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Post incoming from Alpha in 3.....2.....1.....
Anyone else just get a notification of $0.60?
Good luck to you as well. I will be following closely.
WDDDD up on TD Ameritrade at $0.31. Does this trade or will it be halted? Seems if they need to swap it out they'll halt. Unless it's all being done behind scenes and ready to be done at open.
Get ready for an interesting, interesting day.
I agree. The peak will be a few days after news of the court hearing hits the mainstream media.
Welcome to the board.
It's understandable totally - WDDD is a risky play from the getgo, a ton hinges on human opinion, human error, bias, interpretation, etc. Many people have been burnt by patent and other penny plays like WDDD.
But I agree - I don't know how many patent plays I've seen in such a strong position. I really think VRNG turned a lot of money away from speculative patent plays. Some who lost a lot in VRNG turned to WDDD; most just turned away from patent plays in general. Just my theory.
The risk/reward is outrageous. A WiFi win and court decision pumped this 300% in 2 weeks.
You're talking about a settlement or court date win pushing this to the thousands of percents from the pennies it trades at nowadays.
Yes - I figured a court date was coming sometime in June or July 2018 with a decision early 2019.
= 18 months.
Things happened faster than that - WiFi success (which I didn't think was coming), and a March court date.
But my feeling was upward movement the closer we got to a court date announcement.
I was wrong about WiFi - I am willing to admit that.
I am also willing to admit I was wrong about WDDD breaking through from .09 to .10 when the buying pressure was crushing the selling pressure in the .09s.
But in general, we're heading the way I thought, and the opposite way you thought.
No?
Willing to admit you were wrong about your "predictions" or "feelings" or whatever you want to call them?
So far, it's looking like .04's are near.
Yet we're the ones in the "wrong" according to this mb.
"That said. I strongly believe .02's are en route
Possibly even .01's (again)
Scary time to be long WDDD"
Yeah that is a good point. I think the dip to .05 but immediate recovery to .06 definitely should help with stability. The only fear is that many some out there not checking news and this board and such have no idea about the R/S yet. Couple days go by, they check their account and see the R/S and panic. But if the initial volatility has already passed, some of those worries can maybe be quelled.
No one really knows. DataStream claims it is now the responsibility of FINRA to effect the R/S on all shareholders' accounts (or at least through the brokers). Another board member claimed in a previous R/S it took up to a month for everyone's accounts to reflect the R/S.
Nope. No further dilution necessary at the moment. The warrants were issued back when MRMD's value was around $1M and WDDD had no cash.
WDDD now has $1M from the warrant exercise and previous cash and over $6.5M of MRMD equity.
In addition to within the last six months $1.5M of notes payable essentially dissolved ($750k forever, $750k deferred for a few years).
Tell me, a trip to the CAFC and back to the PTAB costs $7.5M?
This will drop back to the 3-4 range. Mark it.
I'm going to assume that in the year 2018, warrants have clauses protecting the Company from uber-dilution from reverse stock splits.
If this was how warrants and R/S worked, WDDD would have had financiers camping on their doorstep waiting for a contract to be signed.
A warrant with an exercise of 0.025 for a company with a PPS of .02 (what it was at the time) and a 5/1 Reverse Stock Split looming is worth a ridiculous amount.
The case from New York cited on this board was a mistake made almost 20 years ago one time.
We all need to relax.
They are not issuing additional shares.
They already issued the 35M shares exercised by the warrant holders two weeks ago. Those 35M shares become 7M shares after the R/S.
The 246M shares outstanding before the R/S become 49M shares outstanding.
Add in the 7M shares post-R/S and you have 56M total shares outstanding with a market cap of 16M.
The reason the 250M was not sufficient because you are talking about PRE-REVERSE SPLIT shares. There were 246M shares outstanding and 250M shares authorized before the R/S. Obviously 4M shares is not enough to accommodate the 35M pre-R/S shares exercised by the warrant holders.
A reverse split is damaging to investors because it dilutes their percentage ownership and reduces the number of shares they hold even though it increases the price of those shares.
There have been several explanations to this. They're on the board within the last 2 days.
Right, that's the question.
Based on Kidrin's history, I would be surprised if this move was to facilitate further funding. With S&G, the funding needed is minimal. He keeps expenses low.
I wouldn't consider anything WDDD has done to this point to be excessive. Funding as needed. Hudson Bay was still miles worse than anything this past week.
I thought about that as well - it seemed like a R/S was the plan from the beginning rather than continuing authorizing and issuing shares in the pennies.
Looks like Kidrin wants the composition more similar to MRMD.
that its survival is 100% dependent on judges and juries
It seems to me that Worlds does not want to do RS now is because RS is not in its best interest at this time, and the fact that Worlds was FORCED to do the RS in itself is a VERY BAD thing.
Just a few points after reading all of the posts today:
1) I was also curious if the RS was pre-warrant or post-warrant (not 100% familiar with the language of warrants with regards to RS) but the fact that the warrants were already converted unequivocally means those shares recently converted will also be diluted. So there's no additional dilution from the RS.
2) For anyone saying they'll just authorize and issue 200M more shares....come on guys. With a new PPS of around .25 or .30, you're worried about a company with 93k of assets and liabilities suddenly needing $60M? I'm sorry but this talk is ridiculous. WDDD now has ~6M of equity from MRMD and STATED ITSELF in a press release they plan to fund operations with those shares, and it's been in the MRMD filings for over 4 years that WDDD will sell those shares. With the ~1M from the warrants, ~6M from the MRMD, 1.5M of notes deferred/expired, and S&G contingency, there is absolutely no need for more financing short-term.
3) For the worry that WDDD will simply continue doing R/S to issue additional shares - read the explanation above. Why would WDDD ever needs hundreds of millions?
4) For anyone saying they're scared of Kidrin taking advantage....that's not how that works. The only ones making out on this deal are the warrant holders. Kidrin owns 5 or 6M shares and besides his salary, I believe that's the only way he makes money from WDDD. His wealth in WDDD is directly tied to the WDDD equity he owns. Suggesting he would tank PPS to take advantage of shareholders and make himself rich doesn't make any sense, and isn't legal.
5) The warrant holders, as specified many times, are long-term shareholders of WDDD. Suggesting they would dump their shares into market and tank PPS goes against all actions of the company and its main shareholders in its history.
6) The R/S was done for a specific reason....the company was clearly doing fine with the 246M and wasn't authorizing more. But the warrants (for cash needed before the MRMD runup) made that impossible to do without an RS.
From DataStream:
The warrants are issued at the rs number of shares like every other shareholder.
Yep - I've yet to hear an argument that an R/S is bad for a stock besides other cases where it hurt PPS.
Theoretically there's the 7M shares of dilution and nothing else changes. Only catalysts ahead. In the grand scheme of things, with all the event-free months we've endured, March is massive for WDDD.
Given that the warrants would eventually be exercised when WDDD hit say, anything past .05 or .06, and that WDDD had 246M shares outstanding and 250M shares authorized, a reverse split was a guarantee at some point. All that matters is the reaction.
And please no one try to claim you saw this coming - I've been following this board for the last year and not one person mention a reverse split connected to warrants. I had only seen warrants mentioned a few times - by DataStream.
Essentially, this was the perfect time for all of this to happen. With the WiFi case being a free catalyst with no harm going our way, and a court date, worst case scenario we even out from all of this.
But leading up to the March court date should only be upward pressure.
Worst-case scenario would have been a run-up for no reason, followed by triggering of warrants, R/S, and no catalysts.
We have our catalysts.
I was confused about this as well.
There were 246M shares outstanding - a 5/1 reverse puts the number at 49.2M. Those converted shares from the warrants adds 7M post-RS shares (35M pre-RS, 7M post-RS). So we now theoretically have:
49.2M shares at 0.335 per share.
Add in the additional 7M from the warrants = 56.2M shares outstanding.
The 16M market cap with 56.2M shares outstanding gets us to a PPS of 0.285.
Puts us in the high .05s if we're talking about the old prices.
If the market at all factored in the warrants already, and an RS that looking back, was mandatory given the number of shares authorized and outstanding, there should theoretically be minimal impact on the stock price.
Dilution was not coming unless the price increased, triggering the warrants, and the R/S. If we stayed in the .03s or .04s, the warrant holders wouldn't have converted at that point. The shares of MRMD combined with the deferred financing WDDD was receiving were enough to cover all costs.
So it's not a matter of if the warrants were to be exercised and R/S was to come, it was when.
It all makes sense looking back.
Awesome - thanks. Honestly just had a panic moment there.
PatentPlays or DataStream need to chime in here. The biggest issue here is whether or not the warrant shares are pre- or post-RS. I am not an expert in this field and can't pretend to know what I'm talking about.
But if the warrant shares are exercised post-RS, that is deadly for WDDD PPS.
The RS puts WDDD at 50M shares. Another 35M shares equals 85M.
Current market cap is 17M.
You do the math. Roughly 50%. However that just takes us to the .035 range.
If the warrant shares are also split, I see no harm. The 35M shares were already included within the share price imo.
Absolutely deadly move by Kidrin depending on how this shakes out. Can't see how that would be possible though.
Would love for someone else to chime in.
What happened to Louis Desy Jr, the faux lawyer who frequented WDDD boards?
Sell his shares? Looks like he hasn't posted since the IPR ruling.
Agreed - we all know one of the warrant holders is Morris Smith, formerly of Fidelity Magellan Fund.
Does anyone seriously think a former head of one of the largest funds in the world is selling his penny stock shares for 100% returns with upcoming court dates and billions at stake?
Ludicrous - 100% agreed, there is plenty of money on the table. A guy like Morris Smith laughs at a $1M return (assuming he was the ONLY warrant holder, 35M shares * .035 profit) when tens of millions are on the table for simply waiting a few months.
I incorrectly predicted a run from .085 to .10 a few weeks ago - there was a lot of pressure building on the bid/ask and buys were heavily outweighing sells even all the way up to .08s. You figure that as pressure builds for a few days and the MMs hold the price steady, eventually it will pop and continue to run. Seemed we needed another week or so of pressure but it never came and buying came to a bit of a halt.
Regardless, volume has died off to 500k/day for the last 7 trading days....a sign that price movement has stopped. Each run typically sees a spike in price, and then a lull in trading and price movement for a week or so after the end of the runup and then a standstill. Looks like we're at that point.
I took a lot of profit moving my shares around and gaining free ones along the way (added 10% of my portfolio without spending a penny) but it looks like it'll be harder to do that in the coming days with the bid/ask tightening up and volume falling....but a run-up to 3/10/2018 looks likely.
My opinion....hold tight for the next 20 trading days.
WDDD did not sell any stake in merimed! It seems we were correct!
How long do you give it for warrant holders to shove this down to four cents again?
debated vehemently
That is one year's (projected) revenue....without taking into account treble damages.
I guess myself and White Coal were correct and we did read the 10Q and as we stated the company would dilute
Oh and to the other person saying “well duh they were in the money”, I would suggest looking up the terms of the warrants as they were in the money when I made the comment, they were priced very low
Take a look at when this stock made its run
Then look at the timing of the warrant news
I saw "Panel M" in the subject and almost **** myself. Lol. Thought maybe the panel had been released early.
MRMD up to $1.25 today.
Another posting on r/investing about it.
Just a note - it's not the CEO of Activision Blizzard who's leaving, it's the CEO of a division of ATVI that's about 30% of the company. Still significant, but important to note the distinction.
The company has long stated is has long-term visions to utilize its patents to litigate against other companies. Many posts dating back to 2013 have highlighted the types of companies that would be within WDDD's radar (Disney being one).
HOWEVER, Worlds cannot do so without patents. IMO an investor should not be thinking about other infringers until we learn more of what the courts consider WDDD's patents to be.
Respectfully, I think the point is that "loan shark" is a completely inappropriate term for the warrantholders given their track record and completely ethical/legal behavior thus far.
Warrantholders who provide funding early on to pink sheets are typically compensated as such. They made a good investing decision. The public has known how many warrants, shares, etc. have been available for a long time. I doubt this has much impact on the market.
And given that 2M has become normal for a WDDD trading day, it's hard to see the warrant holders - who are also long in WDDD - doing anything that would drive the PPS down.
Right on board with you there. Recently deposited funds ready for anything in the low 7s or even 6s if that happens.