From another board on shorters and SEC
By: ItsL8rHere $$$
Reply To: None
Monday, 21 May 2001 at 5:22 PM EDT
Post # of 41284
Don't know if this holds water,but an interesting read nontheless...
SEC is on to the virtual heavy shorting and manipulation.
Per the SEC, changes are coming for the penny market. The following information, if you
invest in penny stocks, you will find to be a breathe of fresh air. It's about time.:)
Around the first week of May, 2001, I read a post from someone who got an email back
from a guy at the SEC. I called the guy for questions. It turned out that naked
shorting/manipulation wasn't up his ally.
However, we talked for 10-15 minutes about nakedshorting/manipulation. He had to ask
me exactly what naked shorting meant. I explained the entire situation with information on
the companies that are fighting the "short", he was intrigued. He even said "wow, how do
they do that" (sell virtual shares). I said I could email you some "stuff". I did. A couple days
later I emailed him to ask if he could give me a name and a number of someone closer to
the action. He did a little better. I received a call from an SEC official on 5-15, that
seemed to me, said maybe more than she should have? I spoke to the same official on
5-18. Here is what she said.
I would like to mention the demeanor of this person I talked to - imo, gitty and excited to be
in the middle of this.:):) First, she said she has received 4,000 complaints from investors
about shorting/manip in the penny arena. Those 4,000, I'm not sure if that was the total or
just what she has seen. Obviousley, tons came from pcbm but the complaints were in
general. I did not inquire specifically about pcbm, but as I talked about all the companies
that are asking for cert pulls, companies doing dividends etc, I passed the name on of a
few companies. She is aware of all of them.
Here is the current situation. She told me to watch the SEC website for proposed rule
changes for the penny market. She said she wished they could have gotten them out
already, but they should be out this summer. She said they want feedback, ( I think that last
90 days) both positive and negative feedback. I asked a few point blank questions, and to
my surprise, they were answered - in flying colors I might add.lol I asked if she thought that
naked short selling is happening to the point of manipulation.
The answer was yes. She said "We are completely aware of what's going on out there". I
asked her to what extent are some issues being shorted. She said "We are seeing
indications where the short has gone beyond the entire O/S." Now, if she would have
laughed and said "No, there is no way the manipulation goes to that extent." Mine, and all
of our hearts would have sank. What this means is that, were not nuts to have thought the
mm's have been doing this to the extent we thought. We were right all along.
So we started talking about rules. First, for the otcbb market, rule 15c211 really doesn't
seem to be effective or enforced. There is a problem with it. MM's are not closing out and
going even monthly like they are suppose to. This is about when, w/o me asking, she was
giddy and told me she would love to tell me the changes in the proposal are but she can't.
In regards to pink sheets, worse yet. She said that the SEC doesn't govern the
buyback/go even stuff with the pinks but she said to the best of her knowledge there are
no rules pertaining to that with pink sheeters.
She is aware that there is a "movement" from us investors trying to nab the shorts. I asked
her if she thought the mm's are aware that "we" are onto them. She laughed and said "I
don't know, I would think so."
Asking about the actual process of busting the shorts and creating a buy in, that was not
up her ally. But as we know, pcbm is right on the doorstep along with numerous other
companies. She told me I could call anytime, I will see if I could possibly get a name and
number of someone at the SEC who can talk about the mechanics of a buy in.
She brought up another rule that isn't being followed. Rule 153c-3. Yes, someone else is
being naughty too,lol your broker. They are required to have you sign a release in order to
allow the broker to lend your shares out with your margin accounts. Have you ever signed
one of those? She laughed and said "That particular rule isn't being followed."
Now, regarding the proposed changes, I asked how long it can take to make actual
changes. She said they are in a tough spot right now because they have no chairman at
the SEC at this point. So, who know's. The situation is, those changes when they do
happen, won't effect companies that are now battling a short position. Again, many
companies are doing what they can legally to get it busted. Along with pcbm, I understand
there are others knocking on the door.
The situation as I see it is two fold. One, and should be foremost, is that change is coming
to the penny world that should make this game somewhat fair. THAT is huge. Secondly, as
I mentioned, with tons and tons of circumstantial evidence, and now what the SEC
confirms, it shows we were on the right track all this time.
Here's a couple of thought I have. One is, the mm's have been playing this game a long
time. Guess why it's coming to an end? Answer, the net. The forum, unity, gumption lol,
brains, have all come together. The rule changes have come too late to save the mm's
from themselves.
I believe we will go into the next era of investing which we can dub "The big bang
theory.":):)
So the mm's know were onto them. With this issue and others, here's a thought I have as
far as there game plan. Are they manipulating these prices so low (in pcbms situation the
price is now at 4 ecnts) that when there is a run to 6 cents, 8, 10, 12 cents, won't there be
a ton of sellers? Do you think they think they damn near have a cap on 20 cents? 500%
return, damn nice right? Well, there will be sellers, the problem is we own the float as much
as 10 times over. We will decide what they should pay us.
Note to bashers: Wake up and die right. The writing is on the wall.
No one needs you people, your completely worthless failures. Information good or bad will
be discussed by the longs, sure as #### don't need you stick your lousy attitude into it.
Perhaps you should drive truck.lol I suggest you think about finding a stock that has a huge
short and invest. Quit battling against change in the penny market.
In regards to paid bashers: There is a plan for you guys too. If any investors out there
beleive that a particular basher is paid who hits it really really hard. Email the board name
and one post # to jmcjmc99@yahoo.com. (The pcbm board needs not to do this, you all
know I know everyone here).:):)
Feel free to post this on any board where there is believed to be heavy shorting and
manipulation.
Good luck all.:):) |
