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Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter

Location: Blogs Bob O'Brien's Sanity Check Blog    
Posted by:   bobo 9/13/2006 12:00 PM

Liz Moyer is single-handedly reintroducing the notion that members of the NY financial press can write coherent, unbiased, thoughtful, factual articles about the naked short selling crisis.

Her latest is a masterpiece, and frankly her series should garner Pulitzer attention.

Not everyone in the NY press corps is a co-opted quisling of uber-powerful hedge funds and Wall Street royalty. Apparently there are still bastions of integrity in the big apple, albeit very few and far between...

-----------------------

Here is a short, sweet, to-the-point comment letter to the SEC on Reg SHO, written by the US Chamber of Commerce. Not much needs to be said, although I disagree with their exception to allowing continued use of "easy to borrow" lists, and their complete lack of appreciation of the deleterious impact caused by the market maker exemption.

And here's one from the Utah Department of Commerce.

And here is a spectacular one from Dr. Byrne of Overstock.com.

All are must-read documents. Especially damning is the Overstock letter.

'nuff said.
Copyright ©2006 Bob O'Brien
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Comments (29)
Re: US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By newspaper on 9/13/2006 2:26 PM
Everyone and their mothers think the SEC requires mandatory buyins after T+13. Now where did we all get that crazy idea from?
------
To reiterate, the 13 consecutive settlement day requirement for threshold securities also applies to long sale fails. Accordingly we also we will be monitoring long sale fails where our clients have failed to deliver on or prior to settlement date of a trade.

Mandatory Close-Out Requirement for Threshold Securities – Reg SHO will require each market center (e.g., NYSE, NASDAQ) to publish each settlement day a list of securities that have been failing to the CNS system operated by NSCC for a minimum amount over a defined period. (See the SEC’s release for the details of these requirements.) These securities are called “threshold securities.” Reg SHO requires that a broker-dealer who is failing for 13 consecutive settlement days in a threshold security close out its fail to deliver position by buying the securities in the market.
------

What the F#$%? What the hell? Are they lying to us? We all know the truth is the SEC’s definition of the word Require is Recommend.

It should read “we recommend you buyin but don’t worry about it it’s not mandatory. “
I mean could they get sued for lying or misrepresentation or what?

BTW
Liz, Moyer is at it again with another great article. She is my hero. I love her.
http://www.forbes.com/2006/09/13/naked-shorts-jp-morgan-chase_biz_cx_0913naked.html?partner=yahootix
Re: US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By davidn on 9/13/2006 2:29 PM
Newspaper posted this Liz link in the last blog thread:

http://www.forbes.com/2006/09/13/naked-shorts-jp-morgan-chase_biz_cx_0913naked.html?partner=yahootix

We have to watch DTCC weasel language. Their quote is true - the DTCC can't directly enforce buyins, but their subs., the DTC and NSCC can.

The NSCC is literally the one that needs to be bought in. Someone owes them stock and they owe us stock.

The NSCC is the one that is failing to deliver to the buyer 100% of the time in non x-clearing trades.

In terms of getting the seller to deliver to the NSCC, they have the power to kick their members out or to grab collateral to force settlement of a trade.

The DTC also has the power to kick members out and sell their assets.

Both the DTC and NSCC filed documents with the BIS that declare their ability to enforce buyins, so this quote below is a lie.

In other words, this quote is a lie that is technically not a lie.

They lie through technicalities.

"We don’t have any power or legal authority to regulate or stop short-selling, naked or otherwise," the DTCC says on its Web site. "We also have no power to force member firms to close out or resolve fails to deliver."
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By davidn on 9/14/2006 11:27 AM
When you do a reverse split, you receive a new CUSIP.

Trades are done at the level of the CUSIP.

It's pretty hard to believe Global Links was a mistake as it was a different symbol and CUSIP post rollback.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By davidn on 9/14/2006 11:32 AM
There are 300 million Americans, so 5.5 trillion means their book grew $1800 per American man woman and child in a three month period.

Their current outstanding derivatives is $179,200 per person or $716,800 per typical family of four.

These are the guys that are screwing you the investor and the economy as a whole.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By Patchie on 9/14/2006 12:25 PM
Ok, so far we have 5:

JPMorgan Chase
Citigroup
Daiwa Securities
Goldman Sachs
Credit Suisse

Any more?

Yea...Morgan Stanley was fined $2.9 Million by the NASD in August for THOUSANDS of illegal short sales.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By bobo on 9/13/2006 2:31 PM
Wow. So the DTCC is again caught bald faced lying?

Huh.

They seem to do that a lot...
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By davidn on 9/13/2006 2:47 PM
They are definitely liars. The DTCC annual report discloses that THEY as a consolidated corporation are the ones that owe us shares.

They use technicalities to lie on a regular basis.

The BIS documents make good reading. There are other ones for DTC, etc., but this NSCC one is a start.

Some highlights. The last section is all about default procedures and how they assess the participant assets, then their own members for the loss.


Pg. 7

C7 They buy from the seller and sell to the buyer. If the buyer doesn't receive, it is because the NSCC didn't meet their obligation.

D1 They are privately owned

D2 It is a for profit corporation

pg. 11

F4 They can access the participants for a loss, first going after the collateral, then assessing the other participants.

pg. 21 D

They can enforce their rules and discipline members that don't comply. They can set collateral requirements for fails.

pg 22. F

They can kick out a participant that owes them shares. Other rules allow them to go after that participants' assets.

pg 34 F1

They guarantee that non x-clearing trades will settle

pg 35 F2-3

They guarantee trades will settle. They literally are the ones who owe the shares to the buyers.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By davidn on 9/13/2006 2:48 PM
The document.

http://www.bis.org/publ/cpss20_usnscc.pdf#search=%22bis%20nscc%20disclosure%20framework%22
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By rtway1 on 9/13/2006 3:21 PM
If the SEC does not get the message after all of these finely crafted letters, what is left. We have done 99% of the work for them all they have to do is read it. How many more lives have to be destroyed before they act. Again we all give thanks to the great people who have done so much work and especially Liz Moyers for being the pro she is.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By newspaper on 9/13/2006 3:31 PM
When no one else will touch this; When no one else will write about this with any fair semblance of neutrality; Where does she get her courage?
Almost any other media piece on naked shorting and FTD’s is heavily derogatory towards the people who believe NSS harms the market place and very light on the facts that prove that it does.

It is repugnant how they treat this topic. How they are trying to portray short sellers as brave mavericks and naked short sellers as heroes who perform a public service by destroying “bad overpriced” companies. And they treat people who bring up FTD’s or NSS as fringe, imbecilic, dirt.

If all longs want every stock they own to go to 100 every short wants every stock they short to go to 0. How does that make them unbiased? How is Rocker and his minions smarter than all longs? Is it because he can read a Q or a K and ascertain that this or that particular stock is overvalued by his divination process?

A stock is worth what people are willing to pay for it and if enough people feel that a stock should have a high P/E or P/S so be it. How does that give the small amount of brokerage houses the right to completely illegally strip any and all value from a stock which the retail masses believe is a worthy investment? And then the media provides cover to justify those illicit gains and massive downside pressure.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By Little Bo peep on 9/13/2006 3:47 PM
Excuse me,
it looks like someone is getting ready for the surprise.
The American public / sleeping giant is preparing for battle.
The shit will be cleaned up before we get to the battlefield right?

http://biz.yahoo.com/ap/060913/sec_broker_dealers.html?.v=1

Priceless quote.
"People generally don't like rich people lying and cheating," she said, "and that is how this is resonating."
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By Sean on 9/13/2006 5:14 PM
Thought you guys and ladies would like to read this!!!

KENNESAW, Ga., Sept 13, 2006 /PRNewswire-FirstCall via COMTEX/ -- The following statement is being issued by Rufus Paul Harris, Chief Executive Officer of Conversion Solutions Holdings Corp (CSHD) , a Delaware Corporation.

Depending on who you speak to, the events of the last thirty days could be the beginning of the end for a trading dynasty. The "Short" selling of Conversion Solutions Holdings Inc. (CSHD) company stock by a once loved and respected trading house may have sealed that company's fate as it is now perceived to specialize in "Shorting" OTC Bulletin Board stocks.

Short selling of OTCBB stock is legal, and is used by some companies to create liquidity where there is none. Why would a stock be stagnating, you may ask? In some instances anticipation of an upcoming 10K or a price reset might cause a company's share holders to sit tight and hold for a time. Companies that participate in the practice of "Short" selling either: buy their positions out of the market or go bankrupt.

Conversion Solutions Holdings Inc. has filed 8K documentation, announcing nearly 2.6 billion dollars in assets and yet TD Ameritrade (and their subsidiaries) continue to sell shares they don't own, or have the ability to borrow. TD Ameritrade responds not by buying the stock out of the market, to cover their "Shorts," but by refusing their customers their legitimate right to buy more OTC Bulletin Board: CSHD stock. Some Conversion Solutions Holdings Inc. supporters have shared their thoughts and feelings on the forum http://www.hotstockmarket.com, many of whom vow to press litigation against TD Ameritrade for not allowing them to purchase more CSHD stock. This stock has been on regulation SHO for 25 consecutive days and it has been confirmed that it has been "Shorted" by an objective "Third Party." To peruse this information please visit http://www.buyins.net, they assert, "the 'Shorting' is over...16,000,000 shares with others estimating the 'Shorting' to be as high as 60,000,000."

Currently, the Company has 62,000,000 shares outstanding, and simple calculations would assess a current book value for this company, as of today, at approximately $41.93 per share. Then the sum, when multiplied by a minimum of 16,000,000 shares shorted, comes to minimum of $670,880,000. A market analyst concludes this stock may be conservatively valuated at 2x its book value ($1,341,760,000) or put another way, about 4 times greater than TD Ameritrade's last year's net profit.

Some of TD Ameritrade's clients are already requesting their stock certificates in fear that TD Ameritrade may go under. They are moving their shares to other trading houses that they believe to be less likely to short this stock.

As Conversion Solutions Holdings Inc. nears its 10K due date (September 30, 2006) its share holders should look positively on the actions of their Chairman and his Board and their corporate wide confidence should be reflected and rewarded by ever increasing share values. Having said that and looking back on the events of the last thirty days I can say with certainty that it should be an interesting, but profitable ride for any person who wants to get on board to make the trip by supporting their company for the long haul.

For additional information concerning "Short Selling," please read "Darkside of the Looking Glass." by Dr. Patrick Byrne http://www.businessjive.
com/nss/darkside.html

Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By kevin on 9/13/2006 6:29 PM
http://www.pulitzer.org/EntryForms/entry_forms.html
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT COC Letter, Byrne Letter By InTheKnow on 9/13/2006 7:10 PM
It is nothing more than the worlds largest PONZI SCHEME! All the players are in place and they get there rake!
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By CMElec on 9/13/2006 7:49 PM
I would say that the worm has certainly turned. We've come a long way from Jeff Mathews "that's not how it works" comments in his interview with Dr. Byrne in 2005.

I believe the NSS snowball now has a life all of its own and it gets bigger daily.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By Sean on 9/13/2006 9:20 PM
FYI!!

American Way Reverse Split Squeezes Shorts
The following is an excerpt from a press release issued on April 6 by the American Way Business Development Corp. (OTC: AWYB): “…anyone currently shorting or planning to short [AWYB; formerly AWBV] stock are doing so at their peril. Entities and/or individuals engaging in this insidious practice will undoubtedly bear the full brunt of every available resource at the company's disposal.” With that in mind, American Way underwent a 1 for 5,000 reverse stock split that became effective yesterday amid controversy. If investors are starting to wonder if this stock appears to be a mirror image of Paivis Corporation (OTC: PAIV), you are probably on the right track as there are similarities. But there needs to be some concrete evidence of some mishap or potential misconduct of how the shares were distributed. That smoking gun is a confirmation by the Securities Transfer Corporation of Texas, which shows the latest data just moments ago of 3.698 million shares currently outstanding, with 60 billion authorized. With over thirty million shares traded yesterday and the price up dramatically, and similar action in today’s trading session, one has to wonder whether shares were sold short prior to the reverse split and must now be bought to cover those short positions to make sure there is a fair and equitable distribution of the reverse split shares
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By jojo on 9/14/2006 5:11 AM
"...and yet TD Ameritrade (and their subsidiaries) continue to sell shares they don't own, or have the ability to borrow. TD Ameritrade responds not by buying the stock out of the market, to cover their "Shorts," but by refusing their customers their legitimate right to buy more OTC Bulletin Board: CSHD stock..."

that happened to me when i placed an order to purchase 1000 shares of calpine energy, the decimated stock whose company was driven to file for bankruptcy.
it was still trading but they would not let me buy in. they told me it was for my protection!
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By from GATA.org on 9/14/2006 5:13 AM
Morgan Chase fined, censured for short-selling violations

Submitted by cpowell on 09:53PM ET Wednesday, September 13, 2006. Section: Daily Dispatches
NYSE Fines 3 Firms for Violations

From The Wall Street Journal
Thursday, September 14, 2006

NEW YORK -- NYSE Regulation Inc., the New York Stock Exchange's regulatory arm, said it fined Citigroup Inc., J.P. Morgan Chase & Co., and Wachovia Corp. a combined $3.1 million for separate violations of exchange rules.

J.P. Morgan was fined $400,000 and censured for violations of short-selling rules between 2001 and 2005. The NYSE said violations primarily involved the mismarking of orders.

Citigroup was fined $500,000 for supervisory failures on its precious-metals trading desk between January 2002 and January 2003. The NYSE said Citigroup's sole precious-metals trader at the time, Gail Edmonds, traded "in excess of her authorized limits."

Wachovia was fined $2.25 million for failing to retain and review email communications made between January 1999 and April 2006. The NYSE said $1.65 million of the fine will be waived in recognition of the payment as part of a regulatory settlement with the North American Securities Administrators Association relating to email communications.

In agreeing to the penalties, the companies neither admitted nor denied guilt.

A Citigroup spokeswoman said, "We are pleased to have this matter resolved. This settlement relates to an incident dating back to 2002; the firm took immediate action when the matter was discovered, and we have since strengthened our internal controls. Citigroup remains committed to the highest levels of governance and transparency."

A representative at Wachovia wasn't available to comment.

A J.P. Morgan spokesman declined to comment.

* * *
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By Concerned Citizen on 9/14/2006 5:18 AM
Ok, so far we have 5:

JPMorgan Chase
Citigroup
Daiwa Securities
Goldman Sachs
Credit Suisse

Any more?

And once again, Patrick gives another great quote:

"By levying a fine that is but a tiny fraction of the ill-gotten gains, the SEC is pinning a 'Kick Me' sign on the backside of the rule of law."
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By newspaper on 9/14/2006 5:56 AM
In several years, and thousands of R/S's, this is only the third time I've seen this type of thing happen. GLKC, PAIV, and now AWYB.

Somehow pre-reverse split shares get sold by retail into a post R/S share structure, collapsing the pps. This can trigger further panic sells of preR/S shares, and finally someone notices (ala Buckey today) that something isn't right, and starts buying the pizz out of it...eventually the market catches on, massive buying ensues, many naked shorts(FTD's) get created to satisfy orders, and those poor guys who sold the initial shares may not even know they're short yet, until they start getting calls from their brokers.. then the market further piles on, and the real squeeze is on..

http://www.investorshub.com/boards/board.asp?board_id=3479&PrevStart=3492
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By gregcable2002 on 9/14/2006 6:12 AM
Liz Moyers has a story that she can sink her teeth into now,the dtcc shouldn't have baited her on,well,the time is drawing nearer to the end for those who are robbing our future.TIC TOC TIC TOC Hey Liz,it's all about directing the right questions towards the right people.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By newspaper on 9/14/2006 6:15 AM
Sounds like Ceo's are trying to fight back. Chsd and Awyb, Pgwc
Interesting what is happening with AWYB it is similar to global links. And in all of the above cases TD Ameritrade does not let people buy those stocks. They only let People sell.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By Jumbo on 9/14/2006 6:30 AM
Conversion Solutions Issues Statement on TD Ameritrade
Wednesday September 13, 7:38 pm ET


KENNESAW, Ga., Sept. 13 /PRNewswire-FirstCall/ -- The following statement is being issued by Rufus Paul Harris, Chief Executive Officer of Conversion Solutions Holdings Corp (OTC Bulletin Board: CSHD - News), a Delaware Corporation.


Depending on who you speak to, the events of the last thirty days could be the beginning of the end for a trading dynasty. The "Short" selling of Conversion Solutions Holdings Inc. (OTC Bulletin Board: CSHD - News) company stock by a once loved and respected trading house may have sealed that company's fate as it is now perceived to specialize in "Shorting" OTC Bulletin Board stocks.

Short selling of OTCBB stock is legal, and is used by some companies to create liquidity where there is none. Why would a stock be stagnating, you may ask? In some instances anticipation of an upcoming 10K or a price reset might cause a company's share holders to sit tight and hold for a time. Companies that participate in the practice of "Short" selling either: buy their positions out of the market or go bankrupt.

Conversion Solutions Holdings Inc. has filed 8K documentation, announcing nearly 2.6 billion dollars in assets and yet TD Ameritrade (and their subsidiaries) continue to sell shares they don't own, or have the ability to borrow. TD Ameritrade responds not by buying the stock out of the market, to cover their "Shorts," but by refusing their customers their legitimate right to buy more OTC Bulletin Board: CSHD stock. Some Conversion Solutions Holdings Inc. supporters have shared their thoughts and feelings on the forum http://www.hotstockmarket.com, many of whom vow to press litigation against TD Ameritrade for not allowing them to purchase more CSHD stock. This stock has been on regulation SHO for 25 consecutive days and it has been confirmed that it has been "Shorted" by an objective "Third Party." To peruse this information please visit http://www.buyins.net, they assert, "the 'Shorting' is over...16,000,000 shares with others estimating the 'Shorting' to be as high as 60,000,000."

Currently, the Company has 62,000,000 shares outstanding, and simple calculations would assess a current book value for this company, as of today, at approximately $41.93 per share. Then the sum, when multiplied by a minimum of 16,000,000 shares shorted, comes to minimum of $670,880,000. A market analyst concludes this stock may be conservatively valuated at 2x its book value ($1,341,760,000) or put another way, about 4 times greater than TD Ameritrade's last year's net profit.

Some of TD Ameritrade's clients are already requesting their stock certificates in fear that TD Ameritrade may go under. They are moving their shares to other trading houses that they believe to be less likely to short this stock.

As Conversion Solutions Holdings Inc. nears its 10K due date (September 30, 2006) its share holders should look positively on the actions of their Chairman and his Board and their corporate wide confidence should be reflected and rewarded by ever increasing share values. Having said that and looking back on the events of the last thirty days I can say with certainty that it should be an interesting, but profitable ride for any person who wants to get on board to make the trip by supporting their company for the long haul.

For additional information concerning "Short Selling," please read "Darkside of the Looking Glass." by Dr. Patrick Byrne http://www.businessjive.com/nss/darkside.html

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

The statements contained herein which are not historical are forward- looking statements that are subject to risks and uncertainties that could cause the actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays beyond the company's control with respect to market acceptance of new technologies or products, delays in testing and evaluation of products, and other risks detailed from time to time in the company's filings with the Securities and Exchange Commission.




--------------------------------------------------------------------------------
Source: Conversion Solutions Holdings Corp
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By gregcable2002 on 9/14/2006 6:33 AM
TD Ameritrade and others are trying to cover their arss'es by not allowing buys,quess what? We know what they do and soon the grim reaper is coming to visit them.You dig a hole to deep there's always a chance you may not be able to get out,this seems to be what we are seeing now.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By kevin on 9/14/2006 6:40 AM
Can we get the states to ban the practice of "sell only"? If you are a brokerage, you have to accept both buy and sell orders - otherwise, it isn't an auction market.

Another change I'd like to see is to force market makers to show market depth. Right now they only have to show 500 shares above $.50 and 5,000 shares below it.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By clearthinker on 9/14/2006 6:49 AM
how can the SEC allow a mojor broker dealer to allow only selling in a security? Right before our eyes, these guys play the crooked game and what is the SEC doing?

zip
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By newspaper on 9/14/2006 6:57 AM
BY Art Gecko

OK, first things first.

Pre- R/S entity - AWBV - ~18Billion OS
post-R/S entity - AWYB - 3.6 MM OS

Now, on 9/11 the 1 for 5000 R/S was listed on the dailylist
http://www.otcbb.com/asp/dailylist_detail.asp?d=09/11/2006&mkt_ctg=NON-OTCBB

The split was effective on 9/12. What happened was that apparently some peoples brokers didn't reflect the reverse split and someone started selling millions of AWBV/AWYB (from their pre- R/S amount of shares) into the post R/S market.

since the R/S was official, and done properly through NASDAQ, what these people were actually doing was selling shares naked short. the result of these millions of shares being sold was that the stock with it's new 3.6MM OS plummetted to .002 or thereabouts with volume much greater than the 3.6MM OS.

People started noticing this, and given that this has happened before with GLKC and PAIV, people were sensitive to noticing it, and were quick to respond by starting to buy up as many shares as they could.

So we have several things going on here.
1. Company claims that there was massive shorting previous to this R/S. Maybe, maybe not. If so, they will have a hard time getting good shares on T+3 settlement on Friday.

2. The retail shareholders who are millions short because of their error in selling millions of shares naked short. Again, T+3 settlement on Friday, they should start getting margin calls.

3. Given that this traded 39Million shares in the last two days, and that I personally confirmed today that the OS is still 3.698MM OS, it is apparrent that there have been millions more shares sold naked short by brokers/MM's to fill orders. Again, on T+3 settlement on Friday, these MM's will have millions of FTD's (Fails to deliver) on their hands.


Now, in addition to just the above squeeze producing factors, this was on traders Nation, had an article on Ant & Sons http://www.antandsons.com/wordonthestreet.html and is building critical mass of exposure on various message board communities.

Also, the CEO emailed me personally to look for a PR re: all this "very soon".

Suffice to say, the coming days will be very interesting here.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By bbhindyou on 9/14/2006 7:06 AM
Sean as I started reading your post the song Domino came on and confirmed god has a sense of humor.Pretty lowbrow just like the rest of us practical jokes , pratfalls,slapstick and potty humor .This mess we call the american stock market has plenty of all of the above .Too bad we're the little guy who ends up in the crap.I guess it's always funny to watch the little guys go down in it but if we can throw some their way on our way down let's get the ones responsible with as much as we can throw.
Re: Forbes Again Cutting Edge on NSS Coverage; US Chamber Of Commerce Comment Letter To The SEC, UT DOC Letter, Byrne Letter By the rules get murkier & murkier... on 9/14/2006 8:47 AM
From Kirby Analytics.
http://www.safehaven.com/article-5876.htm
According to the Office of the Comptroller of the Currency for the U.S.A. in their Quarterly Derivative Fact Sheet claim that J.P. Morgan Chase's derivatives book grew from 48.26 Trillion notional at Q4/05 to 53.76 Trillion at Q1/06. That's RECORD new growth of 5.5 TRILLION notional folks!
Let's first try to quantify just how much a 5.5 TRILLION build in a derivatives trading book over a three month period really is, shall we?…(see web link above for explanation))
…Of course then again, maybe J.P. Morgan's blow out quarter where they conducted 5.5 Trillion new notional in derivatives had nothing to do with the precipitous drop in the price of natural gas at all. Maybe, it's just like authorities say, that storage facilities [that no one can practically see or measure] really are full. Maybe J.P. Morgan conducted all that trade to benefit shareholders. But I've got a sinking feeling that we'd never be told the difference if things didn't work out that way. That became abundantly clear when Dawn Kopecki reported in BusinessWeek Online in a piece titled, Intelligence Czar Can Waive SEC Rules,
"President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye."
So let's just say, if J.P. Morgan were manipulating markets deemed to be "strategic" or in-the-national-interest, they would likely be "excused" from proper or adequate disclosure to shareholders should their "bets" or schemes not work out quite as intended.

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