Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: waltertx who wrote (26781)	2/24/1999 5:46:00 PM
From: Meteo_Dan	Read Replies (1) \| Respond to of 27968

Did AA pay .30-.50 on the open market for those million shares? If he did maybe he can join FSAAA?

To: waltertx who wrote (26781)	2/25/1999 2:57:00 AM
From: Mad_Mouse	Respond to of 27968

When did AA buy these shares and at what price? I won't know what to make of your research until you give me this info. There has to at least be a date attached to these shares bought on the open market. Otherwise, your info is unsubstantiated and nothing more than here-say. Not to mention that your research methods would be flawed and incomplete. By the way, I'm assuming that AA is Adam Arif and not you or another shareholder in your group or anything else such as an investor's club. Am I correct in this assumption?

To: waltertx who wrote (26781)	2/25/1999 8:58:00 AM
From: Freddie Forte	Read Replies (1) \| Respond to of 27968

Stock Scams Cost Investors $1 Billion a Year The Federal Trade Commission reported recently that Americans are losing $1 billion a year to investment swindlers. Investment fraud is escalating because of the phenomenal growth of online trading and unscrupulous stock promoters. But there are many ways to protect yourself. If you do become a victim, you can try to recoup your losses in court. This is never an easy option for a single investor because of the costs involved, but if you become part of a class action suit or part of a court appointed receivership, you become a very powerful force indeed. While the internet has become a playground for investment tricksters, it has also become a valuable tool for those wanting to curb scams and fraud. One website that alerts investors is www.EndFraud.com. Here you can learn how to recognize securities scams, how to alert others and get redress. Unfortunately, many cases of securities fraud go undetected. Most investors will not even consider the possibility of misconduct by the company in which they have invested until that are faced with the loss of their investment. Because the market naturally fluctuates, not every loss is indicative of fraud, but losses should cause concern and serves as the impetus for further investigation. According to Endfraud, the following are all warning signs to look out for. 1) Dramatic drop in value of stock in a short period of time. 2) Announcement by the company of wrongdoing (e.g. restatement of earnings, accounting violations or irregularities). 3) Financial results that are markedly different from prior publicly announced expectations. 4) Revelation of a material fact that is inconsistent with a prior representation. ***************************************************************** When a corporation issues misleading information to the public, or keeps silent when it otherwise has a duty to disclose, it is considered MARKET MANIPULATION. Give yourself credit in determining what is right and wrong. On the face, fraud may not always be a clear, quantifiable event. It has many permutations, and when it is part of a well thought-out scheme by sophisticated corporate insiders, it can often be mischaracterized as a natural market fluctuation or blamed on an uncontrollable macro-economic event. If you feel you have been wronged, then pursue the matter until you are satisfied that either the company has done nothing wrong or that it has committed fraud. Ultimately, each shareholder has to keep in mind the purpose of court action-to retrieve an investment loss due to fraud, punish the company and/or its directors for committing fraud, prevent them from doing it again and set an example for other publicly held companies that this type of conduct will not be tolerated anymore.

To: waltertx who wrote (26781)	2/25/1999 10:23:00 AM
From: Freddie Forte	Respond to of 27968

SEC Adopts Rule Changes Aimed At Preventing Small-Stock Manipulation Washington--Extending their fight against small-stock fraud, federal regulators on Friday adopted rule changes aimed at choking off potential stock manipulation before ordinary investors lose money in such schemes. The Securities & Exchange Commission will continue to make its enforcement actions against small-stock fraud a top priority, SEC officials said at an open meeting. The new rules are designed to supplement that effort by increasing the amount of information on small companies available to investors and making it harder for people to fraudulently promote stocks. Under the changes, for example, small companies will be required to disclose more information when they issue stock under special rules allowing them to do so without registering with the SEC. Many of the fraudulent promotion schemes involve a practice known as "pump and dump," in which promoters push up a stock's price by making false claims about the company and later sell their shares to cash in on the artificially high price. Some small companies have improperly paid consultants, in cash or shares of stock, to promote the stock. Under the changes adopted Friday, companies won't be able to sell their stock to public investors through consultants who are improperly compensated by the companies. Cheap, high-risk stocks, often called penny stocks or microcap stocks, are usually traded legitimately but have become a breeding ground for fraud in recent years. The stocks often are thinly traded and the companies issuing them sometimes have minimal assets or none at all, making them only corporate shells. "Stock manipulation schemes provide the means to cheat investors out of their life savings," SEC Chairman Arthur Levitt said. "The best, most effective protection an investor can provide for himself is awareness...Investors have got to be the front line in protecting themselves." The agency's rule changes "will be important weapons in the war against micro-cap stock fraud, which costs unsuspecting investors millions and millions of dollars each year," said Marc Beauchamp, spokesman for the North American Securities Administrators Association, which represents state security regulators. In a related action, the SEC announced it had filed a civil suit against Glittergrove Investments Ltd., a firm based in Ireland, for alledgedly selling stock in two small U.S. companies without registering the stock as required. The SEC recently suspended for 10 days trading in shares of the two companies, Citron Inc. and Electronic Transfer Associates Inc., citing questions about the accuracy of the companies' public statements. A federal judge in New York City issued an order freezing 2.5 million in Glittergrove's proceeds from the stock sales.