FT. LAUDERDALE, FL--(Marketwire - November 14, 2007) - RAPID FITNESS, INC. (PINKSHEETS: RPDI), a publicly traded company currently on the Over the Counter, announces today its company update and shareholder request.
Rapid Fitness, Inc. has made the corporate changes:
-- Founder Anthony Mellone as CEO, moved on to new ventures
Internationally.
-- Mr. Mellone has revamped the corporate structure and, concurrently, is
moving forward with its business plan and corporate restructuring and made
acquisitions, with plans to add more structure and acquisitions to the
company's bottom line.
-- The company is looking for a new Director and officers Geoffrey
Grosso's expansion of the franchise and investment seminars.
-- "...The gist of naked shorting is simply, when a hedge fund [or other
"Seller"] pretends to short a stock (I say, "pretends" because it is stock
that it does not really own, and which it does not really borrow). It sells
those made-up shares into the marketplace, and collects the money just as
though it sold real shares (note that this is "counterfeiting," more or
less, though with electrons rather than paper). If it is stock in a small
company, and does not trade with much liquidity, then the hedge fund can
keep "selling" its made-up shares and drive the stock price down to
wherever it wants it to go.
-- In a healthy market, the check-and-balance on shorting would simply be
the number of shares that are available for short sellers to borrow and
sell. Since there would only be a finite number of shares to borrow and
sell, there would be only a finite amount of pressure the shorts could
bring upon a stock (and it would be offset by buying pressure holding that
stock up). But if naked shorting is allowed, then there is no limit on how
many bogus shares hedge funds can create. Thus means they can drive a
stock's price down close to $0. At the very least, this practice destroys
people's savings (remember, the shorts make money by driving the stock
down, whereas any stockholders lose that same amount of money as the stock
price drops). Some folks believe companies have been driven out of business
by this, because they cannot raise new capital once those stocks have
cratered badly enough.
-- The key is this: if given the right to create an unlimited number of
new shares, essentially out of thin air, not limited by the number of
shares "in the borrow" as legal shorting requires, these hedge funds can
always drive the price down and always cover for a profit. That is why
it's, "illegal."
Rapid Fitness provides fitness and health services to women. Its services include circuit training, indoor tanning, supervised child care, group exercise classes, yoga, pilates, aerobics studio, personal training, nutritional programs, rapid fitness learn