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It was post
http://www.investorshub.com/boards/read_msg.asp?message_id=12947991
thread up. Of course that message that you first posted was deleted. But from the sound of that first message it looked like CSHD could dilute on forever as long as they had met a certain
revenue number. But the date of that was Aug 2004 to Aug 2005, so doesn't apply anymore...
I don't think Serf is a basher based on what I've seen him do on other message boards. However, serfy isn't perfect, and I think he took things out of context during the weekend that was cleared up a little after I did a little more DD.
He has put up so legitimate questions though.
It does look like in the sb-2 after doing a little more reading that there is another possibility for dilution to occur (not likely though if Rufus is buying up shares), but after a certain date in nov 2008, it can happen (I won't post the rest). I guessing people will have to do a lot more DD on this company before making up their minds...:
The notes bear interest at 8%, mature three years from the date of issuance, and are convertible into our common stock, at the investors’ option, at 55% of the average of the three lowest intraday trading prices for the common stock on a principal market for the 20 trading days before but not including the conversion date.
We have a call option under the terms of the secured convertible notes. The call option provides us with the right to prepay all of the outstanding secured convertible notes at any time, provided we are not in default and our stock is trading at or below $.20 per share. Prepayment of the notes is to be made in cash equal to either (i) 125% of the outstanding principal and accrued interest for prepayments occurring within 30 days following the issue date of the secured convertible notes; (ii) 135% of the outstanding principal and accrued interest for prepayments occurring between 31 and 60 days following the issue date of the secured convertible notes; and (iii) 145% of the outstanding principal and accrued interest for prepayments occurring after the 60th day following the issue date of the secured convertible notes.
I know the date of the filing (dec 20th, 2005)...
But the part you quoted on dilution :
also states:
1)
Upon Furia achieving revenues of $250,000 within twelve (12) months from the date of acquisition, an aggregate of 25% of the Preferred Stock may be converted;
noticed the words "date of acquisition". If you look at the first sentence it says Aug 26,2004.
Or am I reading this wrong?
The only if I have about that DD is this part:
On August 26, 2004, Furia completed the acquisition of Fronthaul, Inc., a p
supposedly this "deal" is from 1 date from acquisitoin, meaning that it has already passed. or are they talking about some other date?
You're right.. this looks like a diluter's dream come true... assuming they exercise the option. Supposedly at the time of thie filing, there were 500,000 shares of preferred stock. Now we don't know how much of this has been converted already, or if there has been changes in any past filings (we'll just have to read all through the documentation to find out).
All they have to do is acheive those revenue numbers and it is set...
Anyone know of how much revenues CSHD is making now?
This applies to Furia though right? not cshd...
Anything happen between that time and now?
Actually, there have been very few bashers that I've seen recently... what I consider to be true bashers that is (people that post innuendo and speculation - like Our-Street). The facts have been posted... now admittedly some of these facts look bad, but even those facts still look inconclusive right now.
I think Serfy is a straightshooter... Maybe even Rufus is a straight shooter as well... but all those investment people behind Rufus does make it look admittedly bad.
Hard to say whether this will be legit, but I guess if it isn't, then Rufus has his bases covered, and he isn't going to jail if the scheme is this complicated.
I'm curious though.. this stock does have some positives in it, like the military deal, and does have some legit bonds associated with it. If the bonds do turn out legit though, wouldn't it make more sense to invest in companies, than to short investors? A lot more money to be had in military contracts than in small time investors. Or are they going to do both.. play the pump and dump game and also make money off the military contracts by covering low?
Oh well, if your bearish on this stock.. maybe it might be time to thinking about shorting the stock after the price resets... or maybe sooner if you think the bonds are bogus...
I suspect that many of these poeple are being paid by investment firms and/or individuals to bash this stock so they can short it. While some bashers in here (like Serfy), just want to find out the truth, so is probing every negative option out there to find out the validity of the stock and to see if there is something negative to be had about this stock.
A few poeple are just plain negative (see, I can read minds too. ;))
while the bonds are sort of like debt, unlike debt, the bond company could simply take their money out and invest it somewhere else. Where as, what we think of as debt, the bank can't just take your debt and invest it somewhere else if it thinks it can get a higher return for it somewhere else.
It's just like saying schwabb or scottrade or a bank has a "debt" to each customer that puts money in it. Sort of true, but not really what you would consider debt because it doesn't act quite the same.
That is why it is called an asset management company. All it owes is the promise of a return, not necessarily the principle itself like true debt (unless it "bought" the bonds and has a loan out).
I wouldn't bet the henhouse on it... that being said, I suspect it will come eventually... hopefully by Sept 10...
If that were true, then why is he apparently not trying to attract small-time investor interest at this time? I don't think he was actively seeking us small-time investors in the begining anyway. It's just that all of us jumped aboard wat what looked to be a good deal at the time. The only reason he would be stopping now is either if he is planning to scam (and I've already given reasons as to why that doesn't make sense now), or he has attracted larger investors.
And yes, it is probably true that he doesn't want small time investors that are just going to flip the stock once it gets reset.
well if he doesn't, then he must have someone in the SEC that is corrupt and working for him to put out those 8k's...
I doubt it... he would definately not need us small time investors if that is the case. He could just be shifting funds around if that is the case. And there is a whole lot more money to be made in investment than in scamming. And he could always turn to scamming if the investment part didn't work out. So it doesn't make sense to scam now, in the short run at least.
I doubt he would screw with Lehman brothers... screwing with Venezuala and small time investors is one thing. Big time investors with billions of dollars is another thing.
If it is a scam, then why not just do what Enron did and funnel money into bogus projects and pocket the money for yourself?
Why would they screw Lehman brothers, one of the largest investment comapnies in the world? Rufus, et al, better find a remote island somewhere where nobody can find him if it is.
I don't think it is a scam.. however, some bashers in here do have a point about people willing to pay $15 for a $1 stock... there probably is just not that enough investment capital out there if everyone decides to sell at once to maintain that price, or whether the business model is actually tenable in the long term.
I'm hoping the short squeeze will at least take care of some of that in the short run.
probably not... it will eventually be released, when, I don't know, however....
Where else could they get their shares from besides the open market? Directly from the owners of CSHD?
This was a classic pump and dump.. whether or not unintentional or not... some people pumped it up on other lists.. and then when I got in, it got dumped...
yeah, MM's may or may not be. I have a feeling they will wait a month or two or until next news comes out to do anything..
Yeah... seems to be mostly speculators coming in, more than real investors. I'm guessing it will run up some this morning..., then be choppy for the rest of the day... may even start falling once this thing gets out of the spotlight.
well, if they are investigating, it is probably because a shorter decided to alert the SEC so that they would investigate this claim. Another ploy to drive down the PPS by making people wait longer. Assuming the information checks out of course.
you haven't said anything as far as I am concerned as long as you haven't provided any proof.
Yet you are apparently so sure enough of this unprovable proof to post your assertion here that it is true. If it is true, then you must have proof.. and yet you don't have any proof, which makes your assertion suspect.
Do you have proof that the SEC is investigating? Or is this more speculation? Put out the proof or stfu. Otherwise we will think you are a basher..
why is it that criminals always talk about the bible, and christian themes? From pedophiles on dateline, to now preachers who are bashing stocks?
Are they trying to make themselves look more righteous? Or do they think what they are doing is not wrong, and trying to cite the bible to reaffirm this conviction?
I don't know, but I got a similar personal message from thehavenots as well. Why he is sending it to me doesn't make sense though. I don't know him personally. If the SEC is really investigating this stock, then why doesn't he just post it in the public forum?
nobody knows when and if they filed it already except for the SEC.. so stop speculating.
The way it is going, probably not...
I figure about $1.20 although it could go anywhere today. Obviously people's actions speak louder than words. A lot of people are in it for a short term profit apparently based on market activity.
Do you really want to attract people who are just going to flip at the first sign of weakness? These are the same poeple that are probably going to make the PPS fall like crazy once and if it hits a very high level.
well, what do you know.. my mind reading skills were dead on.. that is why PPS is increasing.. ride it till it lasts people... maybe it is as much a guilt trip as a present if I read Ken's mind right..
Yes, but why is it increasing?
The subsidiaries exist under Conversion Solution's web site.. you can check them out. Whether or not they are legit or not is anybody's guess... we can speculate all day, but unless you are directly involved in one, or find something concrete, then nobody can say either way.
If it is a scam, then Rufus better have his bases covered - he will be facing serious jail time with all those forms submitted.. and if those bonds turn out to be real, then it makes even less sense for this to be a scam (why scam small investors when you can just take the 500 million and run?).
I don't think it's a grudge.. it's more like easy money. Pick a bulletin board list that is widely read. When a lot of people have bought into the stock, short the stock and hire some bashers to push the PPS down. That is called easy money.
Oh yeah, and cover if you have to...
yeah, from that point of view, it doesn't make sense. I guess their thinking might be that if someone is willing to keep the PPS at a certain level, then it will attract other investors when it hits the NASDAQ. So it's not so much that they are giving us $15, so much as they are trying to keep the PPS up to attract more capital once it hits the NASDAQ...
I'm not sure Rufus is really all that concerned about PPS now... or us 'small time' investors.. he's probably looking more at the big institutional investors...
Up to you.. 50/50 chance that it goes down or it goes up imo... I hoping from what I know that it goes up.. but there is always that chance that something can go sour... so do you DD.
I admit, it's a bit unrealistic to expect that an unrelated party is going to give me $15 after the reset... and I'm not expecting that.. I'm expecting somewhere in the $5 to $10 range...
That's not even factoring the optimistic scenario of the short squeeze that some people beleive is going to happen.
I'm guessing that this stock is going to mirror what I've seen other stocks do (like PAIV).... the pps will be kept up for at least a little while because people will refuse to sell their shares below a certain price while buyers will refuse to buy at the high price, but the PPS will still be much higher than it is now.
After the shorters have gone away, then the PPS should eventually rise back up with the military deal and with it being on the NASDAQ...
price is going to be set at $15, the company is not going to give you $15 for it...
I'm sort of glad poeple are selling now actually.. those same poeple are probably the same poeple that would drive this stock to nothing once it hits $15...
Figures.. I'm a partial telepath (mind reader), and I got the impression that JJ had received some very good fake information (I had got this impression before reading this post)...
Admittedly, mind reading skills are still iffy, and mind reading isn't the same as psychic skills.
Rufus is pretty transparent... but he does seem to be tired of the bs on the list, bashers, etc...
From fake websites and from fake reports of Rufus's arrest.. these guys will stop at nothing to make this stock look bad.
And they are not here for altruistic reasons...