September 2, 2011
Today's PUMPs & dumpS
Be aware that the DTC now requires trade for trade settlements for WRIT, OTOW, IXMD, PSRU, GTLL, EMXC, DGRI, SLRW, TCLN, BRZL and TIVU. This means that actual share certificates will now be required to settle trades in these stocks rather than the computerized system that the DTC uses for most trades. Such an order is severe and suggests that there is a belief that unauthorized shares have been trading. As trade for trade settlements are a cumbersome and require an intensive accounting procedure, many brokers will not permit the buying of these stocks or will charge higher brokerage fees for the trades, thereby possibly effecting the liquidity. This is often a warning sign that something is afoot and the best idea is to stay away!