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ILVMNY, have you ever been through a R/S? I have. It's not what you think. Remember last week when QMNM gapped way down before the open? Well... that's what almost always happens after a R/S. As a rule of thumb I use, expect a 30% haircut before the opening bell. For example, let's say a stock is at .01 and does a 100:1 R/S. Well, you'd expect the price to open at $1. Right? The reality of it is that the stock will probably open around .70 and head down immediately from there in the panic. Then, and only then, if things do start to shine through does the stock finally start to head up. But, if the R/S does nothing more than a shift in the numbers, the stock continues to sag. Then, those that got shares through some notes and/or prior purchases, are left holding the proverbial bag.
In the case of QMNM, a R/S combined with good profit producing revenues could very well allow this puppy to be one of those stocks that shines through and turns up after a R/S. If the cards are played right, this could go to $2-$5 if it is adjusted to $1. That would mean you'd see the equivalent to .015 at today's adjusted prices. Personally, I'd rather get in at .50 and ride it to $2.50 for a 5 times return or adjusted to .04 to today's price.
Then, all Eugene has to say is that the R/S was ncessary and that everyone made out in the end. Technically, he would have a case to say that. But those that are averaging down here and are still in the 1-2 penny range or higher run the risk of still being bag holders. In the meantime, Eugene is free and clear of prior commitments and can watch his 250M protected shares turn him into a filthy rich sob.
Plus, considering the fact that he hasn't filed any corporate taxes, I wouldn't put it past him to perform this.
LOL! IT'S MY MONEY AND I WANT IT NOW!
Right-o, chuckie baby!
BPB, Did you know that Quest has not filed its corporate income tax returns since 2002? Now that is just down right un-american in my books and a slap in the face of all of the shareholders. How does that work in the BQ courts?
There were 2 R/S last year.
1 for 4 reverse stock split effectuated on August 17, 2007
1 for 10 reverse stock split effectuated on December 14, 2007
History does repeat itself again and again.
Going back 3 years, a $100 high adjusted puts this around $2.50, which QMNM can easily obtain IF Eugene gets his house in order. And from I see, that is going to require another R/S.
Let's get real. If all these shares that have been and will continue to come into play push the A/S to 15B, will QMNM ever see 1-2 pennies again? Also, no one will like this, but a real concern and has every chance of occurring is having a R/S as a means to eliminate a great deal of the debt and putting the burden on the current stock holders. It just might be one of those necessary evils that is in the cards.
Think about it from Eugene's point of view. If all you had to do was to let all these shares come out and destroy the PPS, then turn around and file the R/S papers, then literally overnight, the debt owed is reduced by 30%. Just the swipe of a pen and the cost of a stamp, $8M in debt disappears. Then, the weight of the A/S is gone and the price can easily move. Plus, the profits would look favorable and help move the PPS in the double digit dollars.
I know no one wants to hear about this as it would make a lot of people angry and bitter if this occurs. But don't get mad at me as I'm not in control here. All I ask you all to do is to seriously consider this and don't come crying to iHUB if this does occur. Personally, I'm going to wait it out an see what Eugene does. If you're a current shareholder and this does not happen and you make out, then I'll be very happy for you.
Thanks, chuck. Keep up the good work. I'm convinced something very big is coming. Just watching the trades for the past month tells the story. In particular, at the level we're at, when ever the ask dipped to .0006 some major league buying always showed up to pop it back up to .0007 Tells me that someone wants all they can get at .0006 and is willing to continue doing so for as long as it takes. Otherwise, we would have drifted further and further down. Look at the chart. It doesn't lie.
http://www.nasdaq.com/aspx/ChartingBasics.aspx?intraday=off&timeframe=1m&charttype=candlestick&splits=off&earnings=off&movingaverage=20day&lowerstudy=rsi&comparison=off&index=&drilldown=off&symbol=RDWG&selected=RDWG>
"During the quarter ended June 30, 2008, Quest issued an aggregate of 415,428,789 shares of common stock upon conversion of 208,526 shares of its series A preferred stock."
Since these are Eugene's shares, that disputes the thought that he was only dumping a few shares to live on. Let's see... 1/2B shares at .02/sh = $10M. All that in 3 months?
Yo, Eugene.... what are you living on? Caviar and Dom Pierion?
Now ask yourself this.... why is it that statement is in that report? Was it necessary? Is it for future protection against something say.... a r/s? AND, doesn't that also mean the A/S will NEVER get reduced down to a reasonable level no mattter how many nor how large a r/s is. Amazing!
That's how I understand it. If I didn't know any better, it seems to me that Quest has plans to cash out on their stock for a specific dollar amount. And if the PPS doesn't meet up with these expectations, then they'll just make up for it by starting the printing presses. And, if that's not enough, when it is all is said and done, the r/s will make up for it and make it all go away by walking away from the bag holders.
But then, what do I know?
BPB... no doubt coal is hot. If Quest can turn their act around, then this will be a gravy train. Until then, it's a real crap shoot at best.
How about forking over that $500 to me and you can continue to read these posts for n/c. lol
Better yet, send Pedro the $500.
Just keep in this in mind when you watch the trading activity come Sept 5.
"Accordingly, we believe it is important to have sufficient stock to honor conversions."
Right now, that's 3:1. As these get dumped, this number will climb to the point where the anchor will keep the price on the bottom. A r/s is almost inevitable at that point, not to mention that it will wipe out a tremendous amount of the BK.
Big Paul, You're missing the point. Wise up to what is going on. I did and I hope you do, too. You don't have to listen to me or pick on the posts people have done in the past. Just look at the hard cold facts and make your own decision. That's what I did and I'm glad I did. You can also check back and find a post I made where I said that I bailed and why I did. In addition, I said that maybe I'll be proven stupid but so far, I'd have to say, based on the fact that the stock has dropped another 50% since .014 (where I saw support), I'm thinking I made the right decision. In your case, I hope the stock rocket's and you can stick it to me. All I'm saying here is just be very careful and wise.
This information wasn't available at that time. It's when this came out when all the red flags went up. And looking this over for a few days and taking into consideration that I have been in a stock before that did a r/s, that's why I bailed. A r/s is NOT a r/s, like it or not. A r/s has an initial return of around 70% from my experience and then quickly goes down from there during the massive panic sell of. If the company is on the ball, the r/s does turn around things shortly there after but it's rare. In the case of Quest, I think this just very well could be one of those exceptions. Therefore, like Pedro and aharfo, I'll wait until then and see what's up.
Put yourself in Eugene's shoes. If you had an opportunity to dump billions of shares, stash that cash with the profits, then issue a r/s that immediately wipes out 30% of the debt on the backs of the current shareholders, only then to use the cash proceeds to complete the turn around from the BK, what would you be left with? This would leave Eugene with no debt and 10M shares of his own only to watch the stock price climb over $1+. If you ask me, this is Eugene's swan song and if it works out in his favor, he'll be a very rich man.
It's "family". Check out this from the report:
"We anticipate that the increase in our authorized common stock will become effective on or after September 5, 2008."
"Stockholders have no appraisal or dissenter’s rights with respect to any of the actions described in this information statement"
"As such, if the price of our common stock decreases, we will require even more shares available to satisfy conversions"
"However, it should be noted that management and its family members currently control approximately 81% of the outstanding common stock on a fully diluted basis and consider a hostile takeover attempt very unlikely."
**** So, let's see.... this is all based on the stock price on July 25, 2008 which was .02 Using this as our numerator, .02/.007 shows that the conversion rate is around 3 Does that mean on Sept 5 another 15 Billion shares will be available to be dumped? OMG ***
And if you find a penny..... jackpot.... 4 more shares!
STEP BY STEP
There are a few things that stick out in that report I read last month.
1) Accordingly, there are 4,483,816,663 votes outstanding voting together as a single class. Shareholders of record at the close of business on July 25, 2008, will be entitled to receive this notice and information statement.
2) On July 25, 2008, Eugene Chiaramonte, Jr., the holder of all of our series C preferred stock, who holds voting power consisting of 3,639,300,796 votes, or approximately 81% of the outstanding votes, delivered a written consent to us adopting the proposal set forth herein.
3) The number of shares and the percentage beneficially owned by each individual listed above include shares that are subject to options held by that individual that are immediately exercisable or exercisable within 60 days from July 25, 2008, and the number of shares and the percentage beneficially owned by all officers and directors as a group includes shares subject to options held by all officers and directors as a group that are immediately exercisable or exercisable within 60 days from July 25, 2008.
4) We intend to file, as soon as practicable on or after the twentieth (20th) day after this information statement is sent to our shareholders, an amendment to our certificate of incorporation effectuating the increase of our authorized common stock with the Secretary of State of Utah. This amendment to our certificate of incorporation will become effective at the close of business on the date the amendment to the certificate of incorporation is accepted for filing by the Secretary of State of Utah. It is presently contemplated that such filing will be made in the first week of September 2008.
** Looks like the "family" is authorized to dump and dump and dump..... 4.5B is one massive size number. It really seems very hard to imagine over coming that. Even those other energy companies that were just posted have around 100M down to around 20M shares. Get this A/S down to those numbers and yes, Quest looks like it could be the stock of a life time. Imagine this stock with 25M A/S sitting at .05 after having used a great portion of a R/S to pay off a big chunk of the BK and the currently running revenue going forward then showing a quick turn around profit making company. **
The last 50 minutes were super. Around 9m buys to 2m sells. She closed the strongest I've seen in weeks. That's about 10% of the float picked up in less than an hour. I think this baby will gap nicely come Monday morning and... she's gunna run from there. Looks like the smart money is in for a very big green week.
ynuk ynuk ynuk... Moe, Larry, cheese...... Niagara Falls....
Walk a check down there next time. Scottrade will have the money available to trade by noon the very next day.
Sure he didn't ask you to pull his finger or pick his nose?
Every penny you see on the sidewalk this weekend, pick it up and buy 4 shares on Monday.
Here's a thought... I imagine it takes a long time to account for all of the billions of dollars.
Maybe that kick ass 10Q comes out over the weekend and we gap to .01 at the open on Monday and run to .10
Super strong finish. Looks like that 10Q is going to be kick ass.
Probably will be adjusted later.
That's the most excitement we've had in more than two weeks.
Looks like another haircut is in the making.
If you read it backwards, it just might say.... Turn me on, dead man.... or maybe it'll say... I buried Paul.
Come on, Jimbo. Take a chill pill or some blood pressure medicine.
Not to rain on your parade but the trades today were 22.4m sells to 16.6m buys.
Universal Property Development and Acquisition Corporation (UPDV) purchased 52% of HTOG's capital stock in April 2007. UPDV increased its ownership interest to 87% the following September.
A lot of really negative stuff in that report. YIKES!
Read this and let's chat some more: http://www.stockhouse.com/Columnists/2008/August/18/Sabina-s-world-class-deposit-reduced-to-a-ghetto--
Today's volume was: 4,197,085 buys to 2,897,077 sells. Looks a lot like mm manipulation cuz we finished down.
And a can of WD40. lol
Same here. That's when I bailed my position.
That is correct. I see no support once she broke down the .0135 barrier.
I doesn't appear to have any support until .0007 Even at that point, a r/s would translate to around .0005 when it re-opens at .15 on a 300:1 An initial sell off might take it to .10 before it runs to $$$ and the BK is cleared up. And if I were Eugene, I'd be looking for a buy-out and a retirement island.
I totally disagree with you, Jim0325. Soon is going to be the perfect time for a R/S. This will eliminate a big portion of the debt, all to be picked up by the current share holders. Then, current generating revenue will allow Eugene to pull Quest out of BK. In turn, the company would then look attractive for a major buy out for $$$/share. Eugene will justify this by telling the current shareholders that they made their original investment back plus maybe a few pennies. But, the big winners are those that that will jump in right after the initial drop after the R/S.
You don't have to belive me. All I ask is for everyone to think this through. I have and this is the conclusion I've drawn and it makes perfectly good sense (at least to me it does).
My boat is loaded. Posted a ton of DD already. Just sitting back and letting this mature. Not much else to do but get all excited when we start to leave the station.