Drinks Americas Holdings, Ltd. (DKAM)

[sneaky_peaky]

If you want to go into the naked short area, we could spend days and days, even years as it has now been for many trying to put an end to it and this little tribe would get nowhere. Eight years ago, when we were screaming how rampant the activity was in the markets, no one would listen. Everyone was a drone at best and would look at you sideways, or worse yet, call you a conspiracy theorist. After all, there is no manipulation in our markets! How dare you speak of such things? If it were true, it would undermine our complete financial system. The market trades on pure supply and demand! Sound familiar?? Yeah right.

But since, more articles and books have been written on it that as a whole would swallow any landfill in America in its size. The plain fact is it is a license to steal by the hedges and the market makers. The SEC has tried to give its lip service on the subject. The SHO list in 2005 and since is, and will always be a joke. It has never been enforced and as it is set up, never will.

To date, it is now over $4 trillion with a T dollars that have been stolen from the American people due to naked shorting. As long as the CIA is going to wash hundreds of billions of drug money through our markets every year, no one will put a stop to it. Just the fact alone that the SEC grandfathered all existing fails to deliver when it released SHO in effect gave the criminals a get out of jail free card, and they walked away with almost $2 trillion then.

Since then, it hasn't gotten any better. The SEC since SHO was passed then passed Reg NMS that eliminated the uptick rule. This was put into effect AFTER the crash of 1929 to prevent bear raids on stocks. Essentially, any group could gang up on a stock by just pummeling the bids with short sells, and could add as many naked sells as they wish to it and drive any stock down to nothing. To date, the SEC has yet to give a justifiable reason for eliminating the uptick rule. All they've said is that market makers were using algorithmic programs to create artificial upticks anyways, and by passing the regulation it actually would slow down the process of shorting. Yes, the 300 attorneys at the SEC are probably the most criminal of all. Market reform from Obama is supposedly coming and we will see a general cleaning of house as early as next month. The SEC truly needs to be controlled by the Dept. of Justice with oversight by the Senate Banking Committee. It is the only way it will work. Otherwise, they will have to go private, and it will not contain a single individual that sits on the board, or holds any position that even remotely makes a market.

As it pertains to DKAM, your answer lies with the Depository Trust Clearing Corporation. If memory serves, they clear roughly 200 billion transactions a day. The DTCC in and of itself is a joke. A private company, they are boasting the most ludicrous profits. They do virtually nothing about the rampant naked shorting problem. They have all the exact information in their hands of exactly who is naked shorting any stock at any particular time, as well as who is in possession of current fails to deliver. They refuse to give even one iota of information to anyone as it is a breach of confidentiality to the market makers. In other words, giving out such information, they contend, would divulge the trading strategies of many market makers and financial institutions. It basically boild down to the DTCC protecting the criminals who are stealing America's wealth. They won't want to disclose any information because "their trading strategies" are the exact way and degree they are stealing from us.

Kenny gets a report every day on who holds exactly how many shares. The report also shows who is holding shares short. What the report does not show is ANY activity from a hedge fund or off shore interest. The report also does not show ANY market maker activity.

If you've been around here for any length of time, let me tell you exactly the game that is being played. Of course, at least two of the idiots will jump up and scream there is no manipulation like what I'm discussing. But of course, we know the level of intellect we are dealing with already. The same ideology that is doing the naked shorting as it is anyways.

I won't go in to the extent of the naked shorting off the PIPE in 2007. It is what it is and who knows how many phony shares ended up in the system as a result. I can guarantee you it is more than what that SEC report shows on that fails site that is floating around here. The stock of course landed on the SHO list on its initial huge run up. Of course it would!!! The market makers are never going to let the investing public make all the money they should without breaking the law in the process. So, it was on the SHO list in early 2007. It stayed off the list for 18 months and then appeared again in August with another stint in November. There was no news or any huge gain in the stock. Let me explain why it appeared these two times.

Many of you probably know that NITE has been cited by the SEC for market manipulation more than any other market maker. Part of the reason SBSH left the stock is the very reason NITE took control of the stock....liquidity.

On any given stock, a market maker must post a buy and sell side for any order. If I want to buy 25000 shares at .18 on the bid, and my order gets sent to the market, then which ever market maker it routes to will display my order as a minimum 5000 shares even though there is 25000 shares there. That same market maker MUST post a sell side of at least 5000 shares somewhere. Now, for the most part, 99% of market makers out there are trying to execute an order which is my BID for 25000 shares. But, let's say that the stock goes up and my order does not fill and in the process, that market maker who was forced to display 5000 shares on the sell side has those shares bought. That market maker just sold 5000 shares that he did not have in inventory. He is now naked short the stock for 5000 shares. Normally, if the stock is moving, then said market maker will post those shares for sale at the same price or anywhere below the current price to get them covered so they are no longer naked short at the end of the day.

When it comes to DKAM however, this is not happening. The sell side of the equation is not being covered. Let's say they do it once a day for 5000 and up to 9999 shares. A stock will only make it on the SHO list if the fails or naked positions total more than 10000 shares in a given day. Let's say 4 market makers have this happen on a given day. That is at least 20000 shares and up to 39996 shares in a day that are naked shorted that nobody gets a report on and will never show up on any SHO list. Multiply that by 222 trading days in a year. That is 8.8 million shares that are in the system that are counterfeit and will never be removed from circulation UNLESS Kenny calls for a complete share certification process. He could go in and I believe by court order could force the market makers on this stock for the past 4 years to produce the buy and sell side transactions that show where any lot sold short was then subsequently covered. What ever is remaining could then be forcibly bought in on a market maker's behalf. It is experimental at this point as it is believed this process as it is being tooled now could bankrupt the entire US economy. Quite simply because of the implications of forcing buy ins on 11000 different stocks, not just one.

At some point, NITE realized they could make a fortune on this process. They figured out that when a bidder came in like the order I used above, they didn't have to post the other side at some price way up in the ozone to keep from being bought. They argued that they could post the other side of the buy sell equation with 5000 shares for sale at .19 to maintain proper liquidity. Once the order at .19 was bought and they were now naked short the stock, they could immediately slam those shares back into the bid that they were posting at .18 for me. There is just one small problem.

The 5000 shares that somebody bought at .19 do not exist. NITE manufactured them out of thin air. They then would sell another 5000 shares into their own bid at .18 they were holding for me. However, I would get none of those shares. All NITE was and is doing is creating a paper transaction to negate the naked short position they created to begin with. This is why many of you have witnessed these "mirror trades" for many months. As soon as a lot goes through on the ask, the same amount gets slammed back into the bid. Or, several orders on the ask, and then order totalling all those shares hits the bid. This is why many of you know for a fact something is fishy. You send an order to display at a certain order price. You see your order pop up, and almost immediately shares hit that bid of yours. Just one problem. You didn't get a single one of those shares. NITE did.

This is called front running and NITE is the #1 culprit of it in the entire US financial system. The net result is NITE is making millions of dollars penny flipping trades on non existent shares.

One thing happens as a result. They sold 5000 non existent shares at .19. They slam 5000 shares back into the bid at .18. They clear the paper naked short and are now net long 5000 shares from their non displayed bid. So, what do they do? Of course! Put them back up for sale on the ask a penny higher! Or more if they wish. And there is your instant interference on the stock when it appears all the shares were bought at .19, here comes some more of them.

Now, the game changed and it has made it tougher for NITE. A few weeks back FINRA passed a new rule making it almost impossible for these criminals like NITE to keep front running customer orders. However, it was business as usual for NITE until FINRA continued to keep getting slammed with calls and letters that NITE was still manipulating stocks including DKAM. That is why you have seen the "mirrors" stop over the past 2-3 weeks. So, they found a new way to play the game. That would be working the stock in partial pennies of non displayed bids and asks. That way the customer can't scream front running. Display the customer order and then put their order ahead of it NON displayed. Still front running but since the prices are not completely identical, then FINRA cannot get involved. This is why you see what appears to be minimal bid support and ask resistance. Because most of the MMs are not displaying the liquidity on the stock.

There is every reason to believe this would be seller on DKAM is not a shareholder at all but easily could be NITE liquidating its inventory. They traded a lot of shares in the .13 to .18 range since early December and this is the culmination of all those front run orders and mirrors that put continual pressure on the stock. They are selling them at a nice tidy profit and could easily do so until those shares are exhausted, or until they decide they want to start the process all over again by algorithmic program. As I said, they will scream immunity because as the rules state, they must offer at least 5000 shares on each side of every transaction.

Take it a step further and let's suppose an actual seller shows up to sell 25000 at .19 and it routes to NITE. NITE must then put up a bid of at least 5000 shares. If somebody sells into that bid, then NITE is long those 5000 shares. They don't normally want them so they just put them on the ask again to sell at a nice tidy profit. So, the bids get bought and they become immediate sell resistance. The asks get bought and they get slammed back into the bids as sell pressure. So, net result is anything NITE does in the market destroys any upward movement on any stock.

When it comes to DKAM, the process becomes even more lucrative. Every penny at this particular level is about a 6% gain. Could you imagine how much money you could make over the course of a year if every single trade you made, thousands of them, returned 6%?? NITE traded close to 10 mil shares on DKAM last year. So, they made probably at least $500K just off the spreads. If they are doing this kind of average on 1000 OTCs and pinks, then they are raking in $500 million a year or more. Now you can see why they are always the top market maker every day on the OTC. Simple. Because they are the consumate thief and every time they think they've found a way to stop them, they come up with a new way to steal from every one.

It seems some other folks are doing a little bit of accumulating between the bid and ask on non displayed orders. Some of these market makers have never appeared on the stock yet they executed trades.

http://www.otcbb.com/asp/tradeact_mv.asp?Issue=dkam&searchby=issue&sortby=volume&Month=12-1-2008&downloadname=mv200812.exe&view.x=32&view.y=9