colorado...to go a little further with my explanation you may or may not be aware that just becoause you own the stock does not mean that there are entitys out there that will not temporarily "borrow" your stock. This is done all day every day. It is not illegal to do. When you take pocession of your certs you are taking those particular shares out of everyones hands but yours.
When a stock is illegaly "naked shorted" what happens is a MM sells shares of the stock that they do not own. This is dofferent from short selling which is to borrow shares from your broker and sell them because you think the stock is going lower. You must however "cover" that short position at some point. By covering you buy the shares, hopefully at a lower point than where you shorted it. The difference is yours to keep.
Because the SEC is not effectively policing this matter the situation is out of control. The MM's know that there is penalty to pay so they continue this ilegal practice. What needs to be done is that the SEC needs to finally step up to the plate and single out one of these broker/dealers and really NAIL them hard. They need to send a message that this practice will not continue. We might be getting close. The articles about this Senator that is taking on the commision is encouraging, time will tell us how effective his campaign will be.
When you take pocession of your shares you are effectively not allowing those shares to be touched. As a result they actually become more valuable than face value. I say this because if enough shares were pulled out of the market the price would HAVE to go up. The supply would dry up and even naked shorting would not work. No MM would be crazy enough to try this if they new that a massive amount of shares of a particular stock had been called in. Meaning shareholders trquested the delivery of the shares.
I know this is not going to happen. It would be virtually impossible to get enough people together that would be willing to participate. If it were to happen though it would be HEADLINE news. Market Makers could literally be stomped out of business in a short squeeze. The only way this could most likely occur would be for one individual to purchase enough of or ALL of the outstanding shares of a stock and then call in the certs. This "supposedly" happened with GLKCE but the fact that the stock is still trading on as much volume as we are seeing proves that this must have been some sort of hoax. The part that confuses me is allegedly there was an SEC filing stating that this man did in fact purchase all of the O/S. I don't know if that was a fraudulent, made up, filing to tell you the truth. It sure looked official and there has not been much follow up on this story so all signs seem to indicate it was in fact a hoax.
Nothing would make me happier than to see market makers get the beating they so badly deserve. They have no morals, or ethics AT ALL. They have bankrupt individuals and businesses alike and do not seem to have a second thought about the damage they leave in their wake. This is one SAD testimony about our market system. This should NEVER have gotten to the level it has and one can only hope that it is stopped SOON.
I am not trying to suggest that the stock market is an arena to avoid, but now more than ever you have to be VERY careful when entering it. ESPECIALLY the OTCBB. Illegal activity abounds here. If you are not careful you can lose everything and lose it FAST.
MSEP is one of the BEST bulletin board stocks I have EVER owned. In fact I will go so far as to say it the BEST. It does not behave like a typical penny and the reason it doesn't is because of management. They play by the rules. They file the required reports and file on time. They are VERY aware of shareholders and have proven to be friendly to the ordinary shareholder like you and me.
To sum it up, MSEP is a beautiful stock that trades on a not so beautiful exchange. We should all be so lucky as to find more stocks like this. I am quite content to have found this one though and I continue to add as the opprtunity to pick up shares "on sale" occur.
Mike
"Sort of" is such a harmless thing to say. "Sort of". It's just a filler. "Sort of" - It doesn't really mean anything. But after certain things, "sort of" means everything. Like after "I love you" or "You're going to live" or "It's a boy".
AI
