posted
Not sure if this has been posted. I know we have many big time NS believers here that will attack this post. I am not saying that I don't believe in NS myself but a lot of Pennies use NS as a excuse while they dilute under cover.
Contact: Stuart Z. Goldstein Phone: +1 (212) 855-5470 Email: sgoldstein*dtcc.com
Regulators Say REG SHO is Working New York, January 24, 2006 –Despite extensive examinations by the SEC and the markets, there has been little or no evidence of extensive “naked short selling” to date, according to comments made at a recent forum held by the North American Securities Administrators Association (NASAA).
The forum was designed to examine how well Reg SHO, a regulation designed to modernize rules on short selling, had performed.
James Brigagliano, assistant director of market regulation at the SEC, said, “While there may be instances of abusive short slling, 99% of all trades in dollar value settle on time without incident.”
Brigagliano said the SEC conducted examination at 45 broker/dealers and asked the markets to look into the trading of securities in which large amounts of “fails to deliver” have been registered.
Anand Ramtahl, vice president in the New York Stock Exchange’s division of member regulation, told panelists that the exchange was conducting rigorous examinations of its members to make sure they are complying with Reg SHO.
NYSE officials noted later that when Reg SHO went into effect in January 2005, the exchange had 78 issues on the threshold list. (The threshold list contains the names of issues that have more then one-half of one percent of their shares failing to be delivered.) As of early January 2006, the number of NYSE issue on the list had dropped to 37 issues.
Cameron Funkhouser, NASD’s senior vice president of market regulations, told the forum that NASD had found no evidence of rampant naked short selling. He also noted that although a number of companies have in the past alleged their shares have been manipulated through the listing of their stocks on foreign stock exchanges, he had found no evidence of such activity.
“We took (these allegations) very seriously,” Funkhouser said. “We have seen not one instance of naked short selling or any abusive short activity” through foreign exchanges.”
According to the SEC, a short sale is “generally the sale of a stock you do not own (or that you will borrow for delivery). Short sellers believe the price of the stock will fall, or are seeking to hedge against potential price volatility in securities that they own. In a ‘naked’ short sale, the seller does not borrow or arrange to borrow the securities in time to make delivery to the buyer within the standard three-day settlement period. As a result, the seller fails to deliver securities to the buyer when delivery is due, which is known as a ‘failure to deliver’ or ‘fail.’” The SEC noted that fails can occur for a number of reasons other than naked short sales, however.
DTCC was not invited to attend the NASAA forum, but officials noted that 85% of all fails were resolved within 10 business days (i.e., before any buy-in would be allowed under current rules), and 90% resolved in 20 business days. DTCC does not regulate short selling, naked or otherwise. However, it compiles lists of fails each day and provides that data to the market regulators.
About DTCC The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities and over-the-counter credit and equity derivatives. DTCC's depository also provides custody and asset servicing for more than two million securities issues from the United States and 100 other countries and territories. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC has operating facilities in multiple locations in the United States and overseas. DTCC’s derivatives services are offered through DTCC Deriv/SERV LLC, a wholly owned subsidiary of DTCC. For more information on DTCC, visit www.dtcc.com.
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-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
I agree with you, Ric. It is an excuse used by companies and CEO's while they are the real culprits diluting and selling new shares into the market. It's a convenient cover story for them. I saw someone post a few weeks ago that FDCH now BKMP was NSS 500M shares, and the symbol change was designed to catch the MM's that were short. That seemed, at best, ridiculous to me. Not so much because they are regulated, but MM's know their business, and would never be careless, dumb, stupid, or ignorant enough to ever be in that position. It is pumpers tool, and CEO's best friend when he's diluting shareholders value. The only ones that are willing to listen to that nonsense are hopeful, desparate, investors looking for a greater fool to sell to.
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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posted
I do agree that too many companies, CEO's, and investors use it as an excuse, but...I also do believe that NSS is far more of a problem than the powers to be are willing to admit...
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It's all in the timing... Posts: 4303 | From: DSA | Registered: Dec 2003
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posted
Nobody wants to admit that they are short when they are naked but seriously I find Funkhousers' quote “We have seen not one instance of naked short selling or any abusive short activity” through foreign exchanges.” a little hard to swallow.
-------------------- ^..^ Posts: 3897 | From: New York | Registered: Jan 2004
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posted
It does exist, as evidenced by the SHO list. To what degree, is not provable. It certainly does not happen with the frequency and to the extent that pumpers claim and CEO's protest it is happening. I think the word that should be focused on is "EXTENSIVE".
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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posted
I*do* agree NSS/MM are "boogeymen,* but also believe whatever problems there are? DTCC is part n parcel with problem--why else would they grant themselves a "a pardon in advance" for crimes that "might be" committed?
Saying 85% of FTDs are cleared up is a dubious honor--that leaves 15% unresolved!
posted
the problem is too many OTC & Pinks o/s changes so much & the increase is not reported on time, OTC only. the pinks do as they please. EVERY stock needs to be made to post quarterly the a/s, o/s & float period. they dont need to file all the rest required to be fully reporting but they must file the share structure. this removes both naked shorting & crooked CEO's.
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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What do you think the impact of a 500M NSS position would or should have had on a company with an O/S of 4B, and maybe, 2 / 3 B, of that being float, when they changed their symbol only?
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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posted
if there really was 500 million short on 2 or 3 billion thats a big % of the float. 25% of 2 billion it would hurt the pps a lot if it was a hi volume stock. but to prove 500 million were short you'd need a honest company with current & quickly updated o/s figures matched to trading numbers. in the land of pinks odds are its the CEO diluting not mm's shorting. still it is possible. f'in crooks all over the OTC on both sides of the fence.
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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quote:Originally posted by buckstalker: Sorry Ric...no offense but...I Don't Believe It!!! They will never admit that they have a problem here...
I just posted the article. Really no comment on how truthful it is just that there is a lot of abuse on the other end to of claims of NS when in fact it is the company causing the problem usually through secret dilution. Now reporting companies that state there o/s and it is obvious that their o/s or more the float isn't increasing then if the company want to complain then I will listen. But please don't tell me about a short when you refuse to give the specific o/s and float on a regular basis to see if there is dilution.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
ya got frontloading pump & dumpers on the trading side. you got mm's flippin shares between each other to control the pps. you got CEO's dilutin the piss out of a stock & never tellin the traders. you got CEO's putting out half true pr's getting the stock to run so that they can sell their bonus shares. a Red Wings announcer, Mickey Redmond says about close hockey games..."it's no place for a nervous person." ...well it applys to the market as well.
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
Well, the MM's have COMPLETE control of Bid / Ask process. Seems like that's all the power they would need, especially with a company that has more than 300M O/S.
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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posted
glad to see you too Ric...not trading anymore. no internet in my new office so i'm out of the game for a few more months. thus not watchin it much. just bashin CMKX at PB...lol
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
Good to see you too, Ric. It's been awhile. I'm sure everyone misses your reailty approach. Lot of fantasy goes on these threads, we can always use someone's sane and sober point of view. It's kind of refreshing after reading some of these pump threads of stocks with Billions os O/S.
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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posted
any company with over 500 million in the float will be hard pressed to see a penny. too many ppl taking profit as well they should thus never getting demand to pass supply.
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
ric &will,either you are are working for the wall st institutions behind the nss scam or your powers of reasoning & deduction are completely absent.are you living in a bubble?.get a dose of reality,go check bob o'briens blog * thesanitycheck.com "the spin machine on overdrive -the dtcc spins the NASAA forum like a top".this exposes the complete drivel the DTCC has put out.knowingly or unknowingly you have become lackeys for the super rich of wall st(the bad guys).you have done a disservice to the small investor & small companies (the good guys), by publicising this piece of propaganda.there are many other excellent articles on this subject at this site & many other sites(anybody who wants to know let me know).be part of the badly needed 'MARKET REFORM MOVEMENT' (super good guys)not part of the problem. p.s.this scam is the same scam(watered down stock) that lay behind the 1929 crash.
Posts: 22 | From: georgia | Registered: Sep 2005
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posted
Actually I think anyone will tell you that is far from the truth. I swing trade pennies and have wrote several articles on penny trading. You would learn a lot to listen to people like Will. I have been on this board like will for over 2 years now and traded pennies for a very long time. I know what I am talking about.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
CMKX will be the stock that bursts the naked short bubble. its not short 1 share & the cert pull is proving it. Ric & I ran the numbers over a yr ago & was trying to tell folks it wasn't short. crooked CEO's have taken a real problem & made it almost impossible to fix.
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
Exactly Bill and Companies like this is what is killing the march to stop abuses and the problem with sites like thesanitycheck is they have been using these companies like CMKX as there poster stocks. If they really want to fix the problem then they need to stop promoting these scam pinksheets as there NS floor show.
And yea I do know NS is a problem but I also know how many of these non reporting companies that are abusing the issue for there own gain while hurting the fight in general.
-------------------- Invest with your brain not with your heart. Posts: 4405 | From: Bristol, Tn, USA | Registered: Aug 2004
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posted
Harsh and emotionally charged reactions are expected with this situation. It probably is the equivalent to investors as the abortion or gun control arguement is to society. Hypothetical and issues falling in the realm of unprovable usually breed polarization. It's good to see a descenting point of view. Afterall, that's how minds are changed, by facts. If/when I see enough factual informatiom, not conjecture, inuendo, supposition, theory, but cold hard facts, I'll change my mind.
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
the pps of a stock is manipulated by mm's & wall street in general, rich get richer does apply. if you watch a stocks trades thruout the day you can tell when it happens. you can also tell when its dilution by the company. us little guys have got to be quick on the trigger in both buying & selling or its impossible to make money in pennyland. the 1 small rule change i suggested above would go a long way in leveling the playing field & expose naked shorting to the light of day in a more realistic manner.
-------------------- "keep your stick on the ice & your cup firmly in place" Posts: 3651 | From: Algonac, MI. 48001 | Registered: Jun 2004
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posted
I love when you visit a thread, and maybe do no more than post some facts, perhaps a jumbo O/S from a 10Q, or a history of R/S, or a given MM selling millions of shares on the ask for a month, (indicating dilution). When you see obvious dilution you have some pumping shareholder calling it accuumulation. When you have done nothing but state a fact, they counter with all types of party line arguements. If you challenge them the arguement is usually three phased.
Challenge them with, prove your position, and you get : Prove me wrong. Usually the proof lies with the person making the claim, never understood that.
OR
If you press for them to prove their position you get: I ain't doing your DD for you, do your own DD.
Then finally its:
You're a paid basher, go tell your boss he ain't getting any cheap shares from us.
I just love their logic !
Anyway, I won't be stapling any 1099's or W2's to my Income Tax forms from wall st institutions behind the nss scam this year.
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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There were two MM'S sitting and selling the ask for over a month. I specualted dilution, others specualted accummulation or company buy back. Millions sold, (actually 100's of millions), PPS dropping like a rock. Fianlly they updated there A/S, O/S, Float,on pinksheets.com and low and behold, they dilluted te O/S by 38% and the float by 27%. (I think those were the percentages, been awhile since it happened). That was a recognizable pattern.
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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posted
Tex, recall the biginning of PBLS's current run?
It was setting at .021 / .0225, and they PR'd a fantastic great sounding acquisitions. Everyone was salivating thinking .12 was on its way again in a matter of weeks. Suddenly, SCHB shows up on the ask selling like crazy. Everyone watched in horror as the PPS dropped to .013. PBLS being a pink, and not updating or reporting you may never know what that was about, but logic tells me it was dilution, modest, but still dilution. Can it be proven? No, but that sure is what it looked like?
-------------------- A million seconds is 13 days. A billion seconds is 31 years. Posts: 4893 | From: Burbank IL USA | Registered: Feb 2004
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