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The pps were down because of massive nake shorting prior to debt conversion.
Why was this a surprise to you? The financials were the same as always (since revenues from LifeStem are still not present).
They have until wednesday (5 working days after the previous deadline).
I bet that the majority of otc stock you have ever traded didn't have 20M$ in revenues at all.
A lot of Nasdaq companies don't have 20M$ revenues as well!
But did you look at the balance sheet? This company has currently the market cap of a shell and just 200M shares issued, while having more than 1M$ in revenues, a net income and a cash flow that is going to become positive as soon as a few revenues from the LifeStem operations come in (and they already started cell collection, as advertised on magazines).
The otc is full of pos trading at a 100 times bigger market cap.
That's it for how every stock on the grey... sad but true.
It's dead money until this gets to and ordered market again.
This stock is still on the greys.
Once it will begin trading again on the pinks (once they'll get a mm supporting it and filing the right form to the sec) the price will be the closing price on the greys, and not the closing price before the halt.
No it wasn't. Nice catch.
It all depends on the new OS.
If still on the greys I would not hold my breathe for tomorrow.
8.5$ for me...
Private placement are a lot common on pennyland for relatively big investors (every reporting penny I have held did private placements in the past according to their balance sheets).
For an experiment try buying 2K$ worth of shares at the ask and you'll see the price going to 0.02.
Usually when you privately place your shares you do so for a lot more than a couple thousand bucks. Try buying 50K bucks equivalent of shares on the open market, or 100K bucks equivalent of shares on the open market, and you'll see the price skyrocket to dime land.
No, they cannot get al they want for a penny a share on the open market.
With just a thousand bucks of buys they would have to pay at least 2 cents a share, and with an hundred thousands they may finish to pay much, much more.
It would have been nice to see more details about the placement... for example what price investors were willing to pay so that we could have an idea of what we can expect from our stock.
Can you post some data? I have no access to knobias. Thanks.
No I didn't. Where did you found this? Thanks.
With no news other than rumors it can go as high as 0.1, but if a real reverse merger does happen then it may go much higher (usually company go higher than a 10M$ market cap, which would be 0.4$ a share for ITRM).
FCCN had an already high market cap, up to 100x the market cap of a typical shell, plus it merged with a company in really bad financial position, that's why it cannot run.
I really don't think that people older than 40 years are all sick!!!
This is the poorer bashing attempt I have ever seen.
Given the current financial position this stock is very much undervalued even with 0 revenues from the cell stem business... go figure.
It's normal trading on the grey sheets.
No one from the company ever said that there was an affiliation with the China company, so I don't see the scam.
It's simple:
1) the shares sold by DOMS are money gathered by the company, ie. there's added value into the company financials so the fundamentals become better
2) the market cap of the company is already at least 10 times lower than what it should be
3) DOMS is selling shares being careful to let this stock remain at this current levels (buying back some shares to raise the stock price after the big sells)
CLBE has not an OS bigger than the AS. But in fact if in May 2008 they have not payed for the convertible and the stock price is the same of now then they have to rise the AS.
At this point I've no idea at all... it could either be for a reverse merger in the making, or for moving the shell to a country more public companies friendly, ie. more teasing for companies that are looking for a shell to buy.
'Official' (not naked) short data on this stock is available on some website I don't remember.
Anyway if they dilute like they are doing now and use the money to pay for debts then they wont enter into death spiral financing. That's why I don't mind current dilution very much. I expect this will end up having a 300M OS when the debt will be payed.
Of course 3 years for the debentures was a short time frame but they expected to start making 3M$ per year from LifeStem beginning in August 2006, in reality they are only starting right now.
The good things about this shell are that they are not pumping, nor diluting, they are clean (they even have a cpa and release a balance sheet every year) and they currently have a very low market cap of just 250K$ (I don't think it can go much lower than this). It's only a matter of waiting, and it's a matter of dead funds until the next move.
A shell like FCCN went as high as a 30M$ market cap while merging with a company which is discovered to be nearly bankrupt... LFZA/USSE went as high as a 700M$ market cap (that would only be a dream).
Cd holders could convert only after May 2008, and they could convert at the price in May 2008: the lesser the price, the more shares they get; then it's not sure they would sell that shares, but they can overtake the company, that's why cd holders often short the stock before the conversion date, to get more shares. I think that CLBE is diluting to repay at least some of the convertibles before the due date, to reduce the amount of shares the cd holders shall get.
Anyway it's not sure at all they will dilute for all the debts until May 2008: they could only dilute for some, or they could even renegotiate the debt, so everything can happen, and saying that they'll continue to sell shares until May it's only a bet. Of course I don't expect the stock price to climb much before May because of both the convertibles and the fact that we'll see the first revenues from LifeStem starting in the 10K which is due next March and then in the 10Q due in May, but again the markets often precede good news, and given the fact that this is still severely undervalued a double or triple in share price before May could always be the case.
290M was the maximum dilution to pay for convertibles with the stock price set at the time of the last 10Q (which was similar to the current stock price). They don't have 290M authorized, yet. You can issue more cd than the a/s because cd are issued considering the stock price at the time of the issuing, and in 2005 the stock price of CLBE was much higher. There are stocks with an as of just 500M shares and cd of billions of shares.
Of course it's only my opinion that it is the company diluting shares through DOMS to pay the convertible debentures (which is a good thing to get rid of convertibles which always kill the company stock). it may be the debenture holders that selling shares themselves. We'll see for sure by march in the 10K (next 10Q is for the period ending September, 30). Anyway the transfer agent is Transfer Online, Inc. Portland
We are already discussing this... those shares are coming from dilution to pay the convertible debentures.
You can check the 10Q for the convertible and insiders holdings.
Anyway the convertible is 706,059 + 1,547,290 of derivative liability (the interests) + 142,236 of warrant liability, for a total of 2.4M$
It is due in May 2008 and its hold by four accredited investors.
As regards management and institutions, here's the only site that has some data:
http://moneycentral.msn.com/ownership?Symbol=clbe
Anyway you should check financials yourself on edgard online to get a better idea.
Finally some buying action today.
Stem cells are stored in something like a 'freezer', and 'potentially' they can last there in a 'usable' state forever.
The man who used his children stem cells in realty may have used their cord blood stem cells (which can be used because they are still 'undifferentiated', that's why you cannot use other adult stem cells from your children), which were frozen during their birth just as like CLBE would froze your own stem cells.
CLBE would gather, among others, stem cells from your own fat tissue (for which they proposed a patent for approval), which are somewhat powerful: http://www.medicalnewstoday.com/articles/63649.php
If you have a desease like HIV or other degenerative desease your stem cells may not be suitable for traitement at all, that's why you'd need to store them when you are healthy.
Nope, you are very wrong. You cannot use your stem cells when you are sick, and you absolutely cannot use stem cells from your relatives, they are not a perfect cells match. That's not the same thing, and I don't know where you read this.
Do you know that in Europe there are already services for adult stem cells banking and for example many famous sports men are already banking their stem cells?
CLBE didn't get any revenues from stem cells for the simple fact that they have still not started their banking services despite what they told last year. They are one year late and they are starting stem cells banking this month.
Moreover you should also look at neostem (on the amex), which is in the same field, with just a much worse balance sheet and much more debts than clbe, but with a market cap which is 12 times bigger than CLBE just because they are putting out more prs to tease investors.
1) as many research projects point out, adult stem cells may be as capable as embryonic stem cells (not fresh, embryonic). Moreover adult stem cells is where the money is going because in many countries in the world you cannot even do research on embryonic stem cells.
2) dna has nothing to do with stem cells. You have to use your own stem cells.
Insiders are not buying the stock because they simply get payed in stock: the fact that they don't sell the shares they are payed with is a good sign, because they are not working for free so they must have expectations on their company.
The stock is down for one fundamental reason: they don't issue many news so in a market like the otcbb where only pump and dumps gather the interest of investors this stock has problems.
The convertible debenture is yet another reason why this stock is down, anyway their total debts are still very low compared to the majority of the companies trading in the otcbb.
The more they spend money that way, the more investors they can get, the more money they can rise with less dilution. I think that it would be smart.
Market cap has nothing to do with dilution. Market cap is already takes into account dilution since it's calculated on the total number of outstanding shares. I tink that the difference is that NeoStem spent a lot of money promoting themselves in the investor community.
OS should already be 160M now.
I'm pretty sure they are raising funds (ie diluting) either to pay for convertibles or for new investments.