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Technology Stocks : FRANKLIN TELECOM (FCM) -- Ignore unavailable to you. Want to Upgrade?


To: lostmymoney who wrote (2194)9/29/1999 6:26:00 PM
From: Noneyet  Read Replies (1) | Respond to of 2891
 
lostmymoney,

Didn't you read my posts on the shorting of shares, it certainly is allowed by the; and I quote; Broker-Dealer for the shiek. Here is a reference to my post and the complete paragraph wherein the shorting is detailed.

Message 11390320
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The sale of the shares may be effected through one or more of the following methods: (i) ordinary brokers' transactions, which may include long or short sales;(ii) transactions involving cross or block trades or otherwise on the American Stock Exchange; (iii) purchases by brokers, dealers or underwriters as principal and resale by such purchasers for their own accounts pursuant to this prospectus; (iv) "at the market" to or through market makers or into established trading markets, including direct sales to purchasers or sales effected through agents; and <b.(v) any combination of the foregoing, or by any other legally available means. In addition, the selling shareholder may enter into hedging transactions with broker-dealers who may engage in short sales in the course of hedging the position they assume with the selling shareholder. The selling shareholder also may enter into option or other transactions with broker-dealers that require the delivery by such broker-dealers of the shares, which shares may be resold thereafter pursuant to this prospectus. We cannot be certain that all or any of the shares will be sold by the selling shareholder.
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To: lostmymoney who wrote (2194)9/29/1999 6:40:00 PM
From: BuzzVA  Read Replies (1) | Respond to of 2891
 
Hey lost, I think you forgot the second half of the article (I'm sure by mistake too...yeah right)

The Short & Distort Scheme

Stage I: Monitoring

In stage I of a Short & Distort scheme Short groups Monitor spikes in volumes on stocks with no rumors.

Stage 2: Flagging

Shorts Flag stocks that run up then sits back and wait patiently for their time.

Stage 3: Preparation

The Shorters research the company and develop their Distortion of the rumors to be used later.

Stage 4: Actual Shorting

The shorts step in selling on every possible up tick. This is the Reverse of front loading. Preparations are made to attack the guy who had earlier written positively about the company and take out, discredit, any new long-term champions or messengers.

Stage 5: Distortion Campaign

The shorts step in and increase selling on every possible up tick. Just as with the pump, newsletters, e-mail, PR firms against P & D, etc. are simulated. Expertise in the field is recruited for credibility. Any possible twist using POS (Purposely Omitted Syntax) and PAS (Purposely Added Syntax) is conveniently used on every possible angle. If the POS/PAS is discovered then attack the messenger. Above all control the message boards.

The group clutters the message boards so no positive information can be readily found. Justification is the Value of the Company in the market. Projections of $0.00 worth and loss projections of 100%

Note: The market manipulator will do everything in his/her power to keep buyers OUT OF THE STOCK. Cut your losses is touted to stimulate fear. You bought higher but now they need you to sell lower.

Stage 6: Pressure

The shorts have taken it too far. The volume is increasing and the price is not effectively dropping. A stalemate occurs. Personal attacks increase. Threats of legal action, SEC involvement, and yes even death threats increase. Increased secret IDs are employed to increase the cluttering, personal attacks and the distortion. So begins a string of lies that run for as long as one's stomach can take it. Desperately playing on the "you have been had" scenario. Any new news will be hit it hard by shorters to kill any interest.

Note: Watch the volume not the share price. A market manipulator will have various brokers buying and selling the stock to give the APPEARANCE of increasing volume but the price goes down. Thus stimulating the story the company is selling or an off shore reg S or other convenient scenario. Watch for large blocks that show up but have a MM special code, cross overs, etc.

Stage 7: The Cover

Without warning the buying pressure is too much and the short begins to cover. Short covering combined with new investors buying into the stock causes the stock to go up. Often the whole thing starts again. Just a vicious cycle sometimes.

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Note: Pump & Dump schemes I have seen are investigated by the SEC most of the time, however the Short & Distort scheme is not apparently high on the SEC's agenda. The shorts, unlike the dumper though, has an unlimited loss factor should the stock price go up.