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This stock is reminiscent of MNTY & ECFL. My guess is that Desmond has given this CEO lessons in how to manipulate this for max profit.
I recently wrote to the lead trial council re:Market 99 SEC lawsuit and this is their reply.
Tom Varitimos to Hughes L. J.
show details Nov 5 (3 days ago)
Dear Mr. Hughes,
May I be apprised of the disposition of the following case that has been in litigation since 2008.
Thank you for your attention to this matter.
Thomas E. Varitimos
TVaritimos@gmail.com
Ph. (781) 762-7564
Case 3:08-cv-01687-M Document 1 Filed 09/24/2008
Reply
Hughes, Leslie J. to me
show details 11:41 AM (56 minutes ago)
Dear Mr. Varitimos:
While default judgments have been entered against five of the defendants, none have paid the amounts ordered by the Court. The case against the remaining defendants is stayed due to a criminal investigation.
Ms. Leslie J. Hughes
Trial Counsel
Securities and Exchange Commission
1801 California Street, Suite 1500
Denver, Colorado 80202-2656
(303) 844-1086 telephone
(303) 844-1068 fax
I have not forgotten the scam. I still hold 5 million shares, just hoping some poor soul acquires this shell and reports new wonderful things, then, I will do as others have done, sell, and fly the coop.
I know that sounds cold hearted, but the old adage is, do unto others before they do unto you.
Show me!
Dear Mr. Smith,
I believe you when you say that there is some activity within MNTY.
Perhaps it has something to do with the SEC conducting their investigation?
You have been pumping this stock from time immemorial.
Obviously you have no clue or you are an ideologue AKA Obama, you can only see what you want or hope.
Or, perhaps you will try to pump this again and recover your losses from some poor soul who isn’t privy to all that has transpired.
This stock is finished, I’m waiting for it to be delisted so I can claim my tax deductible losses and avoid any broker’s commissions.
FURGEDABOUDIT
Isn’t there one fisherman amongst you?? Has anyone ever heard of “CHUMMING”??
Isn’t there one fisherman amongst you?? Has anyone ever heard of “CHUMMING[color=red][color=red][/color][/color]”??
After reading the message board for more than a year, I noticed a close similarity to another pinkie called Ecarfly and then MNTY99.
The final demise of that stock was due to the pumping / dumping done primarily by the BOD's and phony PR's.
Enter phony PR "American 2010 Productions Inc."
Now it's de ja vu all over again
Does anyone know what connection there is between MNTY and ICTY? If my memory serves me at all, I thought MNTY money was used to invest in ICTY, am I correct?
if I am correct, do MNTY stock holders have any claim on ICTY?
Thanks to anyone with info.
Remember The Great Gildersleeve & Digger Odell, Fibber McGee & Molly, Gangbusters' The Green Hornet, Charlie Mcarthy & Edgar Bergen, want more???
You obviously miss the fact that James is/was listed as a member of the BOD's. And yes, I did read the entire list of charges, inasmuch that he is not listed in the SEC documents he was lucky to escape unscathed, he was still an officer of the company.
Also, you make assumptions of my hurrying with my post so that I do not miss a posting time??
I didn't realize that you were the clairvoyant of this board.
I still maintain that you must be the resident pumper/dumper. In any event I hope you find this to be a profitable venture, I don't.
Well I think that since i own 5+ million shares of ECFL/MNTY I have a right to "stick around" and voice my opinion.
Furthermore, James Brola was listed as one of the BOD"s and he is as culpable as the rest in my view, be it MNTY, ECFL or this new "venture". They have one agenda, suck investors dry.
It appears to me you are the typical "pump and dumper" who resides on these pinkys.
AS YOGI BERA ONCE SAID "IT'S DEJAVU ALL OVER AGAIN".
One can see a striking similarity to the ICTY posts and those that eCarfly and MNTY generated during their heyday, almost verbatim.
What makes anyone think that this is different than previous Brola enterprises??
How can anyone with good conscience throw good money after bad?
Are you all masochists???
Doesn't the fact that the SEC is investigating this crowd worry anyone???
I'm stumped!!!
My only reason for contacting the lawyer was to ask a simple question as to whether or not compensation was a possibility, He is the one who asked for my phone number to gather additional information.
His statement to me was that if there was compensation, a notification would be posted on an SEC website with info on how to put in a claim. No mention of hiring a securities attorney was indicated.
I contacted the lead attorney in this litigation:
Leslie J. Hughes
SEC Trial Counsel
303-844-1086
He answered my e-mail immediately:
The litigation in this case was just filed and many events must occur before a court will determine if the SEC will be successful on its litigation. If we are successful and recover funds against which investors may make a claim, the SEC will post a notice on its websitewww.sec.gov where it will describe the claims process. It is not unusual for litigation to take two years to reach a resolution. Do you mind sending me your telephone number so that I may contact you next week to discuss the detail of your investment in eCarfly?
(Perhaps other investors would have additional information that would be beneficial to their case)
This is not good news for Market 99 stores in Texas, obviously TX is not a good market.
99 Cents Only Stores (NDN) plans to exit Texas, shutting 48 stores, and focus on its core markets of California, Arizona and Nevada, where it has 230 stores accounting for nearly 90% of current sales. In the 12 months ended June 28, the Texas stores reported an operating loss of $15 million - about 15 cents a share - on revenue of $120 million, 99 Cents Only said in a statement late on Wednesday. Costs of the discontinued operations should total $40 million to $45 million before tax, NDN said.
Just paraphrasing, but thanks for the correction.
Remember - History repeats itself and those that ignore it are doomed!
Redrain, thanks for your time & effort to see what's transpiring w/MNTY. Your post will have some quieting effect on the stockholders until someone gets antsy and posts some worries he has. Then his/her negative post will send another avalanche of negative posts and start all over again.
There is nothing one can do or say to change the direction of this company, and all the bantering will fall on deaf ears (BOD's).
So sit back and just roll with the punches, if you don't like what's going on, sell your shares and be done with it. People who have been in this for a while will probably stay until it sinks or swims.
That's my philosophy, I've been in since before ECFL hit it's peak, reaped a few bucks and continue to ride this one, I am not complaining because it's a pinkie and I deserve whatever it deals me.
Just had the rest of my order filled, for a total of 3 Mil. @ .0001, hope I'm not just filling someone's pockets
Pastor Phil,
That last trade of 1 Mil. at .0001 was mine, it was a buy not a sell. I had a GTC order in for a few weeks for 3 Mil. and this was a partial fill. This was a limit order at .0001, I was surprised it partially filled.
Tom
The Basher's Handbook
This is a message I came across on another board, it is a reprint of "Bashers Handbook". It is quite lengthy but rather very informative, and it echoes some posts I have seen on this board.
The Basher's Handbook
Reprinted here as a service to those who doubt this actually exists, or is simply an unfounded urban legend.
Is the "Bashing" of a stock an essential part of the online investment landscape?
Our freedom of speech guarantees us that freedom and we have always valued the lessons gleaned from dissent. When does dissent cross over that imaginary line and become "Bashing"? To often we find well grounded dissent capriciously labeled as "Bashing" by over zealous investors bent on protecting a stocks reputation at any cost. The "Bashing" that is addressed on this site is quite different from dissent. The Anatomy of a Basher strives to look at the calculated erosion of confidence in a given stock. Erosion by means that are, in every sense, void of truth, hinged on deception and innuendo, and motivated by greed at the expense of others. This compendium is offered to aid in identifying the telltale signs of "Bashing", and hopefully provide a counter balance to this heretofore unchecked manipulation of investors fears for personal gain.
IS IT EASIER TO SCARE PEOPLE INTO SELLING THAN IT IS TO SCARE PEOPLE INTO BUYING A STOCK? I have asked some knowledgeable investors this question and the answer is always: "YES, OF COURSE YES!"
WHO BASHERS PREY UPON
Consider the elderly that are investing for retirement, they find their way to the message boards for validation only to see false posts about "SEC Violations" and "Class action suits"... or the head of a "typical growing family", with children to put through college, who is monitoring a message board only to read posts by a "pack of 15 to 20 Bashers" (probably 5 or 6 under various alias's) posting continuous disinformation... what do you think these new investors will do? It's safer to not buy or even sell the stock, put the money back in the bank than to deal with all this whirl wind of "unsupported" negative chaff.
The Internet has lured a whole new class of investor into the market. A new investor is just that - New! This new investor, while learning the basics, is particularly vulnerable to the tactics of professional Bashers. New investors tend to lurk in the background of message boards, content to form independent opinions based on what they read with their own eyes. Very often, honest, intelligent and cautious people can easily be overcome by a well orchestrated propaganda effort.
You must always remember that their is a lot of money to be made in just the motion of a stock UP or DOWN it doesn't matter! And Bashers have money at risk just as you do. But they have the edge of fear, lies, and falsehoods to post while preying on the un-initiated. The average investor dose not have the edge of organized deception.
Recent revelations have indicated that even Market Makers (those charged with keeping the playing field level) have been involved in stock manipulation by Bashing on a stock message board. HAVE NO DOUBT THAT THIS IS A REAL THREAT!
Lesson 1: Remember, BASHERS NEVER Bash A BAD STOCK. Check the boards for stocks with no potential. They never have any Bashers. Bashers only go after stocks that are moving up or have excellent potential to do so. Bashers work to bring the price down to either increase their position at the expense of others or help a Short make their bones.
Lesson 2: BASHERS ALWAYS BRING UP OLD NEWS THAT YOU HAVE HEARD MANY TIMES. New startup companies always have a few bits of bad news. The Basher will post this over and over again. Unsophisticated Bashers will try to freshen up old news with a new date or by-line in an attempt to fool you.
Lesson 3: BASHERS POST MANY TIMES A DAY. They try to wear you out. They comment on everything, every other post, and can answer every question. THEY KNOW IT ALL! There is no positive comment they won't Bash. They try to control the board. True longs may have to confront the Bashers or they will appear to the newbies as being the people with all the information. This is best accomplished by posting positive, well researched data on the company, repetitively, while trying hard not to engage the Bashers in direct repartee. REMEMBER - LONGS... RESIST USING THE BASHERS ALIAS!
Lesson 4: BASHERS WILL LIE TO YOUR FACE. Never trust a Basher. The truth on startup companies is that they make mistakes. What new company hasn't? The Basher will compare your issue to a another companies, financials - deals - management, etc., trying to lure you into making an Apples to Oranges comparison. Remember each company is unique and while it is prudent to seek out established indicators, do so with care and don't take someone else's word for it. Strive to come up with at least a "six-pack" of indicators so your vision of the state of a company is not tied to a single barometer. Not doing so is tantamount to going to a Race Track and betting on the "Pretty Brown Horsey". BASHERS WANT TO WHISPER IN YOUR EAR - PLANT A SEED OF DOUBT, AND HOPE THAT YOU ARE NOT SAVVY ENOUGH TO RESEARCH THE TRUTH ON YOUR OWN. This is how they achieve their greatest success.
DOUBT + FEAR + LAZINESS = BAIL OUT!
This is your investment... work for it, protect it and don't panic on the words of very shadowy figure that "has your best interest in their heart". Consider that one factor: Someone you have never met, is not a member of your family, is now, out of the goodness of their hearts - GIVING YOU FREE ADVICE (that you didn't ask for). It's a no brainer. They have motives $$$$$$$$$$$$.
Lesson 5: Bashers know YOU CAN'T VERIFY THEIR STATEMENTS. That's why they make the vague statements they do. They rely on you being to lazy to research their droppings other than to scan the board for others opinions. This is particularly dangerous when you consider that Bashers work in packs and often validate and back up each others nonsense with what appears to be "innocuous and unsolicited" verification by comrade Bashers. Let's face it, we are all conditioned to "believe" everything we see in writing. If others by virtue of their "posts" also confirm this belief, then we are subconsciously doomed to swallow the hook, line and sinker... Basher - 1 Honest Investor - 0
Lesson 6: The Bashers PLAY ON YOUR LACK OF KNOWLEDGE. They can lie about information and you won't know the difference (unless you have done your own DD on the company and know the truth and facts).
Lesson 7: Bashers play on your lack of patience. You have held a stock for a while. You knew it will be a big stock someday, but the BASHER CAN GET TO YOU BECAUSE YOU ARE TIRED OF WAITING FOR YOUR GAIN. That's when the Basher is best. You are tired. You have forgotten the goal for the stock was to hold it for one year. The Basher is bothersome, so you dump it on a bad day. Some others also dump. Then you get mad for your loss and return to let everyone know how mad you are. Then you turn into a semi-Basher as well. THE BASHER HAS WON, AND GAINED A NEW ALLY - YOU!
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 scare the newbies that are just investigating a stock. They are trying to wear down the faithful longs on the board and gain free reign and control.
A BASHER HANDBOOK:
Do not underestimate a Bashers influence on a stock. The Pro's are good at what they do and what they do is profit from your losses. Below is their "hand-book". Learn from it or you will be donating your hard earned money to them!
Rules for Successful Bashing:
1. Be anonymous
2. Use 10% fact. 90% suggestion. The facts will lend credibility to your suggestions.
3. Let others help you learn about the stock. Build rapport and a
support base before initiating your Bashing routine.
4. Enter w/ humor and reply to all who reply to you.
5. Use multiple ISP's, handles and aliases.
6. Use two (2) or more aliases to simulate a discussion.
7. Do not start with an all out slam of the stock. Build softly.
8. Identify your foes (Longs) and the boards "guru" Use them to
your advantage. Lead them do not follow their lead.
9. Only Bash until the tide/momentum turns. Let doubt carry it the
rest of the way.
10. Give the appearance of being open minded.
11. Be bold in your statements. People follow strength.
12. Write headlines in caps with catchy statements.
13. Pour it on as your position gains momentum. Not your personality.
14. Don't worry about being labeled a "Basher". Newbies won't
know your history.
15. When identified put up a brief fight, then back off. Return in an hour unless your foe is a weak in reasoning powers.
16. Your goal is to limit the momentum of the run. Not to tank the
company or create a plunge in the stock; be subtle and consistent.
17. Kill the dreams of profits, not the company or the stock.
18. Use questions to create critical thinking. Statements to
reinforce facts.
19. DO NOT LIE, NAME CALL or USE PROFANITY.
20. Encourage people to call the company. 99% won't. They'll take your word for claims made. If they do call you can always find something that is inaccurate in how they report their findings.
21. Discourage people from believing Press Releases.
Encourage them to call the company. They won't out of laziness.
22. If the companies history/PR's are negative constantly point to that. Compile a list of this data prior to beginning your efforts.
23. If the price rises blame it on the hype or the PR, temporary
mass reaction, the market, etc. Anything but the stock itself.
24. If other posters share your concerns, play on that and share theirs too.
25. Always cite low volume, even when it's not.
26. Three or four aliases can dominate a board and wear down the longs.
27. Bait the Longs into personal debates putting their
focus/efforts on you and not the stock or facts. Divert their attention from facts.
28. Promote other stocks that would-be investors can turn to
instead of the one your Bashing.
30. Do not fall for challenges on the "values" of what you are doing, it's a game and you are playing it with your own rules.
Grade 'A' Basher:
If you post lots of old news, respond to all positive posts with a negative side. Never respond to being called a Basher, never post on another board with same alias. Can spend up to 80 hours a week Bashing a stock.
Grade 'B' Basher:
Very good way with words, always claims to be your "friend" taking the positive poster into confidence, never posts on another board, spends about 60 hours a week.
Grade 'C' Basher:
Spends less time than the others but is somewhat effective and gets a C grade due to getting excited when Bashers rules say not to get excited, spends about 40 hours a week.
Grade 'D' Basher:
Needs to learn the basics about being convincing when making a negative statement. Spends a good amount of time working the stock, maybe 20 hours a week.
Grade 'F' Basher:
A complete idiot, most readers are not convinced he knows anything about stocks in general. The type that says a stock "sucks", but gives no rationale, shows up every so often but no regular schedule.
LEARN ABOUT HOW BASHERS WORK: For instance: did you know that some Bashers are paid?
Golden Rule:
IGNORE THEM ...learn how professional Bashers are paid: When you REPLY to Bashers you give them an opportunity to earn appox. 5-7 dollars. The service agreement they enter into with their employer states their messages will be monitored for content, profanity, lies, etc. but Overseers 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.(True to form a Basher will put the bite on anyone, even their unscrupulous employer). 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. NEVER ENGAGE A BASHER; if you do so then YOU BECOME THE BASHER,S AID! If you feel compelled to challenge a Basher do so without mentioning his/her true alias in your response. This will make it hard for the Basher to use your post as a revenue stream. Read the news, do your own homework and make your own decisions. Get real time quotes and follow the stock for a couple of weeks. Due Diligence is key here. Know that there will be a time when the stock runs up which will be followed followed by the Bashers and those that missed the boat. The Bashers will trash the stock by saying such things as "it's a Pump and Dump" and "the company is lying" and deceiving. There goal is to scare off newbies and potential new investors by "shaking" you out of your shares. Take the time to confirm your DD ,trust your own judgement and believe in yourself, pick your point of return or loss and live with it. Don't listen to hype or Bashers trust your own judgement. Live by the rules you have created .
HOW TO IDENTIFY A BASHER
1. Check the "Born on Date" Bashers create identities on a regular basis. Rarely do you find a Basher with older "Created On" date. So click on the Identity icon for more details.
2. Take the time to look at the Basher's history of Posts. Go to other boards and see if their is a pattern to the theme of the posts. Bashers rarely waste time trying to blend in with "positive" posts, unless they are cultivating a new uninformed assistant.
3. When did the Basher show up. Bashers rarely show up when activity is in at a Lull. They show up when activity up/down..
4. Bashers never answer direct questions except with another question.
5. Bashers do work in teams (sometimes themselves as a team). So be suspicious of someone showing up and automatically having a Shadow to converse with who supports their argument.
6. Bashers always select "an argument" that can never be resolved by research.
The Basher 'Pack' Mentality
Bashers love to work in packs. It provides the quintessential cover to achieve supposedly "independent" validation of an argument. It is neither independent nor validating.
Pack Structure: Basher Packs can be comprised of any number of Bashers. They can be purposely formed within an organization or they can be "ad hoc" formed during a conclave on a particular board. In fact a pack mentality can be achieved by an ambitious "party of one" with a few select aliases.
Once a pack is formed, a leader emerges. This leader is usually acknowledged by other Bashers because of 1. Knowledge of the stock. or 2. Recognition by current board Longs (high visibility). Once established the Leader will usually work the Pack members up in to a posting frenzy. Constantly changing themes and even occasionally biting the ear of another pack member (this earns instant credibility), and it doesn't offend the bitten Basher because he/she knows it is all part of the effect. Quite sophisticated.
Packs will disband and slink away without notice. Usually this is the call of the Pack Leader who is adept at recognizing overplay. More often than not, Pack members must move on because they have other Bashing commitments to fulfill. They will return to the site of a good hunt over and over again, until hamstringing is achieved.
What calls a pack together. The Cry of the Leader. Certain Bashers love to work together. They know each others bite, how to feign in and out, it is a well choreographed Bash when pack members have worked together before. They constantly check their "Sites Du Jour" for signs of Pack activity. Occasionally they will throw out a "Nibbler" Bash to see if the pack responds or if not they can work the site themselves. It's all about effectiveness, time and earning money.
Phil,
If those people who are not receiving your e-mail may have not entered your e-mail address into their address book, consequently their junk filter will not recognize your mail as an accepted sender and will delete it. My advice is to disable junk filtering until Phil's mail is recieved, put his address into the address book and enable the junk mail filter again.
One caveat is that during that period of no filtering they will be inundated with massive junk mail.
Tom V
Hi Nature Dog,
I have spoken with many brokers regarding "Short Selling", and I get the same answers from all of them. Short selling can only occur in taxable accts. w/margin accts. IRA's have no margin accts. therefore any shares you have in those IRA's cannot be shorted.
Requesting a Paper Certificate of shares you don't want shorted will prevent shorting since they are no longer in control of the brokerage house.
As far as requesting the brokerage house to restrict your shares from being shorted, the answers I garnered were for the most part ambiguous.
Obviously, they realize significant revenue with this practice.
Naked shorting is unlawful, but apparently not of much concern to be vigorously challenged.
I hope this answers your questions.
TOM V
Interesting read on "Cellar Boxing." Not suggesting this is directly connected to MNTY
Interesting read from another board this AM
Naked Short Selling Explained for the IBOX
Wonder if management have read the book on "Cellar Boxing"?
“CELLAR BOXING”
There’s a form of the securities fraud known as naked short selling that is becoming very popular and lucrative to the market makers that practice it. It is known as “Cellar boxing” and it has to do with the fact that the NASD and the SEC had to arbitrarily set a minimum level at which a stock can trade. This level was set at $.0001 or one-one hundredth of a penny. This level is appropriately referred to as “the cellar”. This $.0001 level can be used as a "backstop" for all kinds of market maker and naked short selling manipulations.
“Cellar boxing” has been one of the security frauds du jour since 1999 when the market went to a “decimalization” basis. In the pre-decimalization days the minimum market spread for most stocks was set at 1/8th of a dollar and the market makers were guaranteed a healthy “spread”. Since decimalization came into effect, those one-eighth of a dollar spreads now are often only a penny as you can see in Microsoft’s quote throughout the day. Where did the unscrupulous MMs go to make up for all of this lost income? They headed "south" to the OTCBB and Pink Sheets where the protective effects from naked short selling like Rule 10-a, and NASD Rules 3350, 3360, and 3370 are nonexistent.
The unique aspect of needing an arbitrary “cellar” level is that the lowest possible incremental gain above this cellar level represents a 100% spread available to MMs making a market in these securities. When compared to the typical spread in Microsoft of perhaps four-tenths of 1%, this is pretty tempting territory. In fact, when the market is no bid to $.0001 offer there is theoretically an infinite spread.
In order to participate in “cellar boxing”, the MMs first need to pummel the price per share down to these levels. The lower they can force the share price, the larger are the percentage spreads to feed off of. This is easily done via garden variety naked short selling. In fact if the MM is large enough and has enough visibility of buy and sell orders as well as order flow, he can simultaneously be acting as the conduit for the sale of nonexistent shares through Canadian co-conspiring broker/dealers and their associates with his right hand at the same time that his left hand is naked short selling into every buy order that appears through its own proprietary accounts. The key here is to be a dominant enough of a MM to have visibility of these buy orders. This is referred to as "broker/dealer internalization" or naked short selling via "desking" which refers to the market makers trading desk. While the right hand is busy flooding the victim company's market with "counterfeit" shares that can be sold at any instant in time the left hand is nullifying any upward pressure in share price by neutralizing the demand for the securities. The net effect becomes no demonstrable demand for shares and a huge oversupply of shares which induces a downward spiral in share price.
In fact, until the "beefed up" version of Rule 3370 (Affirmative determination in writing of "borrowability" by settlement date) becomes effective, U.S. MMs have been "legally" processing naked short sale orders out of Canada and other offshore locations even though they and the clearing firms involved knew by history that these shares were in no way going to be delivered. The question that then begs to be asked is how "the system" can allow these obviously bogus sell orders to clear and settle. To find the answer to this one need look no further than to Addendum "C" to the Rules and Regulations of the NSCC subdivision of the DTCC. This gaping loophole allows the DTCC, which is basically the 11,000 b/ds and banks that we refer to as "Wall Street”, to borrow shares from those investors naive enough to hold these shares in "street name" at their brokerage firm. This amounts to about 95% of us. Theoretically, this “borrow” was designed to allow trades to clear and settle that involved LEGITIMATE 1 OR 2 DAY delays in delivery. This "borrow" is done unbeknownst to the investor that purchased the shares in question and amounts to probably the largest "conflict of interest" known to mankind. The question becomes would these investors knowingly loan, without compensation, their shares to those whose intent is to bankrupt their investment if they knew that the loan process was the key mechanism needed for the naked short sellers to effect their goal? Another question that arises is should the investor's b/d who just earned a commission and therefore owes its client a fiduciary duty of care, be acting as the intermediary in this loan process keeping in mind that this b/d is being paid the cash value of the shares being loaned as a means of collateralizing the loan, all unbeknownst to his client the purchaser.
An interesting phenomenon occurs at these "cellar" levels. Since NASD Rule 3370 allows MMs to legally naked short sell into markets characterized by a plethora of buy orders at a time when few sell orders are in existence, a MM can theoretically "legally" sit at the $.0001 level and sell nonexistent shares all day long because at no bid and $.0001 ask there is obviously a huge disparity between buy orders and sell orders. What tends to happen is that every time the share price tries to get off of the cellar floor and onto the first step of the stairway at $.0001 there is somebody there to step on the hands of the victim corporation's market.
Once a given micro cap corporation is “boxed in the cellar” it doesn’t have a whole lot of options to climb its way out of the cellar. One obvious option would be for it to reverse split its way out of the cellar but history has shown that these are counter-productive as the market capitalization typically gets hammered and the post split share price level starts heading back to its original pre-split level.
Another option would be to organize a sustained buying effort and muscle your way out of the cellar but typically there will, as if by magic, be a naked short sell order there to meet each and every buy order. Sometimes the shareholder base can muster up enough buying pressure to put the market at $.0001 bid and $.0002 offer for a limited amount of time. Later the market makers will typically pound the $.0001 bids with a blitzkrieg of selling to wipe out all of the bids and the market goes back to no bid and $.0001 offer. When the weak-kneed shareholders see this a few times they usually make up their mind to sell their shares the next time that a $.0001 bid appears and to get the heck out of Dodge. This phenomenon is referred to as “shaking the tree” for weak-kneed investors and it is very effective.
At times the market will go to $.0001 bid and $.0003 offer. This sets up a juicy 200% spread for the MMs and tends to dissuade any buyers from reaching up to the "lofty" level of $.0003. If a $.0002 bid should appear from a MM not "playing ball" with the unscrupulous MMs, it will be hit so quickly that Level 2 will never reveal the existence of the bid. The $.0001 bid at $.0003 offer market sets up a "stalemate" wherein market makers can leisurely enjoy the huge spreads while the victim company slowly dilutes itself to death by paying the monthly bills with "real" shares sold at incredibly low levels. Since all of these development-stage corporations have to pay their monthly bills, time becomes on the side of the naked short sellers.
At times it almost seems that the unscrupulous market makers are not actively trying to kill the victim corporation but instead want to milk the situation for as long of a period of time as possible and let the corporation die a slow death by dilution. The reality is that it is extremely easy to strip away 99% of a victim company’s share price or market cap and to keep the victim corporation “boxed“ in the cellar, but it really is difficult to kill a corporation especially after management and the shareholder base have figured out the game that is being played at their expense.
As the weeks and months go by the market makers make a fortune with these huge percentage spreads but the net aggregate naked short positions become astronomical from all of this activity. This leads to some apprehension amongst the co-conspiring MMs. The predicament they find themselves in is that they can’t even stop naked short selling into every buy order that appears because if they do the share price will gap and this will put tremendous pressures on net capital reserves for the MMs and margin maintenance requirements for the co-conspiring hedge funds and others operating out of the more than 13,000 naked short selling margin accounts set up in Canada. And of course covering the naked short position is out of the question since they can’t even stop the day-to-day naked short selling in the first place and you can't be covering at the same time you continue to naked short sell.
What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on.
The truth of the matter is that the single biggest asset of these victim companies often becomes the astronomically large aggregate naked short position that has accumulated throughout the initial “bear raid” and also during the “cellar boxing” phase. The goal of the victim company now becomes to avoid the 3 main goals of the naked short sellers, namely: bankruptcy, a reverse split, or the forced signing of a death spiral convertible debenture out of desperation. As long as the victim company can continue to pay the monthly burn rate, then the game plan becomes to make some of the strategic moves that hundreds of victim companies have been forced into doing which includes name changes, CUSIP # changes, cancel/reissue procedures, dividend distributions, amending of by-laws and Articles of Corporation, etc. Nevada domiciled companies usually cancel all of their shares in the system, both real and fake, and force shareholders and their b/ds to PROVE the ownership of the old “real” shares before they get a new “real” share. Many also file their civil suits at this time also. This indirect forcing of hundreds of U.S. micro cap corporations to go through all of these extraneous hoops and hurdles as a means to survive, whether it be due to regulatory apathy or lack of resources, is probably one of the biggest black eyes the U.S. financial systems have ever sustained. In a perfect world it would be the regulators that periodically audit the “C” and “D” sub-accounts at the DTCC, the proprietary accounts of the MMs, clearing firms, and Canadian b/ds, and force the buy-in of counterfeit shares, many of which are hiding behind altered CUSIP #s, that are detected above the Rule 11830 guidelines for allowable “failed deliveries” of one half of 1% of the shares issued. U.S. micro cap corporations should not have to periodically “purge” their share structure of counterfeit electronic book entries but if the regulators will not do it then management has a fiduciary duty to do it.
A lot of management teams become overwhelmed with grief and guilt in regards to the huge increase in the number of shares issued and outstanding that have accumulated during their “watch”. The truth however is that as long as management made the proper corporate governance moves throughout this ordeal then a huge number of resultant shares issued and outstanding is unavoidable and often indicative of an astronomically high naked short position and is nothing to be ashamed of. These massive naked short positions need to be looked upon as huge assets that need to be developed. Hopefully the regulators will come to grips with the reality of naked short selling and tactics like "Cellar boxing" and quickly address this fraud that has decimated thousands of U.S. micro cap corporations and the tens of millions of U.S. investors therein."
Phil,
I can't recall if this site has been posted previously giving the minimum NASDAQ Listing Requirements, but here it is anyways. We have a ways to go to meet them IMO. http://www.haledorr.com/files/upload/Nasdaq_Listing_Requirements.pdf
My understanding according to SEC rules, is that muliple trades can be executed if you have a margin acct. or sufficient cash to cover the value of the last trade, and not be subject to the 90 day restriction.
Add my 1.5 million at 0.0018 avg. to the count
Check out HABE.PK, very interesting outlook.
Since when is this board not allowing a fair and balanced discussion. I for one, want to hear other views, let's not have our heads in the sand!
I don't, as a rule recommend any stock as a "buy", particularly pinkies, but I feel compelled to mention this one stock in particular that has quadrupled my investment in the last year.
My reason for revealing this, is to help mitigate the losses each of you experienced with the scam of ECFL as it has for me, and to attract more "LONG TERM INVESTORS".
This is a small company based in Massachusetts, headed by a group of Phd's including two men I know professionally, who are retired VP's from one of the worlds largest defense equipment manufacturers.
The company I'm excited about is "Haber Inc.", it's web page is http://www.habercorp.com, and it's stock symbol is HABE.PK.
Of course you must do your own DD, I'm sure you will see it has the potential to be a winner.
Incidentally, Haber has made some money, albeit a small amount, but still, positive income.
I've been following the posts since last August on Raging Bull and IH and I believe that this board has cornered the market of all available optimism in the investment world.
The RB board had their pumper under the name of "Alwaysright". He was always buying as much as he could, that this was on it's way up momentarily, shortly after the stock took it's dive he disappeared.
This board has it's share of "investors" that keep sending good money after bad on the hypothesis that good news is coming in June or maybe August, or Oh! maybe Sept.
I "invested " in this scam pre-split, but have since sold the worthless stock at 0.036 for a significant loss.
How far into the micro penny does it have to go before you all wake up.
Incidentally, when I first posted on this board 10 or so months ago and voiced my opinions, I was soundly castigated by 'Flatsfox' and 'Philghunt'.
I haven't seen a Flatsfox post in several weeks??
I wasn't aware that philghunt needed anyone to shield him from some statement that only said I saw some similarity to his posts with others.
As I wrote previously, I am not confrontational, so please take me off your hit list.
Secondly, I wasn't aware this board was your personal space, that you decide which posts are acceptable to you.
I am reluctant to mention any pinkies since I have been beaten down with ecarfly, but I would like to mention HABE. It's a company that has developed a method of extracting gold from ore without using toxic materials, e.g. mercury. They also plan to extract precious metals from discarded electronics with the same process. It's called the Haber Gold Process. www.haberscience.com/hgp.htm. GLTA
TomV
Philghunt, I did not intend to imply that you were always right, only that you were amassing more shares while ecarfly looked bleak. Sorry if I offended you, I don't like to be confrontational. GLTY
TomV
I can't help but feel there is some similarity between philghunt and alwaysright (recently, mysteriously missing) on the RB board. Buying additional shares while this shell has continuously tanked puzzles me. I'm not accusing, just noting similarity? I am not a basher, I currently own 200K shares, sad to say.
TomV
My thanks to highline and philghunt for your responses. i appreciate your candor.
Tom V.
I'm new to this board. Can someone enlighten me as to what the consensus of this board is to ECFL? I have been an investor/contributor? to this company pre-split (Aug.'06). I have purchased a significant amount of shares to both lower my cost/share and to increase number of shares primarily because of a succession of encouraging pr's (a coordination with eBay for one) that had been made by Desmond. My last purchase was Oct.'06, I have essentially given up on this company since then. My mistake was not liquidating at the time of the merger news with two different companies, the last one being with an oil co.
I previously followed the Raging Bull message board, but it seems to have dried up. I guess all on that board have the same feeling as me.
My question is, why do some posters on this board continue to buy additional sharers?
Also,as a sidebar, I don't particularly care for infighting between posters, as it accomplishes nothing and wastes time, I hope this is not prevalent on this board.
Thanks in advance for any pragmatic response.
Tom V.