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MM's aren't held to the same restrictions everybody else is when it comes to covering naked shorts. What you are seeing right now (NITE absorbing all the shares) is most likely the covering of that short position from the last run. MM's will sell a naked short position and just continue to sell more and more all the way through a run, because they have so much time to cover it. When you see the MM's digging in and buying it all later, after a run, it's that covering of their naked short position. Like I said, they need more regulation for MM's than they have in place at the moment. This means MM's can create an infinite number of shares on a naked short, and they have a tremendous amount of time to do so. When NITE puts that wall up on the ask, it means he could be still trying to cover that position he sold short earlier, so if you start slapping into the ask, you are costing him more and more money. By putting that wall up, though, they are implying the price is about to go down, so some investors get out or others wait for it to drop lower to buy in. Then that massive absorption of dilution at the lower price they wanted, to replace all those shares, begins. Until either their position is covered, or another news catalyst begins and they start the cycle over. It takes 13 consecutive days of failures to deliver for anybody to even get upset about it. As long as a company is diluting, though, they are golden. If they set the 10,000 on the ask and continuously refill the order, it looks more like they are just trying to dump as many shares into the market as quickly as possible (possibly to create more opportunity for shorting again later). This is the signal you should look for more, to decide if you want to jump out for a moment and catch your breath. This knowledge combined with the news of the stock tranche payments to ASC, and the increase in A/S tells me that this is going to be a roller coaster until ASC business is done and we get further confirmation of ongoing sustainable profit (hopefully we should still see a steady increase in value with new support and resistance throughout the whole process). So, buy and dig in for the long haul, or try to play the momentum swings with the catalysts. Your choice.
What are you disagreeing with exactly?
I would say, the best idea for AQUM:
If you see NITE throw a huge ask on their, don't get scared off. Many times, it is a false wall, there to keep the churn going and price controlled. In reality, though, they should not get in the way as much if there is a significant demand for a buy up of shares. Once that ask wall gets hit a few times, then that should clear it. What you should worry more about (and you could complain to nasdaq, if you want), is when there is only 10,000 on the ask and millions of shares run through without it going away. This means the MM has it set to automatically fill every time one order is completed. If there is a significant demand for a stock, though, this would impede the market to actually determine the price and the MM is no longer providing an accurate market for the stock. That especially irritates me. Overall, though, until this company is showing positive sustainable profits, this is going to happen. Either dig in and wait for the long haul or play the momentum only after a news catalyst.
They lost $460 M, off that huge fiasco, and then still had to pay a $12 M fine. That's why they ended up open for a merger, like they had with getco. Naked short selling needs to be made impossible in general, IMO. You should always have to verify existence and borrow physical shares instead of creating them. They say this rule is in place to prevent unusual runs in companies that might not show the fundamental backing. Where the hell were they when that TWTRQ and NEST bullshit went down? Answer- making an absolute ton of money short selling the hell out of all those shares without verification of existence, and still not subjected to the same rules on covering a naked short position that everybody else is. The problem is that the entire system needs to change. Which people have been trying for years. Until it does change, just make sure you fully research a company you throw your money into or only play momentum swings. No matter what, though, NITE will still be there to be a huge pain in the ass.
Hopefully KNG (NITE), will end up running themselves into the ground. They seem to be the biggest abusers of the naked short selling ability of market making. In the meantime, just hang in there. That is why we do fundamentals and check the business model as well. Just have to wait for more news.
Fidelity is another bank that offers an online trading platform for retail investors.
Read the 8k. It should be to mitigate risks of hostile take over in the midst of dilution that may result from the resolution of the debt. It shouldn't reach too critical of a state, and if it does, the company also has the usual mechanisms in place to recover the value for their shareholders. Right now is on the outside turn of a transition the company made earlier this year. AQUM is just going to have to work harder at making sure more news comes out to reassure investors that they are building a sustainable income and that, in the end, this company will still have value and will follow through to take care of it's shareholders. I think we should be seeing more news rather soon.
I agree.
Looks like we still have some dilution. We need a news catalyst.
Were you just predicting TAM's revenue, or all of Greenwire and AQUM? What percentage of their revenues would be in the 4th quarter, though? Personally, I would think to use the second half of the year only for further modeling of revenue projections of this company. Because, just like you said, they had a reorganization. I think they stand for a more rapid pace of expansion in this business, though, than they did with asbestos. This leads me to believe that they stand to make significant additions to the revenue they were making with the prior business plan.
I am not sure if further acquisitions would actually be wise at this point. I know first instinct is that they should buy as much as they can, as quickly as possible. If you think about the considerable amount of resources that the company is already expending in fulfilling new contracts and keeping up with a $3 M settlement, then more acquisitions could overextend resources. If they don't already have the operating cash flow to pay off a $3 M settlement, that leaves a few options for the company to make any more acquisitions:
1. Sell stock for cash, dilute the value of the shareholders' stock, and also risk somebody attempting to gain a controlling interest in the company (with the dilution that may still result from ASC).
2. Private placement of shares with another company/person/entity, and still further dilute the value of stockholders' shares (because they will still be factored into OS). This could be somewhat mitigated by issuing restricted shares, but then that would depend upon the restrictions.
3. Put themselves further into debt buy taking on loans or more convertible notes.
None of these are what I would currently want for this company, honestly. Yes, there is always the chance that they gain other funding from taking on a new partner, or in some other way that would not add on to their already impressive liability list. That is not always a very probable option, and I think the company should focus more on expanding upon their customer base for the companies they already own. Which is what they seem to be doing, IMO. Once they are able to achieve moderate, sustainable cash flow, and after the mess with ASC is sorted I wouldn't mind seeing more acquisitions. For now, keeping up with their current orders and striving for more contracts and expansion in their telecom services is enough for me. They are already increasing their intrinsic value to outpace what the stock is trading for at the moment, anyways.
I am very interested to see what the 4th quarter revenues are. FINRA said he estimates around 1.4M in revenues for the year, but I am hoping that is more along the lines of what their EBITDA ends up coming out too. I think the multiplier is like 6-8 x EBITDA for companies like this.
Why $1,400,000 for the full year? That means roughly $1 M in the second half. I would actually assume this to be a rather conservative estimate, if they really are going to complete 30 of those sites by the end of the year (as planned). I am curious where you are getting an estimate, though.
Thank you everybody for the compliments. IMHO, another two days and we will have news that is going to send this one through the roof again. This would be perfect released tomorrow morning, right before market open. We could end up pushed into a multi day run, but hitting that speed bump on Friday. AQUM still has way too many prospects for me to believe that is going to lose value completely, though. I have said it before, though, if they do pay that debt off through tranches of stock this thing is going to be a roller coaster. As long as they keep getting these contracts awarded, they will do just fine. Still hoping for an early pay off to avoid all the mess, but I wouldn't get my hopes up too far. Even if companies hold value, it doesn't mean too much of a stock market mess wouldn't kill the PPS. In the end, though, it will recover as long as the company is continuing operations and maintaining revenue streams. I wish everybody luck!
No sir, fear is killing this one. There has been no such dilution occurring currently. An increase in authorized shares is not dilution. Once those shares start hitting the market is when it becomes dilution. As of now, though, we are still awaiting it to even be brought to the court, after which they will have 10 days to make a decision on whether this method of debt repayment is fair to the shareholders. We still have not received the details as to the spacing of the tranches, either. They must be at least spaced by 20 days, if you see that is how long it takes for the calculation of what their payment in stock will be. I would say this would be fair to shareholders, though, considering this company could be in somebody else's hands or liquidated for assets and shareholders screwed. So the options are somewhat limited in this aspect. If they are able to fulfill as many of these contracts, in the meantime then we might see an early pay off of the note. In which case the stock jumps even higher. Right now, everybody is just kind of holding their breath and waiting for that next PR to come out. But dilution is not occurring at the moment, and is having no effect on the value of this stock at this moment.
Personally, I think that the ability to enact 2 RS over the next two years gives them the ability to possibly increase stock value if it is pushed too far down during the ASC payment. This can be a useful tool, as long as it is not abused. I would agree, some comments regarding current operations from the CEO, directly, would help put everybody at ease. It may even just silence some people from making wild accusations without proper grounds to do so. I think we are going to get something this week though, definitely. I can feel it in my bones. LOL. Actually, the drop in volume kind of requires it. I hope it is more due to everybody holding tightly to their shares in this one, than everybody being scared off. I cannot be sure, though, but I do find the volume staying at this level until the next PR to be quite probable.
Thank you. I really hope we get that PR that gives us an update on revenue projections, and I am also wondering what capacity towers they are setting up.
Cynical, this one is for you:
I would have to disagree. They would have to authorize that many shares to prevent anybody from being able to complete a hostile take over of the company, even if the price bottoms out (.0001). And as for a "publicly reporting shell company", can you provide proof? There was a guy that actually drove to their offices to confirm their existence. Maybe you missed that post as well. Then if you actually read the 19 Aug PR, then you would have actually learned that "Green Wire will be providing technical and installation crews for Alcatel-Lucent on an ATT/ETTC project". This is the project they have commenced work on at the moment. Did you catch the names in this PR? If you then further look into alcatel-lucent, then you will find that they have been doing a wireless microwave backhaul since 2011, to increase data/networking capabilities. You will also find that, currently, many cellular service providers have had to take on new approaches to bring down costs, which means outsourcing and actually working together (limited to a certain extent of course). I am not sure if you know the benefits of using an extensive network of microwave towers, but it provides a very broad spectrum bandwidth, and can provide service where cable cannot. It is also a very rapidly deployable network that is easily accessible and doesn't suffer from the same problems of cable outages. Don't get me wrong, fiber is still going to be the way to go for now, when it comes to very high speed internet. Microwave towers provide a cheaper and easily installed alternative to standard cable/fiber, in the meantime. As cell phone companies are having to provide more data services to their consumers, there is more of a push for these kinds of towers for network upgrades as well. The benefits also extend to all the other wireless companies that also offer home internet packages. So when they up the A/S to 7 Billion shares to ensure no risk of a hostile take over of the holding company that would end up acquiring all revenue generating subsidiaries as well, because of a convertible debt that must be fulfilled, I don't squirm a whole lot. That is clearly a valid reason to increase A/S that high. This does not mean they intend to use them in any other way than stated in the 8K. I am not sure if you read that either. It actually states that the company has no further design to dilute or place any more shares, currently. With the contracts they have in place and are still working on, though, does provide them with consistent and ongoing revenue streams to do network maintenance and operation through Greenwire, Inc. I am not sure about what other red flags you are finding besides the sharp increase in A/S. Has the CEO ever been prosecuted for any of the accusations that you are suggesting? I think you have the President, CEO, and CFO positions confused here. I am going to dig more into it, but for now, this company looks like it will be making a significant amount of money from their contracts. And extremely undervalued. If we see massive dilution outside the expected tranches of shares paying their convertible debt off, then I would say we may have more of a problem. I doubt that they would do that, though. That is a terrible risk of losing the company, if they dilute too far and somebody gains controlling interest in this company. I think you also got confused with the companies you were trying to use to discount the CEO (which I think you meant President). ABLE was an energy company, not telecom. It is still publicly traded, but I am unsure if they still even are continuing operations. Charys was the telecom company that went into CH 11. The class action suit that had begun is now temporarily (unsure how temporary) been suspended, possibly to rename defendants. They have also emerged from that Chapter 11 with a new company name and continue telecom work. Billy Ray, who was involved, is not the CFO of this company and does not have control of the company's books. If you take a look at Marshall Sterman's history, the I would think that would help balance that out (he attended Harvard Business School and has extensive experience in business and securities). Any other red flags that you find, let me know. Until then, your post seems somewhat preemptive in its assumptions.
MM's do, but that shit doesn't show short interest. Just how many shares sold short. Never if those positions were covered (usually within seconds or minutes). You can take what you want from it, but I would not use it as an accurate short interest EVER!
I think that ensured, no matter if the price bottoms completely or not, ASC doesn't get the company or leave the possibility of anybody gaining controlling interest with a high share dilution. There best bet is to keep the rest of their shares in the treasury, so they run no further risk of another shark snapping a significant chunk of the company up. So I don't think we should really worry, as long as the dilution does not far exceed the payments to ASC. The company's best bet at this point, is to make sure the PPS continues to rise, so their dilution runs as minimally as possible. I don't doubt, though, that this is going to be a bumpy ride. I would assume that ASC will attempt massive short sales right before the end of the 20 day gap. It does still state that they are allowed to hold no more than 9.99% of the company's stock at a time. So, as long as you can ride some of these waves out, and AQUM continues to get contracts, then there is going to be a nice long term on this one. IMHO, of course.
So outstanding shares do not matter when it comes to dilution, to you? I am misunderstanding here what is incorrect. Why don't you think the O/S shares have to increase for their to be dilution?
I guess you guys don't know a whole lot about candlestick patterns. He is right about the signal, but there is a decent chance for downturns even with candlesticks showing. He isn't making anything up though. Might want to learn a bit more on the candlestick charts. The patterns help show buy and sell signals. Same as with all other chart data though, it just shows you the potential of companies to run, not that it definitely will. That's where it appears the momentum might take it though.
But for it to be dilution, the outstanding shares would increase with all the 20M or 40M trades. If all of this were dilution in the last month, as you believe it to be, then we should have been at probably 1.5B outstanding by now. But the outstanding share count is still the same as it was on the quarterly.
The volume being this low does not bode very well for the PPS, though. Maybe we will see some 7's again and I can take those!
So, I am afraid to say that there isn't DAILY dilution occurring at the moment. Will they dilute a whole bunch soon? Possibly, but with reported revenue there is no reason to do so anymore. There should be a share buy back program.
Rich, check the closing market capitalization and from yesterday, and divide it by the current price. This will give you the current outstanding share count. And guess, what? Still no change since last quarter, so I am not seeing where all these shares are NOW hitting the market.
The outstanding shares haven't changed since last quarter, that I know of(except for the dividend pay, maybe). If we see a huge end of quarter dump and increase in O/S, then I would understand. Quick question, though. When exactly was KCN given their shares? I know sometimes when large private placements are authorized, then an increase in A/S can occur to minimize risks of a hostile takeover.
And thank you all who sold me a bunch at 12, this morning. I was pretty happy about that. :)
Hoping for a good closing of this week! I honestly doubt that this is going to be staying this low for long.
When was the last major change to OS, Rich?
We are talking about recent dilution that people keep claiming. We already know of the long term. And the ability to complete 2 reverse stock splits up to 20 for 1, to bring the share count back to 400,000,000. We are talking about what the company is doing right now, though. There is no current dilution occurring right now.
Accumulation is almost double the distribution for the day so far! Looks like a solid set up for next week.
But I wanted more cheaper shares! lol. I bought in at .0007 to begin. Part of me kind of hoping to get more like that, but I think there will be news by Tuesday of next week. With the way it has been going, though, you never know.
My concern is that they are trying to say they are an importer, so that they may report much more revenue and use that as a fundamental reason for the stock price to be higher. If they are actually making that much money for customs brokerage, then that is great. They just need to represent their company properly, because that would show a hell of a lot better of a profit margin in this company. It would show a much lower level of revenue, though. I will still accumulate some more shares for the right price, but I am just kind of keeping a holding pattern for now.
Can you provide proof by showing a change in outstanding share structure? Because I have heard this a lot, but the outstanding share structure never changes. It does have to take into account the recent dividend as well. If you are saying they are diluting because of the dividend pay out has changed their share structure by the exact amount of the dividend pay out, then that wouldn't fit either. We need proof that the OS has actually been changing significantly by these 40 million share dumps here and there. So far, it just looks like either scared investors or MM games.
The finra site has the info too. What site are you using?
http://regsho.finra.org/regsho-Index.html
This will show the daily numbers as well. Again, only problem, just know that most of the shorts were most likely covered within the same hour (and done by MM's). I still can't stand that most MM's are allowed to naked short the hell out of the shares in a company, then cover the position in like 10 minutes. If we all could do that, we would make some amazing money.
I am holding for a little while on the buys until I hear back about the exact extent of their business. If it drops down to .0005, though, I will have to buy. lol. How could you not?
Be careful when looking at these numbers. They don't tell you how much of the short positions sold were done by MM's and then covered within seconds.
Not today. There has been no recent dilution, following the move to the current S/S. However, it has been holding at the current O/S for how long now? No dilution going on today, or for the past two weeks people have been saying it is.
If it is the case that they are a customs brokerage company, then I will personally have them investigated by the Securities regulation division of California for, at a minimum misrepresentation of business practice.
For all those that don't know the difference between an importer and customs broker:
Importer is obvious what they do.
Customs broker - streamlines the process and is paid by the company doing the import/export, but can be listed as the consignee on a bill of lading. They do not, personally, sell or fill orders themselves.