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Lets say, for example, the pps is 0.0002 x 0.0003. An investor buys 10M at 0.0003. If the stock doesn't have much movement it would take a very long time, if ever, for the investor to make a profit on that trade. I think that's what varok meant, but not really sure as I wondered the same myself. Of course this is all speculation excluding what the broker told you, which is very interesting.
"I believe in LFBG case the R/S will be in the range of 1:50 there abouts if the total 10b is exhausted.
The reason why I say this is strictly for liquidity purposes.
Anything higher would bring down the O/S post-split to unreaonable O/S levels and would restrict the trading on a daily bases. Meaning it would be difficult to sell shares and restrict high volume buyers from getting in."
That was from varok. Later the same day he change the range of the r/s to 1:20.
I personnally cannot see LFBG doing only a 1:20 r/s. I think it'll be much higher. If they do a 1:200, or higher, r/s the stock would become a veg, with very little pps movement.
yes, 1-200 would be 10 cents if pps was 0.0005
bid is reaching point more shares can be dumped.
People keep mentioning Wal-Mart. From what I understand only select Wal-Mart stores carry the games. Those stores that carry the games allow only two games. Am I wrong or has that changed?
Sure they want to make money, but the rise of the pps can only be obtain through good rev and profit, that would sustain the pps. Presently, through the on-going dilution the pps will continue to drop at the expense of investors while providing the company with additional capital to continue operations. At this point the company has no way of increasing the pps short of buying back shares, that's not going to happen anytime soon. We simply do not know what will happen once all the dilution stops, or where all that extra capital is being applied. At some point there may be small short term increases in the pps with strong news, but would revert back to the original pps. It's going to be a long wait and see situation until all the smoke clears.
Varok makes R/S correction:
Hi Bill,
The math on the R/S.
It was my bad on the assumption that if the company did a R/S it would be in the area of 1:50..
I meant to type in 1:20 not 1:50
A very earlier post I mentioned a R/S of 1:20.
I think the R/S would be in the area of 1:20 and would gave a post-split count of 500m O/S and share price in and range of .015 give or take. This is the most reasonable and will provide the liquidity needed.
As far as doing a R/S to move to a higher range or uplisting isn't in the math.
The shares are trading way to low for any reasonable share price to allow uplisting other than off the pinks and this could happen, but not any higher..
To move to a higher range, this company first must lower the share structure and be able to maintain a stable price and then move on it's own merits, whether it be solid financials and NO dilution with a governing strategy that shareholders can climb on board with.
Down here in the pinks, I have never met a company that executed a R/S and then moved on to ROI for shareholders. The problem with a R/S is that it will for the longest time create a mistrust among shareholders.
Most veteran traders have in their portfolio of past, R/S companies that either don't exist or are trading in the gutter or floundering at the bottom in pre-split levels never having to rebound or amount to a reputable company.
The problem I see with respect to LFBG is a company with a great business model, but the investment side is not and ever will ROI to shareholders. The company may survive like many down here, but every company really never achieved real success with respect to shareholders interest.
If this company is able to be that .01.9% of all companies to break out and reward shareholders in share price appreciation it will be the first.
To be that company, the company must in the post-split run the company based on growing rev and not printing shares.
Have a good day
Varok
I asked varok if he though the company would do a 1-200 or higher reverse split. This is his reply:
Morning bill,
No!!
I have seen R/S in 1:2,500 or even 1:10,000
I believe in LFBG case the R/S will be in the range of 1:50 there abouts if the total 10b is exhausted.
The reason why I say this is strictly for liquidity purposes.
Anything higher would bring down the O/S post-split to unreaonable O/S levels and would restrict the trading on a daily bases. Meaning it would be difficult to sell shares and restrict high volume buyers from getting in.
Have a good day
varok
Problem is 17 after he uses the extra 5B then the $10M funding is available in Sept (more dilution paying back what he draws from that? Then the r/s (more dilution?). Noquit was correct in saying we have no idea how the dilution is being spent. We will probably know early next year if he fulfills, some or all, his mentioned endeavors. If nothing is done we may have a problem. The pending 10Q should really be interesting to say the least. All we've had in the past 3-4 months is investor speculations and opinions, nothing solid or substantiated. When investors are continuously losing money I personally feel some sort of explaination from the company is warranted.
From varok today, addon from the share structure:
From the volume of the past 2 weeks shows the company issued 800m and only 400m trading
It's clear the company is issuing shares for services rendered and the company is applying certain restrictions as seen from the 1.6b restricted leaving 5.2 free trading.
What you have to consider now is how you plan to trade this issue and maximize profits. We already know that there will be a R/S and these folks that are getting shares for "Services Rendered" also know they could get caught up in this..These restricted will probably be unrestricted to allow a timely exit pending any R/S. This will be part of the volume.
Now for us folks, we need to apply certain levels of minimizing the risk..
Take a look at the The 3 P's of Investing and the Strategy that can maximize your ROI..
If you feel strongly about the company's future, than you must trade towards 'Free Shares' going into the post-split. History has shown that when a company exercise a R/S they almost surely trend back to pre-split levels. Here you may have the opportunity to ride into the future without emotions and your principle investment is in tact.
This is still trending in a lateral way, but the trend is down at -100 so continue to watch.
Have a good day
Varok
Have a good day
Well, the 4 bid has increased to 17.6 million, the bid will probably be hit again before the close.
O/S share structure as of 10 Jun.
The below share structure was mentioned on June 10th posting date.
"First let's get to the share structure as of 6/09 yesterday's close. The O/S is 6,053,899,732 up 315,000,000 from May 23rd of 5,738,899,732."
Break down 6/23
6,864,884,107 O/S
1.6 restricted
5.2 free trading
Just received the current share structure of cutoff From 6/09 through 6/24, or in two weeks, shows that the company has added 800m shares.
Have a good day
Varok
I'm working on it Niko.
That's a difficult question noquit. Take a look at the past few days trading. Appears "someone" is not ready for the 3's just yet, so the trading stops until the 4 bid builds back up. Watch the trading on level II and you can see what I'm referring to.
I hope not, but the auditor excuses are getting kinda old.
Well they had better file within the extention period or face the dreaded "E" at the end of their symbol.
If they go into July wouldn't they exceed their grace period?
Here's what I think will be the trading senario in the morning:
LBFG will open green, with trades hitting the ask. Trading will virtually stop if the bid size doesn't increase right away. Once bid size increases again then the bid trading will begin. I would expect to see a low volume day tomorrow unless there's a lot of trading on the ask side. That's my call and I'm sticking with it. :)
PERT moved its operation to 3.
3 on deck.
It took a few days once Troy made the announcement of adding 5B more shares to the A/S. Then the dilution started. Stock dilution will always have a negative impact on the pps. As far as the funding company goes, there's no solid evidence that such a company or group of investors do not exist. It's not unusual for an LLC funding company to be unknown. I realize Modessa LLC name is non-existant but it may have been a group of investors that didn't want their names made public. We just don't know for sure. I don't believe the mystery behind the funding company would have had much impact on the pps due to the type of funding.
The A/S was not 10B in concert with daily dilution and no recent news. The additional A/S increase was excessive that implied there was probably financial problems within the company. What could have possibly sustained the pps once the A/S was increased two fold.
no trades in the past couple of hours. Wonder is their printing machinery broke down.
yep, now the market cap is 1.5M, MM's should be ashame.
niko, reasons you stated, in part, included the dilution, the o/s size and traders flipping the stock.
Niko, you hit the nail right on the head. It's doubtful, even with very strong news, the stock will go over 0.003. 0.003 is the very best level it would reach, but IMO, it will not reach that level for reasons you posted.
On the surface that looks good...but....lets say a person buys 10m shares at 3. They shortly afterwards a r/s is announced at roughly 1 for 200 shares (maybe more). More dilution follows. May not happen, but it certainly could.
yep, 375 shares at 3
I certainly agree with you jazz. The company needs to do more advertising via TV, radio and news journals. Kids need to see previews of the games on TV. It'll be the children for the most part that draws their parents attention to these games. The company needs to get their name and product to the public.
Believe the My Praise Network will be updated in September this year.
jazz, Don't know about 5 years just yet. What about some suggestions at this point how LFBG might regain their footing, in concert with their pending products and My Praise Network.
Yep, have to agree pennyscott. Nice post.
We need more opinions/comments. Always the same few posters everyday. Come on lerkers, we want your thoughts.
From varok on 17 Jun:
Good Morning,
I noticed today that the bid side with .0004 has 7 MM and now .0003 just showed up.
I have been watching this with level II and maintain 8 tier on the bid. For the longest time, .0004 was showing on every level down to 8 and now .0003 is showing up. This is an indicator that we may see .0004 moving to the ask in the coming weeks..This isn't nothing knew, since we are moving into the summer months and history has shown this period is very slow and puts a drag on the share price.
Continue to watch and be prepaired for an entry in at .0004, when that hits, watch the bid closely on the .0003.
Also watch closely the ask for additional MM sitting on .0005. There are 4 mm on .0005, if it grows, watch for .0003 on the bid to build.
I will keep posting these analysis and it will help you for a very favorable entry and setting up for a fall trading session.
Below is yesterday's analysis.
Have a good day
Varok
Due to the lack of company information it's becoming very difficult to predict what we can expect by year's end. By then we should know the direction the company is heading. Let's hope it's north and not south.
Probably be able to buy at 0.0004 in a couple of weeks.
Well, that was interesting reading, but we did run the posts up for today to 46.
agree Billy. News alone, however, cannot normally sustain a pps. It takes rev and profit to sustain the pps. Usually a company will revert back to it's true worth after a news frenzy.
RuffRy, No, would almost be impossible for it to reach a penny. With outstanding news it could have a brief run-up to maybe 0.003 - 0.005. The current O/S (and increasing daily) prevents it from going to a penny anytime in the foreseeable future. Of course a r/s would put it over a penny but would also decrease your share balance.
Bid getting hit hard past few minutes.