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My PAIM CDs Understanding
Here's what I could make of the new PR regarding the CDs. Please let me know what you think.
1- PAIM does not want to wait untill the maturity date of June 15, 2011 and will convert all CDs to common shares this month.
2- The conversion rate has been lowered from $0.01/share to $0.001/share which means the CD holder gets more shares now due to conversion (example below).
3- Normally, the conversion fees where a fixed $50/certificate (no per-share fees). I think this is still the case now.
Example:
Before the PR:
A holder of a CD worth $1,000 pays $50 only and converts his CD at any time at a rate of 0.01/share to get $1,000/0.01 = 100,000 shares (100k).
Now after the mandatory recall of CDs:
The holder of the same $1,000 CD pays $50 only (maybe) and converts his CD at any time at a rate of 0.001/share to get $1,000/0.001 = 1000,000 shares (1 million).
Can anyone double check with me? I emailed the TA at their address but it bounced back with a permanent error. I'd appreciate it if anyone could reach the TA by phone to clarify this issue.
Clarifications on the CDs please.
Can anyone please explain what should happen to the CDs as per the last PR? What should the CD holder get in return for his CD? They didn't even leave time for clarification or asking further questions.
Thanks in advance.
Is PAIM taken to court?
Has anyone on PAIM's mailing list received an email from a person called Marian Escudero about a law suit against PAIM? Can anyone confirm if this is valid news?
Thanx
Help with Invest2Trade vs LowTrades
Does anyone tell me the difference between Invest2Trade and LowTrades other than their commissions? The reason for this question is that both brokers are divisions of Success Trade Securities and it doesn't make sense to launch two competing services especially that one of them has a clear price advantage so there must be something else that distinguishes each service.
Any information will be appreciated.
Thanks in advance.
Anyone tried just2trade.com? I need to now:
1- Do they have flat fee commission whether you trade tens or millions of shares?
2- Do they usually restrict stocks?
3- Is their service reliable?
4- Is their customer support responsive and helpful?
5- Your overall experience with them if you use them, do you recommend them or not?
Thank you in advance.
dc6720, please elaborate on your problem with Ameritrade. Is it about restricted stocks?
Thanks a lot Janice, this must be very useful.
hello2u and budgetcuts0: Flat-Fee Stock Brokers
hello2u: Thank you, yes I know LowTrades and seems like a good alternative to me. I contacted them and they confirmed their commission is flat fee.
budgetcuts0: Thank you too. I checked Just2Trade and they are the lowest ever I saw. I'm just not comfortable because it's the first time I hear about them, why aren't they popular? I hope to hear the feedback of other traders about this broker.
netwire: If you are talking about the delayed microcaptrade.com's Level 2, either directly or shown through allstocks.com then they already have been having a problem of sticky Level 2 entries on Bid, Ask, or both sides. This has been going for days. Some entries are not cleaned up and remain for days which makes their Level 2 look weird. Just ignore those strange entries and read Level 2 without them. The entry time stamp and the strange bid/ask can help you detect those entries.
dumb indian, apology accepted. I do not attack anyone and did not cause anyone any harm - at least that I know of - and that's why I see no reason to attack me. Again, I'm always interested in reading your posts and I see that they show experience and insight, and will keep on doing so.
dumb indian, one of the reasons I don't post much is to avoid getting into meaningless fights with other posters. I don't know exactly what's the reason for attacking me this way, sure you have a problem. I replied to lanewbie with my opinion. If you don't like my opinion, don't read it. If you don't like me, ignore me. As simple as that. I did not like the way you replied to me, if you have an objective and respectable reply I can accept it and we talk like two decent persons, if not, you can save yourself the trouble.
And also what is this talk about giving tips? Giving tips or opinions or whatever I do is not anybody's business. I do not need anybody's permission to do so or not to do it.
You know something dumb indian, I used to read your opinions on another board and used to respect you and your opinions and saw them always as valuable and insightful but it's amazing how can someone degrade his image in seconds by a simple careless and worthless reply.
Hoping to not hear form you.
lanewbie, I considered Zecco but what I read about them was not encouraging. I read a lot of frustrated and unsatisfied comments on the web talking about the whole experience as painful with problems starting from opening the account to problems even with trying to withdraw the deposited money after having problems getting the account to activate after the initial deposit. Personally I tried their email customer service and it's too slow, many days to reply and not sure if they have a phone customer service. The idea of free trades seemed attractive in the beginning but after some reading on the web I decided to pay and get a reliable and timely service until the whole free trading experience concludes and we have a clearer image about them.
netwire, I can not PM you (free account) but I already know TD Ameritrade is one of the best flat fee brokers. However, when they are short or something, they don't care about you like now they have restricted PAIM buys while everyone else is trading it. That's why I need a backup broker or maybe more to be in control of my trading. I say go with TD Ameritrade ($9.99 per trade) but be ready with a backup. You don't even need to cancel your current Scottrade, keep it and use it when it's better (i.e. for trades that won't cost you extra commission).
Other flat fee brokers are ChocieTrade ($5 per trade) (still restricting PAIM), eTrade ($12.99 per trade), and probably TradeKing ($4.95 per trade) but not sure if TradeKing is flat fee. It's a trade off between lower commission and more "luxurious" trading experience. You choose.
Happy trading.
netwire, and why are you staying with Scottrade? Do you get anything in return for this extra per share fees or you just didn't know you could avoid it with other brokers?
Asking about flat fee online brokers
Can anyone recommend flat fee online brokers that do not charge extra fees for trading large shares (e.g. Scottrade). I already know TD Ameritrade, eTrade, ChoiceTrade. What else, can you recommend?
Any experience with TradeKing.com?
Thanx in advance.
Another question to experts please. I need to open an instant stock trading account with a US broker or non-US that can trade the US markets and also allows trading in PAIM, then fund the new account via wire transfer from my TDA's hostage account so I can trade in one or two days like what Gail did with eTrade. The problem is that I'm not a US citizen and not living in the US so eTrade wouldn't do this for me and their world branches most probably won't be that helpful. Anyone knows if there's a way to get this done?
This is not only for trading PAIM but actually for gaining back control over my trading now and in the future.
Thanx in advance.
Anybody with experience please help me out here. TDA claims that it is their right to freeze our PAIM shares and to restrict its trading "based on their knowledge of the industry" as they say. Anyone has a deep knowledge about this knowledge and whether it's really their right?
Thanx in advance.
eTrade/PAIM Restriction Questions
Anyone with eTrade please confirm this. This is a part of a reply I received from eTrade customer service but some posters say that they are still able to trade PAIM through eTrade. Please confirm.
======== As per eTrade ========
Also know that PAIM is still restricted. There is no available information as to when or if the trade restriction will be lifted.
========
ChoiceTrade also confirmed the same restriction!
Also does eTrade charge extra fees for OTCBB and penny stock trades or per share cost for trades above a certain number of shares? I know Scottrade charge fees/share above a certain limit but not sure of eTrade.
Which broker then is still strading PAIM then? Anybody knows?
Thanks in advance.
I agree with you DonLeopoldo, enough is enough.
This means that:
1- All the shares sold short out of the 95% have already been covered (and there must be some shorts or where all this volume came from?). Was anybody forced to cover during the past 3 days?
2- Then the now-complete and deductible 95% has been removed from the market and deposited in PAIM's treasury and no longer available for trading so only 453 million shares are remaining.
But this is simply not possible. It seems the number reported on PinkSheets.com is what is supposed to be and not actual situation at this moment. I have a decent chunk of pre-buyback shares and could buy more if TDA allows it and I really would like to see PAIM run but after a year of experience with their wrongdoings and faulty actions, I've learned to think twice about anything that PAIM reports and take their press releases with a grain of salt. If PAIM's stock market situation in terms of the real number of shares available for trading does not support their targets, simply it will not work as desired no matter what they report. Supply and demand speak louder than PinkSheets.com and no matter what PAIM reports to PinkSheets, if the market number do not reflect it then it will have no real effect. And by the way, I'm not looking for spikes, being long means looking for steady and consistent uptrend supported by good management and production. PAIM should tell us exactly how this was implemented and how we have practically reached the 453 million shares in just 3 days, not just by reporting the new number to PinkSheets to show it on their website. I hope I'm mistaken after all, it's just how I see it now.
lasernat, I didn't cover this issue in my previous message to avoid making it any longer. I agree with you that this will solve the problem but only in theory. Practically, how many shareholders will really cover? One poster mentioned that some shareholders have their accounts in negative cash after last years buyback because they haven't covered and this is one year so far. If we take an average shareholder with say 5 million shares bought recently at 0.0003 which makes $1,500 then the PPS spiked like last year and settled at an average of 0.0015 (look at the chart a year ago), how many are really willing to pay $7,125 to cover a short of shares they originally bought for $1,425? (these are just my assumptions, try yours) They won't cover unless they are really forced to (will they be?) or the price drops to levels that make it reasonable for them to cover. The interest rate will not be enough motive to cover at such prices imo.
For those who want to cover to clear their records, they will wait hoping that the price will drop to reasonable prices like last year so they cover or they wait and wait until they have to cover at high prices. However, if the float is not reduced, the low price scenario is more plausible imo because low float is what is supposed to raise the stock price at the first place besides the hoped for production. In both cases - if any covering at all - it will take many months during which the share numbers will remain multiple times the supposed 5% post-buyback.
I see last year's problem repeating again. Actions taken to correct the situation but because of bad implementation and unblocked holes, it all ended up in vain. This year we are not far from a similar scenario because of another bad implementation.
To conclude lasernat, I agree with you that covering any 95% sold short should solve the problem and bring things to balance but I do not see it happening practically at least soon and at best cases it will take many months at low and declining prices unless extreme measures are taken or good production is shown. The promised chill that didn't take place has created a loophole that could ruin the whole thing. We'll watch how things unfold anyway.
I'm short on messages so I shall not reply unless it's urgent.
GLTA
mean_street_dude, I didn't mention anything about selling but your advise is absolutely correct for those who spent the evening of July 20 with their shares in their accounts. It happened last year and many shareholders thought they tricked TDA (and maybe other brokers too) because they were technically able to sell all their shares the following days. They were later accused of selling short even though some of them didn't have marginable trading accounts and were demanded to cover at much higher prices.
Selling shares bought on or after July 23 should not be a problem but frankly I see no way PAIM can keep only 5% of the original float in the market. It simply can not work mathematically. I believe the shares traded on and after July 23 (which are supposed to remain untouched) are in fact multiple times the shares that were supposed to remain in the market. For example if you bought 1 million on July 20 then sold 1 million on July 23, you must surrender 95% of your shares or 950,000 shares. Great, but those 950,000 shares now belong to another person who bought them on July 23 and hence is entitled to keep them all. The result: those 950,000 shares that were supposed to be removed from the market and deposited into PAIM's treasury have now been deposited into a shareholder's account and are free to be pumped back in the market. Now imagine that practically we are talking about tens or maybe hundreds of millions of shares that due to this discrepancy can not be withdrawn/bought back from the market and will remain free to trade. In other words, the 95% buyback will practically be ineffective or nonexistent except for a small portion of the original shares. I see no way for executing the buyback and at the same time committing to the July 23 promise of what-you-buy-is-what-you-keep without multiplying the float many many times over. The other two solutions are delaying the buyback date after July 20 like last year, or dilution. I'm really excited to see how PAIM is going to solve this mathematical dilemma and hopefully we don't see a new innovative solution to mitigate the previous innovative solution that did not work!
This was a long post but it's my last for today and I wanted to enjoy it. Take care everyone.
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Your trading is your responsibility. Period.
Another reply from TDA for another message I sent.
========== FROM TDA ==========
Dear xxxxxxxxx,
The only thing that I could add to the previous e-mail is that you may call to speak with an Associate. Otherwise, the situation is still the same.
At this time, PEARL ASIAN MINING IND (PAIM) is restricted from trading for an indefinite amount of time.
You may call 1888-871-9007 for Client Services. We are available 24 hours a day and 7 days a week except for market holidays. You may use our local (not toll-free) international number: 402-970-5805 if calling from overseas.
Thanks.
Frank S.
Apex Client Services, TD AMERITRADE
Division of TD AMERITRADE, Inc.
===========
Of course, nonsense and meaningless excuses have more impact when heard than read. TDA found a new way to test customer loyalty by bestowing extra restriction days on their clients and giving them restrictions for an indefinite amount of time.
That's why dealing with two or three online brokers is a sound idea.
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Your trading is your responsibility. Period.
This is TD Ameritrade's reply about restricting PAIM trading. The absence of DTC clarification was TDA's excuse for restricting PAIM. However, when I asked them to initiate the contact with the DTC instead of waiting for them, suddenly it turned out that it "will not change the restriction", weird! Seems TDA traders are out of the game until further notice, sorry folks. It will be fun to watch what happens when TDA removes the restriction and their traders jump in the pool.
========== FROM TDA ==========
Dear xxxxxxxxx,
In regards to your shares of PEARL ASIAN MINING IND (PAIM), currently this security is restricted from trading for an indefinite amount of time. At this time contacting the Depository Trust Company (DTC) will not change the restriction. I apologize for the inconvenience this causes. Please feel free to status again at a later date. You could also contact the issuer directly for more information.
Sincerely,
Cassie J.
Apex Reorganization and Safekeeping, TD AMERITRADE
Division of TD AMERITRADE, Inc.
==========
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Your trading is your responsibility. Period.