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With such a low daily volume of trading how do the savvy shorts sell massive amounts of shares at say $1.93? You said yourself that once someone tries to sell TREN that the pps would tumble. Thanks
TREN is really moving up today. Are you going to cover your short position?
TLRY seems to be in a death spiral as it has convertible debt financing. Almost all cannabis stocks are in free fall at this time.
TLRY cannot really bail out MMNFF when they are so weak themselves it seems.
Thanks
I read the dilution news. The second tranche for $7.5 million requires shareholder approval. What will be the percentage devaluation of share value after all is diluted? Thanks
This is a reference to what Tilray owns by Cheebacara at YF MMNFF board. It is said Tilray is not allowed to own shares.
“You know that’s a lie, they bought senior secured debt from Gotham Green that’s rapidly becoming worthless. TLRY can’t own any of Medmen and stay on NASDAQ. See B, that’s why I’m here, without me there would only be shill lies on this board.Do your DD people.
Since the toxic convertible debt holders want a lower price to convert their debt shares, doesn’t that fact put powerful downward pressure on the share price of MMNFF?
If the price were to drop to $0.005 would the conversions be 5X or 7 billion new outstanding shares of MMNFF instead of the 1.4 billion shares noted by the quoted bearish investor?
Could Tilray eliminate this toxic debt?
Thanks
There is news about muscimol gummies. If this really works for sleep it would sell. I wonder what the price will be per dose in comparison to Calm.
Thanks for the info. I did not know about the 500K per year fee to be on the OTC. That is a lot of money to spend when profits are minimal or nonexistent.
Tilray had gone to 300 intraday several years ago. It is down 22% today to 1.86. They are said to own 10% of MMNFF at this time.
A poster on Yahoo Finance summarized some key factors about the financials for MMNFF. There is currently $7.6 million cash on hand. Current liabilities are $44 million. There was a $31.2 million net loss in the past year. This rate of loss is accelerating.
There are currently 1.34 billion outstanding shares. There are 1.4 billion convertible debt shares waiting to list. That means a 52% reduction in share value due to future guaranteed dilution.
There are pending lawsuits.
I am not intending to be negative or disparaging. However just simply looking at fundamental financial measures it seems that caution would be advised. All this arguably might already be reflected in the price of MMNFF being down from a high of $7.00 to now around 2.5 cents.
Thanks. The doubling from 1.4 to 3 cents shows some sort of optimism. That was a timely call to buy.
Did Jimmy Chan break any laws? Does he personally get to keep prime California land and other assets?
MallenNV has detailed the textbook scam that is SGMD for us whereby letters of intent get written and signed but no actual real attempts at execution ever materialize.
The shorts are insiders in the know that never need to have any concern that they might possibly see a short squeeze.
Is there enough money involved here to interest a securities fraud attorney to get involved in a lawsuit about gaining justice for SGMD shareholders?
Can a clawback of the short insider winnings ever happen?
Thanks
I thought that MMNFF was specialized in cannabis products. Do you know that they have an interest and an expertise in psychedelic mushrooms. Like you said in your previous message, this in a newly exciting and also already experimentally proven group of efficacious natural substances for mental health treatment. Psilocybin is the main active molecule to my understanding.
Society is becoming ever more stressful and dystopian, especially for people who are not wealthy. There will need to be a healthy way to treat anxiety and depression. Cannabis is truly great. However psychoactive mushrooms might be an even better medicine for deeper levels of introspection of what it is that might bother a person or distress them. What happens is called meta cognition where the prefrontal cortex sees aspects of how the less executive levels of brain activity are functioning or perhaps in a state of dysfunction.
My bottle of Calm sits in my refrigerator ever since you said that Calm had caused your tinnitus to spike up. Is this still happening to you? Has that side effect happened to other people that you know of?
Tinnitus is an awful thing that is best avoided as much as possible. Tinnitus is generally associated with neural degenerative processes, but is not yet fully understood by neuroscientists. It happens in the auditory cerebral cortex and not in the cochlea.
I would like for Psyched Wellness to become commercially involved in the supply of dried psilocybin mushrooms to markets that are now opening up. I see a far greater demand for that product rather than ours which can treat depression and anxiety with proven efficacy and allow people to reframe how they look at their own perception of their problems and/or worries.
That can be a powerful thing if the mushroom taker is able to introspect and pay an earnest attention to what becomes revealed to themselves.
In Colorado there are already growers and companies that distribute this. I am interested in this assisted introspection myself. It is still a little bit underground it seems. In Denver the police are not allowed to arrest people due to a ballot measure that got passed. I think other cities in Colorado and Amsterdam in the Netherlands have also done this type of protective legislation. The DEA or FBI could still cause legal jeopardy in the USA under federal law if they wanted to do that.These Colorado companies will already have a business going when it becomes fully legalized perhaps with the requirement of a doctor’s prescription.
You are an independent thinker. That is admirable.
MMNFF is performing well. Tilray must have seen something that they liked. Tilray would also want to see the toxic debt situation cleaned up. You say however that you hate the share structure. Will Tilray help to eliminate the debt problem for MMNFF?
Cannabis might be the best product that humans have ever discovered. The benefits seem to far exceed it’s dangers. Independent thinking is a virtue and cannabis seems to promote new ways of thinking about and perceiving the world that we live in.
That is interesting. I have been told many times that the smart money would sell at least half of their position during each and every parabolic spike. They would know from experience or observation that there is always a sell off after such an outlier rate of gain that will allow them to buy back at a relative bargain to the spike high. They will expertly and reassuringly have taken out some profits and/or perhaps have doubled or tripled the number of shares owned.
How can you simply hold through all these future probable volatility spikes until your sell point at 50 cents? How would you feel if it spiked to 35 cents and then crashed down to $0.0003 to never recover?
Knowing when to cash in your chips seems to me to be a fundamental part of having success with trading or investing.
Thanks. MMNFF was certainly a timely long call on your part on a ferociously beaten down stock.
That is interesting what you say. My understanding was that retail investors in the USA were prohibited from purchasing CATV while under CE status. Please expound on how purchases can get made. Which are the brokers that allow purchase at this time.
Another member here had a Canadian investor buy the shares and then have them transferred to his USA brokerage account. Is this the process that you are referring to?
Thanks
I read that Tilray bought 10% of MMNFF. These large Canadian companies may buy up the small USA companies to gain an early foothold in the USA. I did buy a position long at $0.0175 and $0.018 because I did feel the FOMO. I should have bought when MallenNV suggested it at $0.014. What does it take to activate the MMNFF message board on IHUB? This discussion should be over there. Thanks
Actually you might be right. I could be a better stock picker. I need to sell more readily at times as well. You probably meant well but came across as brusque.
You say I question validity. What is the validity I am questioning?
I was fascinated by the short side trading activities that you have discussed. There are other people (eg IG) who say seemingly confidently that penny stocks are not commonly shorted. That naked shorting is a myth. That it would show up as failures to deliver. That the reported shares held short number is largely accurate. Your comments are entirely contrary to that.
Everybody financially savvy it seems is in on the schemes while the naive retail longs are ,it seems, systematically deceived. Your MO is to ride the coattails of these short side big player schemers. Nobody to your knowledge cares about the small fry retail long. It’s a nasty predatory game. You said that what the toxic debt lenders do is even too unethical for you to ever do.
Shouldn’t you as a beneficiary of all this scheming keep all these details a secret ?
Thanks
Wow this seems harsh. Sorry if my questions to you were inappropriate. Thanks for all the useful information you have posted in the past. Your knowledge about shorting realities is unique about a topic that is cloaked in secrecy and deception. I am looking forward to reading your book.
You seem disappointed that I didn’t buy MMNFF based solely on your tip.
I looked at buying at $0.014 but did not pull the trigger. It went to $0.02 today at the top with a volume around 6 million shares. There was positive cannabis news today regarding federal legislation allowing banking privileges to the cannabis industry.
What is your price target and timeframe?
The IHUB message board for MMNFF is not functioning. Perhaps you can get it started. Where do you see active accurate analysis and discussions about MMNFF?
What are the revenues and what is the debt? Is it toxic convertible debt?
Thanks.
DIDIY has a short interest date of 4/14/2023 and lists 3,012,800 shares held short. The outstanding share date is from 2021. Is all this information intentionally misleading? With so many naked shorts being possible and no proper registration of these shorts required, what credence does a shares held short number have?
Why is the outstanding shares number so old and so erroneous as to be off by a factor of 7X? It should not be so difficult to update the outstanding share count more often than once every two years.
Are these accounting deceptions designed to assist in the short selling scheme?
Thanks.
When you have a bullish opinion about a penny stock it is likely to be something worth looking at. Cannabis seems to be a tough industry to prosper in.
Tilray is at 2 dollars down from a peak of 300 dollars. Canopy Growth is a similar decline. Picking a bottom takes tremendous skill but could pay off if sales could take off.
Legalization at the federal level could change the downward trend.
An important question with MMNFF would be what is the toxic convertible debt situation which can truly ruin the prospects for a long position.
Thanks.
Are there enough buyers left in SGMD to do a massive reverse split, then have the smart and savvy people going short, and then have the massive dilution and the toxic convertible debt that pays the company officers while also assuring that the shorts can only make money and never lose money? The toxic convertible debt holders make large returns along with the shorts once they file a 3(2)10.
There has to be enough naive uninformed deluded investors to buy the pump and reverse split from the smarter shorts.
Can the toxic convertible debt holders also be holders of massive short positions that they could later cover with all the toxic debt shares?
Can the CEO of the penny stock company also hold massive short positions in the company that they are purportedly responsible for the welfare of?
Everybody is making money except for the retail long.
Everybody is in on it including the congressmen and women who get million dollar contributions from Ken Griffin.
Thanks to MallenNV who has discussed this topic in depth.
AD4NO, I am curious as to how that gets done. Canadians can buy freely. Is a Canadian stockholder allowed to sell his shares independently to an American citizen? Can they then just email the shares to a brokerage company in the USA with the designated account number? Are there any laws to be considered?
Thanks
OK the price per share has to drop and in the future you are certain to cover at a much lower price, you are saying.
The big boys are putting TREN into this scheme. They are massively shorting at this price level. Are these invisible naked shorts or properly registered shorts? Why would the price per share be rising while these massive shorts are occurring?
Do the big boys also own the toxic convertible debt while they are also doing the massive shorts? Where do you see the amount of toxic convertible debt listed and also the fine print which is important to see and understand? You say that actual short positions are usually invisible. How do you know that what the big boys are doing is actually going on? Do you ever purchase or offer toxic convertible debt yourself or with your group?
The longs must be stupid naive inexperienced investors who have been deluded by a pumped dream of a huge AI success story that has no chance of materializing. Will these stupid investors ever gain a clue about what is really going on?
Thanks
If a person can buy debt shares of TREN currently at $0.25 per share, why not simply buy these shares and then sell them to retail at $1.41? That would be an immediate way to make $1.16 on each share.
Also it seems to be true by what you are saying that you could immediately book a profit of $0.85 on the shares that you are holding short at $1.10. It would seem to be too easy and too tempting to book these profits and then go on to other additional profitable trades.
How can a retail trader avail themselves with the opportunity to purchase these debt shares? I would much prefer to buy shares of TREN at $0.25 rather than $1.41 that IBKR would want to charge me to purchase shares.
I still do not understand how you convince your broker to not require the margin to short depicted in the $2.50 rule. You say the broker knows the pps will have to go lower so they do not worry about margin. If I told IBKR this reasoning I do not feel that they would acquiesce to this reasoning.
I find this all to be fascinating how you are doing what you do.
Thanks.
Actually today’s high for TREN was $1.55. Now $1.41 up from $1.11 a few minutes ago. Volume traded is low. REED does not have much trading activity at this time.
If you put in a sell short position at for example $1.00 and then the stock price goes to $1.50 would you ride it out? Do you get a margin call ever from your broker?
TREN went to $1.49 today. Now it is at $1.11. There is a lot of volatility here. Do you put a stop loss at some percentage amount over your short position?
You tell a compelling story. I have some questions.
If the same block of 10,000 shares gets sold ten times over how is there not a failure to deliver on 9 of the 10 sales?
How is a short position registered as a long position?
How is the $2.50 rule being circumvented as it seems to be in actual practice for you? I have IBKR and they have margin requirements for shorting penny stocks that match the $2.50 rule precisely.
Have you yourself ever experienced a short squeeze on a penny stock?
It seems to me that once a penny stock company resorts to toxic convertible debt financing there is very little chance that the company could ever succeed. Company officers do get money for salary and bonuses, but the shareholders are wiped out. The toxic debt people and the penny stock company officers seem to be colluding to screw over the shareholders along with all the shorts.
For you a stock screen to search for prospective shorts might be to look for obvious scam companies with known corrupt officers, high amounts of convertible debt and no revenues. You would short them probably after a massive reverse split optimally or perhaps after a pumped run up in price.
Once in a great while there might be a real company with honest officers that has a revolutionary product that has explosive growth potential. Have you ever witnessed such a success story? Was Microsoft or Apple once a penny stock on the OTC way back when they were starting out?
Thanks
Correction. ETB (easy to borrow)
Does the ETB (easy the borrow) window mean specifically that the margin requirement is eased by the brokers. They perhaps want investors to be able to short easily so that the stock price drops and this benefits the broker as well because they are in on the scheme?
Does the SEC or other regulatory authorities ever check to see whether the $2.50 rule is complied with.
Market makers have a loophole in Reg SHO for maintaining market liquidity. Can they collude with traders to provide counterfeit shares to hold short? When real shares never do get borrowed there is a naked short position. How long can this naked short position be held without causing a failure to deliver problem?
Thanks
Can you kindly fill me in on how it is that you seem to be able to skirt around the $2.50 rule? I think you mentioned that rules are simply not enforced. Don’t you need a broker to also not have any compulsion to follow the rules?
The best time to go short is after a reverse split and just before an offering gets announced or other kind of dilution happens and this is what you have mentioned.
SGMD had gone to a high of 40 cents. From there it has been a steady downward progression to 0.0001. When and how did you see the ETB window that got you short at 18 cents? What sort of signals did you see?
I am looking forward to your book.
Thanks
A 2.87 million share purchase at 0.003 this morning. Is it fair that Canadians get this advantage over Americans? In what way is the CE protecting the investors of CATV when in fact it helped to wipe out the wealth of those investors?
If and when the CE gets taken off, what are the steps taken? Does it gets announced in advance or is it that one random morning it is simply gone and you would just have to be lucky enough to look that morning before the opening of trading that day to find out this information?
There are 220 million shares outstanding for AXIM. Do we still need to dilute by another 100 million shares to get to profitability?
If the stock price were to rise on anticipatory shareholder enthusiasm that would fortuitously decrease the necessary amount of dilution.
The other tests beyond DED could have sizable markets also but are relatively unknown by the general public. The cancer detection tests for example. Who can comment on those?
ImmunoPass could still have utility for the human population around the world as the Covid issue has not ended. AXIM wanted to have someone to do the heavy lifting with the FDA. Could Versea do this kind of heavy lifting for us?
Thanks IG. I did learn that a negative float does not reveal an extra large number of shares held short.
The issue of whether penny stocks get shorted or not remains unresolved for me. MallenNV describes a quasi legal racket where everybody is in on the shorting except for the naive patsy dreamer longs. He talks of brokerages making $50 billion a year on the penny stock sucker longs by being short these penny stocks. This contradicts what you say that it is not practical due to the massive margin required and the fees.
Here is a description of the short sale scheme for penny stocks made by MallenNV on the SGMD board yesterday.
“When an OTC is shorted, most if not all of the ones shorting the stock know full well that soon they will be diluted and the stock will drop. That way they know for a fact they can buy back the higher sold shares for less with out spending a penny.
The OTC is not a risk shorting the stock because everyone is in on the scheme. Many OTCs will make it HTB (Hard to Borrow) but in order for the plan to take place, brokers have to put the shares ETB (easy to borrow) and that window is very narrow.
You have to get in when the schemers and brokers get in before they close out the ETB and make the shares HTB preventing retailers from making the same move as schemers. Plus you cant short the ETB too much or they may close it down. You have to know a planned ETB short sale will generate $10,000,000 to as high as $100,000,000 so you have to just get in with $100,000 more or less so as not to disrupt the scam dilution dump that soon follows.”
I did not know about the ETB and the HTB windows. This seems to be essential knowledge to short penny stocks profitably.
The stock price today varied between 0.000001 and 0.0002. Buying at the bottom(only expert market qualified traders can) and selling at the top is a 200,000% gain on each trade.
That would appear to be an attractive return for the risk of possibly losing your entire stake. 0.000001 might be a floor that the stock is unlikely to go under in the short term before a bankruptcy happens which would convert 0.000001 to a value of zero.
That webinar was highly informative. Thanks Tex.
Even without a CLIA waiver the sales seem to be growing significantly as moderate complexity labs are being signed up by Versea at the rate of 5 per month. The CLIA waiver he says would change things by an order of magnitude or multiple orders of magnitude.
The profit margin per test sold is $7.00 and the cost to produce is $3.00. Less tear sample is required for the AXIM tests ( there are two different complimentary DED tests that are already FDA approved) than competitors tests and they have the time to a test result down to 8 minutes.
He talks about a market for DED that is at or larger than $1 billion per year in sales for DED tests. I don’t know if he meant USA market or worldwide. To be cash flow positive is the goal by 2nd half of 2023.
At $0.029 pps AXIM seems to be entirely overlooked by investors. This is my own opinion. The failure with getting FDA approval for sales to the general public for the Covid antibody level test (ImmunoPass) ) was a massive blow to the company and investor confidence.
He said DED is not as exciting as Covid but still significantly exciting.
$126,000 per month in sales is the break even point, he says, for AXIM. My own calculation puts that at being able to sell 18,000 tests in a single month.
Thanks again for posting this informative webinar.
AD4NO were you able to acquire shares of CATV through a Canadian brokerage?
What are suspected to be the subsequent products that Psyched Wellness could sell after the Amanita Muscaria product that we have, “Calm.” Is there yet any evidence that sales are increasing?
There was a post on Stock Twits that MF had said that the shareholders “will be pleasantly surprised.” He might be waiting for the CE to lift before publicly announcing his business plans.
I have no proof that he said or wrote that phrase in quotations above. It is just what I read on StockTwits for whatever credence that may have.
Thanks for sharing these pump and dump penny stocks that you have familiarity with. I looked at all the charts which are mostly from the upper left to the extreme lower right. There were a few spikes. A person would make huge money by being short.
You are saying with good evidence that it is unfeasible by being massively expensive (requiring incredible amounts of margin account cash) to short these stocks due to the $2.50 rule.
Have you ever held a short position in any of these penny stocks that you have watched or commented on? Do you see any way an investor could skirt around the $2.50 rule. When MallenNV claims to have shorted SGMD at $0.18. Do you believe that he put up the 1288% margin that is required by the rules?
At $0.0018 to short a stock the required margin is 12,880% and very little of a person’s capital is working for him or her at that margin requirement.
Thanks MallenNV. This is informative and fascinating reading.
Some stocks are shown by IHUB financials on penny stock companies to have a negative float. I did not know a stock could have a negative float. I did not know that naked short shares could actually exceed the total number of outstanding shares.
A burning question that I have is could naked short shares created cause the share float number of a penny stock to have a negative value? Why is it that the float number listed by different data providers can differ by billions of shares?
What brokerage do you use to short penny stocks? When is your book going to be published?
Another question is if a short position is never covered by buying back the stock are there any taxes owed? If a company goes bankrupt for example there would be it seems never any need to cover and perhaps no taxes would ever be owed. Is this true?
Thanks again.