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To: afrayem onigwecher who started this subject7/8/2004 8:49:47 PM
From: StockDung
   of 977
cont:The complaint alleges that the DTC has a colossal disincentive to stop the "stock borrow" program, booking revenues from services of $425,416,000 and similarly, the NSCC deriving revenues of $293,133,000.

Further, the suit alleges that "open positions" resulting from this activity at the close of business on December 31, 2003, "approximated $3,025,467,000" due to NSCC, and $2,303,717,000 due by NSCC, and unsettled positions of $721,750,000 for securities borrowed through the NSCC's "Stock Borrow Program."

Nanopierce claims that DTCC and NSCC have joined in a "scheme" to "manipulate downward the price of the affected securities, thereby reducing the market value of the open fail to deliver positions." The suit also claims that the defendants have permitted sellers to maintain open fail to deliver positions of tens of millions of shares for periods of a year and even longer.

It quotes the National Association of Security Dealers as admitting that "concerns have been raised by members, issuers, investors and other interested parties about potentially abusive short selling activities occurring in the marketplace. In particular, naked short selling, or selling short without borrowing securities to make delivery, can result in long term failures to deliver, including aggregate failures to deliver that exceed the total float of a security. NASD believes such extended failures to deliver can have a negative effect on the market. Among other things, by not having to deliver securities, naked short sellers can take on larger short positions than would otherwise be permissible, which can facilitate manipulative activity."

Nanopierce claims that it had "relied on material misrepresentations and omissions by DTC and NSCC in trading its shares in the stock market "without knowledge of Defendants' fraud-on-the market through statements they made about the clearing and settlement services they provided." Further, it claims that the Defendants acted with "scienter" since they had a major financial financial motivation to falsely represent their services, which Nanopierce claims are also anticompetitive.

The largely unregulated DTC has become something of a defacto Czar presiding over the entire U.S. markets system, wielding more day-to-day influence and control than the SEC, the NASD and NASDAQ combined. And, as the SEC's July 8 ruling indicates, its monopoly over the electronic trading system appears even to be protected.

The Depository Trust and Clearing Corp.'s two preferred shareholders are the New York Stock Exchange and the NASD, a regulatory agency that also owns the NASDAQ (NDAQ) and the embattled American Stock Exchange! Regulators, regulate thyself?

In an era when corporate governance is the primary interest for the SEC and state regulators, the DTCC is hardly a role model. Its 21 directors represent a virtual litany of conflict:

They include Bradley Abelow, Managing Director, Goldman Sachs (GS); Jonathan E. Beyman, Chief Information Officer, Lehman Brothers (LEH); Frank J. Bisignano, Chief Administrative Officer and Senior Executive Vice President, Citigroup / Solomon Smith Barney's Corporate Investment Bank (C); Michael C. Bodson, Managing Director, Morgan Stanley (MWD); Gary Bullock, Global Head of Logistics, Infrastructure, UBS Investment Bank (UBS); Stephen P. Casper, Managing Director and Chief Operating Officer, Fischer Francis Trees & Watts, Inc.; Jill M. Considine,Chairman, President & Chief Executive Officer, The Depository Trust & Clearing Corporation (DTCC);

Also, Paul F. Costello, President, Business Services Group, Wachovia Securities (WB); John W. Cummings, Senior Vice President & Head of Global Technology & Services, Merrill Lynch & Co. (MER); Donald F. Donahue, Chief Operating Officer, The Depository Trust & Clearing Corporation (DTCC); Norman Eaker, General Partner, Edward Jones; George Hrabovsky, President, Alliance Global Investors Service; Catherine R. Kinney, President and Co-Chief Operating Officer, New York Stock Exchange; Thomas J. McCrossan, Executive Vice President, State Street Corporation (STT); Eileen K. Murray, Managing Director, Credit Suisse First Boston (CSR); James P. Palermo, Vice Chairman, Mellon Financial Corporation (MEL); Thomas J. Perna, Senior Executive Vice President, Financial Companies Services Sector of The Bank of New York (BNY); Ronald Purpora, Chief Executive Officer, Garban LLC; Douglas Shulman, President, Regulatory Services and Operations, NASD; and Thompson M. Swayne, Executive Vice President, JPMorgan Chase (JPM).

In their comments to the SEC regarding Regulation SHO in January, the 50 state regulators, through their association, the North American Association of Securities Administrators (NASAA) issued what many consider to be a strong warning that if the DTC is not dealt with in the final regulations, state regulators such as New York State Attorney General Eliot Spitzer may step to the plate.

In what many considered to have been explosive comments, Ralph Lambiase, NASAA president and Director of the Connecticut Division of Securities, warned "NASAA urges the Commission to reconsider its stance regarding the role of the Depository Trust and Clearing Corporation (the DTC). As a threshold matter, NASAA believes that the Commission should explicitly prohibit the DTC from lending more shares of a security than it actually holds. The ability of the overall proposed rule would be severely impared unless the Commission undertakes to implement such a prohibition."

As the Nanopierce lawsuit reveals, those were indeed strong words, meddling as it did, in a substantial revenues base for the DTCC.

Recently, leading market makers and brokers named in various lawsuits and other actions, including FleetBoston (NYSE: FBF), Goldman, Sachs & Co. (GS), H. Myerson & Co., Inc. (NASDAQ: MHMY), Olde / H&R Block (HRB), Charles Schwab (SCH), Toronto-Dominion's (TD), TD Waterhouse Group and vFinance, Inc. (VFIN). A.G. Edwards, Inc. (AGE), Ameritrade Holding Corp. (AMTD), Deutsche Bank AG (DB), and ETrade Group, Inc. (ET), were forced to comply with new short-selling market regulations imposed by the NASD after the SEC had "sat on" the NASD request to plug material loopholes for almost 2-1/2 years.

"The new rules expand the scope of the affirmative determination requirements to include orders received from broker/dealers that are not members of NASD ("non-member broker/dealers").

The new rule is on the web at

The rule itself, while welcomed by small companies and their shareholders in the U.S., nevertheless raised an outcry because the NASD's request to put it into effect had set on a shelf at the SEC since 2001.

The scandal has embroiled hundreds of companies and dozens of brokers and marketmakers, in a web of internaitional intrigue, manipulative short-selling and cross-border acctions and denials.

Comments on Regulation SHO ended January 5, and may be viewed at .

Some 122 companies, including 13 brokers, such as FleetBoston (NYSE: FBF), Goldman, Sachs & Co. (GS), H. Myerson & Co., Inc. (NASDAQ: MHMY), Olde / H&R Block (HRB), Charles Schwab (SCH), Toronto-Dominion's (TD), TD Waterhouse Group and vFinance, Inc. (VFIN). A.G. Edwards, Inc. (AGE), Ameritrade Holding Corp. (AMTD), Deutsche Bank AG (DB), and ETrade Group, Inc. (ET), have been embroiled for over a year in a raging controversy

The remaining 109 companies among the 122 named to date have issued press releases or been named in the media as having been victimized, or as taking various actions, either alone or in concert with other companies, to oppose manipulative trading in the form of illegal naked short selling. The actions have ranged from lawsuits to withdrawals and threatened withdrawals from the electronic trading system managed by the Depository Trust & Clearing Corp., to withdrawals from toxic financings, to the issuance of dividends or name changes designed to squeeze manipulators, to joining associations or networks or to contacting regulatory authorities to provide documentation of abuses or otherwise complain.

The complete list of those 108 companies include Advanced Viral Research Corp. (ADVR), AdZone Research, Inc. (ADZR), Amazon Natural Treasures (OTC: ANTD), America's Senior Financial Services (OTCBB: AMSE), American Ammunition, Inc. (AAMI), AngelCiti Entertainment (OTCBB: AGLC), ATSI Communications, Inc. (ATSC), Federal Agricultural Mortgage / Farmer Mac (AGM) Allied Capital (ALD), American Motorcycle (OTC: AMCYV), American International Industries (AMIN), Ameri-Dream (OTC: AMDR), Adirondack Pure Springs Mt. Water Co. (OTCBB: APSW), ATSI Communications,Inc. (ATSC) Bluebook International (BBIC), Blue Industries (OTCBB: BLIIV), Bentley Communications (OTCBB: BTLY), BIFS Technologies Corporation (BIFT), Biocurex (BOCX). Broadleaf Capital Partners, Inc. (BDLF), Chattem, Inc. (CHTT), Critical Home Care (CCLH), Composite Holdings (COHIA), CyberDigital, Inc. (CYBD). Diamond International Group (OTCBB: DMND), Dobson Communications Corp. (DCEL), Eagle Tech Communications (EATC), Edgetech Services (EDGH);

Also, Endovasc Ltd. (EVSC), Enviro-Energy Corporation (ENGY), Environmental Products & Technologies (OTC: EPTC), Environmental Solutions Worldwide, Inc. (ESWW), EPIXTAR Corp. (EPXR), eResearchTechnologies, Inc. (ERES), Flight Safety Technologies (OTCBB: FLST), Freddie Mac (FRE), FreeStar Technologies (OTCBB: FSRCE), Front Porch Digital,

Inc. (FPDI), Geotec Thermal Generators, Inc. (GETC), Genesis Intermedia (GENI), GeneMax Corp. (GMXX), Global Explorations Inc (GXXL), Global Path (OTCBB: GBPI), GloTech Industries, Inc. (OTCBB: GTHI), Green Dolphin Systems (OTCBB: GLDS), Group Management (OTCBB: GPMT), Hop-On (HPON), H-Quotient, Inc., (HQNT), Hyperdynamics Corp. (HYPD), International Biochem (IBCL), Intergold Corp. (OTCBB: IGCO), International Broadcasting Corporation (IBCS), InternetStudios, Inc. (ISTO), ITIS Holdings (ITHH), Investco Corp. (IVCO), Lair Holdings (LAIR), Lifeline BioTechnologies Inc. (LBTT), Life Energy & Technology (LETH), MBIA (MBI);

Also, MegaMania Interactive (MNIA), MetaSource Group, Inc. (MTSR), (MIDS), Make Your Move (OTCBB: MKMV), Medinah Minerals (MDMN), MSM Jewelry Corp. (OTC: MSMC), Nanopierce Technologies, Inc. (NPCT), Nutra Pharmaceutical (NPHC), Nutek (OTCBB: NUTK), Navigator Ventures (NVGV), Orbit E-Commerce, Inc. (OECI), Pitts & Spitts (OTC: PSPP), Sales OnLine Direct (OTCBB: PAID), Pacel Corp. (OTCBB: PACC), PayStar Corporation (PYST),Petrogen Corp. (PTGC), Pinnacle Business Management (OTC: PCBM), Premier Development & Investment, Inc. (PDVN),, Inc. (PRIM), Phlo Corporation (PHLC), Resourcing Solutions (RESG), Reed Holdings (OTC: RDHC), Rocky Mountain Energy Corp. (OTCBB: RMECE), RTIN Holdings (OTCBB: RTNHE), Saflink Corp. (SFLK), Safe Travel Care (OTCBB: SFTVV), Sedona Corp. (SDNA);

Also, Sionix Corp. (SINX), Sonoran Energy (SNRN), Starmax Technologies (SMXIF), Storage Suites America (SSUA), Suncomm Technologies (OTC: STEH), Sports Resorts International (SPRI), Technology Logistics (TLOS), Swiss Medica, Inc. (SWME), Ten Stix, Inc. (TNTI), Tidelands Oil (TIDE), Titan Construction (TTCS), Trezac Corp. (OTCBB: TRZAV), Universal Express, Inc. (USXP), Valesc Holdings, Inc. (OTCBB: VLSHV), Vega Atlantic (OTCBB: VGAC), Viragen (VRA), Viragen International (VGNI), Vista Continental Corporation, (VICC), Viva International (VIVI), Vtex Energy (OTCBB: VXENE) and Wizzard Software (WIZD), (WTSW) and Y3K Secure Enterprise Software, Inc. (OTCBB: YTHK).

Earlier in 2003, the SEC fined Rhino Advisors, Inc., $1 million for its representation of Amro International in the financing and manipulation of Sedona Corp. Amro, also known as AMRO, was registered in Panama, a secretive offshore haven, but was not named in the SEC settlement. Another 60 public companies may have been manipulated by the fined Rhino Advisors and its indicted principals, or its funding apparatus, Amro.

These include:

All American Food Group Inc (AAFGQ), Amanda Co Inc (AMNA), Antra Holdings (RECD), Aquis Communications Group Inc (OTCBB: AQUIS), Avanir Pharmaceuticals (AVN), Bionutrics Inc (BNRX), Brilliant Digital Entertainment Inc (AMEX: BDE), Bravo! Foods International Corp. (OTCBB: BRVOE), Butler National Corp (BUTL),Calypte Biomedical Corp (CYPT), Chemtrak Inc/DE (CMTR), Clicknsettle Com Inc (CLIK), Corporate Vision Inc (OTC: CVIA), Crown Laboratories Inc/DE (CLWB), Dental Medical Diagnostic Systems Inc (DMDS), Detour Media Group Inc (DTRM),

Also, Digital Privacy Inc/DE (OTC: DGPV), Senior Services Inc (DISS), International Inc (DYNX), Endovasc Ltd Inc (EVSC), Esynch Corp/CA (OTCBB: ESYN), Focus Enhancements Inc (NASDAQ: FSCE), Frederick Brewing Co (FRBW), Greystone Digital Technology Inc (GSTN), Havana Republic Inc/FL (HVNR), Henley Healthcare Inc (HENL), Hollywood Media Corp (HOLL), Ibiz Technology Corp (IBZT), Diagnostic Systems Inc/FL (IMDS), Imaging Technologies (OTCBB: IMTO), Integrated Surgical Systems Inc (RDOC),

Also, Interferon Sciences Inc (IFSC), Interiors Inc (OTC: ITRNA), Laminaire Corp (THMZ), Medisys Technologies Inc (SCEP), Milestone Scientific Inc/NJ (MS), Nevada Manhattan Group Inc (NVMH), Innovations Inc (OTCBB: NTGE),Systems Group (OSYM), Pacific Systems Control Technology Inc (PFSY), Professional Transportation Group Ltd Inc (TRUC), Rnethealth Inc (RNTT),

Also, Sand Technology Inc (SNDT), Sedona Corp (SDNA), Silverado Foods Inc (SVFO), Stockgroup Information Systems (SWEB) Surgilight Inc (SRGL), Tasty Fries Inc (TFRY), Tech Laboratories Inc (TCHL), Teltran International Group Ltd (TLTG), Titan Motorcycle Co of America Inc (TMOTQ), Trans Energy Inc (TSRG), Motorcycle Co (UMCC), Universal Communication Systems Inc (UCSY), Medical Systems Inc (UMSI), Vianet Technologies Inc (VNTK),Viragen Inc (VRA), Webcatalyst Inc (WBCL), Worldwide Wireless Networks Inc (WWWNQ), and ZAP (ZAPZ).

Universal Express terminated its coverage in Investrend Research's unique and pioneering professional analyst program, which facilitates independent analysts to provide financial coverage for shareholders and investors in companies that otherwise would have little or no analyst following. Just prior to the termination, Investrend Research analyst Jeff Howlett had issued a "Speculative" rating on the company, a downgrade from the previous "Speculative Buy."

The Investrend Research program is the largest in the world and includes a number of safeguards to reduce or eliminate conflict. These systems, including media coverage and endorsements, may be accessed at

Investrend Research subscribes to the "Standards for Independent Research Providers" at, and adheres to the Guidelines for independent providers jointly endorsed by the National Investor Relations Institute ( and the Association for Investment Management and Research (

The Dow Jones Newswires has stated that independent research has been growing in credibility over the past 18 months, specifically citing Investrend Research, and the New York Times has reported a survey by Charles Schwab & Co. reveals an astonishing 78 percent of active stockholders now "value research from independent firms over analysis by Wall Street firms with financial ties to the companies they are rating." A survey at Investopedia reveals that 74.7% of investors say that "legitimate fee-based research is objective and useful," and 70.9% say that a company that enrolls for "legitimate fee-based research is making a positive statement about its investment potential."

Enrollment fees for Institutional coverage were $23,400 per annum, and the fees were paid by the company for two years. There are never any fees associated with FinancialWire, which independently covers a wide range of corporate news, including but not limited to those that are or have been enrolled in Investrend's platforms.

Complete information about any company enrolled in an Investrend shareholder empowerment platform, including those of its affiliates and independent analysts and webcasters, including disclosures and disclaimers, is available at the company's InvestorPower page at , and on each report and press release, and investors are advised to read those disclosures carefully before trading in the equities of any enrolled company.

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(C) 2004, Inc. All rights reserved.

© 1997-2004, Inc.

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To: afrayem onigwecher who started this subject7/9/2004 1:29:49 PM
From: StockDung
   of 977

CONTACTS: Thursday, July 8, 2004
Nancy Condon 202-728-8304
Herb Perone 202-728-8464


NASD Investigation into Short Selling Activity for Hedge Funds Continues

Washington, D.C.—An NASD Hearing Panel has barred Scott W. Ryan of Bryn Mawr, PA, and has expelled Ryan & Company, LP (RYCO) of West Conshohoken, PA, for failure to cooperate in an ongoing investigation into whether Ryan and the firm engaged in a widespread scheme of impermissible short selling activity on behalf of three hedge fund clients.

As part of the investigation, NASD requested that Ryan and RYCO produce certain documents and information pertaining to short-selling and options transactions under review. NASD also requested copies of Ryan's and RYCO's tax returns and RYCO's certified financial statements for fiscal years 1999 through 2003. Ryan and RYCO refused to provide all but a small portion of the requested documents and information, claiming NASD's requests were burdensome and irrelevant.

The Hearing Panel found that Ryan's and RYCO's objections were without merit and were not raised "in a good faith attempt to resolve their concerns in a timely and complete manner."

Instead, the Hearing Panel said, Ryan and RYCO "made no effort to comply with portions of the document requests… assumed a hostile stand, challenging the (NASD) staff's motives… (and) obdurately stalled the staff's efforts to complete the investigation by repeatedly raising meritless objections."

The Hearing Panel's decision will become final on Aug. 4, 2004, unless it is appealed to NASD's National Adjudicatory Council (NAC), or called for review by the NAC. If the decision is appealed or called for review, the sanctions may be increased, decreased, modified or reversed.

A Hearing Panel consists of an NASD Hearing Officer, along with two members of the securities industry. The NAC is a 14-person committee composed of seven industry and seven non-industry members that decides appeals from disciplinary, membership and exemption decisions; rules on statutory disqualification applications; and advises on other policy matters.

NASD's investigation into the suspected short selling scheme by Ryan and RYCO is continuing.

Investors can obtain more information and the disciplinary record of any NASD-registered broker or brokerage firm by calling NASD's BrokerCheck. NASD makes available BrokerCheck at no charge to the public. In 2003, members of the public used this service to conduct more than 2.9 million searches for existing brokers or firms and requested almost 180,000 reports in cases where disclosable information existed on a broker or firm. Investors can link directly to the program by going online to Investors can also continue to access this service by calling 1-800-289-9999.

NASD is the leading private-sector provider of financial regulatory services, dedicated to bringing integrity to the markets and confidence to investors through effective and efficient regulation and complementary compliance and technology-based services. NASD touches virtually every aspect of the securities business — from registering and educating all industry participants, to examining securities firms, enforcing both NASD rules and the federal securities laws, and administering the largest dispute resolution forum for investors and registered firms. For more information, please visit our Web Site at

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To: afrayem onigwecher who started this subject7/9/2004 7:22:47 PM
From: StockDung
   of 977
Universal Communication Systems, Inc. and Chairman Michael J. Zwebner File a Class Action Lawsuit for $300 Million Against Lycos Inc., Terra Lycos Inc., d/b/a The Lycos Network
Friday July 9, 1:36 pm ET
MIAMI FL--(MARKET WIRE)--Jul 9, 2004 -- Universal Communication Systems Inc. (Other OTC:UCSY.PK - News) company chairman Michael J. Zwebner today announced that the company and himself individually have filed a Class Action Lawsuit against Lycos Inc., Terra Lycos Inc., d/b/a The Lycos Network.

The nature of the class action case alleges Consumer Fraud, CyberStalking and Dilution of the company's UCSY trademark. The plaintiffs are seeking $300 million in compensatory damages.

The case (#04-21618) was filed on July 2nd, 2004, in the United States District Court for the Southern District of Florida.
About Universal Communication Systems, Inc.
For further information, visit our web address:

About AirWater Corporation
For further information, visit our web address:

About Millennium Electric T.O.U. Limited
Visit our web address:

About Solar Style Inc
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Safe Harbor Statement

Caution Concerning Forward-Looking Statements by Universal Communication Systems, Inc.

This document includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and factors affecting the integration of the businesses of Universal Communication Systems, Inc. More detailed information about these factors may be found in filings by Universal Communication Systems, Inc. with the Securities and Exchange Commission, including their most recent annual reports on Form 10-KSB and quarterly reports on Form 10-QSB. Universal Communication Systems, Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter their forward-looking statements, whether as a result of new information, future events, or otherwise.

Universal Communication Systems, Inc., Miami Beach
Rolando Sablon
(305) 672-6344
Company web address:
For further information email us at:

Source: Universal Communication Systems, Inc.

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To: peter michaelson who wrote (879)7/12/2004 9:30:52 PM
From: StockDung
   of 977
Anything new out there on GMXX?

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To: StockDung who wrote (893)7/13/2004 12:36:56 AM
From: peter michaelson
   of 977
I'm not aware of anything, other than the LXRS connection.

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To: afrayem onigwecher who started this subject7/14/2004 1:04:38 PM
From: StockDung
   of 977

July 14, 2004

Not long ago there was a television program called "To Tell the Truth." This was in the days after the quiz show scandals of the 1950s and before Reality TV and million dollar prizes reared their monotonous head. The premise of "To Tell the Truth" was rather simple. There were three contestants, all claiming to be the same person. As the show began, each of the contestants would stare into the camera and, with utmost sincerity, say "I am Alan Shepard, astronaut," or something of that sort. A panel of celebrities would ask the contestants a series of questions and then guess which contestant was telling the truth.

Sometimes it was tough. Sometimes the phonies seemed more authentic than the person they were pretending to be.

Sometimes it was impossible to tell who was telling the truth.

This old quiz show came to mind last week when we were reading once again about the laundry list of obscure micro-cap companies that are claiming they have been victimized by naked short selling. Short selling occurs when someone borrows shares and sells them hoping to buy them back later at a lower price. In theory, shares may not be sold short unless the brokerage firm knows it can borrow sufficient stock to cover that short position. Naked shorting occurs when no such affirmative determination has been made.

There seems to be no dispute that the practice of short selling has been much abused, and that naked shorting is one tool that has been improperly utilized. The Securities and Exchange Commission and NASD each have acknowledged the need to tighten control of short sales and crack down on these naked transactions. Regulation SHO, enacted last month by the SEC, is one attempt to address that concern - though hardly a panacea. See Regulation SHO - So Far Just So, So.

But just how widespread is this practice, and how many tiny, struggling firms have become its targets.

In other words, which of the complaining companies are telling the truth?

The answer, unfortunately, remains elusive, which is precisely why the naked short selling claims have become a convenient rationale for dozens of failing companies. Regulatory shortcomings have allowed short selling sharks to ply their trade without sufficient accountability. But just how many sharks swim in these waters?

It is impossible to tell since the extent of naked short selling is a matter of conjecture. Companies point to high trading volume and depressed share prices and claim that it is the work of short sellers. They blame brokers and market makers and clearing agencies like the Depository Trust Company. Investors, eager to understand why their holdings continue to plummet, are ready to accept this explanation because, after all, it sounds perfectly plausible.

And sometimes it is - but who is telling the truth?

Sure, naked short sales might account for deeply depressed stock prices - sometimes. There are, however other logical explanations which would just as easily explain these trading phenomena.

The first is also the most obvious: some of these companies have no meaningful value. If a company has few assets, no revenues, no substantial operations, and little realistic expectation of success, it should come as no surprise that its stock trades at pennies, or even a fraction of a cent.

High volume accompanying such meager stock prices is hardly an indication that Wall Street has discovered a hidden gem. Nor is it necessarily a sign that the naked shorters are loose. Think logically. If a stock is already trading at pennies, does it make sense to sell short? Just how many shares would the professional short seller have to sell for that exercise to be worthwhile?

And if the short seller is a pro, wouldn't he be savvy enough to find a more highly priced stock, where the potential spread and profit is significantly better?

Which brings us to a second, more logical explanation for the activity attributed to the short sellers: someone is dumping shares. Is it possible that a bump in trading volume signifies someone selling stock - rather than shorting shares? And are there circumstances where companies might want to avoid acknowledging that shares are being unloaded? You bet there are.

Some companies might be reluctant to admit they placed shares in the hands of the sellers who are dumping them on the marketplace. How might stock find its way into the hands of those sellers? There are a variety of ways, as the following indicates:

Some shares may have been registered on Forms S-8 and then issued to consultants, employees and attorneys who resell them immediately.

Other stock might have been sold to offshore investors under Regulation S, which provides an exemption from registration for shares issued to certain non-U.S. residents. Those offshore shareholders can then resell the shares overseas, immediately.

Shareholders who have held stock for at least one year can sell their holdings, without registration, under the exemptions provided by Rule 144.

Financiers who provide "equity-based" financing for small companies generally receive large allotments of registered stock in consideration for their investment. These investors may sell those shares short in anticipation of their registration, or simply wait until they have been registered and then liquidate their position. Either way, they would be trading in substantial volume.

Then there are PIPES, the popular acronym for private investments in public entities. These private investors receive large numbers of shares in return for providing funding to companies who are desperate for funding. If the PIPE investors are U.S.-based, the shares may be registered. If they are overseas, their shares could qualify for the Reg. S trading exemption. Either way, the investors would be in a position to introduce a large quantity of stock to the public float.

Companies who have been diluting their public shareholders by issuing stock to consultants or insiders, or on favorable terms to financing entities, may be loathe to admit that they are the source of a sudden spurt in volume. In that case, naked short sellers make for a convenient scapegoat.

The problem for investors, and ultimately for regulators, is to separate those companies that have truly been victimized by naked short selling, from those that have not. Ultimately, the public will have to determine who are the pretenders, and who is telling the truth.

©2004 Stock All rights reserved.


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To: afrayem onigwecher who started this subject7/15/2004 4:53:19 PM
From: StockDung
   of 977

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To: afrayem onigwecher who started this subject7/21/2004 6:12:29 PM
From: StockDung
   of 977
Subj: Poised for immense short term gains, you won't want to miss this one aka Oralla's reblade superinsistently whangdoodle untruthfulnesses Fawzia's
Date: 7/21/2004 4:08:47 PM Eastern Daylight Time
Sent from the Internet (Details)


July 20-23, 2004: EXPECT A BIG MOVE
TURN $2,000 INTO $20,000 IN A WEEK!


Last week GRXI announced a major partner doing about 1 million a week. Bigger and better partners are expected this week

GTREX, Inc. (OTC Ticker: GRXI)
5-Day Target: $.67
10-Day Target: $1.65
3-Month Target: $15.00

Gtrex News is set for this week.

GRXI (is a provider of an innovative Internet-based service for the distribution of travel reservations for the $4 trillion international travel and tourism industry. The Company’s service offering will provide a flexible, low-cost, and simplified solution for the distribution of travel services, offering travel suppliers cost savings of up to 75% compared to current and outdated distribution systems. With system launch slated for mid-2004, GTREX intends to rapidly establish itself as a superior and cost-effective alternative and supplement to existing travel distribution channels utilizing an archaic, 30-year old global distribution system (GDS) infrastructure.

GTREX will capture tens of 100 of millions in
revenue over the next 12 months.

Remember the gains from our recent Strong Buy recommendations...
CWTD in February at 90 cents before it went to $8.50, an increase of 800 PERCENT!! In March MAMA at 3.95 shortly before hitting a high of $13.30 over 400 PERCENT!!! Now we have a much BETTER situation.

GTREX, Inc. is an extremely undervalued issue relative to other players within the online travel distribution space. As evidenced by the recent IPO of, the planned IPO of Worldspan Technologies, and the private market acquisitions of, Expedia, and Hotwire, the investment community has begun to take notice of the tremendous upside potential which online travel distribution represents. A comparative grouping of public companies currently trades at a price to revenue multiple of 5.2x and at a price to earnings multiple of 107x; by contrast GTREX currently trades at 2.6x revenues and at 11x earnings for our conservative financial projections for FY 2007 (the first year in which we expect the Company to exceed 0.5% of aggregate travel bookings). As the Company rolls out its GTREX system, and begins to attract increased attention from both travel suppliers and end-user distributors, we feel that this valuation will develop inline with leading players in online travel.

GTREX, Inc. is engaged in the development, marketing and delivery of Internet based services for the direct distribution of travel reservations worldwide. This premiere service is aimed at lowering the costs for suppliers and distributors and is more flexible and easier to use than existing systems. Travel suppliers could save up to 75% off the cost of current distribution systems. GTREX will provide integrated and seamless web-based linkage from the supplier’s reservation systems direct to the systems of their selected buyers and serve as a reservation service between them, obviating the need and cost of Global Distribution Systems (GDS).

Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as: "projects", "foresee", "expects", "estimates," "believes," "understands" "will", "anticipates," or that by statements indicating certain actions "may," "could," or "might" occur. All information provided within this email pertaining to investing, stocks,securities must be understood as information provided and not investment advice. Emerging Equity Alert advises all readers and subscribers to seek advice from a registered professional securities representative before deciding to trade in stocks featured within this email. None of the material within this report shall be construed as any kind of investment advice. I was paid 20,000 dollars.

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To: afrayem onigwecher who started this subject7/21/2004 7:28:36 PM
From: StockDung
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Form: S-1/A Filing Date: 7/16/2004

Capece Litigation. In April 2004, Louis R. Capece, Jr. filed a claim against us and numerous other defendants in the federal district court for the Southern District of Florida, alleging negligent and fraudulent acts in connection with a "naked short sale" of shares of Cybercare, Inc. The plaintiff served us with a complaint on May 17, 2004, and is seeking damages in excess of $50 million. We consider this complaint to be without merit and intend to respond accordingly. We are required to answer the complaint or otherwise plead by July 21, 2004.


U.S. Securities and Exchange Commission
Litigation Release No. 18786 / July 20, 2004
Securities and Exchange Commission v. Michael Morrell, et al., Case No. 04-80664 (S.D.Fla., filed July 16, 2004)
The Securities and Exchange Commission (Commission) announced that on July 16, it filed a complaint alleging securities fraud against two former officers of CyberCare, Inc. The SEC's complaint alleges that from at least December 1999 to May 2000, CyberCare, through Michael Morrell, its chief executive officer (CEO), and John Haines, one of its senior vice-presidents and the president of its technology division, issued false press releases and made fraudulent presentations to the public regarding orders or agreements for the sale of the Company's Electronic HouseCall System that were non-existent or grossly exaggerated. In addition, the press releases made baseless projections about future orders with entities that lacked the financial wherewithal to consummate the deals.

The complaint also alleges that Morrell and Haines reviewed and signed a Form 10-KSB that CyberCare filed with the Commission in April 2000 that they knew contained some of the same false information included in the press releases.

Finally, the complaint names as a defendant Paul Bornstein, a former registered representative of Connecticut Capital Markets LLC. According to the complaint, Bornstein created a Research Report on CyberCare in January 2000 that placed a Strong Buy recommendation on CyberCare's stock and a 12-month price target of $52 per share on CyberCare's stock (which was quoted on the NASDAQ at $11 per share at the time). The complaint alleges, however, that the research report failed to disclose that at least part of Bornstein's optimism about CyberCare resulted from his simultaneous employment by CyberCare's public relation's firm. CyberCare had hired the public relations firm in October 1999, and paid the public relations firm a monthly fee of $4,000, plus 24,000 shares of CyberCare stock. The public relations firm, in turn, paid Bornstein a monthly salary of approximately $7,500.

Based on this alleged misconduct, the complaint charges Morrell and Haines with violating Section 17(a) of the Securities Act of 1933 (Securities Act) and Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 10b-5 thereunder and, as control persons pursuant to Section 20(a) of the Exchange Act, for CyberCare's violations of Sections 10(b) and 13(a) of the Exchange Act, and Rules 10b-5, 12b-20, and 13a-1 thereunder. The complaint also charges Bornstein with violations of Sections 17(a) and 17(b) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. The complaint seeks permanent injunctions, civil money penalties, and disgorgement plus prejudgment interest against all defendants, and officer and director bars against Morrell and Haines.

Home Previous Page Modified: 07/20/2004

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To: afrayem onigwecher who started this subject7/23/2004 10:49:08 AM
From: StockDung
   of 977
Co-Editor of Jack Anderson Column Files Suit Against Internet Free Speech Advocate

July 23, 2004

Douglas Cohn, CEO of HQuotient Software and Co-Editor of famed investigative journalist Jack Anderson's Washington Merry Go Round syndicated column has filed a SLAPP suit against Max Jones, an internet critic of his company.

(PRWEB) Lefty's Bar and, a private internet community of penny stock market reform advocates, announced today that is sponsering a legal defense fund site for Texas native Max "jigfish" Jones, an internet message board critic of Vienna, VA based HQuotient Software. HQuotient, a "penny stock" trading on the Pink Sheets, offers various medical software products and services. Jones has been sued by Douglas Cohn, CEO of HQuotient for posting allegedly defamatory comments about the company on the Internet message board site Raging Bull. "Jigfish" is the internet alias under which Jones posted his comments.

The defense fund site is on the Web at:

All donations to the fund will be deposited to a trust account maintained by Jones' Virginia counsel, and will be used only for the direct expenses of his defense.

In the suit in the US District Court for Eastern District of Virginia, Alexandria Division, case #04-CV-468, Cohn alleges that Jones is behind a sinister plot to sell his company's stock short and profit from a decline in its share price. Since filing the suit the penny stock-which trades on the pink sheets under the symbol HQNT-has lost 75% of its value. Jones denies any involvement in HQNT trading or short selling, and has not been a shareholder of HQNT for several years.

Corporate suits against critics are often termed SLAPP suits (Strategic Lawsuits Against Public Participation).In contrast to most litigation, SLAPP suits are brought, not to resolve a problem, but to remove a controversy from the public arena-where the company may be loosing the battle of opinion-to the judicial arena where the "chill" and expense of defense may enable the company to use its financial resources to silence its critics.

The suit against Jones is doubly ironic in that Jack Anderson, famed investigative journalist and free speech advocate, served until recently on the HQNT Board of Directors and shares authorship of his Washington Merry-Go-Round syndicated column with HQNT CEO Cohn. Anderson will always be remembered for his dogged pursuit of the truth and his tireless defense of free speech rights. Anderson's writings have earned him a Pulitzer prize, and he has received numerous awards and citations for his defense of the First Amendment.

"Jack Anderson has always been a hero of mine," said LB&G spokesperson Thomas "Lefty" Malone. "but he seems to have slipped a cog or two lately. Why on earth would Jack condone suing a person for asking questions about the management and public claims of a public company? Since he was on the Board of Directors of the Company and closely allied with Cohn he had to have known of this action."

"Anderson seems to have had problems with his famed sense of smell in the recent past," continued Malone. "He wrote a undocumented column devoted to the psuedo issue of "naked shorting" in which he claimed that this practice was funding terrorism. Neither he not Cohn disclosed in the column that they were principals in a company claiming to have been a victim of this practice. Now he is condoning this abuse of free speech by his silence."

HQNT recently announced the resignation of Anderson from the Board of Directors of the company. According to a company statement, Mr. Anderson resigned because of serious health problems.

"In our opinion," continued Malone, "this suit is nothing but a desperate attempt to silence critics of what looks to be a failing business., an internet watchdog publication, accused the company of accounting irregularities last year. The company announced the resignation of its auditor two weeks before its annual audited financial statements were due, and has since missed deadline after deadline for filing audited statements with the Securities and Exchange Commission. Because of this delay the company has been delisted from the NASDAQ OTC-BB market and now trades on the pink sheets. Max did nothing but ask legitimate questions. We think Cohn targeted him because he is 70 years old, has heart problems, and has no resources for his legal defense."

Other HQNT woes include losing a civil fraud suit filed by the Ohio Hospital Association, who alleged HQNT misrepresented the capabilities of their software products and their corporate capabilities. Although HQNT is appealing the case, they were required to post a bond of over $500,000 to guarantee payment of the judgement should their appeal of the original default judgement be unsuccessful. HQuotient is also defending itself in a $1.9 million dollar lawsuit that alleges that HQNT committed stock fraud. Detailed information about this suit and other HQNT financial issues are available at the Our Street website, Our Street has no affiliation with Lefty's Bar and

"SLAPP suits are the last resort of a scam in most cases," said Malone. "When company officials cannot refute critics, they try to silence them through abusive use of the court system."

"Max is standing up to this abuse and fighting it," continued Malone. "but he needs your financial assistance. It's that simple. If you believe in free speech, then go the Max Jones Legal Defense site and donate."

"Maybe," said Malone, "Anderson will come to his senses and send in a pledge."

The Defense Fund is on the Web at

# # #

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