PanAmerican BanCorp (PABN) Message Board

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Microcap & Penny Stocks : PanAmerican BanCorp (PABN)

PABN 0.00001000

0.0%

Nov 14 9:30 AM EST

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To: jhild who wrote (17754)	11/6/1998 9:59:00 PM
From: Currency	Read Replies (1) of 43774

Not paid. Nada. Zippo. Zilch. Free service. Believe it or not. It doesn't matter to me what you believe. How about you? Shorting? ******************************************************************** Undeclared Short Sellers Undeclared short sellers don't borrow the stock they are selling. They (in most cases) don't even have to pay the margin requirements for their position. They are betting on (and trying to create) total failure of the public company. The odds of failure in small business are better than 98 to 2. There are many ways a public company can confirm an undeclared short position in their stock. One way is to use the response to the company's annual general meeting. The company can add the issued stock (IS) and the short interest (SI). The sum is the stock available in the company's market. Now add the known shareholder positions (KS) and the street stock proxies (SP) If the (KS+SP) sum is greater than the (IS+SI) sum, you have an undeclared position in your stock. Most street stock owners (held in street name at a brokerage firm) don't even submit proxies. You can estimate the size of the undeclared short position by multiplying the stock proxies by 1000. This assumes 10% of the street owners submitted proxies (an estimate, by the way, which is unusually high). When public companies do this comparison they often learn they have 3-7 million shares short and undeclared. The limiting of access to undeclared short selling was supposed to be the Equity Reform Movement but it hasn't limited the practice. It excludes most retail brokers, newsletter editors, money managers and anyone on the fringes of the internal working of the market. Undeclared short selling networks include a few powerful market insiders, a couple of politicians, and a few financial powerhouses. Their motto: "You can never sell too much stock." It is estimated these individuals gross over a billion dollars annually, making it a very big business. How Can Undeclared Short Sellers Create Nonexistent Shares? The trading system is responsible for some of it but most nonexistent stock comes from offshore tax havens. It is impossible to trace the beneficial owner. The nonexistent stock trades several times and comes to rest within the control of the undeclared short selling group. Undeclared short sellers have enough power to force the company to issue more stock, if necessary. It works because the trading system lacks closure. The monthly brokerage house account statements aren't tied to specific shares issued by the public company. The client account statement is a "claim" of sorts on shares. It does not represent actual ownership of share certificates. You end up with an open-ended option on the stock you buy - and no actual ownership. Nine times out of ten your brokerage firm loans your shares to the shorts (short sellers) on settlement day!!

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