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there are no shorts here. only thing matters is what Judge says on 23rd. If he agrees with company's proposal shares will end up worthless. He does not have to agree on those terms though, there have been cases where commons were given small stakes in new equity. Vast majority of these end up bad but once in awhile get a random 100 bagger.
has the reorg plan already been approved here?
they don't halt pink sheet stocks on good news
don't see it PR'ed yet so might give it a better bumb tomorrow.
it popped on news that they got a 1.3 billion $ operating loan
I remember a Q stock some years ago hit my scan up 200% from .01. Pulled up the news and see share cancellation for that day. Figured omg what a scam as it kept going up to $1 and closed .30s to never trade again. Always wondered why they wanted those shares at a higher price lol
why would SEC or FINRA do anything? Co borrowed money through a convertible debenture and are liable to give them shares in exchange for money they received. So FINRA and SEC will punish MAXM for borrowing money to the co and selling shares they rightfully received? If you don't like dilution blame the company.
since CD holders usually get shares at discount to lowest price traded xx amount days back perhaps its in MAXMs best interest to let it bounce now so he can sell for exponentially higher gains a bit higher? Like get a double/triple at .015?
"but if maxim keeps driving price down and co issues shares at discount to lows for a few more months the stock will only be worth about two cents."
So they been issuing shares for few months and price is down 99% yet you think if they do same thing driving price down for few more months price will be .02? They keep selling away driving price lower and stock will double? How does that work?
given that 99% of people that bought here are red being the 1% selling for gain might not be the dumbest idea.
not if you bought .0105 selling .012s
usually in these toxic financing deals they get shares at discount to lowest price traded in last 10 days. sometimes its 25% discount sometimes 40% sometimes more. so if you get shares at discount and get them to sell for same % gain why would price matter? They'll make same amount of $ selling at $1 or .01.
sites don't update OS/float count every day. They usually go by whats recorded on last quarterly report. some sites might show 25M when in reality its possible share count is at 250m
you need to ask MAXM about the end of dilution. If he finishes up this should run real nice but for the time being longs are swimming upstream with him around.
ascending triangle is a continuation pattern formed during uptrends, not a reversal from a death spiral.
wow was doing some DD and came across this. http://files.shareholder.com/downloads/LINE/1771127700x0x889270/3AA043BC-7A18-4637-9F10-BF623829631B/S-4_FINAL_Slides_04_26_16_v3.pdf
So when LINEQ restructures its debt there will almost certainly be cancellation of debt income. The way it looks shareholders here could be liable for massive tax bill. So say there is a $1 billion CODI almost $3 per share worth of taxable income would get passed to LINEQ holders? 100,000 shares that are worth around $16,000 could end up in $300,000 taxable income even though you won't see a penny of the $300k? This is nuts, didn't realize this was a partnership and not your regular stock/corp.
It might take awhile for all this to sort through but a CODI event could happen at any time. Staying long here carries huge risk IMO, be careful. LNCOQ owns 70% of LINEQ and is taxed as corporation so it doesn't carry potentially huge tax liability. Looks like a much safer bet.
LinnCo, LLC (OTC:LNCOQ) (“LinnCo”) today announced that it has extended the subsequent offering period in connection with its offer to exchange each outstanding unit of LINN Energy, LLC (OTC:LINEQ) (“LINN”) for one LinnCo share (the “Exchange Offer”) upon the terms and conditions of the Prospectus/Offer to Exchange dated April 26, 2016 (as amended, the “Prospectus”), and the accompanying Amended and Restated Letter of Transmittal (the “Letter of Transmittal”).
The subsequent offering period for the Exchange Offer will now expire at 12:00 midnight (New York City time) on Thursday, June 30, 2016. American Stock Transfer & Trust Company (“AST”), the exchange agent for the Exchange Offer, has advised LinnCo that a total of approximately 12,066,714 LINN units have been tendered during the subsequent offering period, and LinnCo has promptly issued new LinnCo shares for all such tendered LINN units in accordance with the terms of the Exchange Offer. LinnCo now owns approximately 69% of LINN’s outstanding units.
LINN unitholders who validly tender their LINN units during the subsequent offering period will receive the same exchange ratio provided in the initial offering period of the Exchange Offer. Procedures for tendering LINN units during the subsequent offering period are the same as during the initial offering period, except that pursuant to Rule 14d-7(a)(2) under the Securities Exchange Act of 1934, as amended, LINN units validly tendered during the subsequent offering period will be accepted on a daily, “as tendered” basis and, accordingly, may not be withdrawn.
As previously announced, on May 11, 2016, LINN, LinnCo, certain of LINN’s direct and indirect subsidiaries (collectively with LINN, the “LINN Debtors”), and Berry Petroleum Company, LLC (“Berry” and, collectively with the LINN Debtors and LinnCo, the “Debtors”), filed voluntary petitions (the “Bankruptcy Petitions”) for reorganization under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas (the “Court”). On May 13, 2016, the Court approved and entered an order authorizing the Company to continue the Exchange Offer throughout the Debtors’ Chapter 11 proceedings. Any party not represented by counsel who would like to receive electronic notifications of filings with the Court may complete the appropriate Court-approved form, which can be obtained at the following address: http://www.txs.uscourts.gov/sites/txs/files/CRECFform.pdf. Copies of this form are also available on the website of LINN’s claims, noticing, and solicitation agent, Prime Clerk LLC, at https://cases.primeclerk.com/linn.
The purpose of the Exchange Offer is to permit holders of LINN units to maintain their economic interest in LINN through LinnCo, an entity that is taxed as a corporation rather than a partnership, which may allow LINN unitholders to avoid future allocations of taxable income and loss, including cancellation of debt income (“CODI”), that could result from future debt restructurings or other strategic transactions by LINN. In general, CODI will be allocated to persons who are deemed to hold the LINN units when the events giving rise to such CODI occur. The filing of the Bankruptcy Petitions under Chapter 11 of the Bankruptcy Code does not itself cause LINN to recognize CODI; however, it is likely that the final resolution of a bankruptcy plan would cause LINN to recognize an amount of CODI, which may be substantial.
no average down for me. got 50-60k partials each on LINEQ and LNCOQ at open sold into bounce. bought back some early and out for gains again. good luck with the average downs, not my style.
33-50%+ down open is a blood bath in my book although for some losing half the money overnight is no biggie.
Well aware how some bk stocks trade in pinkie land, after all that 5th letter Q stands for Quality right? lol
anyone have a good understanding about the whole lnco/line share exchange and reasons behind it?
reason why I am here, looking for the dead cat
some brokerages don't allow pinks/otcs positions and force sell them upon delist. shares here will be worthless with time but maybe a short covering rally after another bloodbath.
looks like this going pink tomorrow? They usually crush it at the open upon delist. .06-.08 open?
"For now yes the shorts are in a predicament as yes very nervous...
From $33 to .25 in a year"
Nervous? As in nervous to take almost maximum possible gain?
86k shares is a drop in the bucket with 13M volume Friday alone.
oops you right, off by decimal at both 1 and .01. Brain fart. 4.7m shares x $10 = $47M at $1 its 47m. at .01 add two zeros to 47M = 4.7Billion shares
you right they can't sell the note yet. Looks like horrible terms though. 12% but if they don't repay it by maturity date they'll get charged a default interest rate of 18%.
Best part for these loan sharks/self enrichment scheme master minds will be getting shares at 40% discount to the lowest price stock has traded in last 20 days. So chances are in 6 months this will be trading .01 and will run to .03 and these loan sharks will start converting. Get shares at .006 sell at .03 and down. Man what a gig, wish I knew shady characters like this to loan money to.
18% of 250k = $45,000 a year interest. If they time their conversion during time stock runs they can double their $250k loan every year just paying down only interest. Meaning exactly $0 of principal will get paid off while they bank. Of course they can convert more and make $1M+ within a year or two loaning the 250k. All at the expense of gullible investors buying stock here.
ahh yes the good old shorts. It seems like the excuse given for every pig thats getting diluted to death I seen in my 18 years trading.
I am talking about Oct and before the note was issued. there was pretty much 0 volume every single day. Price started going up on tiny amount of volume right around the time the note was issued. Its pretty obvious was happened. There was no retail traders with shares at that time and no-one to sell but the insiders. They took a small amount of shares and flipped it back and forth walking up the price to over $1. Then ran a promo to create interest and are making bank selling this down into oblivion.
he probably can't hold OTC/pinks and knew this was coming. Do you know if his Omega Advisors firm was selling too? They showed about 4M shares at end of last year and by far biggest holder. Akanthos had about 1M shares and only other size were couple holders with 500k. Thats end of last year too, they could have sold by now.
Cooperman selling was big reason this didn't bounce like other beat down energy stocks like LINE, LNCO, etc. Now that its getting delisted to OTC chances are whatever funds left in it will be selling out at whatever price Monday. Once they done this will probably bounce huge. Big turd on big boards is a gold nugget on pinks lol
Guess only question is who is left. If Omega and Akanthos still yet to sell it might take a couple days to clean up. Otherwise this will likely be a huge buy Monday on the gap down.
this will never make it back to $s without a massive reverse split.
This thing had 0 volume and almost no float. With no float its easy to push the price up as there is no-one to sell and only reason this traded over $1. So they did that $250k note that got converted into shares off the .18 low and pushed price way up before there were sellers in stock. Then ran a promo and sold down from $1+ banking big.
If that wasn't bad enough now they issued 4.7M series B shares with each one convertible to $10 worth of stock. This gives these crooks a right to sell $47,000,000 worth of stock no matter what the price is. At $1 they can sell 4.7M shares at .01 they can sell 470M shares. Price is really irrelevant, they only need to find enough suckers to buy $47M worth of stock at ANY price.
I am at a loss for words at some posters on this board thinking this is worthy of a long term investment. Anyone with half a brain should be able to see this is nothing more than self enrichment scam. Guess there is no-one to stop these crooks creating a bunch of aliases and post here to create illusion of "strong" longs that are perfectly happy getting slaughtered.
etrade alternates mostly between ETRF, CDEL and NITE. once in a great while it'll route CSTI. really depends on a stock. on some it'll route ETRF 80% of the time. some stocks mostly CDEL.
did you route directly to ETRF? most MMs like NITE CDEL ETRF CSTI will insta fill any min size bid whack or ask slap regardless whether they have any shares there.
ETRF does refresh thing on some stocks at times showing min size. tahts why curious if you routed direct or just assume any small order from random MM will cross MM sitting on ask.
did you watch the trading action? bmak showed up .002 and kept lowering ask and whacking every bid in sight.
if they get shares at 45% discount to lowest price(.0011) in last 15 days their average is .0006 or so. at .0012 they double their money, or triple at .0018.
why would they give s$it about making another 10% when they making 300%?
out my .002 avg from yesterday in .002 partial and rest .0018 on this bounce. looks like 35-40M new shares diluted since yesterday. ugly
I did research. Shares increased and VFIN selling like crazy, don't need a rocket scientist to figure out its dilution.
maybe it bounces after .0001 and reverse split? If its overvalued .0025 and they selling/diluting .0015 why should it bounce here? Obviously insiders don't see value here to be selling this low...
selling new shares (diluting) is not recycling. its flooding with new supply
his buddy VNDM still dumping away... where does this bounce? .0025 down to .0015 in mere hours and they still dumping? will diluters ever let this go or let this drop to no bid x .0001?
you right! they bought .0025 .0024 .0023 .0022 .0021 .002 .0019 .0018 .0017 .0016 .0015 and still buying! OMG this is crazy! they still BUYING!
if .0025s are cheapies and .0017 is a gift what will .000xs be?