Who says it can affect you locally? I

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Monksdream Member Level  Tuesday, 11/13/07 02:35:07 PM
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Who says it can affect you locally? I live in Concord NC. Mooresville is 30 miles northeast. Hybrid Technologies has a manufacturing plant there.

In a letter to the editor of the Mooresville Tribune, I included recent public statement by the company.

November 14, 2007
Dale Gowing, Editor
Mooresville Tribune
PO Box 300
Mooresville, NC 28115

Dear Mr. Gowing:

I am writing to you about an issue of stock market reform that you may one day publish in the business section or the editorial pages. Although it is national in scope, I believe it affects anyone in the community who invests in equities as a means to build wealth.

I will be brief. The issue involves the selling of shares that are borrowed from shareholders—often referred to as short selling—and then collecting the proceeds from the sale on the expectation that they will decline in price. The difference between the sale price and the purchase price is a profit. This practice is entirely legal. Economists have determined that such a practice is essential to maintaining equilibrium between the forces of demand and supply in the equities markets.

What has happened, however, as it pertains to short selling, is that some market participants—most likely rogue hedge funds that operate with a minimum of government regulation--will sell shares of stock without first taking possession of those shares. This is illegal. One could compare it to my borrowing a friend’s car and selling it. In order to return it, I must buy it back. What would be both illegal and highly unethical is for me to sell the car without first having borrowed it. What I have done, in effect, is to create an IOU to the buyer.

The technical term in the stock market for this kind of practice is called fail to deliver. Although some fail to deliver instances may be due to human or mechanical error, the kind of practice that has been thoroughly documented by SEC regulators is illegal—and therefore can be described as criminal. Market participants refer to this practice as naked short selling.

An excellent source for the details of this illegal practice can be accessed at www.Thesanitycheck.com.

In my own small way, I and many thousands of other market participants, working independently and collectively, hope to create a political lobby that will address this issue and seek a redress of a grievance, which is guaranteed under Article 1 of the United States Constitution. We are aware that the small minority of naked short sellers already have a great deal of influence at the Securities and Exchange Commission. It is the laxity on the part of the SEC that allows this practice to continue.
Why is this issue so important? I believe it is because this practice destroys wealth that has been created among many small shareholders, which is then transferred to a small but exclusive group of criminals who are able to influence major brokerage firms while thumbing their noses at government regulations that were enacted since 1934.

In addition, in a period of U.S. economic history where mega companies are transferring jobs and therefore capital investment overseas, it is up the small business section of the U.S. economy to make up for the shortfall. Small companies provide most of the employment in America. We don’t live in a time when a small minority of criminals are getting rich by transferring wealth from the hands of the many into the hands of a few. They are, by default, also destroying the efforts of sincere entrepreneurs who will, I believe, be the source of most of the employment opportunities in the future.

Indeed there is a local connection. Hybrid Technologies has a manufacturing plant in Mooresville. Earlier this year, the company issued a public statement concerning unusual trading activity in its shares, listed on the OTCBB under the ticker HYBT.

Las Vegas, NV - JUNE 27, 2007 - Hybrid Technologies, Inc. (NASD OTCBB: HYBT - HYBT) www.hybridtechnologies.com, emerging leaders in the development and marketing of lithium-powered products worldwide, would like to inform its shareholders of current short activities involved in the downward manipulation of Hybrid Technologies shares.
Shareholders may directly access this Short Interest Position on a monthly basis at the following link: http://www.otcbb.com/asp/OTCE_Short_Interest.asp
The company would also like to make Hybrid shareholders aware of some suspicious stock positions of two companies in particular. Ameritrade Clearing and National Investor Services Corporation report the following positions via DTC and ADP reports.
5/11/2007 NOBO # of Shareholders 5/11/2007 NOBO # of Shares 5/11/2007 NOBO & OBO # of Shares 5/11/2007 DTC # of Shares 5/14/2007 DTC # of Shares 5/15/2007 DTC # of Shares
Ameritrade Clearing 2357 1,240,412 1,352,579 1,227,292 1,238,341 1,835,993
National Investor Services Corporation 884 617,379 644,133 587,350 587,752 1,295
In reviewing the above data, Hybrid has opened an inquiry with NASD to investigate what happened to the shares owned by 884 Hybrid shareholders held at National Investors Services Corporation. Hybrid is also curious that this transaction took place the same day as short positions need to be reported to NASD by member firms. At this time Hybrid awaits a response for this inquiry and will update its shareholders of its findings.
I am not interested in communicating to the Wall Street media. It has ignored this problem for several years. This issue will only garner national attention outside of this small coterie of editors and reporters. In fact, my last letter went to Elizabeth Cook, the editor at the Salisbury Post.

In closing, I am reminded of a message I read on a Yahoo! Finance message board. “History is filled with instances where the small voices combine in revolt and major changes come about. No action guarantees no response.”

Thank you for your attention in this matter.

David L. Jennings

913 Old Charlotte Rd
Concord NC 28027
704 782 4890

He looks at you like you owe him money.
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