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FAB Universal AO Common Stoc Message Board

  • lbcb321 lbcb321 Aug 13, 2014 10:18 AM Flag

    How to manipulate Grey Market stocks

    For your lesson today, I will teach you a trick the manipulators use on Grey Market and Unsolicited Quotation stocks. This is not limited to longs or shorts. The price may be manipulated to appear either low or high. It is called painting the tape and is highly illegal, but the feckless SEC does nothing to stop it even when presented with conclusive evidence it is occurring.

    I could make 50 cents print by entering orders from two different accounts:

    Buy 237 shares FABU Limit .60
    Sell 237 shares FABU Limit .50

    The specialist will match these orders, take their 10 cents in profit and you will see .50 print.

    Same on the high end:

    Buy 312 shares FABU Limit 1.50
    Sell 312 shares FABU Limit 1.40

    Specialist fills the order, takes their 10 cent cut and you see a high price print. Grey Market and Unsolicited Quotation stocks do not have a Bid and Ask from a Market Maker and this price manipulation happens all the time with them. Note the key is they enter the orders with oddball amounts so only their orders get matched.

    Once more, this is not from a long's or short's perspective. Don't fall for it if someone manipulates the price low to entice you to sell and don't fall for it if they manipulate the price high to make you think this is taking off. They did this yesterday and it went to $1.49 on low volume near the end of the day before heading back to its base of around a buck.

    Another impropriety from FAB. They qualify for OTCQX or OTCQB and are harming shareholders by allowing shares to trade on Grey Market where they are not getting best executions and price discovery. What would you expect from those who have shirked completely their fiduciary duties to SHAREHOLDERS.

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    • Ibcb321

      Oh, and excellent use of your other IDs today to make you appear to be a real authority on stocks. Your ego is like the Grand Canyon or the hole in a donut... you can never fill it up enough. This is a real character weakness.

    • Ibcb321

      Thanks for the painting tip. But it looks like you are painting yourself into a corner. You used to only act crazy when expressing political or personal views. Now you act crazy with your trading and viewpoints on FAB. You are marginalizing yourself, dumbo....


    • Thank you for the explanation. Now, if you could explain how those large blocks of 120k shares transacted and were matched up I would appreciate any insight. Someone selling, someone obviously buying in large quantities. I agree about the grey market. Someone knew this was coming and could have stopped it if shareholders were being looked out for. After nine months what was another day or two delay to open this back up on the NYSE?

      • 2 Replies to ozzie232
      • =After nine months what was another day or two delay to open this back up on the NYSE?

        It isn't just that. The comment was made here over and over that FAB was doing everything possible to begin trading as soon as possible. Not true. They could have put pressure on the NYSE. "Let us begin trading or we will go to the OTCQX until you decide what you are going to do with us." OTCQX and OTCQB are the higher tiers of the OTC and have reputable companies. NYSE wouldn't allow that and trading would resume. If they called their bluff... trading would have resumed on a reputable basis and they could have announced to shareholders how they were actually doing everything possible to help them.

        It is inexcusable how this played out for 9 months. It is even more inexcusable how they are allowing trading to continue on the Grey Market when it doesn't need to be there. They could put it on the OTCQX, OTCQB or even the OTC Pink immediately if they chose to do so. Shareholders should demand it. Tell Greg you don't appreciate this being on the Grey Market when it doesn't need to be:

        Greg Jakub

      • =Now, if you could explain how those large blocks of 120k shares transacted and were matched up I would appreciate any insight.

        Institutions and shorts communicating and doing deals. Institutions need to get rid of the shares they were stuck with and shorts made their profit and want to move on. Short calls Fund Manager Smith and says, "How would you like to get rid of your 120K shares?" Smith says, "GREAT!" Short enters Buy 120,000 FABU @ 1.15 All or None. Smith enters Sell 120,000 FABU @ 1.13 All or None. The orders are matched and you have two happy parties.

        I have no knowledge this actually occurred and it is an example for you of how it often works. I actually had a backup plan with an institutional holder that had a similar amount of shares as what I was short. If trading hadn't begun by the end of Q3 we were going to do a deal. I was going to escrow money to buy their shares. They were going to get their physical share certificates and send them to my broker to close my short position. Money in escrow would be released upon receipt of shares. The price we talked about was $1.50 so I am glad I got to cover under a buck.