DCI Telecommunications - DCTC Today Message Board

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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today

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To: Steven R. Bergman who wrote (11758)	11/29/1998 11:40:00 AM
From: Colin Cody	Read Replies (3) of 19331

if a company has 25 million shares outstanding and 5 million of them are held in tax-deferred accounts, and there is any way to ensure that tax-deferred shares are not loaned to the shorts, then it seems to me it'd be very useful to be able to add the number of tax-deferred shares to the "certified" ones to get closer to being able to determine what the actual legally loanable number of shares really is. I presume there's a basic truth relative to to the loanability of tax-deferred shares of which I'm simply ignorant. Can anyone enlighten me? Your confusion is because anyone is allowed to post their thoughts and not everyone knows what they are talking about, and of those who DO know what they are talking about some are telling the truth and others have their own agenda to mislead. As you can see, the odds can be stacked against you if you are not already up to speed! (g) "Readers beware" is always the cautionary watchword with internet investment discussions. There is basically very little difference to a Company if the stock was purchased by an IRA or by an individual. Not the least of which is by the fact that relatively FEW shares of a Company are held there. Each share gets a vote. Each share is worth the same. Each share is easily transferable into or out of an IRA. So for most practical purposes there IS NO DIFFERENCE. The shares of DCI, specifically are NOT loanable shares, the fact that they are not in IRAs (which are never "loanable" to the public) notwithstanding. The reason DCTC is not loanable (to other parties) has to do with the fact that they MAY NOT be held in "Type 2" accounts, by law. The law says a stock traded on the OTC-BB MAY NOT be held in a "Type 2" account. This bothers many people. If the Company's shares were traded elsewhere they MAY VERY WELL BE "loanable" but if on the OTC-BB they simply are not loanable. Now "loanable" means some stranger borrowing those shares so he can sell them "short." "Loanable" in the above does not mean taking a temporary loan from your IRA of those shares YOURSELF. You certainly may borrow those shares from your own IRA, as I posted earlier. See the Income Tax boards and specifically posts by Kaye Thomas Member 4841433 around October 1998 for some discussion on these allowable 60 day loans of stock certificates. DCI shares are not borrowable and not loanable. That's the same for ALL OTC-BB stocks. Even $500 a shares OTC-BB stocks. It is not the price of the shares. It is not the quality of the Company. It is nothing beyond the fact that OTC-BB stocks must, by law, be held in a Type 1 account if held in Street Name. OTC-CC stocks can be sold short (not to be confused with "may be sold short") by obfuscation and lax enforcement of the law by worthless SEC bureaucrats who don't safeguard the public until after the barn door is blown open and the horses have all run out and been sold to the public micro-cap investors. --------------------------------------------- To legally sell short you must DECLARE your position, you must find stock to borrow and you must follow the rules. To become an UNDECLARED short you merely place a sell order (as opposed to placing a "sell short" order). No Uptick rules for undeclared shorts. No need to find borrowable shares for undeclared shorts. No mandatory Fed call liquidations "margin calls" for undeclared shorts. You may say it sounds easy. It is for some people. It is similar to getting money from the bank. Most of us need to establish an account and either withdraw from previously deposited savings or apply and qualify for a secured loan. Other people pull a mask over their face (undeclaring their identity) and just TAKE THE MONEY. Now it is up to you to do even more reading and eventually decide what is the truth and what isn't! Good Luck! Colin

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