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To get it off the greys, they will need one. They haven't had one since last year. They do also need to justify all other PR'd claims.
For that date those numbers were accurate. That is FINRA that regulates short reporting.
For what? Short numbers? That number is the short interest from weeks ago. Why would you base anything on that?
Need an attorney letter for the current info update, yet.
Check the date on that one. Your reference is from April. Need a letter with respect to current information here.
"The Commission temporarily suspended trading in the securities of FRTD because of
questions that have been raised about the accuracy and adequacy of publicly disseminated
information concerning, among other things, the company's operations. "
From:
http://www.sec.gov/litigation/suspensions/2014/34-72232.pdf
This statement does differ somewhat from your other two examples. It seems even more broad and vague, than your other two examples. Still could just need to produce the necessary documents to prove it. Only questions have been raised, so they could still not be BS'ing everything all the way. A quarterly report is a little more important than an 8k. It is a regular document provided to update the public on current financial state and ongoing operations. So, they just have to prove what they are doing. Still not quite yet fraud.
The biggest problem with this - even if it is all smoke and mirrors, and FRTD proves to be accurate, this could effect business dealings in terms of a proposed acquisition. If they end up being above board, then they can file suit against the initiators of the suspension if the acquisition offer is retracted, in light of the current status and suspicion. That would be pretty terrible if an acquisition deal was retracted if there is nothing criminal actually occurring.
I think there are too many possibilities to say it is definitely fraud just yet.
Hopefully we hear something soon.
I think it is possible due to the lack of filing, given the present circumstances and what the company has PR'd. I am just not assuming doom and gloom just yet. Very curious, though.
As stated in your other reference, this is only done for SEC filers. They do not always post a reason for non SEC filers.
"There are two types of SEC Suspensions, one for SEC Filers that are delinquent in filing any Financials. The SEC Suspension is always accompanied with an Administrative Proceeding outlining the Financials delinquencies. Those stocks will have their stock registrations revoked under DEFAULT reasons when the delinquent Financials are not filed as ordered by the SEC. Stocks in this category will remain on the Grey Sheets until the SEC Admin Law Judge revokes the stock registration.
The second type of SEC Suspension involves questions about adequacy and / or accuracy of company information, including news releases, share issuances, stock promotions, whatever else the SEC may allege. This group comprises SEC Filers or non-filers, ie., stocks that do not report to the SEC but are required to report to OTC Markets. NOTE: non-filers likely do not have stock registrations with the SEC so the stock cannot be revoked. Stocks suspended under QUESTIONS with no accompanying ADMIN Proceeding will remain on the Grey Sheets until the SEC litigates against the company, which may take years to occur. "
Still a possibility. Can't be sure until we see more from the company or SEC. I am still interested to see how it pans out. In that post:
The second type of SEC Suspension involves questions about adequacy and / or accuracy of company information, including news releases, share issuances, stock promotions, whatever else the SEC may allege. This group comprises SEC Filers or non-filers, ie., stocks that do not report to the SEC but are required to report to OTC Markets."
It still could be due to lack of adequacy of information with the late quarterly report, with all the current boastings of the company. I am still curious to see how this goes.
Sorry, quarterly reports that show financial statements. Easier to type 10q. Affinity is supposed to be a card service, so a ton of assets not even necessary. If the product launch is successful, it pays for itself very quickly. Procap funding agreement - never closed, not currently an issue. There are other assets this company has purchased (allegedly). Even if they aren't an SEC filer, I think there is a possibility that they cracked down on them for it. I am still kind of curious as to how this pans out.
Hmmm..
"Why would the SEC suspend trading in
a stock?
The SEC may suspend trading in a stock when the
Commission is of the opinion that a suspension is
required to protect investors and the public interest.
Circumstances that might lead the Commission to
suspend trading include:
• A lack of current, accurate, or adequate
information about the company, for example,
when a company is not current in its filings of
periodic reports;
• Questions about the accuracy of publicly
available information, including in company press
releases and reports, about the company’s current
operational status, financial condition, or business
transactions;
• Questions about trading in the stock, including
trading by insiders, potential market manipulation,
and the ability to clear and settle transactions in
the stock."
Taken from the SEC investor bulletin.
What Happens After a Trading Suspension Ends?
"Historically, most companies subject to trading suspensions by the SEC have been quoted in the over-the counter (OTC) market on the OTC Bulletin Board or other broker-dealer operated systems prior to the suspension—and most SEC suspensions are based on a lack of current information about the company."
Tell me again how the SEC won't suspend a stock in the pink sheets for lack of adequate information, especially when a 10Q should be due out to reflect the current business growth and valuation to support current business proposals. No 10Q, no current information. FRTD just has to produce the necessary documents.
My mistake, I actually meant to say suspend it. I know the difference, just temporary mental lapse on the term. I apologize. Still, the SEC is supposed to act in the best interest and protection of the shareholders. Do you actually think the company is completely fraudulent, or just another suspension, similar to others in the OTC?
I would think that if they publicly stated they would have a report published on a specific date, and then did not produce it in time, with as many PR's have been put out, that it would be suspicion enough. Why wouldn't they think it to be in the best interests of shareholders to halt the stock until the company was able to produce the documents they had stated they would have done?
So they are not legally bound to produce reports that they filed a deadline on, in even public disclosure?
So they are not legally bound to produce reports that they filed a deadline on, in an SEC filing?
It is possible that this could be the SEC inundated with complaints, but this is very doubtful. The 10Q needs to be published and this can reopen. This is the company's fuck up.
Main problem - no 10q. They were supposed to deliver the quarterly by today. It has not been done in the timeline specified, therefore adequate information has not been made readily available. This raises suspicions, so the suspension is not unwarranted. I can pretty much guarantee that this is the very reason for the suspension, and if they had gotten their 10Q out, then we would still be trading.
This deal has yet to close, though. Don't count this one as too much of anything just yet. I would focus on the other deals and acquisitions that have already taken place. Even without the Primarq deal this company should have value.
MM's are still opening the bid down. Going to trickle a few impatient ones out. Also have some stacks on the ask. However, accumulation still holding rather steady. See how the price actions turns over the next 45 min, and we may get it primed for a run in power hour. Otherwise tomorrow is going to be a very strange madhouse, of sorts. The factors in this one before a long weekend will make for a very odd trading day, I think. Next week should be better. That independent third party valuation of a database may not take very long, too. They could drop the Q/ 3rd party valuation/ confirmation of acquisition proposal as soon as tomorrow. It could even be over the weekend, and then any shorts stuck will lose their ass. Still a risk, though. Nothing is definite yet. Just looks rather probable, IMO.
If they were to try purchasing that significant of a chunk of the float, then the price would rise sharply, quite likely over .12 before even half the float has been acquired, causing them to pay even more on the open market. In a traditional buyout they can properly valuate and pay a fair price for the entire company at a more stable PPS.
Looks like shorts are running out of ammo and the recall may begin soon. 200 share sales to try and paint the price down? Looks somewhat desperate.
The churn is going very nicely here.
Looks like liquidity is starting to require a higher price. Hold steady or buy her up. Games should begin very soon, I believe.
Thank you for reading, as well. Good luck to us all here. Hopefully we don't need that much.
I personally am glad that you did not. The more that do play the game, the more chances for shorts to cover at a better price than what they can be made to pay in another day or two. I like keeping some funds free and grabbing more whenever they slam the bid hard. That way you take out more chances for them to cover lower again. It could get very interesting this afternoon. As long as people don't wash out (or haven't completely already), then we could see a nice run.
It isn't quite so dangerous when you know the average liquidity, and can control the price for a significant time. Also, the MM's can't help but to naked short sometimes, just because they are supposed to be providing the accurate market for the stock, even if they have no shares to sell. They get locked into the just keep short selling until you get yours covered. With an aggregate of short sellers and flippers, the risk drops substantially. The stock has to gap up hard to catch them in a short squeeze. They can also keep making the price look lower, hoping for a washout, since the volume is pretty low. Their walk downs take much less shares with low liquidity. I would imagine this afternoon shows some action, if there are shares left to cover, and tomorrow all calls should be in. I don't think anybody would want to hold a short position over the long weekend. Especially if the DD is done by the other company early. I can't say that I am positive this deal is completely authentic, but the restatement on another PR winds him further into a trap if he is in fact putting out fraudulent information. This makes me think there is a good possibility it is real.
You did see how much short volume there has been, right? It is pretty disgusting. It is just another situation where short sellers and groups are trying to sell it down so they get the best prices and buy it back up when they fill. Most of this volume is volume that doesn't actually exist. You have retail short sellers selling to MM's that have naked short positions, and MM's opening more naked shorts, simply because there isn't a lot of people that actually want to sell their shares. They play the game to trigger stop losses and shake out the scared. There is enough uncertainty in markets in general these days that is has become easier to convince people there stock has no value. It is quite sad when abusive short selling has come to determine the price of several stocks on the market now, instead of the actual market valuation in which shares could only be traded by those willing to actually give up their shares at prices they want.
It's a lot of short sales folks. Hold tight. They can't hold the position open forever.
I definitely agree with that. That is why there is tourism. For the purposes of drawing a higher number for MJ, though, I don't believe it will be nearly as dramatic as Colorado's influx.
You might get a few straight edges that will not break the law in Portland, but people smoke no matter what there. Rather blatantly and openly, too. It is pretty wild, but kind of funny. Colorado brings people from as far as a 2-3 states away regularly now, for their MJ business. Washington may as well, but I can almost guarantee business from CA and OR is going to be rather minimal. Colorado is also able to catch anybody from them east, with no other states being legal yet. My suggestion for WA - get on board with growing the best out of the gate. The market in CO has horrible quality recreational MJ and nobody cares, just because it was the start of legalization. It ends up coming down whether people want DeWars, or Johnny Walker Blue, and prohibition has only just ended. So nobody cares, and the guys growing out there don't care to improve it, because it is still selling and they are making tons. If Washington wants to steal CO's business, then they should start growing the highest shelf as well as the mid-low's. Earn a reputation and try to grow the best herb in the country, and maybe they can be bigger than Colorado's market. It would still probably take a couple years, though.
I think if there is one, it would end up tomorrow. I think they are going to try and push it down to fill the gap, but I don't think they will get it completely filled, and burn themselves pretty hard for tomorrow. As long as people can hold steady through the afternoon, this may actually stay above .015 today. It really depends on the shareholders, and what I have noticed lately, is that there aren't many left that actually hold on through the bounce.
Portland already has a lot of growers for their own herb (my brother in law and sister are licensed up there, actually). Also, Colorado is surrounded on all sides by more states, and is centrally located for heavier traffic in general. I honestly don't see Washington being a bigger deal than Colorado. Maybe Canadian tourism will help?
This looks like it should make for very interesting EOW trading, before the long weekend.
I have seen both words used here interchangeably. I just wanted to make sure people understand there is a huge difference, as well.
The 10 year prison term is debatable, due to the legal proceedings possibly ruling for a lesser sentence (this is determined by many different factors). In any case, he would most likely lose all money he made with his scam, and then some (if it were actually a scam).
The stock can be halted for good reasons, too. The suspensions is what you need to worry about. That is what would happen if the SEC had genuine reason to be concerned. They can actually suspend a stock for 10 days for reasonable suspicion, but in this case there isn't grounds for reasonable suspicion quite yet. A lot of people are just scared because of the possibility. It is understandable, given recent events in other OTC stocks. What people don't seem to want to understand is that just because the PPS is down, it doesn't mean the company is lying. Or that if the valuation comes through at even .10, the SEC may have to halt it to appropriately disseminate the information and gap the stock accordingly. This could happen at any point between now and the proposed date of acquisition, and nobody would even have the chance to chase.
I agree. But the fear mongering seems to be more of the trend lately. There is always a chance you end up in a stock where the management is a bunch of BS artists, and your stock gets screwed, though (same risk as every other stock). For all those fearing "trading halts" - please research the reasons behind halts. Sometimes it is simply to allow a company to disseminate important news that could have a tremendous impact on stock price, or even just due to a serious imbalance of buyers/sellers. So halts aren't always bad news. Lol. I really hope people don't take it that way.
If he lies, he gets in serious legal trouble. He would face fraud charges from the SEC, and tons of litigation in a possible class action law suit from shareholders.
To an extent, yes. This is the same pattern I have seen whenever he takes an interest. It starts with massive shorts and sales of accumulated shares to burn the price down and collect all the shares at the bottom. Then it continuously rolls 5-10% gains and sells into any news to try and keep the price controlled while causing panic washouts whenever possible. It gets ugly and disgusting for a while. Then when he finally gets off of it, it regains actual value.
This is what happens when Claytrader gets involved in a stock.
I am seeing the shorts on the L2's for sure. Short sales have to be done on an uptick, and if you look at some of these nasty red runs, they are only interrupted by 1-10k share blocks of buys usually. This tells me somebody is playing the liquidity here on both sides of the game. They use the small share blocks to cause the upticks they need to short on the back end, and then buy and cover the price back up, and slam it back down again. Sounds like Claytraders' group is on this one.