Nexity Financial Corp. (NXTYQ)

[Value_Investor]

Which means $0.1045531 or $0.1046 per share cash liquidation value!!

[Value_Investor]

I bet on the $0.1046 per share liquidation cash value! So I just buy
the cheap shares and hold for the liquidation...

[Kev2128]

Reported from yahoo finance.

Shares Outstanding: 7.77M
Float: N/A
% Held by Insiders: 14.81%
% Held by Institutions1:0.90%

[Kev2128]

I'm thinking of taking a small position here.

[Kev2128]

Value, what is your take on this one?

[Value_Investor]

It is up 40% today! The MV is still joke low --- $50K only! $0.1046/
share liquidation cash!

[Value_Investor]

0.007 x 0.01 now. The bid is up 40% from yesterday's close price!

[Value_Investor]

0.006 x 0.01 now. The ask drops 50% from the previous price 0.02!

[Value_Investor]

0.0051 x 0.02 now. At 0.02 the MV is still ridiculous low ($150K)...

[Value_Investor]

0.006 x 0.01 now and no fill at the bid (567% up) at all.

[Value_Investor]

0.005 x 0.01 now.

[Value_Investor]

NXTYQ is up 456% so far! 0.004 x 0.02 now.

[Value_Investor]

0.007 x 0.02 now.

[Value_Investor]

MM NITE's manipulation! How the seller could sell 200 shares at the
ridiculous low price 0.0009 while the bid was 0.007?

[Value_Investor]

0.009 x 0.02 now. The ask jumped to 0.02! All the shareholders would receive a liquidating cash distribution equal in value to their NXTY
interest in the net assets of the company as of the liquidation date

[Value_Investor]

0.009 x 0.01 now. Only 10,000 shares left at 0.01 now...

[Value_Investor]

0.01 just hit! 0.008 x 0.01 now. The next ask is very thin at 0.02!

[Value_Investor]

Welcome to the board, new friend! What is your bidding price now?

[Kev2128]

I have a bid here to!

[Value_Investor]

That sounds great statement! Do you know when will be the exact date
for the liquidation? Thanks! If it happens the price should surge to
the 0.1 ~ 0.15 (the current 52-week high) area! Let's hope the best!

[Value_Investor]

Great findings, Alyssa! Huge potential for the holding company stock

[Alyssa]

It was just the bank subsidiary that was closed, which would be separate and apart from the company's other subsidiaries. The question is, what are the four other subsidiaries worth? This is from their last 10Q filed 11/10/08:

Nexity Capital Trust III, a statutory trust and wholly owned subsidiary, was established by the Corporation on June 1, 2008. Nexity Capital Trust III is a special interest nonbank subsidiary that issues trust preferred securities, whereby the proceeds from the issuance are loaned to the Corporation.

During the first quarter of 2008 we formed Nexity Capital Management, LLC, which operates in Tampa, FL. Nexity Capital Management, LLC will oversee and manage a private investment partnership. Through September 30, 2008, Nexity Capital Management LLC continued to be in its initial stage of operations.

Nexity Capital Trust II, a statutory trust and wholly owned subsidiary, was established by the Corporation on May 20, 2005. Nexity Capital Trust II is a special interest nonbank subsidiary that issues trust preferred securities, whereby the proceeds from the issuance are loaned to the Corporation.

Nexity Financial Services, Inc., which was established in 2002, was restructured in 2007 from a subsidiary of Nexity Bank to a subsidiary of Nexity Financial Corporation. Nexity Financial Services is a full service securities broker dealer. From its headquarters in Charlotte, NC, Nexity Financial Services assists community banks in designing and operating Wealth Management services to meet the financial needs of individuals and businesses within their respective communities."

[Alyssa]

Yes, shareholders would receive a "liquidating cash distribution equal in value to the shareholder’s interest in the net assets of the company as of the liquidation date."

Would be fun if that happens.

:)

[Value_Investor]

0.009 x 0.01 now.

[Value_Investor]

Do you think if the company would pay the cash to the shareholders?

[Value_Investor]

The 05/2009 obsolete stuff has nothing to do with the current NXTYQ!

[Kristallweizen]

Cease and Desist Order

http://www.federalreserve.gov/newsevents/press/enforcement/enf20090610b1.pdf

Many government administrative agencies also have the ability to issue cease-and-desist orders and frequently use them to halt the sale of unregistered or fraudulent securities, to halt banking practices that would possibly be dangerous to institutions and to enforce licensing statutes. These orders usually specify a period of time for the recipient of the order to request a hearing. If a hearing is not requested by the recipient in the given time, the cease-and-desist order becomes final and the agency has the ability to enforce its order in a court of law.

http://en.wikipedia.org/wiki/Cease_and_desist

[Value_Investor]

Wow! $7.7 per share book value! The price is still at 0.007 a share!

[Value_Investor]

0.008 x 0.01 now.

[Value_Investor]

True for so many "Q"s! But it is extremely hard to find the tiny OS
"Q"s with the liquidation value! Perhaps 0.1% chance in the Q world!

[Iron Maiden]

Im not saying its the lead bid...I am saying my bid is there at .0015 ... if it doesnt fill, I will move on....

Good thing about these Q's is there are many to choose from

[Value_Investor]

No way, my friend! 0.007 x 0.01 now. Only 20K shares ask below 0.02!

[Iron Maiden]

My bid is still sitting there at .0015

[Value_Investor]

Over $0.1045 per share liquidation value but trading at only 0.007!

[Old Tymer]

Wow, is this baby rockin'!

[Value_Investor]

0.006 x 0.02 and no fill at all.

[Value_Investor]

0.0055 x 0.02 now. The ask was jumped to 0.02.

[Alyssa]

Well as of that report you referenced, they also had assets of over $1 billion; in fact, shareholders' equity was $60,124,744, which works out to about $7.70 a share. Just sayin'.

:)

[Value_Investor]

I agree with you, buddy! The "Q" stock is the best performer so far!

[Old Tymer]

Alyssa, as long as you go into with your eyes wide open, yes, it can make you money. As long as you're making money, that's good! lol.

[Alyssa]

Well, thank you for your insight. BK plays have provided me with my highest returns. (MMPIQ, Chemtura, WAMUQ, LEHJQ, ABKFQ, and several others....). High risk, high return. It's fun when it works out.

Good luck with your investments.

:)

[Old Tymer]

Alyssa, yes, there are approximately 280 creditors, and more are on the way. In 2008, NEXTY had over $1B in liabilities. As usual, the creditors are going to be paid a small percentage of what they have lost. The common shareholders will receive nothing. That $812K will be used to help pay off the creditors, but that won't go very far. Remember, common shareholders are at the bottom of the totem pole when it comes to being paid.

A Chapter 7 shell is worth nothing, not .05. After a Chapter 7 has been finalized, you will always see some volume going through that stock, until at some point, which may be a few years, it finally dies completely. People will always do that because they think they can make $100 or $200 on a quick trade. It's just the way some people are. They will continue to trade until they can't buy any more shares.

Based on your statement, I think you're in the same boat as Value Investor. I really don't think either one of you understands exactly what's going on here. And if you're not careful, you'll end up losing whatever money you invest. Like I said -- keep an eye on the volume. You need volume to sell your shares. For every seller, there has to be a buyer.

Goog luck and be careful!

[Old Tymer]

Value Investor, why do people continue to buy

Borders? Simple -- because they can. Most people don't understand Chapter 7's. I understand them very well. Borders is still an ongoing case. When it's converted to chapter 7 and winds down, ALL SHARES WILL BE CANCELLED. Do you understand that point? ALL SHARES. It will be worth nothing. How can you sell a Chapter 7 shell with no Board of Directors or with cancelled shares? Simple -- YOU CAN'T! You have to have at least one Board of Directors member to sell a shell. That's the law. In order to do this, you would have to go through the Trustee. Do you know what he is going to tell you? No, you cannot buy this shell. There is no BOD, and there are no shares. Legally, that shell cannot be sold.

I think you'd better spend some time learning about Chapter 7 shells, and the worth of this company once it winds down. Even with MM's not active on a stock, people still buy stocks through a secondar market. These are people who think their stock is going to be reborn and strike it big! lol.

Make money while you can here, but look at the volume. Pretty bad. Are you going to be able to sell all your shares if you have to really fast? I doubt it.

[Value_Investor]

0.0055 x 0.008 now. The liquidation value is over 10 cents a share!

[Alyssa]

The article says it has "remaining cash," and I took that to mean after all is said and done.

I haven't looked deeply into this yet, but the FDIC took over the bank, not the holding company, and "all deposit accounts, excluding the Cede & Co. deposits, have been transferred to AloStar Bank of Commerce, Birmingham, AL..."

There may be other assets of value within the holding company.

If ends up being a shell, then that should be worth at least .05/share, in my very humble opinion.

:)

[Value_Investor]

You don't understand the investment at all as I can tell, my friend!
If what you said is true why people still buy BGPIx etc. CH7 stocks at several millions dollars ridiculous high market values? Even as a
shell NXTYQ is worthing much higher than the current market value...

[Old Tymer]

Alyssa, lol. Okay, explain this to me...

You're saying, based on that Bloomberg article, that this stock is worth .10 per share. But it's a Chapter 7. All other creditors have to be paid first, and none of them are going to get anywhere near what they have coming to them. That leaves you and the others, the common shareholders, with nothing. You will get no money from this chapter 7. So please explain the importance of this being a stock worth .10. I really don't understand this. It makes no sense whatsoever. I don't care if it's worth $50 a share. It's just a phantom number. This company is liquidating. You will get no money from this company. When it's over, that's it. Nothing more. So who cares what the stock is supposedly worth. It's only on paper. It's not reality.

Please explain this. lol.

[Old Tymer]

Value Investor, once the creditors are paid whatever it is they are going to get paid, there will be no cash left for the common shareholders, correct? If so, they'll pay what they can, liquidate and poof, the company is gone. Board of Directors will resign, etc.

I still can't figure out why anyone would buy shares in a Chapter 7 when it's going to be liquidated and the shareholders will get nothing. There is nothing of value here. It doesn't make any difference what the Market Value is. This company is going to be completely dead in the very near future. No value. Worth nothing to the shareholders. Investing makes no sense, unless enough people can convince others that it's a great idea, which is what seems to be going on here. Very strange!

[Value_Investor]

Wow, that is great news! Thanks for your information, buddy!

[Alyssa]

That article from Bloomberg was dated today, 9/7/11. 10+ cents per share means about 1400% ABOVE the current price.

:)