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"In all my years, this is only the 2nd or 3rd time I've seen a strong finish one day only to open with a gap down without a nice recovery."
I'm kind of suprised that you say that, because I've seen precisely that pattern with every pump and dump stock I've ever seen.
But, hey,let's be honest. You know that what you said isn't true. Every trader knows that. Every forensic investigator of likely scam stocks knows that.
It's only the marks who don't know that.
Unless someone warns them, of course.
Marks, consider yourselves warned. It's P&D marked large.
If you're not a big ass tough trader, then you're the target.
Buyer beware.
Market maker manipulation?
Stochastics?
ADX?
Temporary pull back?
Huge buying opportunity?
Just like every other pump and dump stock MB when the day traders get there.
Please, whoever's paying them, make it stop.
TIA.
PS This MB is identical to the FASC MB with the drowning out of any half-thoughtful or critical post with this pseudo-trader lingo and false optimism. I wonder why?
A vindication for those of us who pushed for such action in the face of insults and opposition from some of the management apologists.
Next I hope to hear that Biophan have cancelled their request for the MegaDilution to 800 million shares (the announcement about acquisitions is somewhat worrying - these guys should be focusing on the one thing they appear to have, the Myotech CSS, rather than on buying somebody else's cast offs. After all, they've already moved enough cash off the balance sheet into private individuals' and entities' hands).
And don't forget the toxic financiers are used to making a few hundreds of thousands of dollars from this stock every month. Now they have several more million shares to play with, they'll be looking to that old classic, the pump 'n dump routine to make up for the loss of guaranteed shorting revenue.
Still, on the whole, I'm sure you're glad that we asked some tough questions of management that could only be answered in one way.
Now they can prove they're a serious business. Or not, as the case may be.
I'm aware that you have board rules.
It's just that I couldn't for the life of me see how adsin1234's post concerning the payment of shares to the company in question contravened any of those rules.
I also note that the rule that forbids "to the moon" pumping is more honored in the breach than in the observance, but none of those type of posts ever seem to get deleted.
Looks like adsin1234 hit a raw nerve or three with his revelation about the three quarters of a million shares that were paid for the website design.
And with several of his other posts that were deleted.
It's funny that in reality "to the moon" pumping is de rigeur, rather than frowned upon here, whereas any reasonably critical view is deleted.
I wonder who is so nervous and why?
Answers on an e-postcard please to enforcement@sec.gov
"You can always lose 100% of whatever you invest."
I'm not sure the word "invest" should be used in connexion with a purchase of Biophan stock.
It's a financial oxymoron.
At least, that's what BIPH's "management" must think, or else they'd be demonstrating their confidence in all the wonderful things that some folk claim to have spotted in their 10Qs and 10K s by buying BIPH shares, using either their own money, or the company's money.
Until they do, I can't see any earthly reason why anyone else would be tempted to do so (except as a trading opportunity, and I suspect that's riskier than you might think).
Quite right, palacian, I did get confused there, by typing in PRW when I meant BIPH. I'm not the first person to have made that particular Freudian slip, and cognoscenti of likely scam stock candidates will know exactly why. Sorry all the same.
What my post should have said is:
"Darn tootin' that's some impressive investing.
Now imagine BIPH insiders doing the same thing with $10k to $100k every day for the next few months, preferably with the company's money and then retiring those shares. Even using their own money, the odd $1,000 here or there every couple of days, and putting it aside into a 401k or an IRA would be a huge statement of confidence.
The pps would shoot up, the number of shares they'd have to issue to their "sewer rat" associates would decline dramatically (even if they didn't use those shares to pay them off with) and they wouldn't have to issue the extra 625 million shares they are so desperate to get approved.
Why don't they? They sure as heck have got the money, and they don't seem to be doing anything else with it in any kind of hurry.
Go figure."
Now perhaps you could explain why this "same old buy back bs" as you rather impolitely describe it, is not a better strategy than diluting the existing shareholder base into oblivion while blowing the pps down below fractions of a penny as a obvious consequence of the 357% dilution proposed by the current "management".
PS, as somebody has already noted today, and as I have noted previously, Messrs Weiner and Lanzafame go a long way back together. They worked together at TI and at Natural Nano, and Weiner brought Lanzafame into Biophan. I'm afraid the old three envelope trick (ask me if you don't know the story) has no credibility here.
"look at that spotter somebody plunked down
$2000 for some biph @ $.011. wow."
Darn tootin' that's some impressive investing.
Now imagine PRW insiders doing the same thing with $10k to $100k every day for the next few months, preferably with the company's money and then retiring those shares. Even using their own money, the odd $1,000 here or there every couple of days, and putting it aside into a 401k or an IRA would be a huge statement of confidence.
The pps would shoot up, the number of shares they'd have to issue to their "sewer rat" associates would decline dramatically (even if they didn't use those shares to pay them off with) and they wouldn't have to issue the extra 625 million shares they are so desperate to get approved.
Why don't they? They sure as heck have got the money, and they don't seem to be doing anything else with it in any kind of hurry.
Go figure.
"just using accurate looking numbers
does not make them accurate."
And just implying that they are inaccurate without showing in what respect you believe they are inaccurate or showing specifically how they are inaccurate doesn't make them inaccurate.
And yet if they are inaccurate then you could surely demonstrate that.
The fact that you don't even make the attempt speaks volumes.
"jazzer has a good response for you."
And I think you'll find that Jazzer's response in no way even tried to gainsay the numbers I presented.
Fact: as BIPH issues more shares to reward their "sewer rat" associates, the market cap will be spread among more shares and the pps will decline. Then they'll have to issue yet more shares the next time round.
Fact: they could stop the rot by buying their own shares on the open market, and using those as payment for the "sewer rats".
"don't lie to me"
Never have done, and I don't intend to start now.
"interestingly, you use a lot of impressive numbers which
reminds me of something my dad said. "if you want folks
to believe you even if you are lieing, use fractions.
everyone will think that you know what you are talking
about.""
Yeah, sorry about that. I just have this habit of trying to underpin the points I make with facts and data.
I can see how that would unsettle some folk, but it's just a thing I do. Can't help it.
Tell you what, though. Rather than imply I'm "lieing" (a bit like lying, I guess) why not take me through where it is my numbers are wrong, and show why the assumption that BIPH's pps will hold even after a few more tens of millions of shares have been issued to BIPH's "sewer rat" cronies, is not as ridiculous as I think it seems.
That would be a bit more convincing as an argument than an innate, or indeed inherited, distrust of those who would back their arguments with quantitative data.
TIA.
"several folks have calculated that to fully sate the
rats will take closer to 300m than 625m shares. please
get your facts straight."
I only saw one such calculation here, and it was based on something allegedly said by John Lanzafame.
That calculation was of course deeply flawed because it assumes that the pps will remain at 1 cent throughout this lengthy process of death by dilution.
Logically, that wouldn't be the case.
Let's assume the next three payments to the "sewer rats" from the beginning of October to the end of the year requires 17.5 million shares, just to give an approximately correct round number.
That represents dilution of 10% because it would take the float up from 175 million shares to 202.5 million. The effect of that is to spread the market cap more thinly among those shares - each share would now only be worth 0.9 cents rather than the one cents the assumption required.
By the time 175 million more shares have been issued, the pps will be at .5 cents all other things being equal. The more astute of you will notice that means that even more shares need to be issued to pay the "sewer rats" next interest payment demand. In that fashion, it won't really take long beofre all those 800 million shares are out there.
That's the wonder of highly toxic financing.
"your supposed good idea of a buy back is pure hogwash.
this too has been explained that buying biph shares
high inorder to feed them to the rats at a discount
is very bad financing. a loser."
With respect, nothing could be worse than the current plan of feeding BIPH's "sewer rat" buddies more and more shares, diluting the existing shareholders, lowering the pps even more and allowing Iriquois unlimited and entirely legal short selling opportunities.
I must say that I find it implausible in the extreme that Iriquois refuse payment in good old greenbacks and insist on shares, as Ms. Hotchkiss has apparently claimed, and immediately bear the market risk for those shares.
If that is the case, however, the use of the $5.6 million that sat on BIPH's balance sheet at the time of the last 10k would be quite sensibly employed on a share buyback.
First of all, it would obviate the need for any more dilution, because they would mop up existing shares. If they bought enough for a few months' worth of payments at one go, they would actually reverse the dilution that's happened over the past few months and reduce the number of shares outstanding considerably. If this stock is as undervalued as some folk claimed, it's the best possible use of that money.
That in turn would push up the price per share, both by this reduction in shares outstanding, but also by the confidence that Biophan's management would be demonstrating in their future by investing in their own stock.
A higher pps would mean fewer shares (even if discounted) to be paid to Iriquois at the beginning of each month, so that's a good thing too.
In fact, the strategy I suggest would turn a vicious toxic cycle into a virtuous cycle and would be the beginning of a solution the the so-called "sewer rat" problem.
I say "so-called" because BIPH show no sign of having a plan, or even wanting to have a plan to solve the problem. Instead they want to feed the sewer rat and increase the authorized float by 357%.
Which is odd.
"the rest of your post is simply your opinion and you are
welcome to it."
Most kind of you. I would simply remark that my opinions historically have been backed by facts and have led to predictions that have proven to be remarkably accurate. The same cannot be said for those who have supported this company through thick and thin and continue to do so even when it is manifestly obvious that the "management" are acting in a way directly contrary to the ordinary retail shareholders' interests.
Which is also odd.
I see you newbie guys are following the same script as the FASC adherents, with the market makers' manipulation, evil naked shorts clearly being responsible for the steady fall of the stock, but that the charts are screaming at you to buy, and that only good things are going to happen to Biophan.
Well, guess what?
You don't need to look beyond the facts that these guys have set up an extraordinarily toxic finance deal, which they're looking to fuel by issuing another 625 million shares on top of the existng float (that alone should reduce pps down to less than a third of a penny - just imagine how many shares they'll issue to their "sewer rat" buddies every month when that happens), and that they like to transfer any cash on BIPH's books to private hands such as the mysterious private owners of Myotech and the less mysterious owners of Technology Innovations.
I can only think that's why they won't use their cash to buy back shares and avoid MegaDilution.
The other factor is that while they talk a great game, the only real prospect they have left, the Myotech CSS, is still at least two years away from commercialiaztion, just as it has been for the past several years, and there's zero news on human studies with the device.
There's a reason this stock has fallen by well over 99% in the past couple of years, and it's called the management, past and present, of this sorry-looking money pit.
Not sure what you're getting so upset about. You seem to think you proved some kind of point.
Here's the thing:
"This proposal was adjourned until December 1, 2008 (subject for further adjournment by those attending the reconvened meeting) or SUCH EARLIER DATE as the Company obtains sufficient votes to approve this proposal." [Note the UPPER CASE]
In other words as soon as Biophan gets a simple majority, it will close the vote without any requirement for a further meeting.
Given that we know from the DEF 14A that they are desperate to increase the float by 357% to 800 million shares, and that they can issue up to 75 million shares in the meantime anyway (which you might have hoped would be enough) we can be raesonably confident they won't actually need to hold the reconvened meeting.
Clear enough, with or witout EXPLANATORY NOTES, I would have thought.
You chaps need to deal with the real issues, such as quite why Biophan are so keen to issue these extra 625 million shares (after all, even you seem to think it's not a great idea) when they have $5.6 million in cash they could use in various creative ways to get out from under these so-called sewer rats.
I think we can all agree the only people who will benefit from this proposed MegaDilution are the sewer rats and those who are short on this stock (one and the same, I suspect) - so why are BIPH so keen to wreak this havoc on their long-suffering shareholders, and why don't you newbies address this particular problem?
And are you seriously proposing that this dilution won't happen? Because if so I have a particularly attractive bridge that you might want to consider purchasing from me.
PS You probably only need to post one reply with the same content, unless of course you're trying to bury my posts. TIA.
In the interests of maintaining my rep for "full-on negativity" (which incidentally has also led to me being pretty much spot on with all my predictions for BIPH so far) let me point out a couple of things about this part of the "Current Report":
"At the Company’s annual shareholder meeting on September 12, 2008, shareholders were asked to approve a proposal to amend the Company’s Articles of Incorporation to increase the number of authorized shares of common stock to 800,000,000. This proposal was adjourned until December 1, 2008 (subject for further adjournment by those attending the reconvened meeting) or such earlier date as the Company obtains sufficient votes to approve this proposal."
Will they get approval?
We are led to understand from those who attended the Special Meeting that the vote was in favor of the issuing of the extra 625 million shares, but a simple majority of outstanding shares was not received. The current adjournment is to allow them to garner the few million extra shares they need to push the vote over the top into a simple majority.
They seem pretty confident they'll get these votes, and I believe them.
Why do I believe them?
Because at the beginning of October and November, and at any point in between should they choose so to do, Mr Lanzafame and his colleagues will be issuing tens of millions of shares to their "sewer rat" friends at Iriquois. As soon as those common shares are issued they become eligible to be counted in the vote.
Given that there are currently 175 million common shares out there, and the current authorized float is 250 million, they have up to 75 million shares they can issue in order to gain that majority they claim to "need".
Guess which way these shares will be voted, before they get sold off at rock bottom prices, just as they have been for the past several months (as those recently arrived chaps who are chartologists will doubtless have spotted)?
In other words, it's not a question of "if" they get approval, it's a question of "when". That's because they can literally issue the votes they need to get a simple majority.
Does anyone seriously think that this is not what will happen?
I still don't understand why Biophan don't buy their own shares in the open market, and use those to pay off the "sewer rats", while simultaneously indicating to the loyal retail shareholders that they do believe in this company.
If we're honest, we have to admit that the current plan for MegaDilution of 357% can only benefit two groups of people - the sewer rats and those who are short of this stock.
I believe those "two" groups are actually pretty much the same, but I'm curious as to why Biophan panders to their need rather than to the need of loyal shareholders such as cyberbub0 or palacian.
There's only one reason I can think of for that.
Am I wrong, and if so, why?
"We ALL got it! YES financing sucks! Sooner it gets resolved the better! WE GOT IT!!! Sheeeeesh! MBD"
If that's the case, why do you continue to insist that Biophan is a screaming buy without posting a single specific reason why that should be?
We have heard, albeit from extremely unreliable sources, that BIPH are part way to getting approval to issue another 625 million shares on top of the current float specifically in order to feed the "sewer rat". We know that Myotech CSS remains, as ever, 24-36 months from introduction, and we have had no news on human studies for this device.
The fnancing in place was put there when Mr. Lanzafame was a Director and Weiner was CEO. You and he can't pretend he was nothing to do with it. And they have done nothing to resolve it - quite the contrary.
So why would anyone want to invest in BIPH?
(Trading for those with an exquisite sense of timing and more than their fair share of luck is a different matter, as I've always said. Just don't be surprised when you get stuck with a bunch of shares you have to offload at a loss or are literally worthless. It will happen.)
As for reading the future of this stock in the charts, anyone who has studied the empirical base for these things knows that the evidence in favor of the accuracy of charting is equivocal (at best)for larger more liquid stocks.
It's beyond doubt that charts are irrelevant for penny stocks with no commercial operations.
The major use for charts, as far as I can see, is that they provide a flimsy justification for mo-mo traders to pump penny stocks on MBs such as this one.
How many days of this "the charts scream buy" and "retail/market makers/short sellers are obviously manipulating the pps" nonsense are we going to get before this latest pump and dump crowd moves on, I wonder?
The facts:
Biophan's management are allegedly well on their way to getting the float increased to 800 million shares, representing MegaDilution of 357%.
We know from past history and the DEF 14A filing that they will not hesitate to use these shares to pay the "sewer rats", even though they have $5.6 million cash they couild buy shares with in the open market, obviating the need for further dilution and increasing the value of the outstanding shares at a stroke.
No further news on Myotech CSS, except Ms. Hotchkiss' comment in a recent shareholder communication that it remains "24-36 months from commercialization", as it has been for the past several years.
Something not quite right here.
I wonder what it is?
"Tech, I wouldn't be surprised if they are paid pumps from Iroquois. Remember, they still get their shares at the low of the month so they want price fluctuation."
Correct. You can tell that by the way they counter every reasonable attempt to engage with porper debate by personalizing the post or turning to gross generalitues.
Other questions are, what part is MBD playing in this, and why should anyone believe that the days of dilution and pps decline are over, when even BIPH's supporters claim they're half way to getting the 800 million shares the "sewer rats" want so badly?
"Who's out there watching us?"
I'm led to believe that SEC and a few other interested parties are among those "watching" the activities of this company, this MB and some of its posters.
Still waiting for one or more specific reason(s) why Biophan longs should believe this surfeit of excitement and enthusiasm that's been demonstrated here since the Special Meeting on Friday, even though I've asked very nicely a number of times.
According to one (extremely unreliable, it must be said) source, BIPH's management are already part way to gaining approval for their MegaDilution proposal, and I think we can all guess what another 625 million common shares will do to the BIPH pps.
I'm also intrigued by the suggestion that Biophan's management is somehow new: John Lanzafame is a long-time associate of (the now much-reviled, but once hero-worshipped) Michael Weiner, at both TI and Natural Nano. The fact Mr. Lanzafame drew down a $100,000 bonus last year, when BIPH continued its lack of progress on Myotech CSS while its pps went to hell in a handbasket certainly suggests same old, same old to me.
Why am I here?
Gee, willikers, MBD, you haven't been paying attention when I've answered that question a myriad times before.
Here comes the answer yet again. You'd better bookmark it, so you don't need to keep asking it.
I have several hobbies. One of my hobbies is to examine likely candidates for scam stocks. I enjoy the challenge of combing through their SEC filings, looking at their financials using various forensic tools like Benford's law, seeing who's supporting them on MBs
(there's a hard core of posters who post vociferously on such stocks, using a variety of aliases, but clearly the same people. They can never actually post anything positive about the stock they're promoting, just attack those who are more discerning about the stock in question and post positive statements with no logical or empirical arguments)
and predicting their next moves - both the posters and the companies, that is.
The fact that I have had many messages from folk who've read my posts on MBs like those for Viragen, Aptheon, Pharmos, Natural Nano, Pro-Pharmaceuticals, Atlas Mining, Intrepid and Green Energy Resources who've thanked me for encouraging them to do due diligence that's saved them thousands of dollars is merely a pleasant side-effect. The less welcome threats from those who find the First Amendment of the Constitution an unwelcome and dangerous document are less welcome, but also less frequent and will not succeed.
Hope that answers your question.
Now, what was it specifically about the prospects for Biophan that make you so optimistic?
TIA.
BTW, as you probably know, I don't work for a hedge fund. If I did I would have been urging everyone to vote for the MegaDilution.
It has been claimed that the MegaDilution was not approved. If that's so, then let's hope Biophan's manamgement hear what their shareholders were saying to them, rather tha trying to hold the vote yet asgain, and doubtless spending another $50,000 in the process.
After all, that $50K would almost pay a month's worth of interest to the "sewer rats". Shouldn't that be the priority, together with actually advancing the Myotech CSS into clinical studies?
"It looks like the selling/dilution that's taken it from .20 - .30 range down to where its at now, has finally ended"
Hello!?
Today, unless I'm much mistaken, at the urging of cyberbub0 and others, the Special General Meeting authorized an increase in the outstanding float to 800 million shares.
The current number of issued shares is 175 million.
The new potential float represents 357% dilution (or MegaDilution, as I like to think of it) against the current float.
Biophan's management have shown that they would rather dilute their existing shareholders than use the $5.6 million cash they have on hand to service their interest payments - that was their admitted reason for requesting the extra 625 million shares - and therefore you can be 100% confident that they will use all of these newly minted shares over the coming weeks and months.
Therefore I think your belief that dilution is over in mistaken, and lacks any sensible rationale.
I await any convincing reason, just one, to substantiate the highly positive sentiments that have been expressed about Biophan's future on this message board this evening.
Frankly I'm amazed that, in the face of the facts, anybody can believe that the future for Biophan stock is anything other than dire, but I'd love to hear why anyone should think so.
TIA.
"did you attend todays meeting?"
No.
But any specific material information about Biophan's prospects and programs must be made publicly available to everybody, not just those who attended the meeting, if that's the implication of your question.
While Michael Weiner used to disregard Reg FD in his many private communications with private shareholders, I'm sure Margaret Russell would not allow a repetition of that sad state of affairs.
So, again, I ask, for what specific reasons are you, MBD and others so upbeat about BIPH's prospects, particularly given they now have carte blanche to megadilute by a further 357%?
TIA.
Where's the beef?
Lots and lots of optimism, and positive vibes.
But not a single reason given why that should be so.
If there was a quorum at today's SGM, then there will soon be 625 million more BIPH shares out there than currently.
The management get some more options and salary increases.
But I'll bet my bottom dollar that the Myotech CSS device remains "24-36 months from commercialization" (five years after it was a year or so away from being sold in the US), and that no dates or descriptions of human trials of this device have been committed to.
And I'm equally confident that the "sewer rats" will get paid in shares at the beginning of October, and then (or possibly before - now the SGM is over there's no need to keep the pps up any more) the pps will once again go into freefall.
So far I've been exactly right, and MBD, cyberbub0 et al have proven to be dead wrong in their unfounded optimism.
Anybody think it'll be different this time?
If so, I'd be interested to hear your specific reasons for that view.
TIA.
"please return to your hedge fund..."
I am not an employee of a hedge fund, nor associated in any way with such a fund and it's wrong of you to say I am.
However, I dare say you could accurately label the so-called "sewer rats" as hedgies, and I wonder why you and some others persistently avoid this reality.
"You intentionally obfuscate and mislead"
Not guilty. I have clarified something that you, no doubt unintentionally, omitted to mention.
That is, if you vote against the management proposals or register an abstention, the the effect will be to make it easier to for BIPH to achieve a quorum. There's no doubt which way the vote will go, because as I mentioned of the large numbers of shares that Weiner, Lanzafame and the "sewer rats" hold between them - but they don't hold enough for a quorum by themselves, just a majority.
So registering any intention is effectively a vote for the five proposals of BIPH's management, two of which - the 357% MegaDilution, and the incentive and remuneration scheme - are directly opposed to the interests of existing private retail shareholders.
"in America...voting is your civic and corporate responsibility...enough said."
When it comes to public office, I would certainly agree.
When however the effect of voting is to empower an incompetent (that's the charitable explanation) management of a company that you own part of to destroy the value of any BIPH shares you may hold while enriching the "sewer rats" even further, then I think your contention is mistaken.
I would further argue that's bad from not just a personal economic perspective, but also bad because it encourages fiscal irresponsibilty among your Board of Directors.
I also note that you have abandoned the rules of this particular MB, which call for a basic level of courtesy.
That's a shame.
If you vote your shares, your goose is cooked:
"Please vote your shares...especially those who have not yet done so and have the electronic option...if the company does not have a quorum (enough shares voted) the proxy will not be valid and will have to be rescheduled at considerable expense to the attendees and the company."
Please be aware that if there is a quorum, the result of the vote is a foregone conclusion. With so many shares in the hands of Messrs Weiner, Lanzafame and in the hands of the "sewer rats", the only way to stop the MegaDilution proposed by your sewer rat friendly "management" is to not vote your shares, not even to abstain, and hope there isn't a quorum.
That way the float has to stay at 250 million (which still allows another 75 nmillion shares to be issued) and your "management" will actually have to do some managing.
Maybe even start developing the Myotech CSS properly, so they can interest a bona fide partner.
Sadly, at the moment even a vote against dilution is a vote for dilution in effect.
And don't even get me started on the remuneration or incentive scheme, which is a crime against good corporate governance.
"Pursuant to the Amendment, we agreed to amend the Notes to provide that even if the we elect to make a monthly installment payment in cash, the holder will have the right to convert any portion of the Note into common stock of the Company and apply the number of shares the holder would have received had we elected to make payment in common stock."
All the more reason to buy shares on the open market, and then retire them to offset the ones that the "holder" insists on converting their cash into (as if they would, in any universe where money is the primary currency!).
I did notice that some of the "usual suspects" had gone into voluntary purdah for the past week or so, presumably to circle the wagons and get the company line after I pointed out that the monthly bloodbath could be avoided, and that existing shareholder value could be enhanced by the simple expedient of a share buy back.
After a week, I would have expected better than the rather unconvincing efforts to justify the monthly payments to the sewer rats and the extraordinary dilution proposed (from 175 million shares issued today to a proposed float of 800 million!)that have appeared on this MB and the IV MB.
As long as Biophan continue to issue new shares to the "sewer rats" you know they are working directly against the interests of the ordinary shareholder. At least if they offset these by buying on the open market they wouldn't need to dilute and request all these extra 625 million shares.
And let's be honest, they must be planning for the pps to decline by a very large amount if they think they're going to need another 625 million shares to sate the "sewer rats" with.
In the meantime the company spends $50,000, close to a monthly interest payment, to convince turkeys to vote for Thanksgiving.
What's wrong with this picture?
Voldemort2001.
"the rats get their payment shares at a discount to the
market, which leads me to believe that to follow your
suggestion might be the equivalent of buying high and
selling low. not smart."
Heavens to Murgatroyd, palacian, on the question of ways to deal with the "sewer rats", there's surely a ranking of ways that are best for the existing common shareholder of Biophan. I would suggest these are:
1) Pay off the the "sewer rats" with cash. While Ms. Hotchkiss has suggested this is not possible, the DEF 14A filed last month seems to leave this possibility open:
"the Company may not have enough shares of Common Stock authorized and available for registration to permit the full exercise of all issued and outstanding warrants or the full conversion of convertible instruments currently outstanding or may have to pay current interest on its Senior Secured Amortizing Convertible Notes in cash, rather than by delivering Common Stock"
The filing goes on to argue that BIPH prefers to dilute its shareholders by a further 357% and have a mass sell-off at the beginning of every month, because:
"it allows the Company to conserve its cash for corporate purposes."
The question arises, precisely what "corporate purposes"? According to the last 10Q, they still had $5.6 million of the Medtronic firesale money on hand. That should be enough to pay the interest on the debt in cash and progress the Myotech CSS development program (which still remains 24-36 months away!)
2) If it is true, as Ms. Hotchkiss has claimed, that BIPH have to pay the "sewer rats" in warrants and/or discounted shares, then I adhere to my suggestion that it would be better for BIPH's shareholders and indeed for BIPH's integrity, if it were to buy these shares back on the open market, and use these to discharge their interest payment obligations.
It might be buying slightly higher than one is selling, but at the same time, share buy backs cause the pps to rise, hence reducing the number of warrants and discounted shares they would be "forced" to pay. Better they come from the existing float than at the expense of the existing shareholder, surely?
Most importantly they wouldn't have to dilute existing shareholders at all, and that in itself would be a good thing. They would be making a public statement of confidnce in the future of Biophan, which would be extremely significant.
3) The very worst option is to mint new shares and use those to attempt to pay off the interest debts.
When governments do this, it leads to hyper-inflation and eventual economic catastrophe, as I suspect you know.
When individuals use their credit cards to pay off other credit card bills, it leads to Skid Row.
When penny stock companies do this, it leads to MegaDilution and eventual bankruptcy.
It would be turkeys voting for Thanksgiveing for any existing BIPH shareholder to believe that allowing Biophan to issue another 625 million shares in addition to the 175 million already out there is good business practise. It's not only damaging, it's hugely unnecessary.
You ask:
"what's the telemarketing about? i hadn't heard."
As a shareholder, I would have expected you to read the DEF 14A more carefully (I missed it orginally too, but then I'm not a shareholder, and never will be). I heard about it from private emails, but when I looked at the DEF 14A, it's all there:
"Employees and agents of Morrow & Co., Inc. will solicit proxies, and will request beneficial owners of our Common Stock to instruct their banks, brokers, and other custodians, nominees and fiduciaries to deliver proxies, using the mail, telephone and other means of electronic communication. The fees and out-of-pocket expenses of Morrow & Co., Inc. are estimated to be approximately $50,000 and will be borne by the Company."
Interesting that $50,000 would be almost enough in itself to meet one of the monthly interest payments.
I think BIPH's management has a very strange sense of priorities just now, and I'm surprised that anyone could disagree, no matter what their opinions of my view of the company.
Voldemort2001
Another question that attendees at the AGM (or is it BGM, Biannual general Meeting) might want to ask is:
Who is paying for the current ring round of shareholders asking for them to entrust their proxy votes with management?
Is is Biophan themselves, in which case wouldn't they be better of spending that money on operational matters or paying off their debt? After all, we've established that they can buy shares on the open market and use them to pay off the "sewer rats", so the request for an increase in float to 800 million is strictly unnecessary, unless they actually want to disadvantage the private retail shareholder and feed the rats.
Or is it the "sewer rats" who are paying for this? If so, that's all you need to know about this company and for whose benefit it's being run.
In either case, it's interesting that they've had to resort to telemarketing to ensure they win the vote. Suggests it might be closer than one would imagine, even with all those shares in the hands of Mr. Lanzafame and his friends.
Don't be too surprised if the meeting gets cancelled at the very last moment.
More on Emerging Green Companies:
Like TIML, anything EGC says should be tempered by the fact that they are compensated for their opinion.
You might be tempted to ask why FASC doesn't market its machines anything like as aggressively, or (succeesfully on some occasions at least) as it does its stock.
I know I am.
"Emerging Green Companies may in some cases receive compensation from third parties in relation to the companies being profiled in its publications. Emerging Green Companies, its affiliates, associates, relatives and anyone associated with Emerging Green Companies in any manner reserves the right to either BUY or SELL shares in the profiled company's stock, either BEFORE the date of the profile, DURING the date of the profile or at ANY time after the date of the profile. Emerging Green Companies merely is providing information and is in no way or manner suggesting an investment in any company or investment opportunity. We may have an inherent conflict of interest by sending the newsletter or posting any online messages at the same time we may own stock in the same company or even have been paid compensation at the time of the profile/promotion."
"time will tell"
I rather think time has already told.
While some people are trying to drown out what that message was (and who can blame them - that's what they're paid to do, after all), the message from the past few years is actually pretty clear.
Out of interest, I wonder what Atlas Mining (ALMI) used their KDS for? It wasn't for processing halloysite clay as originally claimed, as ALMI's latest current report makes clear:
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6124845-866-27962&type=sect&TabIndex=2&companyid=69126&ppu=%252fdefault.aspx%253fcik%253d8328
I suspect it was mainly decorative. Decorative for the Press Releases of several companies, that is, including NNAN, ALMI and, of course, FASC.
A classic non sequiteur, from today's PR:
"The company has canceled plans to issue a stock dividend in 2008 in order to stem any further dilution."
In what planet in which universe does paying a dividend cause further dilution?
Here's a rough translation of the whole PR that I've based on previous GRGR PRs:
"The company is stony broke. You'll never actually see any evidence of the $1 million sales I claim on any audited document filed with SEC.
Note that we don't talk about profit, just sales, but don't enquire too closely why.
I know that in order to keep the gravy train running I should be paying you a dividend, but if I do, that's curtains for me.
So, I'm going to announce my intention of buying back shares. Again, don't ever ask for any evidence I've actually done so, because you won't get it.
Finally, buy more shares. I need your money and unless we get the pump, then my friends can't use the dump, or short the shares. Thanks, suckers.
Joe"
"Then, just watch what happens with contracts and revenue...."
Revenue from what, I wonder?
In the the Current Report(one of the best kept secrets ever, I can't help feeling) the company's own Special Committee comment:
"The Company is “uncertain . . . whether . . . commercially viable deposits or ‘reserves’ exist on any of our properties.”
After all these months, if they're not sure whether or not there is any halloysite at the Dragon Mine - or indeed any "commercially viable deposits" at ANY of their properties, that kind of tells you something.
Either they haven't looked very hard, or if there are viable deposits, they're pretty well hidden.
The fact that the pps hasn't collapsed further is, I freely confess, a source of mystery to me.
But given the company itself has admitted that its previous CEO and Chairman, Jake, orchestrated a multi-million dollar fraud, and even now they don't know whether they have any products to sell, then I suspect it can only be a matter of time. Even the mines, if as seems likely are unproductive, are worthless as real estate until they've been cleaned of any the current contamination.
Voldemort2001.
"Huge increase in short interest" is not particularly surprising if you read the Current Report:
http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6124845-866-27962&type=sect&TabIndex=2&companyid=69126&ppu=%252fdefault.aspx%253fcik%253d8328)
I'm afraid that anyone out there who was an Atlas Mining shareholder has been sorely deceived.
Here's a few snippets from that Current Report filed on August 20:
"The Company is “uncertain . . . whether . . . commercially viable deposits or ‘reserves’ exist on any of our properties.”
In other words, they still don't know whether or not the much vaunted halloysite clay actually exists at the Dragon Mine or not. I think I know what the likely final answer is.
"The Special Committee has determined that Mr. Jacobson was primarily responsible for the securities law violations set forth above."
Translation: Jake's a crook.
"During the period beginning in 2002 and ending in early 2006, approximately 30 million shares of Common Stock were issued in violation of the federal securities laws, including the registration provisions of Section 5 of the Securities Act of 1933. The violations involved (a) misuse of SEC Registration Form S-8, a short form registration form for compensatory issuances to certain officers, directors, employees and consultants (approximately 16 million shares were issued under Form S-8), (b) transfer of 9.9 million shares to related parties and affiliates that were purportedly sold under a Company Registration Statement on SEC Registration Form SB-2 and subsequent resales without compliance with the plan of distribution contained in the Company’s SB-2, and (c) grants of at least 2.8 million shares purportedly made pursuant to the exemption from registration set forth in Section 4(2) of the Securities Act."
This was not a small scale fraud, or just an oversight. It was a multimillion dollar fraud.
The previous "management" of this racket are toast. Now it's been formally declared to SEC, they have no choice but to take action. The only question is who else will fall into their web? Looks like Dumont was probably the only honest one there.
Sad but predictable.
In the meantime, I wonder exactly what the legendary KDS machine they bought from FASC was actually used for?
Clearly not for processing halloysite clay, as Atlas,FASC and Natural Nano all have claimed in their filings and PRs, anyway.
"The Company has continued it's commitment to invest in the Myotech Circulatory Support System (CSS) and entered into the next stage of development, with a sharpened focus on the acute resuscitation market segment, where there is a large patient population not adequately served by existing technologies."
Someone should tell Ms. Hotchkiss that possessive "its" is not apostrophized.
More significantly, I would point to this as a masterly example of how to say absolutely nothing while sounding positive.
"Entered into the next stage of development" - what does this mean exactly? What are the timelines for trials in human beings? Have they discussed the program for approval with FDA? Will it be a Class III device or a Class IIb device?
Similarly, what does this mean:
"with a sharpened focus on the acute resuscitation market segment"?
What were they focussed on before? The chronic resuscitation market!? How does this renewed focus translate into concrete action plans? And how does it affect their previously announced timings?
The PPA MoU is old news.
The only new news (except it's utterly utterly predictable), is that once again the timelines for Myotech CSS have once again been moved out:
"..... Myotech Circulatory Support System, which Biophan expects to be approved for sale in the US, in 24-30 months"
Surely time for another bonus payment of $100,000 and a pay rise for Mr. Lanzafame.
How much better a use of Biophan's cash that would be than using it to buy back BIPH shares on the open market and using those shares to pay off the "sewer rats" with!
Isn't there something wrong with this picture?
"biph can't is the short answer."
I didn't see anything in the forebearance agreement that prohibited BIPH from using shares it had bought on the open market to pay the monthly interest payments with.
Where does it say that?
Yes, BIPH may be forced to pay in shares, but that doesn't have to mean newly minted shares. There's 135 million shares out there already which they could buy, in the process enhance shareholder value, and then use to pay off their toxic finance frineds in shares.
Why don't they?
At least I was trying to be constructive.
I assume you think my idea is flawed.
May I ask how you think it is flawed, specifically?
Thanks in advance.
Voldemort2001
Good news for you long-suffering longs.
I have a relatively straightforward solution that will solve the sewer rat interest payment problem, avoid the 357% dilution that BIPH are asking you to endorse at the forthcoming AGM, and enhance shareholder value.
"How?" I hear you ask.
Simple. We all agree BIPH should have lots of cash left from the Medtronic IP firesale.
They should use that cash to buy BIPH shares on the open market (if necessary they can seek whatever approvals they need at the forthcoming AGM, although I suspect they probably don't need any extra authority).
Then they can use those shares to pay off the "sewer rats" interest payments.
If that pushes up the pps, no matter. After all, it just means they will have to give fewer shares to their toxic finance friends.
And for ordinary shareholders, this would obviously enhance the value of your shares, demonstrate the confidence of BIPH's management in the future of the company and obviate the need for any further dilution.
In fact, it seems so obvious I'm surprised it hasn't happened already. Still, I hope that now one of you chaps will propose it to Mr. Lanzafame.
Of course, if they don't proceed in this fashion, then one would be forced to conclude that they actually do want to deal with the sewer rats and that they don't give a rat's ass for the ordinary retail shareholder.
Or am I missing something?
It sems to have gone awfully quiet here.
I do hope there's not a problem.
Is there?
On another message board earlier today, this was posted:
"Today the company announced a $2.5 mil refinancing...the lenders must think they've got some product sales in the pipeline. Otherwise, they wouldn't be lending to this cash-free company. "
My reply was that it would be nice to think so, on behalf of you long-suffering shareholders.
However, it's just as likely, in fact more likely, that this "new" financing from well-known providers of finance that already gets them labelled as "sewer rats" by the apologists for Natural Nano, Biophan and the rest could be even worse news for retail shareholders.
Look at this critical excerpt from the PR again:
"establish a senior convertible debt financing of up to $2.5 million for NaturalNano"
Three dangerous words or phrases:
"Senior"
These guys are the head of the line when NNAN goes bankrupt and the assets get liquidated and the procdeeds allocated to the creditors. After them comes everybody else. Then at the bottom of the pile, you ordinary shareholders. Meaning that when the final curtain comes down, as it surely will, you get nothing.
"Convertible"
These will be floorless convertibles, aka toxic financing. What that means is that the providers of this finance can make money from short selling the stock repeatedly, using their convertibles as cover (this is entirely legal, although entirely immoral).
But wait! That's not all - it's actually in their interest to drive the pps down as low as possible, because then the convertibles will be repriced and the quantity awarded increased accordingly. Hence the announcement in the last 10Q that they're going to increase the authorized float, which will lead to enormous dilution. The potential earnings from these arbitrage opportunities for the toxic financiers far exceeds the money they lend to Natural Nano - which may not be $2.5 million anyway.
If you want an illustration of what this can do to a stock, the look at the pps of Biophan at the start of every calendar month (some of you have no choice, I know, having been deceived by Weiner, Lanzafame and their message board cronies into joint ownership - you have my sympathy).
"up to $2.5 million"
After all this they may not get the full $2.5 million. Sad, huh?
The fact is, that if NNAN's Board of Directors know that NNAN will never achieve profitability, then it is their fiduciary, legal and moral responsibility to wind the company up now. SEC unfortunately don't take action as often as they should in these situations.
That's why I'm thinking about submitting a Citizen Petition to SEC to ask them to consider the cases of NNAN, BIPH and a couple of others, to investigate thoroughly and if appropriate wind them up and prosecute the offenders.
If you're interested, feel free to email me at voldemort.2001@yahoo.com.
As you may have gathered, I'm a bit of a "glass half empty" guy when it comes to penny stocks that are long on PRs and short on revenues.
I hope you'll forgive me, then, for presenting the "glass half empty" perspective on this latest piece of news.
The words that should set alarm bells ringing with curious investors are the following:
"AMHDC to Receive a Significant Equity Position in the New Company and Royalties Paid on a Per Test Basis from Breast Cancer Tests Performed"
I suspect (and would welcome a factual correction if I'm wrong) that it should read:
"AMHDC to Buy a Significant Equity Position in the New Company and Receive Royalties Paid on a Per Test Basis from Breast Cancer Tests Performed"
The deal will be set up that HDC will buy a minority equity stake in this new company for a some of money that will be unclear until the next 10Q or 10K is filed. The sum of money paid will be agreed by allegedly independent valuers, and will be justifed to shareholders by the promise of the future royalties from the breast cancer test in development.
For the cynics among us, this serves two purposes. It gives an alternate focus for the hopes and expectations of shareholders if and when the PC test does not meet expectations.
Secondly and more sinisterly it provides a ready excuse to transfer cash sums from the publicly quoted company HDC onto the balance sheet of a privately held LLC.
Those of you familiar with the skein of public companies associated with the privately held LLC, Technology Innovations (TI) will not need reminding of how the owners of that company used theit inter-company relationships to syphon off tens of millions of dollars worth of shareholders' money to a small group of private individuals.
The effect on two of the publicly held companies concerned, Biophan and Natural Nano, is as follows:
http://finance.yahoo.com/q/bc?s=BIPH.OB&t=2y&l=on&z=m&q=l&c=nnan.ob,%5EIXIC
"It is hard to call a fully reporting mico-cap a scam that is still around since 2001."
In fairness, it's not hard at all. One of the penny stock scams with which I am very familiar, Viragen, was a fully reporting company for fully twenty years before it went bankrupt last year, having rediverted at least half a billion dollars to a group of crooked managers and equally crooked "financiers". I could name half a dozen more with longer histories than FASC off the top of my head.
Viragen, like Apthon, like Ligand, like Biophan, Like Natural Nano, existed for many years by a combination of toxic financing, the engine for which was Megadilution, reverse splits and periodic PRs that promised the earth but never once delivered revenues or any type of sustainable value for its shareholders. Just like all the other companies I have mentioned and many more.
"This board has a great DD engine running with up front facts"
With respect, I beg to differ. This MB has a compensated cut and paster of company propaganda, and other posters with a proud but stubborn refusal to consider the historical record for FASC. It also has a record for censoring any posts highlighting any of the historical negatives for FASC.
This historical record demonstrates clearly that you shouldn't take any forward-looking PR or statement regarding FASC at face value until it has been recorded as sales in the SEC filings and you've run Benford's Law type calculations on the 10Qs and 10Ks to make sure they stack up. (I have - do let me know if you want the results).
Disclosure:
I have not been reimbursed by FASC, hold no position in FASC, and furthermore I hate crooks and those who work on their behalf. I am however FASCinated by the forensic examination of likely stock scams and those who perpetrate them.
Voldemort2001