CNN's wolfblitzzer0 comments on Investrends. Yesterday Galye Essary quoted a Yahoo poster in his news release. Today Michael Zwebner sued cnn and Wolf Blitzer so Zwebner must know its him lol
By: wolfblitzzer0
13 Jan 2005, 04:09 PM EST
Msg. 10207 of 10255
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ScamWire 100 Pull No-SHO
The long awaited implementation of SEC Regulation SHO arrived on Friday, January 7, 2004, accompanied by predictions of the exposure of massive naked short selling of stocks trading on the scam-riddled OTC-BB and Pink Sheet quotation services.
Naked Short Selling refers to entering into a short sale of a stock without making a determination that shares of that stock are available to borrow, a condition of a short sale, and the subsequent failure to deliver shares to meet settlement guidelines. Claims of naked shorting are frequently made by promoters and even management of OTC-BB and Pink Sheet companies to explain the frequent—some might say inevitable—collapse of the companies’ share price following what turn out to be baseless claims of being the next big thing. [Short sellers attempt to profit from selling a stock that they will believe will decline in price, and later buying the stock at a lower price to “cover†their position. Short selling is considered by most market professionals and academics to play a vital stock market role by providing market liquidity and by providing information used in price discovery. Short selling is also used in a variety of hedge and arbitrage strategies.]
Claims that illegal naked short selling has destroyed thousands of promising companies, led to massive job losses, and stolen trillions of dollars from hapless investors have been relentlessly published and distributed by FinancialWire, a news distribution service of the penny stock promotion service Investrend. Scarcely a day passes without FinancialtWire publishing yet another claim of the horrors of naked shorting and engaging in obsessive ticker spamming of the securities they claim are involved in naked short attacks. While the specific companies named varies from time to time, the general count—and the eau de sewer emitted by the bulk of the involved companies—has led message board critics of penny stock scams, and of Investrend, to refer to the list as The ScamWire 100. Investrend is aided in its hyperbolic claims by a site that is closely allied with them—some say joined at the hip—www.investigatethesec.com, publisher of StockGate Today, an Internet newsletter self-described as reporting the issues of securities fraud, and by blogger Mark Faulk of the eponymous Faulking Truth.
The major substantive change Regulation SHO implemented as regards OTC-BB and Pink Sheet quoted securities, was the imposition for the first time of delivery or close-out requirements on Market Makers with delivery fails in these securities. Market Makers continue to be exempt from locate requirements for sales of these securities in the course of bona fide market making activities, but they are no longer allowed to carry open fails beyond the new SHO requirements if the fail-to-deliver position in a security at the NSCC meets the threshold security criterion of a fail of 10,000 shares or .5% (1/2%) of the total outstanding shares of a security, whichever is greater.
A centerpiece of SHO enforcement is the daily publication of the threshold security list by the NYSE, the AMEX, and the NASDAQ. The NASDAQ threshold list includes national market issues, small cap listed issues, OTT-BB quoted stocks and Pink Sheet quoted stocks, the latter two classes of securities being the ones about which the more outrageous naked short claims have been made.
Not a single one of the ScamWire 100, however, made the list. Not a single security claimed as a centerpiece of the financial scandal of the century had fails to deliver amounting to as much as the very low SHO bar of one half of one per cent of outstanding shares.
Not one, dear readers, not one.
The hysteria, the hype, the court-clogging lawsuits by scams like JAGH, NPCT, GMXX and all the others are a lie. A blunt word, but an appropriate one.
FinancialWire lied, Patch lied, Faulk lied, and the promoters of the BB scams that claimed a naked short lied. The O’Quinn law firm lied in their oft dismissed and baseless lawsuits.
Don’t look for the promised Dateline expose anytime soon. Perhaps we need an investigation of the owner of www.investigatethesec.com and its tie in’s to known Canadian scam stock promotion firms.
Some of the scholarly types at the Bar are preparing an analysis of the SHO list. Look for that in the near future.
By: labidophorous
13 Jan 2005, 03:24 PM EST
Msg. 63522 of 63530
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