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Can you show me a counter-example?
And I should qualify what I mean by 'value'. I don't mean some temporary stock market valuation but rather the price paid by an acquirer.
Thanks
Problem is that this shell has about 85mm shares outstanding, so the market cap today is something like $60 million.
There is no shell and there never has been a shell worth more than $5 million.
So what is the value argument for this stock to be anything above 10 cents?
Love that!
"Had some troubles lately"
Guy's in jail.
$15,000 was last Thursday, up to the time I posted.
It's time to 'kill the messenger', I guess.
https://advisorhub.com/sec-finra-hit-small-broker-clearing-firm-with-7-2-mln-in-aml-settlement/
The Securities and Exchange Commission on Wednesday announced settlements requiring small New York investment bank Chardan Capital Markets and its clearing firm to pay $1.9 million of penalties for failing to report suspicious trades from customers, while the Financial Industry Regulatory Authority hit the China-affiliated clearing firm with a fine of $5.3 million.
Chardan, which has less than 200 employees and specializes in small-cap banking deals, liquidated more than 12.5 billion penny stock shares for seven of its customers in 2013 and 2014 without filing required suspicious activity reports, according to the SEC settlement.
The Industrial and Commercial Bank of China Financial Services LLC similarly cleared the transactions without filing the reports, despite ultimately prohibiting some of the customers from trading in penny stocks, the SEC said.
Chardan not exactly squeeky clean. Penny stock house it seems.
This from the SEC: "Beginning in late 2013 through the first half of 2014, Chardan facilitated the sale of billions of shares of low-priced, thinly-traded penny stocks for seven customers, all of which cleared through a single clearing firm, ICBC. This trading in penny stocks led to a large uptick in Chardan’s commissions from equity trading: in December 2013, Chardan generated just over $235,000 in such commissions, while in January 2013, it generated over $797,000.
8."
Quite the scammy list of major shareholders. It includes Platinum Partners whose owner Mark Nordlicht was recently convicted of securities fraud.
https://www.institutionalinvestor.com/article/b1g6h7ghkkcl9j/Platinum-Partners-Execs-Found-Guilty
Platinum Partners Value
152 W 57th St 54th Floor
New York, NY 10019 (4) Ordinary Shares,
$0.0001 par value 7,618,954 9.2 %
South Ferry #2 LP
One State Street
New York, NY 10004 (5) Ordinary Shares,
$0.0001 par value 11,119,969 13.4 %
Atlas Master Fund
135 E 57th Street
New York, NY 10022 (6) Ordinary Shares,
$0.0001 par value 4,571,382 5.5 %
AQR Capital Management LLC
233 E 69th Street #6J(7)
New York, NY 10021 Ordinary Shares,
$0.0001 par value 6,099,409 7.3 %
All this posting on CNWHF yet dollar volume so far today only $15,000.
Anyone know why CGX has been flying lately? I see nothing but a horrendous quarterly report.
I would love to learn from Mr. Costello.
In a few weeks he has turned $300,000 into $83 million. Impressive.
" On June 20, 2019, GRN Funds, LLC, a Washington limited liability company, and its manager and Chief Executive Officer, Justin Costello, purchased a total of 139 million shares of the Registrant’s common stock representing 55.65% of this issued and outstanding shares, in a private transaction with Stephen Flechner and David Cutler. As a result of the closing of the transaction on June 25, 2019, GRN Funds, LLC and Mr. Costello acquired a majority of the issued shares eligible to vote. The total purchase price of $300,000 was paid in cash by GRN Funds, LLC."
SAN DIEGO, May 21, 2019 (GLOBE NEWSWIRE) -- Obalon Therapeutics, Inc. (NASDAQ:OBLN), a vertically integrated medical technology company with the first and only FDA-approved swallowable, gas-filled intragastric balloon system for the treatment of obesity, announces that expanded clinical data from the Company’s large-scale commercial use study was presented at the Digestive Disease Week (DDW) 2019 Annual Conference, held May 18-21, 2019 in San Diego, CA. The 1,411-patient data presentation titled, Predictors of Weight Loss In Patients Treated With A Swallowable Gas-Filled Intragastric Balloon System For Six Months: Results From A U.S. Registry, continues to demonstrate the real-world utility of the Obalon Balloon System, with weight loss and safety results from 143 treatment sites in the United States.
In the presentation at DDW, average weight loss for indicated patients receiving three balloons and six months of therapy was 21.7 pounds, resulting in a 10.2% reduction in total body weight. Of note, 50.7% of patients lost ≥ 10% total body weight and 77.9% lost ≥ 5% total body weight. Weight loss in the first months of therapy was the largest predictor of success. Non-serious adverse events occurred in 10.3% of the patients with the most common being abdominal pain (3.8%), nausea (3.0%), and vomiting (1.7%). There were no serious adverse events (SAEs) reported.
The problem with PRPO is the balance sheet and dilution. Too many unpaid liabilities and little to no cash, even after the recent financing.
The company has no choice but to issue more shares to raise money, otherwise known as dilution. Just look at the dilution over the last couple of years. "34,481,083 and 10,196,620 shares issued and outstanding at December 31, 2018 and 2017, respectively" Divide those by 15 to get .68mm shares and 2.3mm shares. Now company says they have 5.5mm os. "On the Record Date there were 5,583,974 issued and outstanding shares of our common stock." That makes for nearly 10x dilution in 16 months.
Dilution will continue as the company is up the creek.
There is no indication that profits are anywhere in the near future. If and when it does reach profitability who knows how many shares there will be. 100 million?
During 2018, the Company sold 5,725,000 shares for $725,000. That would be $0.13/share.
As of 12/31/2018, there are 9,112,500 warrants outstanding, having an exercise price of $0.19.
As of 12/31/2018 there are 4,854,692 options outstanding, having an exercise price of $0.04.
And for those who think that's outdated:
On April 1, 2019 the Company entered into a consulting agreement for business advisory services. As part of this agreement the Company will pay the consultant $20,000 per month. Additionally, the Company will issue 500,000 warrants to purchase its common stock. These warrants will have an exercise price of $0.20 and a term of 7 years.
At today's share price, those warrants are worth $1,485,000.
During the first quarter of 2019, the Company issued warrants to purchase 1,533,000 shares of common stock of the Company at an exercise price of $0.10 per shares. The warrants may be exercised on a cashless basis and have a term of seven years. The warrants were issued for consulting services.
At today's share price those warrants are worth $4,400,000.
Good luck, longs. You're going to need it.
DRVD - 10K just out
The number of the registrant’s outstanding shares of common stock of the registrant was 40,875,014 as of April 11, 2019.
At today's closing price of $2.97 the market cap is $121,398,792.00.
Total assets at 12/31/18 = $33,913.00.
At first I thought that must be 000's, but it isn't. The reverse merger occurred in August 2018, so these really are DRVD's financials.
What a joke.
Boston -SHMP is not an investment. At best it's a speculation. More likely a lot of talk.
I like your list of things that have NOT happened. Very real.
I very much doubt those holders held more than a day or two. Long gone.
On January 16, 2019, the Company entered into an 10% convertible promissory note for $205,436.60, with an OID of $18,6867, for a purchase price of $186,750.55, which matures on October 16, 2019. During the first 180 days the convertible redeemable note is in effect, the Company may redeem the note at a prepayment percentage of 120% to 130% of the outstanding principal and accrued interest . The note is convertible at a fixed conversion price of $0.01.
Somehow I missed this until now.
Hi waytoorandom:
Yes, I have considered those things. We know less of the future prospects than management and the investor, so I rely on their price negotiation to arrive at a reasonable value.
I've been doing this a long time. Almost always it ends up being only about the shares and prices in placements.
Here's an observation.
When posts use possessives like "our company" or "our CEO" or "our patent", then, unless the poster has been on the board for months or years, you can be sure the stock is a pump job.
Be careful on this one.
There's a river in Egypt.
Chinese billionaire Lam Kong just bought 77% of the company for 7 million pounds - about $9 million. Why is the whole thing suddenly worth $150 million in market cap?
Obviously, it's not. I'll give you an instant 3 bagger on his investment, which would be 10 pence per share or about $0.26. It's just a matter of time until it is there or lower.
Anyone long MTP needs to be put on suicide watch. If you are long, don't leave your desk!
The London price, (MTPH), even after they saw what happened in the US yesterday, ran up 'only' 50% to 8.62 pence. That is GBP 0.09.
To get the equivalent US price multiply by 2 as MTP represents 2 MTPH, and multiply by 1.33 to change into US dollars.
That makes MTP worth the .09 pence price times 2 x 1.33. .09 x 2 x 1.33 = USD $0.24.
And it's up in London only because of the silly price action in the US. Based on the recent deal price of 3.5 pence, the US price should be 9 cents per MTP share. And it will be, so keep your eye on that ticker.
In that deal, by the way, the company sold 2/3 of itself - so we can be quite sure that no higher price was available.
Whoa, what world do you live in?
It's trading in London at 9.50 pence which equals about $0.25 in the US.
Sell while you can.
Anyone awake, watching MTPH open on LSE?
And then what happened?
Short seems like a good idea. Stock up 400% for very little reason. That's a lot of percent.
The article was from a few months ago. Nothing has changed. Still a day care playground in the front!
https://www.marketwatch.com/story/10-potential-red-flags-for-investors-in-india-globalization-capital-the-pot-stock-that-jumped-1000-in-three-months-2018-10-04
What is the news? I don't see anything.
You are on a Fantasy Trip!
Follow the shares on SHMP. Just like so many others. Dilution is horrendous.
Island Stock Transfer info
Dear Moderators:
How do you obtain that share structure info from Island that you show in the intro. Great info.
TIA
Seems the inventor of the technology is F. William Gilmore of F&T Technologies in Largo, Florida.
https://patents.justia.com/inventor/f-william-gilmore
The recent patent is one of a long series of electro-coagulation methodologies - the first dating back to 1995.
I have a feeling the latest patent is a variation but that the basic technology has been around for decades.
This was pointed out in August 2018 in post #440.
Incredible dilution.
First of all, the preferred can be converted to 50% of the total, regardless of amount.
Secondly, maybe $2.5 million of convertible notes with convert prices of 60% of lowest price in the last 20 days or so. That would be south of a penny.
So you have about 100mm common shares, about 250 million shares issuaeble on the converts, and then double it all for the preferred.
Not far off one billion shares, all told.
Here's the type of money the company is able to access: https://www.poweruplending.com/
Sorry guys. My mistake was thinking the 2/6 price on Yahoo was pre-split, but it was actually post-split.
Price has risen quite a lot though. On January 15 it was as $0.75 (adjusted for the split) and now it's at $2.00.
At least that makes some sense.
So what % is DRVD up today? I'm thinking it closed yesterday at $0.97.
Divide that by 12.35 (the split ratio) and that's $0.078. Closed today at $1.99 - so that's a 2500% increase.
I think there's a lot of confusion. The quote services are messed up. Yahoo says the equivalent close yesterday was $12, so they have it down 85%.
I wonder if the few trades today will be broken.
Craziness. I don't know if indicated price is too high or too low - but I know it's one of those.
Based on the cash that CMSS is investing into the acquisition, RENN is worth at least $3.50 / share.
If I'm missing something, please let me know.
CBDG going nuts this week. Got up to the $4's today before retreating to the $2's.
No news but there's got to be some reason for it.