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Cant believe this one hasn't been discovered yet. Micro cap tiny float blockchain play. We just need them to change the name to Snap Blockchain or BlockchainRUs. Seriously though, STVI is the best blockchain play I have come across - better than RIOT, better than Long Island Tea. This is a legit tech company working with smaller blockchain startups.
Stocks that Go Parabolic and Why Remark Holdings May Be On Deck
Market and company specific conditions present in many parabolic gain situations -
1) a trading day where many who are usually market participants are absent or those present are less than engaged. Trading days usually characterized by significantly lower trading volumes than a normal day, like the day before a holiday or holiday weekend. The half trading days (day after Thanksgiving and Christmas Eve) each year are the most obvious examples.
2) a stock has new found momentum going into that trading day. It can start on one of those half trading days, but most often it occurs on the trading day when it has had a day or two of increasing momentum days. The best possible scenario is when it has momentum leading up to one of the half trading days.
3) The stock has a smallish float - key to a parabolic move - there are simply not that many shares to be had and the demand for shares at a given price exceeds the available shares so the bid is being driven higher faster than those who wish to sell are placing their orders. Long’s looking to sell recognize what is happening and start to pull back when they realize they can sell at higher prices if they wait. Shorts start getting pressured by their brokers to bring in more capital - not so that they can short more shares but they must bring in additional capital just to maintain the short position they have. The path of least resistance there is to buy to cover and when they do that adds fuel to the fire and pushes the shares higher. If the stock moves up quickly, some shorts are not given the choice of adding capital as brokerages will raise the capital requirement and/or force a buy in of the position. When that occurs there are no "limit" orders, they go into the market and buy at the market until the short position is covered and this pushes the price up much higher very quickly. As is often the case with such situations, there are day traders looking high and low to find a stock with this kind of action going on
4) Short Position - parabolic moves are often driven by or at least exacerbated by short sellers scrambling to buy to cover. When the stock moves significantly higher they are faced with the choice of allocating more capital to that trade or covering. If the stock moves significantly higher in a very short period of time, they can get hit with the double whammy of need to bring in more capital based on the move up but it is also quite common for brokerage houses to raise the capital requirements when they see a spike in volatility. This is when you most often see forced buy ins and panic buying that pushes share prices to high that would not have achieved in such a short period otherwise.
5) Plausible Valuation Justification - not necessary for a parabolic move higher, but makes such a move much more likely. When a company has a new or unique product or service with a very large addressable market that it is well positioned to address, it becomes easier for fundamental driven traders to both buy a stake and to hold those shares when the stock starts moving higher. If everyone dumped their shares on the first 100% leg up, it would make it more difficult for the stock to make a parabolic move, but that will not be the case where there is a good reason to hold.
Remark Holdings' situation covers each item above -
1 - tomorrow is the half day
2 - Remark is up about 60% over the last few trading days on record volume.
3 - Remark stock has a float of less than 15 million shares and the CEO owns about 25% of the shares.
4 - the short position reported by Nasdaq was the largest in the company's history, by about 300%. It is widely known that there is a very large unreported or "naked" short interest that may be several million shares based on the unauthorized listing in Germany.
5) Remark's Kankan has deals generating revenue in the finance and food service regulation business in China that each could justify a billion dollar valuation if the company even takes a high single digit market share. The company's Fintech product was live for 3 months and was used for $100 million in loans in a $300 Billion market growing by 30% per year. They get 5% market share that would be $15B in loans and the model is to take a % of each loan. Kankan is the early leader in that market. Kankan also has AI based object recognition technology installed and operating in hundreds of restaurants in Shaghai and the government is requiring all of the country's restaurants to have that service. Kankan is not the only one offering that service, but it is the leader in Shanghai so far and that bodes well for their potential to gain market share in other regions. Bottom line, Remark's Kankan is the picture of a billion dollar startup in progress. It went from zero to $6m in revenue in about 7 months, it will bump that to $30m+ over the next 12 months on ORGANIC growth alone per the CEO and all the analysts watching the story unfold think that number may be $40m or greater. It is not hard to justify a billion dollar valuation for an AI company growing like Kankan when it has an early lead in markets that are growing like those in China.
The MARK situation has all the trappings of a stock that could go parabolic on Friday and/or Monday. Would like to hear some discussion of how high MARK could go
A delay of this long for the 10k filing would cause de-listing if JRJR were on the NYSE, Nasdaq and even the OTCBB, but the NYSEMkt is very lax with its enforcement of filing requirements. the NYSEMkt is the only place that JRJR could continue delaying without getting pushed to the pink sheets.
Class actions make money for the attorneys only. Not worth your time even if you could.
50,000 shares due Monday to avoid $10,000 payment
JRJR has to pay another 50,000 penalty shares to Dominion on Monday if they don't file the 10k to avoid paying $10,000 in cash. If they don't file their 10k Monday, they will have to file another NT for Q1 and you longs will hold stock in a company that has not filed a financial statement in over 6 months. The big question is - if no 10k filing, who will you sell to on Tuesday?
Other questions for the bulls -
-How many times do you estimate that they will give 50,000 shares to Dominion to save that $10,000 in cash?
-How many times will JRJR trade for $1 per share on the same day that they give stock away to Dominion at 20 cents per share?
And the last question that everyone avoided when I asked it before - what happened to the $500 million "war chest"?
What made you think these guys care about shareholders?
Why Glen Jensen might be a good fit for JRJR -
Glen Jensen was fired from the company in 2011 when Agel explicitly accused Jensen of lying to the company, conspiring against the company, abusing his authority as CEO, misusing company funds and using company resources to try to build a competing company. While he was on the Agel payroll. They sued him for it.
After getting sued by Agel, Jensen started an MLM that he said would "... unequivocally change direct sales as we know it". It was a forex trading MLM called Uprize, but it disappeared about a year later. It seems that he left Uprize to start another MLM company called "Go Fun Places". It was shut down by the SEC just a few months after he arrived and a $30 million lawsuit was filed. The whack-a-mole game continued when he popped up next at a company called Epic Era and was soon the individual named in a corporate lawsuit for "corporate espionage" and a host of other charges that amount to lying, cheating and stealing while breaching a contract.
This is the last five years of Jensen's career that the JRJR news release announcing his emotional return to Agel seemed to overlook. Forget the last five years and focus heavily on the two decades ago part right?
Over the next seven days, the slackers among small cap companies will be posting their Q1 results. Shareholders of JRJR are betting that JRJR will file its fourth quarter 2015 report over the next 7 days. The company has explained that the delays were because of a new auditor (even though the auditor has been there for a full year), because of a new ERP software system (new = installed in 2014) and because they have operations in 43 countries and its hard to pull all that information together (and 43 countries is exactly the same number of countries they were in the last time they had to file a 10k and the exact same number of countries they were in for the 10k before that).
Friday JRJR closed at 99 cents, its first close below $1 in a few months. But there were over 30,000 shares for sale at $1 for the last half of the day and it has seemed that there have been large blocks for sale for several days now. I guess we will see how many sellers show up as each day counts down to the next SEC deadline with no announcement from the company about filing that 10k from last year.
Good News - Remember JRJRs $500 million War Chest News Release
CVSL's $500 million "War Chest" -
CVSL to raise $500,000,000 For "War Chest" To Acquire Additional Social Commerce Companies
DALLAS, Dec. 11, 2013 /PRNewswire/ -- CVSL Inc. [stock symbol: CVSL] said today it is raising an additional $500,000,000 to increase its "war chest" for acquisition of micro-enterprise companies that conduct social commerce
http://www.jrjrnetworks.com/profiles/investor/ResLibraryView.asp?ResLibraryID=66918&GoTopage=7&Category=2113&BzID=2203&G=710
You have to read that, it is pretty funny now. If the company wasn't just completely making it up that they had the ability to place $500m in debt to put in their "war chest" for acquisitions, then what happened to those lenders? Read the whole news release. Then ask why they soon were selling stock at less than half its current trading price with huge warrant dilution just to raise $20 million. So if this news release wasn't just complete BS, then what caused the lenders to refuse to loan them $20 million when they previously said they would loan $500 million?
Next question - six months ago they had to pay 9.75% to raise $4 million. Why do that instead of taking it from their "war chest" lender?
B) Same news release as above - John Rochon Jr. said the businesses are on a $150 million annual run rate -
"We're ahead of schedule. We're in eight product categories, we have worldwide presence in 40 countries and we are on a run rate to exceed $150 million in annual revenues." That was on December 13 and over the next 12 months the company achieved $108 million in revenue. Only missed by $44 million, not too bad right?
That was an official news release filed with the SEC. You people who are making investment decisions based on numbers that JRjr posts to Facebook accounts might want to rethink
SA article says YIAH may be worth $3 per JRJR Share-
http://seekingalpha.com/article/3957327-will-jrjr-networks-spin-yiah-first-pure-play-gourmet-food-kit-ipo
says YIAH may be worth $3 per JRJR Share if the venture capitalists valuations for similar companies is used to value YIAH. But it would probably get more in an IPO due to scarcity factor as first pure play in Gourmet Food kit biz. So buying a JRJR share for $1.80 gets you $3 worth of YIAH stock and Longaberger, Agel, Kleeneze, Betterware for free and these "free" divisions generate over $150m in revenue per year.
Shorts are toast - moved up through 200 Day MA of $1.37 on Friday.
http://stockcharts.com/h-sc/ui?s=jrjr
There will be a little resistance at $1.78-$1.80 and then nothing until a test of the 52 week high at $2.99. A breach $3 and it goes to $5.85. If you are short JRJR and you can read a chart, a breach of $1.80 has to be sobering for you.
Moving Longaberger ops to China. LOL. Shorts are getting desperate. JR is miles ahead of you guys. Shorts who have held that position until now deserve a Darwin award nomination. The steps taken by JRJR in 2015 will make each of the big four companies profitably in 2016, yes including Longaberger which might possibly be the second most profitable besides YIAH. YIAH is going to make JRJR shorts wish they had done a little more homework before making that unfortunate bet.
Groove VC update at 1:59pm says CVSL goes back to $3 near term, much higher long term. Short interest report last night puts us within 1% of all time high but Groove says current short interest is much higher now because that report was based on Sept. 15 before the big volume started. Link to blog - https://groovevc.wordpress.com/2015/09/25/groove-portfolio-update-rave-inuv-mark-cvsl/
Short Interest Report After Close Thursday $3.44+ is where the charts say we may run into resistance tomorrow. The volume today was the highest since the stock gapped down from $4.40 to $2.80 in February. Charts say we could close that gap by Friday's close due to short covering and traders piling on. Here is the chart -
http://charts.stocktwits.com/production/original_43073458.png?1443053981
Breakout to fill $4.40 to $2.60 Gap Down - this is a corrected post, sorry I reversed the numbers but the point is that this stock gapped down from $4.40 to $2.60 overnight in February and it appears that we have a breakout that may fill that gap. Here is the post from the YF CVSL message board -
After the market closed on February 24, CVSL announced a stock offering. The stock had closed at $5.50 on the 24th and the news of the offering caused the stock to gap lower to $4.85 and it traded lower much of the day before closing at that same level. The next day, the stock closed at $4.40 and these two days were the only trading days before the offering was priced, because the following morning (February 27th), the offering was priced at $3 per share before the market opened. The opening trade on February 27th (the first trade after the pricing of the deal) was at $2.60 and the stock traded 2 million+ shares before closing at $2.45 for the day. From a technical standpoint, since the stock closed at $4.40 on one day and then opened the next at $2.60, there is a large 41% gap down and the stock has never come even close to closing that gap. I think that the chart guys will tell us that a move up through either $2.45 or that $2.60 level (from a technical standpoint) should be a breakout - thoughts??
corrected
Short Squeeze discussion this morning on Seeking Alpha article comments - I think the short interest will increasingly become a key factor driving CVSL higher and the report that comes out tomorrow will only tell part of the story. I believe it will show the short interest moving higher and closer to the record short interest reported a few months ago (right after the Longaberger CEO's firing) but that may pale in comparison to where the actual short interest is NOW. CVSL first crossed the $2 threshhold a week ago and since that time, our internal tracking suggests that the short trades have increased significantly. There appears to have been heavy shorting of CVSL since we crossed over the $2 threshhold and unless something changes in the next week, the report that shows the short interest including this week through Sept. 30 will be the highest in the history of CVSL and judging by the volume of the past two weeks I suspect it will be significantly higher. The most interesting thing about that timing and what you have posted Tim is that I believe that CVSL may start making open market purchases of its stock to fulfill its stated plan to increase stock ownership among its sales people and I think the buying will start on or soon after October 1.
Link to full comment - http://seekingalpha.com/article/3516486-the-3-catalysts-that-could-move-cvsl-higher
Read the chaiman's comments on the last call, sounds like they already had some really heavy interest in this new skin care product and we should see some big numbers hitting that top line over the next few weeks/months. $4.50 - $5 by Jan. is very doable
$1 was an aberration, this stock will soon be over $2 for good. Anyone who buys this stock today should more than double their money by this time next year.
CVSL will break $2 within 30 days regardless of what happens in the broader market. So I am posting here that we will at least get to $2 within the next 30 days. Would love to hear the bear side for anyone leaning that way. I see several catalysts that lead me to believe $2 is coming soon. Looks like they finally posted a transcript of the earnings call - read it and see if you see them too -
http://www.cvsl.us.com/Profiles/Investor/Investor.asp?BzID=2203&from=du&ID=66945&myID=15197&L=I&Validate=4
Longaberger and Agel sales reps who are shareholders - saw your earlier comments here. I wondered if you have you seen the "Open Letter to CVSL Sales Reps" that is making the rounds today?
Here is a link to the blog - https://groovevc.wordpress.com/2015/08/20/open-letter-to-cvsls-sales-reps-employees/
Saw it mentioned on a Yahoo message board and I copied some of the commentary there. It is to Sales reps of Longaberger, Agel, Kleeneze, Your Inspiration at Home, Paperly, Project Home, Tomboy Tools and Uppercase Living. The gist of the letter is that the company has turned a corner, sales reps can see the numbers going up at each weekly meeting, but no Wall Street analysts cover CVSL so there is no one to tell investors that the issues the pushed it below $3 in the first place are not just solved, but the company is actually doing significantly better than it was when the stock was trading over $3. The letter tells them to buy CVSL shares so they can make capital gains on the stock while making monthly income selling the goods and services they offer. It also tells them to be sure to pass it along to the other sales reps at their meetings so that the coming gains in CVSL stock can create wealth for the people who are driving those gains - the sales reps
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If even 1/2 of the sales reps at CVSL bought 500 shares, it would equal an amount more than the entire public float of CVSL, because insiders own close to 70% of the shares. The entire public float is 11.8m shares, so you can do the math, but this makes a great deal of sense. If the shares are held in the "strong hands" of its sales force, there would not be sellers to push it down any more, it would start and keep rising and the sales people at CVSL would have no reason to jump ship and take their downlines/ contacts to other direct sales companies.
I would love to hear the thoughts of the CVSL sales reps on this board