MDNO...up 757% on nothing - could set up as mother of all squeezes if people started hitting it. It went through name change and should have opened at $1, but OS was sold at 0.02 while shareholders were waiting for their shares.
Read correspondence from management....
The mandatory exchange on October 16 of 1,000 MODR common shares for one new common share (MDNO) reduced the float in the common shares by 99.9%. In other words the entire issue of 1.2 billion MODR shares was reduced to 1.2 million MDNO shares, of which we estimate about 400,000 shares were available in the public float. In addition, shareholders received for every MODR share 100 Series B preferred shares (which have yet to receive a symbol). The preferred shares will be convertible at the rate of 100,000 preferred to 1 common upon payment of $1.00 per common share. Converting preferred shares is not required by shareholders, but it may become economically advantageous to convert as the company progresses in its business plan and the stock rises above $1.00.
This restructuring should allow us to achieve a higher price through greater visibility with potential investors and more trading interest on the Frankfurt Stock Exchange. We also wanted to give our current shareholders a larger stake in the company via the preferred shares.
The new common shares (MDNO) should have opened at $1.00 per share, but during the period of Oct. 17 - 26, an unknown entity (perhaps a market maker) sold for a few cents per share nearly the entire 1,200,000 outstanding shares of MDNO. We know this could not have occurred from current shareholders selling their shares because shareholders just began to receive their MDNO shares in their accounts on October 29, after more than one million shares had traded over the previous four trading days. We think these sales may have been naked short sales. After shareholders actually received their shares on October 30, they sold collectively only 3,000 shares in the past two days, which gives you an idea of the small selling interest.
Assuming that the unknown sellers will have to cover the short sales through "buy-ins", this short squeeze could result in the stock rising much higher than the $1 per share benchmark as they scramble to buy back the shares sold short. It is very possible that there were significantly more shares sold than exist in the MDNO public float.
Also, when the Series B Preferred shares start trading, all MODR shareholders should have 100,000 times as many preferred as common shares. Thus, even at the lowest price possible for the preferred shares of $0.0001, this could give other options for capitalizing on this unique corporate event.
