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Replies to #61907 on MediaG3 (MDGC)
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kertz

05/10/12 11:55 AM

#61908 RE: TheSecretsOfWar #61907

Thanks for clearing that up again
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k9painter

05/10/12 12:22 PM

#61915 RE: TheSecretsOfWar #61907

which at least partially explains why we are seeing a rise in pps, nobody dumping new shares in
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Cassandra

05/10/12 1:19 PM

#61932 RE: TheSecretsOfWar #61907

A DTC "chill" does NOT mean that a company can't dilute. A chill means that one or more of the services you listed (deposit, withdrawal or transfer). If all services except custody are suspended, the DTCC issues a legal notice refers to this as a DTC Global Lock or just a suspension. I have seen stocks with Global Locks continue to dilute, in one case massively dilute.

I have seen no verification that the DTC has suspended any of it's services for MDGC stock. TDA won't allow buying of of the stock and has supposedly said a DTC chill is the reason, but the specific service(s) chilled have not been posted here.

A DTC chill can be an ominous sign as it may indicate there is a concern about the legitimacy of shares in the float (such as unregistered, non-exempt shares) and concerns about the transfer agent. If there is a chill, Val Westergard should acknowledge it and see if it can be resolved.

There is an iHub forum for discussion about DTCC issues which includes a list of stocks that have been included in legal notices regarding suspension of services or being exited from the NSCC CNS. MDGC is not on the list:
http://investorshub.advfn.com/boards/board.aspx?board_id=23867

Keep in mind that many brokers do not use the DTCC for clearing and settlement. That said, many do and I haven't seen anyone state that a broker other than TDA has placed restrictions on trading MDGC stock.