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The MM are having too much room in how they can handle the liquidity in the stock by not have to worry if they can cover naked trades or not. And I do not trust them in this kind of penny stock. I think they make too easy money.
I do not suggest we have massive shorting by one entity. Read the article?
I suggest we all call and ask to change our accounts to non margin accounts.
If we all do it at the same time I bet we will se a reaction in share price. Read the story bellow!
"Lax Regulation
Some of the damage caused by short selling was blunted by the Securities Act of 1933, which imposed an “uptick” rule and forbade “naked” short selling. But both of these regulations have been circumvented today.
The uptick rule required a stock’s price to be higher than its previous sale price before a short sale could be made, preventing a cascade of short sales when stocks were going down. But in July 2007, the uptick rule was repealed.
The regulation against “naked” short selling forbids selling stocks short without either owning or borrowing them. But an exception turned the rule into a sham, when a July 2005 SEC ruling allowed the practice by “market makers,” those brokers agreeing to stand ready to buy and sell a particular stock on a continuous basis at a publicly quoted price. The catch is that market makers are the brokers who actually do most of the buying and selling of stock today. Ninety-five percent of short sales are done by broker-dealers and market makers. Market making is one of those lucrative pursuits of the giant Wall Street banks that now hold a major portion of the country’s total banking assets.
One of the more egregious examples of naked short selling was relayed in a story run on FinancialWire in 2005. A man named Robert Simpson purchased all of the outstanding stock of a small company called Global Links Corporation, totaling a little over one million shares. He put all of this stock in his sock drawer, then watched as 60 million of the company’s shares traded hands over the next two days. Every outstanding share changed hands nearly 60 times in those two days, although they were safely tucked away in his sock drawer. The incident substantiated allegations that a staggering number of “phantom” shares are being traded around by brokers in naked short sales. Short sellers are expected to cover by buying back the stock and returning it to the pool, but Simpson’s 60 million shares were obviously never bought back to cover the phantom sales, since they were never on the market in the first place. Other cases are less easy to track, but the same thing is believed to be going on throughout the market.
Why Is It Allowed?
The role of market makers is supposedly to provide liquidity in the markets, match buyers with sellers, and ensure that there will always be someone to supply stock to buyers or to take stock off sellers’ hands. The exception allowing them to engage in naked short selling is justified as being necessary to allow buyers and sellers to execute their orders without having to wait for real counterparties to show up. But if you want potatoes or shoes and your local store runs out, you have to wait for delivery. Why is stock investment different?
It has been argued that a highly liquid stock market is essential to ensure corporate funding and growth. That might be a good argument if the money actually went to the company, but that is not where it goes. The issuing company gets the money only when the stock is sold at an initial public offering (IPO). The stock exchange is a secondary market – investors buying from other stockholders, hoping they can sell the stock for more than they paid for it. In short, it is gambling. Corporations have an easier time raising money through new IPOs if the buyers know they can turn around and sell their stock quickly; but in today’s computerized global markets, real buyers should show up quickly enough without letting brokers sell stock they don’t actually have to sell.
Short selling is sometimes justified as being necessary to keep a brake on the “irrational exuberance” that might otherwise drive popular stocks into dangerous “bubbles.” But if that were a necessary feature of functioning markets, short selling would also be rampant in the markets for cars, television sets and computers, which it obviously isn’t. The reason it isn’t is that these goods can’t be “hypothecated” or duplicated on a computer screen the way stock shares can. Short selling is made possible because the brokers are not dealing with physical things but are simply moving numbers around on a computer monitor.
Any alleged advantages to a company or asset class from the liquidity afforded by short selling are offset by the serious harm this sleight of hand can do to companies or assets targeted for take-down in bear raids. With the power to engage in naked short sales, market makers have the market wired for demolition at their whim.
The Need for Collective Action
What can be done to halt this very destructive practice? Ideally, federal regulators would step in with some rules; but as Jim Puplava observes, the regulators seem to be in the pockets of the brokers and are inclined to look the other way. Lawsuits can have an effect, but they take money and time.
In the meantime, Puplava advises investors to call their brokers and ask if their accounts are margin accounts. If so, get the accounts changed, with confirmation in writing. Like the “Move Your Money” campaign for disciplining the Wall Street giants, this maneuver could be a non-violent form of collective action with significant effects if enough investors joined in. We need some grassroots action to rein in our runaway financial system and the government it controls, and this could be a good place to start.
Ref:
http://seekingalpha.com/article/296812-bear-raiders-the-dark-side-of-short-selling
There are no shorts playing at this moment, stop this idea! What we see is a market unwilling to support a high risk venture in china. I bet on this one! Good luck!
Anyone here that knows Pensers MM for SIAF trading?
From The Jordan-found site.
"Nu är Clavister tecknat och klart och en notering under Q1 ser ut att vara ett rimligt antagande. Efter senaste 2 årens Cassandra, Vigmed och Nexam blir det nu alltså Clavister som blir fjärde hjulet under den JF-vagnen. Därmed kan jobbet med nästa kandidat börja på allvar.
Samtidigt har JF stora intressen i att det går åt önskat håll för favoriten SINO AGRO FOOD, som gångna vecka hade sin första vecka på länge med bra uppgång och bra omsättning varje dag.
Förhoppningsvis kan det åter bli fart för förra DUAL LISTNINGEN JF var pappa till, SEMAFO. Fallande guldpris kom emellan - men kanske ser vi en rekyl upp på detta snart och då samtidigt aktien - som just åter tagits upp i ett ansett guldbolagsindex."
Google translate!
Now Clavister signed and ready and a listing in Q1 appears to be a reasonable assumption. After the last two years, Cassandra, Vigmed and Nexam will thus now Clavister which will be the fourth wheel in the JF-cart. Thus, the job of the next candidate to begin in earnest.
Meanwhile, JF large interests in that it goes in the desired direction for the favorite SINO AGRO FOOD, who last week had its first week in a long time with good rise and good sales every day.
Hopefully, we will again se some action for DUAL listing whom JF was the father of, SEMAFO. Falling gold price came between them - but maybe we are seeing a rebound up on this soon and then simultaneously share - just re-entered in a prestigious gold company index.
My opinion is that this baby will fly any day now!
I am Swedish and a have been investing in the stock market, mostly in Sweden, for more than 20 years. And my view is that if the IPO in Sweden is handled correct i expect numbers of investors from Scandinavia to tenfold and slowly correct the valuation of SIAF.
Huang source 20,000 tons production line of high-quality beef split construction
[Abstract] Recently, Qinghai Sanjiang Yili Agricultural Company Limited 20,000 tons production line of high-quality beef split construction. It is understood that the project total investment of 25 million yuan, covers an area of ??45 acres, constructed in two phases, each invest 13 million yuan and 12 million yuan. After completion of the project, the annual slaughter of cattle 20,000 tons, sales income of 860 million yuan, can directly drive the employment of over 3,000 people.
Google translate
http://www.chinadaily.com.cn/hqcj/zgjj/2013-06-04/content_9226164.html
SIAF
Qinghai Sanjiang Yili Agricultural Company Limited
I have one, why would you say that!
Ok I hear what you say,
I like the way you are addressing things on this chat board when you are at all times questioning the source of information or just public opinions. When it comes to listening in Sweden in late June, July or beginning of August I bet there would be a significant disadvantage for those listening in this period, and also a significant lower number of offerings during that period. I do not intend to prove it to you but just want to enlighten my fellow international chat friends of my opinion.
Without any prestige.
Best
Från den akademiska
I agree with you in most of your opinions and even in this, but after 20th of june to mid August Sweden is on vacation. Swedes have 6-10 weeks of vacation and they prefer to have them when the sun shines. The bankers knows this. If the listening comes before it is good. Pensers PB customers are meeting Siaf management next week.
Best r
Well if you think of the stock as a product that needs marketing to get buyers. There it is as plain it can be.
I think that there will be a huge different between a listening in June or July compered to September that is the marketing campaign proceeding the listening. The stakeholders must start with the private banking sector and institutions to do marketing. After that on to media strategies and get some print and if hopefully tv. After that listening. It is not a good idea to rush it.
Best Regards.
Is there any way to check how manny shares that have been shorted? In Sweden that has to be reported every month, number of shorted shares and by whom.
Personally I don't know if there are so big short volumes in siaf.
Joe I have reviewed the posts you have made on IH and I can see you are one experienced trader using the board to support the positions in whatever stock you are currently trading. I don't think it will work for SIAF I see yore post mostly like spam here.
Good Luck anyhow!
To whom it may concern,
You have to understand that this company would be evaluated to 0 if the financing was ended. Without dilution the company would filed for chapter 10 , if existed. But now we are moving to a situation where the operations moves from growth to growth with own assets.
There are no new investors coming in only traders thats why the price is flat!
I do not get this board, there is allot of complaining about the shareholder letter. The story is great and most of the volume in the stock is coming from traders which in its self is good. We have one growing food company in china with great liquidity in the stock and hopefully soon liquidity in cash audited by more than one market.
Ok fare enough I am not going to have a public debate. I can tell you that I like you and your efforts bringing clarity to siaf.
Well common I am generalising here and you know what I mean. The market is by far more sophisticated.
I beg to differ, the price will move up if the enlisting is successfully orchestrated. The bank and the law firm will not risk their reputation on a 50 mill small cap. Further the Nasdaq omx will not risk it's reputation and this will make the valuation easier. You all know the possible valuation of siaf!
It's like that everywhere!
What I think will happened is that, if siaf can back up theirs growth story after enlisting in Sweden the stock will gain when backed up by penser bank, law firm and omx nasdaq. That is one level of quality on the road for siaf.
What is difficult for me to analyse is the american cold handed interests for this company. As far as I concern the American investor community is by far much more sophisticated than the Swedish one.
Any one!
Can anyone tell me where I can find outstanding shorts for siaf?
Oh sorry! One 0 too much I am new to this level 2 and obviously not in the same trading level as you are. In over all my feeling is that I want to increase my position in this siaf but I do not have the complete picture.
Best Regards
Sopis
Well 943 000 sell btw 0.57-0.59 are the people that want to sell. How many of these are traders?
The one mil for sale at 0.57 what does that say to you?
Hi,
I have one open question, what is the number of share holdings for Chad Sykes?
Yes this one is going to be like an stock option that hit the strike price I.e 100-300% up then the job starts to figure out the value. This or 0 are how the market price siaf today.
Hey
SIAF is at the moment in a period of valuation that can best be compared with stock options valuation. Information is the one thing we need to change this.
Hi I am new to this board and will care to comment on the question of reversed split. I think that The CEO have stated that he is unfavourable of a reversed split since he once experienced a bad outcome of a previous one. If I recall everything I read so far about SIAF. By the way good work, stolpen, rd, trf, viking, et al.