Monday, August 14, 2006 12:37:01 AM
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PORT ST. LUCIE, FL -- (MARKET WIRE) -- 03/13/06 -- Concorde Resources Corp. (OTC: CCDE) Chairman Paul Taylor and Director Kenneth Macdonald disclosed to a group of private investors how the so called "Fail to Deliver*" factor can have useful consequences to investors although only when a company's business is sound and management has been able to harness the so named Captured Capital. A name and definition for this type of strategy has been volunteered by Loftwerks Inc. CEO Dennis Ammerman as "Short Seller Captured Capital."
The term *Fail to Deliver, refers to a security sold and exchanged for purchasers' cash but not delivered to purchaser pursuant to Uniform Commercial Code (UCC) Section 8.
For further reading on this subject http://businessjive.com/nss/failureoption.pdf and http://businessjive.com/nss/jdfinnerty050505.pdf
Kenneth Macdonald stated, "In Concorde's case, Insiders and investors employed our beliefs in our business by simply purchasing more shares than we knew were legally available over a sustained period of 14 months, and in some cases removing part or all of the purchased CCDE stock from the DTCC system by successfully calling the certificates, thus reducing the genuine CCDE shares in the DTCC's Cede & Co account to a minimum."
Cede and Co is street title or nominee name for The Depository Trust Company. The world's largest clearinghouse holds shares in its street name for banks, brokers and clearing institutions in order to expedite liquidity.
Kenneth Macdonald continued, "Most of our investors and insiders had already expressed their interest in selling blocks of market purchased shares back to the Company in exchange for debt, preferential equity, or revenue share in future developments. Captured Capital appears to prevent excessive strategic FTD (Strategically 'Fail to Deliver') dilution of the common shareholders' value, although I stress that the fundamentals of the business must be strong, and correctly capitalized throughout, this strategic FTD activity adds an exciting element of stock market clockwork. Almost all successful stock promotion involves greater than historical average trading volume during a campaign. In many ways this strategic FTD ability saves investors from being burned in unscrupulous promotion schemes, the dollar value of such could be staggering without the Market Makers ability to destabilize market prices through the issuance of strategic FTD's. However, most market makers are rarely in the research business. Most allegedly rogue Broker Dealer participants who are the most likely to game the system using strategic FTD's do not read or digest research and rarely perform professional short selling due diligence. Therefore, most have no more than a vague idea what they are trading, especially when there is little or no publicly disseminated information, simply upward momentum and a symbol is enough to excite a rogue market participant(s) and its customer(s)."
Paul Taylor commented, "I am not a conspiracy theorist; however securities sold short in US public markets that haven't got a prayer of being delivered to the buyer are essentially trapped capital that, under the correct circumstances and conditions, could translate into involuntary buying power. It is now widely believed that a grandfathered strategic Failure to Deliver ('FTD') exists in the US capital markets ushered in by the SEC in Jan 2005. Private research and public allegations are emerging that decades of electronic erosion isn't just a bunch of sporadic market makers and their customers performing isolated hedging in response to sudden buying or selling bursts. As many have witnessed, the benevolent act of making a market can turn ugly when a Market Maker (s) and its customer (s) activity shifts from making a fair market to flouting its privileges. The Market Maker and its customers employing strategic FTD's as a trading strategy do so risking the full burden of being caught short, because securities can only fall to zero, they can also rise to infinity, this altruistic act of transferred risk presumably represents Captured Capital. Certainly being caught short is what was on the SEC's mind by allowing a hall pass to the decades of strategic FTD's that were established pre Regulation SHO. When will the investing public know the extent and scope of the 'grandfathered position?' The consensus of this gathering is that the grandfathered FTD's are possibly a brobdingnagian of Captured Capital."
Concorde Resources Corp operates a diversified investment, management and development company.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by CCDE may differ materially from these statements due to a number of factors. CCDE assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.
For Investor Relations:
Blue-Sky Solutions, LLC
Stephanie Soleas
(877)4-BLUE-IR
ccde@blueskyir.com
Published Mar. 13, 2006
Copyright © 2006 SYS-CON Media. All Rights Reserved.
PORT ST. LUCIE, FL -- (MARKET WIRE) -- 03/13/06 -- Concorde Resources Corp. (OTC: CCDE) Chairman Paul Taylor and Director Kenneth Macdonald disclosed to a group of private investors how the so called "Fail to Deliver*" factor can have useful consequences to investors although only when a company's business is sound and management has been able to harness the so named Captured Capital. A name and definition for this type of strategy has been volunteered by Loftwerks Inc. CEO Dennis Ammerman as "Short Seller Captured Capital."
The term *Fail to Deliver, refers to a security sold and exchanged for purchasers' cash but not delivered to purchaser pursuant to Uniform Commercial Code (UCC) Section 8.
For further reading on this subject http://businessjive.com/nss/failureoption.pdf and http://businessjive.com/nss/jdfinnerty050505.pdf
Kenneth Macdonald stated, "In Concorde's case, Insiders and investors employed our beliefs in our business by simply purchasing more shares than we knew were legally available over a sustained period of 14 months, and in some cases removing part or all of the purchased CCDE stock from the DTCC system by successfully calling the certificates, thus reducing the genuine CCDE shares in the DTCC's Cede & Co account to a minimum."
Cede and Co is street title or nominee name for The Depository Trust Company. The world's largest clearinghouse holds shares in its street name for banks, brokers and clearing institutions in order to expedite liquidity.
Kenneth Macdonald continued, "Most of our investors and insiders had already expressed their interest in selling blocks of market purchased shares back to the Company in exchange for debt, preferential equity, or revenue share in future developments. Captured Capital appears to prevent excessive strategic FTD (Strategically 'Fail to Deliver') dilution of the common shareholders' value, although I stress that the fundamentals of the business must be strong, and correctly capitalized throughout, this strategic FTD activity adds an exciting element of stock market clockwork. Almost all successful stock promotion involves greater than historical average trading volume during a campaign. In many ways this strategic FTD ability saves investors from being burned in unscrupulous promotion schemes, the dollar value of such could be staggering without the Market Makers ability to destabilize market prices through the issuance of strategic FTD's. However, most market makers are rarely in the research business. Most allegedly rogue Broker Dealer participants who are the most likely to game the system using strategic FTD's do not read or digest research and rarely perform professional short selling due diligence. Therefore, most have no more than a vague idea what they are trading, especially when there is little or no publicly disseminated information, simply upward momentum and a symbol is enough to excite a rogue market participant(s) and its customer(s)."
Paul Taylor commented, "I am not a conspiracy theorist; however securities sold short in US public markets that haven't got a prayer of being delivered to the buyer are essentially trapped capital that, under the correct circumstances and conditions, could translate into involuntary buying power. It is now widely believed that a grandfathered strategic Failure to Deliver ('FTD') exists in the US capital markets ushered in by the SEC in Jan 2005. Private research and public allegations are emerging that decades of electronic erosion isn't just a bunch of sporadic market makers and their customers performing isolated hedging in response to sudden buying or selling bursts. As many have witnessed, the benevolent act of making a market can turn ugly when a Market Maker (s) and its customer (s) activity shifts from making a fair market to flouting its privileges. The Market Maker and its customers employing strategic FTD's as a trading strategy do so risking the full burden of being caught short, because securities can only fall to zero, they can also rise to infinity, this altruistic act of transferred risk presumably represents Captured Capital. Certainly being caught short is what was on the SEC's mind by allowing a hall pass to the decades of strategic FTD's that were established pre Regulation SHO. When will the investing public know the extent and scope of the 'grandfathered position?' The consensus of this gathering is that the grandfathered FTD's are possibly a brobdingnagian of Captured Capital."
Concorde Resources Corp operates a diversified investment, management and development company.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by CCDE may differ materially from these statements due to a number of factors. CCDE assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.
For Investor Relations:
Blue-Sky Solutions, LLC
Stephanie Soleas
(877)4-BLUE-IR
ccde@blueskyir.com
Published Mar. 13, 2006
Copyright © 2006 SYS-CON Media. All Rights Reserved.
Don't trade based on my comments. Meanwhile, got cabbage?...will trade.
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