Replies to post #39006 on Phoenix Associates Land Syndicate (fka PBLSQ)

[lakedweller2]

I had a cert and when it started to move up, I sent it in so I would have the ability to punch quickly. The company theory was, and there is a PR or letter to shareholders somewhere around Aug or Sep of last year, that talks the company reasoning on it, and that was to prevent shorting. I guess the thinking is that MMs can use streetname stock to short against (does not include streetname retirement accounts). However, does not stop naked shorting which is the real problem in the first place. Obviously for MMs to make markets, some naked shorting is reasonable. However, some believe that naked shorting is unreasonable and possibly explains why PBLS shares do not reflect the company claims. I think it is the lack of transparency that permits naked shorting and regular shorting. When a company does not open its books, they are prime targets for shorting. MMs that short these companies know the only way the company can defend itself is to report valid #s. Most don't report in response. I did email the company before I turned in the cert and asked for any reason I should be holding them other than for turn-in for the preferred exchange. The only reason given was to prevent shorting. I preferred to be able to act quickly if necessary rather than worry about shorting. If the company is honest about reporting, then that is the best thing that can deal with the naked shorting problem, if the #s justify the current price. Also, my broker has to make them good. Others I have talked to that invest in all levels of exchanges, use streetname for liquidity purposes and immediate on line sale capability. That is pretty much what I have gained from all this.