Matty,
Do you actually believe, if there was really something wrong here, that the company or the TA would be telling people about it over the phone?
You folks need to be asking the right questions. I am trying hard to help you get to the right questions.
Questions like, "What happened to the older investors shares which still show up in their accounts today and still sell when they hit the sell buttons. Does that mean that the new buyers are getting new shares? Is delivery actually happening? Or, are we seeing "Share Entitlements" like the Baron was talking about.
Being on the REG SHO list is an absolute indicator of shares not being delivered. An astute investor would not be trying to insult a knowledgeable investor who has been following this stock for years and would, instead, be trying to find out why those shares are not coming forth.
There are only a few possible answers.
You have someone naked shorting a very thinly traded stock. Nice idea, but why would they be playing for nickels and dimes. I mean, if they are naked shorters and are in that business, there is no money here to be made. Why waste time here for nothing when there are other, much more naked lucrative, deals to be had?
Market makers playing around with naked shares selling Share entitlements and then buying them back later at a loss to the customer. That would make a lot of sense. In fact, there is probably a lot of that going on since, according to the filing at the Nev Secy of State, almost the entire issue is held by insiders. That may mean simply that there are no real shares available for sale at all and naked shorting is the only market in town. That always means lose lose for the consumer buyer.
Another option, and the one I keep hammering here, is the sheer numbers of old shares still appearing in buyers accounts. The brokers have no reason to remove those shares from accounts since they were originally registered with the SEC and NO DE-REGISTERING DOCUMENTS HAVE BEEN FILED WITH THE SEC. That means that the shares are probably being sold and no delivery is happening as the TA is not honoring requests for transfer of the old shares. ONE OF YOU SHOULD BE FORMULATING THAT THOUGHT INTO A QUESTION AND ASKING THE TA ABOUT IT. I would do that myself but nobody here believes anything I post anyway.
Remember, getting on the Reg SHO list takes some work. It takes a minimum of 5% of the Authorized Shares being in Share Entitlements (Or in this case about 7.5 million shares) not being delivered for a minimum of 13 consecutive days beyond the original 3 day delivery window (that's nearly an entire trading month for you folks to consider) just to make the list. How many shares have you seen change hands in the market during last 45 days or so? Is it my imagination? Or is it just over 7 million shares? Would that mean that everything selling since the big August push started has been naked shorted? Now there's a question you might want answered.
Now, in today's no-paper shares market, delivery times beyond 24 hours are considered rude.
AI
