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Hey Nano, what happened to gopackersgo? His previous historical posts seem to be gone and his recent posts seem to be gone. Is it me? Have I inadvertently hit a wrong key and messed up?
Please let me know. Thanks
Well shorts, I honestly don't know why he gave himself 7.5 billion shares of the common stock that he put it into his own limited liability company.
At the end of first quarter of '06, the financials showed no increase in the outstanding that I can remember.
I have no idea what kind of behind the scenes things that JT is doing.
I agree that the information was very slow in forthcoming. I don't know legally what the implications are.
I admit that I don't have that warm cozy feeling here but I am currently sold and not holding. I sold my last at .0056, took a 12 hundred dollar bite and was going to buy in around .004 but it went past that so fast I didn't feel that it was bottomed. I am still waiting and watching the MM's to see what they are doing. Right now, UBSS seems to be staying at a spread of .0002 or more and NITE is larger.
Also, although PLNI is submitting audited financials, I don't even know if he's registered with the SEC.
I am sure that I know less about what's going on than I know about what is going on. I do know that the PPS appears to still be sliding.
Guess we'll wait and see.
I like your postings though. I am glad that you're not easily hurt or intimidated. It really makes the board interesting.
I just bought more Delta because, even though they are in chapter 11, they made $22 million this last quarter and are expecting to come out of Ch 11 by January, '07. This is really a risky venture also.
So I guess we gamble here instead of paying the money to fly to Vegas. LOL
Good trading
fynley, just a note on the reverse split thing - JT said that PLNI wouldn't do a reverse split. So, what do you believe?????
If he could find financing, he could do a convertible debenture thing that is convertible to preferred stock at maturity and use that money for a common stock buyback.
Just another way it could possibly go.
Your guess is as good as mine or anyone else's.
PLNI buyback - Since the company needs any cash they can get to grow their company, in my opinion, they will probably not do a cash buyback, at least in the relatively near future. There are other ways to restructure the outstanding shares. I will name a few that come to mind and maybe others can also think of a way to restructure the O/S shares.
1. Reverse Split (lowers the O/S immediately with a corresponing initial increase in share value).
2. Issue shares from another JT owned company in return for PLNI shares (buyout).
3. Issue Preferred Stock in place of common stock (bookkeeping but could effectively be like a reverse split).
4. Issue a second series (or B series) of common stock (and use proceeds to purchase some A stock back) -(See Hughes/Raytheon merger)with each stock trading seperately.
5. Merge PLNI with one owned by JT and issue new stock.
Can anyone else think of a way that the stock could be restructured (this word is from the financials) that wouldn't involve a cash buyback? By that, I mean a way to reduce the number of PLNI outstanding shares.
Are there any methods (other than a cash buyback) of reducing the current O/S shares that would be acceptable to current long stock holders.
I don't mean to imply that any of these will happen. I was just trying to think of reasonable alternatives to a cash buyback that might be accomplished in the nearer term.
Anyone have any ideas??
Gopack, I read your message but no data or reference to PLNI. ??
Nothing more to say until I hear from you.
Gopack, I believe I just said that.
If you're talking about the issuance of preferred for common, then the buyback is not a buyback. It's bookkeeping.
Maybe you could explain what kind of buyback they have planned because other than the statements I have read, I know nothing more.
fynley, I also hope the SEC gets something done about the pinkies but you can bet that when the final drafts are accepted into their code that the MM's will still have the ability to make bajillions of bucks. Look at how much (or how little) SHO has done.
I wonder how many, if any, of PLNI's naked shorted stocks were forgiven by the SEC in 2005. If some were then the holders of those specific stocks have nothing behind their ownership except a backroom electronic notation that has, since then, probably been erased. The sad part about that is that the now counterfeit stock will continue to be bought and sold through MM's who are aware of this and the buyers will only realize the problem when they ask for certs or a dividend is declared and they receive nothing.
I'm sorry, but at this time in my life, I am not a really big fan of the SEC.
Glad to see you back.
Yankee, I don't believe that the audited '06 financials will be much different than the originals except for any reserves or write-offs that the auditors need for an unqualified statement. So, in my opinion, audited statements for the first quarter will show PLNI's dedication to following through on their previous statements which would be a positive step.
I honestly haven't looked into what the requirements are for uplisting to BB. Your guess about the next step to a Buliten Board listing is as good as mine. I think that that will also be a positive step.
As I said in my earlier posting, I personally would like to see some additional basic business improvements and continued business building. I think that that would be the best thing to see because the rest would probably follow.
It all costs PLNI money. I hope they become profitable very soon. That should help all stockholders a lot.
In my opinion.
One more hope. UBSS is back working on a .0001 spread so maybe, we're close to the bottom of the PPS slide.
Just a hope.
I see a lot of people hoping for a buyback. Could anyone please tell me where PLNI can amass enough discretionary
cash to undertake a buyback. I'm sorry, but I can't see it happening anytime this year, even if they become profitable.
They have a business to grow first and, as of the first quarter of '06, they are still very cash poor.
It takes excess cash for a buyback and I don't believe that anyone wants to see them issue a billion shares to buyback 200 million.
I would rather hope that a profitable quarter or two this year and some positive business increases would increase the PPS and look for a buyback somewhere further down the road.
In my opinion.
Nano, I think the squeeze trigger price could be well below .008. My guess would be somewhere around .005 or so.
The reason I think this, is because the shorts that were posted by Buyins.net is an estimated failure based on their "proprietary algorithm" and is actually calculated at .077 of the daily volume for PLNI for the days posted. That is then extended by a "volume weighted average short price" or the price per share sold for the day and divided by the total shares for that day.
Then, as was posted as an opinion by someone here earlier this week or last week, that a great number of the shorts that were sold at higher PPS up over, say, .008 (for a swag) could have been filled by now, if the naked shorter intends to ever fill the short.
I think that with a company like PLNI who is really building a producing company, it would be foolish for the MM's to let the short price get out of control. It might have already happened with TDA. TDCM has a buy in at .0034 that could be for fills or, as rrm pointed out, to fill for UBS (see rrm's post #11217 which is a very, very good post).
That could also be another reason for the MM's to hold the PPS down around .004 + or -.
On the "off-board" trades, nobody knows except each individual broker and they for sure aren't saying.
This is just my opinion
rrm, Thanks for all the work you put into the post. I went through it all. The quarterly trade records do indicate a lot of volume between TD & UBS for referral trades. The sad part of this is that the IOU's are not recorded anywhere that is visible. That leaves a ton of room for the "backroom ledger" entries. I referred to these in an earlier post. These are killers too for the small investor. You think you own a stock and find out you really don't and your "trusted", "honest" broker has nothing for you except an entry.
Thanks again for the info and I hope everyone reads this with good understanding.
Maybe we should go skiing in the Alps?
rrm, my point exactly. Things like this continue to keep PLNI's PPS artificially lower than it should be. I don't know about TDA being UBS Financials biggest customer or not but I do know that they are all so crooked that they have to screw their socks on.
Don't forget NITE, VFIN, et al. No saints among 'em. It's money and they're all hedged!
Money's the only word they know. Ethics is not a part of their vocabulary. Or is it ethical to screw the small investor over continuously?
I was just looking at a sight from NASD that lists the recent settlements (fines levied by NASD against wrong doers) for UBSS (and many others) but one thing that UBSS has been hit for (more than once) is failing to post clients up-bids in a timely manner. Some of their fines were fairly large and all uncontested. Just one more thing among many that keeps the PPS lower than it should be.
My opinion.
rrm, yep, that's what we both have said in different ways but I think there is absolute agreement here.
Maybe Big Apple should send out a retraction of the notice I got from them in my e-mail. It's obviously wrong.
Just out of curiosity, why would TDCM have a buy in at .0034. Could that be to fill?
They don't want to sell because their sell is in at .05
No big, I sold off all 15 million CMKX. 10 million at .00008 and 5 million at .00006. I was in at .00024. I lost about $2,500.00 but I have reinvested the proceeds and have come back, mostly on PLNI (in and out)
On PLNI, I originally bought in a .0074 and sold at .018. Bought and sold several times and made money. Then, I thought it would go higher and bought 184K at .01 and sold at .0056 and lost about $1,200. I'm about $12 thousand up on PLNI. I'm still waiting to see how things go and I hope this thing settles down because I would like to make more money here.
I thought that these '06 finacials would kick this thing to about .005 or so and then, after a drawback, continue an upward trend to about a penny or so. I was set to get in on the drawback at somewhere around .0045 but it never did what I thought it would do.
Borris, TBA did the same thing with CMKX as they are with PLNI. I had 15 million shares of CMKX and suddenly, I could sell but not buy.
Then, the MM's were buying at the 5th decimal point and I couldn't sell at the 4th decimal point. (ie .00009 VS .0001)
So, I ended up doing a market sell and got bit.
I don't know why all this is happening with PLNI. The '06 financials tell me that the company has rounded the corner and were able to make good finacial arrangements to start the company growing.
Oh well, this is the stock market and these are pinkies.
Wow wheels, that was copied directly from a Big Apple e-mail to me. I still have the e-mail.
I guess we don't know who to believe anymore.
This is like a soap opera except it seems to have more twists. If I could write like that I wouldn't need to mess with stock. LOL
rrm, I don't know what you mean about cherry picking large shareholders or what PLNI did or didn't know. Maybe you could clarify this.
I looked at my post and all I said was that perhaps TDA had identified unfilled forward stock sales and are attempting to protect themselves. They are pretty easy to identify. If they sold stock and are holding the sale without a fill, it's a better than even chance it's a short. I think they learned a big lesson with CMKX and I think it might have cost them a bundle.
We are in agreement about TDA trying to cover themselves in a short position. I don't know if they shorted through themselves or were forwarding other short sales.
Just my opinion
From Big Apple just now in my e-mail
Press Release Source: Yahoo.com
Important Message for Plasticon Shareholders With TD Ameritrade Brokerage Accounts: June 1st Deadline Approaching
LEXINGTON, KY--(MARKET WIRE)--May 31, 2006 -- Plasticon International, Inc. (Other OTC:PLNI.PK - News) wishes to inform its loyal shareholders that have Plasticon shares with TD Ameritrade that the deadline for transferring your account or requesting your shares be put into certificate form is this Thursday, June 1st, 2006.
According to the letter sent out by TD Ameritrade dated April 13th, 2006, Plasticon shareholders holding PLNI stock in TD Ameritrade accounts must either have a transfer in progress to another brokerage firm, or request that TD Ameritrade put your PLNI shares into certificate form and send them to you, by this Thursday, June 1st, 2006. If your account transfer request has not been initiated or you have not initiated the process of putting your shares into certificate form by the close of business on Thursday, June 1st, 2006, TD Ameritrade reserves the right to liquidate your account. Should you fail to take action and TD Ameritrade liquidates your PLNI shares, you may, depending on what price you purchased PLNI shares at and what price TD Ameritrade liquidates the shares at, take a loss in your position. It behooves all shareholders who have not heeded the notice by TD Ameritrade to do so immediately, thereby eliminating the possibility of your PLNI position being liquidated.
We encourage our shareholders to take action by contacting TD Ameritrade today. Plasticon suggests that your request should be made in writing to TD Ameritrade so that the request is documented. Forms may be requested by contacting TD Ameritrade at 800-669-3900 or by logging into your account online and requesting your shares be transferred to certificate form. To request that your shares be transferred into certificate form online, users should: 1) Log in to the account, 2) click on the Account Tab, 3) scroll down to Forms area (the first option is Frequently Used Forms, 4) Scroll down to the S section, 5) Find the Stock Certificate Request Form (web based version), and complete the form online. If you are transferring your account to a new brokerage account, TD Ameritrade requests that you fill out an ACATS transfer form from your new brokerage account which will initiate the process. Correspondence to TD Ameritrade can be faxed to 816-243-3769. Overnight mail may be sent to TD Ameritrade, 1005 N. Ameritrade Place, Bellevue, NE 68005. Additional contact information for TD Ameritrade can be found at the following web site: http://www.tdameritrade.com/contact.html.
About Plasticon International, Inc.
Plasticon International (www.plasticonintl.com) designs, produces, and distributes high-quality concrete accessories, informational & directional signage and plastic lumber, which are all produced from recycled and recyclable plastics. Plasticon is a leader, an innovator of cutting-edge design, engineering, and production of industrial and commercial products. Plasticon is a green company, environmentally friendly, using recycled plastics to produce its line of products.
Disclaimer: The Company relies upon the Safe Harbor Laws of 1933, 1934, and 1995 for all public news releases. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation, management and maintaining growth, the effect of adverse publicity; litigation, compensation, and other factors which may be identified from time to time in the Company's public announcements.
Contact:
Plasticon International, Inc.:
Jim Turek, President and CEO
3166 Custer Drive, Suite 101
Lexington, Kentucky 40517
web site: http://www.plasticonintl.com
One possible reason for some certs and some not.
Perhaps TDA has identified their short positions and are attempting to contact those investors who are holding "IOU's" instead of legitimate stock and TDA is attempting to force the original issuers to fill. If you request a cert, then TDA will also request the cert from their issuer. This should force the original short seller to fill and deliver. If not, TDA should probably go through the SEC.
Once again, this is just a guess.
I have an opinion on TDAmaritrade and why they won't trade PLNI.
This is not in support of the TDA but just a possibility.
They just had to supply about 1400 CMKX certs that have been requested by investors since the middle of last year. Where they got the stocks to fill the shorts, who knows. Maybe they borrowed them from DTSS who doesn't have to have (even though they are supposed to) stock to cover their loans. If they got them from other brokers, then they probably paid a large premium.
A broker doesn't have to be the one who originates the short to get stuck with it. They do, however, have to trade the short as if it was a legitimate offering in order to get stuck with it and have the stock open and uncovered if the stock stops trading and/or traders demand certs.
One more situation, shorts won't show up on the list for 13 days and by that time, most of the stocks have been moved or the contracts have moved to other brokers and they continue to circulate. Each time they move, another 13 days grace. So, even though there are naked short sales out there, which is almost the norm for all stocks nowdays, it doesn't mean they'll even hit the list. CMKX didn't and it had billions of naked shorts which has been proven by their taskforce.
Also, the DTSS forgave all naked shorts up to some month in 2005. That means that those will never have to be filled. Our government at work - for you??
I believe that TDAmeritrade got hit hard with CMKX and are covering their ....'s. They did the same thing with CMKX but much farther down the line.
Once again, this is just a guess. I am suggesting this because I got bit pretty well on CMKX and have joined the taskforce and receive their e-mails.
This is one possible opinion among many. No facts, just a guess.
I did some cursory additional looks at the '06 ratios and cash flow and the changes in working capital. They mostly seem to be going nicely in the right direction.
They seem to have circumvented their cash problem with some additional cash financing and seem to be using their cash expeditiously. They seem to be through the most difficult part of the start-up phase.
I especially like the increase in cash and near-cash items. If they have an A/R loan agreement with a bank, the increase in A/R should allow them additional cash opportunities.
Although they still have a few steps to go, they look like they are going in the absolute right direction. These documents look more like I would expect an expansion company to present.
These financials are so far above the '05 statements that it almost looks like a totally different company. I can't wait to see the second quarter statements.
Can't wait to see what the PPS does Tuesday. Should take a pretty good jump.
I hope it jumps a ton!!
This is all just my opinion and not intended to influence any financial decision by anyone for any purpose.
RRM, guess I should have read your post too before I fired off the response on PLNI.
I totally agree with your last post.
Much nicer to wait and see and then we can further discuss what we have anew in '05 & '06.
rrm, the financials say that JT issued the stock to himself through the LLC. Read your own copy of what an LLC can be.
You've answered your own question.
Attacking me or my credentials or my posture, which I have not included in the posts we are discussing, still doesn't change the facts that PLNI needs financial help.
You might want to note what the PPS is doing.
Maybe Pink Sheets are also as ignorant as I am.
Maybe TDAmeritrade is trying to reduce their income by reducing the number of trades they accept.
Maybe the MM's are working on larger spreads because they want to buy and sell less PLNI.
Too many things going on right now to be involved in a discussion over things that don't really matter to me.
I hope that the '06 financials show something good. The '05's can't be much different than the unaudited (in my opinion)
All my opinion. This is mine, please have yours too.
OT - PLNI seems to have disappeared in most of the postings this morning but I will have to say that todays postings were hilarious and I thank all of the contributors for a good laugh.
Maybe more of this will help everyone through the day.
The banter was a great relief, but........
rrm, I am not nor have I ever been offended by your posts about PLNI. I honestly don't intend to word my answers in any form that is upsetting to you or anyone else.
I am not the last word nor am I omnipotent. I am not all seeing but to me, many things are obvious and I just hate to see folks watching their hard earned money slide further into the red.
I try to post those things that will help gain insight.
Oh, one other confession, I don't type so many times, I have to re-read my postings several times to try and eliminate errors that can creep in such as the split thing. I missed that even when I proofed.
I am not trying to get anyone to do anything with their stock. I am not a basher nor a pumper. I am simply a poster.
I am looking forward to additional information appearing on the board that is really positive. All of this negativity is depressing. I know that I haven't helped that but I can't post anything other than my opinion at the time.
I really hope you will get the financials looked at and, when you do, I would love to call your analyst and see where we agree or disagree.
Best of luck in all your investing and let's look forward to bigger and bettter things.
I said in an earlier post that I wanted to expound on the forgiveness of debt but I didn't because I felt that questions such as these that were really not pertinant to the financial condition of the company would arise.
So, since I didn't include any of the close party information in the Working Capital shortfall calculation, it's really not important what he did later. The working capital shortfall of about $1.6 million still exists. Part of this is evidenced by an NSF check and no cash in the financial statement assets.
The debt was listed as accrued, and the financial position of the company remains unchanged irrespective of whether JT forgave himself of debts from a corporation that is his alter-ego and I feel that to continue to discuss this would be like beating a dead animal.
Since JT is PLNI and is LexReal, he simply made an entry that made the equity section appear to improve. It's kind of like taking your wallet out of your left pocket and putting it in your right pocket. Your pants can appear more in balance with your body.
I did say he took working capital and it was included in the statements. He later forgave the debt to himself.
Let's end this discussion. It's irreleavent to the real financial problem that PLNI has.
Item 3 for the last time - just read what I copied from the statements on the last answer. He owns LexReal. He loaned himself (PLNI) almost $6 million and issued the preferred stock to himself, both through LexReal. JT is the majority owner THROUGH LexReal. LexReal is owned by JT and LexReal owns the stock. It's a limited liability corporation. What is so hard to understand? Maybe the semantics are confusing.
Item 4. for the last time - No, the collateralized items (shares) cannot be sold before the terms of any agreement unless there is a default of some type by the issuer or terms are otherwise stated in a collateral agreement. This is contract law 101.
I have never said that the shares would be sold today, I said soon. I think that in the life of a corporation that soon is relative. Once again, semantics. But they will be sold and irrespective of the timeframe, prospective buyers are entitled to know the financial position of the company. JT, now having complete control of the corporation through his issuance of the preferred stock with a conversion of 7.3 billion shares will retain control through LexReal even if he sells all of the shares he owned before the new issue. If JT wanted the shares in his name, then there would have been no reason to run the transaction through the LLC. He is PLNI and he is Lexreal and that's one of the reasons I say that he uses these corporations, within the confines of the law, as if they were his companies, which they are, except he retains the corporate veil and the protection of his personal assets through the LLC.
I have always said that JT seems to be a very intellegent guy.
Too much of what you ask about what I posted as "My Opinion" is semantics and none of what you ask will change the need for PLNI to gain capital from some source in order to remain viable. They state that on both of their statements.
With exception of the error on the split, I still stand by everything I said and my opinion is unchanged on every issue I have posted.
These are my opinions and are not intended to influence any person's financial decisions in any manner about anything at any time.
rrm, I have a thought. This is not facetious, but rather an honest suggestion. You don’t seem to like what I see in the PLNI financials. Gopack has the same opinion. Nano seems to be of the same slant.
At this point, I see no one advancing anything on these sheets. After waiting and praying for them, they’re here and nobody’s throwing anything out but me and I‘m about finished again.
Print off the ’03-’04 and a copy of the ’05 financials and see if you can find an independent analyst to look at them for you. Maybe your tax person if they are tax attorneys. Or, a corporate CPA. See what someone else sees in PLNI.
Ask if they would invest, hold or divest.
Ask what they see in the immediate future. The long run assuming financing or stock sale, or not.
Of course, no analyst could predict additional acquisitions but you might ask them to assume a pro-forma on some expansion assumption.
Probably cost a couple hundred bucks but you could sure see if some independent other can put a better spin on PLNI for you than you think that I have. Might give you a more "impartial" insight.
Just a thought.
I’m done with financials now and I look forward to watching for informational posts and other good news from the company.
rrm,
Item 1. Sorry about the reverse split thing. That should have read "forward split". I was referring to the first 8 to 1 forward split. I bow to your diligence and apologize for my typing error. I never intended to say "reverse split" and, without reviewing my initial writing, failed to see my error.
Of course, it probably should have been obvious (it was to you) that a reverse split doesn't lower par value. I just posted an article this week that says that. But thanks for clearing that up. Really like to get all of this important stuff taken care of.
Item 2. Item 10, page 25, Executive compensation. 2004 - $350,000.00 + $350,000.00 (accrued - in working capital-current liabilities).
However, I moved all close party activity out of my calculation before I said that the company needed $11 million in sales just to cover current liabilities. In any event, whether cash was taken or a liability posted, it was a reduction of working capital. The short term debt was still owed.
You might say now that this is just a paper entry. However, will it be paid? At this point, it is a legal obligation of the corporation.
Do you think that it should be disregarded? If so, why?
Item 3. Look at note 1 at the bottom of the page 8 of 47 in '05 after the listing of the officers of the company. These are committed and recorded shares. The sums are included in the statements.
1 During the course of 2005 James N. Turek loaned Plasticon International, Inc $5,799,849.12 to execute its business plan and acquire revenue
producing businesses. In return for forgiveness of the loan to Plasticon International, Inc, Mr. Turek agreed to accept Series B Preferred Shares
with voting rights equal to 7.3 billion common shares’. These voting rights have established James N. Turek as the controlling shareholder for
Plasticon International, Inc. The loan to Plasticon International, Inc as well as the issuance of the preferred shares was accomplished through
LexReal Company LLC of which Mr. Turek is President and principal shareholder
2 Due to the Series B Preferred shares being issued as a means of debt forgiveness and the preferred shares having an option to convert into
restricted shares, should the controlling shareholder wish to exercise the option, there was therefore a need to increase the authorized shares for
Plasticon International, Inc.
Does it state here or not that the Series B preferred shares that are convertible into 7.3 billion common shares was issued through LexReal or did I miss something here? Now, since we have a total of 13.5 billion shares of common stock approved, does 7.3 billion represent more than half? Then who owns PLNI? JT through LexReal? Or if not, who does it belong to?
Item 4. On the declarative statement about the shares that will be sold, once again, I bow to your diligence and I should have said "probably". After all, we are accustomed to the forward disclaimer on every release that says, might, perhaps, could, etc. as forward looking statements.
Do you feel that the lending institutions prefer to hold risk paper in lieu of cash?
I attempt to interpret the data without a bias. Good financials are fun to read and you can see things coming together. Others are not as much fun because there are conflicts within them that investors should be aware of.
I have no axe to grind and I am on no mission. I have been asked questions and I have answered them.
I said before that I am totally human and make mistakes. Thankfully, the only mistakes I recognize here are errors of transcription that doesn't materially change any of my opinions.
Perhaps you can give me some insight into what you read in these financials. What do you see? What do they say to you?
Please elaborate. I would love to see another opinion based on the same papers. Perhaps gopack could also help. I honestly look forward to some enlightenment.
I can buy the stock here in town for $20.00 - unlimited order, from the broker who has my small retirement IRA. Just a phone call away.
I'm glad you feel good about your investment. I sincerely hope you are right and you do very well.
Just an aside, a company called Johnson Crushers (they built rock crushing equipment) had a patent for a revolutionary new crusher that was suspended in a way that wear was reduced dramaitcally and the cost per ton of crushed rock was supposed to go way down. The crusher had been tested in the field for about a year.
Another company, named Cedarapids, Inc. bought the patent for a very large sum of money (millions). After they purchased it, they found that they had to do some additional work on the crusher to make it viable in the industry. After several million dollars of additional R&D, they finally concluded that the concept was unworkable and the patents were written off.
We also had patent experts. Just as I am an accountant and do know numbers and financials and business, I too have made many investment errors. And I have paid my hard earned money for these mistakes.
I think I will still err on the cautious side and trust what I see from the financial statements and the business plan of PLNI at this time.
As I also said several times, when I feel good about where this company is, I will probably buy back in.
Gopack, you're right. It is the law. My point was that most people don't read the fine print and are absorbed by the grandiose presentation. Hence, many folks that are in the pinks have a false sense of security that is engendered by this type of hype.
A lot of people also think that these pumps are from reliable sources when many times, they are only there for the purpose they say they are not there for.
Sprink, I know that PLNI uses Big Apple and has used many other paid pumpers. I posted one example the other day and shorts said he had posted it before and had the link showing that PLNI paid $40 grand for the write-up. Funny, after the grandiose projections of the company and the future short term and long term PPS goals, there is always a disclaimer at the bottom stating, in essence, that the ad isn't to get you to invest and the information sources are good but the information might not be. Talk about double-speak.
But, if you have nothing else to offer at the time and you want to build a business and you need cash, that's one way to do it. And, if the business goes, it's a win-win. Seems to work pretty well too. Green Barrel and Willy Wonka seem to be doing OK.
CMKX was releasing a lot of their own hype, mostly about what they were doing, what their assay showed, the experts they hired and the other companies that were wanting to invest (some also owned by CMKX), and the expert employees they were able to obtain (Name association). What first scared me was when they began selling off large chunks of their land holdinds that were supposed to be rife with diamonds. They issued some CMKX restricted stock and restricted stock from 2 other of the owner's companies. It cost me $90.00 to get them taken off my account. That was a lot cheaper and a whole lot less work than getting them converted.
Right now, PLNI is at .0036/.0037. Right now, VFIN looks like they are buying for a fill. They are on a .0024 working spread. Or, they could be buying for UBSS & NITE to hold the sell PPS.
NITE & SSGI are on a .0004 spread and UBSS is down to a .0002.
Not sure what all that means yet. Need another hour or so.
I still feel that UBSS is selling large for someone.
Just conjecture (SWAG) and I don't know any more about what they are doing than anyone else.
Nano, I wish I did work for a brokerage house. I would sure have a lot more money than I do now.
I have an account with (Datek, Ameritrade) TDAmeritrade. I don't have a margin account so I can't get myself into more trouble than I do with just buying and selling.
Did options for awhile and slowed my losses during my learning period but no longer even look at options except to try and determine which way a listed stock is headed.
No, Nano, I'm just a very old, retired accountant who dabbles in the stock market and wins a few and loses a few.
I have no insider information, have no crystal ball, and even after many years in the market, still make some very poor decisions. CMKX was an example.
PLNI was a lark too and I was taken in by the hype and bought a quarter million shares at .0074 at first. Fortunately, the stock went on up and I got out at .018 and made a few bucks.
I've been in and out of PLNI several times making money on everything except the last sale where I was in at .0101 and took a $1,200.00 loss on the sale at .0056.
I hope for everyone here and all of the folks who do as I do that PLNI is one of those stocks that hit a buck.
I can't see that happening in the short run or even in the intermediate timeframe but who knows a few years down the road.
PLNI seems to have some products to sell. I don't know where they make their plastic lumber but I see more and more of it being used. I'm going to put it on my deck and replace my Redwood. I'm not sure why because the Redwood would probably outlive me but I like the idea of no maintenance, no slivers and easy installation.
With respect to the brokerage house, they seem to be consolidating and getting larger. I still feel that the SEC should be overhauled and the government should get out of the stock loaning busines, especially on stocks they don't own or are able to borrow. If we did that, we would go to jail.
Big money is always difficult, if not impossible to overcome and it galls me to hear our president want people to place their (life and retirement) savings into a crooked stock market. I use the term crooked here because they don't fit into my personal definition of straight forward, honest, above board operators.
Good luck and invest wisely and when you are sure how to do that, please let me know.
Jim
OK rrm, let me try to handle your questions as I see them.
1. The company did an 8 to 1 forward split. That lowered the par value to 1/8th of the original par but didn't change the legal capital requirement. Then, later, when they increased the A/S to 13.5 billion (forget the interim step), they changed the par value of the entire issue to .001 which, also, never changed the legal capital requirement. As long as the legal capital requirement is maintained, you can change the par value to anything you wish. It is not tied (necessarilly) to the number of outstanding or authorized shares. Never said anything about reverse splits in this posting.
2. Please see the definition of working capital. Cashflow can or might not have any bearing on Working Capital. Cash paid directly can affect Working Capital when no accrual to recognize a liability has been made. By law, all S-corporations must use an accrual based accounting for their financial presentations. Other additional supporting statements like "Sources and Uses" bring the focus to a cash basis by eliminating all non-cash transactons. Once you accrue the liability, the current portion due is part of working capital. No cash has to change hands. Working Capital is the excess of Current Assets over Current Liabilities, which in PLNI's case happens to be Liabilities in excess of Assets which makes a negative Working Capital. That means that to have enough capital to meet their current liability requirements, they are about $1.6 million short not counting any other currently incurred expenses and I also moved the close party transactions out of my calculation. In actuality, if the managers take their money, they need a whole lot more financing just to meet their current financial obligations without additional manufacturing, legal or SG&A.
3. JT has turned the company over to himself under LexReal, his limited liability corporation which now, legally owns PLNI. The shares have been committed.
He had the controlling vote and was in absolute control prior to this move as majority stockholder, chairman of the board, the board and CEO. If you don't believe that, read his statement about the fact that there would be no vote of stockholders for the decision to change anything about PLNI. Court and patents and molds have no bearing on his ownership. He is now in a position to sell shares through LexReal and the scene once again becomes cloudy because of the reporting requirements (or lack there-of) of an LLC. Even if he sells all of the PLNI shares he owns personally, he will still have controlling interest through LexReal. Remember rrm, these are not my financials, they are PLNI's work. Also, Preferred stock at $1.00 par carries some kind of % dividend as well as the conversion into LexReal's controlling interest and also has priority in the event of a disolution and come before common stock. The usual order of payments in disolution is; first, secured assets with UCC's filed by the owner(creditor), then comes the secured notes payable, followed by trade payables, then unsecured liabilities, then, attorney fees, then Preferred stock and finally, common stock. This positioning allows JT to be better covered in all events, good or bad, through his ownership of LexReal.
4. This item implies nothing about insider knowledge. No insider knowledge is needed to know that restricted stock has a one year life before you can sell it (in absence of a shorter agreement)or a conversion from preferred to common that would then become saleable. Look at the financials for the facts and see that a great number of shares were issued as part of debt settlement, to insiders for forgiveness of debt, and to investors and banks. It would be very naive to assume that a bank will continue to hold a risk security that they can't loan money on (bank reserve requirement) when they can turn the asset into cash and loan at a 10 to 1 ratio and make interest from their loans. And, I think that the people who are small investors need all of the info they can get.
rrm, please read the financials before you accuse me of giving my personal opinions with respect to these statement. The writing is PLNI's, not mine and the interpretatons are quite clear.
Also, if you don't fully understand the ramifications of some of these actions, Google up some facts and read up on some of this stuff. I do it ocassionally when I'm unsure of something.
The preferred shares are for what the financials said they were for. To isssue to JT for the purpose of turning PLNI over to Lexreal as the controlling interest and whatever other plans he has for the shares he issued to himself.
If you really read my post without bias, you will not see "faint praise" as you call it. I stated quite openly that IF PLNI IS ABLE TO GET FINANCING AND CARRIES THROUGH WITH THEIR BUSINESS PLAN, THEY COULD BECOME A VIABLE SMALL COMPANY IN THE LONGER RUN. The financials say the same thing, both in the '03-'04 & the '05, that they need more money to carry out their business plan.
I don't "tilt" the post in any direction. I simply stated, in plain language, what I see in PLNI's financials. I have done a much more in depth analysis of these papers for myself and most of what I could post would be of little value to most non-accounting types or folks who have had no formal financial training. Plus, I would probably get more line by line questions that don't make sense to ask if one reads the financial statements from an unbiased viewpoint and try to use the information available for better decision making.
I said yesterday, that I don't believe that we are at the bottom of the slide in PPS yet and when I do feel that we are, I would buy in again and wait for another PR or good pump to take advantage of a short-term profit. I would not, personally, hold this stock long but that is just my opinion. I, personally, never hold pink sheets long. As I also said, a lot of folks have done very well in buying the right pink and holding. I don't know what this stock will do in the long run any better than you or anyone else. But, for this moment in time, given these financials and the ability of PLNI to go forward with their plan without further financing (as they stated in their financials) would be an exercise in futility for me to buy in until I feel we are somewhere close to the bottom. Then, I will buy in again if I feel I can make a buck.
The questions you asked are good questions and I hope that others will read the answers and not ask me to repeat them. Read the financials. Put things together. I would rather err on the side of caution than sit and watch my investment dwindle while hoping for something unexpected to happen.
Nano, you have a good sense of humor.
If you meant aspirations in the sense of; a drawing of something in, out, up, or through by or as if by suction (Merriam Webster), I agree because we've needed that to get any good info from PLNI.
The trouble is, many folks who do hold large (for the small investor) positions in pinks have invested on rumor and hype from pumpers like Green Baron and Willy Wizard and other paid pumpers, several of whom have been posted on this board. One of the paid ads set a one year goal at $6.00 when PLNI was selling for $0.02. They listen to the live broadcasts that are carefully written. They hear the promises of a rosy future and invest their money, hoping to make their lives a little better. Then, they follow the stock and listen to the, oft time, overblown management releases. One of the best lines they use is the size of the industry they are attempting to penetrate. How many times have you heard that such and such industry is forecast to be worth 20 or 30 or 50 billion dollars this year. If I sell $100.00 worth of product, I can still claim to be part of a multi-billion dollar industry.
THESE FOLKS ARE ENTITLED TO KNOW WHAT'S GOING ON! They are entitled to know what a set of financial statements really say.
Some folks have $22K invested and others have more, some have less I suppose and they are all hoping that this company is truthful, has a plan for success and will follow through on their promises. Many are first time investors. Many can't afford to lose anything!
So, to these folks who would like a little insight into what they have spent their money on, I give what I can. Those who wish to keep their heads in the sand are welcome to do so if they so choose.
When I see a company like PLNI that can't cover it's short term debt, one who's manager takes almost half of the needed working capital for wages and bonus, does reverse splits to lower the par value in order to float more stock, positions himself with stock to prepare himself for any event and is secretive about all of the things they do, telling folks about things that they did months after the fact (which I take with your huge grain of salt), I think that the financials are the only small bit of light we can see.
I would like to know more about the Preferred stock issues. What dividend do they carry and how much will JT pay himself before he converts them to enough common shares through his LLC company that now owns PLNI. Is the increase to 6 billion preferred shares on the financials correct or a typo?
Unfortunately, I know first hand what happens when you trust a company and are lied to. I just bit a big one with CMKX.
I just hope that the light that is shed by the input I post will help someone escape the mistake that I made when I was caught up in the hype. I averaged down 15 million shares before I sold at market to recoup about 70% of my investment just before it quit trading. I figure the stock went to pros because we can't bid to the 5th decimal.
You're right. This isn't Enron but I will bet you any amount you wish to cover that the people who stand to lose money here are just as important and just as concerned about losing their money as the folks at Enron. 5 billion shares out with an average of .005 (it's probably higher than that) is $25,000,000.00. That's a ton of money for small guys who work every day for every cent they earn. And those shares that are currently restricted against loans will soon be sold to more small investors who deserve a whole lot more than they’ve had so far.
MM's will bite you everywhere. I also think that the SEC should be overhauled and the DTSS should be done away with. Counterfeiting of shares should be just as much a prison offense as counterfeiting money. The government, brokers and shysters (off-board) who tie up with brokers via 1 page agreements should also be brought to task. But what does the SEC do? They forgive all of the outstanding shorts through 2005 and refuse to tell anyone about how much that involves in dollars. That means that every small investor gets the shaft who thought they had stock backed by certificates when all they had was an electronic entry backed by an IOU that, in a great number of cases, has failed.
Anyway, this is just my opinion and it is not meant to persuade anyone to buy or sell any investment or anything else in any company or asset of any kind whatsoever.
Thanks DTL. You know as well as anyone here what will or won't happen with PLNI, long term. I really hope that they can make their business plan work. It is a simple but feasible plan, given financing. And, as you say, maybe they can hit the PR with a really good release that would make the PPS leap. I think a lot of folks are looking to buy in here if something great happens. Maybe that's what makes the stock market appealing.
PLNI is one stock among many and I have had goods and bads. PLNI has been good for me. I originally jumped in at .0074 and sold at .018 but I never had anywhere near a million shares at that time. Wished I did now but all is easy in retrospect.
I have been in with a million shares but only after PLNI paid for them from my "winnings". I did jump out at .0056 and took a $1,200 hit on 184,000 shares that I forgot I had but I thought I saw the writing on the wall so for me, it was jump. I was in too high on that lot anyway. Once again, in retrospect, it was good for me. It could just as easily, at that time, gone the other way and I would have probably cussed myself out for being such a faint heart.
Now, if I can buy in at close to a turning point, I will go for it again. Right now were below the 50 and 200 day averages and MACD says no and the Stochastic confirms it for me. So, I wait on for awhile yet. The current financials haven't helped my decision much either. Maybe the first quarter of '06 will bring better news.
I will honestly have a short one for you when we hit .007 plus again Maybe we'll both be in then. I hope I wouldn't miss the chance to make a few pennies again myself.
All the good fortune in the world to you and everyone else here! You're a great bunch of folks!
Nano, how do you pick a side and stay with it when a company issues statements that change your mind? These aren't my financials, they were published by PLNI. They have a lot of facts in them and they have to be truthful except where management can interpret something well enough to get a better spin on it and the auditors say OK. I didn't make them up.
I have not given up on PLNI. But, I can't lie about what they say nor can I tell others, in my opinion, not to be cautious right now.
My position, were I long, might be to see what happens but not buy more right now unless I felt strongly that they might do something that is currently not visible to me and I can afford additional risk.
If I were afraid and stood to lose more than I could afford, I might sell and take the smaller loss.
It would depend on each person’s position and their ability to hold. I have made my personal feeling about holding pinkies known but a lot of folks have made a ton of money by hitting the right company at the right time in the pinks. This is an individual thing.
I would be bullish if I were talking about Bluelinx (PLNI's distributor). Their financials look great and their business is solid and trading over $14 (up $0.28 yesterday). I looked at their financials to see if there was any mention of PLNI's association with them for future benefit of their company. They reclassed concrete products from special products to building products last quarter, which showed a loss (from the previous period) of 18% but they said that it was due to veneers and OSB board (Commodity) fluctuations.
Neither of us knows for sure what will happen with PLNI.
And sorry, but I can't stay bullish in the face of facts to the contrary right now. I hope that their business plan works and they become profitable and the PPS climbs.
Would you prefer that I pump PLNI and influence others? Or, perhaps I shouldn't say anything about PLNI and let all of those folks who can't read financials go blindly forward when the only part they can understand is the "Management Discussion" section which gives all of the bullish impetus you can swallow.
To keep from becoming known as a PLNI basher, I'm not posting much more on their financials even though I would love to expound on the debt forgiveness.
Anyway, as I said before, opinions are like belly buttons, we all have one (I think).
Just my opinion.
Nano, you are too right. But, we all know that the market isn't always bullish. In fact, I've read several articles recently that say the short markets are where the money is.
I don't even use a margin account.
Of course, bull markets are what the pinkies are all about, in more ways than one. lol. Have a nice day and invest wisely.