The total aggregate number of shares shorted since October is approximately Approximately Regulation SHO requires bona-fide market-making activities to include making purchases and sales in roughly comparable amounts. The Commission has stated that bona-fide market-making DOES NOT include activity that is related to speculative selling strategies or investment purposes of the broker-dealer and is disproportionate to the usual market making patterns or practices of the broker-dealer in that security.
Likewise, where a market-maker posts continually at or near the best offer, but does not also post at or near the best bid, the market-maker's activities would not generally qualify as bona-fide market-making.
Moreover, a market-maker that continually executes short sales away from its posted quotes would generally not be considered to be engaging in bona-fide market-making. Reports include:.
On November 8, more evidence was provided supporting the argument that RAYS technology may not be what they claim it to be. A simple test was published here , reproducible by anyone with a minimal Linux OS expertise. The author was able to reach the same rate of compression claimed by Raystream — even 3 MB less — with the freely available tool mencoder and the H.
By the way, one only needs to download the RAYS showcase video to see that it was also compressed with this codec. By now, it should be obvious that this story is too good to be true.
Investors need to ask themselves a question that is often asked by ChinaHybrid skeptics such as Muddy Waters and Citron. Why would a company with such a game changing technology choose to go public via a transaction with a shell without assets? The answer — we believe it is unlikely that the company has some game changing technology and in the slim chance it does it will have to spend millions of dollars just cultivate it, diluting shareholder value along the way. We find it impossible to believe that the firm that claims to possess unique technology could not raise substantial capital as a private firm, culminating in partnership arrangements with reputable industry giants or in an impressive IPO debut when it could maximize its return on its investment.
That would have been like YouTube choosing to go public via an RTO transaction as opposed to combining forces with Google.
If you have revolutionary technology the giants will find you, and you will want to partner with a firm that can back you. You will not want to go public and then embark on massive dilution activities to fund your business plan, nor will your shareholders prefer this scenario. RAYS already has 50 million outstanding shares and to date has barely raised any capital. To this point, we suggest investors read the story of DiVx Inc. They solidified their position in the market place in by having their software downloaded with over million downloads and over 50 million DivX Certified devices shipped.
At the time DivX employed workers worldwide. Sonic in-turn was then purchased three months later in January by Rovi Corp. So what did Raystream GmbH sell its ground breaking technology for? Well they certainly did not require any cash or follow the route that a respected firm like Divx took. On September 19, , Raystream Inc.
The acquisition of Raystream GmbH makes it a wholly-owned subsidiary of the Company. They paid Raystream GmbH with 20,, common shares. How much was it in U. So who are RAYS customers? Well surprise, these big boys are not customers of RAYS. Apparently, this technology is not a secret. We called and spoke with a representative and discovered they had already severed ties with Raystream and will no longer do business with them.
The second is Laterna Magica located in Germany. We called and left several messages, stating that we wanted to find out more about RAYS video compression technology and how effectively it was working for them.
We were clear in conveying that we were considering RAYS as a potential investment and thought that speaking with a client like Laterna, named by RAYS on their website , was a good start.
We did not receive a call back. Our last attempt was successful in getting in touch with the CEO, who would not comment regarding their relationship with Raystream. We take this to mean free of charge. Is this why there is no revenue stream? RAYS management should be advised to put that money to better use by spending capital to develop its market and customer relationships.
We find this unbelievable. RAYS is not even hiding the fact that it is essentially as we see it, pumping its own stock. The original change of control filing mentioned earlier in our report says nothing else about Unlimited Trade Inc , but we will learn though some subsequent filings on September 23, that it is an offshore entity. Before the September 23 filing, an iHub user posted the addresses associated with the domain unlimited-trade.
We also learned that Unlimited Trade Inc. To be more precise, there is no entry about Unlimited Trade in the German Company Register , and the address above is a virtual office — not the first one that we will reference in this story. Looking at the Panamanian Company Register , we have more luck in finding some interesting information. The company was created on October 5, and the following persons are its officers or more likely straw persons :. The name of Gekko Industries came into the public eye in relation with one of the most successful pump-and-dump promotions of the year : Lithium Exploration Group Inc.
In looking at the Html code of any Raystream web page, there was a small piece of commented code that referred to LEXG. According to the disclaimer, the campaign was financed by Unlimited Trade. On November 22, , Go Daddy suspended the domain Smauthority. Since that alert until the end of November , they released 8 announcements on Business Wire with a lot of not-so-detailed claims or announcements. Regarding the office in Texas, it is only 1. But this time from Regus. OB is a cloud computing company.
Here are some recent actions by the SEC. Washington, D. The Commission charged Bremerton, Wash. Around the same time, Hew-Len issued nine press releases over a nine-week period hyping the company. Among other things, according to the SEC, the press releases made false claims about contracts with large customers, fraudulently touting millions of dollars in potential revenues.
Since the late s this Castle has belonged to the German entrepreneur Tan Siekmann and his parents. Information on Safe-Com is scarce, but its website, Safe-Com. The B2B model targets advertising and marketing agencies, content delivery and distribution networks, online video properties and telecommunication companies as well as other Internet or mobile online video businesses. We are creating a win-win situation for our B2B clientele by sharing our vision to deliver an unparalleled viewer experience at a much lower cost.
Raystream's compression technology breaks through the bandwidth barriers that cause upload and buffering issues by drastically reducing the size of HD video files by up to 90 percent, with an average of approximately 70 percent, and with no loss in clarity or quality. Raystream's market-leading conversion and streaming platform supports p and p HD resolution videos over standard Digital Subscriber Lines DSL , as highlighted in this short video clip www.
Further, the study states that by , as much as 90 percent of Internet traffic will be video data. Raystream's video compression technology is a true game-changer.
Gone are the days of waiting for a video to load, then being unable to enjoy its content because of frequent stops and buffering. Gone are the days of prohibitive bandwidth costs for online video content providers.
Benzinga does not provide investment advice.
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