Re: 1/27/03 - Welcome to nakedshortselling.com
Welcome to nakedshortselling.com
This is the official website of the National Association Against Naked Short Selling
A National Association Of OTC Bulletin Board Companies and Investors sponsored by Investor Communications International (see: www.icihome.com)
*Please Note: This site has been established to bring members together and create a National voice for companies that fall victim to predatory trading and Naked Short Selling. Please register now to receive information by email on Naked Short Selling, news about the association and ways you can combat this illegal activity.
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PLEASE CHECK BACK FOR THE OFFICIAL NAANSS WEB SITE LAUNCH ON JANUARY 28. 2003
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This is a call to action for all OTC Bulletin Board listed public companies...
Corporate America is under siege! Not by terrorism, but rather by an unethical market practice that is destroying emerging public companies and undermining the trust of small investors. It’s called naked short selling and it is illegal, according to the rules of the NASD and US Securities and Exchange Commission (SEC). The problem is that this fact hasn’t stopped the broad group of Market Makers, Clearing Houses and Securities firms that are still using this practice to ruin hundreds and hundreds of companies across the country all in the name of profits.
What is a Naked Short Selling?
Naked short selling takes place when shares of a public company are sold but never borrowed, never delivered by the seller, and where the seller collects money for the stock that they were not required to deliver in the three day timeline prescribed under the NASD rules. The three-day settlement system run by the National Securities Clearing Corporation ("NSCC") does not ensure that shares that are sold in a transaction are ever delivered. This takes place routinely in the U.S. Securities industry.
Shareholders purchasing shares in the United States often don’t understand that even though their broker will accept their money and fill their order for a share purchase, the shares are routinely not delivered to the broker on behalf of the client. The client in most cases never knows that share delivery abuses are taking place, because they do not personally take delivery of their actual share certificates.
Naked short selling is not simply short selling. Lawful short selling is the practice of selling a stock that is not owned, but has stock that is pledged against it. The short seller is simply betting on the fact that the stock price will go down and that they will buy back at a lower level, taking profit on the difference between the higher priced sale and lower priced purchase. Short selling is completely legal and may even add equilibrium to the market. Naked short selling is not.
So how can Naked Short Selling Abuses Happen?
The simple answers is that the appropriate steps have not to date been taken by the SEC, NASD nor any other body or group to halt this devastating and destructive practice. At the same time, the system has failed. The three-day delivery rule is not enforced and firms carrying out the transactions on behalf of the naked short sellers are not reported, sued or penalized for their actions. This leaves millions, possibly billions of dollars that fall to the corporate raiders that receive the proceeds from the sales that are never filled.
Is your company being targeted?
The symptoms of naked short selling are easily detected. Have you noticed that:
- your company experiences repeated sales of stock that drive the share price down?
- your stock has traded un reasonable share volumes?
- the float of the company has increased without increased share issuance?
If so, it is likely that you are already a victim of the scheme that will deprive your company of true market value and cost you the credibility of your company. If not, you will almost assuredly become a victim if your share price should rise or volume increase to the point where your company appears on the radar of the unscrupulous groups that will attack until your resources are gone and options exhausted.
Still unsure About The Effect?
Then its time you did some independent checking. Several companies that are leading the fight against “Naked Shorting” have documented the effects and taken steps to file lawsuits. Most prominent amongst these is GeneMax Corp. (OTCBB: GMXX) Take a moment to review the history of this company or others in the suit against Market Makers and Clearing Firms. You’ll find a strong support of irrefutable proof.
What can you do to defend your company?
You can take action right now to stop this illegal and unethical practice.
I urge you to get involved now. Take action by joining the National Association Against Naked Short Selling abuses. Our group is dedicated to seeing the abuse stopped immediately. We are forming now in order to launch our lobby in Washington at the highest levels. In the next 30 days, we intend to:
deliver a detailed brief on the short selling abuse problem to all members of government that can affect change in Congress and the Senate
meet with leading government representatives to rally support from within the highest levels of government
launch a national public relations initiative to publicize the problem and win the support of the government and the investing public
We can not do this alone. The truth is that no one OTC Bulletin Board company could do this by itself, but there is tremendous power in numbers. By banding together and leveraging the collective support of the OTC Bulletin Board companies, we can change this situation right now!
What About Exiting the DTC (Depository Trust Corporation) In Favor of Certificate Only Trading?
This option is just one of the directions being pursued by companies that are successfully fending off the actions of short sellers. You can get detailed information through Investor Communications International at www.icihome.com or by calling toll free 1-800-209-2260.
Want to end the problem?
Please join the league of OTCBB companies that are banding together to stop naked short selling abuses. Be sure and register to receive all the current news by email, as it happens. Or call toll free 1- 800-209-2260. Please act today. Together we will succeed.
On Behalf of The National Association Against Naked Short Selling
Marcus Johnson,
The National Association Against Naked Short Selling is a corporate sponsored interest group established to halt naked short selling and related activities. The group provides education and information to emerging companies and the investing public through its forums, newsletter and website at www.nakedshortselling.com.
CLICK HERE TO REGISTER FOR UPDATES VIA EMAIL
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CHECK BACK FOR THE OFFICIAL NAANSS WEB SITE LAUNCH ON JANUARY 28. 2003
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