Will 2005 be the year of the small investor? For years (maybe forever) Wall Street has been controlled by "big money", those who control the pursestrings, and therefore, wield the power over the stock market. For the most part, the small investor has been left to gather crumbs, and many watched helplessly as their hard-earned investments and retirement funds took a beating, partially because of the "stock market bubble" of the late 90s, but also because of rampant corruption that has been allowed to flourish in the stock market itself.
Then, the tide began to turn in 2004, as small investors, fed up with naked short selling, corruption in many of the companies themselves, and a system seemingly rigged in favor of the elite few, finally banded together and demanded to be heard. The Faulking Truth took up the fight in March of last year, joining a handful of other voices who had been calling for reform in the stock market for years. It was a call to arms that was finally heard. When investors joined in the battle, we were able to collectively make measurable progress over the past year. We all worked together to expose the "Canadian Connection" to the naked short selling scandal, and when the scams moved to Berlin, we exposed that as well. As a result, hundreds of companies that were listed without their permission on the Berlin Bremen Stock Exchange succeeded in having their shares delisted from that exchange. We have continued to keep pressure on Dateline to air an expose' on the naked short selling scandal known as Stockgate, and that expose' will (finally) air sometime in the next few weeks. (We are currently awaiting confirmation of an air date from Dateline officials.) And our efforts to reach Congress have not been ignored, either. Our voices are being heard by those on Capitol Hill, and I am confident that we will see results from those continuing efforts in the very near future.
However, as with all worthwhile causes, our efforts have not been without opposition. Several online websites have recently sprung up with the specific purpose of discrediting those of us who would carry the torch for the American investor, and bashers continue to wreak havoc on stock message boards on the internet. The bashers have become more vocal, and more desperate in their attempts to discredit those of us who would speak out against corruption, claiming that those companies that have been abused by naked short sellers and those who invest in them somehow deserve to be driven into bankruptcy. All I can say to those who side with the very ones who threaten to destroy our stock markets is, "bring 'em on".
Let me clarify this one more time: Abuse exists on both sides of the issue, corruption exists both with some of the OTC companies, and even companies on the major exchanges (do the names Worldcom and Enron ring a bell?), many of whom use the naked short selling scandal to perpetuate their own scams against shareholders, AND with the naked short sellers and those who profit from their activities, including lenders, brokers, and the NASD and SEC themselves. The only way to expose ALL those who would abuse our system is by a full Congressional investigation. One basher, who says that he works for a hedge fund in Florida, had this to say about naked short selling, "Yes, it happens. But it happens in a venue that is beyond the reach of DTC or the SEC. So you've got your "YES". Now, what about it? Let's suppose, for the sake of a truly absurd argument, that there are a billion shares that have been "naked shorted" through DTC in Datascension. So what?"
So what? Let me make this point once more, and then I'm moving on: If the bashers are so certain that they are right, and that the corruption exists within the companies themselves and not with the naked short sellers, then they should be screaming for an investigation themselves, even louder than we are. It is only when the fraud is exposed, wherever that fraud exists, that investors will regain some degree of trust in our stock market system. And if that trust is not re-established, the market itself will eventually collapse under the weight of it's own corrupt system. In fact, there is only one reason that bashers would want the corruption (no matter where that corruption originates) to continue unabated: they are profiting from the current system, they are a part of the corrupt system themselves.
There has been much speculation as to the SEC's motivation behind the SHO Regulations, ranging from posts on message boards that say the "the SEC has been on our side all along" to accusations that the regulations will do little to improve the current problems that have plagued the securities market for years. It is the opinion of The Faulking Truth that any actions currently being taken by the SEC are a result of pressure from all of us who have carried the fight to the SEC and other regulatory bodies, including Congress. The small investor has finally become the squeaky wheel.
The SEC has finally implemented Regulation SHO, aimed at putting a stop to the abusive and illegal practice of naked short selling. On the evening of January 7, 2005, the first "Securities Threshold List" will be posted, after which a list of securities with excessive open naked short positions will be published each day. (NYSE "Securities Threshold List": www.nyse.com/threshold ) (NASDAQ, AMEX, and OTCBB "Securities Threshold List": http://www.nasdaqtrader.com/aspx/regsho.aspx )
According to the OTC Journal, "Under Regulation SHO, threshold securities are defined by two criteria: 1) there are at least 10,000 shares in aggregate failed deliveries for the security for five consecutive settlement days and, 2) these fails to deliver constitute 0.5% or more of outstanding shares.
If the failed deliveries for the stocks on the Threshold List are not rectified within 13 trading days, the market maker to whom the shares was sold will effect a "buy in" in the open market.
The Threshold List could become a favorite resource for locating trading ideas on the long side. It might become the sport of hedge fund managers. These new regulations are emerging out of down side excesses from the the 2000 to 2003 time frame. The pendulum is finally swinging back to a level playing field. These actions by the regulators will help the OTC Bulletin Board become the incubator it is intended to be."
Will the recent actions of the SEC truly put an end to the abusive and illegal practice of naked short selling? Let's hope so, because proposed regulations submitted by the NASD aimed at curbing naked short selling were scrapped after Regulation SHO was enacted by the SEC. Oddly, the NASD denied to the very end that they were planning to scrap their proposal (Rule 3370), even though that information was leaked to the public through a "slip of the tongue" by SEC official Peter Chepucavage, which was detailed by the Faulking Truth in "He Said, She Said: SEC, NASD at Odds over Status of Proposal". Even though I was told by the NASD that it was not being rescinded (since it would be illegal to take any action without notifying the public), Rule 3370 was officially repealed on November 30, 2004, almost four months after that very same information was leaked to "insiders". As always, the public (that would be you and I) was the last to know. So now, our fate rests squarely in the hands of the SEC, who has had a history of putting the interests of those in power (in this case, as is usually the case, money=power) above the interests of the small investor that they are pledged to protect.
And with the implementation of Regulation SHO, we were yet again the last to know. According to Dave Patch, "The present list of companies that fall under this category is greater than 1000 and represent over 12% of all securities. Soon we will know exactly who is on this list although the regulators have already provided this confidential information to WALL STREET." The Faulking Truth began receiving phone calls and emails before the first of the year making those same claims. Once again, those in power, and those who stand to profit the most from this inside information, appear to have been tipped off in advance. Once again, we are the last to know.
I agree with several of my colleagues that the Threshold Securities List might offer some interesting investment opportunities. It might be well worth using the daily "Threshold Securities List" as yet another tool in your investing strategy. However, this does not in any way right the massive wrongs that have been committed against the American investors for years. In fact, many of the very hedge funds that profited on the down side during the naked short selling scandal will most likely reap rewards once again on the upside. Those small investors who have lost everything in the stock market will be left holding the bag. In the end, this is not a "get rich quick scheme" aimed at making back the massive losses that so many have suffered, it is a fight to make the markets fair once again, and to insure to our generation, and to generations to come, that they will have the opportunity to share in the American Dream, and to invest their hard-earned money in the stock market with the knowledge that it's not a "rigged game".
I sincerely hope that the new measures enacted by the SEC help alleviate the problems that have plagued investors for years, but their recent history suggests that they will once again sell out to the big money. Plus, all indications suggest that they intend to sweep all past corruption under the carpet yet again, and to allow those who robbed America's investors to take the money and run. That is, unless those same voices who helped to turn the tide in 2004 continue to speak out, and convince the major media, Congress, and state and federal authorities to join us. It is up to us to take back our stock markets, to finish the job that we started in 2005.
"He Said, She Said: SEC, NASD at Odds over Status of Proposal"
http://www.faulkingtruth.com/Articles/Investing101/1007.html
Here are several recent articles (a couple are linked from message board posts) detailing the enactment of Regulation SHO:
Elgindy Trial Illustrates Incompetence at the Federal Levels
http://www.faulkingtruth.com/Articles/Investing101/1014.html
"Going Long the Short List"
http://thestreet.com/pf/markets/matthewgoldstein/10201467.html
"Regulation SHO: This Could Get Interesting"
http://www.otcjournal.com/archive/listserv/20050104-1.html
http://www.thelion.com/bin/forum.cgi?msg=709764&tf;=wall_street_pit&cmd;=read
NYSE "Securities Threshold List": www.nyse.com/threshold
NASDAQ, AMEX, and OTCBB "Securities Threshold List": http://www.nasdaqtrader.com/aspx/regsho.aspx
This is the letter that was sent to NASD Members in December, detailing the implementation of Regulation SHO, and the repeal of NASD Rule 3370:
http://www.nasd.com/stellent/idcplg?IdcService=SS_GET_PAGE&ssDocName;=NASDW_012851&ssSourceNodeId;=467
Add your name to our "Stockgate activist list" at info@faulkingtruth.com. We will email you only when we have new articles or information dealing with this issue. Please link the articles everywhere you can, post them on stock message boards, and send them to the appropriate public entities. To enact positive change requires positive action.
Voice your opinion on our message board (you don't have to sign up to post), or post in our guestbook.
Investing 101 Archives:
Financial Terrorism in America (Mark Faulk, Mar 19, 2004)
Pump and Dump or Short and Distort? (Mark Faulk, Apr 18, 2004)
Response From Berliner Freiverkehr and The Berlin-Bremen Stock Exchange (The Faulking Truth, Jun 3, 2004)
The Berlin Connection? SEC and NASD to Meet With German Brokerage Firm Tomorrow (Mark Faulk, Jun 3, 2004)
Is Dateline Losing Credibility Over StockGate Story Delays? (Mark Faulk, Jun 11, 2004)
Who's Looking Out For You? SEC Critics Seeking Investigation (Mark Faulk, Jun 27, 2004)
He Said, She Said: SEC, NASD At Odds Over Status of Proposal (Mark Faulk, Aug 5, 2004)
The Berlin Connection: 250 Companies Out (And Counting) (Mark Faulk, Aug 30, 2004)
Jag Media Case Dismissed by Judge, Citing Filing Deficiencies (Dave Patch, Sep 9, 2004)
A Twelve Step Program to Clean up the OTC Stock Market (Mark Faulk, Sep 14, 2004)
Is Time Running Short in StockGate Scandal? (Mark Faulk, Oct 5, 2004)
Dateline: The Waiting is the Hardest Part (Mark Faulk, Nov 16, 2004)
Death of an Investment Class (Dave Patch, Dec 30, 2004)
Elgindy Trial Illustrates Incompetence at the Federal Levels (Dave Patch, Jan 4, 2005)
The Year of the Investor (Mark Faulk, Jan 5, 2005)
Regulation SHO’s Threshold Lists Leave More Questions than Answers (Dave Patch, Jan 11, 2005)
Feeding the Stock Market Beast (Mark Faulk, Jan 11, 2005)
Economic Corruption US Style (Joel S. Hirschhorn, Feb 27, 2005)
Stockgate Goes to Congress (Mark Faulk, Mar 10, 2005)
The Old Shell Game (Bob O'Brien, Mar 25, 2005)
FINALLY! Dateline to Air Stockgate Segment April 10th (Mark Faulk, Mar 28, 2005)
Dateline Stockgate Update: POSTPONED YET AGAIN! (Mark Faulk, Apr 6, 2005)
Time to Boycott GE, Dateline, and NBC? (Mark Faulk, Apr 6, 2005)
Pink Sheets CEO Calls for Reform in OTC Stock Market (Mark Faulk, May 2, 2005)
National Counterfeit Conspiracy Days, June 6th and 7th! (Mark Faulk, May 15, 2005)
Ninety-Four Trade Days and Counting (Dave Patch, May 25, 2005)
Stockgate: Turning up the Heat (Mark Faulk, May 31, 2005)
Stockgate: Donaldson out......Cox in (Mark Faulk, Jun 2, 2005)
SEC's Donaldson out, Cox in: One Step Forward, Two Steps Back (Mark Faulk, Jun 13, 2005)
President Bush’s Social Security Agenda - Steal your Money the Easy Way (Dave Patch, Jun 17, 2005)
Global Links Corp: The Real Story (Mark Faulk, Jun 26, 2005)
Forget SEC "Regulations".... This is Good Old-Fashioned Fraud (Mark Faulk, Jul 13, 2005)
Common Cause Joins Fight to "Stop Corporate Takeover of the SEC" (Mark Faulk, Jul 22, 2005)
Dateline Stockgate: We're on, we're off, we're on, we're off.....WE'RE ON AGAIN: July 31st!!! (Mark Faulk, Jul 25, 2005)
Dateline to Air Stockgate Segment in 2-Hour Show, Sunday, July 31st (Mark Faulk, Jul 29, 2005)
From Dateline to Overstock....The Plot Thickens (Mark Faulk, Aug 16, 2005)
Congress Sells America Short (Mark Faulk, Sep 20, 2005)
Stockgate: The Big Picture (Mark Faulk, Oct 10, 2005)
Stockgate: Rallying the Troops (Mark Faulk, Oct 16, 2005)
The $10.5 Billion REFCO Smoking Gun? (Bob O'Brien, Oct 23, 2005)
We Definitely Aren't in Kansas Anymore - Fraud Wall Street Style (Bob O'Brien, Nov 3, 2005)
Start Spreading the News: Stockgate Goes Nationwide (Mark Faulk, Nov 8, 2005)
Stockgate: "Can We Talk?" (Mark Faulk, Nov 27, 2005)
It's Money That Matters (Mark Faulk, Dec 11, 2005)
Regulation SHO; Results Leave Questions More than Answers (Dave Patch, Dec 29, 2005)
Faulking Truth Editor to Write CMKX Story (The Faulking Truth, Jan 5, 2006)
It Takes an Army (Mark Faulk, Jan 11, 2006)
The Circle of Greed: The Only Bull in this Stock Market is a Cash Cow (Mark Faulk, Jan 17, 2006)
A Silent Lynch Mob - An Open Letter From Rod Young (Rodney Young, Feb 2, 2006)
The Circle of Greed: A Voice in the Wilderness (Mark Faulk, Feb 13, 2006)
The Circle of Greed: Who Wants to be a Congressman? (Mark Faulk, Feb 26, 2006)
Freedom of the Press? (Mark Faulk, Mar 12, 2006)
The Parallel Universe of the DTCC: “Bits and bytes in book-entry form.” (Mark Faulk, Mar 24, 2006)
Finally...the Truth About Patrick Byrne (An open letter to Colin Kelly, Jr.) (Mark Faulk, Apr 19, 2006)
Faulking Truth recommends abolishing the SEC (Mark Faulk, Apr 27, 2006)
The Circle of Greed: The Cloak of Invisibility (Mark Faulk, May 25, 2006)
|
|
|