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jbsliverer

05/11/12 6:03 PM

#25332 RE: k9painter #25331

You must of missed this post. Again, just because the DTCC denies one or more of their services, DOES NOT stop dilution, just makes it more of a hassle and more expensive which in turn just increases the possibility of even more dilution. MDGC sure reeks of manipulation for dilution. Black Sculls, restricted tickers, certain brokers not wanting to deal with them, no valid fundamentals, no valid address (last address consisting of a 10X10 office with a desk and two cell phones on the floor), erroneous financials, unexplained sudden rises in pps in a thinly traded stock, and the SEC informing the DTCC of dubious shares coming into the market are not signs of any "lack of selling by the company", but the opposite of that.

I called the DTCC back with the full CUSIP number of 58448D109 and learned that MDGC is indeed non DTC FAST-eligible. The only service suspended ("chilled') is the deposit of new certificates due to a concern they were notified about by the SEC about unregistered, non-exempt shares entering the market.

This only means that holders of new (dilution) shares who wish to sell can't do so by depositing their certificates with DTCC-affiliated brokers. However there are many non DTCC-affiliated brokers that self-clear and could be used for deposit of new (dilution shares). It also means that the DTCC charges higher fees to its affiliates brokers for settlement and clearance of MDGC stock.

I was also told that TDA is self-clearing and not an affiliate of the DTCC. TDA is apparently restricting the purchase of MDCG stock because they don't want to undergo the expense and hassle of settling buys with physical certs.


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