Sorry if this was already posted -desperate mm's -don't ya just love it...
"he (the German MMs) is not allowed to stay in a short position overnight. He has to cover whatever he sells within the trading day..."
Wouldn't it be great if they had to do that over here?
MMs Approached INVT to Cover Short Position
By Jack Burney
Published by OTCNN.com
06/21/2000 08:35 AM CST
InvestAmerica, Inc. (OTCBB: INVT) confirmed today that it was approached by phone by
two unidentified Market Makers to buy shares direct to cover their short position.
?Yes, that did happen,? said Bryan Kitts, director and secretary-treasurer of INVT. ?I can only
tell you I absolutely refused. It did happen back in December, and the whole problem with the
conversation was that when they did call me and they did ask me to sell them some shares, and I
asked them who it was, they refused that information.
Bryan said he told the callers ?If you want to buy shares from the corporation, if you want me to
cover your short position that you got yourself into, these are the terms.
?I fly to your office. I watch you buy out your short position, then at the end of the day, whatever
amount of shares you had to buy to get out of your short position, you can buy from the company
on a private placement equal to the shares you had to buy in the marketplace, Kitts said.
?If you started buying at $2 and you finished buying at $5, and the average is $3.30 or $3.40,
that?s the price that you?ll buy the stock at from me,? he told the callers.
?They get out of their short position and they end up buying the equivalent amount of shares from
me at a slight discount from the market,? Kitts said. ?It?s the only way you?re going to get shares
from me, I told them. They refused. I said see ?ya.?
The interview verified substantially what was reported Friday in a story on OTC News Network.
In an effort to continue providing only the best, most accurate news and information to our
readers, the story was pulled while we checked out the validity of contradictory information from
outside sources. Once the facts had to be reliably confirmed, this story was reissued.
Three INVT investors offered the strong opinion that market makers were short up to 9-million
shares ? one said 30 to 40-million ? and desperate. Otherwise, why would they make such an
offer. But that cannot be confirmed as fact, until the SEC changes the rule that keeps MM
dealings in OTCBB stock secret. Until then, investors will probably just continue drawing their
own common sense conclusions.
Asked if he was aware of any extreme short position of any MM in the U.S. in INVT stock,
Bryan told OTC News Network, with obvious restraint, ?The only answer I can give you is that
there is no market maker buy-sell record available.?
?Apparently the only record kept is in the clearing houses,? Kitts said. ?Each broker deals with a
specific clearing house and, in this particular instance, GTC Corporation is the one that keeps
overall records and that information is not only not available to the general public. But, any short
position information that?s recorded at the clearing house level is confidential. So I have to say, I
do not have any written documentation of a specific short position.?
Kitts also verified that would-be buyers of company stock offered on the Frankfurt Stock
Exchange under the trading symbol ?IVK? found it difficult to impossible to buy such shares.
? I did receive phone calls from people who placed orders to buy IVK,? Kitts said. ?I can tell you
that only 10,000 shares of those orders got filled, and it took, I think, two weeks to get them
filled. Why? I?ve heard rumors I can?t comment on.?
?On the other hand, I can?t find out why the orders weren?t filled. I do know beyond a doubt that
the orders were placed, that they were limit orders with a limit that was significantly higher than the
market, at least $0.75 higher than the market over here,? Kitts said.
But Kitts did say that ?when a person buys shares of a company that is interlisted on the OTCBB
and a foreign exchange, say the Frankfurt Exchange, the (German) market maker accumulates
orders before brokers during the day to buy IVK.
?They accumulate the orders while we?re sleeping,? he said. ?When our markets open over here,
the market maker in Germany places an order with a market maker that he works with in the U.
S. He says I need x amount of shares with a limit of this. Until it is confirmed that he (the German
MM) will receive physical delivery of the stock, he cannot fill the orders placed with him through
the German exchange.?
?He has to have the certificates, and it is my understanding that he (the German MMs) is not
allowed to stay in a short position overnight. He has to cover whatever he sells within the trading
day. Otherwise, he cannot fill the orders he received.?
Investor Michael McKay would like ?to throw INVT into the ring of severely manipulated
stocks. This stock almost hit $12 and now rests at $1.40. A buy yesterday of 386,000 shares did
not even move the ask price.?
Investor Elaine Hill complained of bashers and blatant manipulation of INVT stock.
?Shareholders have been frightened into selling by false and misleading posts on message boards
and price manipulation of this stock.?
There?s more to this story, and OTCNN will continue to pursue it
otcnn.com
Bob |
