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Now REALLY good info would be if you could procure even in a general way from your source the terms of the deal. In the money, out of the money, amount, etc.
Having equity financing at a discount to even these depressed prices would suck.
There is only one major wild card near term, imo, and that is equity financing. I'm now positive that it is coming, the question is how much and on what terms. The company looks great fundamentally with current figures on share count, but if they decide to increase A/S (it looks like the O/S is already being increased per the charts) to facilitate financing then we might not be so undervalued. I bought in at .36 and I hate seeing it drop like this as much as anyone, but I'm in no rush to lower my basis yet. Great companies can be poor investments if their shares are abused by people only out for themselves.
I don't think, when we do start to turn around, it will happen overnight, giving us plenty of time to jump back in. Too many shares and too little exposure.
imo it is trading very strange compared to previously, like watching a different stock. Not sure what to think about it yet...Looks like Pope might be keeping pps above .20 for the time being.
Could become a good trading stock if that is the case...buy in the dips into the teens and sell with Pope at .20 or .25. Ride on free shares if you are long.
I think a good additional week or two of chart history should let us see how it will be trading from now on.
LOL...I thought something like that too when I saw the pictures of Leo and a young Nolan side by side. lol
I actually think the movie could be HUGE for uwink, even if its not in the movie itself. Of course everyone will want to know what he is up to now, and I think Uwink will get a lot of mentions in the press. Nolan is a saavy business man, he will leverage this very well I think.
I suspect there could be some more WMB-type situations coming up with a lot of these smaller regional banks expected to fail. Will be keeping my eyes open for a fat pitch like that.
Thanks for sharing your CDE/monsanto plays
"Looking at the financial report of Genesis, it is not clear why the company had to settle for such onerous terms to complete the financing...Given that the company has a solid financial footing and is nicely profitable, the terms of the Note financing, especially the large number of shares that are available to be converted, seem like the lenders struck a better deal than the company."
My sendiments exactly.
Cavico is a real company, but I share your concerns about their priorities. I'm sure WSM knows this company better than me, but I've been doing a lot of "catch up" DD this week as well.
"Scam" is a strong word, I don't think I'd use it. I do think the actual Cavico people on the ground are pretty clueless about US capital markets which is pretty typical for these overseas reverse merger companies. This leaves the shareholders vulnerable to people who want to do nothing but print out shares for equity financing and their own gain. To the overseas companies it sounds like a good deal, shoot, no more bank loans? No paying cash for financing anymore? I'm not suprised they always jump at it. Not trusting Henry or anything he touches too much either...turns out he was dragged in front of the US senate a while ago to testify about his misdeeds regarding a day-trading scam he ran in the late 90s. Since then, he has become a faithful Republican campaign contributor and thus has stayed out of trouble. Not liking him too much at all right now...
As far as having any "say" in this company, I can assure you we do not. But that's not atypical either. These overseas co.'s, esp in China and the like, do not have to abide by US securities laws and can promise the world and just walk away without repercussions at any time, and even list on another non-US exchange. (its happened before). I was just talking to someone about this and he said its: "Like buying a ticket to a carnival sideshow, knowing that the exhibits are fakes, but somehow not caring, and having a good time pretending otherwise. "
Its perception, not reality, that counts. Shareholders of Blackstone BX also have absolutely zero say the way the shares are structured also, but the perception of owning the company is what moves the price up or down. No matter how many shares Carl Icahn buys of BX, he could not do squat.
Same thing with these reverse merger shell companies. But that doesn't mean the price can't follow a path as if our shares really were ownership.
So I'm not really worried about having any "say" or "real ownership" in the company...What I am worried about is how much equity financing they are going to get and when, and are they serious about uplisting or are they just going to use promises of it to string investors along, like GTEC (another CCG client) did? The price of shares is determined by supply and demand, and its been heavy on the supply side for a while now. Will this last? Who knows.. Also, frankly, it will be hard to uplist with so many shares, and with no independant board members yet that a senior exchange would require.
My two cents for what it worth is to consider CVIC a very speculative buy for now. I will continue to buy shares, but cautiously. I'm not seeing a reversal in the downward spiral yet. They've put out some great news but the shares just keep on coming.
Wow, it pretty cool to hear stories like that.
Netting a stock like WMB that early is my dream.
The best success I've had so far(I'm in my early 20s) was force protection FRPT which I bought for a buck and some change on the otcbb and sold at 30 bucks on the nyse (fortunately I sold). I've had some success since then, and some heartbreaks too (like GTEC). I am still long CIWT which I bought at 1.65 and it just hit 6.40 the other day. Others that could take off one day imo could be UWKI...I have a small position in CVIC too, but it reminds me too much of GTEC for me to put too much in. Hey, its better odds than the lotto, lol
But that FRPT experience has had me hooked, looking for the next FRPT. But now I think I'll trade that benchmark to WMB, haha. So you're saying that those stocks were on the big boards already when they were that low? I thought if a big board stock goes under a buck for too long it gets delisted or something.
Assuming worst case scenario is def prudent with these POS pennies. Are there any at all that you are liking right now (relatively)? As in taking a non-trading position
Seems like Henry has been in a bit of trouble before:
NASD Regulation Sanctions Providential Securities, Inc. And Bars Principal, Henry Fahman
NASD Regulation announced it has sanctioned and fined Providential Securities, Inc., of Orange County, CA, $115,000 and has permanently barred its Chairman and CEO, Henry Fahman, for violation of numerous NASD rules and federal securities laws.
Yeah I wasn't talking even just about the german based companies, but just the companies where the germans are involved in trading it period, no matter where its based. A lotta loopholes in the brokerage systems.
Also gotta love those mining companies based in British Columbia who just bought a whole bunch of land in singapore that they estimate has a gazillion tons of gold! lol...
These Chinese OTCBB co's make ya wonder too, check this out:
http://chinaotcplayer.blogspot.com/2008/06/update-bjgl-drops-bombshell.html
An investor's worst nightmare
Gotcha...Well I'll be watching it to see how it does, good luck with it. If it pans out the way you hope then make sure you let me know the next company you jump in, haha.
As far as GTEC, I am still holding shares but I am praying for a decent pop sometime (even with the financing I think its still possible to get one or two of those) at which time I'll cash out and maybe take another look at it in 2011, when it looks like they would look more seriously at uplisting. There are too many other real Chinese co's that really are close to uplisting for me to have a large gamble in diluting-azz GTEC.
Yeah I'm waiting to see how things shake out with the new trading range. Its looking like Pope is keeping the PPS above .20, which can be good (for preserving capial) or bad (meaning they have already started selling), but we will have to wait till the next financials to see how much of their notes they sold. If they didnt sell any that would be a good sign but I'm expecting to see the dilution start already. Doesnt hurt to be cautious.
Yes, I did look to see what else you were in, since you have shown yourself to be one of the only level-headed rational ppl on the GTEC board, and I came across DRJP. Frankly, the stock scares me. I wasnt specific or anything out of respect.
My concern with their growth is that there is probably a low ceiling for an infomercial company, which is a declining industry. I learned this the hard way through NLS, who found infomercials for their products more and more costly on the TV channels end, and less and less response on the customer's end. A lot of TV channels are discontinuing infomercials.
But that's not my main concern, its the dilution you mentioned, while it seems to pay for itself, is just unabashedly constant. I would have a really hard time trusting management to work for shareholders. Plus one of my rules is not to invest in any company that pays stock promoters...If they need stock promoters to create a market for their stock which they in turn need to issue to survive, then its my opinion they probably have no business being a public company and should seek out ventur capital. This is a rule i made for myself after I learned the hard way. I am trying to formulate some more rules to avoid another GTEC fiasco. Have had some big winners, but these losers I gotta weed out by improving my methodology. I will be watching DRJP though. If I ever feel I can trust them, I might invest. Not too sure about the ultimate potential of infomercials though.
What is your sell point for DRJP?
Well looking on yahoo, they've had a steady stream of PR's but it keeps sliding down all the while. We'll see. I don't mind though, just gets cheaper and cheaper for me. I'm a bottom feeder.
Have to say the charts are not looking too good going into next week. But if we get to the point where, assuming full dilution, we are below current asset value (about .22 cents) then fukk the charts, I'm jumping in again. But I've seen some otcbb stocks get some pretty crappy valuations, so I'm not saying a certain valuation will be a PPS floor by any means yet.
Canadian and German scammers are the plague of the OTCBB. Major loopholes in both countries allow for some really nasty stuff on the otcbb market. If you ever notice a disproportionate amount of canadians or german nationals in a particular stock, consider that a red flag. No offense to the legit canadians or german investors out there.
Thanks Carl, those are my thoughts too. The amount of dilution is severely disproporionate to the benefit to the company. I would like to see through Long's rose colored glasses and best case scenario, which is that Pope would choose not to dilute until the PPS is much higher, but I don't see that happening. Pope chose .20 and .25 cents for a reason, and they even authorized tons of more shares in addition to that.
It is clear they are being very cautious and plan on selling a good portion of their shares as they are able to. I expect we will see this in the next financials, that they have wasted no time in selling. The freefall decline the other day was halted rather artificially right above .20 and I think Pope will keep the PPS at least above .20 so they can convert their notes, otherwise it would go lower. If that is what they end up doing, then I will probably buy and flip between .18 and .22 if I am lucky enough to get that trading range. Need to make up all this money, lol, and GTEC aint gonna help me on their own until at least 2011. If we ever do get a pop up in the .30s I'm going to cash out period and just watch.
I know I am...have some cash ready but trying to guage where this thing is gonna bottom out. I'm thinking low .20s...but we'll see.
Is this what your anonymous source expects also?
Thanks, I'll let my boss know about this extra time you authorized. ha
Gotcha. I knew that. (still waking up) :)
"additional 50 million shares"? I'm trying to remember where I should be familiar with this number from. what's the deal with the 50M?
No, I actually agree with you. It is a cartel, but I hold back from discussing my viewpoints on certain of these things because of labels ("loaded language") like "conspiracy theorist" that get thrown around.
And this is my 15th post for the day. Talk to you guys tomorrow.
My thought process exactly. I bought some at .36 and am now wondering when I should reach for another scoop. I don't want to get burned short-term, even if I know its a longer term hold.
My guess is like WS said, we could see lower .20s before we bottom out. That would be a nice fat pitch, like shooting ducks in a barrel. Waiting to see if we get there...
It wasn't a large buy, nevermind, lol. I sometimes forget when I'm looking at my pennies as opposed to my other holdings. There was an insider buy in April 22nd of 20k shares. That small amount doesn't really signify anything I'm sure. But better than nothing, lol
You are right, there are some positives to all this. I just feel mislead by the communications and statements the company has put out. That leaves a bitter taste in my mouth.
That's good to hear the mess was a result of being in over his head rather than some scheme. I'm not religious at all but its comforting you gathered that he has some kind of value system running in his blood, ha.
What do you make of the large insider buy at PRVH? I was trying to figure that one out. I wonder if the ultimate goal of that or EBIG is to reverse merge themselves and cash out nicely. I see those business models being sustainable only for a time. GTEC had the same business model before it reverse merged into Genesis Pharm. Turn out some of the companies it was spinning out became better investments than GTEC itself, who woulda thunk it? lol.
Yeah, its crazy. Oil futures are the new bubble and it could be worse than the home bubble. This is what happens as long as the Fed just prints money out to fix everything and bail people out. The fatcats new money needs to flow somewhere before the inflation it creates devalues it, so it flows into an asset class and creates a bubble. rinse, repeat. Maybe one day the Fed will get a backbone.
You are right, it is getting to rediculous levels. I think a lot of the old shareholders have given up and are writing off their losses or something.
That's good to hear. As I have been reading more on Cavico, Henry, PRVH and EBIG (complicated story for someone new to everything to unravel), Henry just strikes me as either completely incompetant or fraudulent. Well maybe not "fraudulent", but less than forthcoming. This makes me very cautious with Cavico but its good to hear from someone familiar with the company. I was thinking about investing in EBIG also (I like their dividend policy), but they keep hiring pump-and-dumpers and giving their stock out so I've nixed that for the time being. Down to Cavico, where I've finally entered my foot in the water. *fingers crossed* Did you know Henry from working with him on this sort of business or was it unrelated?
Well to uplist they will need to appoint at least 2 independant board members. Happens with the Chinese ones when they uplist too.That's what I was getting at, I hope they uplist some day.
Yeah honestly I wouldn't have even touched this on the pinks. I hope your very bullish assessment of this company is what comes to be, but for now I am treading with caution. GTEC like Cavico is also a great company fundamentally, but unfortunately in GTECs case has greedy pigs controlling its share structure, so I am still smarting from that experience. I'm reluctant to jump into any more OTCBB stocks with 100s of millions of shares authorized. We were told that all ties had been severed with the old GTEC mgmt too, due to their frivolous lawsuits, but the new guys are no better, they just keep issuing more shares even though the company has plenty of cash and no debt; with Crocker of CCG leading us on all the way with lies about RS and uplisting (there is no reason not to, the company is making 100m revenue this year).
I will probably just add slowly and cautiously here until they do a RS and put independant board members on the board in preparation for uplisting. That's my strategy. Always think you're undervalued until the company doubles its shares on ya.
GLTA
Yeah I haven't really seen any pumping yet either, that part of my statement was in response to GMVN saying the equity firm was plaining to pump, at which I'd have to say they must not be too reputable.
Cavico sounds like a great company and I have opened a small position, but if there is one thing I've learned is that shareholders do not always benefit from growth and profits. I wish Cavico had more upstanding people bringing it to the market than Henry and Crocker (as in full of crock) CCG.
I also do expect some equity financing here soon, they have negative cash flow from growing so rapidly (which is fine), I just hope Henry and the other puppetmasters are more prudent in dilution than GTEC's puppetmaster Gary Wolfson. I don't have my hopes up since birds of a feather flock together, but the risk/reward is worth me nibbling on the stock. Just nibble though.
"reputable" and "pumping" don't go hand in hand, typically. Pardon my skepticism, but I've seen a lot in penny-land. IHUB has a lot of scam stocks, just look at the front page, where stocks are pumped by people who actually pay money to post more than 15 times a day about their stock. (paid pumpers hired by stock "promotion firms"). Frequently IHUB boards are started and run by such people.
It is good to get in before the pumpers start pumping, like what we seem to have here. But don't get greedy and take your money out after you get the return you want and if you want to take a long term risk then just ride your free shares.
Hopefully they run a pumping campaign before the equity stake is announced, for that is usually not good for the share price.
CCG investor relations, I have learned the hard way, are very disengenuous and have been tied to shady auditing firms, and facilitate diluting on a massive scale all the while telling investors lies about plans to uplist and whatnot. Not all their clients are bad investments but use a grain of salt.
meaning, would the firm issue highly dilutive convertable notes or warrants, and/or increase the A/S?
PPS usually plummets on such news unless the convertables and warrants are out of the money (excercisable above market price) which is unheard of for pennies.
GTEC, another CCG company, plummeted this week because Pope invested 30 million and issued hundreds of millions of new shares. This is why I hate the OTCBB. You can just print your own money in shares and the equity firms and companies make out but leave the retail investor holding the bag.
Would this stake be very dilutive?
No, its not pissing it down the drain at all...the way the deal is structured, its a guaranteed investment for pope. If you guys are so gaggled by the 30 million dollar figure then I'm not sure you grasp the dollar amounts at work in the penny game. Case in point, NIHK was a company making a couple hundred grand a year, not too impressive....but they got a 50 million dollar financing deal structured much like GTEC's that has weighed down the PPS for years. Its not risky at all for the financing co.
But its fine, you guys can think what you want about GTEC. I get the feeling even if they increased A/S to 2 billion next month in another financing deal, many of you guys will still be rah-rahing it. Good luck with your stocks.
Also as a side note I get the impression that most of this financing won't go toward this new drug that they mentioned in 07 and was supposed to be out by now, but for the improving of facilities they mentioned, whatever that means. GLTA
Beware of these people:
http://www.pennystockpromotersgroup.com/disclaimer.php
^I found that buried in a IHUB moderators profile from a stock some other GTEC investors are in. This is why you have to tread with caution. I wasnt comparing GTEC and SWVC/DLAV, so much as the mindset that gets one in bad investments. Most GTEC investors are long in stocks like these also and it makes you wonder is GTEC really an abherration?
Don't listen to anyone with a paid IHUB account or people who only rah-rah stocks and ask you to slap the ask. Sure signs of a scam. This is my last remaining post for the day and I wish you all much luck. Well, those of us regular investors. The pumpers can shove it.
Hopefull there will be no more dilution for GTEC. *fingers crossed*
This is the kind of wistful thinking that makes people buy stocks like DLAV and SWVC and other front-page-of-IHUB penny scam-stock diluters that I see you and others on this board have fallen for. A good rule of investing is to assume the worst, not the best. Its wolf eat wolf out in the markets. Wolf eat sheep in penny-land.