Post by WWJDthrume on Aug 18, 2004 10:23:23 GMT -5
A few times in the last 5 years there have been times of spectacular returns on all the penny stocks in general and some in particular. Sometimes this has coincided with a bull run in the stock market but it hasn't necessarily been because of that. At least 2 times the SEC has tried to legislate an end to naked shorting. As shorters covered and buying and selling was once again based on supply and demand the prices went up. It was possible to trade the news with some good DD and make some amazing returns.
We had a run last fall into the early part of the year that was wonderful. In April the Naked shorting law took effect and things got much worse. I saw much value seep out my penny stock portfolio which had performed so well. I now think the run up was due to covering and when the new law failed to have any teeth and plenty of loopholes; naked shorting returned with a vengeance.
We have a new law taking effect soon. I think I am seeing signs of improvement in penny plays in general. CMKX still appears to be shorted and I will wait for the company to announce the cure for their problem. The teeth in the new law takes effect in January 2005. I don't think we will have to wait that long for CMKX but we should understand what we are up against.
So I think this is a good shopping time for penny stocks which may have been victimized and have a good product or sales. Perhaps we should start a thread of just those who aren't diluting or at least not becoming a papermill. Here is a portion of a CMKX post that speaks of the law coming into effect. IMO-God Bless-Debi
Lets move on to new Short Selling Rules
Because of much pressure from the public the Federal Government has been forced to reevaluate the way the Markets Makers and DTCC do business. These two entities are like a married couple trying to help each other out but not for love but to scalp the public investors of trillions of dollars. These government bodies also fund the Securities Exchange Commission. So we have 3 entities all working in conjunction with each other…do we have any conflict of interests? Of course we do.
The new rule SHO is a rule to assist the shareholder which will stop most of the naked shorting that is done as the backs are turned by the SEC. Also this will stop DTCC from using their authority printing to attach Cusip numbers to illegally naked shorted shares which increase the floats of small companies beyond control of the company. This authority allows the naked short MM to avoid the illegality of the short.
Reg SHO was posted in the Federal Register on Fri. 8/6/04. It becomes "Effective" 9/6/04 i.e. it becomes Federal Law incorporated into the 1934 Securities Exchange Act. The "Compliance" date is 1/3/05. The regulators promise not to bust anybody until 1/3 because of the necessity to update software, etc.
At this point lets once again look at valuation and take into consideration the dates Reg SHO is effective 9/6/04 and compliance date 1/3/05.
We had a run last fall into the early part of the year that was wonderful. In April the Naked shorting law took effect and things got much worse. I saw much value seep out my penny stock portfolio which had performed so well. I now think the run up was due to covering and when the new law failed to have any teeth and plenty of loopholes; naked shorting returned with a vengeance.
We have a new law taking effect soon. I think I am seeing signs of improvement in penny plays in general. CMKX still appears to be shorted and I will wait for the company to announce the cure for their problem. The teeth in the new law takes effect in January 2005. I don't think we will have to wait that long for CMKX but we should understand what we are up against.
So I think this is a good shopping time for penny stocks which may have been victimized and have a good product or sales. Perhaps we should start a thread of just those who aren't diluting or at least not becoming a papermill. Here is a portion of a CMKX post that speaks of the law coming into effect. IMO-God Bless-Debi
Lets move on to new Short Selling Rules
Because of much pressure from the public the Federal Government has been forced to reevaluate the way the Markets Makers and DTCC do business. These two entities are like a married couple trying to help each other out but not for love but to scalp the public investors of trillions of dollars. These government bodies also fund the Securities Exchange Commission. So we have 3 entities all working in conjunction with each other…do we have any conflict of interests? Of course we do.
The new rule SHO is a rule to assist the shareholder which will stop most of the naked shorting that is done as the backs are turned by the SEC. Also this will stop DTCC from using their authority printing to attach Cusip numbers to illegally naked shorted shares which increase the floats of small companies beyond control of the company. This authority allows the naked short MM to avoid the illegality of the short.
Reg SHO was posted in the Federal Register on Fri. 8/6/04. It becomes "Effective" 9/6/04 i.e. it becomes Federal Law incorporated into the 1934 Securities Exchange Act. The "Compliance" date is 1/3/05. The regulators promise not to bust anybody until 1/3 because of the necessity to update software, etc.
At this point lets once again look at valuation and take into consideration the dates Reg SHO is effective 9/6/04 and compliance date 1/3/05.
AUTQ closed up 416% after being much higher.