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Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?

To: Russell Gish who wrote (103)	11/6/1997 2:14:00 AM
From: franco	Read Replies (1) \| Respond to of 11708

Calling certs will NOT have any impact on the current shorting situation. However, within a month after the BIG SQUEEZE, you know Shorty will come out of the woodwork again to Short it back down again. With the certs being called, Shorty will be less likely to try a NAKED short like he's doing right now. I'm not concerned about dumping- all that's already been done- it can't help Shorty now like in Round 3. Those who dumped after getting 3 bag$ full along with Shortys MM manipulation couldn't pull this one down even 20% even AFTER A 300% GAIN! The word is just starting to get out and the price has held up remarkably well considering the aggressive shorting and minor profit-taking the past 48 hours. When Shorty sees the jig is up, he'll have to throw in the towel, and then this baby's goin' STRAIGHT UP on the BIG SQUEEZE!!! As tight as the float is right now, Shorty would have trouble covering his NAKED SHORTS, so I think the upcoming SQUEEZE will be IMPRESSIVE!!! With all the available and reliable info that is now known about C$MA, I don't see any BIG SELLOFF now or in the near future. Even Most pennies that have tried for the BIG SQUEEZE have failed. but looking at ALL THE AVAILABLE INFO I think the risk/reward ratio for this one is GREAT. Because even if Shorty escapes without a squeeze, the fundamentals of this stock will take it up- just remember a $52 million MONOPOLY in Utah!!! Shorty needs to COVER on C$MA- and the float is tightening up on buying pressure and finally we'll see THE BIG $HORT SQUEEZE!!!! GOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO C$MA!!!!!

To: Russell Gish who wrote (103)	11/6/1997 4:48:00 AM
From: Thu Ra Tin	Respond to of 11708

>>Calling in certs? Isn't that like calling for a roll of toilet paper in the wilderness.<< TOO ALL: Here are some articles that explain "naked shorting." The following article can be found at: microcapstocks.com ÿ Undeclared Short Selling Introduction ÿÿ Many dynamic growth companies have been damaged by undeclared short selling. This practice consists of creating stock that doesn't exist or borrowed (as is the legal requirement) and subsequently sold in large amounts in the open market creating panic selling and decimating share prices, where they hope to buy the position back at lower levels (creating a profit for the short seller). Declared Short Sellers ÿ Declared (legal) short sellers are institutional money managers and fringe group market professionals, not small capital public investors. Their positions are reported publicly on a regular basis, and these individuals must borrow the shares before taking on a short position. They must also typically deposit 50% of the value of the short as a margin deposit. From whom do they borrow? Read the fine print on your margin account agreements and you will see it is YOU! This is a perfectly acceptable, legal and ethical investment strategy - just like in commodities you have some folks betting on higher prices, others betting on lower prices in a controlled, disclosed, and regulated environment. Undeclared Short Sellers ÿÿ 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. ÿÿ 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? ÿÿ 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. ÿÿ 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. ÿÿ Nine times out of ten your brokerage firm loans your shares to the shorts (short sellers) on settlement day!! So, What Do I Do Now?? (Complaints to regulatory agencies) Though it sounds good in theory, complaints to the so called "experts" who regulate our financial markets have proven to be completely useless. ÿÿ The problem is simple: Lack of knowledge on the part of the regulator. You would be hard pressed to find anyone versed on undeclared shorting with the SEC itself let alone the NASD (who oversees NASDAQ and the (Bulletin board) who are "association police" with no real legal power and virtually no transactional knowledge. A complaint to the NASD would probably result in them attacking the public company and the legitimate brokers who bought the shares for their client -- they would attack the victim rather than the culprit. A Short Trap ÿÿ The term "short trap" refers to backing the shorts into a position whereby they must cover (buy back the short position in the open market). The only effective way is to demand delivery of all of the shares currently held in street name. This must be done by the shareholder. The problem is that most brokers are brainwashed to believe that if the shares are not on account at their brokerage firm they are gone forever and the commissions generated selling the shares will go to somebody else. One possible solution is a large buyer (sometimes as much as 10% of the float) who will demand delivery of his shares. The Good News (Is there any?) ÿÿ The good news is that is the trap is effectively enacted the short will HAVE to cover the position. This can, in some cases, take a $.50 stock to $15 or $20 a share - creating huge liquidity for the company and make the shareholders rich. (20-1 returns are not uncommon) Some of the most successful stocks on Wall Street are a result of an effect short trap. Example: Presstek (PRST) -- this was a $20 stock that made shareholders a five banger when a major promoter brought in some large players to bust the short. ÿÿ The Only Real Protection ÿÿ The only real protection: education of investors! Demand ÿÿ delivery of all shares you buy!!!! ---------------------------------------------------------------------- ÿ The following article was printed by Copley Pacific on short selling entitled..."Understanding Undeclared Short Selling and How it may be impacting Your Company" ÿÿ Does it sometimes seem that no matter what you do your stock has trouble climbing in price? If this the case, your company's stock may be facing downward pressure as a result of undeclared short selling. Short selling can be divided into two categories, declared and undeclared. Many dynamic growth companies have been damaged by undeclared short selling. Created by market professionals, the practice consists of creating stock that doesn't exist. It isn't borrowed but created and it creates enormous negative pressure on a stock price. ÿÿ The Mechanics of undeclared short selling are as follows: Nonexistent stock is sold short. This nonexistand stock increases a company's float. The nonexistent stock makes it difficult for investors to profit from their risk capital speculations. The short sellers make the profit. The practice hurts the public companies, themselves. It adds massive costs to maintaining a market in a stock and it reduces a company's business options. ÿÿ The basis of declared short selling is borrowed stock. A short seller provides 50% or more of the value of the stock to his or her broker. This is done in a margin account. The margin protects the broker against any increase in the share price. The broker borrows the stock from a depository trust company. he then sells the stock and adds the money to his client's margin account. Later, the client buys stock (covers) to replace this borrowed stock. The difference between the price the client sold the borrowed stock and the price the client paid to replace the borrowed stock (covered) is the profit or loss from the transaction. ÿÿ Most declared short players are institutional money managers and fringe group market profesionals, not small capital public investors who seldom participate. Declared short positions risk being squeezed. If the company can double its share price, the short seller will be forced to increase his margin collateral in order to maintain the short position. At such time, the short seller may elect to buy (cover) the stock instead of adding to his margin. This adds to the upward movement of the share price. ÿÿ Undeclared short sellers don't borrow stock. They don't margin the sale of their short positions. Because they are market insiders they can use various techniques to sell stock that doesn't exist. Is there money to be made by undeclared short sellers? Estimates are that undeclared short sellers make multi-millions of dollars annually. Complaints to regulatory agencies haven't stopped the practice of undeclared short selling. However, one way companies can protect themselves is to recommend to shareholders that they take physical delivery of their stock certificates. When physical delivery of stock certificates is demanded by a significant number of shareholders, the creators of nonexistent stock can be squeezed. The short sellers won't have stock certificates to deliver and thus they will cause losses for them and will cause them to move their undeclared short activities elsewhere. ÿÿ End of article. ÿÿ ----------------------------------------------------------------------The following articles explain how Market Makers on NASDQ manipulate stocks of small companies. forbes.com busadm.mu.edu