If you read my posts on this thread you will see exactly how to semi legaly get around the whole naked shorting issue but it is fraught with great risk because essentially you end up being at the mercy of anyone who decides there is a great enough incentive to take it private and I think that that creates a self limiting amount of naked shorting. Still think that if the market holds up OSTK will be much higher come March.
You know, in revisiting this thread I am starting to wonder how much of the naked shorts out there are due to the market makers exception. They don't have to borrow to short or need an uptick. All they need is to keep an inventory to help smooth volatility.
Apparently you do need to learn to read more carefully. I wrote, "if OSTK was the opportunity that some are making it out to be..." I didn't say anything about its merit as a company. To spell it out (again): if the opportunity was there to take this company private and hose illegal shorts to the tune of billions (or atleast hundreds of millions)...don't you think it would already been done? Don't you think Cerberus, KKR or others would have already put together a package to arb it?
This is from Silicon Investor. Elgindy awaits sentencing. He had, per his trial transcipts, two websites. He used Silicon Investor, but had a paid site that told the larger number of players what they were up to, but kept the early moves for his buddies to get in early, and of course, ultimately, he was the first tjo get anything, so he front ran everybody, according to testimony. This post not only tells you there is naked shorting, but that they are ready for the next scheme, and simply want to profit more. If you people really believe this stuff is good for the rest of us, You should sleep in the woods like the animals you make yourselves out to be. I post here in the hope that one set of eyes sees this for what it is, and helps me end it. I learn more everyday,. and unfortunately, it gets uglier, as I knew it would. "The game is the same........." he says. Naw, no naked shorting, no holocaust, nothing horrible every happens. Now, your next assignment - guess where the money goes????????????????? To: peter michaelson who wrote (92628) 10/2/2005 9:28:46 PM From: Bear Down Read Replies (1) of 92630 In my view, the bad guys won Peter, do you think the market makers are the bad guys?? Cause they are clearly the winners. They got back their monopoly on nekkid shorting. You don't see pump and dumps being pumped higher because of the elimination of "nekkid shorts". You don't see it any easier to run a pump and dump, so you can't call the scam insiders the winners. The game is the same, the profits just go to a smaller group of players. No more sharing profits with the intelligent, better-informed part of the stock playing public. That group became too large and too loud for their own good. One could only hope that IF a similar oppurtunity ever presents itself again that the individuals that figure out the legal loopholes will not tell the secrets to anyone, ecxcept of course me
since this is the OSTK board...... Friday news...... (theflyonth..) Overstock.com-OSTK puts more active than calls on higher implied Overstock.com-OSTK puts more active than calls on higher implied Volatility - OSTK is an online community of auction buyers and sellers. OSTK October call option implied volatility is 55, put implied volatility of 67 is call volatility because traders are having a difficult time borrowing OSTK stock against their short OSTK positions. OSTK 26-week average option implied volatility is 50. OSTK intra-day call option volume of 289 contracts compares to intra-day put volume of 1,738 contracts. Above average option implied volatilities suggests larger price fluctuations or risk.end "The trick to a bottom is to watch the puts. Where there is day three of a sell off and you see big put buying, you know the shorts have over extended the play. The problem is, you need to panic them out of their puts........." Jim Cramer (never thought I'd quote him.......) on XLE
http://www.bloomberg.com/apps/news?pid=10000085&sid=aHySmg8vDh9g&refer=europe I am fully aware of what the hedgies find fault with in OSTK. "But why don't they EVER, I mean EVER, address the amount of time that OSTK has spent on the SHO list, which, to remind you young bucks is a tremendous amount of unsettled trades. You are not analysts. You are supposed to be elite traders, hence elitetraders.com Hey Jeff, Herb, Carol, John......you're all geniuses. I admit it. But please. SETTLE THE TRADES. You know, you guys are being hosed right along with the rest of us, but you're to blind to see it. I guess it is more fun to hang with the quarterback than with the nerd with the pocketprotector. But, if you keep screwing w/me, I won't lend you a pencil.
http://finance.messages.yahoo.com/b...=1600670676&tid=ostk&sid=1600670676&mid=45573 This is really Patrick Byrne, and he really reads this thread. Now this post if fundamental in nature, but he does go into the horrible, frightening behind the scenes intrige these hedgies play. If you don't spend the time reading this post, don't bother posting here anymore. He answers the questions. This ain't my first rodeo, and I know Chicken Salad from the other stuff. This guy is real. He is not traditional Wall St., and I've been there 23 years., but he is mensch.
They don't mention "naked" and they don't say he used tactics not unlike the ones Gradiant is alleged to have used, but his trial transcripts do. TSX-V's Global client Elgindy facing asset forfeitures 2005-10-03 15:34 ET - Street Wire by Stockwatch Business Reporter The U.S. Department of Justice is seeking $11.8-million in assets belonging to California short seller Amr I. Elgindy, also known as Anthony Elgindy. In a New York court filing last week the department asked for more time to assemble the paperwork necessary to claim Mr. Elgindy's considerable assets as the proceeds of crime. (All figures are in U.S. dollars.) Mr. Elgindy, a former client of Vancouver firm Global Securities Corp., is in a New York jail awaiting sentencing on securities fraud and extortion charges, among other things, for a scheme in which Mr. Elgindy obtained confidential FBI information on several companies and shorted them while spreading the negative information through two websites he controlled. The list of stocks Mr. Elgindy shorted, provided by the DOJ to support its forfeiture claim, is an interesting read. It includes well-known U.S. names like ImClone Systems Inc. and lesser-known names like former Howe Street promotion Nano World Projects Corp. Mr. Elgindy was found guilty on 10 counts of a 32-count indictment earlier this year after a 12-week jury trial. Also found guilty was his co-accused, former FBI agent Jeffrey A. Royer, who provided much of the confidential information used by Mr. Elgindy. Mr. Elgindy's indictment Mr. Elgindy's short-selling scheme came to an end back in May, 2002, when the U.S. Department of Justice arrested him for fraud, alleging he successfully shorted several companies while decimating their prices by distributing confidential FBI information. The shorting was done at least partly through Vancouver brokerage Global according to the indictment. "Elgindy initially communicated negative news about the Targeted Companies and his short selling recommendations to the subscribers of AnthonyPacific.com, who paid him up to $600.00 per month, so that these subscribers would have the opportunity to short sell stocks before the public release of Elgindy's recommendations," the indictment read. Mr. Elgindy's subscribers took the information and posted it in chat rooms and other websites to exaggerate downward pressure on the companies involved. In some cases, Mr. Elgindy and his co-accused would even report the negative information to the U.S. Securities and Exchange Commission to "hasten regulatory and law enforcement action, which they knew would cause the stock prices to fall sharply once such action became public." The coveted information Mr. Elgindy gleaned from the FBI came mostly from one of his co-accused, Mr. Royer, a former FBI agent in Oklahoma. "Royer obtained the information ... from the FBI's National Crime Information Center database, which contained confidential criminal history information, and the FBI's Automated Case Support database, which contained confidential criminal investigation information," the indictment read. Mr. Elgindy eventually established such a strong reputation for being able to decimate a stock that he was able to extort free shares from several companies in return for a promise to leave that company out of his shorting scheme. "Sometimes extortionate demands were coupled with threats to report a company's activities to the SEC or FBI," the indictment read. There was no indication in the indictment that Global had any idea what Mr. Elgindy was up to. The proceeds of crime The Department of Justice, now that it has won its case, is trying to secure Mr. Elgindy's sizable bank account and his home in California as the proceeds of crime. In a 47-page memorandum supporting the forfeiture the DOJ provides a list of companies Mr. Elgindy shorted and how much money he made shorting them. The ImClone shorting It turns out one of Mr. Elgindy's more profitable shorts was ImClone Systems, the subject of home decorating diva Martha Stewart's legal troubles. ImClone shorts netted Mr. Elgindy $516,511 over his two-year shorting scheme according to the DOJ. Ms. Stewart was convicted for for lying about her sale of $228,000 worth of ImClone shares in December, 2001. Shortly after Ms. Stewart sold, the company tumbled when it disclosed government rejection of one of its drugs. Mr. Elgindy, apparently a better trader than Ms. Stewart, was shorting the stock as early as February, 2000, through to May, 2002. Canadians on the shorting list The Canadian companies on the list include Micromem Technologies Inc., once a high-flying Winnipeg Stock Exchange promotion, whose press releases are compendiums of technical jargon. Micromem shorts apparently made Mr. Elgindy $272,297. The smaller players on the list include Nano World Projects Corp., a promotion run by Howe Streeters Robert Papalia and David Hunter that resulted in market manipulation prosecutions in both Canada and the United States against Mr. Hunter and Mr. Papalia. Mr. Elgindy's Nano World profits, $45,270, came between April 11, 2000, and July 6, 2000, as the stock fell from its $24.50 high to $5.50. There was no indication Mr. Elgindy ever worked with Mr. Papalia and Mr. Hunter, who were accused of manipulating the stock up, not down. Another smaller player on the list was Freedom Surf Inc., a U.S. market manipulation in which convicted fraudster Allen Wolfson used accounts at Canaccord Capital Corp., Union Securities Ltd. and Rampart Securities Inc. to manipulate the stock to $40. There was no indication the Canadian brokerages were anything other than innocent conduits, nor was there any indication Mr. Elgindy worked with Mr. Wolfson. Like Mr. Papalia and Mr. Hunter, Mr. Wolfson was accused of manipulating the stock up, not down. Mr. Elgindy apparently made $40,452 shorting Freedom Surf. The unprofitable short Not all of Mr. Elgindy's shorting was profitable, however. His worst performer was GenesisIntermedia Inc., a California marketing company, which cost Mr. Elgindy $707,446 in shorting losses. Mr. Elgindy shorted the stock numerous times starting in December, 2000, but the pesky stock kept rising, going from $5.91 on Dec. 15, 2000, to $18.77 by June 28, 2001, after adjusting for splits. Over all, however, the DOJ says Mr. Elgindy's shorting was profitable enough that he should forfeit his house plus $11,850,909. Mr. Elgindy, meanwhile, is detained in the Metropolitan Correctional Center in New York awaiting sentencing for both the short selling scheme and unrelated charges of boarding an airline using fake identification. -------------------------------------------------------------------------------- A fee has not been paid to Stockwatch to distribute this bulletin. A fee was paid for any attached advertising. THIS IS NOT A RECOMMENDATION TO BUY OR SELL ANY SECURITY! You are on this mailing list because you registered at www.stockwatch.com Mail frequency is one per day To remove yourself from this mailing list, access this URL: http://wwwa.stockwatch.com/sw/unsubscribe.dbm For more information about this service please contact the advertising department at Stockwatch 1-800-268-NEWS (6397) or 604-687-1500. Canjex Publishing Ltd. - Box 10371 - 700 West Georgia St - Vancouver BC Canada V7Y1J6 This email complies with the US Federal CAN-SPAM Act of 2003 Genesis Media is the stock that took down MJK Clearing, the largest SIPC failure to date (more and bigger coming) at the hands of Khasogi and DeutscheBank. KHASOGHI, THE ARMS DEALER. GET IT. INTL ARMS DEALER, NAKED SHORTING FRAUD. PUBLIC RECORD . GET IT????????? DO A SEARCH MJK CLEARING. Elgindy was outfucked on that one. But IMCL. Martha did the time. AMIR and the boys cleaned up.