***NASD Letter***
Having just read the letter for the first time, after only becoming aware of its existence yesterday, I'd like to offer a few comments based on my initial read through.
I have to confess that I am unsure exactly what the criteria is for the instigation of an inquiry of this type by the NASD Market Regulation department, I am thinking that perhaps a complaint by somebody named within a PR or a cascade of complaints by telephone or mail by noble citizens who feel something is amiss may suffice. If anybody has a more accurate idea, I'd love to know.
Having said that, I'm really quite thrilled to see that an inquiry has been instigated by the NASD Market Regulation department for a number of reasons...
Given what we know about the activities of Pink Sheet CEO's it would probably serve Investors well across the board, if all Pink Sheet stocks were the subject of an inquiry by the NASD Market Regulation department, what better way to validate the authenticity of a company and their business plan.
So lets take a closer look at the content of this letter. I think the first point to note would be that the NASD have quite clearly stated at the foot of the letter the following:
This inquiry should not be construed as indicating that the staff has determined that any violations of the rules of the NASD or Federal securities laws have occured, or as a reflection on the merits of the securities involved or upon any person who effected transaction in such securities.
Thats certainly a very fair comment by the NASD and rightly so, anybody can make an accusation, but that doesnt make it the truth, not without a full inquiry which looks at all the facts... which brings me to my next point.
The NASD it seems, are not focusing on one single fact here, by being alerted to possibly one or two issues, they have thrown a net over all of RSDS's public relations disclosures and activities surrounding their previous PR's and the acquisition of Mining Claims in San Juan County... I cant tell you how thrilled I am about this...
I will not engage in rumour about the possible reasons for this inquiry, but I will say the following. I believe that if RSDS has erred in either their activities or reporting of such, this inquiry will reveal that, and any injured parties will receive satisfaction... However, if this inquiry was instigated by individuals with a questionable agenda and who may have been connected at some point with RSDS's activites, this inquiry may have unintended consequences for those same instigators due to its scope.
I think its reasonable to suggest that if the NASD finds wrongdoing on the part of RSDS as a result of their inquiry, the stock will be resigned to the shit heap of history... by contrast, if RSDS are vindicated of any wrongdoing and their PR's are found to be accurate, I cant think of a better way to promote a stock. If they go through the NASD ringer and come out the other side blameless, it will do more for the PPS than a years worth of fluffy PR's and Pumpers could ever do...
Finally, RSDS were requested to respond to NASD by Wednesday, March 28th 2007, over 3 weeks ago, and we are just becoming aware of this letter now, and not through NASD. I see no reason for RSDS to release a PR, as per Icemans suggestion at this point, RSDS have not done so to date, much to their credit I feel, and until such time as NASD has fully concluded its inquiry, to release such a PR, in my opinion would be a ill conceived decision, and might possibly be viewed in a poor light by NASD as interfering with their inquiry. Once the inquiry is concluded it would be quite appropriate for the NASD and RSDS to update investors.
If it was the NASD's policy to protect investors by advising them of such an inquiry, they would have done so by now, doesnt that seem clear? but they havent, what we have is a leaked letter which was passed on by somebody who had access to a fax received from Rick Berman, which, I can only assume, was sent in an official capacity... The question therefore, should quite rightly be, who leaked this, and what was their agenda?
Protecting Investors is the domain of the NASD and is what they are in the process of doing by conducting this investigation... and they are doing so in a professional manner. Attempting to cast doubt on the integrity of this company by promulgating this NASD letter is a different ball game entirely... and the suggestion should not be made that it is anything but manipulation, the question is by who? and for what reason? perhaps the NASD need to look closely at those involved.
Good Luck to all....
Cheers, J.
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