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One of the many wonderful things about our country is that you are free to believe whatever you want, and do whatever you want with your money. I honestly wish you the best.
As I said before, I went down with the ship on a stock just like this, losing far too much money and even more ego in the process. As a result, I feel it is my obligation to warn others when I see a similar situation. That is my motivation. Nothing more. I am not short. I have not had a short position in this stock. Or long. I plan to short Fan Pass when they launch and sell toxic debt, however. Nothing I have said is intentionally dishonest, and I think my posts have been factual.
We'll know more in a few weeks. We'll see the share count, and the status of the debentures, and anything else they are willing to say. I suspect we will both find nuggets that reinforce our individual cases. But I expect you'll see the share count, and the number of debentures converted, has soared. And the debt will be even higher, indicating they aren't paying it down.
My reason for being here is not relevant to the discussion. It's typical. Someone posts FACTS you disagree with you and question their motives. I've already said I'm not short. Perhaps I'm just a nice person who doesn't want to see more people get screwed?
And please, show me just one "up" these brothers have had.
Everything they've done has been a down.
I used to have a MySpace account, so I have years of social media experience too. Give me your money!
C'mon.
I'm sorry you don't understand.
It's all there in the filings.
"Convertible debentures with maturity dates prior to June 30, 2017 are now due on demand."
Quarterly report on Form 10-Q, page 14. It's been that way for several quarters. Lots of debentures are already due, and none have, as yet, been called. Why?
10-Q, page 20
The Company derives the majority of its financing by issuing convertible notes to investors. The investors have the right to convert the notes into common shares of the Company after the requisite Rule 144 waiting period. The notes generally call for the shares to be issued at a deep discount to the market price at the time of conversion.
And here's this:
During the six months ended June 30, 2017, the Company issued 599,157,030 shares of common stock to various convertible note holders for full and partial conversion of the notes.
five hundred ninety nine million shares.
At a "deep discount" to the market.
In just six months.
Wanna bet that number nearly doubles in the 9/30 report?
Everything I have said has been accurate.
nothing you say has been.
For weeks and weeks you have been predicting a move up "soon." All that has happened is more and more and more selling.
I am right. I have seen this all many times before.
You are 100% wrong.
And that is a fact.
I don't believe the end is near.
I do believe a turnaround is more and more remote (I say impossible).
I think we bounce here, between $0.0001 and $0.0002 for weeks, until the brothers decide that paying auditors and filing with the SEC isn't worth the cost.
My expectation is they then find a way for the new entity to absorb the old entity ... a transaction that won't get common shareholders even a penny.
This has already been explained. I'm sorry you don't understand it.
The converters do not expect to be repaid. They will make back their investment, and then some, based on converting and selling shares. They have a built-in discount. They will continue to convert under the bid and sell into it. They will do this until the company reaches its limit for authorized shares, and THAT is when the fireworks start.
So yes, they will wait. They are fully prepared to be patient. They will get their money. They are the hammer. You are the nail.
you've been saying that for months.
This underscores why Fan Pass is being spun out.
They have squeezed all the toxic debt they can from FDBL. The bottoming share price, burgeoning debt, and be honest here ... non-performance ... has left FDBL as an entity without any options for raising capital. As the spin-out announcement proved, with the stock going quickly from $0.0007 to $0.0001 AFTER the news ... PRs no longer matter. And please, nobody is buying this turd.
So creating a new entity, at a higher share price (which means fewer shares out, which implies a reverse split structure), they can sell new toxic shares. They can also have Fan Pass bill FDBL (and by extension, the brother's sons) for development.
But ultimately, for FDBL, there are only two options:
1. Large reverse split, so they can issue more toxic debt
2. Shift the focus of investors to the new entity, put out PRs on that, stop putting out PRs for FDBL (as they have), and let it die. Six, nine, 12 months from now, you'll see a filing that they've discontinued development, or maybe they'll have Fan Pass acquire FDBL in a share swap (you get nothing), as they let that entity just die.
There.
Is.
Nothing.
They.
Can.
Do.
Hope is not a strategy.
They have already pledged everything from the domains to the trademarks to the mints in the urinal. The stock price is too low to issue more toxic debt. And nobody... NOBODY... Is going to buy an empty bag of toxic debt.
And that is the point.
These deals are structured so that repayment of the debt is a cherry on top of the sundae. They make their money from selling the underlying convertibles. They make more money shorting the stock until they convert. It's rare that a startup-type company, meaning a company with negligible revenues and nothing close to profits, ever pays back the notes. They structure the deals assuming they don't, and make plenty of money off the converts.
That's why there's so much selling. They wouldn't even consider holding the shares. Convert, sell, rinse, repeat.
I'm sorry that you don't understand how it works. I have participated in financings, personally, and have been involved in many.
If the toxic lenders desire, tomorrow they can show up and take the keys and sell the assets, and the company disappears. They have all the control.
But if they do that, what would they get? The assets in aggregate are worth a small fraction of what they have given management. These lenders aren't operators, and certainly not developers.
Instead, they can keep converting and selling, all the while keeping the ability to "call the debt" in their back pocket.
And that is what they are doing. They have no interest in accelerating things. It would only cost them money.
If they took management to court, management would just file bankruptcy. It would cost the lenders money they know they'd never get back.
They didn't. It got added to the pile.
Most of the notes can either be repaid or convert at progressively lower discounts to the VWAP. It's in the filings.
the toxic converters hope they do.
Right now, they are (I think) converting at roughly $0.000065, and selling for roughly $0.00012.
If they can convert at $0.000065 and sell at $0.00018, they'd be even happier. And you'll see a flood of more converts.
These converters know the share structure better than you do. Some of the notes could have been called on demand at any time for several quarters. They haven't been. Instead, these guys know they can just keep biding their time, dripping out stock a little at a time making their built-in profit. And that's what they are doing.
Friendable has already pledged "essentially all the assets of the company" per filings.
They have pledged all their trademarks, all their intellectual property, all domain names, etc.
And per filings, they have pledged the assets of Fan Pass too.
They have nothing left to pledge for a debt offering, or any other vehicle to clean this up. The toxic lenders have them by the short hairs.
This isn't something that can be changed. It's contractual.
I've been following stocks like this forever.
It's much more about the capital structure and management than news.
Stocks with tight cap structures soar when good news comes out.
Stocks with toxic structures can release any news they want and the stock will be met with more selling than buying.
it's because people focus on the price of the shares, instead of the value of the company. That's a mistake.
The number of shares keeps increasing, and will continue to increase. Wait until they see the outstanding share count for the 9/30 report, along with the potentially dilutive share count. It will stagger them.
it's accelerating, because the stock has caught up.
What I mean is that the converts are priced at a discount to the average price on a trailing basis. The stock fell so far so quickly that the average was actually higher than the share price, so converts had to sit idly waiting.
Now, we've been sitting at effectively $0.0001 for enough days that it is the new average, so they can go back to converting their shares at a discount to that price and immediately selling. It's built-in profit -- a bird in the hand -- and there is a LOT more where that came from.
I think you'll see the selling accelerate from here. It's a mountain on top of this stock preventing any upward movement no matter what news is announced or how many shares the handful of individuals still believing buy.
For perspective ...
if his average price of those shares was $0.0007, the price at which they announced the "immediate" spinoff months ago ... that would have cost him $269,500.
Today, that same position is worth $38,500. If he can sell it.
Meanwhile, the market has continued to climb rapidly.
Start watching
correct. That's not the case.
That which has already sunk to the bottom of the ocean cannot be sinking. It is sunk.
it already has toxic debt. Alpha was promised a significant chunk of the new shell (and that's all it is, a shell) at a steep discount. Just like with FDBL, they will sell these shares immediately.
Whatever price it starts at, after a massive reverse split for FDBL holders that is required based on the respective share counts for each entity, the price will plummet rapidly. It has to. It's built in.
I see it as "bouncing along the bottom."
And I don't see it changing, one way or another, for several weeks.
We don’t need to show anything. The USPTO and federal trademark laws inherently say that Automatski can not reach the United States with their Global Initiative of the “Worlds Social Network” aka FRIENDABLE without a BUYOUT!
36 million is the tip of the iceberg.
There are BILLIONS still to convert and sell, and the converters don't mind selling at $0.0001.
While the price really can't go much lower, shareholders' ownership continues to diminish. Where they had xx% of 1,000,000,000 six months ago, now they have xx% of 3,380,000,000 and soon it will be xx% of 10 billion. Then 20 billion.
these "smart people" have watched management dilute them, driving the share price from $0.03 to $0.0001, a 99.999% loss during a raging bull market.
$10,000 invested here is worth less than $60. Catastrophic.
And since August 3, 75 days, management has said NOTHING while the stock price plummeted from $0.0007 to $0.0001.
I think it's obvious who the smart people are. They don't own any of this dumpster fire.
I think most of the shorts have made their money and moved on. It's not like it's expensive to cover here.
The beaten-down longs are just looking for a boogie man. "Blame the shorts!" is more palatable than the truth, which is "blame management for a) doing nothing, b) lining their own pockets, c) saying nothing, and mostly, d) doing a ton of highly toxic financings." What we have here isn't shorts. It's a flowing river of converts, constantly converting discounted paper into free trading shares and dumping with impunity. It's been that way for months.
How is it a joke?
There are at least 3,388,135,026 shares issued and outstanding in FDBL.
There are only 400,000,000 shares authorized for Fan Pass, and usually you don't issue all that you have authorized.
Simple math says there is no way they can do this 1-for-1.
They really can't do it 10-for-1, or even 100-for-1.
It's a reverse split, disguised as a spin off. That's just simple math. No speculation. There is no other answer.
I know. That's why I'll short it.
But they don't see these as companies. The brothers see these as public vehicles to raise money by printing shares and selling them at a (deep) discount to toxic lenders to maintain a $400k salary. None of these businesses ever turn into a business. None ever generate even revenue, let alone profits. It's just a stock printing scheme.
it's not speculation.
There are 3.4 (3.38) BILLION shares outstanding. Actually, I bet it's a lot more, in FDBL.
Only 400 million shares are authorized in Fan Pass.
So that means if they maintain a similar valuation, it's 1 share of Fan Pass for every ~9-12 of FDBL. But if they do that, they can't raise any more money.
So add a zero. That means Fan Pass would be worth something like $0.001, and you'd get one share for every 90-120 shares of FDBL. That's not enough.
Add three zeros ... now Fan Pass is worth $0.10, and you get one share of Fan Pass for every 9,000-12,000 shares of FDBL. But why would they want a ten cent stock? Let's add one more zero.
That's a $1 stock, which they can then sell at $0.50 to toxic lenders with warrant coverage to raise money to pay their salaries, and you get 1 Fan Pass for every 90,000-120,000 shares of FDBL.
That's the reverse.
It's simple math.
Fan Pass is the reverse.
You know it.
I know it.
Everyone knows it.
It's already been proven ... billions of shares in FDBL, only 400M in Fan Pass, and most of those earmarked for greedy management and toxic lenders, so it's going to be a 1 for 1000 or worse sort of distribution. That's your reverse.
And it's painfully obvious what happens next. Toxic lenders, more toxic debt, and no product ... obvious crater.
Just like FDBL.
I'm not short.
I haven't shorted this stock.
If it reverses, I will. When Fan Pass trades, and I think it will, I'll short that.
But I'm not short FDBL right now, nor have I been.
If I were, man, what a great short it's been.
And it would be painfully easy to cover.
why would anyone who has been skeptical of this story be desperate?
The stock has traded between $0.0001 and $0.0002, mostly at $0.0001, for a month! That's substance.
The volume continues to decline. That's substance.
Management has been silent for six weeks, while the stock has gone from the pathetically low $0.0007 to the absurdly low $0.0001. That's substance.
They have no product to sell.
They have no money.
They have not confirmed any relationship with this ICO, which may or may not be a scam. That's substance.
They are swimming in debt, with no means to repay it. That's substance.
They have horrible corporate governance, with two brothers as the management, and the board, no oversight, no experience, high salaries, years of no performance, and countless related parties further siphoning off shareholder assets to family members. That's substance.
They have the worst capital structure I've seen in 30+ years of looking at small cap stocks. Truly ghastly. That's substance.
Nobody thinks this garbage is worth TWO HUNDREDTHS OF A PENNY...WOW...
The only people desperate here are the longs, watching this stock not really trade at 0.0001. If any of those on the bids were REALLY interested, they'd raise their bid.
But for 20 consecutive sessions, they haven't.
Despite all the misleading noise from those wanting to make this seem like a successful enterprise.
that clearly says that any alleged NDR is behind them, and there are no prohibitions on speaking. I have been through 100s of financings, of all kinds, and while certain aspects may be embargoed, I have never seen a financier ask for a blanket NDA. Such agreements are illegal. Public companies are obligated to disclose material events to shareholders, and financiers cannot bar them from doing so. And any financier wants publicity, to increase the value of the stock.
It will be north of that, outstanding, when they report their 9/30 numbers, if they actually report them.
And the number of potentially dilutive shares will be astronomical.
And no matter what anyone says, they aren't going away.
That share count will only go up.
It will never go down, unless they do a reverse.
"... and are pleased to announce its completion," continued Rositano Jr., CEO.
A company doesn’t announce. “Ok shareholders we think we have a buyer!!”
Again, a company doesn’t have to share with shareholders what company they hire to improve or develop their product