All you Cipherloc bulls, I have great news for you. We have been told that shares are available IN SIZE at levels substantially below the current "market price". We were offered a block of nearly 10000 shares at $1.15 yesterday provided we took all of them. I was given the impression that a bid of $1.00 or more would be acceptable for an off exchange trade. These types of calls almost always are the result of someone having or often believing they have inside information.
The pink sheets can not absorb any size at all and the seller is desperate to get out.
Here's the bad news. Our family office is a long term client of little known consulting firm whose expertise is rating company management. They use a quantitative model which incorporates the company's financials and some portion of the rating has to to with composition of the board, stock performance relative to peers and many others. We asked them to do an analysis of Cipher Loc for us to compare their analysis versus the rather poor impression I noted a few months back. We have used this service for more than 15 years and while they are far from infallible, they saved us from disaster on more than one occasion.
While I am not allowed contractually to provide this analysis to any party outside our office, I can paraphrase their conclusion. CLOK management is in the bottom 3% of all companies in the database. They provide separate ratings for both competency and one for what they refer to as character. CLOK scores dismally on both.
OUr office hasn't sold a single share yet. I was told to "enjoy the ride". I feel very deeply for anyone who owns too much of this company relative to their net worth. The only ray of hope is a class action law suit. I doubt that such will come to pass and unless de la grasso is sued personally, there are no assets no value and no point in hoping that there will be a recovery.
If you feel like flaming me for telling the truth, which apparently very few of can deal with go ahead. Or, consider that this may have some merit. CLOK is one of the worst performing stocks over the last five years during which fortunes have been made. And, it is the worst performer in one of the hottest sectors. If CLOK's tech is so good, why wouldn't it be snapped up? It would be far cheaper to buy than create if it were legitimate. As I said a couple months back, this company has NO VALUE. I wish it were different. I'd prefer not be wiped out, but our expectation is no recovery. Our analysis of how to maximize value indicates that we would realize the most by donating the shares to charity and take the donation writeoff. IRS rules allow us to value the shares at their closing price on the day of the donation. However, I can't in good conscience stick a charity with a worthless stock.
Nothing would please me more than to be wrong. I once worked for SEC enforcement and saw similar situations many many times and they never worked out. I've seen so many lives ruined by management like this that if my words get even one person to think about this, do their own analysis and not spend their retirement eating cat food it will be worth it.
