says, "Companies that trade on the OTCBB will require Cash/Cheque. "
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I just read that article
To me it seems to imply that FBR got in trouble for short selling before the PIPE became public knowledge.
CHDT has filed a Form D, it's public knowledge.
NASD found that in September 2001, Compudyne Corporation and FBR, its placement agent, offered accredited investors - on a confidential basis - a PIPE deal proposing to sell 2.45 million shares of common stock, which raised more than $29 million. The restricted stock was offered at the below-market price of $12 per share. NASD found that FBR failed to maintain an information barrier to prevent trading by FBR personnel who were aware of this information.
As part of efforts to make a market in Compudyne, supply liquidity, and advertise FBR's capabilities, FBR's head trader, who was aware of material, nonpublic information about the PIPE, engaged in trading in Compudyne before the PIPE was announced to the public. By the time the PIPE was announced on Oct. 9, 2001, FBR had a net short position of approximately 179,495 shares.
Do you have any links re: NASD/SEC PIPE rules, especially recently updated ones?
Regards
Just trying to come up with
an explanation for the concerted selling we've seen.
Who can sell at these levels and still show a profit?
Are you saying a PIPE investor is barred from selling short as a hedge before his shares are registered, or he gets a 144 opinion?
It didn't work with XYBR that way. Have they changed rules?
If I got shares at a discount that wouldn't be registered for a period of time, I'd want a hedge.
Regards
I can't believe no one has paid to retrieve the paper filing. It might answer a lot of questions.
Short interest for June
Through 6/15 trade date:
Short
Interest Percent Daily Vol
8,868 156.52 520,349
9K shorts is not a lot, so I would say very little PP hedging took place up through 6/15, if any did at all.
Of course, the 1+ million volume days came after that. We'll find out in a month if short interest took another jump.
Regards
Score One for Lucy!
SEC and NASD still show it as "China Direct Trading Corp".
However, they have gone past the date by which the name change should have been effective:
Q. When will the name change occur and will it cause a change in the trading symbol of the Company?
A. The name changes effective date is subject to NASD, state and federal securities law filing and notice requirements that will delay the name changes effectiveness date for 20 to 40 days after the date of this Information Statement. We have asked NASD OTC Regulation not to change our trading symbol, and based on conversations with NASD OTC Regulation, no change in our trading symbol of "CHDT.OB" will be required.
The information statement went out on May 11th; I make it around June 20th when the change should have become effective.
Of course, unless the change becomes effective overnight on June 30th, your accounting point is moot. You'll either have multiple names for 2Q or 3Q.
Regards
You're of the opinion that this company
is still legally "China Direct Trading Corporation", and won't switch to the new name, "CHDT Corporation", until July 1st, so as to save the accountants some unspecified accounting problems?
I am of the opinion that that is a wacky idea.
And provably wrong. The name change already happened. The website will come out "when it's done", and I think that's a good idea to do it that way.
Regards
But your implied excuse for July 1st
being some kind of switchover date is groundless.
The company is legally CHDT Corporation already.
Here's to a newly minted, professional looking, informative CHDT Corp website launch soon.
Regards
They filed with the State of Florida
on the name change on May 7th, 2007.
The website is late by previous schedules; let's see if they make the new schedule, July 1st.
It's not a slam, these things take time, and it's better to have a well crafted website than one slapped together to meet some arbitrary date (www.capstone.com, for example).
http://www.sunbiz.org/scripts/cordet.exe?action=DETFIL&inq_doc_number=P04000056287&inq_came_...
The company is listed as CHDT Corporation.
Regards
They need to file some kind of financial disclosure
From that, the brokers can file the 211, quotes could then be made, and pinksheets would display them.
Regards
Pinksheets gets tough
http://www.pinksheets.com/quote/quote.jsp?symbol=dgia
Or, the PP is being hedged
with borrowed shares. The numbers on that Form D would be very important to have, if you're trying to make a buck on CHDT.
How many shares, what discount?
The short interest should be out in a few days. Let's see if there is any activity.
Regards
V. Notice of Sale — Form D
Rule 503 requires the issuer to file a notice of sale on Form D. The notice must be filed not later than 15 days after the first sale, every six months thereafter, and no later than 30 days after the last sale.
Regards
Heed Lucy's W%R indicator
or not, at your own peril
Regards
Here's Hoping
You fare better at golf than you do at CHDT.
W%R anyone?
Regards
You think 2 cents won't hold?
I think there still may be just enough hurricane play in this one to hold it at or above 2 cents. All bets are off come mid August, should this turn out to be another weak season.
Of course, I was wrong last time.
Regards
Based on what metric
do you call 2 cents a bargain basement buy? When they were projecting $20M in revenue last year (the CPS/OBS effect), the price topped out at around 23 cents, giving a P/S roughly 6.
I project $2M in revenue for the year (mostly booklights this year), and again, the P/S is still roughly 6.
When put on the spot (by me), Salve predicted that 2 cents would hold. I thought it would fall. He was right.
None of that makes it a bargain basement buy, however.
Regards
That's not fair
to point out any poster's track record for prognostication.
All that matters is a poster's claims of penny stock trading riches, not the apparent truth.
Weeeeeeeeeeeeeeeeeeeeee! We'll all be rich! (As long as you buy my shares from me! OK, you won't be rich, but I will, and I'll keep telling you how it feels to be a big time penny stock trader.)
Weeeeeeeeeeeeeeeeeeeeeeee! Sign up for my "Buy My Crap Stock Alerts!" and you too could be a bagholder, excuse me, a big time Penny Stock Trader!
Regards
Not by the rules
As a pair, they are a 10% holder, and therefore, an insider, and not part of the float.
Of course, Mr. Fisher does leak a few shares now and then, and when he does, of course, those become part of the float.
The good news with such low volume, we know Bart isn't selling today.
No one has visited DC, or paid Thomson for that paper document yet?
Maybe Lucy is headed there today.
Regards
Short interest
Not a factor. That may change, if they did do a private placement at the end of May. Let's see later this month what happens.
http://www.otcbb.com/asp/OTCE_Short_Interest_popup.asp?Symbol=chdt&StlmtDt=05/15/2007
Regards
Couple of observations about Howard's shares
The preferred shares are non-voting (someone check me on that). I believe he will move to maintain his 51% majority holding of common shares. That could mean converting some of his preferred back to common at some point.
The wild card here is the private placement, if indeed it did take place.
Howard's common holdings were 287,626,178 shares, as of May 10th. That makes him a majority holder as long as the O/S stays below about 575M. If there was a private placement, what is the O/S now?
To me, this points to an increase in the A/S sometime this year.
Regards
Are you including Lamadrid's 7M?
He is no longer an insider. I think we should count his shares as part of the float. No?
Regards
So, 500K plus Howard's loan for 575K
makes 1075K. Did you get this from the SEC? Care to share your source? How many shares?
Regards
How many shares do you think they sold
I note that if they sold 25M shares at .017, that would give $425K, coupled with Howard's loan, that's a quick million dollars.
How many share do you think they sold, and at what price?
Regards
It was a show of hands.
Take a deep breath and take a position. Did they sell shares to accredited investors?
How many? What price?
Or, is it just Howard's latest loan?
Regards
The broker/dealers will mirror trades when it makes sense to do so
There won't be actual Market Makers until they file a Form 211. To reiterate, no one makes a market for SKCI, as yet.
We've heard that the Form 211 is coming, soon. Watch for it.
Until then, you're just trading in the dark.
Regards
So, show of hands
How many think they did a PP, and how many think it has something to do with Howard's loan?
My hand is in the PP group. I'm curious what others think.
Regards
Perhaps more aptly
a Chinese Fire Drill. Stuck at a red light, running around the car in circles, waiting for the light to turn green.
Regards
If the DC trip is a no-go
I believe Thomson Financial will retrieve the filing for you, for a price.
http://www.thomson.com/content/financial/brand_overviews/Partner_TRS
Knowledge is Power.
Regards
That's a good thought, Salve
but they've done all the disclosure they legally have to do (if I'm right about it being a private placement). The next time they have to comment about it would be in the 10Q due in mid-August.
They might answer the question straight-up, or not.
Regards
They are probably working on it
and it's in a state of inconsistency, causing that error to be thrown when you access the page.
Regards
No need to guess
We need someone in the DC area, or maybe that phone number would provide an answer about obtaining the paper document.
Knowledge is King.
Regards
Those shares haven't been sold to anybody
They may be used as payment for interest and principal, but they haven't been yet.
His shares are entitled to piggyback registration rights, per the promissory note (the next time they file a registration, those shares will be included too).
I don't see how that any of that fits with a Reg D Exemption from Registration filing.
Howard has made loans before. Have any of them gone down like this?
Regards
Anyone in DC?
Headquarters Office
100 F Street, N.E.
Room 1580
Washington, DC 20549
(202) 551-8090
I think that is the address of the SEC reading room. I guess someone could call the number and ask if there is any way to get the document faxed to them.
Regards
Thanks Lucy, but we've seen all that
yesterday when it got filed. Your take on the filing?
Regards
Thu, May 31, 2007
FILING Notification of a private placement. The form is not electronically filed with SEC EDGAR System and is available only in paper form - Form REGDEX
I believe it is a paper Form D
And if you look in the news section, they now have the filing, and they call it a Private Placement notice.
I think they sold shares.
Regards
DD, from what I read
you either have to show up at the SEC in DC and request the document, or I think you can order it from the SEC (but I have no information on how to go about that).
It is possible that the REGDEX has something to do with Howard's loan, but I just can't read it that way. He didn't purchase securities, he made a loan, which may or may not be partially repaid in shares (which shares will get piggyback registration rights, so why the need for a REGDEX?).
I think they sold shares to raise additional monies. Let's say for example, they sold $425K worth, coupled with Howard's loan that would give them a quick megabuck to invest in the STP stuff.
It would mean 20 to 30 million shares got PIPEd. Of course, they could have sold fewer, or none at all, and maybe it is just about Howard's loan.
But they haven't handled his loans in the past like this.
Anyone in the DC area that wants to visit the SEC for a little mystery document shopping?
Regards
Anyone else, anyone....Bueller?
I think they sold some shares to an accredited investor/investors, and filed a paper Form D as disclosure.
You can't get the Form D that has the details unless you go to the SEC reading room and ask for the document (Document Control Number 07066932) from what I can glean.
The money raised, coupled with Howard's loan will be what they spend to develop the STP business, my guess.
The shares should be restricted, but let's keep an eye on the short interest going forward.
If they did do a PIPE, the shares were likely offered at a discount. The investors wouldn't be able to sell them for at least a year, but may be able to short against them as a hedge to their paper profits.
Whew...OK, I'm done speculating...anyone else?
Regards
The way I read it
they sold some shares on 5/31, and filed a paper Form D.
The edgar site has a document # associated with the filing, but I see no way of getting that document on the internet.
Any one else have an interpretation?
Regards
I agree, Annie
the revenue delta due to the new product is not what I'm after here.
I'm more interested in CHDT's execution to plan, or more accurately, their execution to PRs.
They give great PR; their execution on those PRs, not so much last year.
Regards
Salve's Most Excellent Short
On April 10th, CHDT's short interest stood at 45,207 shares. On May 10th, it was down to 3,457 shares.
If Salve was responsible for all that covering, he probably netted a good $500 to $600.
If he was the one holding out as of May 10th, he stands to make a cool $70 if the stock goes to zero.
In short, it's ludicrous to accuse any poster here of being short.
On the flip neck booklight DD: How about some more people recreate Salve's efforts in their own local B&N's?
RVD? Could you go back to your store and specifically look for the new booklight? It would be good to know if CHDT was successful in getting these new lights to go nationwide.
Regards