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CNGI(.51)...added to position.....
CTON...accumulated a position......
Picked up some shares of the CTON shell in the 19-27 cent range (50+K shares at an average under 24 cents). This shell looks exceptionally attractive from a risk/reward standpoint around these prices.
It looks like the legacy share position will be roughly 2M shares after the RM target (Life Electric Vehicle) purchases controlling interest in the shell. Just based on what types of legacy share valuations other shells are reaching, CTON probably has a pretty good chance at seeing prices well over the two dollar level.
From the OTC Markets profile......
EVCI(.58)...accumulated a position.....
I accumulated a position in the 44-60 cent range today (28+K shares at an average under 50 cents). Risk/reward potential around these prices looks excellent to me. Absent a major correction in the general markets and/or shell market, I think EVCI has a pretty decent chance at seeing prices above the $2 level.
From my viewpoint, the primary risk is that Ben/Synergy has not yet disclosed the terms/status of the preferred shares that he purchased. I'm taking a chance here that Ben will structure the shell/preferreds so legacy shareholders retain an "acceptable" percentage of the RM target.
I purchased a position in another of the Synergy shells over the last week (BDCM). I did some back-of-the-envelope calculations before buying that shell. Depending on the exact sequence/timing of any preferred conversions on BDCM, the legacy common shareholders of BDCM would retain a minimum of 4% of the post-RM company. I'm hoping to see something reasonably similar here on this shell.
WHITTENHALLJR...not sure about the float.....
PIHG(1.50)...increased position.....
ADMG(.22)...accumulated a position.....
I accumulated a fairly large position in the ADMG shell today in the 12-20 cent range (cost basis is a little over 17 cents). Reasonably nice share structure, basically clean from a debt standpoint, and not followed by many investors. Risk/reward looks pretty attractive to me around this 20-cent area.
Given the types of high valuations ($10-20+M) that the current market environment is putting on a number of shells, it would not seem unreasonable to think ADMG has a decent chance of seeing share prices well over 50 cents.
MTRT...Medium's augmented reality subsidiary.....
I'm still holding my position (purchased at 14 cents) and looking for a break over that $5 level. High risk because the company valuation will be quite high following what I hope will be a reasonably standard post-RM share structure (hopefully legacy shareholders will retain a percentage somewhere around 3% or better).
Two of the more recent blockchain-related shells/RMs (ARA* and APL*) saw their legacy share positions reach valuations over $100M. With MTRT's legacy position most likely under 7.7M shares, a similar type of valuation would equate to a MTRT share price over $10. So I feel reasonably good that MTRT can break that $5 level at some point (assuming the post-RM structure is fairly good).
One of the advantages that MTRT might have over those other two stocks is the potential newsflow that exists because of everything that Medium is involved with. Although it has not got much attention yet from MTRT investors, Medium's startup augmented reality subsidiary (MergeRity) looks quite interesting. That subsidiary alone could probably generate some interesting press releases. It appears that beta testing was scheduled to start a month or two ago.
https://mergerity.com/
shnitz...David Daniels......
I picked up some more shares of QGSI for short-term trading purposes on Friday at a 15.3 rough average. I am looking for a strong push back over the 20 or 30 cent level "reasonably" soon. With the financing news last week, I am viewing pullbacks under that 20-cent price level as potentially attractive trade opportunities.
Although the company has struggled to generate revenue, one thing I find quite interesting is the ability of QGSI to attract some significant amounts of investment at relatively favorable-to-the-company terms. That $1M investment at 20 cents is hard to ignore. And the continued loyalty of the convertible note holders (1-year strike price at 25 cents) is pretty impressive. It looks like David Daniels (who now has about $450K of those 25-45 cent notes) added another $100k when the stock was trading below 10 cents.
One of the more interesting convertible additions during the last quarter was that $100K amount from Hybrid Financial (the Canadian investor relations/marketing firm). In the explanatory column QGSI did not mark this as "services". Whether this note was actually an investment by Hybrid or it was for services, I view this as a somewhat bullish sign by Hybrid.
Definitely getting a "gut feeling" that something significant is approaching (either a major corporate development/announcement and/or a sustained push to a much higher price range). The investments, Govin Misir's involvement, etc., all seem to be pointing toward that. Leonardo Cardoso made a another comment last week about anyone shorting the stock......
Growth potential looks fantastic.....
Traderfan...SEC deadline......
Last couple/few months have been interesting......
I hear you loud and clear. Rest assured, the team is focused on building long term value. We have organized the house and we have an amazing tech. Short term fluctuations is inevitable... anyone shorting out stock will probably have a traumatic experience. 😉👊🏼🚀
— Leonardo Cardoso, CFA 🇺🇸🇧🇷 (@leocardoso) June 9, 2021
Traderfan...thanks for the correction......
VOHO...increased position......
CXKJ(.40)...a couple observations......
NT 10-Q: The 9-month revenue number of $2.1M provided in today's NT 10-Q seems abnormally low to me. It makes me wonder if there has been some type of mistake/confusion made in this filing or a previous filing. I was semi-expecting to see it somewhere above $3M, since the 6-month number disclosed in the May 19 8-K/A has CXKJ's revenue at more than $2.1 million.
Assuming that the 6-month number was accurate, the only way CXKJ could have a 9-month revenue number of $2.1M is if the company basically had zero revenue in the most recent quarter ended June 30. That would seem almost inconceivable to me. Since launching its mobile app about a year ago, CXKJ has been averaging roughly $1M in revenue per quarter.
The CEO did mention in a conference meeting of upper leaders about a week ago that the growing spread of the Delta variant could have an impact on the company. But I think she was primarily referencing the physical store side of the business in the somewhat immediate or mid-term future. The speed at which the physical presence could be deployed or the amount of revenue the physical stores could generate might be impacted.
Nasdaq application and mergers/acquisitions: The company intends to file a Nasdaq application within a year. Mergers/acquisitions also remain part of the growth strategy.......
RM structure: extremely disappointing.......
ASRE($1.60)...expecting forward split soon......
I picked up a few more shares of ASRE this week. Outside of the tightly-held shares available for trading (72K), from an overall structural/fundamental perspective ASRE is fairly unattractive. But I think a pop/spike into the $2-5 range would seem achievable given that low unrestricted share count.
ASRE should be getting pretty close to its 3:1 forward split appearing........
SEC's shell policy: retroactive or not?......
The way the SEC and OTC Markets have handled this fundamental change to the OTC market is ridiculous. Before these two entities set deadlines for implementation, all of the details/minutia of this change is something that should have been worked out and settled on a long time ago. I find it mind-boggling this far into the process that neither OTC Markets nor the SEC apparently have a definitive answer to the question below.....
Does the SEC's new 18-month time frame for shells start after the September 28 deadline, or is that 18-month time frame applied retroactively?
Based on guidance/statements that OTC Markets has made regarding this issue, investors/custodians/companies have been working under the belief that any shell that is current in its filing/profile obligations will be allowed quotations for 18 months after the September deadline. This guidance apparently is based on OTC Markets understanding of the rule and its conversations with the SEC. However, apparently OTC Markets still doesn't actually have confirmation yet from the SEC that its guidance is actually going to be accurate.
This Securities Lawyer 101 blog below (scroll down to the section on shell companies) makes a pretty good point of this. It is entirely possible that the SEC intended this amendment to be applied retroactively. Shells could be completely current/updated in all their reporting obligations to OTC Markets, but it wouldn't make any difference. They would immediately lose their quotations after the September deadline because they have already been shells for 18 months.
Normally I might be willing to place my trust that OTC Markets guidance based on its "conversations" with the SEC might turn out to be accurate. But given how OTC Markets' "conversations" with the SEC regarding the whole Expert Market thing didn't exactly turn out well, I think there are some legitimate reasons to have some concerns here.......
S-1/A items/observations, VIV-CELL store opening......
1) Based on some of the numbers/info in the paragraphs below, I think Q2 will probably continue to be low. Some quick/rough back-of-the-envelope calculations is leading me to believe it will probably be somewhere above $300K........
daiello...CAPV observations.....
splintered sunlight...finished accumulating my position......
MadeBucksOnThis...thanks for the info......
CNGI(.20)...risk/reward continues to look interesting......
Although the previous reverse merger did not get completed, I continue to think that the CNGI shell offers a very interesting risk/reward right now. This stock is pretty much off the radar screens of most shell investors. Definitely high risk because of the dark status, but there is also obvious potential for some explosive moves if catalysts appear here.
I remain optimistic that Joseph Donahue will eventually complete a reverse merger for the CNGI shell, and the patience this investment has required will be well worth it......
https://www.linkedin.com/in/joseph-donahue-75487b4/
One thing that has caused my eye-brow to raise just a little bit is the very recent change in address and phone number on the OTC Markets profile for CNGI. I am unsure of exactly when these changes occurred, but it is possible this happened sometime within the last week or so (perhaps within the last few days). I recall checking the profile page sometime last week, and I am almost positive there were no changes at that time.
It appears the changes occurred sometime after April 28. A Wayback Machine search of the most recent archived profile page doesn't provide a functioning site, but below I have provided a screenshot of Google's cached page from April 28, and it shows the old address/phone.......
http://webcache.googleusercontent.com/search?q=cache:PS8abactckYJ:https://www.otcmarkets.com/stock/CNGI/profile&hl=en&gl=us&strip=0&vwsrc=0
OTC listing celebration in Beijing......
A couple of snippets from the listing party that was held last Friday (May 21) in Beijing.......
A couple observations...Q1, S-1......
Q1: First quarter revenue ($462K) and gross margin (68%) were down from the fourth quarter. I would have preferred to see those numbers a little bit higher, but it doesn't overly concern me at the moment. I'm hoping to see some additional growth/acceleration more toward the Q3/Q4 timeframe. I'm not entirely sure if the products were just recently launched/introduced or if the company is just bringing more attention to them (I'm thinking the former) but, YBGJ-related social media accounts in China the last week or two seemed to be focused on two light-application products (skin/hair treatments).
S-1: It is kind of interesting to note how the intense selling pressure that was being exerted on the stock seemed to significantly decrease as soon as the S-1 was filed on May 6. There appears to be much less interest now in selling under that 50-cent price area. It will probably take at least a couple/few months for the S-1 to be declared effective. It will be interesting to see if YBGJ is arranging for institutional involvement in the proposed $2.5 financing and potential insider sales. I think is reasonable to assume will see increased volume in the stock and perhaps increased corporate activity later this year with the financing once the S-1 becomes effective.
Reply to private message...risk/reward,valuation, etc.......
CXKJ(.456)...final RM structure, looks excellent.....
VOHO(.05)...accumulated a position.....
I accumulated a VOHO position this week in the 3-5 cent range. Definitely high risk, but probably worth taking a chance here given how many of the dark mining stocks have had some pretty nice runs recently. An OTC update, filings, or completion of the Ecuador gold concession acquisition would probably lead to extremely nice upside.
The January 2021 investor presentation for Volcan Mining Limited (a wholly-owned subsidiary of VOHO) provides some information about VOHO's recent business activity/plan. Assuming this plan has been or is still being implemented, VOHO has a new CEO (Robert J Washer) and VOHO's subsidiary will hold the gold concession that VOHO is acquiring and the subsidiary is expected to be listed on the Australian stock exchange (ASX).
Slide 2 of the January 2021 presentation.......
CXKJ(.20)...accumulated a position......
I accumulated a position in the CXKJ shell over the last week around this 20-cent price area. The 2021 Q2 filing should happen sometime in the next couple of weeks or so. I'm expecting this filing should provide some confirmation/update (positive or negative) on the items that were mentioned in the last 8-K: the change in control and possible reverse merger with Kunpeng (China) Industrial Development Company.
I do have some concerns about the status of the reverse merger, but the potential risk/reward here is just too enticing and I wanted to have a good position built. Depending on what the final structure of this RM would look like, I think the potential for some pretty nice upside exists for this stock. This RM target looks extremely interesting to me.
Kunpeng is involved in e-commerce platforms and has just recently started opening small physical stores/kiosks/pavilions. I probably spent the better part of a day last week just reviewing material about Kunpeng. Over the years I have looked at numerous China/Asia companies that were looking to go public through reverse mergers on the OTC. But I don't think I have ever seen a company that documents its activities and existence as extensively as this company. Numerous meetings and corporate developments are covered by text/photos/video.
http://kp-china.com/
https://www.ixigua.com/home/3447664996528823/?wid_try=1
https://dstoutiao.com/html/dsws/2021/0403/97849.html
Q4 advances, subsidiary, social media.......
1) The 2021 Q1 filing should arrive in roughly 2-3 weeks. Ahead of that filing it might be worth noting that YBGJ received more than $750k in advances from prospective customers/distributors during December 2020 (as per the January 14 8-K). I am not sure if this is related to the franchises or other entities but it bodes well for continued revenue/business......
Reverse mergers, splits, fundamentals, psychology......
Name change, reverse split timing......
ECMT(.119)...purchased a position......
Correction to last post......
edesheim...current thoughts on YBGJ......
ASRE($1.90)...website is updating.......
The corporate website for dark ASRE has started to get some updates (either late last week or over the weekend). A section for management and the recently-added advisory board members has been added, with photos and more extensive biographical information.
I still own shares from prior to the change in control and subsequent 1:50 reverse split. Added a 1.7+K block at .85 about a month ago. Currently own 3.75K shares under a $1.05 average.
Pretty high risk investment, but the unrestricted share count is currently less than 72K shares. So the potential for some interesting spikes in the price should exist. Some interesting people now connected to this stock/company......
https://www.astraenergyinc.com/the-team
legacy shares...most likely source of selling pressure......
daman45...ZNNC, no Lazar connection.....
edesheim...Cheung Ho Shun's $750K investment......
2020 Q4 revenue.....