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MSAH...control block...HLTT...added to position......
$INNI now Pink. Finally!$MAYX discharge granted by the courts.$MSAH restricted shares issued to our CEO but will move together with the control Pref A upon a COC.
— Tailored Tickers (@TailoredTickers) May 4, 2023
MSAH(.065)...accumulated a position.....
Accumulated a position in the MSAH shell on Friday. Probably would have been prudent to wait and see if more shares would become available at lower prices, but risk/reward around the current price area looks reasonably decent to me. And the timing for entry/accumulation might be somewhat optimal based on corporate activity over the last 6 weeks or so (custodianship discharge, large share cancellation).
After the close of trading on Friday, the outstanding share count was increased by 7M. I am assuming/guessing this block of shares was probably issued to CEO David Duarte. This could be an indication that a RM or change in control is drawing closer. Based on the terms of the preferred shares, and depending on whether any of the newly-issued common shares gets included in the control block(s) with a RM transaction, it looks like legacy shareholders will possibly retain somewhere in the neighborhood of 3-5.8% of a post-RM company.
If the legacy share count turns out to be somewhere in the 6.9M to 13.9M range, the current legacy share valuation is roughly $450-900K. Despite the challenging OTC Market environment, we are still seeing investors willing to buy some shells/RMs at fairly high legacy share valuations. For example, AVOI reached a legacy share valuation over $5M (268M legacy shares) on its change in control this week.
KPEA...HLTT...QMEI...
Traderfan...different link to QMEI article......
Traderfan...my interpretation of the QMEI article translation......
TCRI..added to position...QMEI..another reference to Nasdaq......
HLTT...KPEA...VOHO......
KPEA(.29)...updates, stores opening, third acquisition target......
QMEI(.555)...added to position......
TCRI(.09)...no additional info, opinion hasn't changed......
LFLS...adjusting legacy count up to 11.3M shares......
VBIX($1.00)...Gix Media website......
HLTT(.288)...2022 investors presentation is interesting......
ZNNC (.0065)...updates in the last month or so......
VBIX($1.00)...AI play on advertising/content......
14.8M shares outstanding
481K shares unrestricted
FINRA policy on name/symbol changes.....
Involuntary-Recluse...ASKH would be affected.......
BDCM/OPUS...FINRA could be a thorn for these shells......
LFLS/TCRI...added to positions recently......
Picked up some pretty nice blocks of shares recently to add to my positions in the TCRI shell and the LFLS quasi-shell. Along with ADMG, I have a great deal of optimism for these shells or reverse merger situations in 2023. What I particularly like about all three of these is the possibility they are significantly more attractive on a shell/RM valuation basis then they may initially appear to most investors. Depending on what the final legacy share counts turn out to be, each of them could be currently priced at legacy share valuations under $700K.
Of the three it appears that LFLS is probably the closest to completing a reverse merger. From the 2022 annual report......
HLTT(.299)...Q4 revenue, acquisition, new CEO, uplisting......
LUDG(.212)...possible share retirement.....
FWFW...regarding the 8-K and robotics company.......
NewJerichoMan...float/liquidity......
NewJerichoMan...legacy share valuation.....
FWFW(.50)...accumulated a position......
17.75M shares outstanding
451K unrestricted shares
Accumulated shares from the sub-20 cent level to 50 cents. I found it extremely difficult to get any sizable amount of shares under 20 cents, so I decided to be a little more aggressive when I saw the ask price drop under 40 cents. Currently averaged in under 39 cents.
Roy Tang purchased control of the shell in July of 2021 for the purpose of bringing his Asia-based financial services firm public (Flywheel Financial Strategy). Around mid-December of 2021, Flywheel had a listing ceremony/celebration (as per the company website), and from that time forward the company has identified itself as an OTC-listed company. The problem is that the Flywheel SEC filings still do not show the reverse merger (movement of Flywheel's assets/liabilities into the shell) has officially occurred yet. So that is the primary risk on this play.
I am working under the assumption that this RM will become official at some point. I think the CEO has a pretty strong desire to eventually have this company listed on the Nasdaq. Unless there is some extremely negative change in the final structure (which is certainly possible here), the risk/reward around these prices looks very interesting to me. The legacy share count appears to be under 1.6M shares, so at my current average I bought at a legacy share valuation of under $610K on this shell/RM.
https://flywheelfs.com/
https://www.youtube.com/channel/UCa2ijfjV3cLBw-eakqvX8Pg
https://www.facebook.com/financialeliteHK
ZNNC(.0022)...added to position......
KPEA(.20)...CEO interview...acquisitions, Nasdaq uplisting......
China Fortune.com (China Fortune Media Group) did a 6-minute interview/feature on KPEA and its CEO last week. The video doesn't have a closed caption feature, but it looks like much of the final 2 minutes of the interview was about the stock. The article text that accompanies this video seems to make it pretty clear that KPEA still has intentions of uplisting to the Nasdaq at some point. It looks like the company is viewing the upgrade to QB status as just a stepping stone toward its eventual goal of trading on the Nasdaq. Recent internally-generated material that the company has posted on its website, and other recent third-party articles also reiterate KPEA's continued desire to eventually uplist to the Nasdaq.
The interview/article mentions that KPEA intends to complete the acquisition of at least one of the two target companies by the end of this year. So I would probably expect to see some increase in corporate activity over the next few months or so.
Some noteworthy items from the interview/article......
nsomniyak...HLTT's Q4 revenue......
HLTT/QMEI...additional developments......
HLTT(.275): Sales of the wound care product (Amniobind) began in the month of September, with the company recording $776K in revenue. The Q3 filed last week contains this somewhat interesting statement......
QGSI...position status.....
Regarding the private message I received asking about my current thoughts on QGSI.....
This could end up being a very bad investment decision on my part, but I sold my position in QGSI. I was not comfortable with this proposed merger with CoinAnalyst, and I was growing increasingly uncomfortable about the lack of transparency on a couple of major press releases (corporate developments). Neither QGSI nor CoinAnalyst would respond to emails, so at this point I am just more comfortable moving my money into other opportunities.
Regarding the CoinAnalyst merger:
1) It looks like the burn rate of the combined company will be fairly high.
2) The exact details of how this will be implemented have not been disclosed yet, but it looks like this could turn out to be a bit of a messy or complicated situation. I have zero interest in owning a stock that trades on the Canadian exchange. As far as I am aware TD Ameritrade does not allow trading of foreign stocks, so I don't want to deal with the headaches of trying to get my position moved to a platform that allows me to trade it. Maybe QGSI will set up a "F" equivalent stock for United States shareholders, but I don't know how the mechanics of that would work out.
If anything about this merger were to make it more difficult (and/or more expensive) to trade my shares, I just don't think I would be interested in dealing with it.
Lack of transparency on corporate developments:
I am a generally patient investor and realize that things might not always materialize exactly how the company expects. But I do have some limits on what I find acceptable or not. The company issued two press releases in the last year or so disclosing very major transactions (a $1M investment from a third party -- 8/25/2021, and the CEO acquiring 90M shares -- 7/6/2022). Subsequent quarterly filings from QGSI do not appear to show any evidence these transactions actually occurred. The first press release was a red flag for me, but I was willing to give the company some leeway on it. This second press release was the final straw for me. The lack of transparency on these two items does not sit well with me.
Part of me wonders if instead of the CEO actually acquiring those 90M shares, maybe the sisters who owned those shares are just going to return those shares to treasury and the company will cancel them. If the share numbers and percentages disclosed in the merger press release are accurate, the only way this merger can be completed is if QGSI cancels around 90M shares. Otherwise the percentages (QGSI = 97%, CoinAnalyst = 3%) simply do not work.
No matter what the situation is, QGSI needs to provide better transparency on issues where filings seem to directly contradict information the company has issued in press releases.
STJO/LFLS...added to positions......
STJO(.104): Picked up some more shares today, following the updates to the OTC Markets profile page. Management seems to be picking up the pace a little bit with regards to getting things updated. Legacy share valuation is under $1.4M at the current price. Just have a feeling this is going to move nicely at some point.
LFLS(.0799): Picked up some more shares of LFLS today. Currently averaged in under 5.6 cents per share. I first noticed it when Traderfan mentioned it over on Twitter after LFLS issued a press release on November 1. I'm somewhat surprised this stock has not been getting more attention. Unless I am really off on my analysis, this potential shell looks extremely attractive on a structural/fundamental basis.
Based on my understanding/interpretation of the press release, it looks like the CEO/insiders intend to sell more than 48M of their existing shares to a RM candidate. That would leave a legacy share count of less than 10M shares. Assuming there are no overly negative changes to that plan, LFLS certainly looks like a very compelling investment at these sub-.10 levels.
I added some shares today after noticing the float update yesterday showed an increase of around 3.2M shares. This is purely a guess on my part (after looking at the management/insider ownership table in the last quarterly report), but that float update suggests to me the possibility that the 621K investment club shares may have been distributed and two of the directors ( Daniela Haynie and Marc Phelps) may have been removed. Combined, the investment club shares and the director positions are roughly 3.2M shares.
QMEI...additional information related to Esther's departure......
EVCI..STJO..TCRI...added to positions recently.....
EVCI(.22): Picked up more shares of the EVCI shell at prices around the 21-25 cent level. I consider EVCI and BDCM (which I also own) to be the most attractive Synergy Management shells from an overall structure/valuation standpoint.
STJO(.0505): Picked up a few more shares of STJO at 4.5 cents. Yesterday's quarterly filing appears to provide the first confirmation that the 86.5M shares have been issued and the RPM merger has been completed.
Lack of timely updates/transparency on the merger probably contributed to the pullback under ten cents. Depending on what additional information/details materialize here, I think STJO would have the ingredients for a significant move upward. Medical devices, healthcare industry, and a legacy share valuation that is currently under $700K.
TCRI(.05): Picked up more shares of the TCRI shell under the 6-cent level. Q3 report should get filed in around 2 weeks or so, and it will be interesting to see if there are any updates or material information.
Investor interest in TCRI fell off a cliff when Munaf Ali disclosed that they had decided not to bring Phoenix public. Analysis of the risk/reward on this shell definitely became more difficult with that decision because it introduced much more uncertainty. It may not be a very popular opinion at the moment, but I still think the risk/reward looks somewhat interesting.
This is the way I am looking at TCRI right now: There are any number of scenarios that might play out here, some extremely good and some extremely bad. Maybe Phoenix decides to let Seng Yeap Kok (the current TCRI CEO, a consultant to TCRI/Phoenix, and the former majority shareholder) find another reverse merger candidate. Or maybe Phoenix with its extensive connections in the business world has other ideas on what it wants to do with the TCRI shell. Depending on how a reverse merger is structured here, TCRI's current legacy share valuation could be under $500K.
As of the last quarterly report, Munaf Ali and Phoenix still owned the majority shares, and they were paying all of the shell's expenses. I checked the LinkedIn profile for the Phoenix CFO (Jeetendra Bhatia) and he still mentions that Phoenix controls a stock in the United States. Phoenix issued a press release last week, and it reinforces the scope/influence of that company's operations. From my perspective it is hard to ignore the involvement of Phoenix in TCRI. Until that involvement significantly changes, I would like to have some exposure to this shell.
https://www.yahoo.com/now/phoenix-technology-eyes-global-expansion-084800622.html
HLTT(.30)...post-merger details on the proposed SPK/Varian deal......
CXKJ(.155)...Yananju Group is possible acquisition target......
QMEI...Esther Law's departure......
HLTT...Paul Mann's ASP Isotopes expected to IPO this week......
QMEI...$650K private placement in Besra Gold......
QMEI...revenue, Besra Gold position, Nasdaq......
YBGJ(.088)...$2.3+M of shares moved.......
On Friday, an entity controlled by the CFO sold 4,278,000 shares at 50 cents ($2,364,000). This was part of the proposed insider sales disclosed in the S-1 filing that finally was declared effective by the SEC on July 29. Next large insider sale might be a 5.7M block at 50 cents, from an entity controlled by a YBGJ director. The only other proposed insider sale is a 1.7M block from Cheung Ho Shun (but there is a possibility that he has changed his mind about selling, since he indirectly purchased an additional 1.6M shares at 50 cents about 3 weeks ago).
In my opinion movement of these large amounts of shares at the fixed 50-cent price is encouraging, especially in this difficult market environment. After these insider sales, I am semi-expecting to see an additional infusion of capital into the company at 50 cents at some point, to go along with the $819K earlier this month.