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SEC must have my ears:
"A loophole in Nasdaq’s rules is under scrutiny after a roller-coaster ride in the stock of one small company highlighted how firms can go public without ample shares to trade. Phunware...
...As soon as this week, Nasdaq will move to close the loophole by proposing to exclude restricted shares from the number that firms need to qualify for a listing, according to Nasdaq spokesman Joe Christinat. The Securities and Exchange Commission would need to approve the rule change."
Source: https://www.fnlondon.com/articles/nasdaq-loophole-fueled-3750-rise-in-software-stock-20190213
I just finished saying today in the post I'm responding to, "If I can't sell, NOBODY should be able to sell. In fact, if you ask me, the SEC should demand that all shares come to the table at once, fully registered, and keep things simple. But such logic would probably require regulation."
Well, duh! Logic 101. Deregulation is NOT good for business. NOT good for trust. NOT good for clarity. The SEC IS REGULATION. Thank you. Thank you, SEC. It should eliminate the runarounds too. And Price discovery, a macroeconomic concept, can be true price discovery. I haven't had discovery yet.
I still like the warrants though.
8000 more warrants, sealed and delivered:
I like the expiration date. I also this like the Calls I have on GE, which expire next year. Options that call Tusa, the Bear of GE, out on the floor. No matter what happens, my immunity to Tusa's pessimism is in those calls. If he's right, I'll be more right. And if he's wrong, I'll still be right. But nobody cancel my options, unlike here. Same logic applied here.
So, again, Phunware, don't call these warrants in. Please. Just say no to the CFO if he even wants to discuss it. Pretty please...
02/13/19, 1:48 PM EST
Buy 578 PHUNW Executed @ $0.62
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02/13/19, 1:48 PM EST
Buy 217 PHUNW Executed @ $0.626251
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02/13/19, 1:48 PM EST
Buy 134 PHUNW Executed @ $0.6199
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02/13/19, 1:48 PM EST
Buy 539 PHUNW Executed @ $0.626251
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02/13/19, 1:48 PM EST
Buy 812 PHUNW Executed @ $0.6199
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02/13/19, 1:48 PM EST
Buy 508 PHUNW Executed @ $0.626251
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02/13/19, 1:48 PM EST
Buy 797 PHUNW Executed @ $0.626251
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02/13/19, 1:48 PM EST
Buy 70 PHUNW Executed @ $0.6199
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02/13/19, 1:48 PM EST
Buy 630 PHUNW Executed @ $0.6198
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02/13/19, 1:48 PM EST
Buy 184 PHUNW Executed @ $0.626251
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02/13/19, 1:48 PM EST
Buy 385 PHUNW Executed @ $0.6198
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02/13/19, 1:48 PM EST
Buy 370 PHUNW Executed @ $0.62
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02/13/19, 1:48 PM EST
Buy 245 PHUNW Executed @ $0.6198
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02/13/19, 1:48 PM EST
Buy 370 PHUNW Executed @ $0.6198
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02/13/19, 1:48 PM EST
Buy 500 PHUNW Executed @ $0.6
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02/13/19, 1:48 PM EST
Buy 1042 PHUNW Executed @ $0.6
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02/13/19, 1:48 PM EST
Buy 39 PHUNW Executed @ $0.626251
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02/13/19, 1:48 PM EST
Buy 52 PHUNW Executed @ $0.62
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02/13/19, 1:48 PM EST
Buy 158 PHUNW Executed @ $0.6
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02/13/19, 1:48 PM EST
Buy 370 PHUNW Executed @ $0.6198
Okay, Phunware. You didn't have to talk to us. I've cooled down. I am emotional, but I do thank you for answering the questions. You are consistent and they are answers. They are good answers.
I'm going to buy more warrants today to see how they play out over the years. I hope you don't cancel them IFFF the stock falls below $11.50. Anything could happen here. Your CEO seems emotional based on his Twitter letters that you linked us to.
Maybe that's what needed with the Mark Z's out there. And if the common falls to $1, I'll consider that a gift and give myself a net cost of $2.00. If the stock goes to $1,000 per share, I'll deal with President Trump, the world's biggest troll, myself.
Nobody knows how the cards will fall, I'm going to play them to my advantage. It is a true story that I did call a firm to look at this. They were already on the phone with me for a different matter. But there is no harm and looking, and I don't htink they'll find any wrongdoing. Like I said, it's not an attack. It's more like, why am I getting the runaround which you finally ended with a real answer. The pursuit of truth is not a fear for anyone adhering to it, like myself. It may not be pretty, but it truth always prevails.
I'm starting to get angry at my investment in Fineqia (FNQQF) instead for putting a value on your stock in that price release IFFF they were to exercise their options. But what options if "nobody in the world" can exercise them? So, I feel hoodwinked there. Maybe they were counting chickens before they were hatched. They invested in your company. They never mentioned you before that I can find. Never. Until you became a $100 stock, and then suddenly, they pulled you out from somewhere in their pockets. And that is actually what kinda makes me mad. And I don't think there is price efficiency here yet, but we shall see what comes out in the shake when the entire market is able to participate in PHUN. Hopefully, those whose job it is to do this at the SEC are not playing on FaceBook and can expediate this. Wouldn't hurt to call to just say, can you put a rush on this, can it? I mean, I'm sitting here waiting. And waiting, and waiting, and waiting... First the govt. shutdown, now this.
And since your CEO seems to have the ability to think outside the box and seems to me to be very emotional and sensitive person yourself, I like that. I'm emotional too. For decades, people like these Yahoos here always said, "don't get emotional with investments." For decades, I've asked them for a peer-reviewed study that could support their claims. I'm still waiting...
In the meantime, I found this interesting article here that suggests quite the contrary. I stumbled upon it just a few weeks ago, in fact. I always looked for a study to support the vacuous claims of my colleagues here, but never could find one. Then this fell into my lap while not looking for it:
https://hbr.org/2007/12/hotter-heads-prevail
I hope your firm doesn't decide to call those warrants in. I like them better as a long position. It gives me the option to buy or sell at any price of my choosing with no repercussions. Complete freedom. And that's what I like. Freedom. Which means, recognize my rights and don't let somebody cut in line. Which I thought was happening. If I can't sell, NOBODY should be able to sell. In fact, if you ask me, the SEC should demand that all shares come to the table at once, fully registered, and keep things simple. But such logic would probably require regulation.
Thanks for listening, and thanks for the feedback and answers. That's the hallmark of a good company. If I have questions, I want answers. Not the runaround. I want real, honest answers. I don't want to have to go to the CEO of the company. If I could have a direct line to Dr. Spock, that would be great.
And, no, to that person on Seeking Alpha that told me to be quiet. I won't be quiet. I'm going to exercise my Constitutional Rights too. I don't even care of President Trump tells me to be quiet. In fact, I'd suggest he be wise not to tell me to be quiet. If I have a question, I'm going to ask. And I'm going to ask and ask and ask until somebody gives me a sufficient answer. And if I don't agree, I won't agree just for the sake of agreement. I don't want for President Trump. I am not his yes man; I'm not your yes man.
Thanks again,
Holder of PhunW Warrants
Thank you. In that case, I'm going to call Etrade today and try to exercise. And tomorrow and the next day and the next day after that and the next day after that. Maybe they can install a special button exercise button just for me so I don't have to keep calling.
And since you are on the record as saying nothing nefarious, I'll take you word for it. And if any investigations turn up anything that states otherwise, I'll be on the record as trusting your word. And I'll want compensation.
So in that case, I'll buy another 5,000 warrants today since I can't buy them online. Which makes me think people are looking at this entire operation as shady. So I'll go on recording again, and state that PHUNWARE assures me that nothing nefarious is going on.
So if Fineqia and others exercise at $4.00, below my exercise price, and the stock crashes to $1,00, I'll buy your shares at $1.00. But don't fail me and others. Walk the talk and produce value. And reward shareholders. And reward me. Don't give me lip service, just produce! And quit arguing with journalists and start focusing on the fundamentals here. Produce value and then nothing to worry about.
Thank you and have a nice day.
TOGL Position Closed
Sell 8110 TOGL Executed @ $0.78
02/12/19 | 11:05 AM ET
Sell 1000 TOGL Executed @ $0.82
Proceeds = $7,100.
Tired of waiting. Don't know how the cards will fall. They are very, very late on the 10k. I don't like the sound of an r/s. It may do very well soon, but I just don't know how the cards are going to fall. Just tired of waiting and time to move on to greener pastures.
Is PHUNWARE a Scam and did Fineqia Did get Sucker Punched?
Could you explain a new concern to me, Phunware, please? I did contact a firm to research this.
Could you tell me if this is a true statement from mc88 below:
mcg88
Comments109 | + Follow
Investigate what exactly? That is not how any of this works. SEC does not instantly approve reg statements. Could be weeks/months as it gets reviewed by staff, amended and finally approved.
Source: https://seekingalpha.com/instablog/6967401-edge-lab/5255620-money-lying-corner?v=1549940623
Is it really true that it could take weeks or months to be the S-1 to be reviewed by the staff? And if so, how come that isn't disclosed in your Q&A that you are presenting to investors? How many weeks or months is normal? Or could it be years? You let people go all month long about a govt. shutdown being the cause? If what MCG is saying is true, I find it odd that you wouldn't say registration in and of itself is not enough.
And how come sophisticated investors at Fineqia (FNQQF) are saying their warrants are convertible to freely trading shares? How can they have a value if they can't be exercised? Is that why the market is yawning at Fineqia'a press release? Those are financial geniuses over there, developing a blockchain website for trading none other than sophisticated warrants and such.
This press release in particular is what I'm referring to:
https://www.prnewswire.com/news-releases/fineqias-announces-value-of-shareholding-in-nasdaq-listed-phunware-300781387.html
They don't get to sell before me, right? That wouldn't seem fair. Are they able to sell? Are they stuck too like me, unable to exercise the contracts I bought with terms that are not being honored?
I've asked a firm to research it and they said they'll get back to me with me They are interestd. It doesn't seem normal to me. It doesn't feel right. It feels very shady.
It makes me wonder if this is the scam: Selling $100 bills to investors for 80 cents? PHUNW for 80 cents, legal tender for over $100 per share. Yet these legal tender notes can't be closed on. I can't close on the deal. Nobody can close on the deal. Yet I signed this contract. I was on recording with ETrade as they explaiend the terms to me to make sure I understood. I understood everything they said. Then they themselves seem confused as to why they can't exercise them for me. They have vague notes about a shutdown being the *possible* culprit. I feel like I'm talking to Charles Ponzi. As he smiles to me, saying he invested my money in foreign stamps as he redeems the face value as this great arbitrage. Only thing is, he actually gave people their money when they tried to redeem their money. He was just using others' money to do it. But who is going to pay me for my legal tender notes in PHUNW?
What is the full disclosure on what is required for investors in PHUNW to exercise their rights? Do they truly have rights or are these phanrom rights, another loophole found in deregulated markets that this SPAC vessel is taking advantage of? Is this truly job creation or another way to screw investors?
WHEN CAN WE EXERCISE OUR RIGHTS? Can you give a straight answer please, and not pass the buck? Everybody is getting the runaround. Everybody is fixing blame but nobody is fixing the problem.
Thank you to Alan for all the rebuttals on twitter and going on public record stating insiders can’t sell for some months if I understand correctly. This is unorthodox but interesting. I want to be a shareholder.
I just want to exercise 1000 shares. I’m small potatoes. And then I want to buy more phunw to buy more shares but go long on those. I’m not a threat. I just want to exercise my rights and the stock can handle me. I do love your coo’s explanation of the company on YouTube in an interview he had back in September. That was English. He explains things well at my level of crypto understanding which is very elementary.
I asked for a second opinion on the warrant holdup but it’s not an attack. I just want whoever has it sitting on their desk to do their job. Somebody is slacking and I don’t know who. I want a rush put on my request and I want somebody to do a thorough investigation. Somebody is going to lunch or on vacAtion or playing on Facebook at work when they should be registering my shares. 6 business days already and counting.
I do want to be a long shareholder on the edge of a big new paradigm shift in consumer power. I want to be paid on phuncons by people targeting my business. I want control over my data and I don’t like mark z or his army of Russian trolls and hope you spank him good. Feed him to the sharks.
I love the concept. I hope we get some good reputable sources for rebuttals. Truth will come out in the shake. Just prove them wrong with results Allan. And speaking of results can you focus your wrath on those holding up my destiny? I want to exercise 1000 warrants. That’s all. I don’t think that’s asking for much.
Thank you, Phunware. I'll keep following up each day, which Etrade suggested I do. They did suggest it may be because of a backlog from the govt. shutdown, to be fair.
This is what happens to our country when you vote for Trump. I'm sorry. I hate our dysfunctional govt. I need to direct my anger towards the Trump administration and vent this anger properly.
I do appreciate your feedback.
Hi phunware. I just got off the phone with etrade again and I.cant exercise my warrants through this respectable broker because they are saying the shares are not registered. I got the phone with them
1 minute ago. Can you please call them and get to the bottom of this. It’s very annoying
And concerning and I know or can’t be just me. I want to exercise my rights with this contract I purchased
From your company. It’s making me nervous and angry at the and tkme that I can’t get my contract
Honored. My next step is to call a law firm that specializes in class action
Securities fraud. I know exactly whom to call. I just want what I buy to be honored
You can call the number I’m calling at etrade corporate action division
800 661 4587.
I would appreciate your assistance in anything you can do to
Expediate this matter
Thank you for your response, Phunware. I'll check the Twitter out later today. I appreciate a company responding and answering concerns. I appreciate you!!
Great article on HLIX on Seeking Alpha:
https://seekingalpha.com/article/4239706-helix-tcs-acquires-amercanex-international-exchange-cannabis-trading
Finally some attention. It's about time somebody wrote about us. Any attention is good. This explains legitimate fears out there. Fear is good. I like to buy fear, not greed. It's not folly though. It is legitimate. The question is, do you believe? I do.
Oh, and I think we all know what #$#@ analyst I'm talking about in my response. That jack@#$.
Do it. I dare you. Part 3 of 3 will be initiated afterwards.
A Scathing Article on PHUN
https://www.bloomberg.com/opinion/articles/2019-02-07/market-s-best-performing-stock-phunware-is-a-coin-and-a-prayer
This is the first reputable source I've seen give an opinion on PHUN. I embrace it and it echoes many of my valuation concerns here. I am not a fan of deregulation, so if this burns a lot of people that voted Republicans into power, then poetic justice has been delivered.
If I were to exercise and profit from their misery, that would be a two-punch retribution. Or, the market may disagree, in which deregulation would be "confirmed" until crisis. But crisis is important. It's a very valuable lesson many people need to learn so they can adjust their beliefs and behavior and vote appropriately in time. That's the bigger picture in play here.
Find your safety zone and buy back in, Strattick. Amazon used to trade a high valuations and I missed that boat completely with Warren Buffett. I don't understand PHUN as a company. Warrants also deliver a lot of cash. You can have hungry wolves wanting to buy at $40.00, hoping for a crash.
There are several ways it could play out. So many time lines. I don't know how the cards are going to fall. It's more fun to be on the boat than off the boat. Play it safe and feel good no matter how they fall.
Hi Stannick,
I certainly don't want to scare you out of your warrants. After all, I have 2,000 and willing to lose it all. I would have kept what you can afford to lose to see what happens. Or buy back something small that you don't mind losing.
Those are possible outcomes. But probable or possible are not absolute. And improbable events are highly probable and happen all the time, which layman usually describe as "miracles" or an act of God. Well, actually, many describe any outcome as an act of God. Any outcome will be part of his plan. Problem solved. You'll never see an amputee wake up with a new leg. Maybe, in some remote highly improbable event, he could somehow grow one back, which would not be a miracle. Maybe, if something lost millions of years ago was found somewhere deep in his dna. But even that would not be a miracle. The former, yes. And good outcomes have better odds than that here.
Nobody knows the future here. We are all speculating. The truth will come out in the shake. I have theories right now and more than one. The conclusion hasn't been delivered yet.
But back to Phun. It's possible that they won't send the letter. If they do send it, you'll have 30 days to exercise. Could be a question of do I want PHUN at $11.50, which went into its IPO at around $10? PHUNW is probably priced on all those fears. I bought fear. PHUNW is about fear, PHUN seems to be about the second coming.
To me, this adventure is worth it with a good balance of warrants. That's all relative to your expenses and whatnot. It would be terrible to miss the boat since we can't absolutely rule out anything yet. I'm going to get an answer soon enough. PHUN may decide its in their best fiduciary duty not to issue that letter so that they don't initiate a bank run. There are no perfect answers. Different intereprations. And I don't know if volume is going to dramatically increase at $30. Or even $15. I don't know that it will drop below $11.50. I'm only hypothesizing that that might be a reason why PHUNW is priced like that, as if it was. What I have are theories right now. Just trying to interpret the data. Etrade spelled out the terms for me, making sure I understood. Nothing different than anyone here. I was told yesterday that there seemed to be notes aobut a delay due to a govt shutdown. But weird that they had no information. Consistent with the testimony here. They are researching it is all. They don't know more than you. Or me. But contracts have to be honored. Nothing nefarious yet. They had to be legit enough to get passed all the hurdles out there to trade legitimately. I would not panic. It's just weird to me at this point. Really strange. Too good to be true, but that's a wise bias and not falsification.
I personally would be fine with a "bank run." I just don't want the letter. If I exercised half my warrants and keep the other half, which is the plan, and it crashed below $11.50, I'd have 1,000 common below $11.50 and 1000 warrants till 2023. I'd then have that new "exercise" price of the common. I just don't want the forced sell, but I could roll with the punches. And IFFF that is a fear keeping the price down, then that was gift. I bought that fear. But that IFF is also speculation. I can't read Mr. Market's mind here. I don't understand the mispricing. Nobody seems to. Not even my own broker.
That's why I'm moved to an experiment here. I'm conducting a real experiment with my own money. It's not scare you out. Stick with what you believe and don't forget the reasons you came first. Just don't take more risk than you can chew. The only reason I didn't buy 20,000 warrants is because of your fears and others. I'm just testing the waters. 2,000 is a place wehre I could profit hugely, and it's a place where I lose no sleep and have no worries and I could lose it all. That's good poker table money right there. Don't put me on the poker table with something I fear losing. Put me on the poker table with this!!! There is no downside, only upside. :)
Not Exercisable as I expected.
Now I have my broker's corporate action division researching the warrants to get back with me as they have no information to exercise, being that the shares are not registered yet. Which is what we know. They will call me back by next week. Perhaps there is fear that they will not honor their contract, but I don't think so and I didn't bet the farm.
We are going to get to the bottom of this and put this theory to the fire.
The company may want to put PHUNW at the end of the line and let Fineqia and others have their cake first. IFF that is an option at their disposal. I don't know Their a lot of hungry wolves here that want to feed. But I don't know, just speculating, which could be part of the reason the price is so low. The price is low for a reason. It's trading on what I consider high volume too. So, we are going to discover the truth. This is a discovery process in motion. I only want to exercise half my shares, 1,000, at first when I have that opportunity. Test the waters first.
They may not want to put us in the back of the line and might not even call them. Another possibility. Maybe they don't want to incite a rush to the exit. There are benefits to a high stock price for all as well. There are so many ways this could play out. But the price is low for a reason. We are going to learn something here. Stupidly inefficient is one possibility of many. But not necessarily the only one or most plausible one.
Unless, of course, PHUN calls them in for a penny. Which is their right if they choose to exercise. But they do need to be exercisable and we do need to be given 30 day notice. And we do have 30 days to exercise if we choose to. I have the power to exercise. I have the funding if it comes to that.
That would be a forced exercise, like Mr. N is saying. Like blackmail. Exercise or surrender to me for 1 penny. That probably is why they are priced low. It could be uncertainty around the value and what happens if everyone is forced to exercise. Can a low float-low-volume stock handle that? That's got to be the reason in my opinion why they are so cheap. But, it's a good and valid fear. I like it.
But if the common collapsed and warrant holders were forced to buy at $11.50 or lose their rights, they still come out better than the common. No matter how the cards fall, I think PHUNW holders are more powerful than the common.
These guys are amazing.
Set 2024 Into Stone
Another way to look at PHUNW is that if you are long on PHUN, you get a guaranteed discount. No matter what happens at the end of December 2023, you have the right to buy PHUN at or under $11.50. It's a way of saying you own *restricted* common, but so restricted you can't sell it until the year 2024. If it's $6.00 at that time, You'll have this hundred-dollar stock for $6.00.
Unlike the guys buying the common now for $150, you don't need to decide your out-of-pocket until the end of 2023. You don't get to participate in dividends, but there are no dividends. Although, you could choose to participate if such right becomes available. IFF you feel like it. You don't get to vote, but does your vote really matter? Or does your mouth matter more?
If anybody ever tells you they are long and strong on PHUN, you can always rest assured that you are long too, but stronger. Much, much stronger. You don't ever really have an expiration date.
I bought LEAPS of GE last year at the $10 strike, which expire in January next year of 2020. I bought them when GE was $11 something, paid maybe about $3 for the rights. Total cost of $14 for GE IFFF I exercise at expiration. I didn't buy them to trade. I bought 10 contracts (equal to 1000 share rights) as a right. As a contract, a claim to someone's property in the future. Guaranteed IFF I want it.
My reasoning: If GE falls to $5, I'm guaranteed GE at 5 in 2020. If it rises to $20, I'm guaranteed GE at 10. I'm guaranteed, absolutely, unequivocally, that GE is mine at 10 or LOWER. Either or, matters not. The market is rattled, but not me. I don't care how the cards fall, and I have no out of pocket to speak of compared to longs there. They worry, I sleep. In the meantime, GE had fallen to $6, but has recently risen over 10 again. Doesn't matter to me. I'm buying GE on the cheap in 2020. And I'm not going to lift a finger or work. GE is going to work its butt off for me, 24/7. I'm going to do absolutely nothing in 2020. And if GE is over 10, my right will automatically kick in and Etrade will automatically exercise them for me. Not a finger lifted on my end. Or, if it's lower, then I actually have to hit the buy button. But my bonus for that work is that I'll get it even cheaper.
As long as PHUNW is legit and real, and Etrade is legit and tells me it is, this is a better deal. It has a longer expiration date to those GE rights and are much better than what I paid. I'm guaranteed PHUN at $1.00 in 2020 if it falls that much, but my total out of pocket would be $1 plus my PHUNW cost. There is no downside here at this price if you want to go long on PHUN. And that's the truth. Why buy common now when you can just lock in a price? It's what Warren Buffett did with his warrants on Bank of America, essentially. Which paid off big for him.
Rather than paid $300,000 for the common right now, and signing a contract that I promise I will never sell for 3 years or I go to prison to be fed to the sharks. Wait, come to think of it. Warren Buffet said if he buys a stock, he thinks to himself: Would I buy this if the stock market was shut down for 5 years? If the answer is yes, then I buy. Well, this is exactly that question. If the market were shut down for 3 years, would you pay $300,000 for 2,000 shares here? I said no. BUT, I would pay less than $2,000 for the common that I must fork over either market price in 3 years or $11.50. Whichever one is lower. Or, I can even change my mind and do nothing and have no consequences. Unlike Warren Buffett that said yes and is out of $300,000.
Nothing wrong.
I just got off the phone. Wasn’t as long as a wait as
I feared. Great customer service at etrade. Nothing
Wrong with it. The broker I talked to doesn’t understand it
But he put me on hold. He said etrade just wants people
To know the risks is all. Flagged he thinks because it’s trading
Under a dollar. And we spoke of that here. There is nothing
He knows that we don’t know.
So I said go ahead and put me down for 2000 warrants
Tomorrow since it is after hours now. He said my order
Is in. I’ll just test the waters. I theory it sounds great.
Every time I say in theory it comes back to bite me. Lol.
Let the cards fall where they fall
To be fair, there may not be anything wrong with PHUNW. I'll never know for sure until I call. I just don't have time right now.
It could be a case where many Etrade PHUNW holders tried to exercise and made a fuss. And perhaps Etrade made a decision to not take online orders and make sure they are directed to someone that can tell them they can't exercise until the shares are registered. Which *maybe* that S-1 filing did, but I cant' even be sure of that because this is a labyrinth of warrants. PHUNW is just one nut of many.
OR, maybe it's something else. Still a mystery to me.
Etrade Overruled Me.
I tried to buy a 1,000 warrants, but my broker gave me this message:
"Opening orders for this security cannot be accepted online at this time. For assistance with placing this order, please contact Customer Service at 1-800-ETRADE-1 (1-800-387-2331)."
I'll call later. That's odd. They let me trade anything. You can be grey market, delisted, 5 billion shares, with a skull and cross bones/buyer beware sign, and they'll let me buy you. I can do covered calls, any options I want. Unlike Merrill Edge, which gives you no edge, I don't have restrictions.
Something just doesn't add up about PHUNW. I don't have time to go through a labyrinth of phone operators and elevator music right now.
A bank run. I think that's the best explanation. The market is imperfect, but not this imperfect. The IPO was only valued at $300M. The sales are 20% of that probably, and everything is still speculative. It may be growing, but this is going to be so dilutive. They will have a burn rate, but I don't know how bad. But can we stay above $11.50? Blockchain and coins have actually lost intrest with the market. Many scams popped up around it.
I trust the integrity of Fineqia's management team. I think they understand what they have is overvalued right now. But they only invest in integrity. I trust their endorsement, even though the market profiled them like a black man driving a white bronco. This was their press release which was the impetus that made me look at PHUN in the first place. Nothing said in their PR contradicts anything I've said here. I'm just not being one-sided about it. These guys are financial wizards.
https://www.prnewswire.com/news-releases/fineqias-announces-value-of-shareholding-in-nasdaq-listed-phunware-300781387.html
The CFO *might* be too eager to answer questions here. Never a good sign, but I don't know how eager he sounded as I wasn't the one making the calls. We shall see. I'm going to go with the theory that the derivative market here is going to put a check on Mr. Market's other self. We have a bi-polar pricing discrepancy here.
I want to be wrong and the price to hold. I think for warrants under a $1.00, what have we got to lose? Just know the risks. Just because something is overvalued doesn't mean it won't stay overvalued. Maybe it will be overvalued at $20.00, which would be great for warrants. I don't know how dilutive it would be. It's a lot. The dust is going to clear and the truth will come out in the shake. That's all I know for certain. It's not a scam. It might be a pump n dump in a respectable way. If that makes sense. Not ill-willed, but a way to get all warrants exercised might be their goal. But there is real value. But what is the value? Awe, that is the million-dollar question. And Mr. Market could undervalue it too. He's not perfect, as this discrepancy between the common and warrants seem to show taken at face value.
So, all that being said, I'll buy a 1000 warrants. I can't be hurt. I have nothing substantial to lose. And a lot to gain. Let the cards fall where they fall.
Same to you Namah. I'm still a skeptic, however. We are going to learn something here for the good or the better.
I may be looking at this backwards and it's not that PHUNW is miss-priced but rather PHUN. I can't understand PHUN, and it's definitely overvalued on a simple p/s ratio and other metrics. The p/s being the least manipulative and a good start. It's really highly priced and a low float.
PHUNW is not as thinly traded as some suggested. It's pretty highly traded for a warrant. And there are several sellers that know what they have. It might be that Fineqia was in the same bind and can't sell until that registration, because I saw Preferred F's on that list. It might be all warrants, including PHUNW, coming to power. That would be so highly dilutive. At the same time, it would put so much cash in their already cash-rich coffers.
With such a low float right now, it might be the impetus for the equivalent of a bank run. A mass exodus for the exit for huge profits considering the huge disparity -- the arbitrage that has me saying it's too good to be true. But how do you value PHUN? One start is to understand it, and it's really hard to understand.
So I don't know. But if it crashes below $11.50, these warrants are priced right. Maybe that is what the market is valuing PHUN at. But it's worth a gamble considering how much I don't know. And we are going to learn something here. They are priced as worthless, and PHUN is priced to the moon. But would it crash below $11.50? Or will we get blindsided with some weird stipulation like our shares will come in the mail, which would be irritating and not normal. But then I see Nasdaq and credibility, even though it's a reverse merger. It may be why the market is not valuing Fineqia correctly with their press release of massive profits in PHUN where there common is locked and warrants freely traded. But I don't know. There is only one way to find out for sure. I'll take a small position today, perhaps.
Thanks, Stran, I think I will. I keep reading until my eyes hurt. I think you have time to exercise even if they are redeemed. And if the stock crashes below $11, you'll know it before you exercise. I just can't wrap my head around the inefficiency of it. But I'll do it. It's not much to lose if there is something I'm missing. I can't stay awake anymore.
It just seems too good to be true. I'll take that step anyway. Now I'm too curious.
In short. All I have left to go on is the conventional wisdom that if it sounds too good to be true it probably is.
That is a bias. A wise bias. I just can’t rule out what you are saying. It has no analyst coverage or any reputable source talking about it. But it is a reputable company itself. There is something I’m missing and I just can’t puy my finger on it. I might by a 1000 warrants just for an education. It’s not much money. I need to learn something here. This is how I learn. Hands on.
I apologize Namah. I can’t falsify your claim. Good
Rebuttals. I can’t be sure this is the registered shares. There
Are so many classes of preferred. These warrants go back to
Stellar. The legalese is incredibly long. I have to be honest and say
I’m biased. Like your biases of a penny stock.
I feel like there is something you are missing but I can’t find it. Which
Makes me believe I’m missing something. Like the conversion but
The conversion seems 1 to 1. But there is a holding period
Of 30 days after/if shares are registered to my understanding.
So the company could still redeem with 30 day letter.
I just can’t see that much arbitrage being missed on a nasdaq stock
By so many money managers. We are missing something. I just can’tt
Figure out what it is. I do believe in market inneficienckes. But not
Of this magnitude. I’m just not seeing it. But for a blind man like
Myself it does make you want to buy 1000 phunw. Just to see what
Happens. Call options are simple. Warrants are very convoluted.
Especially this one with so many and different terms with a reverse
Murder and redmtikn rights. I need a money manager to look At this.
I'm sorry, I meant 60 times the amount of shares.
I'll back and I'm going to make you eat all those words. I'm going to slam your face in the mud and make you stand in the corner with a dunce hat on.
Time stamp this post: Fineqia at .015 on 2-5-19. PHUNW at .6 and falling.
We'll talk again.
Perhaps. But the CFO's fiduciary duty puts PHUN above PHUNW. I don't think the cards will fall that way.
I think anyone with PHUNW would be better off selling and buying 6 times the amount of Fineqia, much more stable at .015, a market cap equal to their warrants plus common of PHUN, plus get free rights to phun coins. And as a bonus, a startup and investments in Black Insure and Nivaura, all emerging high-growth startups and a dream team mgmt. team.
But that's just me. We'll see how the cards fall. The truth will come out in the shake. We will revisit this in retrospect.
Right. But in thise case they can raise the same capital by exercising those rights themselves with an accretive loan, making huge profits in the process, paying off the loan, and keeping the cash. And all warrants have stipulations. In this case, they can call them all in. Convertibles work the same way in many cases, leaving companies the opportunity to call in loans. IN thise case, they need only pay 1 penny per PHUNW if the price trades over $20, which clearly it is, for a given number of days. You cannot exercise right now. Go ahead and try. You have no rights right now; otherwise, you would pay $11.50 and cash in at $200.
Fineqia on the other hand can do just that, but at an even lower exercise price. You can't with PHUNW. Your rights are a hope and a prayer that they don't call them in, and there is no logical reason for them to not call them in. Venezuela or not.
If you have facts or evidence to the contrary, present it.
The company gets those rights for 1 cent. The penny is not a formality. It's a right PHUN can exercise on you if they issue that letter. You have no rights to exercise until they register those shares. They used the shutdown as an excuse before; is that right? Until they are registered, you have no rights. All the rights are in PHUN's hands. I don't know why they would register if they can put money in their own coffers and make a profit with that $11.50 strike price. Or cancel them, but the dilutive potential at these prices seem accretive. And more beneficial to them.
I hope they register and you do get those rights. But the ball is in their park. They would have be nice. They are not obligated to register those shares. Am I wrong? What is their business incentive to do so?
With all due respect, Namah, your own source is corroborating what I just said:
Once the warrants become exercisable, Phunware may redeem the outstanding warrants in whole at a price of $0.01 per warrant. However, in order to do this the following must occur.
Phunware must provide a minimum of 30 days’ prior written notice of redemption, which we refer to as the 30-day redemption period; AND If, and only if, the last sale price of our common stock equals or exceeds $21.00 per share for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the warrant holders.
If they redeem them, the company purchases them. Same affect as yours being cancelled. They force a buy on you. They don't force you to exercise at great profit. They force you to surrender your PHUNW at a great loss. The reason PHUNW is trading far below its exercise price, out of the money, is because of that risk which is very probable based on how long PHUN has been trading above $21. The first part is a given. Next comes the letter. It will happen. Wouldn't you in their shoes? PHUNW is priced on a prayer that they won't. That's why its price is "illogically" low based on the understanding of those that can't understand why it's so low.
And that hope would have to be based on a heart and mercy. And I have both a heart and mercy. But I wouldn't in this case. Not when the rules are spelled out. PHUN redeeming does not mean forcing you to exercise your shares. It means they get to call in all PHUNW. They have nothing to gain letting you exercise. They could control how much gets exercised and when and keep all the profits. There is NO business reason to let you keep it.
There are a lot of warrants, different rules. PHUNW are the only tradeable warrants which I wouldn't touch. What FINEQIA has is entirely different. Fineqia bought Preffered Series F shares before its IPO, convertible to common, warrants, and rights to any future phuncoins. I think the best warrant on PHUN is to buy Fineqia FNQQF.
Yes, sir. Sedar:
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00025560
Go to page 16 of the "Audited Annual Financial Statements," released on January 28.
I don't understand your PHUNW, which I think you're referring to. That one doesn't make sense to me. It doesn't trade in the money. And there are stipulations that they can be cancelled if trading over $20 over 30 days or something. And I believe that's going to happen.
This is entirely different. Fineqia invested last year before the IPO in Preffered shares, which are convertible to common and warrants and rights to phun coins. That's all on page 16, with an exercise price of 4 something if memory serves correct. And It says 32,000 shares, but upon conversion it's 16,000 shares of restricted common and 16,000 shares of unrestristricted warrants. It's not PHUNW. These are different, and they are not subject to cancellation. They are money in the bank. That's huge profit.
Yes, sir. Sedar:
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00025560
Go to page 16 of the "Audited Annual Financial Statements," released on January 28.
I don't understand your PHUNW, which I think you're referring to. That one doesn't make sense to me. It doesn't trade in the money. And there are stipulations that they can be cancelled if trading over $20 over 30 days or something. And I believe that's going to happen.
This is entirely different. Fineqia invested last year before the IPO in Preffered shares, which are convertible to common and warrants and rights to phun coins. That's all on page 16, with an exercise price of 4 something if memory serves correct. And It says 32,000 shares, but upon conversion it's 16,000 shares of restricted common and 16,000 shares of unrestristricted warrants. It's not PHUNW. These are different, and they are not subject to cancellation. They are money in the bank. That's huge profit.
Perhaps Fineqia is selling their 16,000 warrants at an exercise price of $4.15 for 4M in profits, instead of their expected 2M in this press release:
https://www.prnewswire.com/news-releases/fineqias-announces-value-of-shareholding-in-nasdaq-listed-phunware-300781387.html
They can't sell their 16,000 common because those are locked up for a year. And we may want to go long anyway.
But, it's great liquidity for 16,000 shares. If it were me, I'd be putting the cash in coffers, and holding the common long term. Or, maybe they aren't. I don't know.
All I know is, thank you very much! It's always a pleasure doing business with the market!
It could be very, crazy, Brich. That's not even an understatement.
I'm not saying these are credible sources or legit, yet. I'm only saying what I found so far:
http://en.caribbeansea.ltd/
This implies a long game. I like the Chinese. They have these long, very organized goals.
That story ties into here, perhaps. Some common names and commen themes going on here.
1) That sources alleges "Seven rounds of private placement funds were raised before the listing of the Caribbean Consortium, the amount of private placement funds before listing is expected to be around 775 million dollars..." as recent as just a few months ago.
2) I goes into this: "Global Satellite Bank has established itself in the distributed banking service system business on five continents and has controlled three-quarters of the world's cobalt production through vertical and horizontal mergers and acquisitions...."
3) It alleges a ties by saying, "Through the close cooperation between the Global Satellite Bank and the Treasury of the 12 countries in the Caribbean, the purchase and repurchase of Eurobonds, our multi-country Eurobonds have reached a total of 18 billion Euros..."
4) Our top suspect now Global Satellite Bank, speaks of itself as its own source this, "GSB was founded and invested jointly by ECOSOC, DPI of the United Nations Secretariat, the Ministry of Finance of Costa Rica and Caribbean Sea Consortium.
__________________________
OHHH, it's going to be confusing, convoluted. Tapping into the blockchain enthusiasm. I'm biting my tongue. :) I see no evil; I hear no evil. It's going to be a good ride, Rich. At this time we have stories. Lots of moving parts. I love long stories like the movie LOST. It just went on and on and on and was so interesting! This is a long plan in the making. A long plan. This is going to be a movie. I knew there was something about this shell that was special. Something indeed is going to emerge from this portal. Friend or foe, matters not. Let the buyers bid. Almost open for business.
Ohh, this is going to be a good one. Somebody got near half my shares for your cheap. I hope you're happy! I want my shares back. LOL My price just went up.
Yeah, it's weird, isn't it?
I notice the addresses are extremely close.
136-59 37th Ave.
Flushing, NY 11354
That's on the OTC update, taking us to a Hot Pot franchisee at first inspection.
And then the telephone number takes us to this address on that website:
Address:
36-59 37th Ave 2FL , New York NY 11354 United States
The difference of just 1 number. Google doesn't take me to the bank address. It brings me to the next closest thing, which is just two blocks down. An easy walk down. Cross the street twice. That's it. But it's like the address isn't correct. Non existant.
It's not even a brick & mortar bank it seems. I don't even see an online presence of it, except for its own presence. It describes itself this way:
Global Satellite Bank is the world's first Satellite Digital Bank. Based on Satellite Communication System and blockchain technology, Global Satellite Bank hopes to establish a global trading system with no national boundaries and no restrictions, promote the free exchange of assets in the world and achieve interconnection and interworking of finance.
Relying on its own strong strategic resources, Global Satellite Bank has invested in precious metals, and already grasped three-quarters of the world's disposable and circulated cobalt resources.
So it's a blockchain company. I bet that is it, Rich. That part of it, at least. It's a convoluted group of businessmen with a blockchain company trying to emerge, probably. Operating out of that building in NY with all these friends. Ahhh, interesting. Maybe it is Chinese mafia. LOL I don't have enough information. All possibilities are possible here. Now, my only conclusion is that this is going to be fun and interesting. It's going to be interesting I think. :)
Whomever they are, they seem to be a consortium of friends in high places. I don't want any Samurai warriors mad at me. Oops, wrong country. Or Ghengis Khan, or whatever. I just don't want to step on any toes. I love Chinese women. I'll just sit back and enjoy the show. It's not boring, that's for sure! And that's a good thing. And we are low market cap, thinly traded, alignment of interests. That's all that matters to me. I'm only curious, not Magnum PI here.
Connecting the dots here is like navigating a maze.
That telephone number 929-256-6666 is a NY number whereas the email takes me to China. The number, however, is consistent with the NY address. The NY address with a franchise model that starts in China, which was bought by YUM. But a franchisee in NY with roots in China. But also mainly other China related business in that same building.
It tells me businessmen with lots of experience and connections, really. Their lives intertwined, and we are only seeing parts of it. It looks less and less like something rehearsed or inexperience if that makes sense.
For example, that same telephone number on the SOS,929-256-6666, is also found on this NY based website.
http://cn.gsbboss.com/en/col.jsp?id=127
Scroll to the very bottom of that page and you'll see it.
And that makes the puzzle, or connecting the dots, that much more of a labyrinth if you will. You have a NY "Global Satellite Bank" with Chinese language subtitles. A lot of NY/China cross pollination is all I'm really getting at the end of the day. Consistent messages, but vague and all over the map. But that's exciting!
I'm excited about it too. I was looking at that class action closer. There are two plaintiffs and two defendants. I don't understand how to interpret multi-party defendants. I would have to ask a lawyer why? It's two different franchisees with the same franchise. If those are just two solo locations, punitive damages wouldn't be as high as my 1M settlement figure. I was just throwing out a high number from an experience. But why sued together? I don't understand. And then that building has 5 other businesses, so I better not jump to any conclusions. I'm not even saying the plaintiffs complaints are valid. I'm just giving them the benefit of flipping the burdens of proof. Maybe cultural differences here. Who knows. It's easier to just do the right thing. I do believe in overtime and workers' rights.
I did, in fact, see that email yesterday. That's the one that led me to a website in China that I said I couldn't understand. It's in Chinese. This one here. 13 lines down.
https://www.huangyeso.com/company/14982583.html
But I have a translation now. I'm not sure if your browser can do it, but my Google Chrome can loosely translate it. Not a prefect translation. But it does take me to that Shenyang District, closer to the NVSOS. But it's not the same address.
That top line says "Company name: Beidou Ruipu (Liaoning) Technology Group Co., Ltd."
Then a description of the "company profile" is above that map, which states:
Beidou Ruipu (Liaoning) Technology Group Co., Ltd. is located in Liaoning, located at No. X164, 3rd Floor, No. 96, No. 3, Heping District, Shenyang City, Liaoning Province (Postal Code: 110013). It enjoys an advantageous geographical location, convenient transportation and good economic development atmosphere. Beidou Ruipu (Liaoning) Technology Group Co., Ltd., based on the characteristics of industry operations and risks, with the goal of preventing risks and complying with laws and regulations, has established an internal control management system with control and control, clear implementation of responsibilities, and checks and balances.
The company opened in 2018 with a registered capital of 100 million yuan (units of 10,000 yuan) and the number of employees is around 0~50000.
The main business is (health food production; car beauty services; (the above two branches operating); used car information consultation; new energy technology development; self-employed and agents of all types of goods and technology import and export (but the state limited company Except for goods and technologies that are prohibited or prohibited from importing and exporting; sales of automobiles, coal, metal materials, hardware products, lubricants, chemical products, machinery and equipment, building materials; garden engineering, municipal engineering, building construction engineering, bridge engineering design, construction ;...), in the course of business, we are honest and trustworthy, focusing on win-win development. Strictly control the quality of products and services, and actively provide users with quality products and services. With the principle of high quality and distinctive service and small profits but quick turnover, we have won the trust of our customers. Interested in our products and services, you can leave a message or contact us directly, we will contact you as soon as we receive your information. Contact Li Yuchun, the contact number has not been set yet
We stand on the stage of rapid development and innovation. The creativity will continue to create the first-class brand as always, and advance and retreat with customers and develop together with the market. The company has a sound corporate governance structure, excellent management team, advanced business philosophy, scientific development strategy, good operating mechanism and sound rules and regulations. Strict quality management is the decisive factor for enterprises to survive and grow under the fierce market competition. The company adheres to the business policy of "customer-centered, quality-oriented, long-term mutual benefit", and will serve you with enthusiasm and return customers at the most favorable price.
And that's vague and too broad in scope to tell me anything. That doesn't mean that's what's trying to come through here either. It's just that that same email is listed as an email. It could be an agent. Or, is hot pot a franchise. That LLC in New York a subsidiary? Or one of those other businesses? PFFT, I don't know. But we are getting much closer!! :)
It definitely looks Chinese related. It all looks legit so far, and that's a good thing. Nothing saying scam to me or anything nefarious. Just confusion. Lots of suspects. All roads seem to lead back to China. Even those NY addresses. :)
I would suspect that some things above, like "car beauty services" are not perfect translations. What does that mean? What language is that? LOL
And I'll have to point to other Chinese shell company at LTGJ which is further along, with a much higher market cap. And about as vague as this press release so far, but at least filing and closer. So, market cap comparisons show is very cheap still.
Thank you mj. This is great stuff. I know a cocky and condescending analyst whose “specialty” is the cannibis industry that needs to see this. I’m going to go slam his face in the mud and make him eat this over over at seeking alpha. A fool never knows who he is.
Thank you so much. I’ll be back.
The address matches up, Rich:
https://opengovny.com/corporation/4086567
https://www.otcmarkets.com/stock/EVCC/profile
It could be that HOT POT FLUSHING LLC is our franchisee, trying to come through here. It's a building that houses some other business as well as you can see.
Entity Name
Office Address
Start Date
CHINESE ARTIST COMMITTEE OF 100 CORP. 136-59 37th Avenue, 2nd Floor, Flushing, New York 11354 2016-08-23
GLOBAL DIGITAL CAPITAL MANAGEMENT CORP. 136-59 37th Avenue, 2nd Floor, Flushing, New York 11354 2016-08-15
PAN-CHINA CAPITAL MANAGEMENT HOLDING CORP. 136-59 37th Avenue, 2nd Floor, Flushing, New York 11354 2016-08-01
GLOBAL CLOUD MEDIA CORP. 136-59 37th Avenue, Flushing, New York 11354 2015-11-19
GLOBAL VIDEO MEDIA CORPORATION 136-59 37th Avenue, Flushing, New York 11354 2015-06-09
WORLD BEST BEAD CORPORATION 136-59 37th Avenue, Flushing, New York 11354 2015-06-01
I don't see a "Chang Qi" on a pdf word-search of our class action suit. But that doesn't rule it out. There are a lot of investors in that one. All of this looks good though.
This is excellent news. My gut is leaning to the Hot Pot expansion, but I can't rule out these other potential suspects. But we have a lot of good suspects here!!! This is going to be good. We might get a filing soon that sheds more light, like Adijas said. Not sure how far along they are in that regard.