IPMG - International Precious Minerals Group Message Board

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Gold/Mining/Energy : IPMG - International Precious Minerals Group

IPMG 0.0001000

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Mar 7 3:00 PM EST

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To: iwannaride0 who wrote (223)	10/27/2005 5:59:48 AM
From: rrm_bcnu	of 799

The SEC adopted Regulation SHO to curb abusive short selling. Rule 203 under Regulation SHO, which became effective January 3, 2005, prohibits a broker-dealer from accepting a short sale order unless it has arranged to borrow the security or has reasonable grounds to believe that it will be able to borrow it before the settlement date. It also requires the broker-dealer to enter into a bona-fide borrowing arrangement before executing an order to short sell any equity security that has been identified as a ‘threshold security’. The threshold list includes any equity security that is either exchange-traded or is issued by a public reporting company for which aggregate fails to deliver at a registered clearing house amount to (a) at least 10,000 shares which represent (b) at least one-half of one percent of the issuer’s outstanding shares. It also requires the clearing house member or the clearing house to take action to cure all fails to deliver threshold stocks that persist for 10 days after the normal settlement date. That equates to a total of 13 days within which the naked shorted shares can dilute the float of an equity, causing the stock price to decline. In the case of IPMG, it has been listed on the REGSHO for 8-9 days, meaning that the naked shorting very probably has either ceased, or remains a nascent reversal of equity price. Such a reversal can be the result of strong demand that moves the offer price upward. This "short squeeze" can spiral the share price as the short sellers attempt to cover large positions in an environment where few are selling shares at any price. That very well could occur if a PR is released that defines the extent of in-ground reserves for the Cambodian properties or indicates further property acquisitions in South East Asia or Africa.

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