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Be extemely wary of SPZI IMO. They have nearly a 5B O/S now up from 1,490,630,909 on 1-02-08. They are desperately in need of cash to continue ongoing op's. Their product launch of STv2 has an unknown status. There are thousands of posts on their message board but no one knows if they can produce any rev's from this so called launch to the Green Zone of Chicago. It is a tough market at the moment. Might get some momo play but beware of the risks involved there. Good luck.
And the stock was shorted into oblivion. Next?
Me too. I was reading the S&P financials on Lehman for the first 6 mos. of 2008. $18.5B in the that period. Now if we can get a 1:1 ratio on the sales rev's we could be holding all aces.
I realize that the MBS portfolio pulled them down along with others but with scattered reports coming in as to the value of their individual business divisions it does look like this one
is way undervalued by the market right now.
I understand the shorters have had a field day but if there is
positive news on a buyout at anywhere near 50% of their asset values as reported by Fitch, S&P and others we should do pretty well.
I guess BofA is taking a look. Ok, great they offered $7.60 a share in stock for Countrywide when it was at $4. This transaction has alot more value involved.
Anyone get the article on the MBS business proposal on the $30B they held there? Please post it if you got it.
Yep and those PR's cost about $500 each and did not produce the desired result. So they spent $6000 on this and could have bought another 2% of OneFi. But that was not the goal.
The purpose was to artifically inflate the PPS with a bunch of BS and then unload more shares to buy OneFi or whatever. It didn't work. People are getting smarter with their money in the pinks.
That is good news however this bailout has done the damage. I guess I will hold onto the shares I bought last week and hope to see something come out of it. Talk about a meltdown....this was just incredible. And people complain about how strict guidelines are for home loan purchases. LOL.
This is the type of thing that can happen when folks extend credit to people who are marginal in their repayment abilities.
Edit Alerts
Report: Lehman deal could come Saturday
With the firm's fate hanging in the balance, financial institutions met with regulators Friday night to discuss ways to resolve crisis. Deal could be announced as soon as tonight, according to one report.
CNNMoney.com staff writer
Last Updated: September 13, 2008: 12:46 PM EDT
Lehman is seeking bidders, according to numerous news reports that started to surface late Thursday.
Lehman Brothers' stock, which fell another 13.5% Friday, is down 94% so far this year.
For Lehman, the bell tolls
More Videos
Shareholders lose big in rescue
More VideosNEW YORK (CNNMoney.com) -- The fate of Lehman Brothers may soon be decided as a deal to rescue the besieged firm could be announced Saturday night, according to a published report.
The Wall Street Journal reported Saturday that talks between banking executives and government officials continued Saturday morning, with the hopes that some solution to resolve the crisis facing Lehman and the rest of Wall Street could be reached.
A source confirmed to CNN that "senior representatives of major financial institutions" met at the Federal Reserve Bank of New York on Saturday to "discuss recent market conditions" but did not comment about a timeline for any announcement regarding Lehman Brothers.
Shares of Lehman fell sharply Friday, prompting the New York Federal Reserve to hold an emergency meeting that night to discuss the firm's future.
A source with knowledge of the meetings told CNN that representatives of several major financial institutions met for two hours Friday night with Treasury Secretary Henry Paulson, Securities and Exchange Commission Chairman Christopher Cox and New York Federal Reserve Bank President Timothy Geithner to discuss the Lehman situation and the volatile state of the financial markets.
That meeting came as reports centered on the possibility of Bank of America, the nation's largest commercial bank, stepping in to buy Lehman.
There were also continued questions about what role, if any, the government would play in a bailout of Lehman. A source close to the situation told CNN Friday that the Treasury Department did not plan to use any government money to help finance a takeover.
But just a day after the company's stock plummeted 42%, Lehman (LEH, Fortune 500) shares fell another 13.5% in heavy trading Friday.
This week has marked one of the most difficult periods in the Lehman Brothers' storied 158-year history. The stock plunged 77% this week and has fallen 94% so far this year.
Amid rabid speculation about the firm's health and possible asset sales, the company delivered its results more than a week in advance on Wednesday, owning up to a nearly $4 billion quarterly loss - its biggest ever since the company went public in 1994.
Hoping to silence its critics, the company also revealed a sweeping restructuring plan aimed at cleaning up the company's balance sheet, which included spinning off some of the vast majority of its commercial real estate assets, plans to sell a majority stake in its investment management division, and cutting in the company dividend.
Those efforts, however, did not do enough to convince either investors or analysts that top executives, including Chairman and CEO Richard Fuld Jr., were doing enough to help right the ship.
Growing urgency
Following a string of downgrades, Lehman shares went into another free fall Thursday.
The continued slide, as well as the looming threat of downgrades by the credit rating agencies and general nervousness among long-time customers, appears to have led to an increased level of urgency for the bank to do something.
Numerous reports surfaced late Thursday suggesting that the investment bank was actively seeking a buyer for the whole firm.
The company reportedly reached out to a number of suitors including Bank of America (BAC, Fortune 500) and the British bank Barclays (BCS), which had been rumored earlier this year as a possible bidder. Spokespeople for Bank of America and Barclays both said they had no comment on the report.
Dick Bove, an equity analyst with Ladenburg Thalmann who covers the banking industry, said he believed that Bank of America could emerge as the victor were Lehman to strike a deal.
"There is a natural fit between the two companies," Bove wrote in a research note.
Speculation also surfaced that private equity firms may somehow be involved in the bid for Lehman. Current regulatory restrictions prevent buyout firms from owning a bank outright, although the Federal Reserve has eyed loosening those restrictions as bank failures pile up.
Government's role
While federal regulators have remained tight-lipped so far, it seems pretty certain that they are keeping a close eye on Lehman's fate, and may even be directly involved in those discussions.
The Washington Post reported late Thursday afternoon that both the Treasury Department and Federal Reserve were helping to engineer a sale of the investment bank. The Fed was not immediately available for comment.
The Treasury Department told CNN late Thursday that it "is monitoring markets and remains in contact with market participants."
Still, it seems doubtful that regulators would help bail out Lehman Brothers as they did when Bear Stearns nearly collapsed before being acquired by JPMorgan Chase (JPM, Fortune 500) in mid-March.
Top banking regulators, including the Federal Reserve, faced heavy criticism from lawmakers following the deal for putting taxpayer funds at risk by essentially agreeing to back $29 billion worth of losses on Bear Stearns' portfolio.
On Friday, a source told CNN that Treasury Secretary Paulson is adamant that no government money be involved in any resolution of the Lehman situation. The source added that Lehman has the option to borrow money from the Federal Reserve's discount window. That option was not available to Bear Stearns and other investment banks in March.
CNN Wires contributed to this report
Mucho bucks involved with this if they have anything besides IWS. I know that DVPC CEO told me that the auditors in Canada wanted $150,000 to do theirs and it was very simple. The CEO backed out of the deal in Dec.07 and then the SEC revoked their trading authority ultimately and left shareholders holding the bag with no trading possible. Ditto GSII and these people were smarting that Newton IMO. The DVPC CEO is taking in about $100M a year on his private oil deals in Egypt and the mid-east and yet got caught up in this.
The SEC is not playing games with the pinks. It is the risk we took playing in these markets. It really can't go any lower and if Gene can avoid a landmine it is a good lotto pick.
The players involved in discussions this weekend re: Lehman
http://www.thestreet.com/story/10437223/1/new-york-fed-holds-meeting-on-lehman.html?puc=googlen&cm_ven=GOOGLEN&cm_cat=FREE&cm_ite=NA
http://biz.yahoo.com/rb/080913/lehman.html?.v=2
Talks continue with Federal officals present.
You are close on one definition of a martingale but it really has to do with arbitrage trading. Good luck on your bet with LEH. I did the same yesterday tripling my position there at
$3.60.
I have yet to see the news article on the $30B mortgage portf. they hold. I understand it was offered for a substantial write down but with only 650M O/S(?) it looks good for a few extra bucks per share. I heard it was for $3B and someone else thought $7.5B. That goes with the $5B for the investment side of the business posted earlier.
Talks continue into Saturday on LEH.
http://online.wsj.com/article/SB122132019771832253.html?mod=yahoo_hs&ru=yahoo
There is obviously more value in Lehmans than there was in Countrywide (CFC) when Bank of America put a $7.00 value on them this year in their buyout. I made good bank on that play believing there would be a buyout and buying at the bottom just a day or two before that announcement.
Nice post MP. This should only help investors if the legislation is passed by the Senate and signed by the President. They could put a couple hundred people on the pink sheets and clean up this mess that has been going on for years.
Yes, there is that factor to consider. If the shell is worth that much the PPS should be .0010 or something on that I would
agree but the O/S is an unknown factor now. It could have substantially increased and changed the value of the shell. We really don't know about that.
Also there would seem to be some kind of value for IWS if it really is a subsidary as claimed. I know they sunk some money into to obtain those EPA approvals.
I will continue to hold what I have and hope for the best but will keep my eyes wide open and not put blind faith into Newton. Where's the Beef?
Actually going to the International Accounting Standards is more expensive than US auditing procedures. Google it and you will see that "major" corporations are backing away from it but the SEC is likely to make it mandatory by 2013.
RCCH did not prosper on the pinks. Why would it do any better on an international exchange? They also allow shorting there.
But a better question is what international exchange would even consider this company for an uplist. We hear from some that this issue will all be solved with an "audit". That is a massive leap of faith IMO. There is no telling what an international audit would reveal. It is all guesswork.
My position is this company will remain on the pinks and just have to deal with it. If there is any value to IWS at this point that will be reflected in the PPS. Placing a value on a privately held business such as IWS is an impossibility as there are too many unknown factors involved. Placing value on any JV deals (like Lakeside) is also a daunting task. I think people just need to realize that RCCH really has no tangible assets which can be quantified.
Newton took this path and I believe it was a mistake to try and go in this direction and spend the money to pursue it. They need to preserve their capital to handle cash flow requirements from just keeping the doors open.
Apparently they spent money for the EOA TV deal as well. Again ill placed money IMO. I am going to dig up something from the past on EOA to consider.
No, this is relevant information when people can invest just
$4-8K and find themselves considered to be "insiders" by the SEC and the Federal Government laws pertaining to those who hold more than 10% of a publicly traded company. So, it is on point and a heads up to those who do:
http://www.nysscpa.org/oxleyact2002.htm
And what happens to those who hold more than 10% of a publicly traded company when the SEC catches up to them? That is a question those holding more than say 40M shares need to consider. Read the rules carefully....beneficial ownership includes spouses and blood relatives from other articles on the subject.
http://www.dlapiper.com/global/publications/detail.aspx?pub=853
"Insider rules" apply to those holding more than 10% of a publicly traded company. More on that in a few.
The "audited international standards" are higher than those in the USA. This free link discusses some of the issues and you can see more by googling "audited financials to international standards". I believe Newton will need "audited financials" according to these international standards for any operating
subsidiary and especially IWS and anything going on in China.
The costs for such work are going to be high as it is specialized and beyond the pale of most normal accountants specializations:
http://www.ifac.org/Store/Details.tmpl?SID=12048375762286923&Cart=122131175530373
http://www.auasb.gov.au/docs/agenda_items/6-7_Feb_06/Agenda_Item_7_j_.3_ASA_720_Mark_Up.pdf
Simply impatient with the progress made. Q2's showing no capital and a near zero bank balance. Fears of more dilution.
Seemed to be boxed in by the MM's. Lost confidence they could ever generate any significant rev's in this market. The challenge of luring investors to put cash into their business.
Some of the thoughts I had. Wanted to play the big boards with the cash from XXIS. Best of luck shine.
No response.
Yeah you've said that about 5 times now. Spam? I am still waiting for your explanation of how RCCH with a market cap of
$35-70K is going to qualify for an uplisting to a "major exchange". Third request!
Thanks
I have contacted by email both Mr. Noblett and Mr. White at OneFi for comments to confirm or deny this statement made by
Roadwings.
The SEC getting tough on the pinkies again today. Newtons stance that he has no obligation to file because he is on the pinksheets is false as you can see. Perhaps he can come up with a filing regarding IWS in Florida and who holds what control of that business.
http://www.sec.gov/litigation/suspensions/2008/34-58526-o.pdf
Reposted with permission of receiver from a week or so ago:
---------- Forwarded message ----------
From: Claude Smith <smith@rccholdings.com>
Date: Sep 3, 2008 7:44 AM
Subject: Re: Hello Mr. Smith
xxxxxxx
We will be sending out an update on everything sometime in October. Best info will be available then.
On Sat, Jul 19, 2008 at 10:42 AM, xxxxxxxxxxx.com>wrote:
We haven't had a communication for a month now and I was wondering if you could give me the current status
of the north carolina and (2) montana projects. Have they been cancelled or delayed or are they still in the
engineering stage? Do you expect to break ground in 2008 on any of them?
Thank you for your time.
Sincerely
xxxxxxxxxx
Yes, the fact of what he did when selling those shares all in one day essentially really shows how incompotent he was with it. Its the one thing he has done since in the past 6 weeks or so and you got to give him an F for effort. Then there is this complete lack of staying in touch with invesotrs thingy he seems to like. He definitely doesn't know how to run a public company IMO.
So did you or did you not talk to Travis in the past 2 weeks out of curiosity?
Well thats your opinion....just a guy or two in a world of
100,000 on line users. Every board has to put up with those with dissenting opinions....get used to it. You just got into the pennies on July 8, 2008 you have a great deal to learn about what goes on. This is your first rodeo and you will soon find out about pinksheet CEO's. Do a little DD on these
guys and check with experienced traders on their boards.
Thanks I looked at it but it doesn't fit my guidelines. You got very lucky on a momo run....its currently 2 x 3 with no volume.
Hey billy where is that news you expected out this week? Whats the latest and have you been able to reach Travis in the past 2 weeks?
It may pop if they can get their act together and get some money to trade with from some kind of source. It was that issue which persuaded me to sell. I don't see people lining up to poor money into the company to trade with or to manage their own accts. with. It is a very competitive market out there for this type of business. I would imagin that a startup company with no track record will have a challenging task to convince people to put up their money. JMO.
I have some penny money set aside if I see something I like.
Made $40K on one penny trade (5mos) in 2007. So I am somewhat addicted to them but trying to be very, very cautious about what I get into.
I am leaning towards only buying the absolute bottoms of plays at .0001 and looking for a bounce at some point to .0002. Looking at my watch list this year I see very few if any pink stocks that haven't gone down substantially. This is only about 45 popular stocks on ihub so it is not an inclusive list.
Sure allie. Scottrade doesn't allow any buys at all on XXIS so you need to go back to the drawing board on that concept.
I just sold last week why would I want back in now? I don't,
not at all. The Q2 financial status of XXIS was enough for me.
Don't Errol and Paul have enough on the table to keep them busy? Why are they playing in Florida out of curiousity?
Seen it played of course but don't participate in such activities. I certainly would never buy at any price a stock I didn't believe in case I got stuck with it. Would I buy RDWG at 3 or even 2? No way I think it is going to 1 over time as this drags on. It is really too funny that a weak sister such as RDWG is financing another weak sister in OneFi and they call themselves the capital partner. Anyone could do what Travis has done who could buy the shell. I think actually that even at 1 with 1B shares O/S it is overpriced as far as the shells value goes.
RCCH currently sitting in the 1 range has just 335M O/S the last we heard on 8-01 and now has a market cap of $33,500 and its a clean shell to boot with a real business in Intl Wastewater Sys. their Florida subsidiary. Of course their A/S is 2.5B and they need cash to stay afloat but it is an example of how low the value of these shells can go.
Why senderos?
Contrary to what beliefs? DUUUHHHH, of course he wants the shareprice higher who in their right mind wouldn't.
Exactly.
Nope. Just an observation that I would ask if I was a shareholder which I am not. Carry on allie. At least you got some information from Paul today. I was surprised at the speedy response.
Not casting any aspersions on xxis it is your deal. I suppose I had a lingering interest but that will disappear soon.
Good luck allie!
Well you can draw your own conclusions from this actually. I suppose you could paint it in a favorable way. I just would question why it was stated that is was "their own money" and they chose a vehicle like this to test it in. Perhaps they had a good reason but I have yet to hear it. Not that it matters to me MC I am out as I posted on the board.
You folks need to deal with this issue but I would take anything pinky CEO's say with a large grain or two of salt.
Lets say they are attempting to line their own pockets with
SPZI technology. Ok they are. They don't need to report any incomes derived to XXIS shareholders. Fine. They have filed
with the Florida SOS as to their involvement. How does it belong to Paul Strickland alone when he has been on the dole at SPZI so long? Just a question mark on that.
They do what they do and it is up to you and others to try and determine their motives. I am confident Errol is a compotent attorney and has followed the letter of the law. You guys need to determine if it is in your best inteerests or not.
Don't use that word insinuate with me. I don't take it well, I am just an inquiring mind with no shares and really it is your deal and not mine.
Do your own thing of course. It is your money after all. I regret having said anything to you actually. I have no interest here as I can't buy this stock on Scottrade for now.
Good luck with everything. Now you have something more to talk about besides the boxed in PPS of XXIS. Cheers.
Whats that?
Wow I missed the Washington Mutual action today and yesterday.
Nice after hours recovery. I question all those 100% loans they were doing as far as loan to value on homes go. I think they have a belly full of more non-performing loans to deal with and the foreclosures which will happen. As a mortgage broker I saw their rate sheets for these loans. People are bailing on them in droves. Whoever bought their loan pkgs is a good company to short. They kept some however and their PPS reflects their misdeeds.
I just heard that the FICO score needed to qualify for a jumbo mortage was raised from 680 to 740. That is pristine credit.
I saw very few of those. It tells you that the loans which were done in the hundreds of billions of dollars at 680 are going belly up on these people.
Just listen to CNBC and these people calling in on the show right now. Not enough money coming in and an awesome mortgage payment + credit cards+ auto+ student loans etc. People in the USA are massively over-extended due to relaxed credit guide lines. Most of them want to make good but they are being squeezed each month and are running out of options.