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I believe warrant holders/preferred stock holders are selling first and converting second. The selling is out in front of the converting. That is why there are significant failures to deliver. This is on REGsho threshold list and short circuit breaker list every day. The chart shows this as well. Before August 25th, before those units were even freed up the pps had already crashed from 2.50 a share to the 30 cent range. It did that WITHOUT dilution. I started to nibble today and bought at about 9 cents but then when it kind of topped out on the daily and could not hold green I sold the shares back. I believe shorts are in real deep with this one but with so many warrants to have their backs I really have no good guess what the bottom will be here and to be honest I don't see how anyone could have a real good guess either. I am pretty sure how shorts/warrant holders are playing this though. Sell first convert second.
"Thats what I want to know, who bought those 13 million shares today when this looks so horrible???"
Completely agree. If it breaks 0027 then 50dma should get a challenge. I think it will do it and I think it will not be stopped by the 50, but we'll have to see.
It spoke loud and clear to me OG. Last pop it pretty much got rejected by the 32dma and the upper bollie and with heavy volume. Chart said sell on that day. Today it was clear chart said buy/hold.
Yes agree. Also that last pop could not break the 32dma. It stopped just short of it. It broke 32dma today and held at and above it all day.
Hey hommie, how have you been? I'm glad you kept your eye on this one. I figured the pinch it had way back in July wouldn't be relieved until after Labor Day.
LOL! Nice situation to have.
Man you have a lot of shares. I thought I was doing well with just under 4 million at avg of 0013.
Yes it is. It was ready to go actually starting a couple of weeks ago. Everything was in place. Only problem was that it was August. It isn't August anymore.
Man I love it when a plan comes together.
Thanks, it is just a theory of what I think happened. I can not prove it of coarse but when I put the trail of breadcrumbs together it is what I believe happened.
I completely understand there are over 18 million C warrants left. I read that 8K a couple of days ago when I started to look into this and got interested. The discussion here seems to be completely about there a X amount of C warrants left and X amount of E and what may be the end of it all. All of that is known or should be known by everyone. It just keeps getting talked about and is the dominated discussion. I am trying to bring up some other points besides those things. Again, what I find interesting is that as of that 8K there had been a 5 fold increase in shares but yet there are failures to deliver. GBSN is on the threshold list and the circuit breaker list. Why are there fails to deliver here when there should be plenty of shares in the market with the massive dilution that has taken place. Why are sellers unable to deliver shares. They should have plenty to be able to deliver. Regulators have placed GBSN on the threshold list and the circuit breaker list, not me so it isn't my idea.
What I believe is that before Aug 25th when the units were freed up shorts were already shorting this knowing dilution/conversions were coming. On the chart you can see massive selling before the 25th even came. The pps by the 25th had already crashed from 2.50 to the 30 cent area and the units hadn't even been freed up yet. To me is seems that shorts have been selling ahead of conversions. That is how there can be failures to deliver and that is how the massive pps crash happened more so before, not after the units were even freed up. Shorts have been selling before even converting shares. In doing so it drove the pps down harder and faster. It allows them to have made a massive amount on the downside. To lock in the gain though the trade must be completed which means they have to cover. To cover they convert the shares and complete their short sell. When this happens the downward pps movement happens before shares actually hit the market. People think conversions are happening which floods the market with shares and that is causing the pps crash. I think shorts have flooded the market selling before they convert which crashed the pps and then convert to then deliver the shares and close out their transaction. Smart shorts here sold (shorted) at over 2 bucks without having shares in hand but knowing they were going to have those shares. As the conversions happen they then have the shares in hand and use the shares to cover. They made enormous money. On another 8K I even see the company says "technical deficiency". There you have it. The company is saying there is settlement problems at the clearing house, meaning failures to deliver. There are two side to a trade, buy side and sell side. One of the sides is not meeting obligations at the clearing house to settle the trade. What is more likely. That buyers are not delivering cash or is it more likely sellers are not delivering shares.
The whole point at what I am getting at is first shorts played this brilliantly. Second everyone here is saying "18 million more C warrants to convert". Yes that is true but if shorts did what I think they did then I think a big chunk of that 18 million has already been used. If they have sold any of those before hand, before even converting then the negative effect it would have on the pps has already happened. If that happened then when they go to convert the shares they will be used to cover because they have already sold. If that is the case then converting to cover will not negatively affect the pps. The selling effects the pps. The simple act of converting does not hurt the pps. As simply as I can put it is that I believe what happened here was that instead of conversions first and selling second the reverse happened. Selling first and then converting to cover. There must be some sort of hiccup though because now the stock is on two REGsho lists. Maybe they over-extended themselves, who knows. Finally someone might ask why would the company only report there are currently 37 million shares right now if I am saying that a whole lot more of those possible conversion shares have already been sold. The company reports what shares are actually issued. They can not report on shares that have already been sold but not yet converted. This I think is why they said "technical deficiency" because shorts have sold a lot more shares to the market then they have actually converted. If that is true then the summary ends up being that those 18 million warrants are not really 18 million because a big chunk was already sold. They just now have to be converted and then delivered to close out the trade. This is why there is a technical deficiency and failures to deliver because shorts have sold first and converted second. Who knows how far out in front of conversions they are with their selling. Are they 20,40,60,etc million shares sold out in front of the process of converting them. What ever amount it is then that amount is now benign because the destructive part, the selling, already happened.
I was just pointing out what that write up said and predicted. I didn't say I believed it. It was a very negative article too, so for the writer to underestimate would have been strange because it didn't seem the writer had any issue holding back on their opinion of GBSN.
I know there are 18 million C warrants left. I said that earlier. That isn't what has caught my eye. What has is the fact that there is a flood of new shares on the market but yet sellers are not meeting their obligations and delivering shares. That has caught my eye. I have an idea that that situation may have occurred because shorters actually used a chunk of those 18 million warrants that are left and have already sold a chunk of them. Sold them (shorted) before they converted them. Anyway those are my thoughts about this. Have a good evening.
Sure the company could buy back shares or settle warrants with cash. Will they though? I don't know. They said that they would look at doing some, but that isn't concrete.
Very interesting information. Read this part again:
"financial portals indicate that GBSN has only 5 million outstanding shares, a February 2015 secondary offering created convertible preferred stock and warrants that will allow an additional 35 million shares to flood the market. "
That February offering was the units that is causing this mess now. That write up suggests that the units (February offering) would add an additional 35 million shares. That write up basically was predicting that there were 5 million shares at the time and then down the road units would be unleashed and add 35 million for a total of 40 million it seems to suggest. I believe that the current outstanding shares of GBSN is approaching 40 million now. Was that write up back then predicting that there would be 40 million shares outstanding once the unit conversion was finished?
You have a situation here where outstanding shares has increased 5 fold in just a couple of weeks and yet sellers have not been meeting their obligations to deliver shares. That is insane, an explosion in shares but sellers can not deliver them. Only thing I can think of is that they started and continued to short before converting and actually having the shares to deliver. They very well may have used a huge chuck of possible future conversions that have not yet been converted and yet have used them already and sold (shorted). If that is the case then simply looking at the 18 million C series that are left would give a false idea of what is truly left because if a chuck of that was already sold then it is already in play, even if they have not yet converted. I do not see another way there could be such massive dilution and yet sellers can not meet their obligations to deliver shares. I myself do not own anything here but I am all the sudden very interested in this situation.
This is on the REGsho threshold list AND the REGsho circuit breaker list. It is on both. Good heavens, this thing has been shorted to death. Last listed short interest is not very big but it is as of Aug 14th so that makes the info useless because the units were not freed up until Aug 25th. I can only imagine what it is right now. 2.50 to under 17 cents in 3 weeks, RSI at 11 etc, etc. I just started to look at this. It is just a theory but I would not be shocked if a ton of the to be conversions, warrants that have not been converted but can be converted, have already been used to sell (short). E series is pretty close to being done but C series there is still a lot. I can only imagine that perhaps a huge chuck of the C has been used up even though they have not been converted yet. In other words they have already been sold (used to short with). I just got very interested in this stock.
SFXE is a REGSHO circuit breaker. Been day flipping this. I might now buy some to hold for more then a one day flip.
Yes I realize that. Please re-read this section of a post of mine tonight.
"Third, note converters thought more shares would be coming because another note was coming due. The company seems to have made arrangements with different lenders that pushed back these notes. If a note converter was shorting this stock while believing that another note was to be converted very soon then that MM very well might be caught and very well may be vulnerable now with the push back of that possible conversion. If that is the case then some deception could be attempted to cover up that weakness."
Completely and totally false. First this is a QB not a pink. Second that scenario you are referring to always involves note converters.
You said " The company can dump shares any time they want to raise capital. That capital is then used to pay the CEO's inflated salary along with his wife's salary because she is listed as the Treasurer and then his brother who is the Vice President and then his Uncle who is the COO, etc etc etc."
No an OTC company can not. They have to get a loan from a loan shark. That loan shark then does the dumping. The monies collected via the loan are then possible used according to your example. It is not even up for debate. These companies must raise capital through loan sharks. They can not do it themselves with stock offerings directly to the public. It is SEC rules for OTC companies and I will not waste time to debate it. The SEC may change this however because of the damage that these loan companies have caused. Also, if a company could just sell shares directly to market then why on Earth are toxic lenders even in business? Think about that for a second. You really believe that these shady little OTC companies would rather get less money for more shares from a toxic lender when they could get more money for less shares if they sold directly to market. They have to give insane discounts to the loan sharks. The company would get way more money if allowed to sell directly to market. If they could do it, they would do it. They are not allowed.
It is against SEC rules for OTC companies to just go and dump shares. They can not do it. These are not Nasdaq or NYSE companies. That is the reason toxic loan companies are in business. If a company could I am sure that they would prefer to dump shares directly to the market place instead of giving loan sharks 40 and 50% discounts. As far as insiders go that personally own shares filings would have to be made for them to sell. This is a QB stock that fully reports. There is no filing of insiders selling. Bottom line it is not the company. Supposedly the SEC is working on guidelines to allow OTC companies to raise capital with stock offerings directly to the market place. Maybe the SEC is finally realizing what kind of damage is done by these loan sharks.
Dumping of shares has all been done by note converters. That is the real and only explanation. Note converters seem to have backed off a lot recently. If anyone is bewildered why there is still selling pressure there are some possible reasons. First, retail has been doing a lot of channel trading. Second, a conversion dealer does not have to be ax to execute trades. He can sit 3 or 4 down and sell. Third, note converters thought more shares would be coming because another note was coming due. The company seems to have made arrangements with different lenders that pushed back these notes. If a note converter was shorting this stock while believing that another note was to be converted very soon then that MM very well might be caught and very well may be vulnerable now with the push back of that possible conversion. If that is the case then some deception could be attempted to cover up that weakness.
It is against SEC rules for companies to just go and dump shares. They can not do it. That is the reason toxic loan companies are in business. If a company could I am sure that they would prefer to dump shares directly to the market place instead of giving loan sharks 40 and 50% discounts. As far as insiders go that personally own shares filings would have to be made for them to sell. This is a QB stock that fully reports. There is no filing of insiders selling. Bottom line it is not the company.
Dumping of shares has all been done by note converters. That is the real and only explanation. Note converters seem to have backed off a lot recently. If anyone is bewildered why there is still selling pressure there are some possible reasons. First, retail has been doing a lot of channel trading. Second, a conversion dealer does not have to be ax to execute trades. He can sit 3 or 4 down and sell. Third, note converters thought more shares would be coming because another note was coming due. The company seems to have made arrangements with different lenders that pushed back these notes. If a note converter was shorting this stock while believing that another note was to be converted very soon then that MM very well might be caught and very well may be vulnerable now with the push back of that possible conversion. If that is the case then some deception could be attempted to cover up that weakness.
It is just what I believe. Last week there was really good news twice. Both gave the stock a nice pop, volume however was not sustained as is typical for the OTC this time of year. If volume can not be sustained then only a pop can happen. A run can not however without sustained volume for multiple days. After Labor Day is usually a better environment for something like that. They can try it if they wish and put something out this week but they would have to follow that up and put something out next week to re-juice and sustain the volume as it begins to return to the OTC. If they have a couple of bullets they can use then sure they can try this week and follow up. I get what you are saying. I see where the 20dma is and I completely understand that the chart is just sitting there ready to go. I think the company and many here want a run and not a pop though. To facilitate a run, strategy and timing of environment is important. If they have multiple bullets though then yea strategically putting out something this week would make sense.
IMO, an attempt by the company to resurrect the share price should not be tried until after Labor Day. Many want something done right now but trying to get a penny stock to have a good run between July 4th and Labor Day is very difficult. The OTC just does not have the volume during that period. An attempt after Labor Day could have a much better chance. Some here are saying they do not expect news this week but they do expect news next week. If I were EVTI, I would not put anything out this week.
Yea, as I said I was in this as a bounce play. I did not look deep into the financials. Got in at .0432 and out at .075. Take care.
I did as well. Bought a lot in the mid 50s. I was able to sell yesterday for over a dollar. I kept it on watch and when I saw it tank this morning I jumped right back in.
First, only a short/converter or an imbecile would desire a reverse split.
Second, this company fully reports. They would have to file a proxy just to give the board the power to do a reverse split. Regulators require that shareholders be given at least 20 days notice. The filing is the notice and the board would have to wait at least 20 days from the filing. There is no filing so there is no split.
Third, a month ago I warned Gannon that certain entities would desire one and what to look out for. I explained how it hurts all entities except for shorts/converters. His reply back to me was "We are absolutely not looking at doing that at all. I agree with you and thank you."
It was a less then $20 paint job, not 200 dollars. A 300 share trade end of day made the stock close down 23%. Sorry for the mistake. I thought it was a 3000 share paint. It was not. It was 300 shares. It was also done end of day. Only reason I can see for someone selling 18 dollars worth of stock and do it end of day is to try and manipulate the chart.
That is their loan with Deerfield I believe you are talking about. I bought this right at bottom. Stock has been trading clean and very thin. Buys were almost 4 to 1 to sells yesterday but a less then 200 dollar paint job end of day yesterday had the stock close more then 20% down. I mainly bought this for a chart play btw.
OG, the only problem that this stock currently has or had the past week or so is the time of year. As people should know that playing penny stocks, July 4th to Labor Day is tough on the OTC. I have seen some runners before in July but it is kind of rare. In August the OTC is a total mess usually. No volume and that is what gives breath to the OTC. It is very rare to see runners in August. Some pops or bounces yes, runners however are rare.
The chart here is setup. The share structure is still well below 500 million at least. The converters seem to have nothing. When someone buys from a conversion dealer at the ask they move up quick lately. They even sit on the bid a lot. These conversion dealers short knowing that they will get more and more shares and it is risk free. From what I can tell converters thought they would be getting more shares soon as more notes were going to be due to be converted soon. EVTI then appears to have made other arrangements with other lenders that might be more friendly that pushes back what was due to be converted. My guess is that converters are caught short on the stock. They knew more conversions were coming. This then changed when EVTI secured new deals. Converters will not be getting more shares for quite awhile now. The converters need to cover their short. Games are being played and they are getting away with it because there is a lack of sustained volume. There might be spurts here or there but overall there isn't anything sustained. I think time is finally running out though. There are now just 4 trading days before Labor Day. After that volume always returns to the OTC. This stock in particular with the chart and share structure setup it has will get a lot of attention I believe and the necessary sustained volume that is needed will come. I am a buyer again this week. I have flipped this 4 times now. I flipped and did not hold not because I did not like EVTI but because I understood what the OTC season was. It is very difficult for an OTC stock to have a sustained rally in August.
I got in this at 88 cents. I do like it as a play but I think it has more upside then a buck. I am holding.
When this broke the 20 day moving average I got back in and I am really glad I did. RSI broke 70 today so I am out again. Made another 50% on top of the 40% on the first trade.
Cheds is a nice guy and a smart guy. He is correct that regulators have tightened up on reverse splits and really for the most part are not allowing more then 1 a year now. Becuase of that he is assuming that if more shares are to be dumped then some entity whether that is the company or converters or whomever need to get the pps up to accomplish this. He is just trying to make a bet and trade the stock. He is also being honest about it. He might end up being wrong but he is just playing the percentages. I think he is making a decent bet actually. I don't know why you attack him so much with so many posts. It makes you look stupid not him.
Completely agree.
Wanted to let you know that you are not here by yourself. I have been in since 4 cents, and I am still in. It has been a little slow but it has been marching along. I agree it was a great week. Enjoy your weekend.
Hey Cheds, what's up? You and R&R hanging over here huh? I took a small nibble of this at 3 a few days ago. I am on the bid at 1s. I might make a little slap at 2s. You and R&R are correct. Regulators are not going to allow another reverse split this year. Technicals are set up for a bounce, converters want their money I would think. All in all a bounce is probable. It could take a little while but some entity will probably revive this thing, eventually. ADX RSI and PPO all looking good.
Agree CJ, looks good. Best wishes, see everyone tomorrow.
Agreed.
Yes, trust me I am looking at the chart. I will not sell into a rally when it just broke and held the 20 day moving average while the ADX line is well over 30 while the RSI just broke above 30 while the PAR/SAR just flipped bullish. The percentages are that there is much more rally to be had. Have a look at that 50 day moving average, way up there over a penny.
514, you know you are not supposed to say anything logical. Anyway the bottom line here is the 20 day moving average. If it breaks it and holds above it is party time here. Good luck to all.
I agree. I have to be honest. I just don't understand some folks. It breaks and easily holds above the 20 day moving average so they sell it smh. It isn't a guarantee but the percentages are good.