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

To: PeterR1700 who wrote (163)	11/8/1997 12:33:00 PM
From: Carole	Read Replies (1) \| Respond to of 11708

Peter: Thu Ra Tin posted a great explanation which will help you. Just call your broker and request your stock certificates to be sent to you in your name. It will take about two weeks to receive them, and when you are ready to sell, you can take them to any brokerage house for that purpose. Read the following post from Thu: techstocks.com c

To: PeterR1700 who wrote (163)	11/8/1997 12:37:00 PM
From: Bigwave	Read Replies (1) \| Respond to of 11708

Absolutely! this will squeeze the naked shorts, forcing them to cover which will boost the stock price. Here is a snipit from an article posted on this thread: How Can Undeclared Short Sellers Create Nonexistent Shares? 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. 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. 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. 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 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?) 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. The Only Real Protection The only real protection: education of investors! Demand delivery of all shares you buy!!!!