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Author Topic: Rule 144- Restricted Stock
IWISHIHAD
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Check into the costs (if possible) in selling these stocks prior to selling and hope for a fast handling time to make them saleable.

I am still processing one and it has gotten uglier and uglier the farther it has gone along.
Lots of bs, different answers every time i call to check progress on getting it cleared to sell.

I hope others have had better luck in their 144 sales.

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PCola77
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I had the same luck as you.

Cost $250 for the broker, $300 for the lawyer.

I called probably 11 times during the pricess and everytime they had a new excuse for what was taking so long, and none of them knew sh*t. They fu*ked me out of over $5,000 with their delays.

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IWISHIHAD
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My charges so far are $250 broker fee, $250 lawyer fee, $150 misc which includes a transfer agent fee. When i asked what my charges might be before i started this 144, the rep said probably $250 total. We do sign that open end agreement with the 144 form which pretty much allows these brokers to do what they want.

I have all these charges taken out of my account yet the stock is still not saleable. I have address this with the broker again.

The latest problem is that the lawyer that was handling the opinion (listed on company website) sent it to the broker, who sent it to the TA for stock cert. The TA sent these shares back to the broker and stated that this was not the lawyer that could do the opinion. So now they have to send it back to the TA to try and get it approved again.

I guess i will see how this plays out and then deal with it accordingly.

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IWISHIHAD
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Round 400. I now have a person higher up in the brokerage firm in the middle of this thing. They have all the recordings of my conversations that they have reviewed. Now this person is frustrated and is handing the transaction, i will see what happens now.
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T e x
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keep us posted... good thread

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Nashoba Holba Chepulechi
Adventures in microcapitalism...

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PCola77
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LOL (or not really, I guess) They had called to ask if they could withdraw the $300 stright from my account to pay the lawyer. I said okay. Just saw an $80 "check writing" fee on my account.

A**holes.

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IWISHIHAD
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I am not sure at this point that i don't have a fee for writting checks also. I was laughing at your comment PCola, but i did not want to look to carefully at my account knowing i might be laughing at myself also. I have not had the broker completely break down the vague charges shown on my account. I am not done yet, so i will wait till the end to choke on the total charges.

My latest problem was that they just notified me that they needed a irrevocable stock or bond power sent to them to send to the TA. I asked why this was not included in the original paperwork for the 144 sale. They said i made a good point and they would look into that point, like they haven't run into this before. They told me that the TA does not always require this document. I pointed out to them they are suppose to be the experts and we are suppose to be the novices. I would bet if it were costing them for the delays they would make sure that it was done properly, but then again you never know these days.

I guess this is called live and learn, again.

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IWISHIHAD
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I called again yesterday assuming my 144 papers were going back to the TA again last thursday. I was told they had my final paper(Irrevocable Stock or Bond Power) arrived Wednesday of last week and that's all they needed to get this thing finished. I sent this document special mail to get it there faster. Yesterday they start telling me that they had to contact the company to get the shares and that the person who handle this would not call them back, they said they had called 5 times. I asked why would you need to contact the company, you had the shares already and the only thing you needed was the irrevocable document.

As you can see this thing just keeps going in circles. Today i did get a call back from the person towards the top of the company who has been involved awhile now. I had left a message yesterday about my new problem. This person had informed me last week it was ready other than my final document. She had contacted supervisors in the company that had told her that the 144 was ready to go last week. She indicated she let some supervisors know that she was not happy with what has went on with my sale. Of course that's what's she telling me. I am sure this person is getting tired of my calls, which might be my biggest chance of moving this thing along.

It was off to the TA today and there was no reason it should have been delayed (that's what they told me) everything was there they needed. I was told to contact her from now on if it gets delayed any more.

This whole process is really a pain, there is a lot more to this but i have tried to shorten it as much as possible. The Saga goes on.

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BooDog
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I think you are well past the time to contact an attorney. Good luck.

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All post are my opinion. Do your own DD. Who's clicking your buy/sell button!?

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BooDog
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http://www.ca6.uscourts.gov/opinions.pdf/04a0044n-06.pdf


http://www.vcresearch.info/open/forums.asp?topicid=3699&forumid=65

http://www.firstamericanstock.com/restricted_stock.html

http://www.learnaboutlaw.com/newsletter/v0007.html

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All post are my opinion. Do your own DD. Who's clicking your buy/sell button!?

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IWISHIHAD
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I have actually told the broker that i was considering court as a option. I would probably choose small claims which is always a crap shoot.

The real key will be how much the stock has gone down(if any) by the time this transaction is complete. I would have to consider the differance between when this 144 should have been complete(my opinion) and when it finally got done. At this point i can see how much damage has been done.(if any)

Not a lot of money involved here so will be a tough decision of whether i want to waste a lot more time by going to court.

Just seems to be another typical customer service problem, the people handling the service have no clue what they are doing and do not really care. What ever customer service is these days.

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IWISHIHAD
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Called the regular number for the broker today to see if my shares were back from the TA. They told me they had not received them yet. So i called the TA to see what was going on. They were very nice and told me that the shares were sent on the 12 and gave me a Fed Ex tracking number for my shares. I checked on them and the broker had received them on the 13. I called my contact higher up in the company and she sent emails out to managers to find out what is going on and why my shares are not cleared to sell. I will see what happens now.
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PCola77
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What symbol is this anyway? I'm guessing same as mine...
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BooDog
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maybe you'll get them when they're done shorting them. see the reference thread Posted by T e x on May 01, 2007 10:46: NSS mechanics.

jmo but these things happen like this for a reason. imo.

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All post are my opinion. Do your own DD. Who's clicking your buy/sell button!?

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IWISHIHAD
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Got my shares, the stock is TPDI. They were sitting at the broker and were able to be sold shortly after my call yesterday to the person higher up in the company. What a pain this has been. If i had not been following up i will bet it would have taken another month at least.
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IWISHIHAD
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I thought i was done with this mess. I showed late last night that i had money from my restricted sale available for trading. So i decided to set up a couple of trades for this morning. I look at my account this morning and i have maint. call in red letters.

So back on the phone to the 800 number to see what's up this time. I am told that my restricted securities had to go back to the TA for some special clearance. I explained that my account had shown money available for trading last night and now it's not available again, but the trade went through. I was also told before, that i could not trade on a margin account unless funds were there to cover my trades, so how can i possibly have a maintenance call.

I am also showing another $250 taken out for restricted stock fee. I asked about this fee and was told that that was for selling the restricted stock. I then asked if i would be charged another $250 for the second half of the sale since it took two days to sell, he seemed to think this would be a possibility. At this rate the sale of this stock would cost me around $1300 for my sale.

So another call to the person higher up. She looks at my account and says she will get the last $250 credited as soon as possible.

As far as the margin call, she indicated that those funds had not cleared even though they had shown on my account. She also indicated that since i had a margin account, that funds would be held out on any purchase when you have a margin account, even though these are non margin securities. I did not realize that they keep money out on every transaction when you have a margin account whether a short buy or not. I will just close my margin account now that the restricted stock is cleared, never wanted it anyway.

It really is a joke, you have to deal with the brokers and try and figure out all the junk when dealing with the pennies. No wonder i backed off on my trading.

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Free Muney
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all this drama is over pennies? do you need to worry about restrictions on Big Board stocks?

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Contrarian views always appreciated.... :p

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IWISHIHAD
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The only reason i posted this course of events was that maybe it will help someone else if they decide to sell a restricted stock. I think before someone sells, you have to try and hope you do not go in the hole while waiting for the restriction to get cleared. The problem is you never know how fast these pennies will drop in a short time. I am thinking i got lucky to still have made a little money when the restriction was lifted. The risk always seems to be in the investors court as usual.

As far as the question on big board stock restrictions i am not sure. There may someone else that can answer that question for you.

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T e x
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restrictions/Big Boards: if you wind up with restricted stock, sure. But the deal is, penny companies have been doling out restricted "junk" as so-called "divvies" for some time, now--just cuz peeps reacted to a "free lunch." Simply more scammy behavior: never hold a penny stock for such a divvy--play the buzz and run, then move on.

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Nashoba Holba Chepulechi
Adventures in microcapitalism...

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IWISHIHAD
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This one was a weird one for me. It never went up much from when i bought to the divy point, at least i could not get a sell for much over the buy price. I was lucky because i got out for the same price i bought in at so for me they were free shares. If every thing goes okay from here on i should clear over $1000, but do have some time in it and i feel i was lucky in this particular case.

I agree that if you can sell and make a buck before the divy do it because most of the time the price drops after the divy.

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T e x
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interesting! good for you--lol, you dang sure deserve a profit...

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Nashoba Holba Chepulechi
Adventures in microcapitalism...

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