Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
When does our statue of limitation run out? Where are out certs?
When does your statue of limitation run out? Better find out.
Anyone have the phone number for KW? Other poster have stated that they have spoken to him, (or they say), but I cannot find the number.
Statue of limitation against Nevwest? KW has never done it yet. I think it is two years. Two years runs out in Sept of 2007.
You forgot about the reverse split the stock did after the merger.
R/S don't make a short cover, they help them. You already know that.
Management is conduction a full stock audit. How do you like them apples shorty.
The company also announced the appointment of Holladay Stock Transfer Company of Arizona, as the new stock transfer agent. Prior to providing Holladay with a complete list of shareholders, management is conducting a full stock audit. The negotiation for the return of the shares to the treasury is also being finalized.
The Short And Distort - Stock Manipulation In A Bear Market
March 1, 2002 | By Rick Wayman
Email this Article Print this Article Comments Add to del.icio.us
Other RSS Readers
A less publicized and more sinister version of short selling can take place on Wall Street. It's called "short and distort". There is nothing inherently wrong with short selling, which is permissible under the regulations of the Securities & Exchange Commission (SEC). But the short-and-distort type of short seller uses misinformation and a bear market to manipulate stocks. Short and distort is as illegal as the pump and dump, but is mainly used in a bear market. It is important for investors to be aware of the dangers and to know how to protect themselves.
Short selling is the practice of selling borrowed stock in the hopes that the stock price will soon fall, allowing the short seller to buy it back for a profit. The SEC has made it a legal activity for several good reasons. First, it provides the markets with more information. Shorters (traders who practice selling short for a living) often complete extensive and legitimate due diligence to try and discover facts and flaws that support their suspicion that the target company is overvalued. Because most shorters are scrupulous and ethical, their actions are conducive to the health of the market. Finally, short selling also provides investors who own the stock (have "long" positions) the ability to generate some extra income by lending their shares to the shorts.
On the other hand, short and distort (S&D) traders manipulate stock prices in a bear market by taking short positions and then using a smear campaign to drive down the price of the targeted stock. This is the inverse version of the "pump and dump" tactic, whereby crooks buy stock (take a long position) and issue false information that causes the target stocks price to increase.
Generally, it is easier to manipulate stocks to go down in a bear market and up in a bull market. The pump and dump is better known than the S&D because of the long bull market and the media. The stock market has been in a general up-trend since the early 1980s, which provided ample fodder for "pumpers". Movies like Wall Street and The Boiler Room helped educate investors about the risk of this type of stock manipulation.
The S&D schysters try to profit by stimulating fear. They will use online screen names that imply either that they are associated with the SEC or the National Association of Securities Dealers, or that they can regularly spot worthless stocks. Their goal is to convince investors that every proponent of the stock has ties to the company and that the SEC is watching and will halt the stock. S&Ds also intimate that they are looking out for investors' interests. Short and distort players clutter message boards, so optimistic information cannot easily be found. "Get out before it all comes crashing down" and "Investors who wish to enter a class action lawsuit can contact…" are typical posts, as are their projections of $0.00 and loss projections of 100%. If their strategy is suspected by "longs", they attack the person that has caught them. The market manipulator will do everything in his/her power to keep buyers out of the stock and keep the price heading south.
The net effect is that the investors who initially bought stock at higher prices sell at low prices because of their mistaken belief that the stock is worthless, caused by an effective distortion campaign. At the same time, the S&Ds cover at low prices and lock in their gains.
In light of Enron and current market conditions, investors are more susceptible to this type of manipulation now than during the boom of the '90s. In this current market, the first appearance of impropriety causes investors to run for the hills. As a result, many innocent, legitimate and growing companies are getting burned, and investors are getting burned along with them.
A few tips to help prevent this in the future:
1) Do not believe everything you read - verify the facts.
2) Do your own due diligence and discuss it with your broker.
3) Hypothecate your stock - take it out of street name to prevent the short sellers from borrowing and selling it.
The best way you can protect yourself is to do your own research. There are many potentially great stocks out there, but Wall Street is ignoring them. And even if the S&Ds attack your stock, you will be better able to detect their distortions and be less likely to fall prey to their distortions by selling the stock at a loss.
Another tool is to know the seven key characteristics of a good research report. Here is a brief summary of how to spot them:
1. Is there a disclaimer?
The SEC requires that everyone providing investment information or advice must fully disclose the nature of the relationship between the information provider (i.e. research analyst) and the company that is the subject of the report. If there is no disclaimer, investors should disregard the report.
2. What is the nature of the relationship?
Investors can get some good information from pieces published by investor relations firms, brokerage houses and independent research companies. Using all of these sources will provide information and perspectives that can help you make better investing decisions. However, you need to evaluate their conclusions in light of the compensation (if any) that the information provider received for the report.
Can a Wall Street analyst who is even partially compensated by trading generated by the report be more objective than a fee-based research firm that is paid a flat monthly rate with no "performance" bonus? The answer to this question is left for each investor to decide, but both reports are available to use for evaluating a potential investment. The nature of the compensation will provide information to help you evaluate a report's objectivity.
3. Is the author identified and is his/her contact information provided?
Generally speaking, if the author's name and contact information is on the report, it is a good sign because firstly it shows the author is proud of the report and secondly it gives you a way to contact the author for additional information. Research reports from legitimate brokerage firms post the author's name and contact information near the top of the front page. If the author's name is not given, investors should be very skeptical of the report's contents.
4. What are the author's credentials?
Letters after a name do not necessarily mean that the author of the report is a better analyst, but they do indicate that the analyst has undertaken additional studies to expand his or her knowledge of finance and investing.
5. How does the report read?
If the report contains a lot of grandiose words and exclamation points, beware. I'm not saying that good analysts are boring, but good reports don't read like the National Enquirer. We try to make it interesting, but a reputable analyst would never use exaggerations like "sure things" or "rockets", and they would never suggest that you mortgage your home to buy a stock.
Objective research reports provide reasoned arguments to buy or sell a stock. Key factors such as management expertise, competitive advantages and cash flows are cited as evidence to support the recommendation.
6. Is there an earnings model and target price with reasonable assumptions?
The bottom line for any recommendation is the earnings model and target price. The assumptions upon which the earnings model is based should be clearly stated so that the reader can evaluate the reasonableness of the assumptions. The target price should be based upon valuation metrics, such as P/E or P/B, that are also based upon reasonable assumptions. If a report lacks these details, it is generally safe to assume that the report lacks a sound basis, and investors should ignore the report.
Hope those brokers didn't naked short both companies. Boy what a mess that will be.
No not true. Etrade has not sent my JPHC shares to the new TA. My other accounts have. Why?
You were suppose to call your broker and have your shares sent to the new TA. I would imagine that it is the same thing that is going on with BCIT. Too many shares in the market to match certs? However, Etrade still has not sent my shares to the new TA. My other accounts have. What do you make of that? Don't deal with Etrade anymore.
Nice post jBanana!!!! I agree with you 100 percent.
I do like the new website!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Why it reminds me of Paypal. Some procedure!!!!!!!!!!!!!
Next week I will be sending $50 to someone. Transactions under $40.00 take alot longer. I will post how long that takes.
Good News I received the transfer from Paychest. Next week I will be sending someone a larger transfer.
Date: Thu, 18 Jan 2007 00:47:31 -0800
Subject: PayChest Service. You Received Money.
From: service@paychest.com Add to Address Book Add Mobile Alert
To: @yahoo.com
CC:
Dear ,
You have just received $10.00 from .
Please login to www.PayChest.com to check your current PayChest balance.
Details :
--------------------------------
Reference Number :
Sender :
It should have read "I transferred out millions of shares from my Etrade account at the end of July." Pyct was not on the short list in July.
Also, transferred out millions of shares from my Etrade account at the end of July. Pyct started appearing on the shorts right after that. Coincidence on transfer and pyct showing up? You be the judge. Also read this link on Etrade on another stock.
http://www.cmkxownersgroup.com/ETradeLetter.pdf
If the Nobo list was under my transfer of shares for Etrade, what is Etrade doing?
Just recently. As soon as I receive the payment, I will inform the board.
By the way a friend sent money to me by Paychest and will confirm when I receive it. It should be any day now.
Also, transferred out millions of shares from my Etrade account at the end of July. Pyct started appearing on the shorts right after that. Coincidence on transfer and pyct showing up? You be the judge. Also read this link on Etrade on another stock.
http://www.cmkxownersgroup.com/ETradeLetter.pdf
If the Nobo list was under my transfer of shares for Etrade, what is Etrade doing?
Read my post regarding etrade.
Posted by: snoop5
In reply to: weid who wrote msg# 16121 Date:1/5/2007 9:35:14 AM
Post #of 16217
Weid, that is what the brokers were suppose to be doing. You I had accounts with Etrade, Ameritrade, BNY, and Vanguard. BNY and Vanguard were the only ones that I had to wait on the phone. I told BNY and Vanguard that Ameritrade and Etrade sales and buys went through within seconds. Both BNY and Vanguard told me that with penny stocks, you must CALL TO MAKE SURE SHARES ARE AVAILABLE FOR SALE. Etrade, Ameritrade and others are NOW being watched carefully so now you must call. However, I always HAD TO CALL with BNY and Vanguard. I do not use anyone else anymore
Here is the post for the short list:
http://www.otcbb.com/asp/OTCE_Short_Interest.asp
Was surprised Pyct was not on short list in July. Never looked after that because how can you short a stock that is .0001 to .0002? It's also is a coincidence that my account was transferred in July and is almost that exact figure. My, My
PAYCHEST INC|PYCT|NBB|73220|73220|0|0|22229178|1
Trading unsolicited is not the problem. Actually having a broker report an unsolicited order is another. Let me see if Etrade and Ameritrade trade unsolicited orders without calling in, how much $$$$$$$$$$$$$$ do you think they make? BILLIONS!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Counterfeiting is a FEDERAL CRIME. Limitations on Federal Crimes is 7 years.
I agree with your opinion. That is why you have to call with Etrade,Ameritrade, and other online accounts. They are trying to fix the naked shorting problem. However, to fix the past damage to investors, the "grandfather clause" should be lifted. A time limit should have been established from the beginning. If they did not cover within the time limit, prosecution for counterfeiting securities.
Weid, that is what the brokers were suppose to be doing. You I had accounts with Etrade, Ameritrade, BNY, and Vanguard. BNY and Vanguard were the only ones that I had to wait on the phone. I told BNY and Vanguard that Ameritrade and Etrade sales and buys went through within seconds. Both BNY and Vanguard told me that with penny stocks, you must CALL TO MAKE SURE SHARES ARE AVAILABLE FOR SALE. Etrade, Ameritrade and others are NOW being watched carefully so now you must call. However, I always HAD TO CALL with BNY and Vanguard. I do not use anyone else anymore.
Did you know I can sell shares and transfer them to a trust for my kids.
End of book not here yet. Who will be taking the fall. Will Loeb be a part of this?
Not if they were TD shares they bought. Nobo list had no record of TD shares, however, they managed to received account statements with over 80,000,000,000 shares. I wonder?
Three peas in a pot, Janice, Hasher, Pedro2004. Go read their post. Interesting.
No, mistakes are made, however, eventually!!!!! LOL
She always comes AFTER a run. Go DD her other stocks that she speaks on. However, she ALWAYS claims she has known they were a scam. Did she or a group make a profit before posting on the boards? Did they then short while it was going down?
thanks cliff I will call also.
http://www.alturaintl.com/default2.asp If you google that name altura, many companies come up. This is another company that is Altura International and does fit what Pyct is coming to be doing.
James I invest with a couple of other people and all have transferred their shares out of Ameritrade and Etrade. We are talking of millions of shares. Hope that they didn't do a CMKM with PYCT. Their Nobo list will have a negative number.
Take a look at the newbies date of IHUB sign up and then how many post they have in a "short" span of time. Sorry had to put that little comment in there. LOL
They already know. I had a nice conversation with a
ROBERT T GREENE
U.S. Securities and Exchange Commission
(202)551-6331.