Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Dilution can come at any time
The super preferred can increase the authorized shares at any time by filing the increase with the State of Nevada. The instant that is done, then they convert any amount they want, all the way up to 17 billion shares.
The other option is that the insiders vote any profits as salaries for themselves, if my some incredible chance Good Gaming ever makes any money.
I call the existing 2 billion common shares 'decorative' for a reason, those shares have no control or say over the company, the super preferred control the company.
With the super preferred issued and outstanding, the existing common shares have no use no except as a mechanism for the insiders to cash in by unloading worthless and useless common shares onto the retail market.
The insiders could convert and issue 7 billion additional common shares to the retail market, and still have total control of the company, since the super preferred would have 10 billion votes, and then the common shares would only have 9 billion votes.
I do expect that HDSI will make a run, and into that run there will be the conversion of billions of common shares that will be dumped onto the retail market.
Louis J. Desy Jr.
Create shareholder value?
They issued 1.4 billion decorative common shares and have nothing to show for it.
Now they are diluting the existing 2 billion decorative common shares and issued a super preferred shares, that can convert into another 17 billion shares at any time they choose.
In effect, they just diluted the existing 2 billion common shares by over 80%.
Even worse, when they start converting the super preferred, the stock still probably crash to $0.0001 and stop trading; just like it did with SirenGPS earlier this year.
Louis J. Desy Jr.
The $75K was for SirenGPS
That was the money raised for SirenGPS. The funding promised was $600K, but they only raise $75,000 of which about $55,000 was spent on expenses, leaving only $12,500 for operations.
Since there are no filings for the Q2 and Q3, we can't tell if any of that money is left, or what unpaid expenses have been accrued.
Louis J. Desy Jr.
Good Gaming Revenue
As far as I can tell, it looks like Good Gaming has not generated any revenue since Dec 2014.
Louis J. Desy Jr.
CMGO agree to committing $300,000 to HDSI? Nope!
http://ih.advfn.com/p.php?pid=nmona&article=69303571
Quote from the filing about the $300,000:
This commitment may be waived by CMG in its sole discretion.
CMG is obligated to obtain a commitment for $300,000.
Are we still connected to Siren Gps? NOPE!
They decided to give it back to Paul and declared that they undid the deal. SirenGPS product was declared as being worthless.
BUT they issued 1.4 billion shares to the retail market and never got dollar one of revenue.
Louis J. Desy Jr.
Forget about the transaction, stock has fallen and can't get up!
Well, it looks like the stock finally found a support level, its at $0.0001!
Unless they do a PR, the next step will be the shares stop trading.
Now we can it on the bid at $0.0001 and get all we want as the muppets sell before this stops trading again!
Louis J. Desy Jr.
But their agreements NEVER are final!
We have seen, that at any point, even weeks or months later, they can declare the agreements 'undone' and that it it.
The only thing that gets stayed done are when outsiders buy the decorative common shares that. That ALWAYS get stayed as done!
They'll NEVER undo those transactions.
Louis J. Desy Jr.
They are for both, control and dumping
They can convert preferred into seven billion common shares, makes all kinds of money on the conversions, and still have control of the company.
They can also make a super, super class C preferred that specifies it has 51% of the total voting rights, issue themselves those shares, then convert and dump the class A and class B into 17+ billion common shares into the retail market.
Louis J. Desy Jr.
A single retail investor could takeover?
That was never a possibility. There are class A and Class B preferred shares. Insiders ALWAYS had a majority of the votes through those shares.
The common shares can't do anything, even if someone owned all of them.
Louis J. Desy Jr.
much ado about nothing.
Until the Good Gaming deal gets 'undo', leaving muppets with billions of shares of worthless stock.
Louis J. Desy Jr.
A/S is nowhere near that. NOT YET!
They can't do the A/S to 20 billion decorative common shares now.
If they did that now, then the muppets might notice that and get scared off from buying said decorative common shares.
They have to wait until the stock starts to move and volume picks up, and a few momentum players start trading the shares; THEN they can increase the A/S and start the truckloads of conversions of the billions of decorative common shares to give to the muppets.
I do admire what they are planning on doing. I wish I could pull such a thing off, but I lack the social skills necessary to ever be able to do such a thing.
I will be interested to see how high they get the stock up and if they will be able to convert all of the shares before it crashes. I think they are so good at what they do that they will be able to dump all 17 billion onto the muppets.
Louis J. Desy Jr.
Much ado about nothing?
If they can undo a deal whenever they feel like it, and get nothing for it; then they can undo the Good Gaming deal in the future, after they have dumped hundreds of millions of decorative common shares onto muppets.
That is what the problem is.
They can convert 17 billion shares and then declare that they are going to 'undo' the deal, leaving the retail market with billions of common shares in a company with nothing.
That is the problem.
This stock is so dead it can't even get up to $0.0003 on volume of less than 20 million shares.
Louis J. Desy Jr.
All interested parties have agreed
I do NOT dispute that they can agree to do the deal with Good Gaming or sell back SirenGPS. What I disagree with on SirenGPS/HDSI is the theory that they can undo a completed contract.
In order to transfer SirenGPS from HDSI back to SirenGPS, they would need to do a second, new contact, which I do not believe they want to do or disclose, since then they would have to either pay something or show it was worthless.
That would cause problems, since how can you go and issue 1.4+ billion decorative common shares to muppets, for something that was/is worthless?
That is why there are no filings and that is why they are doing this 'fairy tale' of rescinding the deal and pretending it never happened, except the part where the muppets get dumped on with truckloads of worthless shares.
I think that even someone like you is going to get stuck with tens of millions of shares when this all falls apart.
HDSI already had one 'near death experience' where the price was at $0.0001 and not trading; and now is heading towards another one that will take you in also.
Louis J. Desy Jr.
Circular argument is a logical fallacy
http://www.logicallyfallacious.com/index.php/logical-fallacies/67-circular-reasoning
https://en.wikipedia.org/wiki/Circular_reasoning
You need to provide another example, not the situation that is under discussion.
What I would recommend is that you can use the free access that most courthouses to Westlaw or Lexis and find a case on point that would demonstrate what you believe to be true.
You could also get a Fastcase subscription for $99/month.
Louis J. Desy Jr.
I understand the stock is at $0.0002!
And that it can't fall below $0.0001.
Louis J. Desy Jr.
Provide an example of where this happened
Then it should be easy for you to provide an example where it happened, along with how that does follow contract law.
HDSI/CMGO just do 'whatever they feel like' since they own the majority of the voting stock.
Louis J. Desy Jr.
Show me
Show me in the 8K where it tells anyone the following as of September 30, 2015:
1: Total assets.
2: Total liabilities.
3: Shareholder equity.
I await your answer, but you won't be able to answer because that information is not in a 8K report. It would be in a 10Q report.
Louis J. Desy Jr.
Provide examples or an explanation
I do not think you understand that what happened with SirenGPS and HDSI is not the one of the valid ways those things can happen, and how what HDSI/SirenGPS did was not one of them.
You say 'it happens all the time' but then provide nothing to support it, like examples or an explanation.
I think that you will find that the situations you are thinking about are NOT the same as the transaction between HDSI/SirenGPS, because you do not understand the 'fine details' of the differences.
Louis J. Desy Jr.
Hit the ask?
If you really want stock, why don't you just sit on the bid at $0.0001?
There does not seem to be much demand and with a little decline in buying, people would sell to you at $0.0001.
Louis J. Desy Jr.
Why don't you quote from the 8K to me
Show me in the 8K where it tells anyone the following as of September 30, 2015:
1: Total assets.
2: Total liabilities.
3: Shareholder equity.
I await your answer, but you won't be able to answer because that information is not in a 8K report. It would be in a 10Q report.
Louis J. Desy Jr.
A company not filing is not illegal. Correct
I never said it was illegal to not file.
What I did say is that without the filings, there is no way to tell what the accrued liabilities are for the company, yet the muppets were buying hundreds of millions of the decorative common shares with no idea what they were buying into, plus there is still no way to see what payables are still on the books.
For all anyone knows, HDSI is going get acquire Good Gaming and be several million 'in the hole' due to all kinds of payables being on books.
I do not question what the assets are since they never showed anything higher than total assets of $515 so far in that one quarter, and would expect assets to be around zero for Q2 and Q3.
Louis J. Desy Jr.
Contracts
Those are not the same thing.
A rewritten or amended contract is one that is still not completed and being executed.
The same with a rescinded contract, it is still in the middle of being executed and not completed yet.
The SirenGPS contract was executed and completed.
In my earlier example of two people transacting a house. Once the sale of the house is completed, it is done. If you want to 'undo' the transaction, you execute a new contract, you don't/can't rescind the old, completed contract.
As an example, everything relate to SirenGPS got 'rescinded', except the issuing of the 1.4 billion shares to the muppets. That, of course, stays completed; and people are saying that HDSI/CMGO are great deal makers for issuing over 1.4 billion common shares for a worthless product.
Of course, for the insiders it was a great deal. Where else could they have bought shares at a 50% discount on their lending, thereby getting themselves a 100%+ profit within a few months!
HDSI and CMGO just seem to make up things as they go along, and since they are the controlling shareholders, they can do whatever they want. The only problem could be if a shareholder brought a shareholder derivative lawsuit to stop it.
Louis J. Desy Jr.
Copying zeros. Problem is that sales were zero.
I think the reason they did not file the SEC reports is that they did not want to show all of the expenses that they were accruing, since that might have made it harder to sell the 1.4 billion common shares into the retail market; plus they would not have to disclose that sales were zero.
By not filing the 10Q reports, they could let people hope that SirenGPS product was about to have revenue 'any day now'. If they had filed a 10Q report, then everyone would have seen that sales were zero in spite of the fact that they were putting out press releases touting the 'new contracts' or test areas for SirenGPS.
Louis J. Desy Jr.
No debt?
Without a 10Q filing, there is no way to tell for sure. And even if the debt was somehow all paid off, there still could be all kinds of accrued liabilities for expenses that they do not consider debt.
There is also no explanation as to how a company with no sales does not have time to file its SEC reports.
CMGO was in a lot better shape than HDSI and even had some working capital, while HDSI only had $515 at the for total assets.
Louis J. Desy Jr.
Debt is paid?
There is no way to be sure until we get to see the 10Q reports for all of the quarters.
I find it troubling that a company that has zero sales is not able to file its reports on time.
Louis J. Desy Jr.
Enlighten me
Why don't you explain to everyone, under contract law, how a fully executed AND COMPLETED contract can just be 'undone' because someone 'feels' like it.
I wish I could just undo contracts when I feel like it, even after I have fully paid for something.
Louis J. Desy Jr.
Delisting will prevent you from getting the 15% needed
Delisting is a problem. If you do not get the 15% of the shares prior to that time, it will be almost impossible to buy the shares needed to allow you to look at the information.
Even if there are all kinds of assets all over the place, you won't know where they are or be able to do anything to protect them.
In order to get the 15%, the stock HAS to be trading. That means you need to do it prior to any delisting.
15% of the 161 million shares should only be about $12K and should be possible.
Louis J. Desy Jr.
Wait for the merger to become final?
If you recall, nothing they do ever seems to become final in their view. As a recent example, they 'undid' or 'rescinded' the SirenGPS deal months later after issuing over 1.4 billion common shares to retail investors.
The only thing that is final with HDSI, are the hundreds of millions of common shares that get sold to retail investors. Those stay sold, even though the product they sold the retail buyers on, disappears from the company as worthless.
Louis J. Desy Jr.
In the middle of a merger?
That didn't happen until November 2015, weeks after the end of Q3. They had plenty of time to file the reports.
They never had any sales and there is no evidence that anything was going on during Q2 and Q3 to explain why they couldn't file the reports.
Louis J. Desy Jr.
2015 Q2 and 2015 Q3 10Q reports not filed yet
The last 10Q report filed was for the period ending March 31, 2015; filed on 06/03/2015.
http://ih.advfn.com/p.php?pid=nmona&article=67131117
Since then the company has not filed the 2nd or 3rd quarter 10Q reports.
The 8K reports would not tell a person what kinds of liabilities or expenses the company had in those six months.
At the moment, there is no way to tell how much in payables or liabilities the company has.
Louis J. Desy Jr.
My mistake, it was about $800, not $100
It is hard when the stock price is so low to get the formula right in the cell.
But it is doing much better now, 15 million shares at $0.0002, is a little over $3K for the day.
Which is probably more cash than HDSI has in its bank account, but we can't tell since they were too busy, wheeling and dealing, to file the last two 10Q reports.
Louis J. Desy Jr.
Don't wait too long
One thing that you should consider, if you ever hope to get the 15% that is probably needed to be able to start getting information about the assets and transfer ledger; you need to do that prior to the shares being delisted.
I know that you do not think that the shares will be delisted any day, but you must agree that at some point, if no reports are filed, that the will get delisted.
I estimate that with 161 million shares, 15% at $0.0005 would cost about $12K.
The number of shares needed is about 24 million shares.
Are you near that number yet?
I would expect with all of the time that has gone by that you should be approaching that amount.
Louis J. Desy Jr.
I am amazed they pay any dividend at all
FY2016 Q2 report for the period ending Sept 30, 2015:
http://www.justenergygroup.com/Portals/0/Users/008/08/8/Upload%20files/Just%20Energy_Q2_2016.pdf
All numbers are in CAD.
Equity is negative $650 million and the company appears to lose money almost every quarter. In the year over year period, they lost about 300 million since Sept 2014 when equity was negative 311 million and Sept 2015 equity was negative 650 million.
Most of the borrowing is debentures, meaning it is unsecured.
I am amazed that anyone would buy the bonds, never mind the common shares that are going to be lower in priority someday, when the company finally has to file for bankruptcy as it becomes impossible to service the debt.
Louis J. Desy Jr.
It will be going to zero, it will be delisted by Feb 10, 2016
Jan 25, 2016 will be the confirmation hearing, and then the effective date will be Feb 9, 2016; then the common shares will be delisted Feb 10, 2016.
Louis J. Desy Jr.
Taking advantage?
The stock has not even traded $100 worth of shares today, and may even closed at $0.0001.
Louis J. Desy Jr.
Are you near 15% of the common shares yet?
Are you anywhere near 15% of the outstanding shares yet, or at least at 5% of the shares?
I believe that once you get to 15% of the shares, you have a right as a large minority shareholder to start requesting information.
While I do not think anything is left, you could at least start to find out about the stock transfer ledger and see what assets were held and when they get sold off.
Louis J. Desy Jr.
I will through the filings and find out when exactly it was
I will have to look through the filings for a number of quarters. I do not remember exactly when it was, but I do remember seeing that name and being surprised that it was around.
It is possible that the similar name is not the same firm and just a coincidence.
Louis J. Desy Jr.
Only $0.0001 to $0.0001
It does not looks like it has much support.
At least the price can't go below $0.0001at least until there is a reverse split and the truckloads of decorative common shares get dumped into the retail markets.
Louis J. Desy Jr.
I am not sure what you mean.
I do distinctly remember a firm with that name or similar being in one of the prior 10Q/K reports for HDSI, which is not buying Good Gaming from CMGO, and was surprised to see it mentioned in the press releases about the former CMGO lawyer.
Louis J. Desy Jr.