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Re: oryx post# 1113

Tuesday, 01/11/2011 4:40:40 PM

Tuesday, January 11, 2011 4:40:40 PM

Post# of 5489
Here's how RegSHO Short Selling Compliance Alerts work...

Buyins.net RegSHO Compliance Alerts help to protect companies from short sellers and market makers that are violating the more stringent RegSHO market integrity provisions recently enacted.

The data they offer on a daily basis is used to calculate if a fair market is being made in the shares of a company. They come up with a "Friction Factor" which determines if there is normal or abnormal behavior in the price action of the stock when compared to the buying vs. selling trading statistics.

Here is how to understand Friction Factor:

1. If Friction Factor is positive, more buying than selling caused price to rise
2. If Friction Factor is negative, more selling than buying caused price to fall
3. If Friction Factor is 0, there was no discernable activity either way
4. If Friction Factor is abnormal, it means that more buying than selling caused the price to drop, which is evidence of manipulative activity. In some cases more selling than buying can cause the price to increase. While this is rare, it must be noted as well.

By signing up for our RegSHO Compliance Service, your trading is monitored daily and they identify short selling, illegal short selling, manipulative market maker activity and alert the media when a short squeeze begins and when forced buy-ins occur because they were able to get broker dealers, FINRA or the SEC to force “buy to covers” upon short sellers that have not located, borrowed and delivered shares shorted by T+3.

Here are their unique data sources:

1. Nightly Threshold Security Lists ("Naked Short Lists"): data comes from AMEX, NASDAQ, NYSE, OTCBB, PINKSHEET exchanges directly.
2. Daily Size of Failures to Deliver ("Size of Naked Shorts on a day to day basis): directly from SEC
3. Daily Short Sales Times and Sales Data: data comes from AMEX, NASDAQ, NYSE, OTCBB, PINKSHEET exchanges directly.
4. Brokerage firms that trades go through: data comes directly from AMEX, NASDAQ, NYSE, OTCBB, PINKSHEET exchanges
5. Names and positions of short sellers with assets under management exceeding $100 million: data will come directly from SEC
6. Blue Sheet Data Requests: They deal directly with FINRA and SEC to alert them as to which stocks and which brokerage firms SEC and FINRA need to investigate.
7. Trading Statistics and Friction Factor are based on data provided by all US stock exchanges and proprietary analysis of the activity.

The data they provide is extremely useful for the following reasons:

1. Stop naked short selling in the company you are covering
2. Break the market maker hold on Level II box causing so much price friction
3. Their SqueezeTrigger Reports that cross newswires and are sent to our 720,000 users help break the rest of the shorts
4. Discourage new short sellers from shorting your stock
5. Stop the negative perception that dropping stock price places on normal day to day business operations
6. Combined all of these facets help to stop the daily drain that the short attacks have on the company.

Here is a quick technology overview: http://www.buyins.com/centurypacificbrochure.pdf

Here is a quick background doc: http://www.buyins.com/images/tomronk.pdf

They issue 8 different types of reports:

REGULATORY & COMPLIANCE NEWS

• Friction Factor - market maker surveillance system tracking Level II market makers in all stocks to determine Price Friction and compliance with new “Fair Market Making Requirements”
• RegSHO Naked Shorts - tracks EVERY failure to deliver in all US stocks and tracks all Threshold Security Lists daily for which stocks have naked shorts that are not in compliance with Regulation SHO

INVESTMENTS & TRADING

• SqueezeTrigger - 27 billion cell database tracks EVERY short sale (not just total short interest) in all US stocks and calculates volume weighted price that a short squeeze will begin in each stock (both intraday and daily short squeezes)
• Earnings Edge - predicts probability, price move and length of move before/after all US stock earnings reports
• Seasonality - predicts probability, price move and length of move based on exact time of year for all US stocks
• Group Trader - tracks sector rotation and stock correlation to its sector and predicts future moves in ALL sectors and industry groups
• Pattern Scan - automates tracking of every technical pattern and predicts time and size of move in all stocks
• GATS (Global Automated Trading System) - tracks all known trading strategies and qualifies and quantifies which are working best in real time
The reports are released over COMTEX Newswire and 500 additional financial news sites.

Each report will be posted to BUYINS.NET website which has over 725,000 unique visitors and we have a database of over 50,000 institutional investors.

Each report will be emailed to anywhere between 1,000 and 5,000 institutions that own the peer companies for the report being issued (promotes new institutional buyers in position you already own).

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