more on IRAC
(newsbreak)
ITCN/IRAC 1-10 Split Thwarts NITE, Other MMs
, Editor in Chief
Intrac, Inc. was once traded on the OTCBB under the symbol ITCN, but the
company found itself the victim of a massive and merciless attack of naked
shorting by Knight (NITE) and other MMs.
So without a word to anyone, not even its own shareholders, the company
changed its OTCBB trading symbol to IRAC, and pulled off a 1-10 reverse
stock split and left the MMs in a huge bind.
IRAC stock has jumped from 0.05 to 0.17 in a few days. A last minute Friday
trade of 400,000 shares @ 0.05 - between MMs, one would suppose - makes it
look like it has fallen, but trades have already exceeded the float of
300,000 shares, according to the transfer agent.
After the split, there are said to be only 1,008,000 shares outstanding, and
CEO Dr. Joseph Trachtman supposedly holds 700,000 of those. So, MMs are in
the market and the upward pressure on the price is powerful.
Picture the plight of the MMs. Stockholders must turn in certificates for
the old shares, now worthless, in order to get the new ones. But you can't
turn in shares you don't own, and you can't give your buyers the shares you
sold them if you never had them in the first place.
That means NITE and fellow naked-shorters must buy, buy, buy at whatever
price the market demands, and there aren't that many shares for sale. If
stockholders hold fast, the price could soar. About a dozen RagingBull
message boarders conducted a share count among themselves, and by Friday
410,000 shares had been posted.
One thing MMs are almost certain to be doing is trying to borrow ITCN stock
from their brokers. Brokers, who are frequently beholden to MMs, are willing
to lend their shareholders' shares ordinarily, but many shareholders have
instructed their brokers not to lend their shares, and brokers must oblige
or risk a lawsuit the shareholder would surely win. So, MMs may find little
help there. They may simply have to pay the price of getting caught in their
naked shorting scam, and pony up the cash to buy on the open market.
(That's soooo sad. Excuse me while I get a hankie to dab at my tears with.)
The thought does arise: What if more of the companies MMs have naked-shorted
to ridiculous extremes suddenly did as Intrac has done? The idea must be
giving MMs nightmares, and nobody deserves them more. |
