Replies to post #94739 on Paychest Inc (PYCT)

[Trum]

All a transfer agent does is handle the share "accounting" and reporting so as a company you don't have to. It does make it harder to dump off shares and but it does not stop them....and that is when the TA plays hardball....they have to keep it above board or they are taken down too.
I doubt they would shut down pyct this soon even if they have solid evidence of insider illegal activity...(striping off restrictive legends and dumping) It takes time and all the Chill does is buy more time while keeping a company from dumping off more.
Did the chill stop selling and what about German Brokerages? Is that also dampened by the Chill...not sure - need to research it.

[lakers17]

Get a TA so they can dump out more shares and look credible. But notice they conveniently pick a gagged TA. The bottom line is where is the product? Does it even exist? Still no evidence of any. Find Xinpro yet? And where is that 1.2 million dollar PO from over six months ago which brought buying. Highly illegal if it was a bogus order. These are the questions that need answering. Not the daily screaming of short which is a total joke in a stock like this.

[mortalmyth]

bdelect, I don't know if you have me on ignore as these questions have been addressed in a few of my previous posts.

Then why bother getting a transfer agent?

Comment: In both of the share audits the DTC uncovered reporting errors by Paychest, as they were acting as their own TA at the time. In the last audit it was found that PYCT was under-reporting their issued and outstanding shares which is a no-no. As a result I believe the DTC said enough is enough and imposed that Paychest pay for a real TA which was sanctioned by the SEC. Low and behold, PYCT had a TA within ONE month from the second audit completion.

As far as the chill is concerned the longer we wait the more evident to me there is stalling going on.

Comment: Yes, there obviously is some stalling going on. However, I believe it is on the Paychest end of things. Many shareholders have previously posted that PYCT made numerous information submittals to the DTC over the past few months. This indicates that PYCT is either not providing specifically what the DTC has requested, or that whatever is being provided is just creating more questions and/or issues. If the Chill was due to someone removing the restriction legends that is a biggie which may or may not be resolved in a timely fashion. Also, if PYCT now has to obtain a Market Maker sponsor, which I understand in a new requirement imposed by the DTC, then this may be an issue as well because of the continued missing documentation from Mr. Pillay (as referenced in the financials identified on pages 5 & 24 of the 2011 Annual Report) and the need for an independent financial audit before a MM decides to accept the liability to start making a market in PYCT.

I would think pyct would have been shut down by now if insiders were dumping, so how is there any volume at all with a chill?

Comment: The wheels of regulators move slowly and as far as I can tell this issue driving the Chill has only recently surfaced, and if PYCT isn't forthcoming with all the info and details of what may have transpired this could take a while for them to independently acquire the evidence on just who and how this happened. How long did it take for Pino to take a hit and for CES to be forced to retract some of their PRs? Regarding having any trading volume, as was noted in some of the DD posted on Chills, individual brokerage houses may elect to Chill or not chill, it's in their sole discretion. As a result, it looks like TDAmeritrade, DISNAT, and Zecco have instituted a chill, but Scottrade and E-Trade haven't.

The bottom line is that the longer the Chill goes on the worse it may be for Paychest. They best bite the bullet and be upfront in whatever may have happened. If they aren't and start to pizz off the DTC, the SEC may just step in and call for an across the board 10 day trading halt and then move towards a stock revocation. I'm sure no one wants this to happen, but it's a very real possibility.