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I don't have L2
Are bids stacked up on the L2 this morning?
8-K Filing from March 12!
Notice the price (in bold) at which the shares can be bought by the new C.E.O.: $2.60; and notice the price (in bold) at which the shares can be bought by Mr. Dangler: $2.88! The share price should take a rather radical bounce North in the near future; it appears the leaders of the company are not at all worried about financing; they've probably got it lined up already.
"Prospect Global has appointed Damon G. Barber, previously our chief financial officer, as president and chief executive officer effective March 7, 2013. Patrick L. Avery, our previous chief executive officer, has agreed to provide consulting services to us for a minimum of 60 days. Gregory M. Dangler, previously our vice president of finance, has been appointed interim chief financial officer effective March 7, 2013.
Mr. Barber, age 45, served as our chief financial officer from December 2012 to March 2013. Prior to joining Prospect Global, Mr. Barber was the chief executive officer and an executive director of CST Mining Group Limited from April 2010 to September 2011. While at CST, Mr. Barber led a $600 million public equity raise to acquire two copper mine development projects and subsequently directed the development of one project into production and directed the development of the second project to where it was sold for $505 million and returned CST approximately two times its total investment in the project. From June 2010 to September 2011, Mr. Barber also served as chairman of Marcobre S.A.C., a joint venture between CST and Korea Resources Corporation and LS Nikko. From October 2011 to December 2012, Mr. Barber worked as a consultant in the natural resources industry and managed his personal investments. Prior to joining CST, Mr. Barber was a managing director at Deutsche Bank from October 2007 to January 2010 and also served as head of Deutsche Bank’s metals and mining investment banking practice in Asia-Pacific from January 2009 until January 2010. From February to March 2010, Mr. Barber provided consulting services. Mr. Barber has over 20 years of experience in the natural resources industry in both management and advisory roles, including over 12 years advising and assisting natural resource companies on mergers & acquisitions, debt and equity capital raisings, leveraged buy-outs and project financings during his time with Deutsche Bank and from 1998 to 2007 as a member of Credit Suisse’s energy group. Prior to this, Mr. Barber was a bond trader at Credit Suisse First Boston from 1996 to 1998 and was also a section foreman at CONSOL Energy Inc.’s Loveridge Mine from 1990 to 1994. Mr. Barber holds a Bachelor of Science degree in Mining Engineering, cum laude, from the University of Kentucky and a Master of Business Administration degree, with distinction, from the Wharton School of Business.
We expect to enter into a new employment agreement with Mr. Barber shortly which will be described in, and filed as an exhibit to, a Current Report on Form 8-K. Mr. Barber currently has an at will employment agreement with us effective December 13, 2012. Pursuant to the terms of his employment agreement, he receives a base salary of $450,000 per year and received options to purchase 1,000,000 shares of our common stock exercisable at $2.60 per share. 333,334 options are fully vested, 333,333 options will vest on December 13, 2013 and 333,333 options will vest on December 13, 2014. The options will vest immediately upon a change of control or if Mr. Barber’s services as chief financial officer are terminated other than for cause or by Mr. Barber for good reason. Mr. Barber is eligible for an annual cash bonus based on performance goals established by the compensation committee of the board of directors in a maximum amount of 120% of base salary. His existing employment agreement is filed as Exhibit 10.1 to our Current Report on Form 8-K filed on December 18, 2012.
Mr. Dangler, age 31, has a broad background in private equity investing, development of large-scale technical infrastructure projects, and the financing and management of international growth companies. Mr. Dangler served as our vice president of finance from March 2012 until March 2013 when he became our interim chief financial officer. From October 2011 to March 2012, Mr. Dangler managed his investments. Prior to that, Mr. Dangler served as chief executive officer of a technology and telecommunications company from October 2008 to October 2011. As the founding executive, he helped the company raise capital and establish its global presence with operating interests in Africa and South America. Prior to that, Mr. Dangler was an associate with ITU Ventures, a leading private equity and venture capital firm focused on growth stage technology investments. While with ITU, Mr. Dangler executed private and public equity transactions, directed activity for mergers and acquisitions, and provided strategic support to portfolio companies. Mr. Dangler began his professional career as an Air Force officer managing complex and large-scale infrastructure projects. Mr. Dangler received a Meritorious Service Medal for outstanding achievement in delivering a large-scale technology program, which directly supported over 20 national security space launch missions. Mr. Dangler received a BS in Mechanical Engineering from the United States Air Force Academy and an MBA in Finance from the University of Southern California’s Marshall School of Business.
Mr. Dangler has a pre-existing at will employment agreement with us effective October 19, 2012. Pursuant to the terms of his employment agreement, he will receive a base salary of $180,000 per year and was granted options to purchase 300,000 shares of our common stock at $2.88 per share which vest as follows: 150,000 options are fully vested; and 150,000 options will vest on October 19, 2013. Mr. Dangler is eligible for an annual cash bonus based on performance goals established by the compensation committee of the board of directors up to 80% of base salary. A copy of Mr. Dangler’s employment agreement is attached hereto as Exhibit 10.2.
We entered into a Consulting, Termination and Release Agreement with Mr. Avery effective March 7, 2013, which provides for severance of $480,000, payable in accordance with our regular payroll practice, payment for accrued vacation days and payment of an additional $5,000. Under the agreement, Mr. Avery will provide consulting services to us as a Senior Advisor for 60 days, which period may be extended by mutual agreement. A copy of this agreement is attached hereto as Exhibit 10.3."
What does the L2 look like? What gives you the impression we'll have a good day tomorrow? I like what I hear!
I think we have a bit of a gap up tomorrow morning once the news sinks in and the panic stops.
Hold onto your shares folks; buy more if you can. We are one announcement away from this being back above $1.20. I wouldn't be surprised if we close green today.
This is really good information. The price should gradually climb as things do not sounds as bad as the panic sellers made them sound.
Looks like we may have hit a fairly solid bottom at .3; she's rising now.
Well, this may be crazy but I jumped in at .28. Time will tell if that was wise.
Desperate seller; buy them cheap while you can!
Definition of 'Accumulation Area'
A price range in which investors typically purchase shares of a particular stock. The accumulation area is determined by looking at the volume and its corresponding price. It appears as a rectangle with a price line bouncing up and down between the upper and lower limits. According to technical analysts, stocks that hit the accumulation area presents an opportunity to buy because it is expected to attract more demand.
Investopedia explains 'Accumulation Area'
Investors use technical analysis techniques, such as the on-balance volume (OBV) method, to detect the momentum of a stock. If a stock doesn't seem to fall below a certain price, this can be a sign that the stock is in an accumulation area and may be more likely to attract more investors, allowing traders who see the trend to profit from increased buyer interest.
So far the strategy is working well for them: put shares on the ask in order to scare investors into selling. I guess this is good for us in the long run so that those holding are sure of what they're holding.
If you're looking to load up, it looks like we might find some cheap shares this morning before she pops up. Looks like we have a seller who wants out. Congrats if you caught that dip!
I'm not looking to you to connect any dots; I can connect them much better on my own. I'm ensuring manipulators are kept in check, manipulators also known as flip-floppers.
I'm not asking them; I'm asking you because you stated in unequivocal terms the next move is fundraising. Because you stated this I am asking you for the due diligence (actual conversations with insiders) you used to back up your statement. Do you have any?
I don't mind negative truth provided it's the truth; I greatly mind manipulation and stealing on the part of those who want to scare folks so they can buy in cheap because they sold shares too early.
Thanks for your negative speculation, Rain. Do you have proof of that which you speak? Has the CEO or anyone in authority actually said that which you believe will happen?
Also, why does the company need to raise more money when the lawyers are working pro-bono? It doesn't.
I'm back for good now; good to be here again. It looks like we're fairly steady at .4 as a base. It also looks like some nice accumulation has taken place in the high 30's and low 40's which suggests were about ready for the next leg up.
Be patient and hang in there folks. Buying pressure will come periodically and unexpectedly, and when it does you'll be glad you're in the game. Only 15 weeks until the Markman hearing; can't wait to hear the results the morning of June 28!
Tink
If you're new to patent stocks, welcome aboard. Here is some information which may prevent you from losing your tail and may help you make money by investing wisely:
1. Infrequent events, not frequent news, are the major catalysts upon which you must keep your eye. News will be very infrequent, if any at all. Companies involved in litigation must speak seldom, if at all, and what they say must not drop hints about what may or may not be happening. Therefore, get used to very little news, and don't try to read between the lines when we do receive news. News concerning litigation will be a mere statement of fact, not a stab at speculation.
2. The infrequent events provide massive volatility which usually more than makes up for the rather mundane day-to-day trading.
3. Keep your eye on news only, not on speculation. You'll hear many traders speculate. Don't buy it. Facts, document releases, numbers, patent validity, and news reporting these items is the only thing which matters here. Read them when they come out; base your trading on them and on nothing else.
3. Because news is infrequent, buys and sells will come seemingly out of nowhere. In WDDD's case, significant buys will come as exposure increases. And when sells come they will usually be for absolutely no reason other than an investor or two wanted to get out for personal reasons or to invest elsewhere. Therefore, when selling hits, don't panic. It will end and the price will climb slowly back up. Folks who are here for the Markman aren't just going to jump ship in mass because one or two investors have to sell. Keep your wits about you; oh, and if you don't want ulcers, then don't watch the stock every single day!
4. You have to see the end from the beginning. Interest and exposure will grow the closer we get to the Markman hearing. You can figure out what that will do to the share price...
Hey guys and gals, got a rare occasion to hop on the internet for a minute. Today is a great day; 8 more of my buy limits were hit! This is textbook dip characteristic of these types of plays where the bottom drops out and many panic sell. When these come, BUY...The dips are usually begun by one or two sellers, and then other panic sellers jump on board. If you time it right you can get some pretty cheap shares. Congrats to all who were able to buy in!
And as for dropping below the 10% moving average, such math may work for the average penny stock with no news and no products, but the sole driver of this stock is the Markman hearing. There is indeed news; it will just take 3.5 months to receive it!
Cheers; will be back for good in a couple weeks.
One last post before I'm outta here. Things are getting pretty exciting around here! I'm really looking forward to checking back in later in the month! Great stuff; the more exposure this stock undergoes the more people will come on board sooner rather than later. Looking forward to the Markman hearing!
I'll be preoccupied with other things for about 3 weeks and thus absent from the board. See y'all sometime later in March. Looking forward to a strong month with WDDD.
Tune out the self-centered cowards who are in it to steal money from others.
I've done my own due diligence and arrived at entirely opposing opinions as you have. Please show me the due diligence behind your statements. And if there is no due diligence behind your statements, then can you please take your collective, childish, manipulative ignorance elsewhere? Thanks in advance.
He did this down at .18; scared me so much I didn't buy.
Then he did it at .24, and at .27, .29, .3, and .34. Lost my stomach each time...
I don't know what it is, but it appears a scare tactic to keep things low while someone covers. As far as it keeping the price down, well, you be the judge: it works for a while, but buying presses right through it in a matter of minutes.
The more I watch this stock action the more I am confident in where it is headed. It trades nearly identically to VRNG. For those of you new to this sector (and I consider myself fairly new to it yet; others are much more familiar than I), very few people mess up when the price spikes, but where many get burned is they sell on dips. They start turning to charts and trader analysis, and when bottom support levels are broken they sell. And right about the moment they sell the stock goes up inexplicably. Remember one word: volatility. The volatility in these stocks breaks both the usual high limits and the usual low limits, but it remains tethered to an average price somewhere in the middle.
It might be helpful to think of the trading range like a tetherball on a pole. Most stocks are balls lashed to the center pole with short ropes. Therefore the price moves very little, either plus or minus, from the pole. But stocks like WDDD have a very long rope. The pole (fair market value based on DD) remains stable, but the swings either way are huge because of the long rope. Another way of putting it is this: if most stocks will fluctuate plus or minus 1-2% from fair market value on a daily basis, these stocks will fluctuate plus or minus 10-15% on a daily basis. Such fluctuations make chart analyses less helpful for the long term investor.
When this stock dips, keep in mind that it will look momentarily like the bottom has dropped out--and I mean entirely dropped out, not a buyer with 10%--and the temptation is to take a huge loss by just selling. Wait. Don't panic. Buying pressure comes not in small waves close together but in large waves spread far apart. Remember this for the next major dip. It will save you a lot of stress and irritability. Keep your eyes on the Markman, not on the charts, and if you love charts at least make sure you don't lose sight of the Markman.
I write this to keep newcomers from losing their tails in these plays. Stay the course; you'll be handsomely rewarded.
If you think VRNG, that should be a helpful trading mindset. And one word described VRNG: volatility. Huge surges in price and volume followed by stretches of cooling off and low volume drop. How do you trade such a beast? If you bought at peak, average down and always leave a little gunpowder for major dips. Low volume dips are a good buy, but occasionally you'll get one or two large shareholders who sell simultaneously and make the stock tank for 15 minutes or so, these are GREAT buys. And be patient (you already know this). Markman is coming; price will increase.
Get them while they're cheap this morning. Great time to buy. Soon enough the garage sale will be over and we'll have to pay full price.
It's happened every day for the past week. Someone (an MM? a short? who knows) interested in intimidating owners of the stock into selling early morning so they can scoop up the cheap shares, that person sells a miniscule amount of shares premarket. It's not worked yet, but it is a strategy they continue to try.
Seeking Alpha Article:
http://seekingalpha.com/article/1233501-how-they-found-the-next-vringo
How They Found The Next Vringo
Feb 28 2013, 10:39 | by Greg Miller | about:SPEX
includes:PRKR, VRNG
I sat down to do my evening research yesterday and slapped my armchair, amazed at the ingenuity of today's young traders. "I can't believe it! They just beat me to it. How could I have been so slow?"
They found the next Vringo (VRNG). It's Spherix (SPEX).
Well, the cat's out of the bag, and I am three days late. Everyone wanted to find the "next Vringo," and plenty submitted their guesses, but now it's official. To keep myself disciplined, I am forcing myself to write this article. Punishing myself by missing sleep tonight will teach me a good lesson.
As if the missed profits in the following chart haven't already taught me enough …
(Click to enlarge)
Monday: $6.74
Wednesday: $11.67
= missed +73% in profits
How They Found the Next Vringo
Most people associate Vringo with financial celebrities like James Altucher or Mark Cuban. A lot of people are waiting on the sidelines for these hot shots to announce their next "pick" in an eloquent Wall Street Journal or New York Times op-ed. Unfortunately, there haven't been any op-eds from the Vringo crowd.
In fact, everyone involved with Vringo has been pretty quiet since the Google (GOOG) ruling. Understandably so. Vringo didn't quite make it to James Altucher's $18 per share. (We're hovering around $3 at the moment.) Also, investors who got excited before the ruling and bought in the $4s or $5s are deep underwater on their investments, as the trial itself was anti-climactic in terms of share price movement. It's been a slow downward drift with a lot of quiet, disgruntled investors.
Vringo investors have been patiently waiting for the next stock pick ... but they already missed it. It was announced on Monday. I missed it. Did you?
The Original Vringo Investors
What most Vringo investors do not know is that the people who made the most money in Vringo were not celebrities but investment funds. Specifically, the early institutional early investors in Vringo were Iroquois Capital and Hudson Bay (a private equity arm of JP Morgan).
James Altucher didn't announce his investment until March 2012. Mark Cuban didn't invest until April 2012. Iroquois Capital and Hudson Bay started long before either of them.
Specifically, Iroquois Capital was acquiring a stake that grew large enough to require a filing by July 2011. Indeed, months before anyone had read James Altucher's glamorous articles or J.P. Moreno's 55-page whitepaper, Iroqouis Capital had already invested heavily in the company. In April 2012, Iroquois Capital owned 6.4% of Vringo. The day before Mark Cuban invested, Vringo's largest shareholder by far was Iroquois Capital.
The other major institutional investor in Vringo was Hudson Bay. Hudson Bay was Innovate/Protect's largest shareholder, which merged with Vringo, bringing its patent portfolio with it. Because of this, I would consider Hudson Bay to be the original institutional investor in the Vringo v. Google lawsuit.
Both Hudson Bay and Iroquois Capital announced on February 13 and 14, respectively, that they had taken a stake in Spherix. Hudson Bay took 7.47% and Iroquois Capital took 6.8%.
I saw these filings, but I then looked at Spherix and determined that it was inconsequential as a business. It had a few things going on, like Vringo, but overall it was a "shell" for something to come later.
What I should have done right then is set an alarm for any future Spherix SEC filings. I didn't. Some other traders did and just earned themselves +73% in profits.
An Inconsequential Company Merging with IP … Just Like Vringo
Vringo investors reluctantly acknowledge that Vringo's business was mostly inconsequential relative to the enormity of Innovate/Protect's patent portfolio. Of course, both companies required one another for everything to work propertly, but we all know that Innovate/Protect is the real reason Vringo is not still languishing at $1 per share.
The formula was simple: start with an inconsequential company, institutional investors acquire large positions, merge a valuable intellectual property (IP) portfolio into the company, and announce a high-profile lawsuit. In identical fashion on Monday...
Nuta Technologies, Inc., a wholly-owned subsidiary of Spherix Incorporated, entered into a Letter of Intent with North South Holdings, Inc., the owner of various patents covering wireless communications. Pursuant to the LOI, at closing, Nuta would acquire 100% of the issued and outstanding capital stock of North South…
-Spherix 8K filing
There it is, clear as crystal. Iroquois Capital and Hudson Bay are moving IP into the Spherix, exactly like they did with Vringo. If you're not following, here is an outline of the series of events.
Vringo from $1.50 to $3 Spherix from $6 to $12
Hudson Bay invests in Innovate/Protect Hudson Bay invests in Spherix
Iroquois Capital invests in Vringo Iroquois Capital invests in Spherix
Vringo's unexciting business languishes Spherix's unexciting business languishes
trading volume is minuscule trading volume is minuscule
Innovate/Protect merger North South merger
share price doubles share price doubles
... and Greg Miller cries.
Well, I missed it, but next time, I will be setting email alerts for SEC filings. It only makes it worse for me knowing that the IP space has been heating back up recently, with ParkerVision (PRKR) receiving a favorable Markman ruling in its lawsuit against Qualcomm (QCOM), causing its stock to almost double.
So Spherix has been a small company with minor business operations. (Half its business - Spherix Consulting - was recently spun-off for an undisclosed amount to another company, which caused no stock price movement whatsoever. It must not have been that important.) Now it becomes an idyllic shell for merging in an IP portfolio. Next step: complete the merger and announce the high-profile lawsuit.
With the broad appeal of Vringo, the recent success of ParkerVision, the track record of Iroquois Capital and Hudson Bay, and lots of IP investors looking for the next real IP play, Spherix's rally this week is unsurprising. I should have known Iroquois Capital and Hudson Bay would have done something like this with Spherix. What still excites me is not knowing exactly what the IP portfolio entails - yet - but given the double in Spherix' stock price and the track record of these two funds, it must be huge. I will be watching this play out with great interest.
If you are referring to a particular person who is fairly influential on this board, and if that person is who I'm thinking it is, he has a history of flip-flopping. He fluctuates radically. If it's any consolation, the moment I read one of his posts this morning I thought, "He sold a bunch; now he's looking for a re-entry." These are the childish games I tire of; and it's manipulation: stealing from others by scaring them needlessly. Such acts, in my opinion, are cowardly and greedy, sure signs someone needs to learn respect for others and mature.
This is textbook accumulation. Who knows how long it will accumulate here, but if it accumulates for a couple days, that will only make it stronger on the next leg up. But a little more exposure may send it up again far sooner than that...
Precisely, so let's provide them some great due diligence, day after day after day after day after...
Hey Smitter,
I'm cheerful (and smiling). Just want to make sure this board stays substantive and helpful rather than emotional and useless. The former will greatly benefit WDDD; the latter will hamper it.
I'm all for excitement, and I'm excited, but the reason I'm excited is because of the facts I've studied not because of anything else. I think this stock has incredible potential which will be realized fairly soon.
Tink
For what it's worth, cheerleading and insider talk is a turn-off to stocks. If you expect big money to enter this stock, then you have to make board posts worthy of such. Long-term investors (the kind we want in this stock) are grown-ups with minds needing diligent information, not children with emotions to be manipulated through excitement. I entered this stock on the due diligence, but as of late it's been a rather large turn-off. I'm not a big investor, but I can tell you large investors will be turned off from investing in the same company as those who act, speak, and trade like impatient, unintelligent children. This is not directed at anyone in particular, but is a simple statement of fact. Big investors won't put their money in a company which has shareholders who know nothing more than MOMO and pumping. I hope we can do better on this board.
I'm actually very pleased that many are selling right now. For those who are unable to visualize the goal from here it is best they jump out now rather than later. The shares end up in stronger hands and off we go. This is good and right and necessary, and very typical of a stock going up. Those impatient will be scared into selling; some of them will buy back in later having regretted selling, and some will move on. Those with big picture in mind will remain. This is why guys like "Coolerheads" are invaluable to the stock...they provide information which firms up shareholder convictions. Cheerleading with dozens of exclamation marks only takes a stock like this so far; diligence and patience take it much farther.
Guys, this is why the "cheerleading" is damaging to a stock. If you take your eyes off the 2 second, 2 minute, 2 hour, and 2 day charts, you'll see a different chart: the 2 month and 4 month scenario. Keep your eyes fixed on that, for that is the ultimate driver of this stock. Shake-outs will come; incredible runs will come. But the terminus won't change a bit between now and June 27. Cheerleaders are as detrimental as doomsdayers. Somewhere in the middle is where we make progress. And the more shares that are "shaked" out of the hands of those trying to make a quick buck the better. This shake-out was awesome, in my opinion.
Hope some of us bought the dips; great support today!
If I was "short" in this stock, and I just witnessed what happened (throwing 600,000 shares at the bid and it only dropped the price 2 cents), I'd be extremely nervous. This is unbelievable accumulation and consolidation which will make the next leg up even more dramatic a spike.
620,000 traded in 15 minutes. Here is a bear raid; look how she's doing! Incredible so far!
Nice churning so far in the low 40's; great to see. Profit takers getting out; ready for next leg up soon. For those wondering how the stock will hold up under the pressure of profit-takers, notice that already 500,000 shares have been traded, many of them sold, and yet buyers keep coming. Many want into this thing. One month ago 500,000 on the ask would have killed the stock; now people just buy it up and blow through it!
Rain,
It's only offered as my own food for thought. Take it for what it's worth (probably not much): one investor's opinion. The ranges I offered are averages only. I think there will be peaks and valleys which go above and drop below the ranges I project.
Looking forward to that Seeking Alpha article, and the Activision releases are to be expected.
Tink