is Loving China.. considering learning Mandarian
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That depends entirely on the records of the shell and how well they have kept their own records. Normally a pinksheet shell has a ton of skeletons, questionable unregistered stock issuance, undocumented transactions etc.. It could be very expensive. I can tell you, had he been given better advice, he could have gone public on the OTCBB from scratch cheaper than he did by merging with a pinksheet shell. That I do know.
Opps.. well they should have been upfront about it. That's where piss poor IR/PR takes its toll. Shareholders really only demand one thing.. the truth. When you don't give them the truth they start demanding everything. When they don't get what they demand, they turn against you. Best option is just to be up front at all times.
This is another problem you guys have. The only source of information you should rely on should come straight from the CEO's mouth or IR's mouth. I have watched this board listen to some of these so called "inside" guys to the point that sometimes they would rather get their information from a message board than picking up the damn phone and calling IR.
Just ignore this guy.. you should be getting answers from the company not some message board EESO prophet talking in riddles.
oh yeah baby hhee
Ask Peter Collorafi of RVGD what he thinks of Steve Carnes. The guy doesn't give a crap about retail, or his clients.. that I promise you.
FOLKS-- This is a prime example why you don't focus your efforts on promoting to the message board crowd... click on previous replied post.
From a PR stand point.. if he couldn't give key information out he should have just kept quite about it. This is where his PR/IR guy let him down. A good PR/IR guy would have thought through the PR and realized it would have eventually created doubt. It also, and I'm being serious, looked like a typical stinky pinky pump job.
Here is my opinion what happened.. they were riding a wave of excitement. The stock was trading great, deals were being made, the future was bright. They lost sight of things and got sloppy. They should have stayed focused and let the stock build momentum naturally.. they tried to add fuel to the fire and it blew up in their face.
I like CNOA simply because it is in Agriculture. They have been public long enough now to have pretty much washed out the ills of the R/M.
The first thing that has to happen is penny traders need to be better educated. Message boards are really not the place to gain that education but so many do. When I see someone "bashing" a company because it is diluting.. I often wonder to myself why do these people think companies go public? Now I'm all for a healthy debate on the proper use of dilution, but one must understand business before understanding good and bad dilution.
Exactly.. BUT! I believe change is coming. Stricter regulations and a general desire for change will inevitably correct Wall Streets greed. I'm in the process of starting a company I hope can bring a tiny bit of that change to reality.
Well, it's mostly who the CEO's of these companies get involved with. Lets face it, most CEO's don't know squat about the stock market. I'm sure Jared knows all about enzymes, but does he really know the stock market? In every case I have studied, it was inexperience on the part of the CEO in regards to capital formation and their choice in promoters/consultants who took advantage of their naivety.
Well, honesty doesn't work to well in the OTC either. If you are a start-up trying to raise capital on the OTC.. it is hard as hell to do when the mantra of penny traders is to RUN from dilution. It's just as much the individual OTC traders/investors fault as it is the companies. It is as if they are fighting each other and don't even realize it. It is a love hate relationship I promise you that. Sometimes the easy way out is to simply mislead.
I believe the "buy out" was a PR stunt. There may have really been "talks" but the $.10 buy out price pretty much ruined it for me. That was pure "pump" coming out of the company and IMHO was the turning point when people quit taking the company seriously. They would be better off today having never issued that PR. It raised more questions than it answered.
I have no motive.. just trying to spread some sense. I enjoy good debate and discussion when someone is willing to play. To often many just come at you from the defensive position. That emotion is a sign the person is not a sophisticated investor. Professionals in the market check their emotions at the door. I guess that's why I seem so crass to many lol.
The best way to eliminate bashing is to confront it head on. If people are bashing "no financials", put out financials. If the bashers are saying "gagged T/A" ungag the T/A. You have to confront it head on, if you don't you are just giving them more to attack you with. When you hide something you create a breeding ground for conspiracy theories.
You have to tell shareholders the good.. and the bad. Go look at what Expo has done, he followed some of my advice and he has a loving shareholder base as a result.. even when the stock was tanking.
Just be straight with your shareholders. Your better off with a small group of dedicated longs, then to try and attract a bunch of emotional, inexperienced penny players.. of which there simply is not enough of in the market to keep liquidity up. In some ways this message board is you guys own worse enemy. All the inflated speculation and hype is now emotional chaos. It's easy to hype up something new.. it is another thing entirely to try and rebuild confidence in a broken shareholder base.
I was a promoter.. I'm telling you, they turned a good thing into a bad thing when they started putting out PR's from the stinky pinky promoters hand book. The majority of the experienced penny crowd had enough of that crap in 2005-2007 to last a life time. The market is a lot smarter these days.. well, with the recession there is simply less "dumb money" out there.
You can't use what worked in 2005-2007.. we are in a totally different market now.
I don't know the guy.. I'm just going by some of the PR's they have put out.. way to much fluff, obviously meant to rally the not-so-smart retail penny people. When that buyout PR came out I was about to fall out of my chair laughing. Who in the world advised him to do that.. IMHO that is when things started to decline. Up until then they had been doing a fairly good job I thought. A little rough, nothing some polish couldn't fix.. but OMG.. they have created their own train wreck recently.
You are 100% correct.. but you must admit that the company "looks and feels" just like another pink. Their PR/IR has focused on attracting the wrong crowd. Doesn't matter how many true longs you have once you bring in the dreaded retail message board penny crowd. They can be like a plague of locusts.
Yes I do, I provided Expo Holdings, Inc. with PR/IR and we managed to bring in several large dedicated investors. The company went through a very rough patch recently as it was hurt by the weak economy given that it is in manufacturing. That dedicated shareholder base is what has helped pull the company through. Many may not see it that way.. but it is the truth.
Your shareholder base does matter.. you saw what happened when the company announced the A/S increase.. that showed you what kind of shareholders you have.
Quickbooks has an export feature.. it creates nice little PDF's. If he wanted too, financials could be posted with minimal effort. If he won't do that there is two reasons, the finanicials look bad.. or his books are a train wreck.
I doubt he could afford an audit.. I get the impression his books are not exactly up to par. Auditors love that though at $200+ an hour.. they can fix anything lol!!
Whoever he brought in to manage his public relations side has been using the "stinky pinky boiler room pump" hand book to promote the company. At first, it seemed like they were not doing such a shabby job.. things started going downhill with buy out PR's and bad CC's. He needs to reboot his public relations side or he will never recover his market.
It doesn't change his cash flow problems, or the poor financial planning, or the rumored clashes with partners. Have you ever seen me state the company was a scam or wasn't real? When they decided to run this thing like a pinky boiler room play they should have expected this outcome. You want a strong stable share price, then you do what is needed to attract good solid investors. Their stock promo campaign has been aimed directly at the message board community and tailored to attract that crowd. That is NOT how you build a strong public company. Jared has teamed up with some real amateur folks on the public side IMHO.
Not really, unless someone mentions something on this board that I like, I simply trade by T/A from the list of stocks I have put in the Ibox. I also day trade FEED almost exclusively now. This board is a good place to share picks, we have some good people who share their finds. It is truly a group effort when you get down to it.
No clue.. I'm a securities guy, show me the agreement and I would understand it. Show me a bunch of court docs and I would need to have my lawyer review it and dumb it down for me haha. I know securities law.. I don't know contract/business law much.
Anything under a 10 P/E, with positive shareholder equity is always welcome. Of course the focus is China. I'm partial to agriculture, but others on the board like all kinds of China deals. Haha.. yeah thanks for the nod.. my online personality can be a hard pill to swallow. Those that want to listen and learn instead of bark I will always gladly share my experience with.
I hadn't read that.. but figured as much. Well that's a few millions less shares you guys have to worry bout lol.
Well if they had been granted the suit, you'd be looking at even more dilution on top of what the company is already doing on its own. That's good news for you guys.. all things considered. I'm not a lawyer, but I think it's just a motion.. there has been no ruling in the matter?
Well that ought to help some lol.
Not yet.. but I will now. At first glance it looks thinly traded so that would nix it from my day trading mix. I'll have to look deeper into the company maybe for a swing trade.
Interesting article and pretty much proves my point.
We just launched in May, http://www.thedlg.com is the design firm I hired to develop our corporate image. If you PM me I can provide more information, right now we are in start-up operations. I'm expecting to launch in late summer.
He may have had a great experience.. but that is subjective to the knowledge of the person obtaining the service. Maybe he thinks $500K to go public was a great deal. I can get some start-up's done under $50K. Like I said.. if he liked spending $500K+ to go public and felt it was reasonable then I'm glad he had a great experience. It is still not cheaper any way you slice it. I guarantee you it is not cheaper. CEO's sometimes forget equity is value. If you merge a $50M company into a shell and only 95% is delivered, that 5% equity is worth $2.5M. You must factor in the equity side when looking at a R/M. Going public from scratch benefits founding shareholders far greater due to the contained distribution of equity. A properly structured DPO or going public on a Form S-1, you will never have to rely on outside sources for funding.. the original shareholders can fund the companies growth by investing, profiting and re-investing.
I 100% disagree, I run a consulting company that offers going public services.
Here are the reasons why a R/M into an OTCBB shell is 100% a waste of money and effort.
1. In most cases you must pay between $250,000 and $500,000 for a clean OTCBB shell with delivery of 95% or better.
2. If the company was ever a reporting company and has since fallen behind on it's reports, or is reported as a shell company, any shares issued in the merger can not take advantage of Rule 144 due to changes in Rule 144.i without first filing a Form 10 or a registration statement.
3. In most cases you have shares held by directors, promoters and previous shareholders of the shell to deal with.
*4. The SEC will require a "Super 8K" or equivalent Form 10, or Form S-1, that provides both financial and non-financial information about the new entity.
The effort and cost required to complete 4. above is the EXACT same amount of effort and cost required to go public directly through SEC filings. The ONLY step that is not needed in a R/M is obtaining a ticker from FINRA and obtaining sponsorship by a market maker, both of which are relatively easy and inexpensive to do.
The cash cost of the shell in most cases is MORE than the total cost of simply registering the private companies shares with the SEC. By going public directly, without a R/M, you are going public with a nice clean slate. The amount of time it takes to conduct proper due diligence on the shell, arrange legal and accounting and effect the merger can sometimes take LONGER than going public direct.
A reverse merger is nothing more than gimmick cooked up by greedy, crooked wall street brokers, to squeeze every ounce of profit from the transaction.
FEED broke up, out at $7.55
My only concern is if they are receiving consulting that advised them to go public through a reverse merger, that they may not be getting honest advise. I frown upon going public through a R/M. It is a complete waste of money and only inrichens the consultants, not the company or its shareholders.
FEED Descending triangle forming on the 1 min with $7.40 as support. Gonna break... which way is the big ??
He looked worn and frustrated too. He also needs to dump investmentnation.com.. The interviewer sounds like he is grilling the poor guy. Remember MN1.com? roflmao.. those guys were harsh. Guess that's why the went out of business.