Post by jannikki on Jun 2, 2006 22:14:16 GMT -4
[November 02, 2004]
Caneum Sends Shareholder Letter Concerning Naked Short Selling
NEWPORT BEACH, Calif. --(Business Wire)-- Nov. 2, 2004 -- Caneum, Inc. (OTCBB:CANM) is pleased to release the following letter to shareholders reaffirming our Company financial targets for 2004 and advising our shareholders about suspicious trading activity. We are beginning to realize notable sales traction with an improved opportunity to sign larger contracts. We have closed the books for the third quarter now and will announce the results and the forecast for the balance of 2004 in early December.
Dear Fellow Shareholders,
On July 2, the OTCBB approved Caneum, Inc. for quotation under the trading symbol CANM. This was an important step in our plan to bring liquidity to our shareholders and take advantage of the exposure and financing alternatives available through the public markets.
As shareholders you all own stock, and many of you hold the actual stock certificate representing your shares, which we hope you will continue to do. Some of you may not realize that paper certificates even exist, but they do, and it is important for you to realize why it is beneficial to our Company for you to continue to hold your shares in certificate form.
Companies and shareholders have an electronic report in the form of an account statement or shareholder list that reflects stock ownership. The Depository Trust Company (DTC) is charged with the responsibility of ensuring that a public company's electronic report of stock ownership corresponds to an actual paper stock certificate representing actual shares owned. This is no easy task, given various factors which include transaction volume and daily trades, let alone the fact that a single share may trade hands multiple times in any given hour. The correlation of electronic certificates to paper certificates arguably becomes almost an impossibility. However, maintaining your stock in electronic form can allow for the introduction of the practice of naked short selling, which negatively impacts shareholder and market valuation.
While a few of you may understand "naked short selling" practices, many of you may not be familiar with the strategy. Naked short selling is simply the short sale of a share that does not exist (as opposed to "short selling" where the actual shares do exist) in hope that the price will go down, allowing the naked short seller to find and then buy stock at a lower price to fill his short order. In the event of a naked short sale, there are more electronic certificates than paper certificates until the naked short seller finds and buys stock to fill his short sale. If the stock price goes up, the naked short seller, as the normal short seller, loses money, just like you may lose money if you bought stock and the price goes down.
Short selling, within certain rules, is not illegal; naked short selling is illegal. Additionally when any short seller coordinates his efforts with posting false claims about a company's operations on the online bulletin boards in order to benefit from the false information, then a law has been broken. Such a short seller is attempting to manipulate the share price down in order to benefit from his short sale.
Some short sellers never intend to buy stock to fill their short sales. Technically, to sell a share short a share must first be borrowed so that in the event the share price goes up, the borrowed share can be collected to fill the short order. Naked short sellers often take advantage of unscrupulous market makers, or foreign brokers outside the close scrutiny of United States' regulators to borrow against shares that do not then exist in order to make short sales.
Our Company is making every effort to thwart naked short selling and to promote a stable market for our shares to reflect our performance. What you can do to help is to request that your broker send you the paper certificates for your stock. This will force a reconciliation of paper and electronic certificates and uncover any open short positions so that regulators can deal with the naked short sellers accordingly. Do not let your broker deny you the right to "order out" a stock certificate. You may find resistance from your broker when you make this request. You have the right to receive paper certificates. Do not take "no" for an answer. Basic economics tells us if supply is plentiful, then the price declines. However, if through an electronic share reconciliation we discover that the supply is truly artificial and that actually a scarcity of stock exists, then basic economics will work to increase the share price.
Please do not hesitate to contact Jason Daggett with any questions regarding a request for a paper certificate. We also want to hear about any resistance you encounter in your request.
Thank you for your ongoing support.
Alan Knitowski
Chairman
About Caneum, Inc.
Caneum, Inc. is a global provider of business process and information technology outsourcing products and services across vertical industries including technology, energy, government, transportation, financial services, education and healthcare. The company provides a suite of business strategy and planning capabilities to assist companies with their "make versus buy" decisions in the areas of data, network, product development, product maintenance and customer support and fulfills its services in-house, on-shore, near-shore and off-shore depending on the business goals and objectives of its global customers. In parallel, Caneum is opportunistically pursuing accretive acquisitions within its core outsourcing product and service suite in order to broaden its core capabilities, expand its customer base and supplement its organic growth. Caneum, Inc. has executed a definitive agreement to acquire Pipeline Software, Inc., a leading technology services organization that provides high-value business solutions to clients in the technology sector. Founded in 1997, Pipeline's services include outsourced information technology infrastructure management, e-business application development and integration services.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include but are not limited to the risk factors noted in the company's filings with the Securities & Exchange Commission, such as the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products and enhancements by competitors; the competitive nature of the markets for Caneum's services, concentration of revenue from a small number of clients, the loss of which would have a material detrimental effect on the business and revenues generated by Pipeline; Caneum's ability to gain market acceptance for its services and products; the company's ability to attract and retain skilled personnel; and the company's reliance on third-party suppliers.
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Caneum Sends Shareholder Letter Concerning Naked Short Selling
NEWPORT BEACH, Calif. --(Business Wire)-- Nov. 2, 2004 -- Caneum, Inc. (OTCBB:CANM) is pleased to release the following letter to shareholders reaffirming our Company financial targets for 2004 and advising our shareholders about suspicious trading activity. We are beginning to realize notable sales traction with an improved opportunity to sign larger contracts. We have closed the books for the third quarter now and will announce the results and the forecast for the balance of 2004 in early December.
Dear Fellow Shareholders,
On July 2, the OTCBB approved Caneum, Inc. for quotation under the trading symbol CANM. This was an important step in our plan to bring liquidity to our shareholders and take advantage of the exposure and financing alternatives available through the public markets.
As shareholders you all own stock, and many of you hold the actual stock certificate representing your shares, which we hope you will continue to do. Some of you may not realize that paper certificates even exist, but they do, and it is important for you to realize why it is beneficial to our Company for you to continue to hold your shares in certificate form.
Companies and shareholders have an electronic report in the form of an account statement or shareholder list that reflects stock ownership. The Depository Trust Company (DTC) is charged with the responsibility of ensuring that a public company's electronic report of stock ownership corresponds to an actual paper stock certificate representing actual shares owned. This is no easy task, given various factors which include transaction volume and daily trades, let alone the fact that a single share may trade hands multiple times in any given hour. The correlation of electronic certificates to paper certificates arguably becomes almost an impossibility. However, maintaining your stock in electronic form can allow for the introduction of the practice of naked short selling, which negatively impacts shareholder and market valuation.
While a few of you may understand "naked short selling" practices, many of you may not be familiar with the strategy. Naked short selling is simply the short sale of a share that does not exist (as opposed to "short selling" where the actual shares do exist) in hope that the price will go down, allowing the naked short seller to find and then buy stock at a lower price to fill his short order. In the event of a naked short sale, there are more electronic certificates than paper certificates until the naked short seller finds and buys stock to fill his short sale. If the stock price goes up, the naked short seller, as the normal short seller, loses money, just like you may lose money if you bought stock and the price goes down.
Short selling, within certain rules, is not illegal; naked short selling is illegal. Additionally when any short seller coordinates his efforts with posting false claims about a company's operations on the online bulletin boards in order to benefit from the false information, then a law has been broken. Such a short seller is attempting to manipulate the share price down in order to benefit from his short sale.
Some short sellers never intend to buy stock to fill their short sales. Technically, to sell a share short a share must first be borrowed so that in the event the share price goes up, the borrowed share can be collected to fill the short order. Naked short sellers often take advantage of unscrupulous market makers, or foreign brokers outside the close scrutiny of United States' regulators to borrow against shares that do not then exist in order to make short sales.
Our Company is making every effort to thwart naked short selling and to promote a stable market for our shares to reflect our performance. What you can do to help is to request that your broker send you the paper certificates for your stock. This will force a reconciliation of paper and electronic certificates and uncover any open short positions so that regulators can deal with the naked short sellers accordingly. Do not let your broker deny you the right to "order out" a stock certificate. You may find resistance from your broker when you make this request. You have the right to receive paper certificates. Do not take "no" for an answer. Basic economics tells us if supply is plentiful, then the price declines. However, if through an electronic share reconciliation we discover that the supply is truly artificial and that actually a scarcity of stock exists, then basic economics will work to increase the share price.
Please do not hesitate to contact Jason Daggett with any questions regarding a request for a paper certificate. We also want to hear about any resistance you encounter in your request.
Thank you for your ongoing support.
Alan Knitowski
Chairman
About Caneum, Inc.
Caneum, Inc. is a global provider of business process and information technology outsourcing products and services across vertical industries including technology, energy, government, transportation, financial services, education and healthcare. The company provides a suite of business strategy and planning capabilities to assist companies with their "make versus buy" decisions in the areas of data, network, product development, product maintenance and customer support and fulfills its services in-house, on-shore, near-shore and off-shore depending on the business goals and objectives of its global customers. In parallel, Caneum is opportunistically pursuing accretive acquisitions within its core outsourcing product and service suite in order to broaden its core capabilities, expand its customer base and supplement its organic growth. Caneum, Inc. has executed a definitive agreement to acquire Pipeline Software, Inc., a leading technology services organization that provides high-value business solutions to clients in the technology sector. Founded in 1997, Pipeline's services include outsourced information technology infrastructure management, e-business application development and integration services.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. The company wishes to caution readers that a number of important factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include but are not limited to the risk factors noted in the company's filings with the Securities & Exchange Commission, such as the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products and enhancements by competitors; the competitive nature of the markets for Caneum's services, concentration of revenue from a small number of clients, the loss of which would have a material detrimental effect on the business and revenues generated by Pipeline; Caneum's ability to gain market acceptance for its services and products; the company's ability to attract and retain skilled personnel; and the company's reliance on third-party suppliers.
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Copyright 2006 Technology Marketing Corporation (TMC)
www.tmcnet.com/scripts/print-page.aspx?PagePrint=http%3A%2F%2Fwww.tmcnet.com%2Fusubmit%2F2004%2Fnov%2F1089727.htm