Feature Videos generate new interest. Feature videos are adroit, artful compilations from multiple resources including video clips, photos, charts, text, analysis, potential projections, illustrations, renderings, music and separate audio recordings from interviews different from the video recordings. All elements layer into one presentation to expound the spectrum of a topic. After the graphic and audio resource material has been obtained, then begins compilation, editing, developing and formating the unique material into one fascinating 10 minute video, a 20 to 100 hour process. 10 minutes is the max length allowed on YouTube.
Videos Uploaded: 3 (copy clip from the YouTube statistics)
Video Views: 1,801
(exact copy clip from the YouTube statistics on 2-26-2009)
First two videos publicly announced 12-25-2008 at night. Friday 12-26-2008 was a business day. Price per share of the Company’s stock rose steadily for 3 weeks with no news from the company. Prior to public announcement of the videos the PPS was declining to 1.2 cents since mid-November 2008. Market Cap increased approx. $16.8MM from 12-26-08 to 1-13-09, PPS: $0.012 to $0.017.
Those two feature videos illustrate the value of well made communication that translate and expound engineer jargon plainly to layman investors that may be novices to the engineering aspects of a company’s work. The demographic statistics from YouTube show that a whole new audience emerged from Europe due to Feature Videos.
Smart European women found the beta versions during testings of the feature videos for a total of approx. 80 views before there was a public announcement of the videos available for public view!
YouTube Statistics of the Feature Videos Audience in this video.
This video depicts principle demographics, audience ages, male/female in various countries around the world, what videos from a palette they watched and when. First videos were available June 6, 2008 of a seminar presentation. Later June – July videos depicted key points of the processing facilities. In October videos depicted the Reserve Report by a third party engineering firm at an annual open house and further developments in company technology and 3-D mapping of the mineralization in the Earth in the short topical unedited format.
After the Christmas night public announcement of the feature videos, the views of the feature videos increased in the regions that have been watching the short topical clips for 6 months. So the features strengthened the established shareholders and attracted new groups in Europe, Asia, South America and the Middle East, links to those charts later in this text.
Demographic Video Posted Sunday night 1-11-2009 in annual report:
Views Day Time Date
------------------------------
20 .. Mon .. early AM .. 1-12-2009
29 .. Mon .. late AM ... 1-12-2009
49 .. Mon .. eve ......... 1-12-2009
61 .. Mon .. nite ......... 1-12-2009
==============================
61 views in 24 hours.
69 .. Tue .. 3:15PM ...... 1-13-2009
77 .. Tue .. 5:00PM ...... 1-13-2009
101 .. Tue ..11:30PM ..... 1-13-2009
(in 2 days the world watching is aware of the information )
107 .. Wed .. 2:20AM .... 1-14-2009
117 .. Thu ... 5:15PM ...... 1-15-2009
(4 days after post. To this day views increase of that video. )
===============================
The other two are the main features,
1. Exploration and
2. Analysis of Reserve,
uploaded since Christmas night 2008, plus the 3rd Demographic video total to nearly 1,000 views in 18 days (6 days in Dec + 12 days in Jan) for a Brand New Channel built upon an audience that grew watching Raw Footage Short Topical Clips at another channel of Smart Exploration and Processing Technology like Target Drilling, Software Prediction tools to locate profitable mineralization, amass probabilities of reserve and high yield modern extraction methods.
Many shareholders enjoy our expounding engineering and investment concepts to the level of a novice yet hold the attention of seasoned veterans in either mineral exploration or investing, further in this text are links to abbreviated lists of shareholder responses to the short clip, raw footage, topical videos.
Worldwide Audience of Videos on the Feature Channel expressed as a decimal fraction of a whole:
Asia
Iran 0.03
Philippines 0.01
China 0.01
Indonesia 0.01
Africa
Algeria 0.02
Egypt 0.01
Europe
Belgium 0.07
Czech Republic 0.04
Macedonia 0.02
Estonia 0.02
Greece 0.02
Slovakia 0.01
Switzerland 0.01
Spain 0.01
Netherlands 0.01
Finland 0.01
Middle East
Qatar 0.03
Israel 0.01
South America
Peru 0.01
USA
Nevada 0.42
California 0.32
Wyoming 0.3
Arizona 0.16
Virginia 0.13
Indiana 0.11
District of Columbia 0.11
Florida 0.1
Kansas 0.1
Colorado 0.1
Worldwide
United States 0.34
Canada 0.10
Belgium 0.07
Czech Republic 0.04
Australia 0.04 ........ watched for the first time in early February.
Iran 0.03
Qatar 0.02
Macedonia 0.02
Algeria 0.02
Estonia 0.02
Single Image Files of Demographic Data in the Demographic video
http://picasaweb.google.com/Scheqky.Goldsprings/GoldspringIncMiningInvestmentVideoDemographicHistory2008
Statistics & Graphs of Video Audiences & Choices Worldwide in Jan 2009 http://picasaweb.google.com/Scheqky.Goldsprings/AUDIENCECHOICESJANUARY2009VIDEOS
Graphs-4th Week Jan 2009 Worldwide Audiences of Videos about the Co.
http://picasaweb.google.com/Scheqky.Goldsprings/GraphsWeek4Jan2009WorldwideAudiencesChoicesOfVideos#
<> Video Recording Investment Presentations <>
............ Correspond with Surges in Transactions.
Seminar promotes start-up companies posed to become solid investments, ‘Red Chips to Blue Chips’. Times are by Eastern Standard Time, for instance 2:27 PM EST is 11:27 AM PST in San Francisco when the first public announcement of videos on YouTube about a mineral exploration company the morning after the seminar.
Videos Uploaded: 3 (copy clip from the YouTube statistics)
Video Views: 1,801
(exact copy clip from the YouTube statistics on 2-26-2009)
First two videos publicly announced 12-25-2008 at night. Friday 12-26-2008 was a business day. Price per share of the Company’s stock rose steadily for 3 weeks with no news from the company. Prior to public announcement of the videos the PPS was declining to 1.2 cents since mid-November 2008. Market Cap increased approx. $16.8MM from 12-26-08 to 1-13-09, PPS: $0.012 to $0.017.
Those two feature videos illustrate the value of well made communication that translate and expound engineer jargon plainly to layman investors that may be novices to the engineering aspects of a company’s work. The demographic statistics from YouTube show that a whole new audience emerged from Europe due to Feature Videos.
Smart European women found the beta versions during testings of the feature videos for a total of approx. 80 views before there was a public announcement of the videos available for public view!
YouTube Statistics of the Feature Videos Audience in this video.
This video depicts principle demographics, audience ages, male/female in various countries around the world, what videos from a palette they watched and when. First videos were available June 6, 2008 of a seminar presentation. Later June – July videos depicted key points of the processing facilities. In October videos depicted the Reserve Report by a third party engineering firm at an annual open house and further developments in company technology and 3-D mapping of the mineralization in the Earth in the short topical unedited format.
After the Christmas night public announcement of the feature videos, the views of the feature videos increased in the regions that have been watching the short topical clips for 6 months. So the features strengthened the established shareholders and attracted new groups in Europe, Asia, South America and the Middle East, links to those charts later in this text.
Demographic Video Posted Sunday night 1-11-2009 in annual report:
Views Day Time Date
------------------------------
20 .. Mon .. early AM .. 1-12-2009
29 .. Mon .. late AM ... 1-12-2009
49 .. Mon .. eve ......... 1-12-2009
61 .. Mon .. nite ......... 1-12-2009
==============================
61 views in 24 hours.
69 .. Tue .. 3:15PM ...... 1-13-2009
77 .. Tue .. 5:00PM ...... 1-13-2009
101 .. Tue ..11:30PM ..... 1-13-2009
(in 2 days the world watching is aware of the information )
107 .. Wed .. 2:20AM .... 1-14-2009
117 .. Thu ... 5:15PM ...... 1-15-2009
(4 days after post. To this day views increase of that video. )
===============================
The other two are the main features,
1. Exploration and
2. Analysis of Reserve,
uploaded since Christmas night 2008, plus the 3rd Demographic video total to nearly 1,000 views in 18 days (6 days in Dec + 12 days in Jan) for a Brand New Channel built upon an audience that grew watching Raw Footage Short Topical Clips at another channel of Smart Exploration and Processing Technology like Target Drilling, Software Prediction tools to locate profitable mineralization, amass probabilities of reserve and high yield modern extraction methods.
Many shareholders enjoy our expounding engineering and investment concepts to the level of a novice yet hold the attention of seasoned veterans in either mineral exploration or investing, further in this text are links to abbreviated lists of shareholder responses to the short clip, raw footage, topical videos.
Worldwide Audience of Videos on the Feature Channel expressed as a decimal fraction of a whole:
Asia
Iran 0.03
Philippines 0.01
China 0.01
Indonesia 0.01
Africa
Algeria 0.02
Egypt 0.01
Europe
Belgium 0.07
Czech Republic 0.04
Macedonia 0.02
Estonia 0.02
Greece 0.02
Slovakia 0.01
Switzerland 0.01
Spain 0.01
Netherlands 0.01
Finland 0.01
Middle East
Qatar 0.03
Israel 0.01
South America
Peru 0.01
USA
Nevada 0.42
California 0.32
Wyoming 0.3
Arizona 0.16
Virginia 0.13
Indiana 0.11
District of Columbia 0.11
Florida 0.1
Kansas 0.1
Colorado 0.1
Worldwide
United States 0.34
Canada 0.10
Belgium 0.07
Czech Republic 0.04
Australia 0.04 ........ watched for the first time in early February.
Iran 0.03
Qatar 0.02
Macedonia 0.02
Algeria 0.02
Estonia 0.02
Single Image Files of Demographic Data in the Demographic video
http://picasaweb.google.com/Scheqky.Goldsprings/GoldspringIncMiningInvestmentVideoDemographicHistory2008
Statistics & Graphs of Video Audiences & Choices Worldwide in Jan 2009 http://picasaweb.google.com/Scheqky.Goldsprings/AUDIENCECHOICESJANUARY2009VIDEOS
Graphs-4th Week Jan 2009 Worldwide Audiences of Videos about the Co.
http://picasaweb.google.com/Scheqky.Goldsprings/GraphsWeek4Jan2009WorldwideAudiencesChoicesOfVideos#
<> Video Recording Investment Presentations <>
............ Correspond with Surges in Transactions.
Seminar promotes start-up companies posed to become solid investments, ‘Red Chips to Blue Chips’. Times are by Eastern Standard Time, for instance 2:27 PM EST is 11:27 AM PST in San Francisco when the first public announcement of videos on YouTube about a mineral exploration company the morning after the seminar.
Check those times to a chart that can tract back in time such as the interactive chart at Google, MarketWatch.com, Quote.com, etc. The Company chart began climb up at 12:15 PM PST/ 3:15 PM EST Friday June 6, 2008, approximately 45 minutes after first public notice of the videos in one on-line forum.
Thursday, June 5, 2008 was the day of the conference. Historical Quotes from MarketWatch.com[i]:
Tuesday, June 03, 2008
Closing Price: 0.017
Open: 0.0161
High: 0.017
Low: 0.0161
Volume: 16,310,000
Wednesday, June 04, 2008
Closing Price: 0.018
Open: 0.0168
High: 0.0181
Low: 0.0168
Volume: 38,840,700
Thursday, June 05, 2008 (the day of the conference)
Closing Price: 0.018
(Flat, same as Open price. Same as prior day closing price.)
Open: 0.0182
High: 0.019
(Beat back down. There was strong opposition by skeptics, naysayers and rumor mongers)
Low: 0.0177
Volume: 35,367,000
Friday morning price per share remained near $0.018 even though people heard a live webcast of Chief Engineer twice declaring potential bonanza material the day before at lunch, 12:30PM PST and at 2:30PM PST. Rumor mongers were arguing against that statement, saying the COO said something else as evidenced on the Yahoo Message Board, a modern version of the Wild West, taking advantage of several weak points:
1. People did not have replay capability of a video. The message was only observed once when it was live. The only ability to remove doubt was other people in an on-line forum arguing they heard something different. Apparently the arguments cancelled each other as the PPS changed little in 23 hours.
2. The seminar host did not have instant replay of the presentation of the mineral exploration company.
3. The presenter has high acclaim for large depth and range relative to mining engineering, but a key statement was not elucidated with build-up and follow-up language relative to the short statement about “…bonanza…”, neither was there an on-line graphic file that reinforced the audio . It was a quick anxious statement in a long sequence of fast moving engineering and visionary details, hence ears of many novice investors and novices to mining were still processing so many prior engineering details of the presentation that their minds were not prepared to turn off processing all the other stunning news and focus on an item that strongly affects their return on investment.
4. Price per share (PPS) was not changing during the last hour of trading on the day of the seminar.
5. Thursday night till 10:30 PM PST, west coast time, the Yahoo on-line forum had several long threads of argument between pros and cons about whether the engineer said “bonanza” or not. The naysayers argued vehemently against any increased value of the company’s reserve and the longs had little recourse to proof other than their own memory.
The next morning, on that Friday after 4 hours of trading, the PPS was relatively flat to the PPS since before the seminar!
I knew I had to post the videos to give the on-line forum positive proof of what were official statements made by the executives of the mineral exploration company. It took an hour to upload the videos including adding titles and textual descriptions to the YouTube videos.
When YouTube was done their part of the processing, I made public notice in the Yahoo on-line forum about my videos available to anyone anywhere in the world if they have a connection to the internet. Since people had the ability to watch, stop and replay key portions of the factual recordings from the seminar about the rich find in the Company reserve, the PPS began a rapid rise upward for the last 45 minutes of trading, 3:15 PM EST to Closing (4PM EST), on
Friday, June 06, 2008:
Closing Price: 0.022
(+4/10ths of 1 penny = +22%. 1/10th of a cent is a 5% move in one day.)
Open: 0.018
High: 0.0218
Low: 0.018
Volume: 95,937,200
The PPS continued to climb on the next business day:
Monday, June 09, 2008:
Closing Price: 0.03
Open: 0.022
High: 0.035
(+13/10 ths of a penny, 59% increase in one day. 0.0347 was highest I saw)
Low: 0.022
Volume: 186,305,700
………..16/10ths since video viewing began, +87%: 0.0185 to 0.0347.
The first Public written Press Release from the Company was a short article without many details published on the internet two business days later on Monday near the end of Closing Bell for Trading.
More detail was in a webcast, open to the public, later in that week by the COO and CEO with many investors as a follow-up to the seminar archived in the Link to Audio Recordings further in this text.
Comments of numerous shareholders appreciating the news and power of video-verification (VV) are in the On-Line Still Image Gallery. Link is further in this text.
Informing investors of progress at the Exploration Site is a good way to counter Rumor Mongering. From mid-November to Christmas 2008 there was a hub-bub of rumor mongering and the share price was falling to $0.012. Christmas night 2008, two feature videos posted on a brand new site only for Feature Videos at YouTube.com. Afterwards the price per share of Goldspring increased till Tuesday-Wednesday 1-14-2009 with a high of $0.017, a period of three weeks with no news from Company since mid-December.
12-26-08 to 01-13-09, PPS increased from $0.012 to $0.017 - a $16.7 million increase of the Market Cap, Google Financial Chart reports float of Shares: 3.34B. MarketWatch.com Historical Quotes[ii]:
................................................................(End of Run-up)
Tuesday, December 23, 2008 ..........Tuesday, January 13, 2009
Closing Price: 0.012 ................................. Closing Price: 0.017
Open: 0.012 ............................................. Open: 0.0153
High: 0.0125 ............................................ High: 0.0179
Low: 0.0116 .............................................. Low: 0.0153
Volume: 1,828,500 .................................... Volume: 16,387,000
................................................................ (Run-up lingers)
Wednesday, December 24, 2008 .....Wednesday, January 14, 2009
Closing Price: 0.012 ................................. Closing Price: 0.016
Open: 0.0115 ........................................... Open: 0.0175
High: 0.0125 ............................................ High: 0.0176
Low: 0.0115 .............................................. Low: 0.016
Volume: 2,481,200 ................................... Volume: 6,942,800
(First day of 2 Feature Videos)
Friday, December 26, 2008 .............Thursday, January 15, 2009
Closing Price: 0.014 ................................. Closing Price: 0.016
Open: 0.0126 ........................................... Open: 0.0165
High: 0.0135 ............................................ High: 0.0165
Low: 0.0123 ............................................. Low: 0.015
Volume: 3,394,900 ................................... Volume: 5,937,000
Drill #s ......Date .............Title of Press Release
#58- #66 ... 11/18/2008 .. Company Adds Drills to Accelerate Drilling
#67- #71 .... 12/16/2008 .. Company Announces Latest Assay Results
#72- #84 ... 02/05/2009 .. High-Grade Gold & Silver From Recent Infill
#88-#100 .. 02/12/2009 .. Company Expands Deposit, Comstock, Nevada
#101 ........... 02/18/2009 .. 140’ Gold Interval Grading 0.242 OPT
#102-#111 .. 02/24/2009 .. 65’ 0.123 OPT Au & 2.23 OPT Ag at Deposit, NV
Many investors were re-encouraged by the Feature Videos as that gave them reason to continue to holding their shares during an extended wait due to several postponements of production per company statements of discovering additional reserve in need of further delineation.
During the wait people were encouraged to catch up on the less exciting videos about technical elements of mining such as leach pads, leach pad liners, filtering and extraction processes similar to swabbing the decks of a Navy vessel and painting the ship during lulls while wating for action. It was great joy to see that people did increase their background knowledge. YouTube demographic charts state that the technical videos were the most watched from mid-December to mid-January, hence encouragement has value! Thereafter investors have 'strong hands' as they are holding their shares as they await the exploration company to publish their first significant scale Detailed Mining Plan.
Typically the most watched videos are about the drill hole with the highest assay of gold grade and the peak performance of the processing facility, probably since those are most closely related to return on investment (ROI). It was good to see that people trusted encouragements to 'bone-up' on the less exciting background facts about mineral processing. That proves another positive aspect of a public forum focused on a specific investment.
Short Clips – focus on a pertinent topic. Start and finish are the only editing. These are ‘raw footage’.
Benefits:
1. Strengthen investor resolve
2. Virtual Tour – investors need not incur considerable travel expenses to visit an operation.
3. Education without logistics of printed brochures such as data processing personnel and distribution.
4. Website links on business card instead of hauling a carton of brochures, disks and/or tapes.
5. Introduces company personnel in their environment of expertise.
6. Looks, action, and attitudes are conveyed that cannot be portrayed with text, photo or audio only.
7. Remove doubts. Besides the natural tendency in people to easily believe a negative report, countering rumors is required – Bear Sterns went down by rumors.[iii] Countering rumors with bravado stopped working when many investors lost confidence in company leadership in general decades ago. Today professionals of distortion and acquisition propagate misconceptions of company weaknesses. Videos can tell an audience whether a company person is telling the truth or not. The camera detects micro-facts.
8. The videos alleviate staff from repeating the same message countless times to inquiries by telephone, email, fax and correspondence.
9. A large percentage of commodity investors are naturally inclined to study technical details.
10. Many investors like the videos. They can watch them in their schedule versus make room in their schedule for a company presentation.
11. Layering information per spectrum and levels of interest.
12. Automated equipment dispenses the information versus company staff. Emerging companies can keep their scant staff on the tasks that will create the legacy of the company.
During 9 months as of 2-25-2009, these Short Clips of an emerging mineral exploration company have provided educational material to investors. These statistics directly from YouTube, Division of Google:
Video Views: 43,002
(first 6 videos of raw footage fresh from a seminar site were uploaded June 6, 2008)
Videos Uploaded: 95
(less than the full library are portrayed for rotation)
Channel Views: 2,994
(These videos are linked into 2,994 web sites around the world.)
http://www.youtube.com/profile?user=Scheqky&view=videos&sort=v
Approx. 1% to 2% of investors are able to attend public presentations of company progress. The other 98% still can vote with their transactions remotely. Please review this sampling of Investor Response to Videos of Company presentations from the June RedChip Investment Seminar & October BBQ Open House in 2008.
http://picasaweb.google.com/Scheqky.Goldsprings/ShareholderResponseToVideosAboutGoldspringIncOnYouTubeJuneDec2008
On Site News Recording:
Reserve Update Graphic Presentation delivered at Open House with BBQ
http://picasaweb.google.com/Scheqky.Goldsprings/GoldspringIncReserveUpdateChartsByTelesco
Enhance Coordination with SEC filings
http://www.sec.gov/Archives/edgar/data/1120970/000114420408057210/v128715_ex99-1.htm
http://www.sec.gov/Archives/edgar/data/1120970/000114420408057210/v128715_ex99-2.htm
Historic Charts, Maps, Photos at
http://picasaweb.google.com/Scheqky.Goldsprings/ShareholderMineTourHighResPhotos
http://picasaweb.google.com/Scheqky.Goldsprings/May92008GSPGMINEVISITPHOTOSByBOB
http://picasaweb.google.com/Scheqky.Goldsprings/DRILLREPORTS#5240835657991393378
Investors like Factual Recordings of Facilities and Exploration
http://www.youtube.com/Scheqky
However the feature videos bring in another audience and give investors something to share with other people that need something with presentation skill and expound a topic until the message is clear to all.
These Full Feature videos attracted a world wide audience still growing to this day. People are hungry for information on the other side of the Globe – a reason why Google and YouTube are so popular.
http://www.youtube.com/GoldspringInc
YouTube is a recent division of Google that has its own headquarter building complex.
BLOGS – ANOTHER LAYER OF DEPTH & VARIETY
In the left side bar of the YouTube channel web pages there is a list of links to blog sites for more in-depth textual analysis, comments and coordination with authorative websites such as colleges, government bureaus and institutes:
The beginning of a study tree about the Company
http://www.goldspringinfo.blogspot.com/
Links to SEC Filings, Company Press Releases, Investor Presentations and Third Party web sites about the Company in this library of web links.
http://goldspringfacts.blogspot.com/
Historic Production Facts of the region with current photos of the site.
http://comstockgold.blogspot.com/
Shareholders Opinions
http://comstocklongrangers.blogspot.com/
List of videos with short description.
http://goldspringvideo.blogspot.com/
How to travel to the site, where to stay and visit
http://traveltogoldspring.blogspot.com/
Tutorial about relative government regulations builds patience in investors and confidence that government procedures protect investments.
http://goldspring43-101.blogspot.com/
Salient points about the Company's staff.
http://gspg.blogspot.com/
Projections of Potential Yield
http://bonanzah.blogspot.com/
On-Line Still Image Gallery
http://picasaweb.google.com/Scheqky.Goldsprings/
Audio Recordings, radio interview and webcasts
http://www.mymusicstream.com/artist/1947/index.php
40,032 Views of Topical Videos as of January 15, 2009, established June 6, 2008, 8-1/2 months.
1,053 Views of 3 Feature Videos on 1-15-2009, started 12-25-2008
Educational Presentation of Company Facts and Potential
.................................................................................................................
Multi-Media Communication for Industry & Investment
Industrial News, Recording Videos, Photography on Web
Authoring Blog Sites, Charts and Graphics
Requests for this service can be made by the email function at the bottom of the webpage way down lower left column in box titled "Connect with ... ", then click item in box labeled "Send Message"
at www.youtube.com/GoldspringInc
or www.youtube.com/Scheqky
Footnotes
[i] Key Highlight Quotes from
http://www.marketwatch.com/tools/quotes/historical.asp?symb=GSPG
[ii] Key Highlight Quotes from
http://www.marketwatch.com/tools/quotes/historical.asp?symb=GSPG
[iii] Battles of words have made or broken stocks for two centuries. Bear Stearns in summer 2008 stated that they were attacked by rumor mongering of misinformation.
Rumormongering Caused Run on Bear Stearns
- Wall St Journal excerpts about Lehman
"Securities and Exchange Commission subpoenaed dozens of hedge funds and financial firms about four Lehman-related rumors."
"Lehman has repeatedly denounced negative speculation, even calling individuals believed to be spreading rumors..."
"In an apparent attempt to prevent a repeat of the cascading rumors that helped sink Bear Stearns Cos., the Federal Reserve last month quietly called one major bank...the Fed has a strong incentive and moral authority to dispel groundless speculation that could threaten the viability of an important cog in the U.S. financial system."
"Lehman has complained that its problems have been fodder for vicious, unfounded rumormongering by traders who profit when the firm's share price declines."
"Lehman shares are down 79% so far this year."
"When the Bear Stearns crisis erupted in March, Lehman and other Wall Street firms criticized the SEC for not responding more aggressively to rumors that essentially caused a run on the bank, forcing Bear's emergency sale to J.P. Morgan Chase & Co."
"The flurry of rumors about Lehman died down since the SEC's actions."
- Top Middle article on Front page of MONEY & INVESTING section in the Wall Street Journal, printed Thursday, August 21, 2008, written by Matthew Karnitschnig and Susanne Craig.
"Distort and Short" Manipulation of Stocks
- Rumors and Misinformation
Short sellers make a bet that a stock's price will fall so that they can profit from it. They borrow shares of the stock and sell them. If the price drops, they buy cheaper actual shares to cover the borrowed ones, pocketing the difference.
"Naked" short selling occurs when sellers don't even borrow the shares before selling them, and then look to cover positions immediately after the sale. The SEC order requires short sellers to actually borrow shares before selling them.
SEC Chairman Christopher Cox said the order was also helping prevent potential "distort and short" manipulation of stocks, which occurs when rumors and misinformation are used to drive down the price of a stock that has been sold short.
Bringing Down Bear Stearns
On Monday, March 10, the rumor started: Bear Stearns was having liquidity problems. In fact, the maverick investment bank had around $18 billion in cash reserves. But soon the speculation created its own reality, and the race was on to keep Bear’s crisis from ravaging Wall Street. With the blow-by-blow from insiders, Bryan Burrough follows the players—Bear’s stunned executives, trigger-happy reporters at CNBC, a nervous Fed, a shadowy group of short-sellers—in what some believe was the greatest financial scandal in history.
Vanity Fare article on August 2008 by Bryan Burrough
On Monday, March 10, 2008, Wall Street was tense, as it had been for months. The mortgage market had crashed; major companies like Citigroup and Merrill Lynch had written off billions of dollars in bad loans. In what the economists called a “credit crisis,” the big banks were so spooked they had all but stopped lending money, a trend which, if it continued, would spell disaster on 21st-century Wall Street, where trading firms routinely borrow as much as 50 times the cash in their accounts to trade complex financial instruments such as derivatives.
… Molinaro, Bear’s popular chief financial officer, heard gossip that morning that was the first tiny ripple in what within hours would grow into a tidal wave of rumor and speculation that would crash down upon Bear Stearns and, in the span of one fateful week, destroy a firm that had thrived on Wall Street since its founding, in 1923.
The fall of Bear Stearns wasn’t just another financial collapse. There has never been anything on Wall Street to compare to it: a “run” on a major investment bank, caused in large part not by a criminal indictment or some mammoth quarterly loss but by rumor and innuendo that, as best one can tell, had little basis in fact. Bear had endured more than its share of self-inflicted wounds in the previous year, but there was no reason it had to die that week in March.
What happened? Was it death by natural causes, or was it, as some suspect, murder? More than a few veteran Wall Streeters believe an investigation by the Securities and Exchange Commission will uncover evidence that Bear was the victim of a gigantic “bear raid”—that is, a malicious attack brought by so-called short-sellers, the vultures of Wall Street, who make bets that a firm’s stock will go down. It’s a surprisingly difficult theory to prove, and nothing short of government subpoenas is likely to do it. Faced with a thicket of lawsuits and federal investigations, not a soul in Bear’s boardroom will speak for the record, but on background, a few are finally ready to name names.
http://www.vanityfair.com/politics/features/2008/08/bear_stearns200808
Facts dispel rumors.
If people are not told or witness something, they do not know what to think about it.
Knowledge is Power.
Lack of Knowledge is Powerlessness.
People can only know what they are told, see, understand or witness.
Video Post Production
Editing of Textual and Graphic Communication
Analytical and Editorial Postings on the Internet to Create Consensus
Encouraging, Stabilizing and Strengthening Shareholder Confidence through Communications on the Publically Available World-Wide Web
Requests for this service can be made by the email function at the bottom of the webpage way down lower left column in box titled "Connect with ....", then click item in box called "Send Message" at
www.youtube.com/Scheqky
