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Why so much consolidation near 1 penny has been necessary...
Here is the genesis of the explosive price move that GRCU has had, and some of my thoughts on the subject. As painful as this price consolidation near a penny is, IMO it has been a necessary evil over the past few months, for the following reasons.
During the period of Aug 2012 thru Dec 2013, GRCU (formerly TTDZ) traded in the low triple zeros (see chart below). That's 5 complete fiscal quarters of a trading range within the low triple zeros. During that extended period of time, there was least a couple billion shares traded, which represented the entire share structure for the company.
With the entire share structure having been traded in the low triple zero range between Aug 2012 and Dec 2013, there is a very high probability that the vast majority of shareholders had an entry price in the low triple zeros, prior to the price explosion.
Within the 3 month period of Jan 1 2014 and April 1 2014, the share price then ran from .0002 to 4.9 cents. That's a 240x move, which is more than 24,000%. And since that move was preceded by trading of several billion in the low triple zeros which was more than the entire share structure, the huge move upward likely left many original shareholders with huge gains from the triple zero level.
Had the share price been in the low triple zero level only briefly (as some of the OTC stocks experience prior to a huge move), there would not be a large number of shareholder sitting on gains of tens of thousands of percent. But as we know from the historical chart (see below), there was a period well in excess of a year with the stock trading in the low triple zeros for shares to be acquired.
I think it is because of this price history that we have been seeing the stock drift downward over the past few months. I believe that on most days, there's probably a couple of million shares that were originally picked up in the low triple zeros being sold at the bid. While some are questioning why would some people be selling each day with such future potential, the answer is that even around one penny, an original low triple zero buyer is clearing 20 to 50x their original purchase amount. And with an uncertain future, and a declining stock price, who could blame them.
I do believe that most of those original buyers (with an entry point in the low triple zeros) have been flushed from the system, and we should begin to see share price appreciation in the near future.
As always simply my opinion.
GRCU
•••> It all boils down to this <•••
All OTC investors/traders hope to stumble upon one of the authentic 'upside-explosive' OTC stocks. Because as we know, getting into the right one can be a financial life-changer. But only a precious few of the thousands of OTC companies have all of the necessary elements to do so.
We are in a new and highly desirable industry/sector. Governmental bodies are making the regulations (and public policy) friendlier every day, providing a constant source of positive news feeds.
We are being led by CEO Robert Calkin, an industry educator and guru, who has come on board with a compensation package that aligns his interest entirely with GRCU shareholders. Additionally, he has the type of connections that can fuel the release of meaningful PRs for years to come.
And best of all, he has begun building a scalable, and potentially profitable entity. And generating a profit eliminates the biggest risk present in most stocks in the OTC world... toxic convertible debt issued to fund an operational loss, leading to large scale dilution and thus share price destruction.
The green movement is here to stay. And it goes far beyond cannabis/medical mj formulations. The movement also encompasses eco-friendly household products, such as the all natural hemp based deodorant that Green Cures has recently added the allbotanical.com web store.
I believe we have something really rare here.
As always, simply my opinion.
GRCU
Here 's the real news:
According to the Nevada Secretary of State, the authorized common shares, during last year, went through the following changes:
-from 100 million to 200 million
-from 200 million to 350 million
-from 350 million to 700 million
-from 700 million to 1.5 billion
Then mgmt waved their magic (1:750) reverse split wand, and voila... there were only 50 million authorized common shares (after all of the dust settled).
And then, as Yogi Berra said, "It's like déjà vu all over again."
The dilution machine has resumed, because just recently, the authorized common shs was increased again. This time, it was increased by a factor of 10x:
-from 50 million to 500 million
OWOO mgmt seems to be getting more proficient at the authorized share increase process, because it took them far fewer steps this time to get the A/S up by 10x (bypassing last year's individual increases from 100 million-> 200 million -> 350 million).
BTW, the current 500 million authorized common shares is equal to 375 billion (with a 'B') pre reverse split adjusted shares.
But have no fear, we should be okay (sarcasm added). Because an entity on record as having provided toxic convertible financing to OTC companies in the past has just provided $800k to OWOO.
As always, simply my opinion.
ouch OWOO
My thoughts on what happened today...
As can be seen on the GRCU daily chart below, on 5 of the last 7 trading days (before today), the share price was met with resistance when it moved up to the 50 day simple moving average.
This probably scared away some technical traders, leading to a long red candle today. The interesting thing about charting and technical analysis is that it can not account for unexpected news. I continue to hold my shares because (in addition to the extremely strong price support in the upper .008's) I expect to be very pleasantly surprised with continued positive developments at Green Cures. CEO Robert Calkin will deliver.
As always, simply my opinion.
GRCU
Take the OWOO quiz:
News of $800,000 in new financing was released today. We have about 100,000 total shares changing hands (w/ a total trading value of less than $2k) with less than 10 minutes left to the trading day. Which of the following is true?
a) Share volume is anemic because word has not yet gotten out (even though this forum is seeing more dialog participation today than it has seen in quite some time)
b) This is very welcome funding (even though the company providing the funding is known for providing financing of the toxic convertible type)
c) At .02, the OWOO share price is showing a healthy rebound (even though this boost to the share price still leaves it down about 90% from where it was trading immediately following the 1:750 reverse split, at about .22/shr)
d) Doll sales at HEB and other distribution channels are robust (even though we've received no evidence of this, and the company continues to fund operations via third party financing)
e) Old investors/potential investors now know exactly who they are dealing with
As always, simply my opinion.
ouch OWOO
•••>One of my favorite movies is Braveheart. In one of the scenes, the English King is on the battlefield, and issues an order to send in the archers. One of the king's advisers then seems a bit surprised, and asks something like (paraphrasing) 'But sir, won't we be hitting our own men.'
Then the king replies something like (paraphrasing) 'We'll be hitting the enemy as well, and we have reserves (more of our own men to replace the ones that will surely perish from the action).'
The reason I refer to this scene from Braveheart is that I think that specific calculated callousness of the English King reminds me of what OWOO did less than a year ago. As others here will recall, a PR was issued declaring better than expected Q4 doll sales, the paying down of some toxic convertible Asher debt, and the implementation of a share repurchase plan. Within weeks of that optimistic and encouraging announcement, they announced a 750-1 reverse split (also announced in Dec 2013, executed in Jan 2014).
When contemplating whether to execute that 750-1 R/S, I have to imagine that someone at OWOO brought up the fact that it would decimate the investment of those shareholders that have been supporting the company by 1) purchasing the stock on the open market, and 2) getting the word out to other potential investors. In other words, wouldn't the reverse split hit our own investors, just as the archer's arrows in Braveheart would be hitting their own men.
But just as the king in Braveheart was not too concerned about the carnage he would be causing to his own men (because he had reserves), OWOO mgmt must have felt that they could simply replace the old open market investors with a new wave of open market investors, after the reverse split destroyed the investment of the old investors.
Additionally, OWOO did not need to be too concerned with the extensive shareholder damage caused by the 750-1 reverse split, because mgmt was quickly issued many millions of new shares very shortly after the reverse split (the equivalent of many billions of pre reverse split shares). In other words, OWOO mgmt was not on the same field where the archer's arrows needed to be a concern. I guess one lesson here might be that arrows can sometimes act as boomerangs.
As always, simply my opinion.
OWOO
It is all a bit sad, sampa, but I posted this statement back in April:
"Months from now, after many more 'positive developments' are communicated to the investing public by those at OWOO, they will likely ask themselves the following question.
With so many seemingly positive developments inside the company, why has the investment community not embraced our stock. And by embraced, I mean a sustained price increase, where investors/traders are not running to the exits on any significant pop.
After some internal reflection, they may come to the realization that investors will not respect a stock that is not shown respect by those running the company. It would seem to me that they have not come to this realization yet.
As always, simply my opinion."
link:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=100464369
Here's the chart on one of the other companies recently ' helped out' by Blackbridge Capital (the company that has just provided funding to OWOO). Consider it a potential sign of things to come.
Here's a link for the details:
link:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9973274
"Issued 10,416,667 shares to Blackbridge Capital in connection with a convertible promissory note entered into by and between the Company and Blackbridge Capital related to a 3(a)(9) transaction."
As always, simply my opinion.
ouch OWOO
One gets shares out the back door at such a discount, they are virtually guaranteed a positive return on their investment, and the other (open market buyers of shares) end up as pavement material on the road to success (or failure).
As always, simply my opinion.
Nice spin on yet another toxic type financier, and more potential dilutive financing. Here's a recent, specific example of Blackbridge Capital (the company stated in the PR below) providing similar assistance to another OTC company, which then resulted in dilutive shares entering the market (and contributed to the crushing of the stock price).
As always, simply my opinion.
"Issued 10,416,667 shares to Blackbridge Capital in connection with a convertible promissory note entered into by and between the Company and Blackbridge Capital related to a 3(a)(9) transaction."
link:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9973274
HOUSTON, TX, Sep 24, 2014 (Marketwired via COMTEX) -- The One World Doll Project, a subsidiary of One World Holdings, Inc. (OTCQB: OWOO), announced today that it has recently entered into an $800,000 private equity partnership with Blackbridge Capital, a New York hedge fund, and a group of private equity investors that will focus on debt reduction and balance sheet enhancement.
"Over the past 18 months, the company has taken on several large convertible notes that have had the unfortunate effect of creating derivative liabilities on our balance sheet and downward pressure on our stock price as a result of simultaneous conversions of those notes into stock at a substantial discount to market," stated Joanne Melton, CEO of One World Holdings. "By the end of the 3rd quarter we will have consolidated and eliminated several of our most expensive institutional and private convertible notes totaling over $415,000. The purpose of this initiative is to phase out at least 50% of the total company debt by the end of 2014," she added.
"We are thrilled to partner with One World Holdings while enhancing their balance sheet, increasing shareholder value, and providing advice on business plan execution," said Alexander Dillon, Co-Founder and Chief Investment Officer of Blackbridge Capital. "We are also extremely proud of the diligent efforts of the One World management team as we work together to eliminate derivative liabilities and secure key business development milestones, including the most recent achievement of locking up a premier spot at Toy Fair 2015 where the company will unveil its new line of Prettie Girls! dolls created in partnership with Robert Tonner and The Tonner Doll Company."
OWOO
Makes one wonder... how far are they willing to travel to run from the shareholders that they have burned in the recent past?
Some would consider massive destruction of shareholder value a sign of failure for a publicly traded company. It would appear, though, that this view is not held by all.
As always, simply my opinion.
Thanks for the compliment, LD1. I think that once we enter the sweet spot of .012x, GRCU will run like the wind.
That doesn't surprise me, lol. That was the episode where you became an overnight star. GRCU Cessna money and such.
Hey RickNagra. Not sure if you have been keeping up with the latest episodes of The Adventures of GRCU. Here's the most recent episode, in case you missed it...
Presenting Cinematic Excellence: Episode 15 - The Adventures of GRCU
IMO, it is only a matter of time before this stock explodes to the upside.
GRCU
*All images are for entertainment purposes only.
Well stated... I just wanted to add one point. With the very recent increase to the authorized common shares, there is now a reverse split adjusted authorized of 375 billion (with a 'B') (500 million x 750).
But as the narrative goes, common share dilution is not a problem here.
As always, simply my opinion.
In a low trading volume environment, even a relatively small number of shares released on the market (where the converter had a cost basis of .0025/share) could quickly push the stock price to that deep sub-penny conversion price.
I know this is the case because I witnessed the value of my OWOO shares get crushed, when this very phenomenon occurred last year.
It has very little to do with the boogeyman, and a whole lot to do with note conversions.
As always, simply my opinion.
Since there was some confusion as to my wording, I'm reposting the message regarding Robert Calkin's compensation agreement (with clearer verbiage).
Something all shareholders should know about Robert Calkin...
In contrast to GRCU's employment agreements (which align the interest of shareholders with those of the company execs), several of the other OTC stocks I've owned have chosen to book a liability for the CEO's salary (i.e. salaries payable) for several quarters/years, and then the company eventually announces 'great news' via a PR that it is clearing away debt off the books.
Then those companies proceed to issue shares to the CEO to wipe the accumulated salaries payable balance off of the books. And since the stock is usually way down just prior to this 'debt satisfaction' event, the CEO ends up getting several hundred million common shares to wipe the salaries payable off of the books, because the share price is in the crapper.
If, for example, the stock was trading at .0005, a million shares would need to be issued to the CEO to satisfy each $500 owed in back salary. And 100 million shares would need to be issued to satisfy $50k in salaries payable.
By Robert Calkin accepting the static figure of a total of 4 million shares for the full year (1/4 of which vesting each quarter), regardless of the performance of the stock, he has demonstrated his confidence in the value of GRCU stock. And when a CEO of an OTC company demonstrates confidence and respect for the stock, the market tends to follow (because it is such a rarity in OTC land).
As always, simply my opinion.
GRCU
Useful to know, Voices of Reason. Thank you for this reply. What looks most disconcerting to me, for example, are notes like the one for $150k, with a stated share conversion price of .0025. That one note, if converted under those terms, has the power to single handedly send the OWOO share price deep into sub penny territory.
As always, simply my opinion.
Thanks, onpoint2. Agreed that it is just a matter of time. Wishing a great day to you as well.
Some have expressed the opinion that a chewable juice, such as the one that Fresh Promise will be launching upon receipt of the dept of agriculture licensing (via their Harvest Soul subsidiary), is not a product that would be of interest to consumers. After all, why would the world want to chew a beverage product.
Here is some info relating to another chewable beverage, which happens to be popular in the some asian communities, known as 'Bubble Tea'. Although a very different product, they do have the 'chewable' element in common. For those unfamiliar with Bubble Tea, here's some background on the beverage:
"Bubble tea was invented in Taiwan during the 1980s.
One possible origin is Chun Shui Tang teahouse in Taichung, where Ms. Lin Hsiu Hui (product development manager) poured sweetened balls into the tea during a meeting in 1988. The beverage was well received by the people at the meeting, leading to its inclusion on the menu, ultimately becoming the franchise's top-selling product. An alternative origin is the Hanlin teahouse in Tainan, Taiwan, owned by Tu Tsong-he. He made tea using traditional white tapioca, which has the appearance of pearls, supposedly resulting in the so-called "pearl tea". Shortly after, Hanlin changed the white tapioca balls to the black version that is seen most today. The drink became popular in most parts of East and Southeast Asia during the 1990s.
In June 2012, McDonald's McCafé locations in Germany and Austria began offering bubble tea. They offer black, green, or white tea, available with or without milk. Fruit syrups are also available, bringing the total number of possible flavor combinations to 250." - wikipedia
Of particular interest is the fact that McDonald's began offering it in Germany and Austria.
Fresh Promise Foods (led by CEO Kevin Quirk, former marketing head for the Minute Maid division of Coca Cola), may just go down in history as being ahead of the curve on this one (with regard to the US market).
As always, simply my opinion.
FPFI
Something all shareholders should know about Robert Calkin...
In contrast to GRCU's employment agreements (which align the interest of shareholders with those of the company execs), several of the other OTC stocks I've owned have chosen to book a liability for the CEO's salary (i.e. salaries payable) for several quarters/years, and then the company eventually announces 'great news' via a PR that it is clearing away debt off the books.
Then those companies proceed to issue shares to the CEO to wipe the accumulated salaries payable balance off of the books. And since the stock is usually way down just prior to this 'debt satisfaction' event, the CEO ends up getting several hundred million common shares to wipe the salaries payable off of the books, because the share price is in the crapper.
If, for example, the stock was trading at .0005, a million shares would need to be issued to the CEO to satisfy each $500 owed in back salary. And 100 million shares would need to be issued to satisfy $50k in salaries payable.
By Robert Calkin accepting the static figure of 4 million shares (vested quarterly) for the 12 month period, regardless of the performance of the stock, he has demonstrated his confidence in the value of GRCU stock. And when a CEO of an OTC company demonstrates confidence and respect for the stock, the market tends to follow (because it is such a rarity in OTC land).
As always, simply my opinion.
GRCU
•••>With the sideways trading near a penny during the past couple of months (which has followed the pullback from the initial pop to 4.9 cents), it is easy to make the mistake of believing that GRCU is destined to resume the downward drift into oblivion. Although every stock has a unique chart, below I have posted the chart of another company (NTE*) which I believe demonstrates similar price movement as GRCU, and also demonstrates the upside potential once consolidation has occurred.
After bottoming at under one tenth of a penny in late Nov '12, an uptrend began in NTE* which brought it to copperland. After peaking at nearly 3 cents in early Feb '13 (up thousands of percent from the Nov bottom), it spent the next few months drifting downward, and stood at about a penny a share in mid May '13.
So after peaking at around .03, it had lost two thirds of the extraordinary gains over the next few months. At that point, those still holding had to be concerned that is might drop back into the sub-pennies never to return to copperland.
Just as with NTE*, GRCU had quickly run from tripps to multipennies, only to drift back down to about a penny a few short months later.
But just as NTE* holders were likely beginning to lose hope, those who continued to hold were in store for an extraordinary run... one that would dwarf the original run which had peaked at 3 cents. After drifting back down to the 1 cent level, NTE* went on to hit a high of 13 cents per share a couple of months later, and then ran to 17 cents per share about 4 months after that.
So my point is that after a massive move upward (such as GRCU has made), from the land of triple zeros, price consolidation is almost always a necessary evil. It allows shareholders with an entry price far lower than the current share price to be replaced with newer buyers much closer to the current price. This process, as most already know, provides a much more stable foundation, allowing for higher highs on the next run.
Although anything can happen with the respect to share price in OTC land, it is my opinion that we'll be seeing new 52 week highs for the GRCU share price within the next few months.
As always, simply my opinion.
GRCU
I would like to share some thoughts with the group here. Yesterday evening I was watching a replay of the 1999 film 'Any Given Sunday'. And what I found most memorable was listening to Al Pacino's inspirational 'inch-by-inch' speech in the locker room. Here's an excerpt from the speech, followed by some of my thoughts on how it relates to Green Cures (GRCU).
One small excerpt goes like this:
'On this team, we fight for that inch.
On this team, we tear ourselves, and everyone around us
to pieces for that inch.
We CLAW with our finger nails for that inch.
Cause we know
when we add up all those inches
that’s going to make the [ ] difference
between WINNING and LOSING
between LIVING and DYING'
I know his speech was intended to motivate a team of players to win an important football game. But it clearly applies to so many other situations in life. As I watch the tug-of-war of inches with the GRCU price action during trading, I can't help but think about the importance of fighting for that inch.
And I know that some will undoubtedly think that I've gone off the deep end, but I see several of the posters here as a strong DD (due diligence) team, fighting for that inch, with the big picture in mind.
As always, simply my opinion.
GRCU
Thanks, DMOST. I have found that sometimes analogies do a very good job of explaining or describing perplexing human behavior.
Here's what I think is going on at the moment. There are a number of people watching from the sidelines, some of whom have been able to easily reenter GRCU between .0085 and .0099 each and every time they have exited over the past few weeks.
It is sort of like a relationship where you can break up over and over, knowing that you can always get back together because the ex never says no. The interesting thing though, is that no matter how many times they took you back in the past, at some point they suprise the hell out of you by saying no.
GRCU will be precisely like that. Back in below .01 over and over again, so why expect things to ever change. Then in an instant, GRCU won't take you back at below .01. Just like in the example with the ex, that's when the real chase begins.
As always, simply my opinion.
GRCU
Some here may be familiar with the concept known as 'Occam's razor'. It suggests that 'among competing hypotheses, the one with the fewest assumptions should be selected. Other, more complicated solutions may ultimately prove correct, but—in the absence of certainty—the fewer assumptions that are made, the better.' - wikipedia
One view that has been expressed is that although production facilities have been secured, and a product, packaging and various marketing materials have been developed, the whole chewable juice thing is an elaborate hoax, with there being no real intention of a product launch. I can not argue with certainty that it is not, since the product is not yet available for sale.
I choose to believe, though, that the explanation is much simpler. I choose to believe that the product launch delay has been caused primarily by delays in obtaining the necessary certification(s) from the dept(s) of agriculture, just as the company has stated via recent correspondence.
If the CEO of Fresh Promise Foods had not previously served as the head marketing guy for the Minute Maid division of Coca Cola, I might lean more toward the hoax scenario for an explanation as to the delay. But my gut tells me the plan is actually as stated - to launch the chewable juice product as soon as the required state/fed approvals have been obtained. And once the product actually launches, I believe the stock will move up by a factor of at least 10x from the current level.
As always, simply my opinion.
FPFI
•••> It all boils down to this <•••
All OTC investors/traders hope to stumble upon one of the authentic 'upside-explosive' OTC stocks. Because as we know, getting into the right one can be a financial life-changer. But only a precious few of the thousands of OTC companies have all of the necessary elements to do so.
We are in a new and highly desirable industry/sector. Governmental bodies are making the regulations (and public policy) friendlier every day, providing a constant source of positive news feeds.
We are being led by CEO Robert Calkin, an industry educator and guru, who has come on board with a compensation package that aligns his interest entirely with GRCU shareholders. Additionally, he has the type of connections that can fuel the release of meaningful PRs for years to come.
And best of all, he has begun building a scalable, and potentially profitable entity. And generating a profit eliminates the biggest risk present in most stocks in the OTC world... toxic convertible debt issued to fund an operational loss, leading to large scale dilution and thus share price destruction.
The green movement is here to stay. And it goes far beyond cannabis/medical mj formulations. The movement also encompasses eco-friendly household products, such as the all natural hemp based deodorant that Green Cures has recently added the allbotanical.com web store.
I believe we have something really rare here.
As always, simply my opinion.
GRCU