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That's IF the merger is even real, or is actually approved by FINRA!! My bet is on JA/, Mandla, Brian Kistler, and Ibeto all making an enormous gain off the backs of retail penny players before they RS!
Why would a company put out a damaging preliminary proxy that they know will crush their current stock PPS!? Please don't tell me it's a ploy to get shorty!!!
My PPS prediction based on all info and TA is that it bottoms out at .08-.12
Rage against me as I'm sure there will be those that do (and I totally understand) but this is my assesment according to the current situation.
Time will tell the story..
Trust me... That's a lot better then my past frequency, and not to mention the info I now have! Yikes
I've seen some that RS and it turns out a positive, but I'm just not seeing the catalyst with HMNY. Time will unfold the truth for all to see.
RS's are generally done to attract new buyers of the stock and/or to fulfill the requirements of the exchange they are listed on. BUT, why would anyone buy at a higher PPS after the company has diluted its share base? It appears that they are unable to find a good private placement deal, therefore once the RS has been completed they will then sell some of their new share increase at a lower PPS than retail in order to make the deal attractive. Meaning, at this point they would have to sell an offering at like .20 in order to attract a buyer, but after the RS the share price will be in the dollars, and thus an institutional buyer will see it as a way to make a substantial profit by selling into retail. jMO
If that theory ends up being true, then I will definetly not be a buyer of a company that has to resort to those measures in order to survive rather than produce what they've said they would. JMO
I hate the fact that shorts now have a really big upper hand, but that "could" provide a good play after they've pushed it down to who knows where. I'm sure they are tickled pink with the news this afternoon.
Maybe, but I really don't like playing in rush hour highway traffic! You need a parachute and a quick draw to play this one ATM.
MSFT, APPL, AND NFLX don't need to tap into theirs as HMNY VERY likely will! Plus, are those other tickers proposing a RS?
Been watching this trade since its cliff dive from end of April.... Today was a nice EOD squeeze to the shorts, but sadly this is not good news today from HMNY!!! So many people have been throwing money at this since $2 and it STILL keeps diving down! Now an increase of the AS along with a RS!? I loaded my buy at .35 today but just couldn't press enter based on their being no real catalyst for upward momo....glad I passed on it even though I was kicking myself just 3 hrs ago.
Seeing a TA DCB reversal today made me curious.... https://investorshub.advfn.com/boards/read_msg.aspx?message_id=141586738
If you read the entire correspondence between Janice and I, you would clearly see that I stated many times that I think the NSS claims are mostly bogus and it's actually the Company that's diluting!
But no, this board seems to be full of peeps trying to prove their superior to others by spouting off snide comments/remarks when someone comes here to openly discuss a topic. It's as if you're wolves just waiting in the shadows to pounce on a newcomer in order to prove your pecking order.
Won't be posting here anymore as the welcome sign is clearly a dilllusion at best.
Happy Fathers Day!
Mick drop
I think we are close to being on the same page, but coming at the topic from different directions...
[As I said before, at that time, NITE handled 80% of all OTC trades. Yes, they did a lot of business in pennies. But somebody's gotta do it. I don't know how USB ranked. But it seems to me that while clearly Dilorio's been complaining about his losses for nearly 15 years, he hasn't learned very much. ]
The point was that since NITE was doing the majority of their buisness in Pennies that they may have figured out a way to rig the system in certain stocks. Dilorio has been complaining yes, but does that mean he has no validity to his theory while others are so adimant that they are 100% correct with their knowlegde? I mean NSS hasn't been an issue for this long because it's a complete farce!
[
And as I also said before, what he doesn't seem to have learned much about is toxic funding and the havoc it wreaks. ]
Not knowing or understanding toxic financing doesn't invalidate that NSS exists.
As to the part about reverse spits, it simply isn't true that if a company does one, shorts are off the hook. That isn't even what penny enthusiasts say. They believe that if the company does an r/s, shorts will be forced to cover. That's not true, either. What happens is simply that short positions split along with long positions.
I wasn't implying that they are completley off the hook. It just makes it that much easier to continue the NS game.
As for delivery and the loophole that Dilorio was proposing.... There seems to be a healthy amount of people that think it did and still does existt. I mean, people hack into computers NO ONE every thought possible...we've got people inventing things that were never thought possible...we've got scams that continue to be recreated into situations we never thought possible (Madoff).., https://en.m.wikipedia.org/wiki/Naked_short_selling
Again, I believe the NSS theory is mostly bogus and that the Companies themselves are the ones abusing the system, BUT that doesn't mean I have completley written of the possibility that NSS by MM's doesn't exist
I'm done with the convo for now..... Sadly it feels as though this board is the complete opposite of the other boards that are screaming "To-Da-Moon". Meaning there should be a bit more of a feeling of openness to these boards rather than spouting off responses as though the all knowing has spoken. Jmo
Messed up on the italics, but too tired to fix it... Lol
Ugh.... Will reply later when I have more time.
The shares would still show up in the traders account....but they would have been created by the MM's NS, not the Company. IF the stock all of a sudden started to skyrocket, the NS MM would have to deliver on all of those fake shares they sold to retail.
I think Dilorio was trying to say throughout the article that USB. and Kight Capital were targeting specific Penny stocks that were continually issuing massive amounts of shares, and then doing RS's on a regular basis to which "they" knew they would basically never have to cover using the loophole. Basically trading under the cover of the Company being the "dilution machine" rather than people realizing that the MM was actually the one crushing the stock....Thus making huge amounts of money over and over with the same tickers.
As for the Obligation Warehouse not being in existence until 2010... That wasn't Dillorios point, he was trying to point out that Knights primary source of income was from trading in Penny and sub penny stocks (VOLUME)! But, what if Knight (and other MM's) realized they could also make money by NSS the stock, which would in reality increase the amount of shares in play....round and round it goes. When NSS occurs it actually increases the share structure, but normally those trades are delivered within the 24 hr period. But, what if you found a way that circumvented the need to deliver and just kept on NSS the stock into the ground.. Basically diluting the stock the same as the company does by issuing new shares to the market. Once the Companies stock was practically worthless, they'd have no choice but to do a RS. Meaning, here we go again for the second, third, fourth round...make sense?
That was my point when I was saying that the MMs have deep pockets and that retail will never be able to overcome the MM's that "MAY" actually be involved in NSS.
For me, I believe it's primarily the Companies that are diluting their own stock in order to line their own pockets, BUT... What if Dilorio and the many others around claiming that the NSS are in fact true, and that the MM's are really behind it on some of these Penny Plays!?
I changed my handle because I realized that patience does actually pay sometimes in Penny Land, but you have to be willing to let your money "sit" just like a CD. I lost a fortune on EQBM that I will be claiming a loss on until I'm 90! Guess who the person was that informed the SEC about EQBM!!?? ME! Shot myself in the foot thinking they would just scare Le Hat rather than halt the trading... ??
This is the part that I'm talking about, and IF it actually exists. If it did, then the MMs would basically win every time using the loophole. https://theintercept.com/2016/09/24/naked-shorts-cant-stay-naked-forever/
Forgot to mention that I posted the Intercept link on CYPE about a week ago. And then bam, MAXD used it as part of their NSS PR. Makes me wonder...
Btw... I don't believe we have communicated since the EQBM days back in 06'/07' before Operation Spamalot (such a stupid name) came out and suspended trading in I think 50+ Companies. Wow, time has flown for sure!
My Ihub handle was Patiencepays0
Maybe I'm understanding this article incorrectly....... https://theintercept.com/2016/09/22/the-money-is-gone/
It's a long read, but I'm sure you've already read it.
Thank you...that was my point about all the endless claims of NSS! It's like find a new cry already.
Thank you for the reply, but that's only 2 out of a TON of Pinky Plays over the years. I believe NSS happens, but if retail thinks they have the ability to push the large MM firms out of their position they have lost their minds! These firms have deep pockets and can hide until they feel it's the appropriate time to cover....and that's IF they cover at all rather than to just wait for it to be delisted and removed.
Question... Are there any Pinky stocks that have claimed NSS and it turned out to be true? And if so, did the stock run up as the traders were claiming it would?
I'm moving on....GLTA!!!! Please don't try to antagonize me to return...not good for you! Later
That seems to add validity to the claims of MMs abusing the trading of Penny Stocks...
Yep...read the sec filings today and thought they would be of interest. Funny thing is, is that I wonder if they will just short in down rather than pump and dump...
Did you get the info?
Want to send you something of interest when your around....
You may find this of interest since it looks as though their getting ready.... SEGN
Thank you for the thourough reply. It appears from your DD that it is possible that Johanne could be dumping IF he and JA have/had some type of deal between each other. I mean if I were JA and didn't want any type of blowback from a big % holder in the shell that I'm attempting to acquire, I would strike a deal. Obviously it's speculation on everyone's part here as to what the real deal is.
It seems we have 2 sides to CYPE....
Those that are speculating that CYPE is being heavily shorted and thus the significant PPS drop.
AND
Those that are speculating that this is a scam Pump and Dump.
Funny thing is that when the truth comes to light, one side will be wrong and one side will be right....or is it really that black and white!?
All I know is to look back in order to anticipate the future, and these Pinky Players all have a bad history that you've provided a clear picture of.
What do you think would happen if someone were to contact Johanne Peterson and try to find out what's going on with CYPE?
So, if JA IS the ONE dumping, and the shell is now going to be in IBETOs hands....that makes complete sense as to why the stock has dropped like a rock from a high of .60 to .08 in a matter of around 12-13 trading days!
I think what's coming once JA is out is going to be the death nail RS that almost always happens with these plays.
I really need to get my head around EXACTLY how these RM shells work more than what I already know about them!
Well, then I shouldn't have second guessed myself about it being JA dumping...but that was because of the whole discussion of JA having no shares and just cleans them up and sells them!!!
I need to brush up on my file reading abilities a bit.
Just a theory that I was going off of.... what if Johanne does know about all of this and was given time to dump his shares in exchange for him not causing any commotion with JA's plan?
Oh man! So if Johanne isn't aware of this, and therefore not the one I assumed was dumping, then your assumption of JA getting shares for debt paid is even worse than I could have imagined!
Johanne was the CFO, Director, and treasurer of the company and showed (I believe it's a man from the UK) he held 26 million shares as of 3/15/18 within their filings.