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SEC Rule Change and Paper Stock Certificates

Voodoo

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#1
I know that I mentioned this in a thread somewhere but it was buried and I think this is a bigger deal than I thought. I know there was a bigger issue and people were starting to pester brokers and the SEC with concerns about naked short selling and FTD's. I even withdrew a few company shares back in 2008. It wasn't that hard and cost me $40 per certificate, which seemed like a reasonable fee.

Well, I've started looking at this again because I have a stock that has more shorts than shares outstanding. My broker is likely making bank lending out my shares with no compensation to me and at the detriment to the company. Well looking into E'trades forms and I find this interesting. I knew they raised the price but this seems crazy.

"How do I request paper stock certificates or electronically register shares directly with the transfer agent?
Effective January 1, 2009, E*TRADE and other broker-dealers will no longer be able to fulfill paper certificate requests due to an SEC regulation change. Instead E*TRADE will default paper certificate requests to electronic registration directly with the transfer agent using the Direct Registration System (DRS) built by the Depositor Trust Clearing Corporation (DTCC) and the industry Transfer Agents."

But under the Stock Certificate Request page they list this... (wait what $500?) They are not making this straightforward. It looks like all exchange listed securities can go with the electronic system but I'm not sure what qualifies.

"Indicated number of shares for each company that you would like to receive paper certificates. Please note all requests will default to electronic registration with the transfer agent for all exchange listed securities. In the event the security is NOT eligible for electronic registration a paper certificate will be mailed to you for a fee of $500.00 for domestic companies and $250.00 for international companies. "
 

Buck

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#3
don't hold it, don't own it

it's got to be the 'greed' or debt, some of that debt is born of 'greed', etc, that keeps people putting some of their net worth at such risk

i know the risk of crossing the street...
 

Voodoo

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#4

Voodoo

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And I've seen this first hand with a small company that they seem to have picked in order to drive it out of business. Gamestop. First a chart to see the damage that has been wrought. But They may have bitten off more than they can chew this time. This could be one hell of a battle. As you can see it was over $40 / share and then hit just under $3 / share (I did pick up some registered shares under $3 in a bit of luck. But you say, well they are in a business going away and this happens all the time. Yeah but take a look at the short outstanding numbers.

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Note how they now have shorted MORE shares than are currently outstanding. AND almost 300% of the available shares as now there are some big 5% owners coming in. Also note that the company now has more cash than outstanding debt making bankruptcy far less likely.
 
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Voodoo

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#6
Shorts are Frying today...:dancing guy:dancing guy


1610552995210.png
 

solarion

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#7
Ummm...the all time low is officially 2.57 and the intraday low is far lower than that. Shorts stupid enough to not cover at those ridiculous levels after it fell from > 25 to < 2 are too shit all stupid to be employing short positions anyway.
 

Voodoo

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#8
Ummm...the all time low is officially 2.57 and the intraday low is far lower than that. Shorts stupid enough to not cover at those ridiculous levels after it fell from > 25 to < 2 are too shit all stupid to be employing short positions anyway.
That's exactly what I was trying to say back when it was below $5 forever. BUT, and this is where GIM comes in to play. These shorts play a dangerous NAKED short game. They pick a company and drive it out of business. But they get extra greedy because they don't want to EVER cover, because that means creating a TAXABLE event. By just letting the company hang around for nothing they never have to cover. BTW I got half my position as some direct registration shares for like $2.90
 
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Voodoo

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#9
Intraday Update. At one point shorts had potentially lost $1.2 Billion dollars today on this stock.

1610558801689.png
 

EO 11110

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#10
been following gme - considered picking some up when it was staring at bk

activist investor takes position - gets all kinds of media - stock pops a couple of bucks from bottom

then gme announces partnership with microsoft - which launches the thing into big move up

wondering if MS is going to use them similar to apple stores? what does MS want with it?

all of the gamers i know are poo pooing their former business model -- buying games is all done online now - no use for gme, other than to occasionally trade in old gaming systems for a few bucks

what is the plan?
 

Voodoo

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#11
been following gme - considered picking some up when it was staring at bk

activist investor takes position - gets all kinds of media - stock pops a couple of bucks from bottom

then gme announces partnership with microsoft - which launches the thing into big move up

wondering if MS is going to use them similar to apple stores? what does MS want with it?

all of the gamers i know are poo pooing their former business model -- buying games is all done online now - no use for gme, other than to occasionally trade in old gaming systems for a few bucks

what is the plan?
The long-term plan is not that important now. You'd have to ask Cohen on his. I'm planning on bailing on this move, but I'll probably hold a few shares just for tax reasons or to see if he can actually pull something off.

This is all about a Deep Value play that has an IMPOSSIBLE short position. This is all about the trapped shorts and an SEC that has refused to fix the naked shorting system.
 

Voodoo

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#12
And it's been widely known/rumored that Melvin Capital is one of the largest short positions. I think this might be a personal vendetta by Cohen as he may have been "wronged" by them in the past. And if that's the case this is going to get real interesting.

I see a lot of strong up days (the WSB crowd seems to think $100-400 is their common target). But the management will file some new shares at some price (they did a $100 million shelf registration) so whenever they feel like the time is right they will dilute a little. But at $100 a share that's only 1 million shares. Not nearly enough to save the naked shorters lives.
 
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Goldhedge

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#13
Is there a link to the OP?
 

Voodoo

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#14
Sorry I don't remember where that came from. I think it was an older thread here somewhere, circa 2010.
 

Voodoo

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#15
I can't believe how quickly and widely known this stock has become.

 

Voodoo

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#16
Anyone Join this Train.... I hope you all realize that this is part of the REVOLUTION. The commoners have figured out the game and are now taking it to these assholes... BURN BABY BURN.

:blew up::blew up::blew up::blew up::blew up::blew up::blew up::rocket::rocket::rocket:
GME Burns.jpg
 

Voodoo

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#17
Has anyone jumped on Board yet? We are getting real close to going BOOM. Melvin Capital needed a 2.75 Billion bailout yesterday. Took my first profits at EoD today.

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:dancing guy:dancing guy:dancing guy