I got very nice error from their search engine, revealing a bit where they get results from :)
The SEC has temporarily halted trading of Neuromama Ltd.
61–70 of 143 posts
Re: The SEC has temporarily halted trading of Neuromama Ltd.
#62Earlier quoted context omitted.
This sounds pretty amazing but I can't figure out bindings for all the pronouns. Who are the short sellers? Who are the brokers? are they complicit? Is one of them acting as the market maker for the stock? When the con is exploded and the money gets paid back, where did it come from? The short sellers? the brokers? thin air?
Haha yeah the pronouns are not the clearest in this. Let me try: Let's set up three parties to this scam: 1. The Scammers - these people start the company 2. The Short Sellers - these are the "smart money" who uncover some fictitious/sketchy company and want to profit 3. Brokers - these are the intermediaries through which both The Scammers and The Short Sellers trade First, The Scammers set up the company and take i…
Ok, that is helpful. I'm still a bit confused though. (where's collida when you need him?)
So I get the point where the scammer is selling options amongst themselves to get the stock price to rise. I put out an "ask" and then later come back with another shell company/identity and buy that stock with my "bid". Brokers are handling these transactions by connecting the buyers to the sellers (which happen to be the same people so they can buy an sell at an arbitrary price and only the brokers are making any money on the transaction fees.)
Now you stipulate this causes the stock to show up as "over valued" based on pretty standard technical analysis. Sort of "look no revenue but people are buying this stock for $2? WTF?"
So our short seller (who isn't a scammer right? they are being scammed?) goes to their broker and says we think this price is too high and its going down, so we want to sell a put option (that is the promise of a sale) of these shares at $2 a share, 6 months from now. Since they are an options trader and they know how these things go, they also buy a call option, to buy shares at $2.25 6 months from now. This is known as a "butterfly" if the shares go up you will be able to cover your put options with shares from the call option and "lose" only 25 cents per share, if the shares go down, the person on the other side of your put buys your shares for $2 and you sell them for less than $2 and pocket the difference.
What I don't understand is what broker is going to play the other side of the short seller's order book?
If our scammers agree to sell a call option at $2 to counter balance the short seller's put option, they are forced to sell at $2, they can't decide to sell at $20.
How does the scammer get the short seller's broker to take a bath here? They aren't some dupe in an investment club who things "its going to the moon!" and so buying what ever comes out, they are trading options on high risk securities over the counter (in many ways the highest risk securities).
So the only way I see this working is if the broker in this melodrama is corrupt and telling someone to short a stock which the broker does not ever get control over (essentially con them into a naked short).
Re: The SEC has temporarily halted trading of Neuromama Ltd.
#63Earlier quoted context omitted.
Very helpful explanation from a thread about this on reddit (narrated from the first person perspective of the scammer): It's pretty beautiful in an illegal sort of way: So the clever short sellers borrow and sell 100,000 shares of stock at $2 each, hoping to profit when it crashes to zero. By hypothesis, there are no buyers. But we buy. We buy those 100,000 shares for $2 each, laying out $200,000. Now we own 300.1 m…
This sounds pretty amazing but I can't figure out bindings for all the pronouns. Who are the short sellers? Who are the brokers? are they complicit? Is one of them acting as the market maker for the stock? When the con is exploded and the money gets paid back, where did it come from? The short sellers? the brokers? thin air?
Same here. Reading the original makes things clearer though.
https://www.bloomberg.com/view/articles/2014-07-11/cynk-make...
Re: The SEC has temporarily halted trading of Neuromama Ltd.
#64This makes no sense...OTC stocks are almost never bigger than a billion dollars. This used to be at $28 in 2012, which meant is was still worth over $20 billion but the SEC didn;t notice then. No information about this company. not even a wiki page. I think the $35 billion may be a typo and it's only $35 million. There is something missing in the reporting. Maybe it traded at a penny and went to $55 ,maybe it wound be worth billions but it never got lower than $10
Re: The SEC has temporarily halted trading of Neuromama Ltd.
#65Earlier quoted context omitted.
But you get rewards! http://fsr.neuromama.com
What the hell is that story in the footer.
Holy hell... what is going on!
I believe it's pulled from here?
http://www.eurasialasvegas.com/our-mission.html
Or re-used...
Re: The SEC has temporarily halted trading of Neuromama Ltd.
#66Earlier quoted context omitted.
This sounds pretty amazing but I can't figure out bindings for all the pronouns. Who are the short sellers? Who are the brokers? are they complicit? Is one of them acting as the market maker for the stock? When the con is exploded and the money gets paid back, where did it come from? The short sellers? the brokers? thin air?
Eve finds NeuroMama, a worthless stack of nothing but shady documents, and importantly, without a significant number of shares available to borrow. She knows how to manipulate markets and doesn't care much for legality. Eve buys a significant position in NeuroMama over a period of time. She can do this cheaply, but slightly drives up the price. Alice sees that the stock price has increased and this puts it on her rad…
Why would Eve worry about being caught? Everything you've outlined is perfectly legal, and in fact was executed brilliantly by Porsche (http://www.reuters.com/article/us-volkswagen-idUSTRE49R3I920...) in 2008.
Re: The SEC has temporarily halted trading of Neuromama Ltd.
#67Earlier quoted context omitted.
But you get rewards! http://fsr.neuromama.com
What the hell is that story in the footer.
This thing appears on their social network too: https://www.vica.io/our-story/
What a creepy story
Re: The SEC has temporarily halted trading of Neuromama Ltd.
#68For comedic gold visit http://investor.neuromama.com/
Here's the "CTO" who appears to be a poorly paid actor reading from cue cards:
https://youtu.be/g66rO79QL9w
Re: The SEC has temporarily halted trading of Neuromama Ltd.
#69Earlier quoted context omitted.
Eve finds NeuroMama, a worthless stack of nothing but shady documents, and importantly, without a significant number of shares available to borrow. She knows how to manipulate markets and doesn't care much for legality. Eve buys a significant position in NeuroMama over a period of time. She can do this cheaply, but slightly drives up the price. Alice sees that the stock price has increased and this puts it on her rad…
Why would Eve worry about being caught? Everything you've outlined is perfectly legal, and in fact was executed brilliantly by Porsche ( http://www.reuters.com/article/us-volkswagen-idUSTRE49R3I920... ) in 2008.
executed brilliantly by Porsche
Didn't really work out for them in the end. They executed the short squeeze to acquire VW but they're owned by VW now.
http://www.automobilemag.com/news/porsche-and-volkswagen-wha...
Re: The SEC has temporarily halted trading of Neuromama Ltd.
#70If anyone wants the real story, let me know. I know exactly what this group is into.