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r/s is envitable, but probably not till late this year.
Have to wonder with only 4 posts so far today, how many actually own the stock and how many are waiting for the right moment to buy in. I'm waiting, just don't feel now is the time to buyin, just my opinion though.
I can understand discontinuing the Q&A, but the current "blackout" of any news or updates is questionable. Wouldn't an 8K be considered a filing? The company has used that vehicle numerous times to update investors, or maybe there's nothing to update since the company's last 8K. Is that possible with all the projects the company has in the hopper that nothing has happened that investors would be interested in hearing?
Attempts to buy at bid (4) may be abit to early, but what the heck, keep trying, you may get lucky.
So we can cheer when that happens?
We're in short supply of LFBG cheerleaders, or is this a day of rest?
Strange trading. Not following the bid/ask, appears to be just random trading.
No trades after the bid went to 4.
Here's a post today from varok regarding funding senarios.
Yes, about the $10m. funding program.
Well, look at it this way. Would you fund a company $10m with such a blotted Share Structure? No I didn't think so.
The way the company is diluting shares at a rate of 100m per week and now the O/S is at over 6b, which leaves 4b left in the coffers. At the current rate 4b X .0005 is $2 million that the company can raise until the total A/S of 10b becomes exhausted and then what is left for the company to do. If the company continuous to dilute at the rate of 100 per week until Sept (the funding becomes active) will leave 2.8b shares left in the coffers. When one does the math at 2.8b X .0005 = $1.4m to raise..Hardly a figure for a $10m funding program.
I still believe that the $10 m funding program is an Equity Financing Package that will be tied to shares verses cash..The company gets a money draw from the financier and the financier gets shares to unload and if the dilution stay's on course at the current rate, will only leave $1.4m to raise.
Now back to the entity funding $10m..Only 2 alternatives can come about this funding. First the equity financing package mentioned above and this is nothing new, but the other one that many on this thread thinks what it is , is that a funding company (entity) funds LFBG $10m as a loan and this will encompass a whole new direction. Meaning the financier will have knowledge that the company will become profitable and is willing to pony up..This one is a tough call and I don't think it will work this way.
I believe the company will on it's own, generate cash through retail sales of the remaining 10b A/S or as much as necessary and then institute a R/S and bring down the O/S to an attractive level and possibly keep the 10b as A/S, bring in the Equity Finance Package and draw on the monies as need, thus begin selling shares, but this time through the financier unloading as mention above.
In short. The funding will be tied to selling shares for cash and not a full loan..I doubt any financier would put millions in a company with not stellar financial records so the alternative is the Equity finance Package, but when? Before the R/S or after the R/S. I think after and maybe before Christmas, since this is the strongest avenue to sales than any time of the year..So Sept, we may get the R/S and then a Funding package for Christmas promo.
Have a good day
Varok
If there is at some point a r/s are restricted shares involved: Here's an explaination:
"In most cases it does effect the restricted as well..However, it has been known that with many companies especially down here in the pinks, the company will unrestricted the stock before such a move and allow the holder to unload..This does not mean that when shares become unrestricted is a telling tale.
Many companies that have issued restricted stock and I have been given restricted stock from companies and they are automatically unrestricted in 12 months if the company does not file financials like down here in the pinks. However, if the company is a filer, like LFBG, most restricted gets unrestricted in 6 months..
Now with that said, it has to be noted the companies can elect to have certain restricted issues with requirements, but in most cases, yes they are effected with a R/S, but that is determined by the by laws of each restricted issue upon the issuance of the restricted stock".
Here's something has hasn't been surfaced in quite awhile regarding the $10M funding. Will LFBG have to print up more shares to pay for this funding. The last I heard the funding goes into effect sometime in Sept. What will the discount rate be on those shares?
There is approx 45M total size on the ask. Total size on bid is approx 18M.
Agree with you pack. Company has so much working for it, in addition to a strong business foundation.
Strange how a stock that appeared to have so much short term potential flamed out. What's next....a r/s. That would about sum it up nicely.
Here's a fairly simple question: What do we CURRENTLY know about LFBG besides it has a product? Future endeavors do not count, only current substantiated facts, i.e., financials, sales, monthly burn rate, etc. As this is a transparent company I'm sure this information is available somewhere.
Where's all the enthusiasm?
We also need written articles about the non-vapor e-cig as it appears articles are focused mainly on vapor e-cigs and very little mentioned about non-vapor e-cigs. One poster recently mentioned the company needs more than just selling the e-cig on their website. I realize it's just a start and they're testing the sales of their product, but shouldn't wait to long before jumping into the main stream.
The more contraversy there is about vaper e-cigs the better for non-vaper e-cigs. How could any public place deny a person from holding a e-cig with no vapor, plus it doesn't draw the attention as a vapor e'cig. It's expensive but SFIO should begin an advertising campaign about the non-vapor e-cig and the advantages over vapor e-cigs. There has been so much talk about vapor e-cigs many are probably unaware that a smokeless e-cig is available. Just my opinion.
The total size of the bid is over 100m, the ask size is over 6m.
4's on the bid are stacked and ready.
varok, thank you for your objective analysis. Many here appreciate your professional input and regard it as credible information.
They will probably begin hitting the bid shortly now that it's built back up.
That will change in the morning, no worries.
Nice article on Ecigs today.
http://www.thehealthyconsumer.com/
Ok, here's another varok post.
Good Morning Bill,
The advantage to do a R/S brings the fair value to a more reasonable and ROI for shareholders.
A R/S only effects the O/S and in many cases the A/S as with LFBG can remain at 10b.
Also with a highe or balloning O/S in the case of LFBG is one reason why the share price is in the gutter and that will not change much even if rev grows.
Remember it's all in the MC..Right now the MC and fair value is on 5,738,899,732 = $2,869,449.87 now look at rev for one year term and this share price is trading just about right. If the rev grows and the dilution continous, it will only complicate and stall the rise in share price.
Have a good day
varok
Following is from varok today:
Good Morning Bill,
Yes, I read that Troy isn't tapping the next round of additional 5 b A/S.
This doesn't mean anything and you can very well see that the O/S increased to 738,899,732 additional shares that came right out of the treasury, raising the O/S to 5,738,899,732 as of May 23rd.
This is business as usual in the pennyarcade..Most companies do this and why many companies have a gag order in at the T/A. Many companies just don't want shareholders to know they are increasing the O/S . Fortunately for LFBG shareholders there isn't a gag order..
The company can without filing form 4 when it feels they have the need to sells shares from the treasury/A/S.. They got approval for 10 b and the company can draw from that pool at their leisure to run operations..
The only time when they need to file is with respect to insiders and this is because insiders have direct knowledge on the inner workings of the company and the need for shareholder and others outside the company when they sell..When insiders buy or sell has much meaning on the direction of the company and this must be open to the public.
Also, if the company hires a third party to promote lets say a stock promoter and the company gives them 100 million free trading shares, this too can go under the radar without filing.
In many cases the company like lfbg gives out shares for services rendered. This too can go under the radar and comes out of the A/S ledger.
Look at all the games that went to Wal-Mart and other accounts and the games cover. These companies that provided this contract did it for monies and as we know, the company is strapped for cash, so the only option is for the company gets the bill from these firms, they in turn, the company, will sell a block of shares in the open market to pay for these accounts receivables..
Wal-Mart gets the games and the company usually won't get paid until 45 to 60 sometimes 90 days..
The company has operating expensive phone payroll electric ETC all comes out of extracting shares from the A/S ledger.
This is a pinksheet company and much of the regulation that applies to higher exchange companies, just doesn't apply in the pennyarcade.
Pennyarcade companies draw from the Treasury every trading day without filing.
The question to ask Troy. Why is the O/S increasing at an alarming rate and where are the shares coming from? I know the answer and it is plain and clear that it is coming from the Treasury. Afterall, they just got the approval to increase the A/S to 10b and they were maxed out from the previous figure of 5B and now we are up an additional almost 800M..They have to come from somewhere.
It also could be conversion on warrants or preferred, but still.
It's all dilution.
Have a good day
varok
http://www.stockmarketquarterly.com
Do I understand you correctly that the extra 5B shares has not been played yet?
noquit, Troy didn't say he was not dumping shares onto the open market. He said the company did not have "Treasury" shares they could sell on the open market with first notifying SEC. With that said, how are the 5B shares classified that would allow them to be dumped on the open marekt without notifying SEC? Am I overlooking something here?
That's good he's paying his obligations. He sez the "company" is not dumping shares on the open market, so why doesn't he just tell his investors what is causing the on-going dilution. Anyone how he can dump the 5B without having to report to SEC? These shares being dumped on the open market has to be coming from the additional 5B shares.
Ok, that sounds reasonable. Then the question remains, who is diluting the stock on a daily basis that is increasing the O/S balance. The fact remains that the O/S share balance cannot exceed the A/S 10B, therefore, who is using up the additional 5B shares, or better yet, how is he doing it?
Would have to slap it for 40.4 million to move it.
bill, the "B" was probably dropped, suppose to be QB.
17, yes he does.
Jobenny, you might want to wait. As it stands now the 0.0004's doesn't show much support. You will have time to average down to 0.0005, but I'd wait to see the 4 support first.
Thank You Varok.
Chance to average down quickly approaching.
playfullyhappy, that does make sense, believe that is what noquit was saying. Guess there's really noway of knowing for sure.
Scott, I can understand the dilution process, it is a necessary evil to raise capital for many financially strapped companies. Many companies do it, not just pennies, but big board companies as well.
You're right, the company did not start out as an IPO, but I don't understand what that has to do with the current subject. That's ok though, I'll keep quiet now.
noquit, you're right, insiders cannot sell privately owned stock without notice. In this case though the 5B shares is not privately own by an individual within the company. I do believe the company can dispose of these shares without giving notice. The O/S results are reported in the quarter report. We do know in the past couple of month the company disposed of 1.3B (give or take)shares without notice, why would it be different now?