posted
visit pink sheets , they are tring to get the SEC to stop the naked shorts,, they need our help to email the SEC and let them know how we feel...
Posts: 535 | From: muskegon, michigan | Registered: Jul 2005
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I am writing to alert you of a very important rule change that is needed to improve the OTC marketplace. I need your help to make regulators turn on the lights and protect investors from the menace of hidden short selling in the OTC market.
I think you'll agree that this issue deserves the small amount of your time it will take for you to tell the SEC what you think about this issue.
As Chairman & CEO of the Pink Sheets, I know perhaps better than anyone the importance of improving the Pink Sheets and OTCBB trading. And I know the devastating impact that small companies face when their market is tarnished by the threat of manipulation.
There is a crisis facing the OTC market today in the lack of short sale position reporting and disclosure for OTC issues. This lack of transparency regarding short selling in the OTC market allows fraudulent acts to go undiscovered and manipulative short sellers to hide.
I believe regulators should fix the problem. Small issuers traded on the Pink Sheets and the OTCBB deserve the same transparency and regulatory oversight of short selling as those listed on Exchanges or NASDAQ.
Therefore, Pink Sheets has petitioned the SEC to cause the amendment of NASD Rule 3360 and require NASD broker dealers to maintain a record of total "short" positions in all customer and proprietary firm accounts in all publicly traded equity securities as well as report this information to the NASD for public dissemination of the short positions by security. The SEC's action is urgently needed to prevent fraudulent acts, expose market manipulation, promote fair principles of trade and protect investors.
But I cannot make this important rule change happen without your help. Thus I'm asking you to write a letter today, and voice your support to the SEC for the Pink Sheets' Request for Rulemaking Regarding Member Records of "Short" Positions and Reporting and Public Dissemination.
So please send your comments via Email to: rule-comments@sec.gov with a Cc: copy to: pubcom@nasd.com
Or, if it's more convenient, you can mail your comments to:
Jonathan G. Katz Secretary, Securities Exchange Commission 450 Fifth Street, N.W. Washington, D.C. 20549
With a copy to:
Barbara Z. Sweeney Senior Vice President and Corporate Secretary, NASD 1735 K Street, NW Washington DC 20006-1500;
Either way, your Email or letter should refer to SEC File No. 4-500. Request for Rulemaking Regarding Member Records of "Short" Positions and Reporting and Public Dissemination of Aggregate Positions by Security.
I know I'm asking you to do a lot. But it's important that we make the OTC market transparent and fairly regulated. I think you'll agree that this issue deserves the small amount of your time to tell the SEC what you think about this issue.
Remember, the only way to succeed in achieving this rule change is through the public outcry of investors demanding the SEC make this needed improvement to the OTC markets, and there is no substitute for your personal voice in this debate. This important rule change is not going to happen if you remain silent.
So please, don't rely on others to get the job done. Write your Emails or letters today. Together, we must win this battle and convince the SEC not to treat the OTC secondary markets for small companies as second class citizens.
Without this rule change investors and securities regulators will be blind to any short selling activity in Pink Sheets and OTCBB stocks. The SEC needs to know that the lack of short sale information in your securities is unacceptable and demand they change NASD Rule 3360 immediately.
I'm asking for your help to improve this critical part of the securities market, so that companies like yours will be traded in transparent, efficient and well regulated OTC markets. Please do your part by writing your Email or letter today. Every voice counts in the debate, and yours could be the one that puts us over the top.
Thank you for your time and help in this fight.
Sincerely,
R. Cromwell Coulson Chairman & CEO
P.S. We can only succeed in making these rule changes with your help. So please, take action today. And once again, thank you very much for your help.
Note: To comment to the SEC via Internet, use rule-comments@sec.gov with a Cc: copy to: pubcom@nasd.com
File No. 4-500. Request for rulemaking regarding member records of "short" positions and reporting and public dissemination of aggregate positions by security.
posted
It is very necessary but we as investors need to stand up to these pinksheets that gag the TA and make it easier for these illegal activities to take place. As long as we keep buying these stocks without forcing the company to come clean, these crooks see an easy target. It is so easy to Naked Short a stock that is secretly diluting their shares. And it seems that the only companies really complaining about this are companies that refuse basic information to their shareholders.
I just think it would be so much easier to clean up the mess if the company wasn't adding to it. It is like the last protest of NSS at the New York DTCC office was by mainly CMKX stockholders. These people are up there laughing so loud. A company that diluted shares to 703 billion and they are protesting naked shorting of their stock. Just seems that the only people standing up to the regulators are shareholders of dilution king companies. And they see no reason to fix a problem with these companies as the poster child's.
Don't you think that refusing to buy stocks that were hiding information or were being manipulated would get more attention then what has been tried so far. It obviously isn't working. Too much money involved. Until you hit there pocket book you will never get there attention.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
naked shorting is selling shares that don't exist.because they dont have to account for them. from what i understand.
Posts: 535 | From: muskegon, michigan | Registered: Jul 2005
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posted
ric read the post at investors paradice under misc for naked shorting by Krill
Posts: 535 | From: muskegon, michigan | Registered: Jul 2005
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posted
Ric, it is not the companies fault that naked shorting is going on. If a company is dumping shares and diluting there O/S, this would make it hard for a MM to perform a naked short. I can guarantee you that CMKX was not Naked Shorted; there were just too many shares. OTCBB stocks are just as susceptible to Naked Shorting as Pinks are.
Posts: 241 | From: USA | Registered: Apr 2005
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posted
I know what Naked Shorting is. Naked shorting is short a stock but not covering the short. They can either wait till they drive the price to nothing and buy it back real cheap or the can drive it into bankruptcy were they will never have to cover. But the new thing they are trying is shorting companies that don't give out information to shareholder. Dilution kings. Then when they either go belly up or they do a R/S then the short doesn't seem as bad. Plus they know these dilution kinks will start all over again.
My above comment wasn't a definition of NSS. It is just were NSS hides itself. Naked shorting finds it easy to short these shares with companies that deny investors information. It is easy to naked short a company that not even the SEC know the share structure in.
I have been in the pink market a long time and see what is going on.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
Northern. I never said that all NSS was in these non reporting companies neither. But they seem to be the only ones screaming it. QBID, prrm, cmkx for just a small example. Not all are companies fault but a lot are. But we as investors still buy these shares whether it is a legit company or not. In hopes we can get in on a short squeeze but instead we cause more of a problem. Screaming at the people making the money seems not to be working. We will never fix the problem till we stop giving them the money.
Not saying we should stop writing the SEC neither. If we all stood up to them it would get something done. But the problem is most don't care. Also, never said CMKX was short but they were the only ones that showed up to the protest. Thats why I said they were all laughing.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
Sorry, long post, but there's lottsa good stuff in this thread. SUPER glad to see it. NSS is sucking--literally--billion$ from this economy. And every sector of the market is involved.
Please don't overlook the roots of current NSS, which is the change from fractional to decimal reporting, in my book. MMs have lost their ability to cheat the spread as before; the decimal equivalent is to walk a weak stock down to .0001 - .0004 range. They can exploit "doubles" much easier in that range than can traders. You'll see even on the board when newbies ask, "Well, why don't I just buy a ton at .0001 then sell at .0002? Simple, right?"
In this sense, dilution *does* play into the NSS process, as few companies ever escape the dilution-r/s spiral. MMs simply wait for the inevitable bankruptcy or r/m, which high-centers the debt in the cast-off shell, left sitting worthless like a hermit crab's former digs. Creditors can sue all they want: no one's home.
In this sense, crooked companies/CEOs for sure play into the process.
The DTCC seems to be heavily involved, too. Otherwise, why was NSC (sp?) recently granted immunity from such fraud? That's not like a Governor reviewing a case then granting a pardon. It's like a Governor commiting a crime then granting [i]himself[/] a pardon before being tried. NSC (sp?) is part of DTCC!
Look at the board of DTCC: comprising heavy-hitters of the biggest, most influential financial institutions, the board itself has members from giant firms who have *recently (not years ago)* lost cases in court for defrauding investors. Yet, there they sit, still on the board...
As a private corporation, furthermore, DTC/DTC/NSC are not subject to Freedom of Information Act. hmmmm....
SEC, which *is* subject to FOIA, can easily withhold documents. All it has to do is start "an investigation." Presto--related documents now exempt or subject to [some fancy word, which means] "blacking out" pertinent passages with a big ol' Magic Marker...lol, or whatever they use.
The entire system is corrupt, and has spent decades being structured to cover its tracks. Online trading has muddied the waters for them--hence some of the recent track-covering exemptions such as the self-granted immunity mentioned before and the grandfather clause for shorting and the MM exemption's on "reasonability" to make a market. On the bright side, online trading has also made trading much more common--as well as creating an unprecedented increase in traders who become more educated and more active as time goes by. What's the saying? An internet year is like twenty real-world years? Imagine making as many trades as you have without being online...imagine learning what you've learned if you were trading the "old way."
We online traders could become a real problem, but as of now...
...they rely on us to not demand physical certs, knowing that we are "e-oriented" that doing so would be a bother for traders who believe they must trade every day.
I say we pick one company--not like a "group pick"--but one company that seems to be having problems. I don't care who it is. Buy shares--then demand physical certs. Then hold them. Theortically, trading should stop, right?
Ric has other ideas, as do other posters. I'm open. But let's *do something.* jmho
[ August 10, 2005, 20:25: Message edited by: BuyTex ]
posted
i also dont agree with dilutions either,, printing shares to cover expenses, so management can live the lifestyle they became used to. without any earnings,, imo , i hear people say the MMs are shorting this, or there letting it run ,, who the hell are they, do they control it for personal gain ? so is that what happened to NITE ,, i want to ask, i put a buy order in for market today, not a limit,, it took 23 minutes to fill why were they waiting for the price to go up? should it take that long? just wondering when i sell ((seems)) like it goes to the ask not the bid, it goes within 1 minute. i dont mean to complain but MMs work for you, you pay the commissions for buy/sell
Posts: 535 | From: muskegon, michigan | Registered: Jul 2005
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posted
Ric, I agree with you but you are talking about the worst of the worst when it comes to pinksheets, many are scams but many are just trying to turn a profit so they can start to report with the SEC. If everyone stopped buying pinks then only companies that had an extra couple hundred grand lying around to file with SEC would exists. The pinks are the perfect place for a start-up company to work its way up to the OTCBB. But if a company has been around and bumped down to the pinks, that is a whole other story.
Posts: 241 | From: USA | Registered: Apr 2005
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quote:Originally posted by databig: i also dont agree with dilutions either,, printing shares to cover expenses, so management can live the lifestyle they became used to. without any earnings,, imo , i hear people say the MMs are shorting this, or there letting it run ,, who the hell are they, do they control it for personal gain ? so is that what happened to NITE ,, i want to ask, i put a buy order in for market today, not a limit,, it took 23 minutes to fill why were they waiting for the price to go up? should it take that long? just wondering when i sell ((seems)) like it goes to the ask not the bid, it goes within 1 minute. i dont mean to complain but MMs work for you, you pay the commissions for buy/sell
db, MMs have an extremely odd job: w/o them, many of these companies could not trade. Part I of their job is to literally "make a market," hence their expertise at structuring the spread. Too much ask? run to a spike Too little bid? panicky freefall. Tough job...
To make it worth their while, MMs can trade for the firm, too. They have contradictory assignments. In the long run? Guess whose interests become number one...
NITE has recently been fined for activities relating to 4 (i believe) traders/officials for overstepping their bounds and holding up trades. One or two are now barred...
Sounds good.
But, really, four? iow, they have to phukk the pooch on the church lawn to get branded...
Remember though, you're "in line" on any order...part of trading is setting your price to be toward the front of the line...eg, if you put in one order, get nervous and cancel, put in another, then you're last in line on the new spot. Not saying you did that, just an example.
[ August 10, 2005, 21:58: Message edited by: BuyTex ]
posted
thanks buy tex i do think there is some manipulation , i do understand (your next in line) i didn't cancel and re-enter the buy, it was at market , maybe its like buck fever , get excited , want it now
Posts: 535 | From: muskegon, michigan | Registered: Jul 2005
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db, you can get treated miserably on a market order...strongly suggest you re-think that approach...either sell or buy--over time? they will ride you hard, put you up wet, and forget to feed you the next morning.
really
some brokers will not even allow mkt order on pennies...(am assuming it was a penny, I guess)
when I said "you're in line," I assumed you are using limit orders. Market orders allows them to treat you like a two-dollar wh*re, even partially filling, x% at y-price, z% at n-price, etc...lol can be v-e-r-y surprising when you get the results...seriously? in penny-land, always use limit orders
posted
...on cnbc next hour ron insana going to be talking about short-selling in the market....
Posts: 702 | From: usa | Registered: Apr 2004
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