From: Art Gecko Sent: June 20, 2005 To: rule-comments@sec.gov Subject: File No. 4-500
USF11, This had all been hashed and rehashed before.
REFERENCE:
SEC File No. 4-500. Request for Rulemaking Regarding Member Records of "Short" Positions and Reporting and Public Dissemination of Aggregate Positions by Security
Once the reverse split was performed, the box in level2 stayed blank, no MM's since early morning 05/17/05. An MM showed up EFGI on the offer, selling the shares $3.50 to start, WAAAY before Ex-Date 05/23/05. Then shortly later a PR came out stating it has finalized a Merger Agreement with DigiKidz Holdings, Inc, and has also filed with the State of Florida to change its name to Media Magic, Inc. after effecting the Merger.
Well, it appears the company jumped the gun, thinking they had already forward split the shares and had begun a news release and dump campaign. They sold a total of 34,853 shares, shares that have due bills attached entitling the buyer to the Ex-Date forward split!
GVRP open high low close change volume 05/17/05 3.50 4.75 2.90 3.75 +0.25 34,853 05/16/05 0.00 3.50 3.50 3.50 +0.00 0 05/13/05 0.00 3.50 3.50 3.50 +3.50 0
Now the company will have billions of shares out beginning Monday 05/23/05, just from the shares sold on 05/17/05 alone. They have a mess at hand, calls made confirmed the forward split has not been performed yet, calls to transfer agent showed there was 3 shareholders at the beginning of the day. Shares were sold, and the buyers are having a really fun time, if nothing else, it's worth the entertainment value. Many have bought their admission ticket and having a ball!
For stock splits, the date that the share price changes to reflect the split.
Definition 2
For dividends, the first day of the ex-dividend period. The ex-date was created to allow all pending transactions to be completed before the record date. If an investor does not own the stock before the ex-date, he or she will be ineligible for the dividend payout. Further, for all pending transactions that have not been completed by the ex-date, the exchanges automatically reduce the price of the stock by the amount of the dividend. This is done because a dividend payout automatically reduces the value of the company (it comes from the company's cash reserves), and the investor would have to absorb that reduction in value (because neither the buyer nor the seller are eligible for the dividend). also called ex-dividend date. http://www.investorwords.com/1817/ex_date.html
record date Date, set by the issuing in order to be eligible to receive a declared dividend or capital gains distribution. The date is also used by the NASD to set the ex-dividend date. also called date of record. http://www.investorwords.com/4095/record_date.html
payment date The date on which a dividend, mutual fund distribution, or bond interest payment is made or scheduled to be made. also called distribution date. http://www.investorwords.com/3635/payment_date.html
Due Bills A printed statement serving as evidence of the transfer of a security from the seller to the buyer. The statement details the breakdown of the amount owed by the buyer to the seller, such as security cost, dividends, interest, and any other charges. http://www.investorwords.com/5528/due_bill.html
Posted by: Jim Bishop In reply to: Art2Gecko who wrote msg# 44396 Date:5/18/2005 11:01:34 AM Post #of 44443
GVRP Okay here's the deal.
Brendy at Interwest told me there were 33 million shares out as of close yesterday. She could not tell me how many of those are restricted. She said that is post R/S but she didn't seem to know about any F/S.
I said, that makes no sense. If that is before the F/S and there is a 3 million to 1 F/S coming Monday, that means there will be 99 TRILLION shares out Monday morning...how many do they have authorized. That's when she passed me on to Lorraine. http://www.investorshub.com/boards/read_msg.asp?message_id=6383966
Posted by: Jim Bishop In reply to: Jim Bishop who wrote msg# 44403 Date:5/18/2005 11:04:15 AM Post #of 44445
GVRP conversation with Lorraine at Interwest.
Lorraine confirms there are 33 million outstanding today. To make long story short, they adjusted their system for the 3 million F/S last Friday the 13th which is record date.
I told her that is wrong, that the F/S doesn't actually take effect until Ex Div date and NASD has set that date as May 23rd, Monday. She said, "that's not how we do it".
LOL I said, well that's how NASD does it and anyone selling those shares before Ex date, sells the split shares too.
Posted by: Jim Bishop In reply to: Wayne R who wrote msg# 44511 Date:5/18/2005 12:21:14 PM Post #of 44525
EVERYONE! I'm saying this once for now then I gotta get moving.
Brian at NASD Customer Complaints just called back after confirming with Nasdaq that GVRP ex dividend date it May 23 and it is trading Due Bills redeemable and yes....if I own it Monday morning I will be owed 3 million shares for every one share I own and they are due to be paid to me on or before the Due bills date of May 25th.
Nasdaq agrees.
LOL Brian adds, "good luck Jim, I just hope that paper is worth something"