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Oh man, I just went back and reread it.
My bad
WW, I read that Walgreens had $180,000 in sales on a $10,000 purchase from SPNG, is that accurate or am I dissillusioned? If it is accurate its sad because wouldn't that mean that it was a very successful product for Walgreens? Whats even sadder is that this company could've been halfway decent with the right people at the helm if it is accurate. I'm not saying that they would have ever made the numbers that they fabricated but it might of been a nice small business to be a part of.
Rocky
If theyre selling shares onto the market that aren't covered or borrowed and the legitimate shorts get squeezed, whoever bought the naked shares is going to sell and whoever sold the naked shares is going to have to cover those sells.
I think thats how it works.
Great question, but lets flip it around. If they have nothing to lose by NSing then how can they have anything to gain?
Great learning here tonight.
Thanks guys
Scovanner, I really don't know if Nite naked shorted and really don't care. My question is with all this going down does that automatically mean they didn't. Couldn't they have still NS'd shares even though these guys turned out to be crooks. I was reading some of the files on CMKX that Bishop pointed out to me and it looks like they were heavily NS'd even though those guys were crooks also.
Sorry if I am way off I am still learning about the subject of Naked Shorting.
Rocky
Hey Jim,
Is this the worst scam you have ever seen in the pinks or does this one take the cake?
Rocky
That question has been asked all day but the wizards refuse to answer the question.
Gee, I wonder whos making money here?
Thats why I asked my question, if the sales of this company were 99% fraudulent, and I have no doubt that they were,
Why is this still trading? Why are some entities still allowed to make money here.
Somethings not right.
Over,
I just logged on so sorry if this has been asked.
Why is this still trading, shouldn't this stock be halted?
Rocky
You just nailed it, thats the most important line of the day.
"hard to believe they weren't real."
In the long run these guys may have done a bigger favor for investors that lost money here than any of you guys realize.
He probably told them it was for a traffic ticket.
I disagree,
But rubbing peoples faces in it when they may have been taken for alot of money IS cold. The bashers on this board have been very professional today, claiming that they were right all along is totally justified. Yeah, everybody was warned but thats not the way it works. Just because they were right doesn't mean everybody has to take their advice.
In this case they should have, but not always.
My point is they haven't been cruel because they realize that cruelty is not neccessary today.
Lets not start now.
Whoa whoa whoa, you got me all wrong guys. I wouldn't touch this stock with a ten foot pole.
This is shark infested waters and if you buy your money is the chum.
My response was to the statement that there is no money to be made in any penny stock.
Not this one.
Plenty of money to be made down here brother, you just gotta know how to play the game.
Seph, I believe the term you are looking for is Sociopath.
In the financial industry they are described as someone who will profit at the demise of another human being through lies and deceit without any inkling of remorse for the innocent.
LOL, thats classic,
"You can pay me when you see me again, Josey Wales"
Bummer, It was out there for the taking. I dumped at .14 thanks to someone I use to argue with all the time who was nice enough to teach me how to trade down here, we have been friends ever since.
The one thing he said to me is to concentrate on making money and forget about what everybody else is saying, it is taking away from what your goal actually is.
I've been trading like that ever since, I bought RMIX at .32 and two weeks later sold at .85. Less than a week after that they filed banktupcy. The stock was pumped and bashed to death and I sat on the sidelines and just concentraded(notice the spelling)
on making money.
Thats the key down here folks, "CONCENTRADE".
Know it, Love it , Live it.
What will probably end up happening is the warrants will be worth more than the stock price will be able to climb to within the five year period then they will expire worthless.
But you never know, the warrants could have a 30.00 per share value and this could end up to be a 75.00 per share company.
Nice post,
I remember you from a while back before this stock was possessed by demons.
GLTY
Rocky
Don't forget guys, you have brokers that will guide you through every step of the process so don't get frustraded.
believe me so do I, most people do.
Think of a warrant as a gift card that expires in five years.
1. you have $1000.00 dollars invested in the company and the company files bankruptcy.
2. The company issues a warrant(gift card) to you worth $10.00
3. You get 100 gift cards 100 x 10.00 = $1.000
5. You can use your gift cards to buy the stock at $10.00 a share anytime you want. But, the company may only be worth $5.00 a share when emerging from bankruptcy so you hold your warrants.
6. If the price per share of the stock never reaches $10.00 after bankruptcy during that five years your warrants expire and they are worthless.
.7 If the price per share reaches $20.00 you can use your warrants to buy the stock at $10.00 per share then sell your shares on the open market at $20.00 per share.
Now, you can hold these warrants hoping the company goes higher than that, which it may. It could reach say $60.00 which would obviously put more loot in your pocket.
Either way your warrant must be exercised within the five year expiration date or it expires.
Exisiting shareholders will be issued a warrant that will actually trade on an exchange at a price determined on strike price and expiration date. For instance, let's assume each current shareholder gets a warrant to buy one share for $12 anytime from now till 7-31-15. Assuming RMIX exits bankruptcy in 90 days, that would give a shareholder the right to buy one share at any time for $12 for the next 5 years. That is worth something. Let's assume further that the new stock that gets issued to bondholders starts trading at $10 a share. there is a very good possibility that RMIX new stock might get well above $12 sometime in the next 5 years. If the stock gets to say $18 then the wqarrant is worth at least $6, the difference in strike price and current price. Please understand, shareholders are not being given 15% of the new stock, just the warrants to buy them.
Drum if you are not sure what I am saying read this post from Danin on Yahoo.
Heres a copy
The Disclosure Statement was filed this evening....all 33 pages, including giving management and BOD's 10% of the company......as I said several days ago.....management pushed for bankruptcy IMVHO so they could enrich themselves. They basically over 3 years get 10% of the company for zilch. They get 3.5% of all new shares within 30 days of bankruptcy exit. Here's the link to bankruptcy court filings. Click on Documents under #16. This site you may want to save as it's updated daily and you will be able to follow proceedings: DaninFW
Drum see my last post,
Rocky
If you guys are not reading Daninfw04 posts on the Yahoo board already, I suggest you do. You can learn alot from him he's very experienced in these types of situations.
Reyman,
Sorry I don't have PM on this site but my answer to your first question is no I don't, I really never looked into it. To your second question, no its not that crazy but do your trial and error on paper first.
There is no move here for a new investor. These are shark infested waters and your money will be the chum if you are not that experienced.
Its a really tough call Drum.
Chances are its going to go both ways right now as people will be flipping this at an incredible rate. You could have massive accumulation by institutions which is why you probably see the stock not plummeting to single digits. Daytraders will be jockeying for postion putting in buy orders on pure speculation and trying to flip them for a quick profit when the shares get scooped up. This type of trading is very fast as you saw yesterday afternoon, when it settles down the price will probably be quite low. If I was caught in this bankruptcy I would be looking for a way to make my losses back but could also lose even more in the attempt. I couldn't even guess at a price right now, I have no problem giving opinions at times but in this situation I hesitate for the fact that it would be incredibly pure speculation on my part based on absolutely no due diligence or any technical analysis whatsoever.
Rocky
Bankruptcy
Right as the economy and the construction industry is turning around.
Right before summer when demand for the product skyrockets.
Right as the stock was climbing to levels of Nasdaq compliance.(albeit probably manipulation lest we not forget the dump from 1.02 to .68)
Right before the release of the company financials.
Right as CAT and other big movers in the industry were crushing estimates.
A decision made by a group of people who gain to profit handsomely from the aformentioned. Leaving out the larger population of the vested from having any say in the matter and stand to gain the least from the outcome.
Sickening
My sentiments exactly. Good luck to all you guys, I got some trades working that require my close attention at the moment but I'll be popping in from time to time.
Rocky
It would be tough to make it back to Boston from Vegas.
Whats going on over here, I forgot I even owned this.
We goin for a beer soon or what?
Theres a stalemate between people holding and the shorts. Not many adding to their positions and the shorts not giving any opportunity to buy back in to the profit takers. There may be a spike tomorrow afternoon as people wanting to get in settling for this price before Mondays financials.
RMIX showing type strong double support at .76 with a stregnth of 8. In my opinion profits have been taken which is a major plus as it won't contribute to any short manuevering today. It needs to hold today and tomorrow as Friday will indicate a strong bearish signal also. Beating financial estimates on Monday if they come out may mean that this is the last chance to get in at these levels as support will rise.
IMO
Indicators showing 100% bearish meaning this one will be tested hard today. We will get to see how strong this stock really is as long as the shorts play fair and they don't try to cause a massive pullback.
So far so good
Only a fool, but thats not whats happening here.
Because of that close I think it will be harder to find an entry point tomorrow, that was a great close.
This stock has great support above .80. I was hoping for another strong pullback because I know it will regain quickly but I don't think i'm going to see it. Thats the problem with flipping, there may not be a better entry point for me than right now. The longer I wait the less chance I have of getting back in at these levels. Even though my profit was over 100% I could ultimately lose out on a much bigger gain in the long run.
In my opinion I think the financials that come out early May could boost this back above a buck easily since it has already broken that plane.
So my answer to your original question is I think my entry point is right now.
Took a nice chunk at .85, waiting for another entry point. I'm not done here, this companys not going anywhere. Its very volatile but lots more money to be made in the very near future.
Rocky
Good morning Wes, see you at 1.20!!!
Nice call!!!!