To: Elio Madama who wrote (3141 ) 10/3/1998 4:58:00 AM From: otcbbbaby Respond to
elio--only one problem: 144 shares can't be sold and can't be TRANSFERRED either. They are absolutely no good because transfer agents can't touch them without an opinion of counsel letter and no securities attorney will write such a letter. The 144 legend is lifted straight from the statutes. The shares cannot be sold or hypothecated. A Reg S sale is more like what you are discussing. But non-reporting companies cannot do Reg S sales, and since this year Reg S carries a 1 year restriction now, too. Nobody shorts against 144. Look at the trading pattern. If the stock moves up the next three days and then falls again we have confirmed short covering. And who has been on the bid the last few days? Knight---Frankel's partner in crime.
The upward volume was probably grossly inflated by crossing etc. all in an attempt to show more momentum than existed. Remember, there's been no new threads, no spamming, not anything even remotely resembling what is done when companies try to hype their stock. No rumor announcements or fluff. What could have suddenly caused the volume? MM's doing their thang.
Say you want to buy 10k shares of BNEZ. You place an order to e-trade. They place an order with MM ABC, who buys from NITE. NITE crosses with Frankel (10k in volume), NITE then crosses with MM ABC (10k volume) who transacts with e-trade (10k in volume). You now have 30k on the buy side if they want to be creative. The same thing can be done on the sell side, or even more inflated if they desire it. We have no real idea what the volume has been.
What we do know is that they want to shake things up, and push share holders into panic.
Have a good week-end, and let's hope Monday is better.
