The Illegal Naked Short Epidemic on USA Stock Exchanges
Dennis O'Neill
CEO, Board Member, Venture Capital, Blockchain, IPO, Investment Banking, Speaker
If you own a stock that you believe is under attack by illegal short. This may your only chance to track, expose and ultimately get them to cover or convict them.
There is a epidemic of illegal criminal naked shorting of stocks on USA Stock Exchanges today. The problem is that regulators are simply not equipped to stop it on a large scale. See the link below to see some of the new convictions of criminal shorts reported by the NY Times . By and large these convictions did not come from regulators policing these markets. The abusive shorts have been exposed largely by law firms doing massive amounts of research in conjunction with companies that utilized ShareIntel services (the good news).
THE SOLUTION: There is now a software-as-a-service (SAAS) called ShareIntel DRIL-DownTM that enables public companies to proactively track equity flows and identify suspicious, aberrant and/or unusual trading activity. DRIL-DownTM identifies Banks, Broker-Dealers and Clearing Firms that have clients that are likely participants to naked short selling (counterfeiting), thus enabling public company fiduciaries to take action. In addition, DRIL-DownTM tracks critical Broker-Dealer and shareholder movement behind street name enabling public company CEO/CFO’s to identify who is buyingand who is selling their stock as well as give them access to a plethora of additional information to help proactivelyidentify and attract likely new investors.
How to tell if your stock is being illegally shorted. There are many tell tale signs if your stock is under a illegal criminal short attack.
- Is your stock going down for 2-3mo.s or more with no seemingly reasonable reason?
- Do you have one or more people posting super negative, slanderous, attacking posts on the message boards?
- Have you had writers publish super negative stories on your company for no apparent reason other than to attack, slander the company using smear tactics?
- Does your stock regularly trade uneven amounts of shares"odd lots" 1,357 shares for instance. Most brokers or investors will never put in a order that isn't a even number. The odd lots are a way that the criminal shorts communicate with each other. The market markers phones are recorded by complaince so this by passes the use of phones.
- Does your stock come under selling pressure anytime that you put out a press release regardless how positive the news is?
- Do you get calls out of the blue from people asking to invest in your company? They do this to give themselves more shares to sell into your stock.
- Nasdaq sho list reports how many shares were initiated as a short on a daily basis. If you are seeing more than 20% of overall volume initiated short on a daily basis you are probably under a naked short attack. Here is the link. Just click on the day, scroll down to your ticker, the 1st set of numbers is the shares the were initiated as a short and the second set of numbers is the volume for the day. Make sure you click on the market that your stock trades on, Nasdaq listed companies are the 1st set, NYSE the 2nd set and the 3rd set ORF is the OTCBB and pinks.
https://regsho.finra.org/regsho-Index.html
If you have 2 or more of these symptom's. These are tell tale signs that your stock is under attack by criminal naked shorts.
The Cost Of Criminal Naked Shorts
- They kill the value of your company by pushing the share price down. Making any financing the company seeks will be priced at a much lower price due to the lower share price significantly diluting the company's shareholders thus making each share worth much less. Putting more pressure on the stock.
2. Damaging your brand and company by publishing stories/posts/messages that will be on the internet forever. Killing the companies name, brand and reputation. Once they can no longer naked short the stock the stories will stop as well.
- Damaging the companies reputation and credibility with its shareholders, current and potential partners, undermining current and future employees confidence in the company. a depressed stock price makes everyone question how well are you really doing.
- Damaging the reputation and credibility of the management team which will be under constant pressure from all shareholders as to why the company's stock is under so much pressure. Creating significant amounts of fear, uncertainity and doubt. Wasting significant amounts of the managements time explaining why the stock is down and creating a significant amount of stress and pressure on management. This creates a significant amount of friction/Ill will between management and shareholders.
- Significantly damages the companies credibility and reputation with possible funding sources. It is very difficult to explain why the stock is down and why there is so much negativity on the internet about the company.
- Significantly limits the company's ability to acquire other businesses because of the low value of the stock vs the real value of the company and the damaging news/messages/posts they can access on the company on the internet.
- It damages the current shareholder's willingness to buy more stock or hold the stock and the companies ability to attract new shareholders with a stock that is under attack showing lower and lower share prices over time.
The Solution.
ShareIntel is the only software solution in the market today that provides the breadth and depth of data that will allow any public company regardless if your on the pinks, OTCBB, Smallcap, Nasdaq or NYSE to track shares bought and sold and identify exactly who is buying, selling and which Broker-Dealers are participants to abusive short selling. DRIL-DownTM will provide your company with critical data to help understand exactly why your stock is going up or down. Unfortunately without this service you will have almost a zero chance of ever catching who is shorting your stock or have any data to get them to stop and cover there position.
ShareIntel's DRIL-DownTM is currently being used by law firms to prosecute criminal shorts. ShareIntel's data is used as empirical data and evidence to get these shorts convicted. Once B/D’s are alerted with data/evidence presented to their compliance departments that as public companies fiduciaries you are aware that they are likely participants to illegal and abusive shorting your of stock they are likely to cover their short positions and move on to easier targets. Here is the catch. It is very difficult, expensive and often impossible absent a subpoena to go back and capture data. In other words: DATA NOT CAPTURED IS DATA LOST. So every day you wait is data we won't capture or another free day for the criminal naked shorts to continue there attacks on your stock. So its imperative that you start ASAP. Otherwise you might as well go private because these shorts never go away. You may succeed temporarily to get the shorts to back off, but invariably they will be right back on your door step smashing your stock down again.
.The service is very inexpensive $2,500 dollars a month with a year commitment and a one time set up fee of $2,900. This will allow you to start tracking who is buying and selling everyday but to get enough data to take actionable steps against the shorts takes a few months to gather enough evidence/data to have a good case against them and demand they cover or threaten to expose them to the SEC or Litigation .
How It Works
Through a patented process Share Intel provides an unprecedented level of transparency enabling CEO’s, CFO’s and IRO’s to DRIL-DownTM and track critical Shareholder & Broker-Dealer share ownership and movement behind street name to individual names and addresses.
ShareIntel is the leader in defining a new paradigm best practices intelligence gathering model. We arm Public Company fiduciary’s with dynamic and actionable data. Our goal is to support CEO’s in all areas of their fiduciary role as it pertains to managing their company’s market capitalization. Our intelligence is based upon data which is private in nature, which makes us very unique.
We aggregate and make sense of data which is only available to the Client Issuer Company and its authorized agent (ShareIntel). As a result, we offer our client company’s a level playing field, a complete snapshot(s) of their overall shareholder base. We dynamically track Broker–Dealer & Shareholder movement and deliver updates to your PDA and desktop. We update position changes monthly and/or bi-weekly. In addition we track all activity at the Banks/Broker-Dealers at a granular level, providing daily detail, summarized weekly. Our Live Intelligence Desk is available 8am-6pm to provide amplification and assistance in interpreting market data.
o Track Critical Shareholder and Broker-Dealer Movement
o Identify & Track Potential Fails-to-Deliver often Associated with Naked Short Selling
o Identify & Track the Parties Buying and Selling "Behind Street Name" Down to Names and Addresses
o Create liquidity & maintain orderly markets by matching large sellers to buyers
o Identify new shareholders
o Monitor for Potential Illegal Stock Lending
o Target Institutional Investors
o Monitor Peers
o Attract and retain Key Anchor Investors
The most important part of this is to start tracking the criminal naked short ASAP possible. There is a plethora of additional information that you will be able to access in addition to tracking the short. We will train you how to use the data and coach you on exactly how to leverage this information on several fronts to take action, tracking the shorts, knowing who is buying/selling stock, fake offers of stock by market makers that have no stock to sell, who is buying large positions in your competitors stocks, how to proactively attract new investors and much more.
For more information go to www.shareintel.com. If you have any questions or you would like t rcieve additional information. Feel free to contact me.
Dennis O'Neill
Director of Sales and Marketing
224-622-4505