GeckoSystems Intl. Corp. (GOSY)

[XenaLives]

I believe there are shorts holding air shares that will be in big trouble when GeckoSystems' balance sheet starts to firm up and the company moves forward on its business plan due to income from joint ventures in the next year. They are holding shares that they can't possibly cover. Why do I say this? Here's the DD that convinced me:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68533630

I am very enthusiastic about this company, both for its technology and its business plan, a plan that has a dual purpose:

- It wants to help the disabled and the elderly.
- It wants its stockholders to get a fair return.

from a Dec 2010 post:

Share Structure
Authorized 250,000,000
Oustanding 246,520,675
Float 53,522,405 -- Float is 22% of outstanding.


Market Value $4,374,405 a/o Dec 27, 2010
Shares Outstanding 546,800,675 a/o Jun 30, 2010 -- 24% of outstanding
Float 108,772,405 a/o Jun 30, 2010
Authorized Shares 600,000,000 a/o Jun 30, 2010

I'm going to estimate that five million shares were sold between October 28 and December 21 and another 10 million between December 23 and December 31 based on volume sold. I will assume that five million went to employee compensation. This is just a ballpark but I think it's reasonable.

If you assume an average price of .008 (based on the resistance level on the candles) that's $120,000 the company raised for operations in the next year. A reasonable amount IMO.


A/S: 825,000,000 a/o Dec. 31st 2010
O/S: 537,050,695 a/o Dec. 31st, 2010
Float: 128,864,235 a/o Dec. 31st, 2010 -- 24% of outstanding
Market Value: $4,374,405 a/o Dec 27, 2010

Share Structure
Market Value1 $2,330,803 a/o Sep 13, 2011
Shares Outstanding 466,160,675 a/o Jun 30, 2011
Float 128,864,235 a/o Jun 30, 2011 - 28% of outstanding.
Authorized Shares 825,000,000 a/o Jun 30, 2011
Par Value 0.001



What IS NOT reasonable is what happened in the next two weeks. Another 9 million shares traded. Where did those shares come from?

They didn't come from the company. There was no significant change in the float in June of 2011 and the outstanding had gone down due to a share buyback.

I can only think of one source for that volume - NSS.

On March 21 support at .008 (showing on the candles below) was broken. See the above DD post for a further discussion of how the stock traded during this period of time.

If you look at the DD post above you will see my reasons to believe that very few actual shares were sold besides what the company sold. Investors were not getting shaken out on bear raids.

 
  
 The new ticker starts trading -  5 million shares sold 
 Volume is more than double what I think the company sold 
  Some of the volume is surely wash tradiing, but I'm going to estimate that 4 million shares were sold short. 
  
       10/29/10   0.0105   0.0110   0.0105   0.0107      12500369  
  
  
 Volume spike, company sold 10 mil shares 
  
      12/23/10   0.0080   0.0085   0.0020   0.0075      12835300  
  
 The share count was the same in June 2011 so we know no shares were sold between January and June. From 1/3 to 3/28 when the .008 support was broken 21 million shares were traded.  Again, this is twice what I think the company sold.  I'm going to assume half were sold short and half were wash traded,  so 10 million NSS assumed. 
  
         01/03/11   0.0100   0.0100   0.0080   0.0086      21018300 
   
 From 3/29 to 10/17 when the volume picked up again almost 40 million shares changed hands.  Hmm, twice the last number.  I think I see a pattern here..... 
  
 Again I'll assume half were sold short and half were wash traded.  20 million NSS assumed.  Note that during this period the stock bottomed and  
  
          03/29/11   0.0075   0.0075   0.0075   0.0075      39505900 
  
 In the late summer and early fall the company was pretty quiet.  Deals were cooking but not much new tech was developed (Kinects was adapted, however) but negotiations were active.  From 10/18 to  11/16  7.8 million shares changed hands. 
  
 A/D takes a big swing up here, I think shorts are trying to hold the price down to cover but there is also some buying coming in and that's why the price went up. I don't think they could have covered more that 4 million shares and I think they took a loss on those because the price went up so quickly. 
  
           10/18/11   0.0048   0.0060   0.0048   0.0060       7834700 

So my estimate is that there is a MINIMUM of 34 million shares NSS on this stock. With 128 million float in the hands of stockholders who didn't sell when they ran the stops to break support. They can't cover without driving the stock over .01 IMO.

THEY ARE SCREWED

MOST OF THEIR SHORTS OCCURRED AT .008 and under.

All the investors have to do is keep doin' what they're doin' (holding) and all Spencer and Yasumatsu have to do is keep doin' what they're doin' (making deals) and the dam will break.

This stock should launch on short covering, and they will have to cover. Spencer was smart enough to get out of the first two traps. Dividends were mentioned as one of the options before the ticker change took place. My hunch is at some point a deal is going to generate some hard cash and a dividend will be distributed. Not a big one, but enough to add to the shorts' pain and force them to cover.

Disclaimer - all of the above is my interpretation of the charts and the numbers. It is not based on any information provided by the company.