Might want to look at PCBM. Shorts fixing to get BUSTED!
News September 07, 15:22 Eastern Time
PCBM Shareholder's Group Demand Certificates To Eliminate Short-Selling
AMARILLO, TX, Sep 07, 2000 (INTERNET WIRE via COMTEX) -- A group of 363
individual shareholders of Pinnacle Business Management Systems [OTCBB:
PCBM], organized as the PCBM Shareholder's Group, has completed their
effort to request all of the "float" shares into certificate form,
according to Jeff Andle, spokesperson for the group. "Mr. Andle's
statement is based on the collective reporting of the group of
shareholders and the best available estimates of the
available free-trading shares, as well as certificate requests of 10.5
million shares by a single investment fund anchoring the effort," said
Bill Kinkead, legal counsel for the group.
"One has to assume that based on SEC filings and other public documents
that there are 29.5 million free trading shares in circulation," said
Andle. An additional 11.6 million shares are believed to be frozen in
certificate form; these additional shares being associated with the
retirement of 105 million shares discussed in PCBM's press release dated
July 21, www.pcbm.com/press/000721.html, and Gordon and Associate's press
release on the same date, www.pcbm.com/press/000721b.html).
Further to this effort, individuals within the PCBM Shareholder's Group
have collectively requested certificates on at least 6 million additional
shares that are expected to be undeliverable by brokers and
clearinghouses. The resultant "paper call", according to Kinkead, is
expected to have dramatic consequences on several broker-dealers and
market makers that are believed to have enacted trades in which their
clients sold the stock short. Additional certificate requests are
anticipated by members of the PCBM Shareholder's Group, above and
beyond those reported in this release. "Litigation may eventually be
necessary to preserve the rights of several thousand shareholders of PCBM
who are unable to obtain certificates for their shares," said Kinkead.
This action was taken by the Shareholder's Group in response to a
perceived short position of at least 40 million shares. Initially,
starting June 19, 2000, the shareholders attempted to "buy up" the float;
the effort met with increased selling pressure. "In conjunction with this
effort, the company asserts that it has not increased the number of free
trading stock certificates, which leads the shareholders to assert that
short selling is still occurring," said Andle.
As a result, the Shareholder's Group determined that the removal of
shares into certificate form would be necessary in order to stop the
short-selling. Today's announcement culminates a two-month effort by a
loosely confederated group of over 200 individual shareholders in the US
and Canada and another 163 individual shareholders in Belgium.
Shareholders within the Group contend that they collectively own over 82
million shares while the company states that only 42 million free trading
shares exist. The effort to request all of the company's stock into
certificate form was severely hampered by two factors. (1) The Belgian
shareholders claim over 16 million shares; however they uniformly report
that obtaining certificate form paper on US stocks is difficult.
(2) More serious are the strict constraints associated with IRA
accounts. Demands for certificates from IRA's are treated as a premature
withdrawal and are potentially subject to strict tax consequences if not
returned within 60 days. "This effort has indicated that shares held in
IRA's are unwittingly offering a "safe haven" of almost untouchable stock
in "street name" against
which market makers and large institutions can sell short," said Kinkead.
According to Andle, this is one of many stocks on the OTC bulletin
boards that is facing heavy short selling and the efforts by the PCBM
Shareholder's Group prompted similar efforts at Finder's Keepers [OTCBB:
FDKP], Titan [NYSE: TTN], and may be expected to generate similar efforts
in other stocks suffering from perceived shorting.
About Kinkead Law Offices and the 363 member PCBM Shareholder's Group:
Kinkead Law Offices is located at 6937 S. Bell, Suite G, Amarillo, TX
79109.
Bill Kinkead, managing attorney of the firm, may be contacted by mail at
that address and by email at bkinkead@cincadi.com. The Firm maintains a
website at www.billkinkead.com/pcbm to provide information and a forum for
the 363 member PCBM Shareholder's Group and other PCBM shareholders
worldwide. Telephone inquiries should be directed to (806) 353-2129.
Safe Harbor for Forward-Looking Statements:
Except for historical information contained herein statements in this
press release are forward-looking statements that are made pursuant to the
safe harbor provisions of the Private Securities Reform Act of 1995.
Forward-looking statements involve known and unknown risks and
uncertainties, which may cause the company's actual results in the future
periods to differ materially from the
forecasted results. These risks and uncertainties, include, among other
things, product price volatility, product demand, market competition, risk
inherent in the company's domestic and international operations,
imprecision in estimating product reserves and the company's ability to
replace and expand it's holdings.
This press release is based on the best available data and is subject to
potential errors of reporting or counting.
CONTACT: Bill Kinkead
Kinkead Law Offices
806-353-2129
Copyright 2000 Internet Wire, All rights reserved.
Rob D. |
