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There's a lot of dough in challah, y'know...
"Every time there's a little spike someone thinks something is brewing, only to be let down after the next 1-2-3 weeks pass by and realization sets in that it was just a technical bounce, or shorts covering."
Believe me, I know where you're coming from, and who could fault you for feeling the way you do.
I still feel that one of these times it will be for real, and it may just signal the beginning of a turnaround for RELI. Granted, it will be a totally different RELI than we thought we were invested in, but nothing we can do about that other than hope for some positive results.
"It’s called a dead cat bounce."
I'm familiar with the term, unfortunately from experience.
Alternatively, it may be the early brewings of a pending announcement.
We'll only know for sure by coming events (or non-events).
Just maybe things are finally beginning to fall into place. It's been a long vigil, but they weren't just sitting around doing nothing.
Let's see where this goes... is it another tease, or the real deal?
I can't blame you for feeling the way you do, because the communication from the company has been atrocious.
It seems pretty obvious that they have not adjusted to the culture of a public company, after years in the private sector. Shareholders deserve better treatment, and in the end, it's the whole company that suffers from the resulting lack of confidence.
But the picture that you are drawing of what's going on at "headquarters" is totally off.
I meant to add LOL, forgot! Thanks for adding that...
No question, this price action is brutal. We're all in bad shape, some more and some less.
Here's a few points that are pretty obvious, at least to me.
Was the RS royally messed up? For sure.
Was that done intentionally, to gain somehow on the backs of investors? No way.
Did they expect to have significant PRs soon after the RS? For sure.
Could they have anticipated that there would be complications that delayed or derailed (I honestly don't know which it was) the expected PRs? Hard to say without knowing more info, but maybe more experienced hands would have realized to expect the unexpected.
Does Beyman still expect this to succeed? For sure.
Are he and his people working on this in a consistent and focused way? That's the impression that I get from speaking to people who have a sense of what's going on (not people who post here, by the way).
Will this begin to turn around in our lifetimes? I think so...
"Benk, do you still think this large LOI is still tracking in the right direction to close? Starting to feel like a bait and switch to me, in order to raise 12.4 million dollars through the secondary offering..."
j, I can't say one way or the other about how it's tracking. As I said earlier, I am hoping, but the silence is indeed unsettling.
But one thing I can tell you with 100% certainty: If (and to avoid misunderstanding, this is only a hypothetical) something came up in the negotiations to complicate the closing, this was not a bait and switch.
The monies raised are directed toward expanding RELI and bringing it to a whole new level, one way or the other, through the announced LOI or other projects.
I have no doubts about that. There has been a learning curve here, I agree with that, but the focus has not changed. I'm still very hopeful about the future, though it's been frustrating for sure when the timeline keeps shifting.
His resume was not my point. I was responding to what someone else had posted as the sp rose sharply that afternoon, that "somebody loves Moshe Fishman".
This came on top of really disgusting, mocking innuendo about bringing in more members of the KABAL (sic), and some other typically cynical comments.
All I meant was that if there is some new buying after that PR (which fizzled soon enough), don't make it into some ethnic celebration. Maybe it has to do with his skill set.
What is that skill set? I didn't bother doing much research, personally, because my personal focus is on the closing of the LOI, which I hope is tracking for sometime soon.
If that happens, it doesn't matter too much if the IHub crowd likes Mr. Fishman. If it doesn't, then Warren Buffet wouldn't help either.
Looks like steady, slow accumulation going on. Nice volume.
Very good sign -
"Wow, guess someone likes Moshe Fishman!!!!!!!"
Or maybe somebody has enough brains to overcome the fact that he has an ethnic name, actually looked at his resume, and decided that this may be an important step forward...
Today's news is not exactly a home run, for sure not a grand slam - but it's a solid single, with some heavy hitters on deck.
JMHO.
This whole discussion is weird. Of course we're all feeling exploited by the combination of events that left us in a hole, at least for the moment. But it's only a few days since monumental progress happened, and Rome wasn't built in a day.
I am confident that we'll begin seeing some news next week (IMO), but keep in mind that closing a transaction like the major deal described in the LOI involves a series of steps, and just because the raise was successful - actually over-subscribed, because of serious interest on the part of big investors - it doesn't mean that they can just write a check the next day. The fact that the LOI wasn't finalized an hour after the uplisting means nothing at all.
I've lost lots of value just like everybody else, but I bought a little at these prices because there's a lot more to come, IMHO.
Have a great weekend all, and try to put the past week into perspective. Overall we're moving toward the goals that we all want to see. All IMO.
OK, I'll take the bait once again and reply here.
Of course the uplisting was predicated on the LOI, both from the company's perspective, to provide broader exposure to the investing market as they become a major national player in the insurance sector; and from NASDAQ's perspective, to consider RELI a viable player on a major league stage.
But if they would have decided, "Wow! Our loyal shareholders (many of whom were cursing management for many months for being totally incompetent, criminal, and evil) suddenly got religion, and pushed the share price up 5X, so let's put off the LOI for a few months and start over...", who says that the LOI could still be executed?
Maybe the sellers would be so angry for being jilted, after missing the end-of-year deadline, now again seeing the can kicked down the road - would that have been a smart move?
Of course the two are connected. The uplist only is feasible with the LOI or LOIs). That's why the LOI has to happen, hopefully very soon.
"Looking back on this RELI should never have been listed on NASDAQs website prior to the uplist being completed. Listing RELI on the NASDAQ website is a very credible, newsworthy event and is the primary reason for the run-up on Friday."
OK, I'm going to break my resolution (just this once) and back up what lhotse just wrote, and provide a little more background, based on some DD.
If you all recall, last Friday someone posted an "uplist" notice from the NASDAQ site, that RELI is uplisted.
There was a "delisted" notice posted a few minutes later, which seemed very strange. Someone here on the board questioned that contradiction, but it was too late.
That notification triggered an avalanche of buying - we're on the NAS! And Friday and Monday were amazing to watch and to experience.
Well, when the frenzy settled down, I remembered the "unlisted" notice, and did a little checking around.
It turns out that that was a mistake on the part of NASDAQ. That notice was supposed to be made public on Tuesday, but someone clicked too early, and it went up for a short time on Friday. Then they realized the error, and it went back down ("delisted). Until Tuesday.
As the saying goes, "To err is human. To really mess things up, you need a computer."
RELI had nothing to do with that false news, they have no control over what NASDAQ posts.
But once the horse was out of the barn, it was too late. And it will take time to get back where we thought we were... but IMO we will get there.
Back to my hiatus.
The posts are getting more and more hysterical. The people who couldn't sleep last night because we were all whipped into a frenzy, can't sleep tonight because they're so angry.
Maybe because I'm probably older than most of you, I can be more patient and let things unfold. This process will take time, and there's no point in talking about lawsuits, an insurrection in Lakewood, etc. The frustration and anger are understandable, but not productive.
I'm taking a break from the board until we have a fuller picture.
Have a good one- GLTA.
You ask, where did the money "go"?
Let me ask you: if you read, for example, that Tesla's stock went down by $5, and Ilon Musk lost $2 billion dollars, does that mean that some lucky stiff is running around with a really big suitcase with $2 billion dollars in it? I don't think so.
Increase or loss in share value is just that: it's a way of expressing what you will get if you sell the stock. Until you sell, you haven't lost a penny.
If you have a shred of hope that the price will go up, that value will reappear. If you think that it will continue falling, then sell now to avoid a bigger loss, and you have what you have.
There is no actual money floating around in someone else's pocket.
GL.
Thanks trader for your lucid summary.
Your closing line:
"Recovery will depend on what the company does with the $10.8M proceeds to improve value. From here on out, it will have to be real."
...is the key. That $10.8 million represents the funds that will be used to purchase the large company described in the LOI. That's the catalyst behind this whole convoluted process.
Apparently, the underwriters found this convincing enough to give it backing, and they felt that people would be willing to buy warrants at $6.60, implying that the share price will be high enough to make $6.60 a bargain. So the investment bankers believe in the potential.
That doesn't guarantee anything, of course, but at least to me, it means that it ain't over till it's over. And it ain't yet.
If it's only lousy timing, I agree that it's incompetent, but it's repairable. Once they get their act together and provide that news, it will look different.
Maybe not the explosion that we were wishing for, but a steady climb in a better direction. JMHO.
Doc, with all due respect, I think it's way early to pass judgment.
It's still not trading for most of us, and we haven't seen any of the news that has been waiting to be announced, that may show the value that justifies the uplist.
Is it possible that a sort of "quiet period" still applies until all shareholders' accounts are tradable? That would kind of make sense, since the SEC's mandate is to ensure a level playing field, or at least close to one.
Granted, the circumstances here created a bizarre scenario, with what must be a rare gap between the two offerings. But I'm withholding judging until the dust settles in a few days (I hope!).
"...it would seem it was the added offering that priced the shares at 6. If that is the case then it would seem that it was a major blunder to tie the added offering to the rs."
I hear your point.
But from what I gathered - and I think someone wrote this on the message board also - the sale of those shares at $6 (which at the time seemed like a reasonable valuation) was necessary to make the S1 effective. There had to be an initial raise in order to get the final OK to uplist. So as I said, they were kind of forced by the regulatory restrictions to follow those steps.
"What gets me is that it was obvious uplisting to Nasdaq would be received well by the market and would cause a rise in price."
I've had the same question... but remember not so long ago - it wasn't at all sure how much trust the market had in Ezra's plans. There was a lot of skepticism, and I don't think that it was a given that shareholders would jump in, at least not on the scale that it turned out to happen.
Besides, I'm not familiar with the process - but when filing for an uplist that is dependent on a RS, a company probably has to specify the precise amount of the RS. They can't just say "TBA", we'll let you know.
So once the filing is in, the die is cast. That's probably how it works, unfortunately.
Nor to me.
Of course it doesn't make sense, because the original S1 filing was not guided by prophecy... and there was no way to predict where the share price would be within a week.
The hope is that once the accounts are straightened out and people can decide if to buy or at least hold, there will be enough new news to create interest on the part of much bigger investors, private and institutional. Then we'll close the gap between $6 and $33, and gain our footing.
Might take a few days until it becomes clear if that will happen.
Regards-
"So Ezra himself decided to devalue RELI shares at a 6x multiple (6.00/ share) from the RS because it would delay IPO and offering?"
No, I was saying the exact opposite.
When they filed to uplist through the S1, the price was around .06-.07. That was refelected in the filing, making the RS at 85:1 ratio, to make the NASDAQ opening at $6. The initial offering of 1.8 million shares was therefore locked in at $6 also.
When shareholders overcame their cynicism about the future and decided to make an effort to raise the share price - very successfully! - it became obvious that a multiple of 85 would make the opening price much higher.
At that point, Ezra and his people wanted to cancel the 85 and make a much lower ration. But the legal people advised them that if they go through that process, they risk missing the deadline and everything will be thrown back for months, including the next steps in expanding, the LOIs, etc.
Is that clearer?
That's not how it works. See my post -https://investorshub.advfn.com/boards/read_msg.aspx?message_id=161645361
I wish it were a simple as you present it, but like every legal system, it doesn't always work by common sense. It has its own processes that have to be followed.
I have NO direct info on this, but based on past impressions, there's NO WAY IN THE WORLD that he or his family sold one share. That's totally ridiculous. Nothing personal.
I think with a little patience you'll get them back. NOT LOL.
My Schwab account still shows yesterday's data, no sign of any changes, other than instead of RELI it shows up as 75946W108.
Hope this will get sorted out sometime soon. And it would be reassuring to hear something by way of a PR.
All of us have been assuming that as the share price climbs, the ratio of the RS will be adjusted accordingly. I was also hoping for that, and if it stays at 85 I will be very disappointed, to say the least.
Does anyone know how difficult it is to make those adjustments? Does it mean re-filing the entire S1? Or is it a simple amendment that takes a few hours or a day or two?
Difference is, my impression from my contacts is that they were up against a hard deadline to go to NASDAQ, I think by the end of this week. If they needed to refile to change the terms of the RS and missed that deadline, it's back to square one, and the whole uplisting process would begin all over, meaning another vigil for all of us.
Anyone know?
P.S. - Whoever posted that if the RS is 85:1 instead of 15:1 (for example) that we have lost the gains of the past few days, is totally wrong. The quantity of our shares might change, but their value doesn't. The market cap is identical. All that changes is the amount of the OS.
The question is how the market will react to one scenario over another. Who knows? Maybe a lower OS will be more attractive to a big NASDAQ investor.
CDEL and NITE both on the bid at .35 - gotta love it!
Man, I feel like Rip Van Winkle. I went to sleep, and when I woke up it was a different world - but it only took one night!
Let's keep this moving upwards and onwards -
Been away from the board most of the day - just want to respond to the question that was thrown out earlier, if you were seeing RELI for the first time today, and saw what is being projected as coming up in the coming weeks/months, would you put any money into it today?
I would tend to be very cautious at first, and maybe put in today a little cash that won't be missed too much, in the hope that the S1 comes through.
If it does come through, I'd go to the next level and put in some more. And if they actually uplist, I'd see what follows in terms of PRs, fulfilling of LOIs, etc., and treat it like a serious investment.
Just my 2 cents (hope to end up with more).
That's an old debate: How influential are message boards?
Neither of us can really answer that question.
But when there's a vacuum of information, whether it's because of inept communication or a quiet period or whatever, the impact IMO is greater, and the shorts like to read their own spiels and feel reinforced that they're right, since there's no info to contradict them.
I said clearly that it's not ONLY management's fault. I do not give that a pass.
If it ends up that the RS stays at 85 (and I hope that it can still change), it's not only management that is at fault.
It's the shorters who have created an extremely negative and distorted picture, in order to push the price down. They have been able to exploit the disappointment and frustration of many shreholders who have seen their investment dwindle as the company gradually builds for the future.
Now that RELI is on the verge of uplisting,and they will will be able finally to share the developments that have emerged, it is ridiculous that we should still be trading at 6 or 7 cents, and the RS has to be on such terms.
But that's what the greedy few have managed to accomplish.
And, IMO, a final opportunity.
I sent an email to IR earlier today asking for clarification on this point, still waiting for reply.
Believe me, I will post any reply here as soon as I hear back.
"It's devastating enough that retail get royalty screwed with a 1-85 R/S"
I don't think that you are right. the 85 figure is not set in stone, IMO. See my post from earlier today.
But it's up to us to get that number down. Pointing out the negatives is not the way to make that happen.
This sure looks like a gamechanger - the only down side is the 85 to 1 RS figure.
But that probably isn't a final figure. It seems based on the recent closing prices (85.71X.07=5.997).
So as the price goes up, as it is likely to do in the next week or two, it means that the ratio of the RS will drop accordingly. For example, if the price goes to .12, the split becomes 50 to 1. If it goes to .20, it's 30 to 1.
Message? Let's buy now as much as is prudent for each of us, get the price up to a more normal base, and we'll be helping each other tremendously.
All IMO, as always.
j, thanks for your remarks. I totally agree.
Hope we won't have to wait much longer...