Gate Ventures Share Discussion Threads

[bumpa33] 23/7/2015 08:49

TBM - i'll leave you to it, really no point in discussing this anymore with someone clearly utterly bonkers...!

[ten bag man] 23/7/2015 08:46

Elcapital they can wait but they will be paying the counter party to do so.

That's a cost that has to be added to the 3100% loss to date. !!

[elcapital] 23/7/2015 08:32

NO pressure on them to close. They want to of course to secure their gains, one hundred per cent gains. They could wait until it goes bust, if no gray market appears quickly.

[ten bag man] 23/7/2015 08:20

Elcapital;

Huge pressure for the shorts to close, as it's like a death sentence it never goes away.

Company has enough cash to pay the directors for 20 years.

The shorters have seen this companies shares go the WRONG way for all of its short life on AIM.

Now the "get out" door has been closed.

[elcapital] 23/7/2015 08:10

TBM...you need help

Nobody has made thirty one times their investment, they will most likely lose the lot, all initial ten pence. Assets will be stripped and company closed down. No pressure on the shorts to close. They win, you and fellow idiots investors lose....as usual

[ten bag man] 23/7/2015 08:07

Bumpa33,

For the shorters yet another door has closed, (one they thought they wanted closed) as no doubt in the past it has made them massive profits, ( other companies).

This time round the shorters may have jumped head first into a trap, (through sheer greed).

As I have been pointing out for months on this BB .

[bumpa33] 23/7/2015 07:44

TBM - listing cancelled, shares now worthless.

[ten bag man] 23/7/2015 07:42

Now for the shorters:

If,( as was the case ) they failed 100% to find sellers when the shares were trading, what chance have they now.!!


News from the company since trading was halted has been outstanding with bags of cash raised and yet another £9M on the table.

Do the shorters know who ALL the shareholders are.?

Are all the shares in GATE now owed by the CHINESE.?

How can the shorters know who has the rights to shares bought in the market, (but as yet not delivered.?)

How do the shorters know how many shares have been shorted on or off market.?

I say the above as various shorters may or may not know each other, so we may have a situation where we have the MARKET MAKERS after stock, the book makers after stock Joe blogs after stock, WINNIES mates after stock, the Fat man after stock and so on.

All those shorters care not about any one else (bar themselves.)

However they are all sitting on massive unlimited losses right now.

[ten bag man] 23/7/2015 06:56

Any and every shareholder in GATE who bought at the float price is up to the tune of 31 times his or hers investment.

Not only that, those shareholders know that this company has been shorted.

Shareholders need to do nothing but wait for the shorters to beg them to sell their shares.

Shareholders can also just stay invested for years as the company grows.

[ten bag man] 22/7/2015 23:10

One other point:

Our poster above notes that GATE has been caught out by the de listing of its shares.

Not even sure that is correct.

What if the company had a game plan from day one.

List the shares at 10P

Grow the company

Other investors buy in on the back of those growth plans.

Shares go up.

The company may of had an idea some would short its shares. ( Chinese, new IPO and so on)

Shares go up more.

Shares get de listed ( after the shorters put out bad things about the company to the LSE and press)

THEN THE PENNY DROPS.

No shareholder in GATE is willing to sell any shares to the shorters.

Now the shorters are looking ( as been the case since day one, with any naked short) unlimited losses.

[ten bag man] 22/7/2015 22:50

Now let's go through each stage of the above.

First: if you have bought shares in GATE and they have not been delivered within 3 days get onto your broker and demand them.

If he has not got them and your happy with the last traded price then you can take that as your reward.

Now onto the shorters.

The shorters have a contract with the party that let them short the shares be it a broker, bookmaker,or mate in the pub. !!

They will know the terms and no doubt can send you a copy.

You may have a week, a month or a year to cover those shorts but it's on a timer.( if not the counter party could never close a deal.)

Our poster above fails to point this out.!!!!!

So one big point to know is their is a time limit.

The poster above talks of a grey market opening up at some stage.
That often is the case, but it will not if their are no sellers: if it does the price will be based on the last trades though the market. The longs can call ALL the shots as they have what the shorters need, ( not the other way round.)

Next we look at doing a deal through the broker and signing a disclaimer ;
One can rule that out as your still on the hook for ever and ever to cover the short if a party goes after the broker.

To sum up.

The naked shorter in GATE is on the run.

First ; as the shares are no longer trading he has no way of buying back the shares he sold short.
Second: no new shares have been issued at any price to get him off the hook.
Third: with the stock so tightly held any would be seller can name his price.
Fourth.its not just the shorters looking to cover their shorts it's the market makers as well. Hence we have buyers ( the market makers who have to deliver stock to the brokers who in tern have to deliver to the investors who bought the stock.
Fifth.;The shorters plan/ hope/ pray the company goes to the dogs (to pick up the stock they pre sold,and make a massive profit)
That often is the case but not at GATE where yet another £9M of cash is on the table for the company to use.

As I have stated many times on this thread no one can make a shareholder sell his or hers GATE shares.

More to the point why on earth should they sell to cover a position from a naked shorter who"s only target is to bust that shareholder.?

One can be sure the shorters of GATE shares would have gone in for the kill selling more and more shares (they did not own)as the price went up.

I have no idea how many shares in % terms but greed is what the shorters feed on and since it was being shorted for months (on and off market) the numbers could be very large indeed.

So might be the loss.

[elcapital] 22/7/2015 22:07

I posted the link to this already.

[ten bag man] 22/7/2015 22:05

Elcapital's post 417:


"Out of interest, does this means your short has been closed out at 0p? I'm always wary of shorting small illiquid company, in case I cannot close or be forced to close.

You are right to be wary of shorting small companies, as it is far easier for people to execute bear squeezes against those who are short. That said, anyone who finds themselves in a naked short position of a stock that has been suspended doesn't have to worry about delivering the stock for a very long time. There is no market mechanism to enforcing a buy-in of a stock that is not listed, which puts the power in the hands of Shorters rather than the Longs, who were previously relying on forced buybacks to keep the price moving up. A grey market opens up EVENTUALLY for suspended stocks eventually where Longs look to take their tax loss and shorts look to crystallise profits - usually at a nominal price. Alternatively, after an appropriate length of time, a broker may release all proceeds from the short sale if the client signs a disclaimer whereby he will recompense the broker if any subsequent liquidation/restoration results in value being attributed to the shares. This protects the broker, but allows the log jam to be freed whereby Longs don't want to accept their losses (like Naibu, for example) and Shorts don't want to pay anything other than a nominal sum for worthless shares.

For obvious reasons, very few brokerages allow naked shorts as they need to be sure that their clients will pay up if things go wrong. GATE will end up as being worthless, but anyone short wanting to make 100% on the trade will have to wait many months to collect. In the meantime, there will probably be a grey market that slowly develops as those poor Chinese who were suckered into buying this try to find buyers for a stock that is no longer listed. There will also be those (Fraudster Groupies) that knew exactly what was going on, but chose to buy anyway in the hope of making the free float even smaller and trying to piggy back off the work that the fraudsters were putting in. They will also now be left high and dry, as they failed to plan for a suspension for the company's shares. Despite their common interest with the fraudsters, only the latter will be running for the hills with any dough.

Clearly, the Fraudster Groupies deserve everything they get when left holding the bag. Whilst they are not directly involved in any criminal activity, their greed helps this kind of scam, and they make the Fraudster's task much easier."

@WShak1

[bumpa33] 22/7/2015 16:23

"Fraudster Groupie" - i'll have to remember that one...!

[elcapital] 22/7/2015 16:18

TBM............as I said

[phowdo] 22/7/2015 14:55

Whats that all about then?
14:17:55 300.00 25,221 75,663.00 O

[lefrene] 22/7/2015 13:34

Nice precis there Bam Bam. Perhaps a weekly open cry auction in a Starbucks, somewhere near their office would suit their requirements? :¬)

[bam bam rubble] 22/7/2015 13:08

RNS summary

Gate has agreed terms to participate in three high-profile investments in the
entertainment industry - these are undertakings of great advantage but no one
to know what they are. In other news Gate Ventures will be delisting off AIM
having failed to find an advisor willing to represent the company.

Chairman Geoff Morrow said; "The Board have worked tirelessly from our IPO in
March to our July delisting to identify the very best investing opportunities
our paper can buy, investing in my play for example, and will now look for an
exchange with lighter touch regulation than AIM. China Sports Development plc
where I'm also Chairman was suspended from ISDX earlier this month so ideally
we would need to find an exchange with slightly lighter regulation than ISDX."

[ten bag man] 22/7/2015 09:47

Tell us more Simon.

[simon cawkwell] 22/7/2015 08:51

TBM,

You are completely wrong in your summary of the legal positions arising.

SC

[ten bag man] 22/7/2015 08:50

Now to the spread betting companies.

If they are dealing within their own book they will do one thing, and one thing only.

Make a massive profit at the expense of punters who have positions.

So you can be 100% sure if all their bets are shorts, they will milk them with a starting base line of the last posted price on AIM.

£3.20P

[ten bag man] 22/7/2015 08:30

Let's look at the facts here.

GATE has seen its stock rise from 10P to £3.20P.

Buying of the shares pushed the stock up to that level.

Any buys through the AIM market will HAVE to be settled ( and in my view within 2 two days of delisting,) market rules state they should have been settled months ago, ( two days after the buy trade) but the MM and AIM are slack.

So both the MM and the shorters need to tidy up their positions.

99 times out of 100 those above would have been let of the hook by the company issuing placing shares at a massive discount.

However that's not the case here.

[bumpa33] 22/7/2015 08:13

TBM - if you think anyone's gonna believe the content of Gate RNS's you are out of your tiny mind...!