Well, here's my thinking. The last reported O/S we have is May 31, at 5.1B shares, with 10B authorized. Since then, we have seen a 1.2B share volume day in which they were dumping in 90MM shares blocks at a time, plus another 800MM share dumping day, plus a steady stream of 60MM shares dumps (like today) up to 150-250MM as well. All in the past two or three weeks.
Obviously not *all* of that volume was new shares hitting the market, even though almost all of it was at .0001. You have to figure there are some big retail holders seeing the signs and taking losses, but the majority of it is most likely noteholders converting debt at .000035-.00005 per share and then selling at .0001 for a cool 100% profit. Then you have to factor in the double prints from dilution block selling (i.e., the 6-digit cross trades and after-hours trades that come in at .000098 -- i.e., the average price the MM was able to sell its client's (noteholder's) block position for, minus the standard 2.5% or so block position fee). The effect being that on heavy dilution days with lots of block selling, the reported volume is effectively doubled from what was actually sold.
So, all in all, I'm estimating that since May 31, there have been around 1.4-1.8 billion new shares dumped into the market, leaving us with an O/S of around 6.5-6.9 billion, which in turn leaves about 3 billion shares left in the A/S. Now remember that there's still a week and a half to go in June before we get the updated O/S numbers, so I'm guessing that by then it will be somewhere in the neighborhood of 6.7-7.2 billion shares.
Food for thought.
Also food for thought, if the noteholders (who obviously know more about what is going on with the company than we do) are liquidating as fast as they can into any significant bid that develops, what does that say about the real prospects for this company going forward?
And no, it's not dilution to fund new operations. All this debt, by law at least, has to be aged at least a year to be converted and sold under Rule 144. To secure new funds for operations, as they obviously need to with only $3600 in revenues last quarter and no cash to speak of in the bank, they will have to convince a lender that there will be a bid to sell into a year from now. And that, IMO, means one thing: a reverse split. Or, as in the past, he'll just let the ticker rot on the vine once the A/S is maxxed out and then use his new ticker's stock to pay off the inevitable lawsuits from ISBG lenders. Circle of Alonzo Pierce's life it seems...
IMO this is an all out liquidation and run for the exits. Last time this happened here, the stock sat dormant at no bid for months before the miraculous run we saw in January and that, as it turns out, was all based on fluff and lies. But back then there were still only 2B or so shares in the O/S, and the ask at .0002 was like 250MM-350MM or so. Now there's gonna be more like 7-8B if they don't max it out at 10B altogether, and there were 922MM shares on the ask at .0002 at one point today. It does not bode well to say the least.
And, worth mentioning, the time before that when we saw this type of mass liquidation was at DKTS, when Pierce was moving behind the scenes to transfer Besado out of there and into ISBG (likely via a private LLC he set up just before it happened, much like the one he just set up in April here), all while still releasing PRs that the future would be very bright for the loyal shareholders who weathered the storm.
We'll see if things play out similarly this time around.
