'Stock Shock': A Wake Up Call on the Market as a Whole

By Brandon Matthews

Satwaves received an advance copy of Stock Shock: The Short Selling Of The American Dream Friday. The first time I watched it was from my own perspective. Of course I am overly critical of myself. I think that’s human nature. The second time I watched it was as a Sirius XM (SIRI) shareholder. The third time was as a journalist who needs to write a story about the story. In my opinion, there will be three groups of people who oppose the film: Organized crime, The National Association of Broadcasters (NAB), and the Securities & Exchange Commission. Pardon me, did I just say three groups?

Writing a review may seem a bit biased on my part. As most know by now, I was interviewed on camera for the movie, and as it turns out I play a substantial role. In fairness to disclosure, I agreed to be named as a co-producer of the movie as well because I had facilitated many of the interviews that were done for the film. I have looked at the movie from many perspectives prior to writing this. I think my own perspective was made clear in the movie, with only an exception or two. My only disappointment lies in the removal of my explanation for blaming Michael Hartleib for causing much of the merger delay, which left the company vulnerable to exploitation from the likes of short selling hedge funds, Charles Ergen and John Malone.

As the movie progressed, it became less about Sirius XM and more about the stock market as a whole. The film features experts such as Martine Rothblatt, Susanne Trimbath, PhD, Bud Burrell, Wes Christian and bloggers such as myself and Tyler Savery. The movie I believe succeeded in its goal of explaining to the viewer the devastating effects of naked short selling on the American financial system as well as the disruption caused by the removal of the uptick rule. In fact, I believe it to be the highlight of the film.

I considered how Sirius XM itself would view the movie. I will tell you that there are a lot of positives which promote the company’s service, yet many negatives as the company does come under attack at certain times. In my opinion, the movie will in fact do the company more good than harm, as any negatives will be offset by the potential interest of new subscribers. There is no such thing as bad publicity.

I have personally made it my mission to forward copies to members of the U.S. Senate such as Ted Kaufman of Delaware, as well as major media including (if you can imagine) the Oprah Winfrey show. I don’t know much about the movie industry, but the films Director, Sandra Mohr should be exalted for bringing this issue to the forefront of debate.

It is my sincere hope that every American investor, whether or not they have ever invested in Satellite Radio, will invest in themselves by furthering their knowledge of the American Stock market. The unregulated hedge funds nearly succeeded in destroying America for personal profit, and continue to do so by selling counterfeit shares of stocks and bonds to unknowing investors. This movie can be a wake up call for the American investor to demand reforms at the highest levels of government.

Position: Long SIRI

Comments

[R A F:]

Excellent article, Brandon. I strongly believe reinstatement of the uptick rule is in the best interest of the investing public. A perfect example of questionable trading in the absence of this rule lies in the extensive shorting of SIRI, which now totals 175,742,764 shares on the Nasdaq. There is every reason to believe much of this has been manipulative trading, as the most recent increase in this short position of 28,384,065 in the two week period from May 14 through 29 was all accomplished within a price range that barely fluctuated (holding within a one cent range from .34 to .35 approximately 80% of the time). It is also highly likely that much of this shorting was on a "naked" basis, as it would be extremely difficult - if not impossible - to arrange the borrowing of this amount of stock given the current tightening of credit and fewer institutions willing to lend. This evidence strongly suggests a pattern of abusive and manipulative trading that is counter to the public's best interest. If the uptick rule had been in place, much of this rampant shorting would have been curtailed and it would have been easier for the SEC to enforce measures protective of the legitimate investing public. As the SEC is now seeking comments regarding the possible reinstitution of the uptick rule, it is to be hoped that better regulation of the practice of shorting will result.

Jun 15 07:36 AM

[Play:]

Uptick rule, due to massive automated trading, will not help. Abolishing naked shorts will help. Longs have to put up money to enter a position. Naked shorts have to put up significantly less. Further, naked shorting creates phantom shares of stock that distort the supply/demand curve to their advantage. IMO shorting should not be allowed unless the shares are "borrowed" before the position is entered.

Jun 15 10:05 AM

[peshu:]

John Melon.. Do something for this company & get rid of Mel

Jun 15 10:06 AM

[JamesPS:]

What kind of impact would there be is after viewing our own version of the DVD, we all sent them to someone in congress?

Jun 15 05:09 PM

[relmar2003:]

The trash can outside congress would be exceptionally full that day.Unless with each video you put a check in for 10000 dollars.

Jun 15 05:13 PM

[Mr. Stupid.:]

I just bought 20 copies going to give these out for christmas

Jun 15 06:46 PM

[User 359216:]

I look forward to seeing the movie. Will it be shown publicly or require a purchase? If purchase, when will it be available?

Jun 16 10:42 AM

[WMBANZAI7:]

SYMPATHY FOR THE SHORTS
(Sympathy For the Devil, Stones)
WilliamBanzai7

Please allow me to introduce myself
I'm a man of wealth and taste
Ive been around for a long, long year
Stole many a mans nest egg and faith
And I was round when Livermore
Had his moment of doubt and pain
Made damn sure that Madoff
Washed his hands and sealed his fate
Pleased to meet you
Hope you guess my name
But whats puzzling you
Is the nature of my game
I stuck around AIG
When I saw it was a time for a change
Fired the CEO and his SVPs
While Bernanke and Paulsen screamed in vain
I killed a bank
Was best friends with Hank
When the markets raged
And Sirius XM tanked
Pleased to meet you
Hope you guess my name, oh yeah
Ah, whats puzzling you
Is the nature of my game, oh yeah
I watched with glee
While your investment banks bleed
Fought for ten decades
To kill the paper they made
I shouted out,
Who killed Lehman, Bear and the GSEs?
When after all
It was you and me
Let me please introduce myself
I'm a man of wealth and taste
And I laid traps for banker troubadours
Who get fired before they reach Mumbai
Pleased to meet you
Hope you guessed my name, oh yeah
But whats puzzling you
Is the nature of my game, oh yeah, get down, baby
Pleased to meet you
Hope you guessed my name, oh yeah
But whats confusing you
Is just the nature of my game
Just as every banker is a criminal
And all the hedge fund thieves are saints
As heads is tails
Just call me trader Joe
cause I'm in need of some restraint
So if you meet me
Have some courtesy
Have some sympathy, and some taste
Use all your well-learned risk controls
Or Ill lay your trading book to waste, um yeah
Pleased to meet you
Hope you guessed my name, um yeah
But whats puzzling you
Is the nature of my game, um mean it, get down
Woo, who
Oh yeah, get on down
Oh yeah
Oh yeah!
Tell me baby, whats my name

Jul 02 03:34 PM

[Hephasteus:]

The first GREEN SHOOTS to come from this recession!! LOL

Sep 05 01:03 AM