October 6, 2006
Silver Screen Studios Requests NOBO List
Silver Screen Studios, Inc. (OTC: SSSU) management believes that "there is a significant failure to deliver position in our stock." On October 2, the company announced that as part of its capital restructuring process, it would order a NOBO list from ADP to determine the number of shares outstanding and the number of holders of the company's shares. The NOBO list is a non-objecting beneficial owners list that offers the names and share positions of the clients of banks and brokers who hold their positions in street name. Early this afternoon, Silver Screen issued a follow up press release, stating that "we have received the Transfer Agent's Shareholders list and will compare with the NOBO list." The company believes that recent selling of Silver Screen common stock is not related to actual shares outstanding. In other words, the company is alleging that there are phantom or "naked" short shares of its stock on the secondary market. Once comparing the NOBO list from ADP to the current transfer agent list, the company will be able to determine if indeed there is a short position in the company's shares. With the news out, investors began to purchase shares of stock in hope that there is a short position and betting that those short sellers would have to buy stock at higher prices to cover their short position. The move mimics recent attempts by other over the counter corporations such as American Way (OTC: AWYB) and Conversion Solutions (OTC: CSHD) to request a NOBO list to determine short positions. Each of those companies have experienced substantial percentage gains in their share price since announcing the request for a NOBO list. Silver Screen stock finished higher by $.0144, or 148%, to $.0241 on heavy volume of 145 million shares.
AI
