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.
Think the short have complete control of the price....Low volume without news makes it easy for them to set the price where ever they want...If no new news until job in the mid-East is complete which is 3 month away the price of SUF will be much lower than now...The only reason I haven't sold and wait for a good entry point is it could spike up in 5 minutes with good news....JMO
The SEC would use sunpoenas power which when done is serious stuff.
The subpoena power is sparingly by the SEC
The SEC doesn't disclose who is being investigated...
SUF is not involved to my knowledge...
To ken and others that interest in naked shorting who want to stay abreast of it should bookmark the following...there is a growing belief a major problem exist with quit a few big hedge funds are involded in illegal activities to bring down the shareprice of good companies....The SEC and 2 states are starting action to investigate the above plus a major lawsuit is underway against Rocker Partners which is a hedge fund....
http://www.thesanitycheck.com/
(UPDATE: DTCC Story now confirmed as true in first article covering the topic.)
I have made a number of claims in this blog over the last few days. If untrue, they are serious misrepresentation.
I do not want to misrepresent anything.
The claims are as follows:
1) The DTCC has been served with subpoenas by the states of Connecticut and Utah.
2) They have rebuffed those subpoenas, refusing to comply with them.
3) The SEC investigation into Gradient/ Rocker Partners has been upgraded into a Formal Investigation, with resultant subpoena power.
4) It is likely that Rocker Partners has been served by now with a subpoena.
I believe these are true, based upon reliable information from two separate disparate sources. I have no reason to believe that they were misleading me, or you, the reader.
Still, I don't want to be spreading false rumors. Thus, this is a formal invitation to the fine counsel of both parties to come to the table and immediately correct any content of that data which is incorrect. I know from the weblogs that both the DTCC and Mr. Rocker and his attorneys are big fans of this site, so they can't claim that they don't read it, and didn't read this.
I had hoped that our noble press would confirm these stories and run with them. Apparently any discussion of the DTCC or Mr. Rocker in a negative, if factual, light, is off limits to the NY press corps. This is an odd phenomena. Puzzling. I know that there are reporters out there who report on every nuance of Dr. Byrne's statements, and yet DTCC subpoenas and Formal Investigations into Rocker are top secret?
So here it is again. If anything I have said is factually incorrect, contact me immediately with notice of what is incorrect, and I will revise the content to reflect accurate facts. Please include support for any contentions.
If I do not hear from anyone by close of business today, as I haven't heard from anyone for the last 48 hours, I, and everyone else, will assume that the above 4 statements are correct and true, and will henceforth state them as fact.
So no more smarmy innuendo from lying bloggers (see the previous blog entry for Weiss getting his bottom spanked like a newborn, and exposed for writing false and misleading information about this site) - this is formal notice to put up or shut up.
And to the NY Financial press, shame on all of you. This shows, definitively, how biased and complicit you are with safeguarding Wall Street's secrets, at the expense of the truth. I know many of you read this blog as well, so you can't pretend you don't know about the stories, either.
Tens of thousands of folks also have read this blog, and they do know. You are fooling nobody, but your credibility is damaged to the point of no return.
FYI, I will be publishing a blog this evening which is an astounding story, that underscores why my desire to remain anonymous is a prudent one - this story just keeps getting weirder and weirder, and it underscores that those reporters who have written exposes speculating as to my identity are exposing me to very real harm. Their actions, once you read this, will also be a further indictment as to how low some of these characters are willing to stoop.
So the challenge is now public, and visible. Please spread the word on the message boards, and other blogs - it is put up or shut up time. See everyone this evening.
It’s Almost Spring, And Subpoenas Are in The Air…
Location: BlogsBob O'Brien's Sanity Check Blog
Posted by: bobo 2/13/2006 11:20 AM
Well, in this latest update, I've been informed that the SEC inquiry into our favorite hedge fund and research group has gone formal. That means, for those who haven’t been following it, that after a long period of gathering information and investigating, that the SEC formalized their proceeding, submitting their case in writing to a panel in Washington, in order to get approval to issue subpoenas - and it was approved, creating a formal investigation. This is not a rumor. It is fact.
Now, for those that don’t understand what that means in real world terms, it's pretty simple: A federal marshal shows up at your door and serves you with a subpoena, and all of a sudden you are in a completely different ballgame. There aren’t a lot of reasons that the SEC goes formal, other than to subpoena. It is the unmistakable signal that you are going to receive the kind of scrutiny that makes an IRS audit seem like a picnic lunch with a Victoria’s Secret model. It is also done exclusively because the Commission is looking at either civil, or criminal, action(s).
Which raises the question, has the hedge fund in question been served with a subpoena yet? My hunch is that he has, or will be imminently. Assuming that is the case, it further raises the question as to whether he has the legal obligation to notify his investors that he is now the object of the government’s full weight and attention. And does he have a legal obligation to notify his network of brokers, bankers, and hedge fund buddies? I don’t know a lot about the law and how federal agencies work, but if you are a hedge fund, and you are getting subpoenas from the federales, is that a good thing, or a bad thing?
I asked my contact if a hedge fund had a fiduciary or legal obligation to notify their investors and their network of brokers and bankers, but he/she didn’t know. Seems like something that the investors would need to know, and also something that the banks and brokers and other hedge funds placing their trust in you would need to be immediately notified about – keeping it secret would create a certain friction, I would think, in those relationships…can you imagine the calls?
“Hello, XXX Partn…”
“Hi, XXX. Say, I was reading the web this morning, and I heard that a certain hedge fund got a subpoena from the Feds. You know anything about that?”
“…..uh….where did you see that?”
“That wasn’t the question, was it? The question was, did anyone we know get a subpoena, and not tell his good friends who are supporting him every day?”
“I…did someone say that we got served?”
“Again, wasn’t the question. Did you have a marshal show up at your door, and just not let us, your compadres, know about it? Because if that’s the case…”
“….Uh, Steve....babe….this line is breaking up….I’ll have to call you back….”
Perhaps one of the many newshounds that read this blog could do a little investigative journalism, and see if anyone they know got a subpoena, and if they’ve informed their investors and their network of this latest development? Maybe find out what kind of things the feds were requesting? Maybe nose around the SEC and see if there is anything abuzz?
I wonder if we will see any articles in the WSJ, or the NY Times, or Barrons, or TheStreet.com, or Reuters, or Dow Jones, or Fortune, or the Motley Fool, or the NY Post, about this? Want to bet on the answer?
----------------------
On another note, I was speaking with Dr. Byrne of OSTK via the bat phone (actually the bunny phone), and he told me that two of his affiants had been threatened by the Gradient/Rocker gang. The threats were along the lines of, “We know people everywhere, we can prevent you from ever getting work in this industry,” kind of stuff. Byrne says that Carr Bettis, the owner of Gradient, made the calls, and specifically said, “My lawyers told me it would be OK to call you.”
That sounds odd, as I would have thought there would be some sort of law or something that would prevent that sort of thing, in a lawsuit where the defendants are accused of behavior that sounds to my ear as being criminal. I can’t believe that it would be kosher to be threatening the witnesses that have submitted sworn statements to the court, supporting the allegations against the perpetrators.
Does anyone legal-minded know anything about this stuff? Is it illegal to threaten witnesses, or par for the course?
Patrick also told me that he had gotten a nasty letter from their attorneys arguing that the materials that the affiants had provided to OSTK were somehow privileged, or obtained illegally, or some such. He told me that his response to them was that seven State and Federal law enforcement/regulatory agencies had already contacted him asking for the data, and that he (concerned citizen that he is) had of course provided them the materials; he says he did so hoping that some day we would hear about subpoenas being issued as a result.
Huh.
This looks like it will be in the limelight again soon, as March is coming quick, and the Marin court will be ruling on the SLAPP defense argument advanced by Rocker/Gradient. I’m guessing that the court will rule that the jury deserves to hear all the facts of the case, and that with 8 affiants testifying to collusive shenanigans there is adequate initial proof that this is about conduct, not speech, thus the SLAPP motion is frivolous.
I would also hope that anything that comes up in discovery, when the OSTK team goes after the whole network alleged to be part of this little shindig, isn’t held internally, but instead goes straight to law enforcement (as Byrne did with the batch he sent to the aforementioned agencies). That’s what I would do. Cooperate with the authorities. Help them help themselves. If I was a betting man, I’d say that it could get quite hot in that kitchen sooner than later, and if the allegations are true, this could become about doing time, as well as money. Dunno. These things do have a way of spinning in unexpected ways, and Patrick sounded upbeat, and quite confident.
He even let on that he has more than just a few “smooth stones” that are moving in the direction of the Wall Street “Goliath”, and felt that the next month or two would cause a radical shift in the public’s perspective of what this is all about, and just how big it is. Some of the names involved are, well, significant, to say the least. As we spoke, I got a mental image of a Claymore mine going off, discharging its lethal pattern of damage in the most brutal possible way. I’m not sure smooth stones and slingshots are the right metaphors, but time will tell. It will be fascinating to watch – given how one-sided the press has been, I can’t wait to see if there will be a media blackout when big names become part of the mix.
If the allegations are true, I actually feel sorry for the Gradient guys – the lower members of the food chain usually are the ones to take big heat when things go ugly – rarely does the uber-boss take a bullet, but his capos are necessarily expendable.
I’ve been an interested bystander throughout this little vignette, and have cautioned against jumping to conclusions, but I will say this – all Patrick has to get approved is one of the nine counts he’s leveled at his adversaries, and discovery goes forward.
I would bet better than even money that they get it.
On Patrick’s side, discovery is being handled by a team of law firms that are working on pure contingency, a group of sharks that stared down Big Tobacco and won $17 billion in one state alone, and which have the deep pockets to afford any number of economists, lawyers, paralegals, etc. I would suspect that once they get into the operating room, the proctology exam is thorough, and protracted – and they are deeply interested in the naked short selling issue, so the trading records from the brokerages could yield a host of valuable data for yet more actions.
Sounds like there will soon be a thriving cottage industry, sifting through the mountains of documents and trading records that are going to be discovered from everyone with whom the allegedly innocent defendants ever did business. Then, the world of theory collapses, and we get to find out what really goes on behind the curtain on Wall Street. I’m convinced that the entire network of brokers and hedge funds that Patrick believes are involved in this are looking forward to the opportunity to clear their good names by having all facts known – it is, after all, only the guilty that have anything to fear, and sunshine is a powerful antiseptic…
So, in summary, I would say, bring out the trading records, bring out the phone and email and IM logs, the banking docs, the offshore transfers and trades, the lists of investors and the sources of the funds, the ATM logs, etc. I personally believe that the NY folks have to be delighted that they will finally be able to dispel all the ugly controversy that has surrounded this case, and prove to the world that they are, indeed, without guilt of any sort. If they are telling the truth, Patrick will be paying their legal bills and they will be vindicated, so I’m sure I can imagine the eagerness with which they are saying, “Let’s go, bring it on, we have nothing to hide!”
This is anything b
naked shorting
http://www.ncans.net/
naked shorting
http://www.businessjive.com/nss.aspx
naked shorting
http://www.ncans.net/files/SETTLEMENT.pdf
Terry...I own a stock that has been on the naked short list all of last year except a week or so....It was probably on it for 3 years but can't confirm as they just started letting the info out last year....The shareholder have written hundreds of letters to the SEC plus hundred more to our coungressmen without success...We have tried to find out how many shares were naked shorted to get some idea of the problem...the SEC won't tell us....in other words when a company gets naked shorted they are on their own...It's probably a hedge fund doing it and it you don't believe me try to naked short a stock yourself...it won't happen...The hedge fund knocked the company down fron the high 60's to the 20's in less than 3 weeks...Another one...Check out overstock dot com....looks like a battle to the death to me....me think ws has bought off our goverment...money talks
Added a little today...I read Raging bull and am supprise that some of the regulars are sitting on the sideline waiting for it to go lower...If an announcement came tomarrow of another company signing on to SUF there would be a good percentage pop in sp and leave them in the dust...Don't wish them any bad luck but would like to see a start of a run...
Another idea...Talk to SUF and asked them to talk to UAE’s Fujairah about releasing their test results...The test results from someone other than SUF is a big factor....Last of June is when production goes on line...that 5 months away which is a long time in the stock market...
On second thought...the stockholder should email UAE’s Fujairah and asked them to release the info. they have on SUF's invention...Can't hurt...anyone have their email address?
What would stop all this volatility is for UAE’s Fujairah to make a statement the SUF's unit has beem tested and works fine...Until that happens shorts are going to be all over this stock...Can't think of a reason they can't make that statement unless they haven't done the test which would make them the biggest fools ever...Or are not thru buying SUF stock...
"do we trust Gunnerman's judgment for application on industry wide processes for profitability?"
It's a little more than just Gunnerman's judgement....From what has been publish on these boards is that his board of directors are first class which would lead one to believe that thing are on the up and up....Am thinking of the stink it would cause if the invention doesn't work...The BOD do not need that at this time in their lives and would do their own DD before joining up...
If some of the boys from raging bull are going to check our new partners out tell them to drop by this joint...
http://www.skidxb.com/index.htm
about bashers from another board
This is from the PQ message board:
Liar, liar, pants on fire
by: that_dav_guy (M/Southwestern)
Long-Term Sentiment: Strong Buy 01/25/06 09:51 pm
Msg: 229 of 229
Lesson 8: BRING THE PRICE DOWN. That is the basher's job. The truth is not important. Lies are the norm. Post continuously on the board every day. They are trying to hit the newbies visiting the board. They are trying to wear out the longs on the board. They do whatever it takes to wear the longs out.
LEARN ABOUT HOW STOCK BASHERS WORK: how they are paid: (this was written by a basher) I know the following from a "friend" who needed extra money. I never answer a basher directly because I then become a basher's little money machine. IGNORE THEM FOLKS...how bashers are paid: When you REPLY to bashers you give them an opportunity to earn 5-7 bucks. The service agreement they enter into with their employer states their messages will be monitored for content, profanity, lies, etc. but Money Manager's and the like don't have the time to check all their bashers messages. Only occasional spot checks are done. Those who manage the basher will generally read the headlines to see if a basher is replying to other posters by name. That tells them the basher isn't just "posting blindly" or repeating the same message over and over since they won't pay for those. A basher will attempt to milk three to five replies per post at one to two dollars each. This way the basher spreads negative influence to as many stockholders as possible. A basher will create this discussion thread because it takes less time reading more messages than is necessary. This ultimately allows the basher more time to post and make money. In general, NEVER ENGAGE A BASHER. Make them read all the posts and think up ways to enter the discussion.
Ot on naked shorting from another board
Dear Mr. Fitzgerald - Thank you for your response. I do have a couple more questions.. My original inquiry was what had happened as a result of the Oregon DFCS news release dated 04/28/2003 stating that the brokerages will also pay $450 million over five years for stock research
beyond that provided by their own analysts and $80 million for a nationwide investor-education program. The time is almost up on that requirement and I would like to know what they have done if anything. I would think that your organization as a representative of Oregon, a recipient of funds from that suit, would also like to have an accounting of that.
My second concern is one that also effects me directly as a Oregonian. I will make this specific. A major portion of my retirement investment is in a company that is unarguably very well managed so it isn't some "penny stock". That company has been on the Reg SHO list for over ONE YEAR. Which means that the SEC and DTCC agree that it is being naked shorted which is ILLEGAL. The name of that company is Novastar, a REIT, stock symbol NFI. My concern is the issue of FTD/NSS as outed by the NASAA forum which you advised me that you had read. Again, I emphasize that I am not concerned by legal "Short Selling". My concern is ILLEGAL Naked Short Selling (FTD), the topic of the forum and why it was held. You must know that the outcome of that forum is not arguable. The SEC representative , Mr. Brigagliano attempted to minimize the issue by stating that it was only 1% of the dollar value per day. When pressed about that number the actual dollar amount was agreed to be right at 6 BILLION DOLLARS A DAY. And that was only that portion reported by the DTCC. Ex-clearing volume (that which occurs outside the reporting system of the DTCC) was estimated by Robert Shapiro and other panel members to be perhaps FIVE TIMES that amount. PER DAY. Mr. Fitzgerald, these are unarguable numbers presented by recognized industry experts in a public forum. Both the SEC and DTCC are fighting tooth and nail to deny that this is a problem and the public must "trust us". The DTCC will not release any information concerning the level of the FTD's. The research into this issue by industry experts shows that this IS a major issue. The level of withholding of information necessary to keep this fraud active is massive . I demand nothing more than upholding of the law. The law states that stock transactions must be completed in T+3 days. Some of these stock transactions for NFI, on the REG SHO list, have not closed in more than ONE YEAR.
Your organization as a member of NASAA has a charter to protect the investor. I would venture that the Oregon DFCS is not fulfilling its charter in that you know that the illegal activity is going on, you know that the SEC knows and is doing nothing (as proven by the NASAA forum) and you are doing nothing to cause a Congressional Inquiry that would cause the enforcement of laws you know are being violated. The facts indicate the issue has gotten too big for the SEC to correct without a complete market meltdown and that is why they are fighting tooth and nail to suppress the extent of the fraud. The SEC says "prove it" and at the same time withholds the very information that would allow that without question. That is exactly why the Refco proceedings are closed.
Mr. Fitzgerald - You as an enforcement officer in the Oregon Department of Finance and Corporate Securities are chartered to protect the public investor against fraud. I have just pointed out to you a major instance of fraud, namely the Failure To Deliver of stock certificates in a timely manner mandated by law, in a private company that I am invested in. The name of that company is Novastar , stock symbol NFI. I would suggest that you ask the DTCC to provide you with the level of FTD's for NFI for the last year. I would venture that they would tell you to pound sand. I am asking no more than for you to see for yourself the level of illegal activity I am concerned about and to do something about it.
Respectfully - Capt. XXXXXXXX
please ...don't feed the animals...eom
<<en 1844/what ido not understand is how all these shorts organize.the stock is going down due to longs liquidating.when the shorts buy to cover it should drive the price up.>>
There is a group of people that are organizing to fight naked shorting and it's starting to gain traction...lots of reading and it's an eye opener...
http://www.thesanitycheck.com/
Just Email SUF asking that they get out a press release to defend themselves...Shorty must have slip all the neg things to say about SUF to some lazy writers... There was not one positive thing in any of the articles...That's a hachet job and needs a reply...
The Smart Money article is not good...
<I heard there will be news for new contracts>
Who did you hear it from?....
6. More information on the Korean deal:
<<"A third pact is with Oil SC, a marketing company outside Seoul, Korea. A 2,000 b/d pilot plant is in the final steps of installation. Minor problems with off-the-shelf components like a water separator, required modification. Gunnerman said. "It's strictly back-end of the plant stuff, but it's caused a delay.”
The Korean investment is $1-mil, about the same as ChevronTexaco's expenditure, with plans to demonstrate its abilities starting in the first quarter of 2006 to SK, S-Oil , SG Caltex and Hyundai Oil. Gunnerman said. "Feelers are also out to China Refining," who was approached in December, he continued."
This confirms everything we have heard so far about the Korean unit. The new information concerns marketing targets. These are the largest refiners in Korea and Caltex is a Chevron subsidiary. That should be interesting. Also, if demonstrations are slated for the first quarter, that says that they expect to have the unit up and running within the next two months.>>>
This might be the first time we get a 2nd party verifacation that SUF is for real even it it's only 2000 b/d a day...If they release a positive news article it could be a major step forward for SUF which could cause s/p to go up in a big way...
<<efuzee & blazedhorseman?do you not post on ragingbull>>
No, am going over there to read..have been in this stock for only 2 weeks and am mostly a reader...this is a stock that one has to pay attention to until there is production...It's almost like investing in a oil well and waiting to see if it comes in...best of luck
About being informed...Some of you may not be aware that there is a grass roots group of people made up of average stockholders that are starting to fight back against the big hedge funds that are trying to bring down the price of a stock in a illeagal way.....I happen to own one that they are trying to distroy by selling short millions of share but Failing To Deliver the shares (known as Naked shares)...It's a dividend mreit who's company name is not important but will tell you they have managed to bring it down so far the the foward dividend is 25% this coming yr....Shorts can't kill the company as each year the dividend keeps going up but shorty is in so deep he can't get out without being cripled...enought about that...
I see shorty is in this stock also as SUF is on the SHO list and he is in full force on Yahoo trying to make it impossible to read the board for info so it's maybe in you interest to look at some of the sights set up by the little perple to fight this fail to deliver problem...
http://www.investigatethesec.com/
http://www.thesanitycheck.com/
http://www.investigatethesec.com/DP20060113.htm
<<I cannot post on Ragingbull but I have went back to mid June of last year and read every single post on that board. That is where all the good DD has been done.>>>
blazedhorseman....In the interest of time who would you recommend to be the best informed at ragingbull...One cannot be too well informed on SUF as it is a young co. without a track record...Chuck
Trosh1...Thanks for all the info. you have provided...read your post on yahoo which lead me here...Heard about suf before xmas but put it off and got in about 10 days ago and am green and hope to stay that way...Am retired and can spend time following this stock along with others and am thinking it's going to be my excitement stock...hope it doesn't raise my blood pressure too much...