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When people cost average on pump and dump scheme stocks that drop in price in hopes they go back up over the average price that rarely happens. You have to know it’s doomed when you see the debt and increased authorized.
When you short stocks that go up in price, you short more. Like cost averaging down on a diluted pump and dump you short average up, KNOWING full well they will drop in price eventually. The more you sell higher the more you make when they drop.
If we paid $1.10 and they go to $1.40 we short more. When the shares drop to $.01 or less we make $1.09 on the $1.10 shorts and $1.39 on the $1.40 shorts. Knowing the stock will tank, you short more even if it goes higher on the initial pump stages and you make that much more when it crashes to the floor.
TREN went to $1.55 today but only on 19,000 shares, that is NOT much money to raise on a scheme. TREN is like SGMD initially sell high. When that tranche is over, add debt increase authorized and dilute, and diluted shares always tank.
These are not blue chips or high priced well structure companies where shorting is risky, they are schemes that start the pump on few shares at a higher price, let the price rise up so they know when they drop, people will cost average and more cheap players jump in.
If a ticker sells 10,000,000 shares at $1.00 they make $10,000,000.
If a ticker sells 5,000,000,000 shares at $.01 they make $50,000,000
What makes people think these schemes will just sell $10,000,000 at $1 and then close up shop (Because they have no revenue or business)?
Schemes sell shares for money not to make the company work and what scheme will say NO TO $50 MILLION MORE! When they make more on cheaper shares and sell to more investors who are more willing to spend $.01 per share then $1 per share. It’s a SURE THING the stock will tank. And brokers know they will never have to call back shorted shares with diluted shares available.
The fact that the highest share movers on any given day are all from tickers under $.0001 and they take in $300,000,000 a day on average, when that data never changes you can bet you will never lose shorting these schemes. EVER!
The lenders know they will never call back shares and any shares needed to cover open short positions and never fall into a squeeze. Why would we buy shares on the open market for more then the short selling prices and lose money? We can just buy debt shares for much less then what they were sold on the short even if the current price is higher then the open short position. You can’t lose!
Some are still missing the point I post. You don’t have to cover the short and lose money if the price goes UP. You buy back for less if the shares drop to cover the short and if the shares price goes up you still buy debt shares for less then what you sold the shares short.
You sell $1.10 short, the shares go to $1.50, you buy debt shares for $.25 and deposit them and cover the short position. The debt holders know they will dump most at $.001 or less so they are very happy to get $.25 or even $.10 so everyone wins but the retailers.
Actually today’s high for TREN was $1.55. Now $1.41 up from $1.11 a few minutes ago. Volume traded is low. REED does not have much trading activity at this time.
If you put in a sell short position at for example $1.00 and then the stock price goes to $1.50 would you ride it out? Do you get a margin call ever from your broker?
TREN went to $1.49 today. Now it is at $1.11. There is a lot of volatility here. Do you put a stop loss at some percentage amount over your short position?
Besao also to note; when you see this kind of data (below) on a new pump launch, most think this is a good thing.
They see that stock options are being sold or issued for $.20 per share to give the appearance that major investors are jumping in at $.20 showing that stock option investors believe it will rise much higher, and notice it says to CONSULTANTS!
(The "Company") announces the grant of incentive stock options to acquire a total of 4,800,000 common shares of the Company at an exercise price of $0.20 per share, with such options to have vesting terms over a period of three years. The options expire three years from the date to grant. These options were granted to directors, officers and consultants of the Company.
Here is what happens (but rarely) in the small print that investors never get to see. 4,800,000 shares at $.20 come to; $960,000 you think the company will be receiving correct?
WRONG!
What happens soon will be those getting the options will soon convert them to debt shares. But 4,800,000 are not a lot of shares on a pump and dump. What the small print says is; if at any time the shares fall below $.20 the company has to make up the shortfall with more shares. This is an indicator of an impending drop in price. The option holders know paying $.20 ($960,000) will be tossing money into the garbage so they get the options and fool other investors into thinking lots of cash is headed to the company. Why even post the options in the first place?
What happens is the option holders will help kill the share price as these schemes always end up on a downward spiral. The option holders owe the company $960,000 for 4,800,000 shares. But not so fast! What happens is they only pay the $960,000 over time in tranches. and over time the stock keeps falling, this means that as the shares drop in price, the option holders get more shares for their $960,000.
The CEO does not get the $960,000 nor does the company. Debt is paid and they payments got right back to he debt the option holders own so they get back the debt money paid. The CEO will get some salary or bonus but its usually a small fraction of the capital made on the debt tranches and as the share price drops so too does the CEO's percentage of funds.
If the price falls to $.01, $960,000 divided by $.01 comes to 96,000,000 shares (not 4,800,000) when it falls to $.001 they get 960,000,000 shares. You will never see an options holder pay the agreed $.20 because the options holders are in on the debt dilution. Also the options are tradable and can be used as collateral. That means an options or warrant holder can work with a broker (Remember the broker is in on it) to sell not 4,800,000 shares at $.20 but 48,000,000 at $.20 with the options holder and brokers the debt shares will soon follow.
48,000,000 x $.20 on the initial low float set up comes to $9,600,000 (NICE!) and a short squeeze is all but eliminated because the debt shares are a sure thing. And the oversold is only exposed when the company increases the authorized and adds them to the debt diluted float.
ALSO TO NOTE
There are two ways these options work. One is because the CEO is not involved in the pump and dump and the options holders sneak in the wording for toxic funding to debt dilute with out the CEO’s approval, knowledge or understanding.
The other is because the CEO is in on the scheme knowing full well the options will never be acted on and is just to fool investors. The willing CEO will allow the debt to happen and issue shares on the debt conversion while the unknowing CEO is forced into legally issuing toxic shares on a death spiral.
One factor to prove the CEO is in on it; is the company structure. You can bet a Uranium or Lithium or gold mine in Greenland is not the dream of an innovator legit businessman who wants it to see his vision come to fruition meaning the CEO is in on the scheme. And even with $960,000 on hand, you need 10’s million$ in equipment and also be approved to even mine in protected land. Not to mention years and millions in surveying the land by professionals then the health hazard compliance and processing of dangerous uranium or lithium and even gold requires toxic chemicals.
I said it many times; selling shares has more value then finding gold in them their hills. And selling shares takes one person and no costs or compliance. It can be done from the deck of their yacht or their $250,000 Mercedes at a red light. Why spend millions to find gold that may not exist and even if you find the gold, the shares are STILL worth more then the gold.
That is why the scheme has to be exciting not boring like Amazon books back when the stock was $2.00 per share. That is also why bigger investors made billions off Amazon stocks while the retailers were to busy buying into gold mine, marijuana schemes and losing their money. Books boring, Gold exciting!
In some cases the options are to show investors others are getting in at $.20 so it seems like a good risk. And in most cases the options are never acted on so the money never gets invested and the option shares never issued. Same with letters of “intent”. That means it’s not a fact or even will happen and on that note some tickers will say they got a $10,000,000 order and the 3rd party will issue them a check that bounces but the ticker never tells investors the order was cancelled. Instant revenue of $10,000,000 to post as news just for the fact they deposited a bad check. A $10,000,000 purchase order is real but so is the order being cancelled. All legal.
SO
Stock options at a high price? (Are likely not going to be exercised)
Letter of intent? (Means it’s just intent and likely never going to happen)
Sales of $10,000,000? (Just a scheme associate writing a bad check)
Always a hot topic and exciting like gold and diamonds. (That are never mined)
The proof is the scheme will post no revenue and add debt to the financials. With all those intent, checks, options you think they would have at least $100 in the bank but the data usually shows ($xxxx) and in CASE some do not know, ( ) means negative.
AGAIN ALSO TO NOTE
When you see a share price rise UP even after you short them you see the trade data is for not many shares, 1000, 1500 even as low as 100. Even if it is not a pump and dump those low trades are not really impacting liquidity or even value to investors. Just because the shares rise 200% on 100 shares being traded does not mean all shares are worth 200% more, so again its false data. The low volume means they scheme will soon make the liquidity explode just not at $.20 more like $.001, $.0001 and even $.000001.
Since shorts can stay open for decades it become a waiting game for the inevitable.
Besao - I have some answers.
If the same block of 10,000 shares gets sold ten times over how is there not a failure to deliver on 9 of the 10 sales?
Fail to deliver does not mean they never will be. It just means they will be eventually. Shorting these pump and dumps and the data they provide to me (publicly) is 100% proof they wont be around longer then the open short position. GUARANTEED! And even if they do remain trading longer, based on the data they provide the share will always end up in trip zeros or even less.
How is a short position registered as a long position?
There is what is called a mandatory reporting threshold. If you remain under that threshold the short position never shows up. Since a short can remain open for years or even decades and you short the stock under the reporting threshold they can be seen as long positions.
How is the $2.50 rule being circumvented as it seems to be in actual practice for you? I have IBKR and they have margin requirements for shorting penny stocks that match the $2.50 rule precisely.
It depends on the stock, the broker and who is just more willing to participate. If the store says bananas are $2.50 a bunch and the guy in the back shipping area says HAY PSSSST check it out you want the same bunch for $.10 cents? You say OK and no one knows about it.
Remember BROKERS are all in one it so when they let you short for cheap they know they will never be getting the stock back or have to call it back because they know you will just buy back diluted debt shares cheaper and never have to buy shares back from the float.
It’s FREE money for brokers and market makers and that is why they have associates short the stocks. They know they will never be called back or have to be returned to the lender. Any money they take to let you short the stocks $2.50 or even $.02 its free money they get to keep by continuing to lend what does not exist that soon will exist by the dilution.
You are confusing a legit short with a pump and dump short. A legit short, the shares have to be returned from open market inventory eventually. A pump and dump short you just buy back the diluted debt shares for less than 10% of the posted bid price.
Have you yourself ever experienced a short squeeze on a penny stock?
Pump and dumps don’t short squeeze because that would mean there are not enough shares to cover when the price rises. FACT! Pump and dumps make money only selling shares thus preventing any short squeeze because their are always unlimited shares available to buy from debt holders cheap to protect against any short squeeze.
If SGMD only kept the 200,000,000 float back in 2019 and sold them all for $.18 they took in $36,000,000. Once done and with no operations or revenue, they would have no choice but to close up. Why close the ticker when they can just over sell another 300,000,000 and make another $54,000,000 and protect the associates brokers, market makers, pumpers with debt shares soon to follow? Brokers would never have over sold unless they know for a fact the dilution is going to happen.
And also keep in mind those who set up the pump and dump do it over and over and if they let the brokers over sell and not cover the shorts with diluted debt shares, the brokers would never help those who create these schemes. Brokers make BILLIONS and so to the schemes so why mess with that.
So you can see why a pump and dump will never become a short squeeze. Or just maybe!
One company is being set up for this. The brokers and market makers that bet heavily on dilution and debt based on the trust they had for the ones setting up the pump, did not realizing the company was not part of the scheme but were told they company was.
This was done so the crooked attorney could dump 400,000,000 more shares at $.10 knowing full well there would not be any debt diluted shares to make up the shortfall leaving the brokers to be caught in a short squeeze. The company was not part of the scheme and kept the true DTC registered float at around 100,000,000 shares while over 800,000,000 traded hands with 400,000,000 over sold when some who attempted to attack the ticker failed to create the debt dilution shares and never told the brokers.
This caused a large over sold with a very low float. That is the storm of a short squeeze headed down the pipe. The shares now are $.002 means 100,000,000 shares will cost us $200,000 to accumulate the entire float. If we acquire all the float shares cheap and request the certificate from the broker (Minus 1,000 shares), once that certificate is issued, they are taken out of the lending pool, this would expose the massive naked shorts still open (maybe 400,000,000).
Think about this; You own 100,000 shares in your TD account and you now see the float is only 1,000 shares, you and 1000’s of others see the same, HOW can you own 100,000 if the float is only 1,000? Now 1000 investors call the SEC to complain and the brokers panic.
WHY WOULD A BROKER PANIC?
First of all there are NO diluted debt shares to buy cheap to cover the over sold and second, with only a float of 1,000 shares, what if the company issues a $10 CASH dividend?
The company only would have to pay out $10,000 to the TRUE float of only 1,000 shares and any over sold (your 100,000) that same $10 dividend would have to be paid to you by your broker and to those 1000’s of investors who own combined maybe 400,000,000 shares still open.
ANOTHER PROBLEM FOR BROKERS
They can’t just close the short by buying up diluted shares because there are NONE to buy, they MUST buy back all the 400,000,000 oversold. If the company issues a $10 cash dividend on a stock that you paid $.002 for (100,000 shares) and you paid $200, the brokers (not the company) owe you $1,000,000 and they LEGALLY HAVE TO PAY, just like they paid out $12,000,000,000 ($12 billion in one month for the GameStop squeeze).
IT GETS EVEN WORSE FOR BROEKRS
If the cash dividend is $10 costing the company only $10,000, Millions of investors would rush to buy up the 1,000 float driving the price to as much as $1,000 per share. If brokers have to buy back the 400,000,000 under SEC LAW, to buy back the float at $1,000 per share x 400,000,000, the brokers would have to pay out $400 billion and anyone who paid $.002 would likely be BEGGED by the brokers to sell them for $100 per share just to reduce the huge short losses.
Even if you sold your 100,000 you paid $200 for at $100 per share you make a nice COOL $10,000,000! Now since we will own the float of about 100,000,000 shares paying only $200,000 at even $100 per share on a forced squeeze we would net $10.8 billion! Even the worst case, the company does not do a cash dividend and there are only 1,000 in the float. The SEC would force the brokers to close the open shorts and since they can only buy back and not resell what does not exist, they would cause a run on the stock as many won’t sell.
Even if they are forced to buy back the shorts and drive the price up to $1, we will still make $108,000,000 not to shabby I might add.
Heck even if they are forced to buy back what they sold them for $.10 we still net $10,800,000.
These are not assumptions like pump and dump stocks. These figures are real, valid and FACT period. No intent or ifs or could. When we buy the rest of the float we will make an offer to buy the 1,000 shares for $10 per share causing the bid to rise to $9.50 and the SEC forcing brokers to buy back the 400,000,000 for $9.50 per share.
The brokers will likely call the company to see if they will sell the public entity so the brokers can close the ticker and cancel the short squeeze and have all shares cancelled but so far the company CEO said NO SALE even to a 6 figure offer. That is the CEO you want running the company you invested in.
That is why we worked with him and his company because all the data points so far from being a pump and dump set up and the fact the (arrested) attorney lying to the brokers was the perfect set up for short squeeze not a diluted debt dump.
So there is your short squeeze answer.
It seems to me that once a penny stock company resorts to toxic convertible debt financing there is very little chance that the company could ever succeed. Company officers do get money for salary and bonuses, but the shareholders are wiped out. The toxic debt people and the penny stock company officers seem to be colluding to screw over the shareholders along with all the shorts.
CORRECT!
A ticker I’m shorting now has a women listed as CEO, CFO, secretary making $57,000, however in the filings, 10 others behind the scenes are making between $1,500,000 and $78,000 on a company that has no revenue. And it seems they bought the company that writes the PR’s, which is a serious conflict of interest. BUT no one cares. No one Look’s at data so it’s just the norms here on the sub penny markets.
They drive the price up by 30% by buying only 100 shares and people see that as a way to make money, if you did buy 100 shares you won’t be able to sell them and be profitable. As I said they do this to make people think it’s a good investment when its just being set up for debt dilution. A $100 stock buy can make the company market cap rise by $10,000,000 while at the same time one sell order can kill the share price. Smoke and mirrors.
For you a stock screen to search for prospective shorts might be to look for obvious scam companies with known corrupt officers, high amounts of convertible debt and no revenues. You would short them probably after a massive reverse split optimally or perhaps after a pumped run up in price.
YES, but those running the scheme are never on the filings or even the board of directors. They find a patsy CEO to run the scheme for not much money. Usually a CEO from a failed ticker with no products or revenue so those CEO’s have to end up a pump just to make some exit strategy money knowing that was not their initial plan, they just had a failed ticker and they needed some money to survive.
Once in a great while there might be a real company with honest officers that has a revolutionary product that has explosive growth potential. Have you ever witnessed such a success story? Was Microsoft or Apple once a penny stock on the OTC way back when they were starting out?
FACEBOOK was a gray market company and look what they did. The company we are targeting for the squeeze would like to move from Grays to NYSE and the hell with the OTC, however a simple fee to the OTC and they could up list right back to OTC Current. But the OTC is not an exchange or regulatory agency. They are a publicly traded ad platform.
Remember, Apple, Microsoft, Google and many fortune 500 Companies started in a garage or basement. NIKE CEO sold shoes out of his car trunk before his company took off. Amazon only sold books initially.
Wrigley’s gum started off as a laundry soap product that no one liked so they created GUM and said FREE CANDY in every box of detergent. People liked the gum so much they wanted the gum not the soap and the company emerged what is now a billion dollar corporation all from switching from horrible soap to chewing gum.
The company we see the impeding short squeeze coming has a similar story. They own a mold technology no one else has and used that in the confection industry. Then to increase sales, they offered a free custom 1/10-ounce silver ingot with every $15.00 purchase and more people wanted the custom silver ingots causing the change from confections to what is now a global silver and gold casting operation.
Change in a good proven company can be a great thing.
The most you see change in a pump and dump scheme is the diluted shares and eventually the ticker.
You tell a compelling story. I have some questions.
If the same block of 10,000 shares gets sold ten times over how is there not a failure to deliver on 9 of the 10 sales?
How is a short position registered as a long position?
How is the $2.50 rule being circumvented as it seems to be in actual practice for you? I have IBKR and they have margin requirements for shorting penny stocks that match the $2.50 rule precisely.
Have you yourself ever experienced a short squeeze on a penny stock?
It seems to me that once a penny stock company resorts to toxic convertible debt financing there is very little chance that the company could ever succeed. Company officers do get money for salary and bonuses, but the shareholders are wiped out. The toxic debt people and the penny stock company officers seem to be colluding to screw over the shareholders along with all the shorts.
For you a stock screen to search for prospective shorts might be to look for obvious scam companies with known corrupt officers, high amounts of convertible debt and no revenues. You would short them probably after a massive reverse split optimally or perhaps after a pumped run up in price.
Once in a great while there might be a real company with honest officers that has a revolutionary product that has explosive growth potential. Have you ever witnessed such a success story? Was Microsoft or Apple once a penny stock on the OTC way back when they were starting out?
Thanks
With all the AI talk, I am sure most tickers will morph into AI schemes. I bet SGMD turns into an AI ticker as well. It's where the pump money is going.
I am geting in this new (debt ridden) short play TREN @ $1.10
Perfect example. FUUFF is just staring the plan at $.24 with authorized as UNLIMITED ($6 mill in debt) which means NO LIMIT to debt shares. Also TMC at $.81 with no authorized data ($174 Mill in debt). Looks like a short play is on the table for us. gotta run get my sell orders in....... ILL BE BACK!
Shorting naked they SAY is illegal. However not sure if you are aware that when anyone opens a stock account when they sign the forms the small print says the broker can use your shares and lend them to others.
There is a check box that says NO you do not approve of that but most never see it or sign it. What that means is brokers can lend your shares you own in your account to a short sellers margin sale and the other brokers executed sell order can also lend out those shares to another short seller.
Shares in most peoples accounts are lent many times at the same time. Meaning if you had let say 10,000 shares of XYZ and your broker lent them out, the one borrowing them can also lend them out.
Now you think that would be illegal naked shorting. How can you own 10,000 and 10 brokers each lend them out creating 100,000 being sold? Nothing is illegal in this market as long as you close the open position and return the shares. Many brokers who lend multiple times know full well they MUST have the shares drop in price so they can buy them back cheaper or they would not lend borrow lend borrow the same 10,000 so they are short 90,000.
If you owned SGMD at $.40 10,000 shares you paid $4,000. The brokers know it’s a pump and dump. They lend the shares to a short seller for a fee. Because they can register a short as a long position the data never makes it to the short % data. Then the short seller that owns the shares they borrowed lends them to another short seller and this can go on many times.
Since they all know the stock will drop from $.40 to $.0001 (And they help make it happen) the initial shares sold on the pump before dilution means 10 brokers/short sellers are all selling the same 10,000 for $4,000 but x 10 $40,000. Remember they do this with 10s of millions of shares not just 10,000 (that was an example)
When the stock tanks to even a penny bid, the brokers and short sellers can purchase debt shares from the new diluted authorized much less then the actual bid price making it so no retailers can sell (maybe a few). Ill even make this less confusing.
Let say you own 10,000 shares you paid $.40 ($4,000) a broker lends them to a short seller disguised as a long position so no $2.50 fees apply just a lending fee %.
The borrower now sells the same 10,000 shares for $.40 short and also lends the same 10,000 shares to his brother and he sells them for $4,000. The two brothers now have $8,000 but they have to return the shares eventually (buy them back) or deliver shares to the ones they sold them to short.
NOTE: A short position can stay open for DECADES! And since they all know it’s a pump and dump and because those selling short your shares multiple times are also part of the scheme and WILL make the shares drop when the debt dilution starts.
They may hold the position open for years and buy them back at $.00001 or even wait till the ticker is canceled and not have to even buy them. The DEBT shares are really for protection so shorts can sell more then whats available in the float at a high priced so they make more money fast initially knowing the dilution debt shares will soon be available in case they are forced to close the open position.
If any of those OTC pump and dumps did in fact RISE UP, It would cause HUGE losses for the scheme. They would never take a risk selling $4,000 x 10 short to make $40,000 and if SGMD did go to NASDAQ as they once claimed and the stock went to $5 per share, the shorts would have to come up with 100,000 x $5 is $1,000,000 so you think they would ever take that risk? NO WAY. This is all planned well in advance.
That is why you see a pre-pumped scheme start with low float and high priced stock and the float data is held back 3 months so no one can see the real data. That is why the scheme must increase the authorized and also like SGMD merge with a 3rd party company with debt so the new high authorized can be sold very cheap to those who multi shorted the stock. Every pump and dump has debt. They are never profitable.
No debt, No pump. A pump and dump must have debt and a large authorized but they don’t do that until after the initial high priced low float hype that starts the process. Would you invest in any OTC that now has millions in debt, no operations and a 10,000,000,000 share float for $.40? No one would that is why there is not one pump and dump with that structure that even comes close to a penny
If you look at all the listed OTC tickers and search by share volume you will see 90% of ALL OTC stock trades on any given day are from just maybe 100 tickers out of 12,000 listed and each is well under a penny with millions and billions being traded.
You will never see one of those 100 high volume share movers with a $.40 share price. This is the proof that those brokers and shorters and lenders are all 100% sure they stock will tank and because they make it happen. (See image below).
And what is interesting is you don’t see any STOP signs. Thanks to 15c211 regulations all that did was legitimize schemes that now are Pink Current as if they are legitimate. And they all started out HIGH, debt diluted LOW! And eventually drop off the OTC.
15c211 legitimized fraud PERIOD!
So now you own 10,000 you paid $4,000 for. And 10 resold them short for $40,000 and 90,000 shares are now owed to those buyers. Why buy them back at the bid price when they can just buy them back from the debt shares for $.001? They each sold short 10,000 for $4,000 and they just buy 10,000 from the debt holders diluted hoard of shares for only $10 and profit $3.990. Again this is an example, NOW think about that being done with SGMDs initial 200,000,000 that were over sold to maybe 600,000,000 or even 2,000,000,000 at $.40 with no data showing the true trades.
That is why these schemes must add the debt and increase the authorized, so they can cover the massive over sold when only 200,000,000 existed. As long as they deliver the shares no crime is committed.
So how is naked shorting illegal or illegal? Simple!
If you return the shares to the oversold buyers your position is closed and you’re compliant. IF you cant get the shares then become illegal naked because you cant close the position.
It’s like putting a steak in your jacket at the grocery store while you in the store, they can say its theft but you did not leave the store yet. Then at the last minute you take it out and pay for it and they say OK your good! Thieves will take items off peoples lawns (statues, art, sculptures etc.) when confronted by owners or police they say they thought it was garbage and are sent on their way.
Who would ever short or borrow OTC stocks then lend them back out again knowing IF the OTC was in fact legit with a lithium mine shares did rise in price and cost them more then what they sold them for. NO ONE! EVER!
This is planned well before the ticker is even introduced to the OTC. This is like a fancy commercial for a new movie everyone wants to see and they buy tickets on the computer and end up at a parking lot with no theater on the day of the event.
The commercial sells the tickets and the end results there is no movie. Same with pump and dump stocks. A perfect example is the Michael Jackson death issue that still has some hit of a crime.
MJ was slated to do 10 events and the marketing agents and promoters sold I believe was $400,000,000 in pre paid tickets. MJ decided to cancel 5 shows for health reasons and the venues would have to refund $200,000,000 unless the artist dies. Ill leave it at that.
OTC stocks are the same, you paid to see something happen and after you invest, they kill the company and ticker and you get no refund. That is why these schemes have to close or reverse merge so they are no longer liable for the shares they owe if over sold with open positions naked.
When they close the ticker your shares are removed from your account.
It is so frustrating to see this and make money from it but it’s the way it is. We are not the enemy we just play the game legally on a small scale. NO ONE can get hold of lots of shares. They are reserved for the brokers and the scheme associates who do the multiple shorting. It is a band of brothers all involved and NO outsiders are welcome BUT the public can also benefit by what they do on a smaller scale. But since most OTC's are pump and dumps. A lot of a little ends up being a lot.
It’s as if everyone at a ball game was related and you also went. They drop $100,000,000 from a helicopter and everyone runs to grab the cash. You may only get some but a little is better then none.
Once in a while you see a hot stock tank that is legit and has operations but you have to wonder why. Like MMNFF they went from $8.00 to $.015+- and I jumped in with profits from a short sale. I figure they make money have operations and are not a pump and dump so the risk is minimal and so is the share price. That is the problem with SGMD; they are also in the MJ space because that is what sells shares not actually making the company work.
The reality is, most will never make any money on the OTC and if they do say they invested in a scheme and it EXPLODED they are lying or were the debt sellers from the scheme.
When shorts did this to GAMESTOP, the float was 1.5 times the true float and when the shares went UP not down, the shorts had to pay $12 billion in one month to close out all the positions.
That is the truth.
Does the ETB (easy the borrow) window mean specifically that the margin requirement is eased by the brokers. They perhaps want investors to be able to short easily so that the stock price drops and this benefits the broker as well because they are in on the scheme?
Does the SEC or other regulatory authorities ever check to see whether the $2.50 rule is complied with.
Market makers have a loophole in Reg SHO for maintaining market liquidity. Can they collude with traders to provide counterfeit shares to hold short? When real shares never do get borrowed there is a naked short position. How long can this naked short position be held without causing a failure to deliver problem?
Thanks
Brokers are all in on it heres how they do it->
If you called a broker and said you wanted to buy $10,000 in a company called Supreme Cobalt And Mining with mines in where else? Greenland with a ticker SCAM at $.10 per share (with a bid of $.09 per share) and you asked them is it a good stock, they would say HELL YES and tell you to buy it just to take your $6 commission and take your $10,000 and buy debt shares for $.01 and you would be stuck with shares you cant sell on the bid for $.09 ever. The brokers would get them for $.01 so why should they pay $.09?
The debt shares brokers buy for $.01 they sell to you for $.10 they make $.09 not just the $.01 spread like on the posted bid.
The broker sales person gets a NICE FAT bonus of $.02 per share ($2,000) the firm gets $.08 per share ($8,000) and you get 100,000 shares at $.10 you can never sell. They do this to HELP the debt dilution knowing they will never have to buy on the bid because no one will sell on the bid and each time the bid drops on the dilution the more they buy for less from the debt shares until a new ticker emerges.
Brokers don't care about you or your stock picks, they are NUMB to morals, they have none left.
Can you kindly fill me in on how it is that you seem to be able to skirt around the $2.50 rule? I think you mentioned that rules are simply not enforced. Don’t you need a broker to also not have any compulsion to follow the rules?
The best time to go short is after a reverse split and just before an offering gets announced or other kind of dilution happens and this is what you have mentioned.
SGMD had gone to a high of 40 cents. From there it has been a steady downward progression to 0.0001. When and how did you see the ETB window that got you short at 18 cents? What sort of signals did you see?
I am looking forward to your book.
Thanks
Wish I held the short position longer. But its the same story with each ticker. Nothing will change until investors change their DD strategy but since that is likely never going to happen the schemes will keep coming and going.
The stock price today varied between 0.000001 and 0.0002. Buying at the bottom(only expert market qualified traders can) and selling at the top is a 200,000% gain on each trade.
That would appear to be an attractive return for the risk of possibly losing your entire stake. 0.000001 might be a floor that the stock is unlikely to go under in the short term before a bankruptcy happens which would convert 0.000001 to a value of zero.
jimmy chan (all lowercase), taken all your money yet?
ALSO BEWARE! If the regulation passes into law allowing money managers and 401K funds to invest in radical progressive stocks. EVERY OTC scheme will switch to a NEW progressive stock and brokers will know full well it’s a pump and dump but have been given the OK to invest in them with a HUGE back end kick back.
A Lithium or marijuana scheme will switch so some progressive pumped company and offer money managers a % kick back over the commissions. This will WIPE OUT most peoples 401K accounts as the investments end up like ENRON. Brokers and money managers who also need an exit strategy will use client’s money knowing it will be a total loss so they can get the kick back from the pumped ticker.
It will be one of the worst moves in history even worse then the crash of 1929. Progressive companies will emerge and retailers will again rush to buy the stocks but even worse will be money managers dumping peoples secure 401K retirement funds into OTC scams.
Just like those running the schemes that make millions and billions so to will brokers taking the kick back at account holder’s expenses. And with this new regulation if it passes means money managers can say WOOPS sorry don’t blame us, blame the scheme for lying.
A new scheme will promote they are progressive at $1 per share; sell off 400,000,000 shares ($400,000,000) to some 401K fund managers who uses clients funds. The money manager will be issued through a 3rd party account, 5% of what they invest ($.05 on the dollar). The scheme takes in $400,000,000 issues back $20,000,000 to the money manager and 401K accounts are liquidated to $0.
AND! It will all be approved by the US GOVERNMENT!
BesaoT35, A negative float is just based on the time of executions and when a transaction goes through. However with GAMESTOP's short squeeze, there was 150% of the float out in trade. The negative float can be seen as when a naked sale happens their may be for instance 150 shares in trade (50 of those shares) being shorted when only 100 shares exist in the true DTC float. It shows as more shares traded but is still a negative float by 50%. It’s sort of the more you see in trade over the float is a negative. Meaning they have to be closed out because they don’t exist. Phantom shares over the float = A negative float.
But let’s not confuse a GAMESTOPS short squeeze or even when others are shorted like Tesla vs. OTC shorted stocks. When an OTC is shorted, most if not all of the ones shorting the stock know full well that soon they will be diluted and the stock will drop. That way they know for a fact they can buy back the higher sold shares for less with out spending a penny.
The OTC is not a risk shorting the stock because everyone is in on the scheme. Many OTCs will make it HTB (Hard to Borrow) but in order for the plan to take place, brokers have to put the shares ETB (easy to borrow) and that window is very narrow.
You have to get in when the schemers and brokers get in before they close out the ETB and make the shares HTB preventing retailers from making the same move as schemers. Plus you cant short the ETB too much or they may close it down. You have to know a planned ETB short sale will generate $10,000,000 to as high as $100,000,000 so you have to just get in with $100,000 more or less so as not to disrupt the scam dilution dump that soon follows.
You need two things, a margin account and information and data.
I knew a money manager who had 250 clients in his firm. He told each of them that he was going to use $1000 from each to buy a new ticker company at $.10 per share (10,000 shares) and to let them know it could move to $10 but as a trusted manager he said the risk is it could drop but what he will do it make sure he gets out of the stock so only 10% may be lost while the gains are worth the risk. Here is what he did.
He took $1000 x 250 clients ($250,000) but he only bought $1000 worth of shares and sent the order confirmation to all 250 so each investor thought they owned $1000 worth. The manager knew it was a pump and dump and when the stock tanked to $.001 his clients were ELATED he got them out at only a loss of 10% so he got back $900 for each client before the stock was worth only $10.
By telling all those 250 people they each lost only $100 was not a big deal (worth the risk) what he did was take the $250,000 ($1000 from each) only bought $1000 that they each thought they owned and then they each though they were out of the stock when he sold them all. He took in $250,000 and returned $225,000 and pocketed the $25,000 in about a week. Once all the investors knew they no longer owned the shares at a $100 loss no one complained or filed with the SEC so the fraud was not exposed. Do that 5 times a year and you make $125,000. Also I know some will do that with profits from performing stock so they can still lose clients $100 a money on the scam stock while they make $300 on the winners.
If 401K managers did not do this and left shares untouched in accounts they make no money so they have to generate a salary so they use good stocks small % to offset the fraud and NO ONE SEES this because no one knows it happened.
That is sort of like a short sale but he fooled the investors to make $25,000. So how do I know this? The ETB data window opened and you jump in then its closed to HRB. The same reason OTC investors don’t know this is the same reason they don’t look at other data before investing and LOOK WHERE WE ARE TODAY!
$100,000,000,000 to as much as $250 billion lost to those investors each year. As investors keep doing what they do so too will the OTC schemes. No regulations, no rules apply to the OTC, not enforcement except for the poor slob CEO patsy to take the fall when the scheme unfolds.
But rarely does anyone get prosecuted simple because investors were told they may not make the company work and you will likely lose all your money in the disclaimer.
Thanks MallenNV. This is informative and fascinating reading.
Some stocks are shown by IHUB financials on penny stock companies to have a negative float. I did not know a stock could have a negative float. I did not know that naked short shares could actually exceed the total number of outstanding shares.
A burning question that I have is could naked short shares created cause the share float number of a penny stock to have a negative value? Why is it that the float number listed by different data providers can differ by billions of shares?
What brokerage do you use to short penny stocks? When is your book going to be published?
Another question is if a short position is never covered by buying back the stock are there any taxes owed? If a company goes bankrupt for example there would be it seems never any need to cover and perhaps no taxes would ever be owed. Is this true?
Thanks again.
Reply to private Message--?
They said they make 1% on every trade and turn $100,000 into $1,200,000 annually. I beg to differ.
That logic looks good on paper but what happens is the bid (If brokers even buy from the retailers), they will change the level two so fast that if the bid says 5,000,000 asked 10,000,000, you can never get the entire 5,000,000 sold at the posted price. 5,000,000 does not mean they will pay that bid for all 5,000,000 shares.
When brokers see a run on the bid they may execute only 100,000 of the 5,000,000 then soon after transacted they lower the bid even more (below any profitability) NO ONE and I mean NO ONE can make a guaranteed $1,200,000 on $100,000 invested over time on the OTC. It may seem logical but the fact is the brokers wont allow it. Plus you have to hit every ticker with a guaranteed % gain and we all know that is never going to happen. One loss can kill all the profits from 100 plays.
Also they regulate the fees with the bid. If you buy and sell at $6 commissions ($12 total to buy then sell) on 100,000 shares, 25,000 of those shares at $.0005 has to absorb the cost of the commissions. At your 1% fraction theory when you apply the commissions means you lose money. This is regulated and set up all for the fact, brokers and debt sellers do not want ANY retailers selling at a profit forcing them to hold. Remember it’s their money and YOU CANT HAVE ANY OF IT!
The problem also is when the pump sets up initially at the higher price with the intent it may go to $5 up from $.20 the big level two may look good but will drop below profitability with one transaction leaving just about everyone at a loss. The dilution starts and price drops and people start to buy more to cost average. And remember ANY brokers buys on the bid come from the debt shares NOT retailers.
If someone posted your data as a proven FACT every person would be a millionaire. I do agree that retailers don't want to make just 1%. They dream of a new home, quit their job and buy a vacation condo in Florida that requires a $1000 investment in a $.0001 stock to rise to 10 cents per share is a gain of 100,000%
If every stock offered the same guaranteed low level gains, as soon as many attempted to do that the brokers would shut down the bid to a total lose on any gains even 1/10th of 1%.
I have said it many times, the OTC schemes are like a CASINO and the house never loses. Most retailers gamble on the OTC scheme to make huge returns the same as sitting at the black jack table and playing $100 each hand and you hit a BLACK JACK every time and turning $100 into $250 each hand and we know that is IMPOSSIBLE!
If we use your logic it would be like going to the casino, playing $10 on roulette knowing that you will hit your number and double up but as you said make a little then leave. So after one play you win $20 and leave to go to another casino. But we all know you will never hit the number you play on one bet each time. Plus the cost to move from casino to casino similar to commissions to buy and sell can equate to far more losses then the 1% gain.
When you buy a major stock most have no commissions (except for OTC schemes) where TD makes $50,000,000 per quarter on commissions.
But the little known secret is when brokers offer no commissions on major stocks; they are in a microsecond accumulating all the sales and buy data on any given ticker. The technology is so precise now that TD can accumulate the buy and sell data and in the second it takes to transact the buy or sell order, the technology can accumulate what the price will do on any given split second before the orders are placed. TD can then buy and sell a % of each order and buy or sell based on what will happen in any given trade.
What that means is TD and other brokers, for example see the buys and sell on Amazon stock and the system will calculate the % of buys and % sells and trigger an internal buy or sell based on that data. Sounds like insider trading right! But you can’t blame a computer and the transactions happen so fast no one notices.
So how do I know this? That is what I do. I tested this theory based on long-term trades and found that brokers are posting record profits, but where are they coming from? Market manipulation is illegal but having technology-allowing brokers to buy and sell based on buy and sell orders placed is not illegal.
So they don’t need to charge commissions, they make much more trading based on what is about to be traded. Sounds sneaky!
So why don’t the brokers do that to OTC scheme tickers? Because they know any buy and sell internally based on buy and sells on the open market would render them very little profits even on a large share transaction. They figure just charge people a commission knowing 10,000,000 trades may happen on any given week at $6 is $60,000,000 a week in total for all the brokers who sell OTC stocks.
When I spoke to an ex-employee of TD, he said they know the stocks are bad they know they will be diluted and know they will make $6 x 2 with each buy and sell and he said that if they warn investors about OTC tickers they will lose as much as $50,000,000 each quarter on commissions.
He also said that this 15c211 that was supposed to stop fraud caused many tickers from being traded and they lost about $24,000,000 in commissions. He further said they anticipate 15c211 being retracted so that the pump and dumps can go back to the OTC and get the commissions moving again. It’s all about MONEY, nothing else.
He also confirmed about the no commission stocks saying that on any given 100 shares traded they may execute an internal buy or sell in a microsecond and make $.10 per transaction on the sell or buy on one share out of 100 traded. When you see a company trade 50,000,000 per day in the $20-$100 per share range and they internally make only $.10 on 100 shares is 500,000 x $.10 per day on one ticker ($50,000) they do that with 100s of stocks (not OTC tickers) so you can see 100 minimum x $50,000 is $5,000,000 per day in FREE MONEY! That comes to $1.2 billion annually at the MINIMUM!
One share sold or bought out of every 100 is literally nothing to cause an issue with the buy and sell price BUT those $.10 sure add up! If they also do this with cheaper shares in the $1 range they make even more money. How do you think wall-street posts trillions in profits on no commission stocks? Must be nice
Brokers know doing this with pumped stocks there is no money in it. That goes back to the casino scenario, Play with the house not against it and the house never loses.
Open a margin account with $1000, wait for a new HOT stock that’s $.05 or more and put in a short sell order and wait. When the stock tanks to $.01 you buy it back and make $.04 per share or more if it drops further and we know it will.
Sell short 2,000 $.05 shares ($100) on the initial pump (we did it with SGMD at $.18 and many others) and wait. We know OTC schemes must get in and out fast before they implode and know that the longer they take the less people will buy as all the suckers are holding at that point not buying more.
When the stock tanks to $.01 you buy back the 2,000 shares for $20 and you made $80 (in about a week) that’s an 80% return not 1% and is a SURE THING based on the schemes set up, debt, authorized and structure of what they want to achieve.
You do that with 100 tickers even a month and you are making a nice $8,000 a month on $100 bets. If you look at all the failed tickers then the new one that take their place will do the same you jump in fast and buy back fast and move to the next ticker. OR wait for the stock reverse and do it all over again with the same ticker.
I don’t want to hear all these responses saying “but what about the fees and %” or it’s impossible to short OTC stocks. NOTHING IS IMPOSSIBLE in the market. It’s the Wild West!
Money is the name of the game and rules are for suckers. And with millions of suckers who lose accumulated to over $100 billion annually, regulations will never change and questionable activity overlooked because lawmakers are ALL IN ON IT!
It’s just the way it is. While millions are losing little, few are making Billions!
The only OTC's that have any validity and actually are doing what they say, are of no interest to investors. Investors who buy OTC stocks buy on hype and dreams not reality. It's amazing that investors only jump into tickers when they think it will be a huge payday. I have said it before; it's the lotto mentality. Invest a little to win big.
Again the problem is that unlike a lotto drawn number where you have a slight chance to win, the OTC Scheme makes sure no one wins by controlling the winning number and making sure only they own the winning ticket.
If a lotto with only 2 sets of numbers promoted the TOP prize was $100 and tickets were 10 cents, no one would play even though the odds are much better then the current lotto odds. That is because the pay out on the current mega lotto is what dreams are made of. And the entire OTC is made up of just dreams, Broken dreams.
This is exactly the difference between valid OTC and scam OTC tickers, and those running the schemes know full well that the dream will always beat reality. OTC investors don’t have much money, a proven fact and really can’t afford to invest in a blue chip at $50 per share making $2 when it hits $52. To make $1,000,000 that way they need to buy 500,000 shares at $50 ($25,000,000) and PRAY it goes to $52.
The OTC schemes know if they use the same logic only more affordable, they will attract those who want the same. To make $1,000,000 on a scheme with the PR saying if you invest now at the diluted decline of $.0005 per share, all you have to do is buy 10,000,000 shares (Cost $5,000) and when it goes back to $.10 (Cheap from a high of $2) you can make your $1,000,000 investing $5,000 not $25,000,000. But that is rare that OTC investors would even take that $5,000 risk but some do.
In most cases the idea is to spend a few hundred to make at least a huge return but far from $1,000,000. Although some schemes say they will file to go to NASDAQ and then the stock could rise to $3-$8 per share. I have said it before, any OTC can apply and say they applied but are quickly denied by NASDAQ.
That NASDAQ intent news allows schemes to promote the same $1,000,000 number that is what OTC investors want to hear. You cant claim you are a millionaire if you only make $999,000 so the $1,000,000 mark is key to a successful pump because if you make that much you can then say you are a millionaire.
To achieve that, the scheme pump and dump says invest $2,000 at $.01 and when at NASDAQ at $5 you make back $1,000,000. Even $2,000 is a stretch for OTC investors for the fact it may be hard to hide that from the wife. So $100 here, $100 there no one will notice and even if a $100 investment at $.0005 (200,000 shares) even goes back to $.01 is $2,000. Not great but not so bad but rarely ever happens.
The problem is for the fact the schemes make sure the shares never rise so they have no competition from investor’s also selling shares. They want all the money and YOU cant have ANY! Keep in mind brokers have to keep the shares on a declining price to hide the fact they are buying more debt shares from the scheme for much less then the posted bid. This continued decline in price must be done to hide the dilution debt dump.
It’s simple math and how the market is played. If the scheme ticker has brokers selling shares for $.01 with a bid of $.005 and they rely on the retail investors to sell on the bid to fill the asked order, most retailers wont sell that low. Remember OTC investors want a HUGE win not take $100 at $.001 and sell them for $.005 to only make $500 before commissions.
That is why the PUMP PR has to get investors so excited they hold the shares. By holding back shares, brokers would have no option but to raise the bid and the bid can never be greater then the asked. Brokers know if the asked goes UP they will start to lose the majority of investors who want in cheap.
To regulate these OTC schemes, they all play the same game. Sell high on the initial pump then debt dilute. Once the debt dilution dump is in play, they must keep the asked low and the bid low (often they make the bid and asked the same).
NO broker wants to raise the bid and end up with billions of shares they can’t resell. Its like buying 1000 eggs, you may eat some but not all before the rest go rotten and you can’t eat or resell them. This only gives the brokers ONE option, to buy debt shares for far less then the bid and keep selling on the asked at the low price.
If brokers raised the asked from the high demand and did not buy debt shares cheap, they would have to raise the bid and also the asked and end up not getting mass orders on the low asked price. You can tell this happens when you see 100,000,000 shares trade on any given day with no change in the bid or asked.
It’s called a LOCK OUT.
That is when brokers no longer buy on the retail bid and only get the shares from debt sellers for a fraction of the bid. TD takes in about $50,000,000 in fees each quarter selling OTC investors what brokers KNOW will never be allowed to be resold on the lock out because the brokers are all in on the scheme. They may not be breaking the law but they obviously don’t have investor’s best interests in play.
This is about MONEY and nothing else. It’s investor’s dreams to make $1,000,000 cheap. It’s about an OTC scheme knowing that’s what investors want and they create the intent dream scenario that lures investors in. It’s about the brokers making $100’s of millions each year selling locked out shares for commissions and making billion$ selling debt shares to new investors and cost average buyers.
Everyone is in this for one thing, MONEY and nothing else, the investors want easy money and the OTC schemes want easy money as well, and it’s easier to say they may make products and create the company they promoted that never materializes because its easier selling shares on a $400 news release then to actually get out and make the company a reality with the high risk it wont even work as a company.
That is why pumped companies use huge scale plans like marijuana, lithium, gold mines etc. Because they know they will never do it and also that’s what investors want to hear.
Soon all these pumped tickers will change to Mushroom Companies with the news psychedelic mushrooms may be legalized. I Guarantee tickers will change and also guarantee investors will jump in them as well.
There are two losers in this market. The retail investors who in total lose about $100 billion annually and the valid companies on the OTC who are literally “Locked out” by investors the same way those investors are locked out from selling on the bid.
When the few valid OTC companies that break out and become fortune 500 companies, the same investors who declined to invest are now saying they wish they had (Like Amazon at $2.00 per share) because they would have made millions. Shoulda, coulda, woulda! Retail investors are their own worst enemy.
If OTC investors took all their losses over the past ten years and invested in a valid OTC that was on the move that just needed capital to expand, they would have the magic $1,000,000 they so desperately seek that they never find when investing in a diluted pump and dump. They want it FAST not long term, they want it NOW not when they are retired. And they don’t care about validity as long as the stock goes up. But it never does.
OTC investors are the SOLE reason the OTC exists and make scheme runners multi millionaires and the brokers are raking in the CASH like you can’t imagine.
The fact that tickers keep folding while at the same time new tickers emerge keeping the OTC with an average of 12,000 listed tickers on any given day is a cycle that is driven by investors who get in on one ticker, lose then rush to a new ticker that emerges to get in before that one explodes or the belief they will make back all the losses on all the previous lost investments.
The only ones who can shut down these scheme tickers (If the SEC does not change regulations) is the Retail investors who if they all took ONE month off from investing, Brokers would panic losing fees and selling debt shares on the asked they paid very little for and the tickers would fold with no money coming in from shares being sold, they would have to actually MAKE the company work to make revenue or go out and get jobs.
It is much harder to work to make an OTC scheme valid and IMPOSSIBLE to achieve the goals that scheme was planning to do in the pumped news. It is and easier selling just shares while your enjoying your new Ferrari and Lamborghini parked in your garage while on your new 50 foot sport fishing boat at your waterfront property.
Money is the root to all this, money, greed, deception and a lotto dream that investors never want to wake up from. But the reality is, the alarm clock rings, you wake up and go to your daily grind job watching the tickers on your phone every hour and all you see is RED!
Investors also turn on each other trying to convince others to buy the stock so they can get out and make a few bucks (Meaning $100 maybe less) just to get out even break even.
Investors are locked out of selling on the bid, those same investors lock out valid companies due to greed and then the investment community turns on each other with everyone with their finger on the SELL button thinking to themselves they will get out before everyone else.
Try telling that to the last guy on line of 30,000 people rushing to get to a WHO general admission concert.
You will never get in first, and those up-front get stomped on by the rushing crowds. Eventually a few make it to the front at the peril of 1000’s of others.
OTC diluted tickers are the same, 10, 20, 50, 100 billion shares in the float held by millions of investors that all believe they can get out before everyone else while any shares being sold or bought on the bid come from the debt shares not the public bid pool. How can anyone sell if no brokers will buy yours or anyone’s shares? Start your own OTC pump and dump is one way.
If investors STOP and save all that money over 5 years and save $20,000 and go to the casino and plop it down on one hand of black jack. You odds are better at the casino then waiting for your investment to be profitable. I guess also people like the action. One hand of black jack can take only 1 minute to lose your $20,000 or double up to $40,000 while the OTC allows a longer time to hope it pays off, the longer it takes before the scheme is shut down the longer investors can dream.
OTC is like playing black jack but at the $1 table and playing 20,000 hands $1 each. You may win many hands (just not 20,000 of them) you can play longer but when you win you don’t double up your $20,000, you only double up your $1 to $2 but get to play and lose over a longer period of time.
One way to guarantee a win is if you’re a raging alcoholic and you get a free drink with each hand you play for $1 and tip the waitress $1 you get a $10 drink for only $2 that is a sure way to make back some value but what is the cost of liver failure.
It’s the same reason people play lotto each week. If you have $1000 to buy 1000 $1 tickets over the course of a year, your odds are actually better if you save the $1000 and play 1000 numbers once per year not just a few every week. Spending $5 each week decreases your odds then if you bought $1000 one time per year but the reality is, investors know they will lose regardless. The problem buying all 1000 tickets once per year is you would not be able to dream for a whole year till your next $1000 lotto play.
Playing each week means you have 52 weeks to dream, wake up dream wake up. The dream ends up being part of the investors reality as it releases some chemical in their brains and becomes part of the their existence.
The sad part is maybe when they are lucky enough to get out of a ticker and make $100 profit they tell others they WON when they lost on all the others that far exceed the one win. A relative of mine went to the Meadowlands horse races, I said how did you do, she said SHE WON $50! I said really how, she replied on the last race she bet on a long shot a few bucks and won!
I said what about the previous 7 races, she said she bet $10 on race 1 and lost, $20 on race 2 lost, $8 on race 3 and lost, $20 on race 4 lost, $6 on race 5 lost, race 6 $3 and lost, race 7 $18 and lost. BUT amazing she tells everyone she WON at the track. She won $50 but lost $85 in the prior 7 races, I said you know you are still down $35 losing $85 and winning $50, She replied OH!
That is what OTC investors do and you can never ever win buying shares in the schemes with the goal of the investment to rise up to profitability. Investors curse the CEO, they curse the people running the scheme, they even curse out family who said it’s a sure thing.
The only people investors need to curse out can be seen in front of a mirror saying to the reflection “well you did it again you fool”
I hope one day someone at the SEC makes changes to STOP investors who cant stop themselves by regulations and ELIMINATE the DEBT CONVERSION rule that allows unlimited free trading shares to be diluted and generate at least $100,000,000,000 annually from investors who just cant help themselves.
ONE regulation change to STOP the 3(a)10 debt conversion to dilute would shut down all OTC schemes in ONE DAY! But then the same investors would bail on the valid tickers that can make them a good return because its just not enough of a return on your $100 investment and end up in some back ally playing dice. You can stop the markets but investor will always find a new scheme to invest in just for the sake of the risk, gamble and dream. Slot machines, illegal poker rooms, more lotto tickets?
More losses would continue outside of a cleaned up market. I guess if investors want to keep lose money willingly the OTC is the BEST place to do it.
SIGH!
Yes, I still have some Sriracha Stix!
Take this advice from FACTS!
Medman MMNFF dropped below $.02 from $6 but they are regrouping selling dead assets and have funding and are preparing to reorganize. Analysts say they can rise back to $.28 but I know most OTC investors want to invest $.02 and have the shares rinse to $10 per share but that wont happen. My advice is to take $200 and snag some shares and hold for $.10 and make 500% it wont be a wind fall but it will feel pretty good you actually MADE money on the OTC. At least MedMed makes money and has locations and cultivation NOT on paper but in reality.
Hey Suissac. I still think that they are maneuvering out in the California desert to scam a big lithium project with "disruptive potential"..heh heh heh They like to use that line. Never the less, their stab at the Realty market by spending money that they don't have on two low class desert hotels is another POS waiting to drop.
Don’t forget about BudLife.
From restaurant products, and paper products, to Sriracha Stixs, to Hydroponics, to Weed Delivery, to growing weed. Now, Real estate! It just keeps going on and on!
Interesting service a while back, drugs delivery service, not sure today
Also they have little cash according to the SEC filings and borrowing from toxic investors. I dont own stock in it but just came accross this . Im going to watch to see if they do a R/S split and then see if the stock drops in price becauce thats what ussually happens after the split then look at it again. I like CRTG The Coretec Group now https://thecoretecgroup.com/ they have a lot going on with LEDs and possible partnership for verticle agriculture , Silicon battery anode development program and CSpace a 3D volumetric product and semi conductor applications and CHIPS ACT $$ fundinding possibilities
Maybe 1/10,000 RS, 8K means they are YET AGAIN changing the business direction. I guess $100,000,000 annually from growing POT was just not enough money to even start that operation.... Why make $100,000,000 when you can buy a cheap hotel and make $100,000.
Thought I would simply check in and see what Chairman Jimmy is up to. Just when you think you have seen most everything, a few worthless filings full of disclaimers and additional cast members with similar backgrounds. One big happy family of crooks who use a CPA firm that introduces filings with 2-3 pages of forward looking statements. Obviously a firm that has no business either. None the less, no reeducation needed, the patient is on life support. The sad part is the family took your money and you can see them laughing while making deposits. Finally a dead horse.
12 billion shares , could be something like a 200 to 300/1 R/S from past experiences if that does happen .It looks like they just borrowed more money and diluted further . Just came across this stock today and looked at the SEC filings and 8K just filed.
New suckers being duped on the new pump news. what did you think?
And again today? What’s up with all the trading, anyone?
GLTA
why so many shares being traded today, anyone?
You guessed correctly.
It is my guess, this is going to no-bid and/or R/S. I would not be fooled by either. I am betting that if this does R/S, it will tank so bad people will be holding junk. Just my thought and opinion.
ONE trick. Because the 40% affiliates are NOT public they are not under the SEC radar. And that means they can say what ever they want to SGMD and SGMD can post it as valid news and just say WELL THAT'S WHAT THEY WERE TOLD!
When SGMD said they had a $10 million PPE order years ago from a 3rd party, all the 3rd party company that ordered the $10,000,000 had to do is give SGMD a $10m check even though it would not clear, SGMD can say they GOT a sale for $10m. And the 3rd party was in on the scheme.
Then eventually the check bounces but they don't say that to investors. That's not SGMD's fault yet they used the sale news to pump and share price. NOW we have to assume the $70,000,000 is based on the NEW LOI from the seller not SGMD. SGMD can now say SWEET $70,000,000 Like they did with the $10,000,000 bounced check. Since the liability is on the seller the $70,000,000 is likely not even real.
If I owned a vacant lot worth $10,000 in Arizona and had plans to put up a huge office building for $10,000,000 and said to SGMD, Give me shares and ill give you a LOI saying the lands value is $10,000,000 and is UNDER construction (a shovel in the dirt on an empty lot) that constitutes under construction. SGMD can pump the news and say its what they were told. That is why they do not consolidate with these 3rd party schemes, because SGMD would have the fraud exposed and be liable. NOW they can just say, its what they were told.
Since the shares are not moving on the news and staying at $.0001. $.0002 and will never rise because they are just selling the shares to debt people so cheap maybe $.000001 that this will likely be the end. Same as with BRGO that has shares at $.000001 and with 6 billion in the float you can buy them all for $6000! Not bad from another Stinky pinky that said they do $10,000,000 annually and you can buy the float for $6000
NICE!
yeah, I just signed a 10 million dollar recording contract, I just couldn't get the record producer to sign it, LOL!!
Just jumped in.
Saw the news yesterday.
So I got my ticket and got on the train.
Now just waiting for that 60 day feeling out period to expire so this train can leave the station.
Someone SHOW ME THE MONEY (Jerry Mguiar)->
Someone post ONE link or filing that shows SGMD has acquired controlling interest in any of the affiliations (or over 50%) so that those so-called huge $10,000,000 profits pass to SGMDs financials.
40% ownership of anything means they get ZERO benefit to apply to the ticker. LOI is pretty much the same INTENT as the LOI stands for, letter of INTENT that never ends up a firm deal, and if it does it will only be 40% offering no benefit to investors.
The fact is that nothing matters when the word INTENT is used. You intended to brush your teeth. Means you didn’t. You intend to buy a new car but could not afford the payments. When you buy a car you find what you want, the sales man writes it up and you give them a $500 deposit. You leave with the contract (now you have to find funding) and you tell everyone what you bought when you actually didn’t but the contract (LOI) says you did. Everyone thinks you now own a new car but you know you can’t afford it but others think you can. Eventually the bank says NO or you just don’t make enough to buy it for cash.
An OTC LOI is just like a deposit on a car you cant afford but you can show (before your denied funding) that you bought the car. It means nothing until you are given the keys to the vehicle the same as LOI about the SGMD LOI $70,000,000 real estate deal. NO KEYS no ASSETS!
If anyone on IHUB owned $70,000,000 in hotels and was approached by SGMD who said they want to buy your properties, what would you tell them? Pay me $70,000,000 (they don’t have)? Accept 70,000,000 shares with the thought they may go back to $1 per share and you can sell the shares for $70,000,000? (Aint gonna happen)
So what would anyone reading this agree to? You own $70,000,000 in hotels and SGMD has nothing to offer you to acquire those assets. You would not give it to them free correct? Or even let them rent to buy? SGMD has no employees or the talent to run those operations. They have no bank credit line of $70,000,000 to buy the assets and the cash they had is GONE offshore out of reach of SGMD because the shares sold make 3rd party members money NOT SGMD. When you see all the shares trade since the 200,000,000 float, $.20 days, NONE of the sale of those shares up to today benefit the company.
A LOI can be as simple as saying to the sellers you will pay them twice what they properties are worth but give them 30 days to get the funds (LOI) after 30 days the deal is DOA, But in 30 days they will pump and hell out of the news. I think people are starting to get wise but still not enough to stop these schemes. If 100,000,000 invested $100 each ($10 billion dollars) we could not only buy the hotels for $70,000,000 but also 100s of profitable business that need help, turn them around and put the assets on the books of the ticker and create a MONSTER company. the problem is for the $100 from one person is they believe if they buy SGMD shares for $.0002 and get 500,000 shares, if they go to $1 they make $500,000 (less then the legit investment) people chose to lose $100 on a dream of $500,000 then to invest $100 to make back $2500 guaranteed, Its all about GREED and LOTTO plays and the OTC is a a lotto where only the ticker sellers win.
It’s as if you sold your car to your neighbor for $10,000 and he restored it to $150,000 and sold it. Its his money not yours. SGMD is the same; they sold off debt shares and SGMD received very little. But unlike a car that IS restored for value, SGMD claims they will be restored maybe or could or they intend to. Same as if your neighbor said he intends to fix the car and if so it’s worth $150,000 on paper (with the LOI it will be restored) when it’s still worth only $10,000.
SGMD is worthless unless they complete a deal that benefits the consolidated financials. This is the same with most OTCs with a large float, large authorized and huge debt. If you search any given OTC ticker on the OTC website, the locations are always some PO box or suite and when you google the phone number its a cell phone. You can never visit the locations, see any company operations, buy any of the products they claim they own under that company ownership and you can never sell the shares at a profit.
Remember! Even IF SGMD acquired the $70,000,000 assets 100%, it would have NO impact on the shares especially with 6 billion + in the float. Even if they wont the LOTTO $100,000,000 cash and reversed the shares back to 200,000,000 they would have to issue a cash dividend to get anyone to want to buy the shares. But why waste $ on a dividend that only helps shareholders not the company, they lose on the dividend and like I said. THE MONEY IS THEIRS NOT YOURS, they get is ALL and you cant have ANY of it.
So someone please post a fact about assets and consolidated financials not some hotel LOI that is worth as much as a $500 "look what I bought" car contracts paper.
They MUST RS and I'm guessing its will be 1/30 so they can bring the 6 billion back to 200,000,000 and the stock goes from $.0002 even x 30 is only $.006 and then soon after the pumpers will pump it back up to $.20 but any retailers can FORGET about selling on the bid because the new suckers buying in will be buying shares from brokers obtained from the market makers who get them directly from the company and not on the bid sellers.
ISNT LIFE SWELL!
I played this one shortly a couple a years ago in the .15c-.20c range - wow how it has hemorrhaged since then.
LOI makes me LOL. What a crock. Just like the many crocks of crap Mr. Chan and the Company has "invested" in for many years. Each one is uniquely suited for the Pumper/dumpers once again to infest the SGMD site with BS and hype. Makes me laugh --- A Holiday Inn in Victorville, CA. Have you ever been to Victorville?
BEWARE the umbrella or affiliates! Here's how it works.
Although SGMG has a LOI, and I can find a skyscraper in NY selling for $800 million and send them a letter saying I want to buy it for $2 billion and they say OK sold! I say OK give me a little time and well enter into a contract. NOW I have a letter of intent (LOI) and sell 100's of millions of shares for cheap and when I attract more suckers who see the PR that has ZERO do with Marijuana (I thought they made $50,000,000 in MJ) yeah sure! So this is just a LOI anyone can get as long as you send the letter even though it goes in the trash, its still a sent LOI signed by the public company CEO not the ones on the other end. $70,000,000 SGMD does not have and shares that are worthless, SO how are they going to acquire those assets? A worthless LOI! Got to hand it to the schemers who pull Jimmys strings, they are SMART and making MILLIONS from sucker investors.
I guess the ones selling the building would send a letter saying SURE you can buy it for $2 billion when they only asked $800 million so anyone would agree to that and send a letter saying DEAL!
CAMON RS!!!!!!!!!!!
Affiliate or umbrella or even a worthless LOI,
It allows scammers who don’t want to or can’t go public for what ever the reason. They latch onto a public vehicle and acquire free trading shares that promise to jump start the liquidity and price but when they pump and stock UP and sell off all the free shares they received (usually in a day or two or a few months), once sold they vanish and leave the company and CEO to deal with the diluted shares and eventually the huge drop in share price and then people ask the CEO what happened to the HOT news and plans.
In SGMDs case they are just using another LOI but this may be the last time before the RS or they just close up the ticker. But as long as people buy these shares they will keep adding more to the float.
Umbrella,
Its the same as a pump and dump but the pump is from non company affiliates who told the CEO if they issue then shares they will put the alleged company under the public vehicles umbrella. What that means is a scammer who can’t go public can just form some new LLC (private company) that is not real but a simple website to look like a giant company, start a PR pump and dump, send out the pumpers to chat rooms, sell off the free shares they got from the CEO with the promise it will make that public company a huge success.
UMBRELLA is just a way scammers can sell publicly traded shares and have clean hands and make as much money as they would being a public pump and dump only they are not the ones public yet they market that their plan is part of the public company.
Mushrooms Inc. (OTC: MSRM) Announces Plan for Acquisitions and Vertically Integrated Business Development by Partnering with diversified Mushroom Market Leaders
CEO Kimberly Carlson shared, "I have been fortunate to connect with amazing pioneers and innovators in differing areas of the Mushroom Market in the US and abroad. Three realities have been consistent with the people behind the businesses and their processes. One is that this business model can bring like-minded companies together in order to benefit and fruit from a shared network under the public umbrella.
what broker are you using that allows you to short stocks under $1?
I wonder why TGRO isn't moving with this stock?
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Email: info@sugarmade.com Phone: (626) 346-9512
OTC MARKETS - QUICK LINKS
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SEC (EDGAR) - (OTCQB:SQMD) FILINGS
SEC FILINGS
On January 23, 2019 Sugarmade, Inc. (the “Company”) announced the signing of a Letter of Intent (the “LOI”) to acquire a retail location of Washington State-based Hydro4Less. The LOI outlines the general terms of a possible acquisition transaction. Pending the signing of a definitive agreement, Sugarmade will issue Five Million Dollars ($5,000,000) of its common shares at a price pegged at Ten Cents ($0.10) to the owners of Hydro4Less in exchange for the single retail operation, not including inventories on hand.
Additionally, via the pending transaction, Sugarmade will gain an option, at an acquisition price to be determined later, to purchase two additional Hydro4Less retail operations, which are currently producing in excess of Twenty Million Dollars ($20,000,000) annually. The single location acquisition that is the subject of the LOI, is expected to produce approximately Five Million Dollars ($5,000,000) for calendar year 2019 and is currently operating at a profit with positive operating cash flow. The Company believes the single location the acquisition would be accretive to earning for Sugarmade. Should all three acquisitions close, Sugarmade will increase its annual revenues by approximately Twenty Five Million Dollars ($25,000,000) million per year.
Hydro4Less is significant supplier to the growing hydroponic cultivation sector. Neither the Company nor Hydro4Less conduct any business involving the sale of any cannabis product or relating to any products containing cannabis.
BUDLIFE CANNABIS STORAGE
World's First And Only Patented Storage For Preserving Cannabis Flowers. Maximizing the Power of Medical Cannabis.
SUMMARY - Sugarmade, Inc. (OTCQB:SGMD) plans a leadership role in the market for cannabis storage via introduction of patented storage containers that utilize modified intelligent atmosphere packaging to extend the life of cannabis, preserve terpenes and THC/CBC levels, prevent spoilage, and reduce dangerous pathogens.
Authorized Shares | 1,990,000,000 | 12/31/2018 | |
Outstanding Shares | 646,888,318 | 12/31/2018 | |
-Restricted | 454,296,711 | 12/31/2018 | |
-Unrestricted | 192,591,607 | 12/31/2018 | |
Held at DTC | 184,493,775 | 12/31/2018 | |
| Float | 190,091,607 | 12/27/2018 |
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