any extraordinary broker fees from the major brokerages imposed upon MMTC's shareholders when transacting the company's securities. Also, a clearly stated plan of any and all efforts, by MMTC, to rectify the situation. Perhaps that is the reasoning for a massive reverse split? I wonder if the chief gave the attendees, to the petting zoo, a heads up on this DTCC issued "chill order".
Screw the dOg and pOny. That was a joke. The only things that were discovered from that "show" were:
(1) Someone hid the cardboard box.
(2) The CEO chatted way too much about a REVERSE SPLIT.
(3) The stock didn't play when the mice were away.
None of that matters, now, if the stock, has indeed, just lost substantial liquidity.
Quote:Please be advised that effective close of business January 6, 2012...
That's today.
Are you insinuating that MMTC switched to non-DTC eligible purposely, to prevent people from selling... because it's about to take off? Sorry Fione, I really do appreciate your optimism... but that's way far fetched.
Yeah... see ya later, Zecco. My entire MMTC holding is with them though. Rock and a hard place I guess. GL.
Something changed today, as a result of the DTCC PDF posted earlier, stating that future trades of MMTC would be trade for trade.
They're now non-DTC, when they weren't before. Some brokers absorb the extra fees associated with this, some (like Zecco) do not. I don't think it's fair for you to say a person doesn't know what they're talking about, when what he stated was exactly what I verified a few minutes ago.
The fact of the matter is... it's going to be much harder for some to sell MMTC... meaning not as many people will buy into it in the first place. I'd say that's a bad thing.
Thanks,
Heather
Here's Zecco's answer:
You: And do you know the parameters used to determine whether or not a stock is or isn't DTC eligible? Is it likely the status will change?
Mark S.: It has to do with the company's filings with the DTC. You can check if the company has any plans to get back in good standing with the DTC by contacting their investor relations department.
Here's the chat w/ customer service at Zecco. I'm not sure what to do. $200-$700 in fees?? WTF? Does this vary by broker?
Thank you for choosing Zecco Trading. A representative will be with you shortly. For Security purposes, all chat sessions will be recorded.
You are now chatting with 'Mark S.'
Mark S.: Thank you for contacting Zecco Trading. How may I assist you today?
You: Hi... have a couple questions. I currently have a position in MMTC, CUSIP 59484E100. There was a memo out stating that "...Effective close of business January 6, 2012, NSCC has exited positions from the Continuous Net Settlement System...future trades will be designated trade for trade."
You: What does this mean?
Mark S.: I can certainly look into this for you. Please allow me a few moments to research this. May I inquire where you read the memo?
You: Yep... one sec
You: http://www.dtcc.com/downloads/legal/imp_notices/2012/nscc/a7349.pdf
You: There's the link to PDF
Mark S.: Thank you for waiting. I'll be with you in just a moment.
You: No problem, thanks.
Mark S.: It means every single trade has to be settled instead of at the end of day the net of all trades being settled at once. This does not affect you if you are just holding the position and not trading it.
You: So, this wouldn't be the "Non-DTC" horror stories I've read about? Specifically, huge fees when trying to sell?
You: And maybe buy too? Not sure?
Mark S.: This has to do with the way trades are settled in the system, it has nothing to do with if it is DTC eligible or not, you would have to check the stock if it was. If it was non-DTC eligible, this means that each trade would incur the physical settlement fees instead of 1 net trade's fees.
You: Ok, thank you. That's what I wanted to check on.
Mark S.: This is an indication that services might be chilled at DTC, although it is separate. Was there a specific security you wanted me to look into?
You: MMTC
You: I'm sorry, I don't understand what you mean when you say "...services might be chilled at DTC." Could you elaborate?
Mark S.: MMTC is non-DTC eligible.
Mark S.: MMTC has been recently deemed Non-DTC eligible. What this means is that the company is not eligible for electronic clearing and settlement, therefore, trades need to be settled with physical certificates which carries with it a substantial cost. Zecco is currently only accepting orders for these symbols via phone at 877-700-7862. We apologize for the inconvenience, but this is done to ensure you are fully aware of the fees (approximately $200-$700 assessed by the market entities) associated with settling trades by way of physical delivery.
You: This is effective the end of the business day, correct?
Mark S.: This is effective as of now, I checked with our clearing firm to confirm its eligibility.
You: And do you know the parameters used to determine whether or not a stock is or isn't DTC eligible? Is it likely the status will change?
Mark S.: It has to do with the company's filings with the DTC. You can check if the company has any plans to get back in good standing with the DTC by contacting their investor relations department.
Thank you. I was just going to post this. It sure sounds like they tested the actual machine, considering that's what is listed on the certification document from the AOAC.
Disappointed to see such blatant misinformation... at this point, we should all be able to expect more from such posters! IMO!
Thanks for sharing/pressing the accurate interpretation of the PR. Sounds like what you stated last month is identical to what was communicated to SGR yesterday.
False promises and/or reading more into PRs than what's actually there really hurt this stock, IMO.
Looking forward to Q1, 2012!
It shouldn't be down... Unfortunately people were waiting for some earth shattering news and/or couldn't realize we may have gotten it!
Agreed... here's to what we have!
I'm somewhat new to investing, and often those bashing this stock make me question whether staying in is right. Every time I conclude, yes... of course!
Here's a few things I came across tonight, in the event they may help anyone else.
Many companies have successfully obtained AOAC certification: AOAC Tested Methods. The AOAC requires re-certification annually --
MIT 1000 Certificate, 2011.
I looked into a couple (there are many): Paradigm, Microgen... I observed a couple of things immediately (based on what I looked into and IMO, of course):
--> Their testing takes many, many hours to complete (40+)
--> I was unable to find any company that was able to test for E. Coli, Salmonella, and Listeria all at once.
**Bashers have mentioned Bardot, which takes 8-12 hours. Bardot is also still working on automation.
--> Many would require a lab tech (or higher) to carry out their testing, leaving room for human error.
Bottom line: if there were another product out there exactly like the MIT 1000A MMTC is working on, we wouldn't still be hearing about listeria outbreaks or food recalls... tainted products would be caught prior to being dispensed around the country.
Disappointment in the PR was a direct result of pumping and over speculation, IMO. I wish this would stop... because we have a legitimate, lucrative, needed product being developed right before us. If expectations aren't set so high, then maybe we wouldn't experience massive sell offs and deep drops in PPS after great news is reported.
Maybe someday we'll be listed as the solution in an article like this... Nat Geo - Food Safety :)
GL!
H
Thanks for your posts. I hope you're right.
Thank you... appreciated!
Didn't you already sell all your shares?
I need to add I'm certainly not trying to place blame on you, because that's not it. Just a general criticism of the way the PR announcement was handled by the company.
I've been holding since August. I'M NOT BASHING. Can I not be long and criticize that which I don't agree with?
Fione,
I think you and I are on the same page. My opinion though, is simply SINCE the company is dependent on a single person to release PRs, perhaps it shouldn't have been leaked.... as we all know, things happen that are out of our control. Why not surprise shareholders with a PR WHEN you are able to get it out, rather than stating something as a "going to happen, no matter what" event, not knowing if something will come up to interfere.
I am a very compassionate person, and hope he is ok. On the other side, let's be honest -- this is business. And it seems like a very poor business move to make promises that don't happen. A couple days ago, you stated Jeff said the PR would be out FOR SURE within 48 hours. Why did he tell you this, not knowing if the CEO would be in better health to actually draft a PR?
My biggest thing is so many people are disappointed because there was company supplied info that a PR was coming BEFORE they knew they could actually get it out. This is my opinion, to which we are all entitled. I'm certainly not trying to fight -- i've been watching quietly for a long time and wanted to throw my thoughts out there today.
Thanks,
H
??? Please enlighten me.. (seriously)
I'm new to investing, came upon message board doing research a while back. Fione has been spot on for the past few PRs... what does it mean?
IMO, the company needs to stop telling people that a PR is coming in the first place. Had it not been let out that a PR was coming, we would be none the wiser. Instead, with it not coming out when it was "supposed" to, it has many questioning the credibility of the company.
I'm long and do believe in the company. It just seems like a strange move on their part to allow word of PRs out, especially when they don't deliver.
Haha! It's true, the system does look archaic! BUT, a small group of people have been developing it for years based on what it can do... not how it looks. Cosmetic enhancements come later, once a company is more established, IMO.
Thanks for the post... I liked this one too. :)