posted
No, I don't think so. As a clearing house they are responsible because many people are in the same boat. It's their fault for allowing us to sell the stock when it should have been restricted. They should have not allowed the trade in the first place. From what I got yesterday, it seems like they are going to cover the trades.
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if MM`s are buying back shares and forcing shorts who sold to cover by depositing those shares into thier accounts then this whole house of cards could come down any second, then it will be trading on it`s own momentem and will slowly fall back into the teens. remember there could only have been so many shares shorted, not everyone was foolish enough to sell their restricted shares.
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PAIV Skyrockets 310% Tuesday on "Phantom" Merger Shares. May 24, 2006 1:00 AM EST
(By InfinitiStocks.com) There is a developing controversy in the OTC over hundreds of millions of newly issued PAIV shares (Paivis, Corp: OTCBB: PAIV) that were recently sold by their recipients. Apparently, shares of unknown origin were delivered as part of a merger/tender offer to former JPHC shareholders who held accounts with online broker Ameritrade. But where did these shares come from? On Monday, the Company released news which confirms both Paivis and the DTC have not yet allocated any Merger Shares to JPHC shareholders. "The Merger Shares are currently in the process of being issued by the Company and therefore as of the time of this press release have not been allocated to the Jupiter shareholders of record." The Paivis press release goes on to state, "Merger Shares have not been physically received by Depository Trust Company." Per the terms of the merger Paivis clearly stated, "These Merger Shares to be received by the Jupiter Shareholders are restricted securities as defined by Rule 144."
Nonetheless, alleged merger shares that (according to Ameritrade) did not bear the restricted legend began appearing in JPHC shareholders' Ameritrade accounts late last week. Widespread selling of these shares caused PAIV to tumble 90% to $0.0011 last Friday, on volume of 645 million shares. The stock rebounded a bit Monday, reaching a high of $0.0027 on heavy volume of 920 million shares. Following the news from Paivis, during Tuesday's session PAIV rallied and closed at $0.0073, up 247.62% from Monday's close on volume of just over 760 million shares. Speculation and initial statements from Ameritrade indicate that whatever "phantom" shares were sold will have to be covered in the open market. However, depending on the sources we've checked, there appears to be only 25 and 36 million free trading PAIV shares outstanding.
The question is, who will be required to buy these shares back? According to Ameritrade last week, the new shares did not bear the restricted legend, and thus were eligible for trade. Ameritrade customer correspondence states, "These new shares were to be restricted. However, Ameritrade allowed clients to trade the security unrestricted on Friday 5/19/2006 and Monday 5/22/2006." The correspondence also reads, "Former holders of Jupiter Global Holding who have sold PAIV will have a short position that may need to be bought back."
In our opinion, this statement raises serious questions concerning proper liability. Investors who contacted AT last week were informed via telephone and email that their new shares of PAIV were unrestricted and freely tradable. Word from Paivis is that it is the brokers who are at fault: these shares should not have been allowed to trade. To date, InfinitiStocks.com has not been able to obtain first hand confirmation from Ameritrade regarding the situation.
At 8:30AM Tuesday, Ameritrade ceased all trading of PAIV by its customers. Buying and selling resumed at AT just after 12PM, as PAIV rallied to a day high of $0.0087 on over 550 million shares traded. Ameritrade has indicated that trading on PAIV will again be suspended for their customers on Wednesday, until the situation and available options can be further explored. Meanwhile, it's trading as usual at other online brokerage firms including Charles Shwab, Scottrade, and others, none of whom appear to have yet issued JPHC merger shares to their own customers.
InfinitiStocks will report new developments as they occur. Retail investors with written correspondence from their brokers that helps explain this unusual situation are invited to forward it to us at: team-infiniti*infinitistocks.com.
posted
Seems like everyone is talking about the short position they have now. I am on the same boat. But can anyone tell me what happens when the shares of JPHC has been reorg? Wont we receive our shares back with a profit since PAIV has sky-rocketed? Arent we hedged? I mean, if we werent suppose to sell because we didnt have the sahres yet, then when we have it, wont it cover the short we made? ANyone?
posted
Guys get into RDYF...huge news and 52 week high is $100...
going to break the HOD now...
Rudy 45 Acquires Early Detect Marketing Wednesday May 24, 7:51 am ET Revenues to be Approximately $35-40 Million
SANTA MONICA, Calif., May 24, 2006 (PRIMEZONE) -- RUDY 45 (Other OTC:RDYF.PK - News) announces that it has entered into a new LOI effective April 30, 2006, to acquire EDI Marketing (EDIM), a wholly owned subsidiary of Early Detect Incorporated (EDI). EDIM will receive an assignment from EDI of all sales and marketing contracts with respect to EDI's integrated line of in-home self-testing healthcare diagnostic products. These contracts are estimated to result in revenues of $35-$40 million dollars. About EDI Marketing
Headquartered in Costa Mesa, California, Early Detect Incorporated employs 26 people in 4 different locations in Southern California, Phoenix, and Dallas. EDI Marketing distributes their products to some of the most nationally known companies in the U.S. They distribute nationally to CVS Corp (NYSE:CVS - News) and regionally to Costco Wholesale Corporation (NasdaqNM:COST - News). In addition, they also sell to major chains in Canada. EDI holds all patents on most of their products and either manufactures them directly or uses independent labs.
quote:Originally posted by Sith Trader: this thread is proof that this board is swarming with mms that naked short stocks
You got that right. Believe you me each and everyone of them have an Alias on this Board, and we don't have a clue who they are. They talk one **** and have the finger on the other button doing the complete opposite.
They're like the Goddam Neccessary EVil
-------------------- Now We Movin On Up!!
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Not going to happen I think... Ameritrade is stalling. I think they will let today pass, and break the trades to investors, and then cover the short positions down the road..
-------------------- Stick with Repo's plan in '07 - FRPT/DKAM!
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I just got off the phone with Ameritrade. They said that they are still talking to the company and that they were not the only brokerage firm that did not receive notice that the shares were restricted. From the posting on the last page, it seems like the liability would be on the brokerage firm, but I highly doubt it and there might be some litigation on this matter on who's responsible for the mess up. I do not believe that Ameritrade would tell its customers that they have to buy back the stock at its current price. This would cause huge litigations and problems and they would not want that to happen.
Personally, the PAIV is dumb. If they weren't clear on the shares and with these vague PRs and filed correctly with the SEC, they would not be in this mess. I hope they take responsibility and get this over with.
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For those who shorted, watch the L2's they're puttin a short squeeze on us here, so pray this tanks some more for your sake. Whoever flipped this this morning you did good.
It's downwards from here
-------------------- Now We Movin On Up!!
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No, and here's why. You're shares were supposed to be restircted for a year, meaning you can't sell them until next year. You would only be okay if the JPHC shares converted immediately to tradable stock. Basically you can't sell your shares now and promise to give them to the person next year when they come off of restriction.
quote:Originally posted by diablo: Seems like everyone is talking about the short position they have now. I am on the same boat. But can anyone tell me what happens when the shares of JPHC has been reorg? Wont we receive our shares back with a profit since PAIV has sky-rocketed? Arent we hedged? I mean, if we werent suppose to sell because we didnt have the sahres yet, then when we have it, wont it cover the short we made? ANyone?
posted
Sorry, was away from the board for a bit. Anyway, it obviously dropped more since you posted but looks like it's coming back now.
I have NO IDEA what to expect. It seems like it would HAVE to go higher if a sort squeeze is in play, and I have no clue how they could get around a squeeze. But if they find a way, this thing will tank like crazy.
This is definitely uncharted water.
quote:Originally posted by Johnwayne: PCOLA- Is this ripe for another run or is it going to sit in this range all day?
posted
This stock is a HUGE gamble. No way around it. If played right, it can make you a ton of money, but at ANY moment news can come out and it will tank. It is however a risk I am taking but I am aware of the potential for loss here. If you don't mind the risk, I think it's worth the play.
posted
I spoke to E Trade a few mins ago. The exchange rate for shares held at EOD on May 10 is already established at a rate of 1 jphc share to .46232 paiv share. We will benefit from any profit made by paiv. There is no word concerning shares purchesed after EOD May 10. Even if it takes a year to payout, I stand to make a LOT of $ on this baby!!
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No. Basically as far as you're concerned you are completely out of PAIV. You now have your restricted shares that you can't trade for a year. The price of PAIV form here on out is meaningless to you until next year.
quote:Originally posted by Fuzzy1018: i had to buyback at .0059, so if this thing tanks lets say go below that. then i'll be in worst conditions then i'm in now right?
Posted by: rookytrader In reply to: kermit4karate who wrote msg# 2061 Date:5/24/2006 11:18:57 AM Post #of 2121
I just talked to PAIV IR i asked if they been contacted by the NASD/SEC/AMTD......haven't been contacted by SEC or AMTD but talked briefly with NASD, basically said its what has been said all along that its up to amtd/and their acct holders to fix this mess.......
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quote:Originally posted by pharaohno1: j_mania, I really don't think so because if PAIV was clear all along, no one would be in this mess.
"clear all along"? Paiv has been clear, from the start! From the announcement of the merger finalization to yesterday's PR: the JPHC conversion shares are restricted and the TA has yet to issue the DTC any certificates. What aren't you clear on?
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