Due to popular request......... These are the official exchange lists for Reg SHO. http://www.nyse.com/RegulationFrameset.html?displayPage=http://www.nyse.com/threshold/home.html ftp://ftp.nasdaqtrader.com/symboldirectory/regsho Couple of points. The exchanges make the lists rather difficult to access. Herb Greenberg pans have a very high correlation to this list. You'll see many of these stocks that guys post on this thread wondering why the stock is up so much. Many of the companies have warts. That's why they're here. Be careful. But they do make mistakes. GROW is one. Have at it. If you catch one, post it here. I'd like to see it.
Thanks for posting them up. I wasn't able to find the Nasdaq one myself. Could you explain what exactly it means when a stock is placed on this list? From NYSE's site, it sounds like it goes on the list if there are unaccounted for shares? Any elaboration would be great
It's 'kiting', like in checks. You sell things you don't own, and basically, pass the fail to a buddy, who then passes it to another buddy. By selling fake shares, the prime broker keeps the negative rebate, the hedgie can force the stock lower. By passing the fails, they don't have to cover. As the stocks plummet, the accouint creates credits, like any short account. There are several games. In the OTCBB market, you can run companies out of business by doing PIPES, never really giving the company money, and forcing stocks into an abyss from which they can't recover. In UAL or Winn Dixie, they take a company on the ropes and do the same, effectively taking away any ability at all for the company to survive. Of course, when stocks go to zero , you make 100 percent, and the IRS doesn't receive a notice you closed the trade, because you never do. No taxes. In the Hibernia case, Hibernia was acquired by COF, and Katrina hit. A HF knew the deal had to be repriced, but couldn't borrow Hibernia; it was all tied up in the deal. So they naked shorted it. Simply, and it has to be with the Prime Broker's help, they sold shares that didn't exist, effectively creating an unauthorized secondary. In what we're talking about, they have identified a chink in the armour, and have shorted these companies to death, and with fake shares. The system has turned a blind eye. Now, with pressure coming in, they are being called in specific situations, or, the companies have succeeded, forcing buy ins. tHat's why with good news, the stocks rocket. You can go to vodiagroup.com and read some of Josh Galpern's reports about how the money gets spread around. He points out in one case that some 200 mm in fees are usurped from pension funds by the Prime Brokers; these are fees that Pensions would receive as Custoidians if the borrows were legit. Anyway, you aren't Wyatt Earp. you look for setups where the extra shorts aid the advance. It would be almost impossible to legit short these things. They would be long plays for you. theflyonthewall.com: Taser-TASR C2 Personal Protector also introduced at SHOT show-Buy@MERI Priced at $350 and small enough to fit in a purse, Merriman believes the TASER C2 has the potential to break the consumer market opportunity wide open. :theflyonthewall.com So put TASR on your list this morning, knowing that they fight in this one very hard. And I can tell you the politicians in Arizona are up in arms over the TASR screwing, and they haven't stopped - YET.
Naked shorting is an issue that is like illegal immigration in Michigan among politicians...something that every once in a while we get hopeful over because one politician starts talking about it...but then it's just that in the end. I'm sure eventually something good will come out of all this talk...but a few years ago there was a documentary about all of this, http://www.faulkingtruth.com/Articles/Investing101/1011.html but to the best of my memory it was never run.
nmx is looking like it wants higher. Did you know they naked shorted nmx into the offering? Next time they tell you excessive regulation drives IPO's offshore , tell them bullshit. No one wants to do business here because it's the wild west. You take 40mm in fees, and you can't keep your hands out of the pot?
Don't miss the Vodiagroup link he refers to. It's on the bottom of the page. SEC Proposal May Cause New Short Squeeze By Chidem Kurdas, New York Bureau Chief, and Christopher Faille, Financial Correspondent | Friday, January 12, 2007 NEW YORK (HedgeWorld.com)âThe new short-selling rule proposed by the Securities and Exchange Commission could give rise to a new kind of hedge fund strategy, and in the process create a nasty headache for market makers, according to a study by Josh Galper of Vodia Group LLC. Short-selling rules that have been in place for the last two years, called Reg SHO, allow market makers to short stocks without having to borrow the underlying securityâin the common phrase, to short-sell "naked"âwhich is illegal for other players. The rationale for this exemption is to allow market makers the necessary flexibility in the performance of their functions, but there have been objections to it, and the SEC recently proposed to limit naked shorting by market makers. For example, in his comment letter to the SEC, the president of the North American Securities Administrators Association charged that market makers have incentives to facilitate non-market-making trades under the guise of market making. Under the new rule, market makers would need to cover their shorts in securities that become hard to borrow after the trade, even if they were not hard to borrow when the short selling occurred. A market maker that is short a security that goes on the lists, published by exchanges, of the hardest-to-borrow stocks would have 13 days to cover the short. Mr. Galper said if the proposal passesâhis guess is that it willâonly a small portion of securities will be affected but buyers and sellers will face novel conditions. He pointed out that some market participants may attempt to squeeze the price of the affected stocks or the rebate rate for borrowing them. He argued that the proposal would advertise a new type of short squeeze to the market and impose a new type of financial risk on market makers. In particular, some hedge funds may be able to track the affected stocks as they go on the hard-to-borrow list and buy them, knowing that market makers will need to cover the shorts in the specified time. This could become a strategy: corner the securities that market makers have short sold and drive up the price. On the other hand, funds that are already short the securities in question will feel the effect of higher lending rates when demand goes up for borrowing the shares. An example: New York Stock Exchange Group shares. They went on the hard-to-borrow list on Sept. 22 and rose 63% in the next two months. Under the proposal, this would have imposed significant additional costs on market makers or specialists that were shorting as part of their function to buy and sell the stock. In a related development, the SEC also proposes to abolish the general "grandfather clause" of Reg SHO, increasing close-out pressures on all market participants, including hedge funds and market makers. The new rule would force participants, within 35 days of the regulation going into effect, to close out short trades where the stock has not been delivered on time. This would create huge short-term volatility in the affected names, Mr. Galper warned. CKurdas@HedgeWorld.com CFaille@HedgeWorld.com http://vodiagroup.com/site/news.php
A question for anyone, a stock that I was interested in is on the reg-showlist, they recently announced that they will pay a dividend. So what happens in this case? Thanks IB reg-show list http://www.interactivebrokers.com/e...hp?cntry=regSHO&tag=Reg SHO&ib_entity=llc&ln=
You'll get it. Be sure to check though. they swing the trade around and make loot on the options. Then, they cover the dividend.That's why they fight so hard about mm exemptions and that sort of stuff.
truly, the most despicable episode in our tainted financial history. Now, themanipulators dictate corporate policy through extortion.... 11:29 IIG Hearing postiive rumors on IIG (21.57 +0.43) Word we're hearing is that IIG management is "sick and tired" of having more than 50% of the float shorted, due in part to what it sees as frivolous rumors. Also, management is upset that the SEC not doing much to enforce the so called "naked shorting" of the stock (IIG has been on that list for nearly 90 days now). As a result, hearing that IIG management is thinking about agreeing to an LBO offer north of $32 presented about 6 weeks ago. Also, management is thinking about a second option -- reclassifying the stock, which would mean all outstanding shares would be called in by brokerage houses, and new shares would be issued, in an effort to flush out shorts. BriefingTrader Note: Just keep in mind it's a highly shorted and volatile name
2000 companies dead, billions stolen. This is one of the hundreds and hundreds of companies not on the SHO list because of grandfathering............ http://www.forbes.com/home/free_forbes/2007/0212/068.html These monies are being channeled offshore and when you see those suitcases of cash in the Middle East, this is one of the ways it got there. They got Badian in Austria, btw. Refco, Austria, get it?