MY OPINION RE: HALT
This could be very good or very bad. I will list both possibilities all IN MY OPINION and everyone can judge where they fall.
Possibly good:
It is very possible that the UCAD dividends have tripped up a closer investigation into what is going on with the naked shorting. Perhaps the SEC is looking into UCAD's audited financials to make a final determination that everything is clean before either pursuing possible crooks or allowing the stock to continue trading with possible future buy-ins anticipated. Roger Glenn presumably is on top of this and I'm glad we have serious professional expertise to assist in this process. I found the following language VERY curious on the SEC release:
"Further, brokers and dealers should be alert to the fact that, pursuant to Rule 15c2-11 under the Exchange Act, at the termination of the trading suspension, no quotation may be entered unless and until they have strictly complied with all of the provisions of the rule. If any broker or dealer has any questions as to whether or not he has complied with the rule, he should not enter any quotation but immediately contact the staff of the Securities and Exchange Commission in Washington, D.C. If any broker or dealer is uncertain as to what is required by Rule 15c2-11, he should refrain from entering quotations relating to the securities of U.S. Canadian Minerals until such time as he has familiarized himself with the rule and is certain that all of its provisions have been met. If any broker or dealer enters any quotation for the stock of U.S. Canadian Minerals that is in violation of the rule, the Commission will consider the need for prompt enforcement action."
Very strange to me. Almost seemed like a pretty severe warning to brokers and dealers. Also, from a source, apparently Ameritrade knew about this halt yesterday. Which is odd. If a broker were notified ahead of time, my best guess is because there are broker issues. I highly doubt a broker would be notified ahead of time because of fraud issues. But who knows. Just found it strange. Anyway, this could all very well have been a result of either a) the dividends, b) an impending merger/acquisition, c) an honest look into the financials simply based on the price move from $4 to (postsplit) $17. These are all POSSBILITIES none of which can be ruled out.
Possibly bad:
I sure hope USCA's financials are unimpeachable. Because it looks like the SEC is going to comb things thoroughly. I am very surprised at a halt in USCA and not CMKX. I don't know what to make of that. The bad scenario is that the SEC has some accounting issues and possible fraud issues with the way UCAD has handled itself. I guess the only thing to do is wait and see. Whereas the above quote from the SEC regarding the brokers/dealers is potentially good, the following quote concerns me:
"The Commission temporarily suspended trading in the securities of U.S. Canadian Minerals because of questions that have been raised about the accuracy of publicly disseminated information concerning, among other things, U.S. Canadian Minerals’ financing and mining activities and the value of U.S. Canadian Minerals’ purported assets."
As I said, I hope their financials are truly flawless, because if not, this could be quite bad. Let's hope so. Glenn is a former Deloitte man and intimately familiar with what is and isn't appropriate accounting. Let's hope that pays off for us.
Possibly ugly:
A trading halt with the SEC looking into financials is NEVER a good thing, and I don't care WHAT spin anyone wants to put on it. The hard reality is this is just not a good thing even if it turns out to be nothing but a chance for the SEC to review and sign off on USCA financials. I hate that this has happened. And I'm quite confident USCA did NOT expect it.
My bottom line is that I was 90% confident in this investment before. Today, that has dropped to probably 40%. That's how serious I take something like this. Am I selling? No. But not because I don't want to. In all honestly I would clip 50% of my holdings on this if the price were near my entry point (.00044), but it is not. At .0001 I just assume hold and take my chances. Just being upfront about that. I'm pissed that my USCA shares that are free trading (the ones I bought last week) will lock up $900 of mine until November 10 (or longer if extended) and likely open a lot lower (always happens with halts). I am not investing in GEMM any further until there is some clarification as to what is happening with these inquiries and the halt. At least everyone knows I'm straight up on this. I'm not "panicking" but I'm sure as hell not happy about this whatsoever. I seriously doubt USCA or CMKX is either. And if the company at all was aware of this but knew it had to happen to force some issues regarding naked shorting, well then that just flat out sucks that we are getting screwed triply by being kept in the dark on ANYTHING.
I will wait this out, but uncomfortably so.
Z
As always, these are my personal opinions.
Hopefully nobody in here is investing anything but "fun" money that they can afford to gamble with.
