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Show 2B The Sail Luke Tribune, 12, 1986 Sunday, January Experienced Investors in Utah Penny Stocks Know the Players only a small amount of money, letting the promoter get control of a large percentage of the outstanding shaies at a minimal expense "When you get into a they don't have to answer to anyone," Mr Cannon says "There's a lot of room for problems with those small offerings." Continued From 1M gives t lie promoter stock The stock a promolei receives when he lakes a company public is restricted and cannot be sold for two years and then only in small portions tree-tradin- under security regulations When a person sells or gives a pin lion ol Ins slock back to the promoter, he signs the certificate and the slock becomes what is called "street stock." Mr. Griffin says tracing the buying and selling of street stock is very difficult Many of the stocks prune to manipulation are self underwritten -the promoter, rather than a brokerage, sells the shares when the company goes public. usually raise When a brokerage takes a company public, there are guidelines set up to ensure the stock is distributed widely, he says In a a promoter can sell the stock to friends and relatives "Lists of people are very valuable to promoters." Mr. Griffin says The source who has done several box jubs says that each promoter has enough people on Ins list that different people can be Used on different deals. Getting control of most of the uut- standing stock is the first step: the next is to make money A promoter will get a broker to and he might give quote his stock the broker some stock or cash under the table, sources say. Because the promoter controls the supply, the broker knows he will not have to buy any stock, a source says Because the broker knows no stock is for sale, he can begin moving the price of the stock upward. The promoter also may promise to take any stock the broker buys. "So you have a stock selling for a dollar and the only reason the broker can quote that price is that none is for sale," the source says. "The price has been established by an artificial lack of selling and an artificial lack of buying." Stocks can be manipulated without a broker, Mr. Cannon says, but having the help of broker makes it easier. Another trick a promoter can use to increase the price of a stock is to orchestrate sham transactions -buying and selling the stock to himself through nominees. This is culled "churning." A promoter will tell a nominee to buy the stock at a price higher than what it is being quoted and tell another nominee to sell tne stock at that price. The promoter is out of the commission. but he has created the illusion that there is a market for the stock at a certain price. "The idea is to engage in transactions that indicate the price of the stock is going up." Mr. Griffin says. The stock's price begins to increase weekly, from 10 cents to 25 cents to 5U cents to 87 5 cents a share. Brokers - around the country start noticing the slock s price is increasing. Meanwhile, the promoter is touting the company's profitable future. "It looks like the stock is hot. The brokers tell their clients this stock is starting to move and that they may want to get a few shares," the source says. "There's a bunch of dumb people in East Orange, New Jersey, who will buy this stuff from the schlock houses near Wall Street." The expression that "a lot of buying is coming in" is an indication the public is getting interested in tne stock, another source says. Once interest in the stock begins to mount, a source says, the promoter may ask a broker to have his friends in other brokerages to start trading the stock and have iheir account executives begin promoting the stock n TV Stars Light Up Deer Valley's Slopes, Bring Gold to Special Olympic Coffers i By Teri Gomes By Tom Barberi Tribune Correspondent - "I AM NOT D.B. COOPERl. felt compelled to get that off my chest, up front, as there sec ms to be a rash of confessions of late from people who insist they're the infamous air pirate, skyjacker, To date some 90U legend folks have claimed, for various rea D.B. the latest is some sons, to joker out at the Point who decided to spice up an otherwise slow day in the joint s can devote no more than of a page. . And when they have a bucketful of facts on this silliness, they can look into the military's need to have 22 pages of specs for a mouse trap, and 16 pages for a plastic whistle???9 "I THINK I SHALL NEVER SEE ANYTHING AS UGLY AS A CONCRETE TREE. . . I dont know if that's as poetic as the original but have you seen that thing sprouting out of the western desert on your way to pay your Nevada taxes???? . . For who knows what reason, a Mr. Karl Momen spent three years of his life and over a million bucks creating this cement tree with brightly colored balls on its branches, and gave the whole thing On behalf of the stale to Utah of Utah I would like to say thank you very much, now where can I I feel like I did when I return it! was a kid and would get a bow tie as a gift from a distant relative who meant well but was totally misI must guided in the selection admit that I am at a loss that the environmentalists in our midst didn't come unglued but maybe they felt the paving of the Burr Trail was a more important cause n Big Bens for the clothes and make us some laws . They haven't event got to town like worms on a sidewalk and, yet after a bad rain, are starting to come out with some silliness that is guaranteed to keep us in stitches for the next 45 days . . .The first of these to hit the news is a proposal from Cache County Rep. Evan Olsen, that would ban the sale of beer at any business that sells gasoline two-third- 1 . sky-dive- ... LEDGE ALERT, LEDGE Lock up your wallets ALERT!. and stash of hot cocoa and peanuts - the Legislature is coming to town It's time to change the b-- . . . Sunday-go-to-mee-ti- . . ... The logic, or lack of it, from is, he thinks, it's safe to assume that most people who buy a of beer when they buy gas. plan to drink some of that beer along the road . . . Following this line of thinking, and I am being generous in calling it thinking, shouldn't we assume as Evan does, that anybody who drives to a superk of beer market and buys a will drink some of it along the road, so we should ban the sale of beer to anyone who goes to the supermarket in their car Or maybe we should make a rule that if you buy beer at one of these convenience stores, you won't be allowed to buy gas at the same time with the thinking that you will probably run out of gas before you become impaired in driving by what you have consumed behind the wheel. six-pac- k ... six-pac- This thing is titled "Utah MetaI phor" thought a better metaphor for Utah might be a can of 3.2 beer with a torn, losing stub from Wyoming Downs stuffed in it Actually when you see that thing out there your first thought is either it is the worldwide headquarters of Toys R Us or it's a Union Oil station. ... ... . . . IT'S 1(1 STUFF . Using the "dramshop" logic, we could empty the county jail and the Point in a matter of hours. .Obviously someone else was responsible for their beIf you want to get out of havior. jury duty, just wear a bow tie Attorneys traditionally avoid putting anybody wearing a bow tie on a jury because they believe the wearer is not likely to be moved by sound argument O CLOCK, DO YOU KNOW WHERE if . Well, YOUR SENATOR IS? . . . your senator happens to be Orrin Hatch, you might check China or points east . Sen. Orrin. along with four other Republican lawmakers and their wives, are on a junket at taxpayer expense on " what is being called a I think Orrin and the trip rest could have saved us all a lot of money if they would have spent their time trying to find some facts about why the Pentagon specifications for a holiday fruitcake take up 18 pages, when the Joy of Cooking . . ... . . "fact-finding- ... . Evan ... BUMPER STICKER . Liu rbcri ni n ( Tun boo rd on K.W.L .oo Monthly ihrmiiih I ruinii t I Hill III III fj HARK CITY David Hall. Ogden. finished the ski race and said he had won. For the Special Olympian involved in the Steve Garvey Celebrity Ski Classic held Saturday at Deer Valley, the winning is ' . "The promoter says. 'We've got an issue that has to be traded now. If you buy so much, we'll give you so much." a source says, adding. There are a million varieties of this." The idea is to get the public to start buying the stock. This creates a marg ket for the stock the promoter controls through his nominees. The promoter now can start selling that stock at a vast profit. free-tradin- slopes. The women were joined by Robert Walden of "Lou Grant." and A promoter who has bought 100.000 shares at 5 cents a share through his nominees and sells 100.000 at 50 cents a share picks up $45,000 less commis- twenty-celebritie- ly skiing. This is a ski resort town." said Mr Garvey, "and it made more sense to focus on having a ski event." Garvey admitted choosing Park City for the event was related to more than the fact he had a home here. "I played my first pro game here." he said, adding. "I have a warm spot for the area." This year, as part of Mr. Gare vey's plan for the Classic. the activities are being filmed by the sports network ESPN. The show is slated to air Jan. 31. Awareness for the mentally retarded and for Special Olympics programs in general that is generated by that kind of media coverage is important to Jim Murphy. long-rang- sions. An investor in the penny market can make money while the promoter is creating that demand and before the promoter begins unloading his stock. -- director of the Utah Special Olympics program. "Last year, the International Special Olympics Winter Games that were held here in Park City-puSpecial Olympics on the lips of everyone in the state. It's difficult to keep that kind of momentum going. Events like this one show we re still alive and kicking." This year the state winter games will be held in Park City Feb 28 and March 1. "Jim Murphy tells me events like this go a long way in the development of the Special Olympians." said Russ Veenema. director of marketing for Deer Valley. "We like the exposure, of course, of having the event filmed for ESPN and the rest of the merit. i coverage, but mostly we re glad to be helping the athletes " The resort donated all the race-sitfacilities and personnel for the event along with hundreds of lift e spokesman f,,r the liomosi i, ,, ml, s,,,j t too. felt the ,S ; no photo was in pool t gave a negative put ti ay a ot hniim-- i xiu Mr Stoddard s.od Ills eluli w ill n oiu'ot ' ,,i u a; pi;Mirai"iis and w.iiHi oi fuilla Stoddard ' ol whoio so, si bare-cheste- ire-la- o V- - .S II Ot olen-iV- i a lie si; nation at IT' tail mat el la i ii-'- i j ii o aza-- t But in- said, there arc people in the group wrh who are adamant vetv mi ong opinions people " lv oppusrd to homosexuals All Stoddard said he is personally unuppused to a lev ci takes dace in bedrooms." But lie '1 l,t ua bird is .. social responsibility how we onduct out selves in the public eye " m-- i spajd.ird said his niece and nephew iagcd H) and t: brought home a copy of the .Stulesmou and wanted to know what a homosexual was I m eoneerned with how they have iliiidM-ia is up subject better left for glow Homosexuality when tin v can understand it " Mi I purposes ol the club. M; "explore a little deep r is ,.y throwing its cards right now wc allow U hat is toiuoi row s norm In add, i am to the staled ho wants to i V, hat w to I" lbs. inisa trend toward homosexual-iin voimg ponpU- similar to previous anil n a nl rut ho "In p ues and pun hi t ' iv . .e's-- at Ill'll again M siii!'llile and legally act plable l"t groups ale i,o vv ,oii glstel ed w h t hi ted Students of I tali State I liivet'Cv mim u H, Members of the Gay Lesbian Alliance who tin- lirst meeting of the heterosexual group i hat ,u terized them as a "hate group." Mr Stoddard said his group is not a hate gruup neither ate they "radical, extremist or a bunch ot thought i Once a promoter begins unloading the stock he controls through nominees - Your talking about a guy with millions of shares under the name Etna Jones in Midvale a source says the stock's days arc numbered. gling. "It was really fun to the celebrities." he said. In fact. I just met Linda Lavin. you know she played Alice on that show. 'Alice.' " high-flyin- Steve Garvey Classic can aci I., r i . i um-plis- h lba.d a III nd loWad lloinoseXIlalll mild bo mu diopG involved than previous fiends "ll could bo very dramatic and have a broad effect on v i. : He sard the club also seeks answets to many questions about the spread of AIDS. "Docs society-hava responsibility to stop it. does government, do individuals" I point at homosexuals because 75 percent of the spreaders of the they comprise disease " Abuut providing counseling to homosexuals who want to change their sexual preferences. Mr. Stoddard said. "I believe it's not your everyday, activity I think it is a learned antisocial belijvtur He said many studies show homosexuality is nut genetic, rather that a "traumatic youth experience' is the main cause Mr Stoddard, who has not attended a meeting ot a the Gay Lesbian Alliance, said he "might" go meeting "to see what they're up to." c Is there a possibility the two groups might learn from each other in the future? "We don't want war. wc want mitigation. Mr Stoddard said "I'm nut hard to get along with, nor is the group." The heterosexual group meets monthly and has a membership of about 25, The Gay Lesbian meets weekly, attracting about 25 people Alli-atu-- e of the Darren Hast name withheld), homosexual group, said their next meeting wilt feature a documentary about San Francisco City Supervisor Harvey Milk the gay activist who was assassinated hv Dan M lute Night. ,n v itii s white members to include friends will bring a "straight" an- tin tul to a meeting and a meeting where "some one knowledgable will tell us about AIDS and dts " cm 'uff uid. ki', Drmi The Shell Game. of Poll Respondents Favor Seat Belt Law in Utah society. We want to provide information 'ho both sides - we want to advocate our side. It's time we heterosexuals1 tell someone 'I like it Upcoming g "Catching this is incredibly difficult." Mr. Griffin says. "There is no such thing as a generic manipulation It's done differently each time. "The Utah penny market, by and large, exists to line the pockets of the promoters." Mr. Griffin says. Ms. Lavin told David Hall she had a photo of him and planned to send it to him. The simple exchange between those two celebrities was the essence of what Special Olympics programs liko the Tomorrow Student Clubs and Organizations, and recognized as official clubs said Randy Jensen, assistant director of student services as USU. who oversees club activities University Hubs do not receive any funding from CSC. but do get tree use of university buildings for meetings and free advertising in the i "That is the key: not to be greedy." another source says. "Usually, once the stock price goes down, the recovery rate is very low." tickets for participants and their guests. For competitors like David Hall, the sunshine and the great snow was a good way to spend the day. but excitement was in the min- t M By Stephen Hunt Tribune Correspondent The Gay Lesbian Alliance and llet LOGAN crosexual Allium c. two contruvei Mjl student clubs at Utah State University, aie now officially-recognizeby the university The Gay Lest lan Alliance is a support gruup for homosexuals that lias met weekly on campus since October 1985 Club goals include 'educating the public that we are normal people' and providing - then friends i mottunal support fur homosexualand families, according to club representatives The Heterosexual Alliance advocates the ad vantages of being heterosexual ai cording to the club president They also plan to pt ovule into! motion about AIDS and will attempt to pruv ide counselors for homosexuals who wish to eliange then lifestyle The Heterosexual Alluinee began meeting in .No senes veiiiber l'JHj in response to a thiee-paiabout the homosexual group that appeal ed ill 'a in h .SloIesMoin. the uinveisity student newspa-pi-The set les began vv I, a It on page photograph of two males tn a partial embrariHeterosexual Alliance president Nv!o stoddatd a tie SOite-student said "inn got me rolling lie said puhiieat mn ol the set les was "really out of line" and lat king in foi e " I "The problem is the promoters are such a greedy bunch that they seldom hold off until there is a legitimate market." a source says. "And the stock gets bombed," a source says. "The guy who makes money is the one who sells out before the promoters." he adds. Richard Dean, left, from MacGyver, joins Special Olympian Kenny Byington, Ogden, at Deer Valley Ski Resort, Park City, during celebrity fund raiser for Special Olympics. USU Recognizes Homosexual, Heterosexual Groups di Tribune Stott Photo bv Ten Gomes TV show Two-Thir- t y the competing. For David Hall, and for hundreds of other mentally retarded athletes throughout the state, celebrities gathered here this weekend hoping to raise around $25,000 for the Utah Special Olympics organization. Glossy names from the entertainment and sports arenas were brought to town by the Steve Garvey marketing group to participate in ski races, auctions and dinners that will raise funds for the Special Olympics. Not that slopes of Deer Valley need dressing up, but this weekend the likes of Lynn Holly Johnson of "Ice Castles" fame; Catherine Bach from "The Dukes of Hazard"; and Mary Hart of "Entertainment Tonight," cut smooth turns on the Wayne Rogers from "MASH ': and Charles Haid from "Hill Street Blues. In all, more than donated their time and talents for the Olympians. This is the third year Mr. Garvey of San Diego Padre's fame, has put on a celebrity event for the organization. Mr. Garvey owns a home in the Park City area and is a frequent visitor. The first year, the event was a tennis tournament in the winter. Last year there was a combined effort with tennis and skiing. This year, after polling participants from last season, the event is sole- demand, they start bleeding their stock (controlled through nominees! out into the market. And the smart promoters bleed it into the market," a source says. "You start filling the demand with your supply. And you pocket the money. If the deal goes right, people are legitimately interested in the stock. If there is enough interest, a promoter can lay off his stock without hurting anybody." The catch is some people will start selling their stock as the price increases For the deal to work well, a promoter must be able to buy stock periodically to support the market price. The promoter who has money can support the stock." a source says "The guys w ho arc making money in the market have got the cash to keep your deal out of the toilet." Brokers often are asked. "Whus hot on the street right now?" n use other people's Promoters money, though to support a stock's price. A promoter can have a nominee sell $10,000 worth of stock the trader that lie has placed an order with another brokerage for $10,000 of the stock, a source says. This assuies the trader there is a market for the stock. By paying double commissions, the nominee can execute a day trade and pick up a check that day. The promoter, though, does not have to pay for the stock he bought for seven days This gives the promoter $10,000, less commissions, for a week that can be used to support the stock's price, the source says. Eventually, the promoter can sell the stock he controls through nominees and recoup the money he has spent on commissions Another trick used to support the price of a stock is for a promoter to give stock to a friend who buys stock on the open market. while-promisin- in IYrmit Caiiim Merlin ' U ,!r "V.. "What they do is i reate real demand. When t.iey start getting that ds A coalition of organizations advocating a mandatory motor vehicle seat belt law for Utah distributed results of a statewide opinion poll Saturday indicating nearly s of respondents favor enactment. The poll, commissioned by the Utah Safety Belt Coalition, tabulated 42 percent strongly favor and r another 21 percent somewhat a proposed law requiring the driver and front seat passenger to buckle up. Sixteen states, including California. Illinois, New York and Michigan. have now passed similar safety bell laws. A proposed bill, sponsored by Hep. Robert H. Garff. is to be introduced in the Utah Legislature convening state. The survey asked some other related questions, and the results demonstrate "strong support" for passage of a safety belt law this session. Sen. Pugh said. two-third- Monday. The coalition pull indicated percent of Utahns somewhat 1U op- pose and 21 percent strongly oppose a mandatory seat belt law Five percent said they didn't know, Utah pollster Dan Jones and Associates conducted the poll between Dec. among 600 respondents, a standard sampling calculated to measure opinion statewide within a 4 percent error range plus or minus, of the percentage results Sen Warren K Hugh. ake City, coalition said the survey results were essentially the same in all . cas ol the -- There were 89 percent in the poll who said they believed a significant number of lives would be saved if everyone wore safety belts. And 73 percent said they would wear a seat belt most of the time if Utah had a safety belt law. Nearly 50 percent said such a be "very strictly enforced." The proposed Utah law. which is endorsed by Gov Nurm Bangerter. would make wearing seat belts in the front. seat a secondary offense, charged only after a motorist is stopped for another offense. Violation carries a $25 fine, but no negative points charged to the driver's record. No citations would be issued during the first six months the law is in effect, following an campaign to educate motorists on the law d A variety of private and public organizations endorse the coalition. ranging in diversity from the Utah Girl Scouts Council to the Utah Retail Merchants Association The coalition includes hospital ami doctor associations, organized motorists, insurance and highway-userelated groups, public utilities, and the Utah Automobile Dealers Association i |
