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Speculate on what could be good?
So you buy a stock based on your hope that the numbers are good, even though the company has already gone through two cycles with other products that ended with the stock crashing to $0.0001 and volume going to zero?
Louis J. Desy Jr.
I think he may be right
A few months ago, I would have only agreed with ACI dropping to $0.05 in a bankruptcy, but never would have expected oil to drop below $30, now I am not so sure.
Here in the Northeast, we are expecting it to be 50F Christmas day, which almost never happens, and have not had any snow yet. We have only had a few days where the temperature got below freezing, which is very unusual for this time of year.
On top of that, most of the oil producers are pumping as much oil as they can in an attempt to have revenue that they can use to pay their debt with and avoid going bankrupt.
There are a number of companies where they hedges for their oil production are ending, meaning they are going to suffer another drop in revenue.
On top of that, Saudi Arabia, Iran and Russia are all pumping as much oil as possible to drive the price down and hurt their opponents. (Saudi Arabia vs Russian and Iran)
Normally a lot of production would have come off line by now, but with everyone trying to avoid going bankrupt, everyone is pumping as much as possible.
There are also some reports of oil tankers turning around in the mid Atlantic. The reason appears to be is that there is no where at the original end port to store the oil plus the storage for natural gas is almost full because it is not being drawn down due to the unseasonably warm weather.
Louis J. Desy Jr.
Assets could be significant? No they are not
How could the assets be signifigant?
The SirenGPS was written off as worthless and sales were zero.
The only assets they ever showed was $515 in cash in one of the 10Q reports, and that was total assets.
Louis J. Desy Jr.
You act like the 8K provides that information
In order to be able to make the statement 'no debt', one would need to see the 10Q reports, which have not been filed; but you already know all of this.
Stating that the 8K report shows this is being disingenuous to retail investors who do not understand this.
Louis J. Desy Jr.
8K is what you go by? That is not correct
The 8K only reports on give details on specific events. They do NOT give a full report on all of the assets and liabilities of the corporation or what the company incurred for expenses in the time periods. Until 10Q reports are filed for the quarters ending June 30, 2015 and September 30, 2015; it is impossible to know what kind of payables the company is carrying on its books and still owes.
While there MAY not be any more convertible debt, there could be all kinds of accrued expenses that the company still owes. Even without any convertible debt, the preferred B converts into billions of 'decorative' common shares.
Until the 10Q reports are filed, there is no way to tell.
Since the company seems to always tout positive news as soon as it happens, I expect that the fact that the company is months overdue on filing 10Q reports means that it is 'not good'.
Louis J. Desy Jr.
Court date will be pushed back or cancelled?
What exactly do you believe that will happen to change the court date?
There has been nothing filed so far that shows that and the deadline for any plan or sales has past.
Louis J. Desy Jr.
No 10Q filings, no business license
People are going to be fighting for the chance to get some of this when they can't even tell what the company has been doing for the past several months.
Louis J. Desy Jr.
watch the train
I think the train is back sliding.
Louis J. Desy Jr.
Wrote something positive for HDSI? No, it was negative
https://www.hotstocked.com/article/91921/hds-international-corp-otcmkts-hdsi-flies-away.html
I think you missed a few important quotes from the article:
but unfortunately, there's not much to suggest that HDSI deserves the attention. In fact, mere minutes after you start your research, you'll see that two very important things are missing – a functioning website and up-to-date financial information. The company's internet presence has been all but non-existent for quite a while and the management team seem to be showing no interest in solving the issue.
Then, they failed to meet the new deadline and the statement is still missing which means that the company profile is now adorned with a yield sign.
Even without the increased authorized count, the share structure, with the 1.8 billion shares issued and outstanding, is still pretty poor in light of the appalling financial results.
HDSI's previous business will be abandoned and thanks to a new name, ticker symbol, and management team, it will be turned into a completely different company. Apparently, investors reckon that this is the way forward, but is it really?
The long-suffering shareholders should find out in a few months' time. We won't be holding our breath, though.
Not really the mesmerizing results some people are expecting, you have to agree.
Good volume for a reason?
Yes, but the problem is what is the reason?
There have been no official press releases or SEC filings. Unfortunately, that means the most probable reason for the run up in volume and price may be due to something that is not related to the business or the financials of the company.
That is the problem.
Why else would an almost dead company come 'roaring back to life' with nothing to explain it.
Louis J. Desy Jr.
Back to $0.0002? I expect $0.0001
I am waiting for the 8K detailing how many shares got converted.
I find it amazing that all of a sudden, with no press or filings released, that the price and volume zooms from near nothing to tens of millions of shares.
My explanations:
1: Someone is 'painting the tape', and as soon as the price gets to where they want it, they will unload it into the frenzy.
2: Some kind of paid promotional was put out to a group of muppets, and teh price and volume is due to the muppets rushing in without looking at anything. The best I can say is that at least there will be enough time for it to crash prior to year end so they can sell and take the loss in 2015.
Louis J. Desy Jr.
So how can you make money?
Is this stock only trades a few thousand a day, how can you make any real money?
It also implies that if someone held $10K or $20K worth of the shares, they would not be able to sell without cratering the stock price.
Louis J. Desy Jr.
What is there to discuss?
I assume that they are doing a PR that is causing volume and price to rise, but so what?
15 million shares at $0.0002 is only $3K trading; how is that signifigant to anything?
Most stock trade that amount in one trade, HDSI takes most of the day to get up to that.
How can anyone make an amount of money when the stock hardly trades?
Louis J. Desy Jr.
Daily range
At the moment, Investors hub is showing the range as $0.0001 - $0.0001 with less than 27,000 shares traded.
Louis J. Desy Jr.
Thinned out?
This has only had trades at $0.0001 and less then 27,000 shares so far. It has not even had $3 worth of stock trade.
How is this ever going to go anywhere when it has trouble getting $100 in trades to cross the tape?
It looks like people do not even care to bother with painting the tape on HDSI.
I am starting to think the whole deal may get called off and rescinded, in the same way that SirenGPS did.
Louis J. Desy Jr.
Nevada paper filing for Amendment, one day
https://nvsos.gov/
According to the State of Nevada web site, a paper filing submitted on 12/11/2015 would have taken one day to show in the system. (lower right hand corner).
On online filing can be expedited to be effective the same day for a few hundred dollars.
Louis J. Desy Jr.
Changing the business name and stock symbol
All of that is based upon the original corporate charter for HDSI.
As of this date, they have not:
1: Changed the officers of the corp, Paul is still in charge.
2: Increased the authorized preferred shares so they can't issue the shares to complete the deal.
3: Kept the registration current.
HDSI is the original or old corporation. That information needs to be correct and updated.
Louis J. Desy Jr.
HDSI business license is in default
See the attached image of the summary registration page from the Nevada State secretary office. It shows that their current corporate status is default. The renewal date was November 30, 2015 for the corporate charter.
Louis J. Desy Jr.
P.S. This also still shows Paul as the corporate officers.
Why CNN would post this?
http://money.cnn.com/quote/forecast/forecast.html?symb=ZQKSQ
That is over a year old, plus many of the summary comments are 'auto generated', meaning that a person has not looked at them to see if the posting makes sense, especially in light of the bankruptcy filing.
You will note that under the analyst section, there are none listed.
Louis J. Desy Jr.
Wednesday, Feb 10, 2016 it will end
The confirmation hearing is scheduled for Jan 25, 2016. The time for filing an appeal will end Feb 10, 2016; at which time the court will enter the effective date for the plan.
The instant that happens, the stock will stop trading, will be dead, and worthless.
Louis J. Desy Jr.
Tax question, not until there is an event to close the trade
If you hold onto the warrants, which was what the old common was converted into, you can not claim the loss until there is an 'event' to complete the trade.
In order to be able to claim the loss, you would need to sell the warrants and then that would close the trade and give you an event to claim the loss against. In cases where the security does not trade any more, like these warrants, you can usually ask your broker to take them from you, and then that will give you an event so you can claim the loss. (The warrants will then be owned by the brokerage firm and someday, maybe, they can sell them to someone or wait for them to expire years from now.)
If you hold onto the warrants, then you will not be able to claim the loss on the trade until the warrants expire.
Louis J. Desy Jr.
Common shares are dead
I just found out that AXIH filed Chapter 11 several days ago.
I looked up the September 2015 10Q. Stockholder's equity was negative $31 million and the company appears to lose one million per quarter.
The news stories about the filings mention that the unsecured is expected to get zero, meaning the existing common shares will be wiped out since they are lower in priority than the unsecured liabilities.
http://www.wsj.com/articles/axion-international-files-for-bankruptcy-to-sell-assets-1449099105?mod=yahoo_hs
Axion International Files for Bankruptcy to Sell Assets
The company said it doesn’t believe there will be funds left over for unsecured creditors after secured and other higher-ranking claims are repaid.
Based on what evidence?
I base my evidence on the same thing that most of the others here seem to base their evidence on, its all on 'how I feel', I can feel it!!!!!!!
FEELINGS >> FACTS >> LOGIC
Louis J. Desy Jr.
P.S. I feel that anyone who holds a different opinion is wrong but will change their opinion when their 'feelings' change.
Everyone is not in decline or imploded? Really?
Really, lets take a look at the commodities sector:
1: American Eagle Energy. Did a bond offering Fall 2014 for $175 million, missed its first interest payment Spring 2015 and then filed bankruptcy. Common shares are wiped out and the bonds look like they will recover about $70 million out of $175 million.
2: Quicksilver Resources - Filed bankruptcy and common shares wiped out plus most of the unsecured debt is lost.
http://news.investors.com/120915-784458-freeport-joins-anglo-american-in-halting-dividend.htm?ven=yahoocp&src=aurlled&ven=yahoo
3: Freeport-McMoRan (FCX) just eliminated its dividend and is cutting capital spending by $200 million.
4: Anglo American said it would suspend its dividend, reduce its workforce from 135,000 to less than 50,000 and cut its assets by nearly 60% on "radical restructuring."
http://blogs.barrons.com/incomeinvesting/2015/12/09/after-kinder-which-mlps-might-cut-their-dividend-next/?mod=yahoobarrons&ru=yahoo
5: KMI cut its dividend 75% and a number of other MLPs are expected to cut their dividends.
6: Newport mining is at $19.45 and off over 25% from its 52 week high of $27.
http://www.fool.com/investing/general/2015/12/09/why-anglogold-ashanti-limiteds-stock-fell-25-last.aspx?source=eogyholnk0000001&utm_source=yahoo&utm_medium=feed&utm_campaign=article
7:
AngloGold Ashanti Limited's (NYSE:AU) stock fell a hair over 25% in November. It's down around 50% from its high for the year reached in February.
The EC member had already lost his 500,000 shares.
Why would he allow a conspiracy to go forward?
He had access to all kinds of information and even fought so long that he got the percentages raised.
If there was value, he had more than enough time to find a potential buyer.
Numerous filings states that over 25 potential buyers looked at the properties over a period of more than two years, plus I am sure that they were constantly trying to raise funds for the mining project, which no one funded.
He had two lawyers working on it (the first one quit or was fired), and none of them found this conspiracy.
Louis J. Desy Jr.
DIP financing usually gets back cash
Yes, the DIP financing usually does get its cash back as part of the reorganization. Their main objective is to be doing a 'bridge loan' to cover shortfalls in cash between the initial filing and the reorganization.
They want to be repaid as the company exists the bankruptcy and that is how they make their money, they do not want to be hold debt or shares in the reformed company.
The fact that the DIP could not get repaid in cash shows how bad things are for the company.
Louis J. Desy Jr.
I smell news? Perp walks!
You think the perp walks with CNBC rolling is going to start?
Louis J. Desy Jr.
P.S. Keep the nail guns locked up!
To perpetuate the fraudulent activity of fat cats?
There have been SEVERAL chances to collect facts and present evidence that happened, but most of you seem to come to conclusions first and then select facts afterwards to conform to how you view reality.
1: The EC had one shareholder who held 500,000 shares. It was through his efforts that the warrant percentage got raised from 10% to 17%, which I consider a miracle since under bankruptcy priority the common shares could have been completely wiped out. In order to believe that there was a conspiracy, you would need to believe that person sacrificed his 500,000 shares in order to allow the theft to happen. Someone should call him up and accuse him of being 'on the take' and see what he thinks of such an absurd charge.
2: Most other resource companies, across a vast range of industries, all have suffered large losses or gone bankruptcy within the past year; but somehow some people here are pushing that Allied Nevada Gold has been 'stolen', even though a number of other companies have all had declines or out and out bankruptcy of the firm. Somehow we are to believe that hedge funds engineered the destruction of a perfectly good company, while everyone else was in decline or imploded.
3: The expert report that Tuttle spent considerable time on was finally released on one of the court filings, and it showed the target price of $0.05/share from back in December 2014. After that came out everyone stopped talking about how the expert report was going to show the company had all kinds of value.
4: The constant harping on about the mine project. People keep going on and on about how there is 'all kinds of valuable gold in the mine' and ignore the 'little problem' that they just need to raise hundreds of millions to finance the project. I am sure that a company that has just run itself completely into the ground would have 'no problem' raising hundreds of millions of dollars after they had trouble raising $20 million in December 2014 in an effort to not run out of cash.
5: The unsecured creditors have lost over 80% of their claims. In order to believe that the company was stolen, the unsecured creditors would have also 'all been in on it' and are instead the new shareholders, with company stock that they can not turn into cash that easy since there is no public market for the stock. Of course, with the operating reports showing the company losing money every month and no more ore being mined, no one may want to buy shares in a mining company that will probably run out of ore to process in 2016, at which point the revenue of the company will drop to zero. Some people 'might not think' that is a good investing opportunity.
6: Things are so bad that shareholders who held on into the conversion may even have trouble recognizing their losses for tax purposes. With no public market for the new warrants, anyone who wants to take the loss in tax year 2015 will have a problem, since unless they somehow arrange a private sale or give them to their brokerage firm, there is no event to allow a person to recognize the tax loss for tax year 2015. As bad as things went, if someone had sold just prior to the effective date, they could at least take the loss on their taxes, but if they held the old shares and got converted into warrants, they still can't claim the loss.
7: The secured debt got stuck with debt in NewCo. Even the DIP financing was not able to get its cash out of the company after the plan was put into effect. Instead, they got stuck with NewCo debt; which I am sure they are thrilled to have since the company appears to still be losing money, and can't mine ore. When the ore runs out in 2016, they will be especially pleased that the DIP financing will take large losses, in spite of the fact that they had a super priority position within the bankruptcy framework.
Louis J. Desy Jr.
An open forum is an open forum
This is not a place for you to push your ill informed and ignorant opinions on how some vast conspiracy stole the company on everyone.
Others came here looking for an informed and logical discussion on if the company was worth buying or not, and I gladly provided one. The only thing I asked for in return was an intellectual discussion with others that share an interest in economics and investments.
I presented my credentials several times, including the SGER and RNCH bankruptcies, where I demonstrated in an open forum that those shares were worth more than what the shares were trading at and anyone who followed my advice would have made a large profit.
Instead, you want to turn this place into some kind of 'echo chamber' where you can spread your ignorant opinions that would cause other to lose money and bully anyone who dares to disagree with you.
I would tell you and everyone else that shares your view of bullying any dissenting opinions in an open forum, to GFY, but there is no need for me to do that, since you all already did that to yourselves by loading up shares in a dead company; in spite of the facts and logical reasoning that was presenting to you. It takes a special kind of stupid to double down on a losing bet, even after you already know full well how it will end.
You will note that there is an ignore button that you can put me on, so you do not have to bother yourself any reason or logic in your investing decisions.
Louis J. Desy Jr.
Seriously? Yes, seriously.
I am well aware that many people in the modern era do not adhere to the old norms or protocols, but that is what an open forum is supposed to be.
Unfortunately, with the decline of the traditional norms, many people do not even know what the phrase 'open forum' means, what one is or how to properly conduct themselves in an open forum.
Louis J. Desy jr.
What is an open forum?
http://www.wisegeek.org/what-is-an-open-forum.htm:
The term “open forum” can refer to several things, depending on who is speaking and what the context is. All of these meanings, however, imply the open exchange of ideas and information, usually to better the common good. The word “forum” comes directly from the Latin. In Roman times, the forum was an open marketplace where people could make purchases, have discussions with other citizens, and try to reach agreement on matters of public interest. Some of these meanings have carried through to the modern day.
In a loose sense, this term can be used to describe any space in which people may exchange information and ideas. In the United States, for example, most government owned public property is an open forum. In that forum, citizens can protest, hold meetings, and exercise other first amendment rights. Some typical examples include sidewalks, parks, streets, publicly held buildings, and spaces set aside specifically for the purpose.
The term is also used to refer to a specific meeting or event. In this instance, an open forum is intended to be a venue in which people can gather to find out about a specific issue, reach a resolution on a controversial subject, or interact with members of their communities. Often, officials and representatives are present to answer questions from the public, facilitate the discussion, and provide information which people may find valuable or useful.
The idea of the open forum is very important to many democratic nations, since it allows citizens an opportunity to speak out about things which concern them. It also allows residents to have influence in their communities, by giving them a vote in major community decisions. Depending on the nation, a forum may offer citizens an opportunity to vote on proposed development, allocate community funds, or participate in their communities in other ways.
Although this type of forum is intended to be a space in which free speech is exercised, there are restraints. People are expected to behave politely, although they are welcome to disagree with each other. Violent words or actions are not condoned, and a forum must also be held at a reasonable hour. If citizens intend to exercise their public rights by marching or holding a demonstration, they must apply for permits, just as a group of individuals holding a forum in a municipal building must do. As a general rule, the open forum must be open to everyone, regardless as to race, gender, creed, or economic status.
Not dead yet!
According to the detailed quote here, 175 shares have traded.
If you looking to buy, I would recommend sitting on the $0.0001 and waiting.
Louis J. Desy Jr.
Who said its going to no bid?
I said it before the whole run down after SirenGPS, and it did happen.
It is inevitable that the price will crash to $0.0001. Previously, the stock was not able to hold anything above $$0.0001, and that was with with only about 2 billion of the decorative common shares. It is easy to know what will happen when there are billions of the decorative common shares issued.
The minute the company increases its authorized shares and starts the conversion of billions of common shares, the stock price will crash since there is no way the retail market can support the stock price with all that selling pressure.
If they limited the conversions to only a few billion common shares, the price might be able to hold, but I expect that the conversions will continue until trading stops. There is no rational reason for the super preferred to not stop converting the preferred into common until it is impossible to sell any more common into the retail market.
Louis J. Desy Jr.
HDSI decorative shares are said to be non-negotiable! Not Yet.
That is one element, but I would put it to you, that when the stock settles at $0.0001 and there is no bid, at that point the shares will be in effect non-negotiable. At that point the only way the retail investors will be able to take the loss on the stock will be to give back the stock.
In other situations where this has happened, the holder of the stock 'gave' the stock to their brokerage firm in order to be able to have tax taxable event.
Louis J. Desy Jr.
You are lucky trading, just be careful
You are fortunate, since without being one of the holder of the super preferred, you have no way of knowing when the shares are being converted.
You also run the risk that at any point the retail market will simply stop buying, leaving you holding shares that you can't get rid of.
Louis J. Desy Jr.
10Qs and quiet period
Definition of a SEC quiet period:
http://www.investinganswers.com/keywords/waiting/quiet-period-1765
The quiet period refers to the waiting period between a company filing a registration statement with the US Securities and Exchange Commission (SEC) and the time when the SEC declares the statement to be effective. This is also referred to as the "waiting period."
The last 10Q, is months old
There has been no 10Q report issued for 2015 Q2 and Q3, quarters ending June 30, 2015; and September 30, 2015.
As such, it is impossible to tell what has been going on with the company since March 31, 2015 without the SEC 10Q reports being filed.
Louis J. Desy Jr.
CMGO had lots of conversions in 2014
10K for Dec 31, 2014:
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=10749025-1058-176513&type=sect&TabIndex=2&dcn=0001213900-15-004327&nav=1&src=Yahoo
While not a complete list, CMGO had all kinds of conversions in 2014:
Notes and Loans
Iconic Holdings, LLC
The Company issued Iconic Holdings, LLC. a convertible promissory note of principal amount of $50,000 on November 21, 2014.
Typenex Co-Investment LLC
The Company issued Typenex Co-Investment LLC a convertible promissory note of the principle amount of $114,000 on October 1, 2014. The principle amount includes an Original Issued Discount in the amount of $10,000 and investor fees of $4,000. The outstanding balance at December 31, 2014 is $100,000.
KBM Investments LLC
The Company issued KBM Investments LLC a convertible promissory note in the principle amount of $115,000. The principle amount includes an Original Issued Discount in the amount of $11,000 and investor fees of $4,000. The outstanding balance at December 31, 2014 is $100,000.
KBM Worldwide, Inc.
The Company issued KBM Worldwide, Inc., a convertible promissory note of the principal amount of $40,000 on December 24, 2014.
Decorative Common Shares
The first use of the term that I ever saw was from a 1990s Barron's article about the Green Bay Packers doing a stock issue for additional common shares of its stock. The article was critical of that stock being issued because the terms was that the shares could not be sold except back to the team, would never pay a dividend, and if there was ever a liquidation of the team the proceeds would be donated to charity and the common would get nothing. In spite of all of that, the phone lines jammed with people wanting to buy some shares to frame of the wall, i.e. the common shares were literally only useful as a decoration or decorative.
The article used the term 'decorative' to describe the common shares because the shares had none of the rights that one normally expect common shares to have, and the only use was to hang the stock certificate on your wall, like a painting and decorate the wall; hence the term and descriptive of decorative.
HDSI common shares are the similar; in that the common shares are useless common shares and only good to decorate your wall with as like a painting. All of the control of the company is with the super preferred class. The common shares have no ability to do anything with the company. Even if someone bought all 2 billion currently authorized common shares, the super preferred can just issue itself more super preferred shares or increase the conversion rate, and dilute the common shares into nothing.
This is not a prediction, it is a fact.
There is absolutely no motivation or reason that the super preferred would ever share any of the profits from HDSI with the common share holders.
The current structure allow the super preferred to take everything for themselves and leave nothing for the common shares.
It is VERY clear with the structure that has been setup what is going to happen. Once the next Good Gaming tournament gets going, and some revenue starts coming; then the press releases will start; then the volume and stock price will start to rise with the retail market thinking that the are buying common shares that have some kind of real ownership rights in HDSI and Good Gaming but in reality have no control over the company. Then the conversions will start, until the price crashes and the volume drys up; just like it did weeks ago with millions of shares on the ask at $0.0001 and nothing on the bid.
A few of the more knowledgeable muppets will then read the filings and discover that they now hold useless decorative common shares.
Louis J. Desy Jr.
Louis J. Desy Jr.