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Re: flyingrobots post# 71686

Tuesday, 03/08/2011 9:04:02 PM

Tuesday, March 08, 2011 9:04:02 PM

Post# of 83044
Been away from the board awhile so I am not sure about the video you are referring to.

Naked Shorting continues to be a huge problem in especially the pinks and OTC BB stocks.

I have seen companies claim they were being Naked shorted in huge amounts when in fact management had issued and sold unregistered shares instead

Could give you the name of one recent one but it is off topic.

The most notable of course was the to da moon stock CMKX.

That one is on topic because they called for a massive cert pull.
Hundreds of Billions of stocks were pulled in cert form.

They called for the paper cert pull which eventually just cost investors more with nothing in return.

I was told by my Broker at that time that shares held in electronic cash accounts could not be Shorted but shares in margin accounts could.

I got paper certs anyway and they don't even make nice wallpaper.

By all means make your own decision just sharing some of my own experience in the matter.

Having been through it myself at considerably less cost than you quoted I find it was a complete waste of time, effort and money in my case.

This is a different stock so should well be considered on its own merits.

From what I can see this could be one of the few BK companies that could emerge with shareholders intact and still holding value in their shares.

That already makes them unique.

Canadian Tax laws make certs a greater risk.

In order to declare a Capital Gain or Loss the shares must be disposed of.

If you get the certs as I did and the stock becomes non trade able you can no longer redeposit them into some brokerage accounts. Mine was one of them.

You can therefore never dispose of the shares should things go bad.

There are ways to write off those losses however if they had remained in electronic form.

BK companies have to be considered at risk to become untradable despite appearances. They are extremely risky and can turn quickly.

This one could also turn for the better and already has.

It could also turn for the worse.

I wish you well in your decision but have been burned on paper certs myself in the past and hope the same doesn't happen to you.

This will always be a favorite board of mine.

Good luck to you all.

eye

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