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correct. in which case he has to refile if he still wants to sell. From the lack of Form 4 filings since April 05, this looks like the first sell by Mr Sandgaard, ever (if it actually happens)
The filing to sell is good for 90 days from the date of the filing. That is, the actual sell may occur anytime between Nov 19 and Feb 17
1776 - It's an American Revolution
And there goes PHIGGY (PHGI) 0.015 up 66%
and to be honest neither do I
CLBE - Being MM months end today, I'd give it a good possibility for selling that position for a double before end of Friday.
Doubt we'll see much of DOMS and PERT on the inside ask rest of week. The big question is whether people capitulated today
I dabble in everything worth trading.......lol
I liked the setup on IELM the best.
penetrated the MA50. and the EMA20 is right there too. Both can be support going forward
Nice symmetrical triangle has been setting up during the past 30 days, with a predicted breakout within a week or so
Full Stoch says go baby go
The SAR is a couple of days late as usual
The ADX is about to turn which can be seen using shorter periods than 14. ADX Pullbacks in price after higher ADX and price highs are excellent re-entry points at the 20 EMA for a retest of the previous bars extreme (0.003)
The CMF indicates growing accumulation and the RSI is neutral
A blowup could easily take you to 0.010-0.012
How did I do looking at charts?
Come to think about it. Today was MM month end. That would explain the heavy sell-off late in the day and if I am right we will not see much selling the next 3 days.
What I am referring to is "Month End" for Market Makers and Funds. Most (about 75%) Market Makers and Funds use the "last settlement day of the month" to "Mark to the Market" their long and short positions.
If I was a Market Maker for a brokerage firm I would primarily being compensated by my "trading profits or losses". For example if I end the month short 2,000,000 shares of a stock that I shorted at say an average of 0.008 and it closes at .003 on my closing day, I will show a $10,000 profit on my books. My Brokerage firm will probably give me 25% of that unclosed position as a bonus. But if the stock closed at say $.013, then my firm would dock me against my other profits at least 50% and maybe more of the amount I am underwater. This is pretty much how it works with MM's.
So you can see why there might be an incentive for MM's to play Month End Games. Which is exactly what we all witnessed today with that sudden selling burst
because it is legal. they are borrowing the stock from the note
True, in sense. The selling of CLBE stock is not naked shorting in it’s true definition, since they are likely using the CD underlying stock conversion to borrow. It’s all legal and for some reason the name Cornell comes to mind.
The practice I thought was outlawed is the true naked shorting ahead of buying the debenture and then after you close on the CD, convert immediately to cover. This used to be (is) very common practice in the pinky Reg 504 reg D financing arena.
The financiers would make inquiries to your newly founded pinksheet company to see if you are interested in an instant Reg. D financing. 1 million could be yours tomorrow. As soon as you show interest, the financier will start naked shorting your company. So once (a month later or so) you and the financier agree on terms, the financier has already shorted you into the ground.
The next step for the financier is then to run the stock up and then dump the stock a second time. Two for one ain't bad
Do a google search on 504 Reg D financing and you’ll see just how many there are out there
What I think is going on here is on the legal side of shorting ahead of conversion (Although we all agree it should not be legal). Just as you have stated and if it is correct that one of CLBEs debentures is about to mature (haven’t researched it in depth) then the CD holder is shorting the shit out of the stock so that his conversion rate will be so much more favorable. Once converted look out for the pump.
However, convertibles with floors are becoming much more common, although the floor may be at 50% or even 25% of the current pps and they usually include some anti-dilution provisions
Ca$h, looks like your APDR day has finally come (as well as mine)
APDR TO DA MOOOOOON
0.024 keep it coming and soon we'll have a
wwweeeeeeeeeeeeeeeeeeeeeee
on our hands.
Floorless Convertible Debenture
So, what is this floorless convertible financing that CLBE is signed up for.
No it is not a rusted out 1958 Chevrolet that covers you with water from under the dashboard if you drive through a puddle. Once again, these stock market people have their own little language. I think they obfuscate things on purpose, but hey, what do I know?
Grab a snack and relax, and let’s start at the beginning. Don’t skip over any of this, OK? Your girlfriend gets naked somewhere in the middle, and you don’t want to miss that, right?
A “floorless convertible” is a kind of bond. A bond is a “note” or “debt instrument” issued by a company in exchange for money. The company borrows money from the person they issue the bond to, in exchange for a promise to pay that money back, usually with interest.
Yes, it’s just like an “IOU”. The company owes the bondholder money.
Unlike a secured bond, a debenture is not secured by company assets, and the holder is not entitled to claim any assets of the company if the company defaults on the note. This particular debenture has a very creative feature attached to it. It’s a convertible debenture, which means the bond can be changed, or “converted” into common stock.
There are advantages and disadvantages to the company when it issues a convertible debenture. Advantages include the ability to raise money without immediately issuing additional stock (thus avoiding immediate dilution of the stockholder’s earnings per share), and the ability to issue the debenture at a lower interest rate than another form of bond, because the purchaser will accept a lower interest rate for the privilege of converting the debenture into common stock at some point in the future.
Disadvantages to the company include dilution of stockholder future earnings, and a potential shift in specific shareholder’s control of stock (and their control of the company) when the conversion takes place.
Conversion takes place according to the “conversion ratio”; debenture value X is converted into Y shares of common stock. The number of shares to be received in the conversion is governed by a formula. Usually, the convertible security is exchanged for common stock of the issuer at the holder’s request by dividing the face value of the debenture by a market price of the common stock that is discounted at the time of the conversion. Parts of these formulas are divulged in the CLBE financials and for one of several Purchase Agreements.
10% convertible debenture with interest due quarterly subject to certain conditions, due three years from the date of the note. The holder has the option to convert unpaid principal to the Company's common stock at the lower of
(i) $0.14 or
(ii) 50% of the average of the three lowest intraday trading prices for the common stock on a principal market for the twenty days before, but not including, conversion date.
In addition, a substantial market discount was attached to the debentures
This is a floorless convertible debenture.
A floorless convertible debenture has a “floating” exchange rate built into the conversion agreement. The conversion rate (number of shares the debenture can be converted into) is “adjusted” to convert to more shares acquired (per dollar of investment) in the event the price of the stock goes down between the time the debenture is issued and the time when it is converted into stock. The lower the stock price goes, the more shares the holder of the debenture gets for his or her note. It’s called “floorless” because there is no “bottom” to the lower price of the stock. Stocks can turn out to be worthless, as we all know. Well, some of us, anyway.
Here’s a very simplified example of how a “floorless” conversion might work:
CLBE issues a floorless convertible debenture with an interest rate of 10% simple interest per year to “investors”. On July 1, 2007, CLBE was trading at $0.016 per share. On July 1, 2007, the “investors” give the company $1,000,000 in exchange for a piece of paper that says the company will pay 10% interest (for example) every year for three years. At any time in those three years, the “investors” have the right to convert their little piece of paper into 7.2 million shares of CLBE.
Additionally, written into this particular note (the floorless convertible debenture) is a clause that says something like,
“If any time in the next five years the stock price is less than $0.14 per share, and if the “investors” decides to exercise their option to convert the note into stock at that same time, then the “investors” gets more than 7.2 million shares of CLBE (as calculated by the conversion ratio written into the note) when the “investors” converts the debenture into shares of stock. In fact, whatever the price is, if it is less than $0.14, the “investors” not only gets more than the 7.2 million shares, the “investors” gets to figure in a additional discount per share of the then existing stock price when converting.
Fast forward and the stock gets crushed. Shocking, yes?
On November 20, 2007, the “investors” decides to convert the note to stock. On that day, the stock is trading at $0.0055. With the conversion rate in the note as their guide, and the discount they get, they are allowed to convert their note into more than 180 million shares of stock.
Sounds like a good deal for the “investors”, eh? Well, it is.
But what if (and I say this with all due respect) the “investors” wanted to take advantage of the situation? In that case, CLBE may have a little problem. Let’s say that CLBE for some reason can’t obtain conventional financing. Let’s further say that the “investors” could short that same company’s stock without actually borrowing it.
Nobody who owns CLBE stock and wants it to go higher would want to loan it out in order for it to be shorted, but the “investors” doesn’t worry about borrowing the stock. The “investors” just sells it short and borrows it from themselves. (Remember, one of the “rules” of selling short is that you have to borrow the stock before you sell it). Naked shorting will not be necessary. This is called convertible arbitrage and is the MO of hedge funds.
The proper definition of convertible arbitrage is the simultaneous purchase of a convertible debt and shorting of the common stock in order to exploit pricing inefficiencies between a convertible and the underlying stock.
This is all legal and nice
In other words, the “investors” has plenty of stock to borrow
However, there is one more nefarious scenario. If the “investors” could short the stock naked, then she could buy the floorless convertible debenture, and then when the time came, the “investors” could convert the debenture into stock (at a discount to the prevailing price) and use the stock received to cover the naked short position!
It sounds like that should be illegal, right?
Yes, it probably should be, but there are some instances when it’s not. And that’s the reason why “floorless convertible debentures” are so dangerous to the company that issues them.
It might be possible for the “investors” (holding the note) to short the stock “naked”, drive the stock price down, and then convert the debenture into stock (at a discount) and cover the short position. Here’s why.
Let’s say the “investors” starts to sell short on Tuesday November 27, 2007 and keeps on selling short. At the end of Tuesday the following week, the clearing agencies reports a fifth consecutive day (T+5) of fails to deliver CLBE securities and CLBE is placed on the SHO list as a threshold security. From then on those B/D and MMs that are short may not effect further short sales without pre-borrowing or entering into an agreement to borrow the security.
If the sum of the money she collected on the short trade and the money she saved on the discounted conversion were more than the money she put into the bond in the first place, then she would make money…maybe a lot of money if the stock were driven down to the point where it was almost worthless before she had to buy it and cover her short position.
This is called dynamic adjustment arbitrage and is the less known and legally questionable. you are selling the equity short and altering the hedge dynamically thereafter. It was my impression that the SEC was to outlaw this practice in July 2007, but I’m not so sure that ever happened.
What else could go wrong?
Plenty. If the company were planning on issuing additional stock to raise the funds to pay back the money it borrowed when it issued the bond, then the company is kinda screwed. The stock is almost worthless, so the offering would have to be much, much larger than would have been anticipated when the bond was issued. A large offering of additional shares would dilute the float considerably, and that is something the shareholders would not like at all. (Remember, the “investors” just diluted the float when they converted.) The ordinary shareholders would resemble charcoal briquettes at that point.
Here’s the point that a lot of investors miss:
Why would CLBE issue a floorless convertible debenture in the first place?
To my way of thinking, there are only a few reasons, and none of them are good.
Either the people that are running CLBE are idiots, which we know they are not or the company is in so much financial trouble that it has no alternative.
No matter what the reason, no matter how “wonderful” the company claims it is or how much the investor likes the stock, the issuance of a floorless convertible debenture is about the biggest red flags out there.
I trust this assists your understanding
DMTN - The buy-out proxy is to be delivered shortly. Has been confirmed by the TA.
Looks like the panic-stricken DMTN board is about done dumping and it should start to move in anticipation of the proxy. Easily the best bash job I've seen in many years
This paragraph is in the About Section of every news release from EMI records:
EMI has signed agreements with hundreds of digital partners to distribute its music across the globe.
It continues to facilitate the development of a growing range of new digital business models to enable fans to experience and purchase its artists’ output through a number of different platforms including advertising-supported online music streaming in China through Baidu, legal peer-to-peer agreements with QTrax, Mashboxx and GNAB, and a deal to offer advertising-supported videos on mobile phones in the US through Rhythm NewMedia.
For further information on EMI, please visit: www.emigroup.com.
-----------------------------------------------------------------------------------------------------------------------------------
The EMI news releases are routinely picked by all industry related newsprints and the entertainment sections of regular pepers. This is free advertisement for QTrax.
About the competitors mentioned.
Mashboxx is still in development and looking for cash.
GNAB was built by Arvato, a Bertelsmann subsidiary - "bang" spelled backward. In order to access songs from the network, a user must first purchase the rights to download much like the traditional services. It was intended as an ITune killer. The service never got off the ground and has been killed.
That used to be the typical spiel for floorless CDs before July 1 2007 when the SEC made that unlawful. Now the CD holders have hold the actual stock before selling.
Sure, none of the naked shorting cool aid drinkers believe that made any difference anyway.
Take a look in the 10Q at the amount of free trading shares sold by the company since July. It's all you need.
Latest 90 days 144 filings
Date Name-Position Transaction Shares Price Range Shares Held Mkt Value
November 8, 2007 Samuelson Eric R Planned Sale 400,000 ----- -- $600,000
October 26, 2007 Rowlands Susan Planned Sale 100,000 ----- -- $120,000
August 21, 2007 Wall Street Group Inc Planned Sale 184,657 ----- -- $184,657
August 20, 2007 Sandgaard Thomas Planned Sale 50,000 ----- -- $50,000
Guess I took it the wrong way then......never mind, no foul
Just to clarify.
Because it was a question of authentication of the BLLN response to my email, I PM'ed the complete email with all the header information included to RBR2 this morning. Because of this it included private info that I didn't want plastered all over the place. Hence a PM and no post
The info in the email has already posted. except that it also gives the Rick Riccobono's direct email address, which is rick@blln.net
Straight from the horse's mouth. The NT 10Q filing reads:
Part II - Rules of 12b-25 (b) and (c)
If the subject report could not be filed without reasonable effort or expense and the registrant seeks relief pursuant to Rule 12b-25(b), the following should be completed. (Check box if appropriate).
[ X ] (a) The reasons described in reasonable detail in Part III of this form could not be eliminated without unreasonable effort or expense:
[ X ] (b) The subject annual report or semi-annual report,
transition report on Form 10-KSB, Form 20-F, 11-K or Form N-SAR, or portion thereof will be filed on or before the fifteenth calendar day following the prescribed due date; or the subject quarterly report or transition report on Form 10-QSB, or portion thereof, will be filed on or before the fifth calendar day following the prescribed due
date; and......................
calendar calendar calendar. NOT business
the 10Q was due on the 14th (not the 15th). Thus it is now due no later than the 19th, which is Monday. Then give the OTCBB 2-3 days to admin the added "E". Makes it Thursday or at the latest Friday
That is incorrect. It is 5 calendar days. Monday 19th is the last day. If no filing expect the dreaded "E" by Thursday as it usually takes 2 business days for the OTCBB to admin the "E".
However, the OTCBB is usually lenient and lets you slide a day. so filing by Tuesday is still OK
sure. if you don't mind waiting until monday. the email is on my work computer.
Rick responded within an hour of my email
A fully functional beta version will be released next month for North America. The official release for North America and Europe will be simultaneously and is scheduled for beginning of next year. That is, look for mid Jan 08
This all according to Rick Riccobono of BLLN
For questions or further technical information please e-mail him at enquiries@blln.net
It is now 3 days since I paid my subscription and my IHUB account still shows me as a non-member. The charges were cleared on my bank account. So how long do I have to wait for my status to change
BTW when I paid (on 11/13)I managed to hit the submit button twice, so I actually for two months.
Oh and this is my second message on this matter. I sent a PM a few days back
AOOR 8-K from yesterday
As of November 15, 2007, Apollo Resources International, Inc. (the "Company") has not completed its "going private transaction". The Company continues to work toward completion of its past due filings. In the meantime, with the change in oil and gas market conditions, i.e., drastically higher domestic crude oil prices, the Company is reviewing its options with regard to maximizing shareholder value and is considering alternative courses of action.
APDR owns 140 million EBOF stock. That's why
http://finance.yahoo.com/q/mh?s=EBOF.OB
Let's see... 140 million at 0.085 is $11.9 million
divided by APDR O/S of 225,000,000 is $0.053/share
APDR pps is currently at 0.02..........hmmmmm
APDR owns 140 million EBOF stock. That's why
http://finance.yahoo.com/q/mh?s=EBOF.OB
Let's see... 140 million at 0.085 is $11.9 million
divided by APDR O/S of 225,000,000 is $0.053/share
APDR pps is currently at 0.02..........hmmmmm
APDR - Up 70% Volume coming in
APDR is an old CA$H LT pick
No news, no rumors
Another delay in launch creating sellers, management sucks!!
Info from where?? I have not heard anything about a delayed launch. As far as my knowledge, the launch is still before end of this year and I have not heard anything official about a further delay.
Nice.
resistance at 0.007 and 0.10-0.12
support at 0.0055 and 0.0050
latest ADX indicator is +DI crossing over -DI
MACD speaks for itself
Full Stoch entering power zone
OT: Meanwhile back at the ranch. I just woke up with the worst hangover. Way too much fire water last night. Those Mexican premium tequilas. I remember Don Julio, Cabo Wabo, El Tesoro, but after that I draw a blank. How did I get home?? Car is not in the garage. I wonder where it is. Hopefully at the bar
I'm impressed, I typed that......????????? It actually is correct and makes some sense..LOL
I'm calling in sick
Yep. The ADX coming off the subterranean 20s with the DIs wide open sure is a power sign. Breakouts from those ranges are often sudden and violent.
Need to close over 0.005 for continuation.
Just to make sure that everybody understands that the temporary dive today was not caused by a BLLN printing press hidden away in the basement springing into action as so often is the case with PinkSheets, but likely the was sell off of old CDs or otherwise restricted equities coming of their hold restrictions
Although being kicked down to the pinks for failing in their periodic report requirements, the stock is still registered with the SEC. No 15-12G filing for "Securities registration termination" has been submitted. Most people get confused and think once pink there are no more filing obligations. This is simply not true. It all hinges on the registration with the SEC of your securities.
As such, BLLN is STILL subject to all of the SEC regulations. Because BLLN is behind in all of their periodic reorting requirements, it means that BLLN cannot issue or file for issuing more stocks to sell. The SEC will not accept any filing for more shares to sell as typically would be dine with a SB-2 or S-8. Neither are they eligible under Reg D 504 to issue shares under the $1 million cap.
BLLN just has no way of of selling equity for cash as of right now.
As a side note. HDSN must be the worst seller I've seen in a long time as far as selling large holdings. Can't be much more heavy-handed than HDSN. NITE is a dream compared to these guys.
BLLN. Hope you all got lucky on the dip to 0.033. HDSN is such heavy handed idiot MM. Back to 0.04 shortly
PFUO is doing the same thing CNXP did. Up 100% so far today. CA$H and I are in this big time
PFUO hasn't diluted much since that big 14 million Reg D selloff in June. Only 2 mill during 3rd quarter. That big selloff in a short period of time is what pushed the pps over the cliff into the abyss. As shown today this will move on air because there is nobody dumping into a run. Could easily move back up to a penny with a few pushes
Oh NO, Martha Stewart paint....We're doomed
Nice $50 paint job 3 seconds before closing...LMAO
But, thank you anyway, whoever it was
PTSC - Speculation of settlement as both the plaintiff and the defendant (Toshiba) have jointly filed for a 30 day stay of the jury trial scheduled for January.
There is no way PTSC would benefit from a stay unless it was to allow time to work out settlements
Resistance at 0.48 has not been broken for some time now. Typically, this level is where I end up dumping and then you sit back and wait for 0.40-0.38 to buy again. Like clock work