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We will undoubtedly pick up an ETF that wants a position in the stock for its China based fund.
Let the gains begin.
The Olympic Games in Beijing will showcase the remarkable growth and development -- both economic and cultural -- that has shaped China over the past two decades. For the next two weeks the global spotlight will focus on this complex country, and people will watch closely to see how well it hosts athletes and visitors from around the world.
Many investors are pinning their hopes that the Olympics will light a torch under a group of exchange-traded funds that invest in Chinese stocks. After being the hottest performer of the past couple of years, China's market is down sharply as many developed economies lose steam. Accordingly, demand for the goods China makes is slacking, and the country's own stratospheric growth is slowing as well.
Investors are betting that thousands of hours of Olympic-related television programming, coupled with Internet and other worldwide media attention, may be the spark to get China's economic engine roaring again.
Trouble is, it will take an Olympic-sized effort to get more gold and silver out of China's ETFs. China's manufacturers can no longer rely on important export markets in Europe and North America. The U.S. could be in recession, and the downturn threatens to spread globally. Domestic demand isn't likely to pick up the slack: China's own housing and financial sectors are already softening.
Still, the opening ceremony of this XIX Olympiad takes place on 8/8/08. The number eight is auspicious in Chinese culture, signifying prosperity and good fortune. The Olympic stadium was built to resemble a bird's nest -- also a fortuitous symbol in China.
Do you believe in miracles?
These fools don't know what they want!
http://www.hiphopdx.com/index/news/id.7454/title.dr-dre-cognac-to-hit-market-in-time-for-detox
What's really sad is buyout offers above the all time high turned down because by unanimous decision all feel the company is worth 5-10 times the price.
Whoever figures it out first will make 6000% on their money.
Tir, what's amazing to me is how all the press for Drinks garners this fresh interest in the company to cover them up for 10 years....
And nobody picks up on the stock as probably the best value play this market has seen in many years.
Viability
Great name for an energy drink huh? lol
Nobody caught it except us! Last year a world record 168 million liters of cognac sold and a worldwide cognac shortage. Now here comes Dre creating even more demand. What you think is going to happen in that case? Distributors will be lining up to pre order to get their hands on cognac the instant it gets here so they don't risk not being able to get any or being delayed. WE know that won't be a problem but they only work off what the business is telling them.
The simplest answer to everyone's questions are "all will avail itself in due course."
Since so many continue to key on the past as a precursor to future events, then why not look at it more closely. Trump was announced and the stock zoomed to 1.08 from 45 cents. Before Trump could land in NY, the stock retraced to new lows at 35 cents. Hardly a reason to get excited. Preliminary order news brought it back to base around 70 cents. It was only the "exponential" sales increase (I love that word and will now begin using it a lot) that brought fresh money to the stock that caused the run to $3.58 in short order.
This situation is not all that different. We have come full circle. The announcement of Dre prompted the price to triple from 20 cents to 60 cents. Yet it retraces to print as low as 19 cents as the time from announcment to market wanes enthusiasm. We are in that phase again where all the great news continues to see the stock slighted without fresh interest from the same kind of hedge money that took it up the first time. Only when you see Kenny's preliminary PR like we saw in Trump that preliminary orders are huge, then we will see that fresh money that can move through the minimal resistance that appears to us as fortuitous.
If I sent out a barrage of profile pages to numerous distributors and it prompted SWS, the largest in the biz, to get ahold of Kenny and lock in an initial order of 50000 cases of cognac to fill immediately, then that would be an initial order surge of $10 mil from one distributor without accounting for reorders OR for any other demand nationwide. That order alone would cause the initial release of cognac to surpass the company's largest sales year to date. That would get the stock moving well. When Kenny files another NT stating a delay due to a 600% increase in sales, then it will fly like it did the first time around. In this case, it leads to a profitable quarter.
If Kenny expands the company to heights no one expected, that also leads to implications of further profitability in the future. That would ordinarily take any company much higher as the metric of growth crosses so many analysts desks.
With respect to another exchange, yes, it will happen. But it is a process. Let's say the same company that took HANS to Goldman Sachs back in 2001 came a knocking on the door again with Kenny. The business plan is almost identical and the metric for growth is on the same lines. Some will immediately dismiss the idea. They all did just that on HANS back then also. They forget that when it starts, it snows a blizzard. Business comes from everyhwere and you add people to keep bringing in even more business.
You lock and load an analyst. You catch a couple of hedges. Dre and Interscope will get paid. So you know we will see at least 1.28. Then that move brings fresh money to take it straight over $2 as they learn of the "exponential" sales increases. The profitable quarter brings more $$$ to the stock. Then you have all the Standards met for an exchange listing.
Since it already happened once then it is a matter of who figures out first it will happen again. Only this time even stronger. As I said before, when it does most won't even realize what is going on. And that is what they will prey on and the only way they can get all your shares to make it incredibly profitable for them.
Sorry, not going to share everything.
The WTF meter just moved to 10 on a scale of 10.
The WTF meter moved to 7 when DKAM announced Trump and a little 60 cent stock jumped over a dollar only to see it back up to fresh new all time lows at 35 cents.
The WTF meter fell back to 3 when Trump was introduced and sales grew to the highest in company history sending the stock to new all time highs at $3.58. Some contend the the WTF meter went off the charts on that run because of how easily it moved.
The WTF meter jumped to 8 almost overnight when the company couldn't follow up the metoric sales with even more metoric sales. A certain someone and their hedge fund dumped along with a truck full of 144's that by some clairvoyant gift from the gods just happened to know this stock would mysteriously fall from grace for two years.
The WTF meter jumped to 9 when the company took the first step to getting a major exchange listing by doing some financing to clean up all the loans and clear the debt off the balance sheet. Where 80% of the companies out there see their stock appreciate in price virtually immediately on this kind of move because it lends to overall viability of the company and virtually assures that the CEO can complete his business plan, this one did not. It lost 93% of its value. Sending it to new all time lows of 14 cents.
The WTF meter jumped to 10 when it was announced in a two day period that: the company increased sales by 108% from last quarter; 40% from last year; became the only beverage company to post triple and double digits gains in its earnings report during the height of recession; announced Aftermath Beverage Company; announced its cognac maker in Abecassis to assure there will be no cognac shortage in a world that is experiencing a big cognac shortage; announced the release of cognac in Europe and then the US in the next 60 days; announced the release of flavored sparkling vodkas in the next 60 days; announced pre sales demand for both products; announced a beer release with classic golf partners; another product release; made it on MTV news; Reuters news; Billboard news; announced a 200% aggregate growth metric over the past two years; cut their loss per share in half in the past two years; cut their debt by over 90% in the past 2 years; announced the CEO of Universal Interscope says, "with us Drinks Americas will be a billion dollar company."; announced the company is moving towards profitability; announced they were moving into China, India, and Europe; announced they are an acquisition target....
And, the stock loses 20% of its value.
I've actually had to institute a turbo charged WTF meter to handle the load with a red zone to 15. We actually just moved up to oscillate around 12 in that NITE can continue to castrate this stock day after day and the sheer fact the price of the stock is a laughable 29 cents.
I threw away the laugh meter well over a year ago.
Exactly! I also said go with the pinstripes and some color. Do a Yankee team every year and make it a collector's series with a different player on every bottle.
They would never run out before we're dead.
If they ever win the series again; sales triple.
What was said two years ago?
"$3.58 and going higher"
:)
Tir, this goes along the same lines of the idea I sent them awhile ago. If you want to re introduce the Rheingold brand, why not do it in style. Get Steinbrenner up in there and let's get the deal done.
Makes perfect sense. Rheingold is the beer of NYC.
Rheingold...."New York City's beer and The Pride of the Yankees"
or
"Rheingold and The Yankees...New York City's Team; New York City's Beer."
I know. They're working on it.
The new 45 of them.
The drink of the gods!
Now we have to stare at this price for who knows how long before it goes $15.
Sucks
OMGGGGGGGGGGGGGGGGGG!!!!!!!!!!!!!!!!!!!!!!!
OMG! I just wet my pants, pooped my pants, and Slim has had the occupied sign on the door of the outhouse for days!
OMG!!!!!!!!!!
This is so huge.
Just what we said 2 years ago.
I also got an e mail from Kenny saying what we were doing with the sales was huge.
He said everybody is so covered up with the snowstorm they are all working into the wee hours of the morning to keep up with the phone calls and correspondence about what is happening.
I smell at least 50 iconic beverages now!
Because I'm of the opinion that the continual nonsense we see is a combination of a program NITE is running and those people that NITE picked up when SBSH and ARCA pulled out. I won't be a party to buying up a few of their shares so they can flip back down on the bids and continue to play their little game.
My best efforts are served bringing in the one things that WILL make this stock run. The same thing that made it go up the first time over 400% and that is announcing a sales PR that eclipses their best year as a company in just one launch.
At the same time, the company already said they will have money buying this stock and it's obvious they will. You know how it goes. Universal will make sure they can cash those $1.28 warrants so at any time the right groups will show up to take it there. Probably in one day is my guess. More than likely it will be way before the news that carries it even further.
Right now it is all about psychology. Once NITE is yanked by the Feds then money will know they can move it with ease just like they did the first time.
See, this is what NITE has done to everybody. You are convinced that we are in a holding pattern until we see fresh news. What makes you think the company can ever go up on good news? NITE has managed to rob this stock of positive momentum on 43 of 48 positive press releases in th past 18 months.
At the same time, even Reuters showed everybody that the company has more than cut their losses in half and more than doubled their revenues in the past two years.
Net result is no change in the number of shareholders and yet the stock lanquishes 93% off its highs and 68% below where it was before Trump was ever announced.
There has been nothing priced into this stock for the 8 press releases of positive news contained in Monday's report.
Let's get some of that positive momentum first then we'll worry about the other 42 positive news items that went unrealized without moving the stock.
Once all that happens, then the news you say we need will be what it should be for; taking the stock to new highs.
NITE is achieving their goal; wearing people out of the stock.
Not any more.
If it matters, a close at .31 or higher here suggests new break out highs very quickly. No volume on this pause. Sure you can wait for $$$$ to show up but no $$$$ drifted it to here and no liquidity blocking this move higher.
Wow I messed up. I accidentally put my e mail on the first couple of e mails I sent last night. Three to be exact. All three responded back to me. One said "We love working with Drinks Americas and will carry any of their products." Another said, "This sounds like an impressive gig for Drinks Americas. We definitely want to be involved. Have someone contact me." The third said, "Thanks for getting in touch. I actually had my daughter mention this to me just yesterday. We need to climb on board."
Kind of a nice mistake to make. All the others are contacting the company directly.
It's in North Kingstown RI. It's Gillians Ale House. He already has his order in for everything! LOL
Plus I sent what I consider to be a good encompassing company profile letter to 5 different analysts. Since the company said they are presently being "interviewed" for coverage, nothing wrong with letting a few deep pockets know about this opportunity in advance of any insitutional buying. The more the merrier if it buries NITE.
Hey no problem. Just be creative and cite the recent news events. If nobody wants to deal with the phones, just make sure you direct e mails on the company's behalf for contact info. If you put your own info it will look rather strange and less likely to garner a response.
I would put up what I said but too easy for somebody to just copy and paste it. Then that will kill it as it appears to be staged. LOL
This question needs to get answered. Somebody asked yesterday about the website. It is being worked on every day now. If you click on the brands, each one is getting numerous links of where it is talked about worldwide. The same is happening with our press and financial info. The webmaster was given stacks of info and he is putting it into the website chronologically and will be brought up to date in 08 soon enough.
Kenny knows that many of the distributors in HANS were invested in the stock. So the website will become an investment vehicle for them as well as a tool to do business with us. You'll love it when it's done. Stay tuned, we;ll be seeing the decanter, the label, and the screen shots at any time.
Ok, I put together a fact sheet short and sweet. It cited the recent events with Dre Aftermath and the Dre 80 proof sparkling flavored vodkas. I also noted that the products are currently in production to be in the US within 60 days and that their current holiday buying demands they make preparations to get product in house now in advance of the release of Detox. I also cited 1 million Google hits for the products along with the buying public looking for these products in advance of Detox with exponential demand once it is released. I even noted the world record for cognac last year while there is a shortage of cognac coming out of France. I told them the time to act is now or there would be a very good chance they would not be able to get product fast enough when all of a sudden their customer accounts were asking for product in droves and they had made no inroads to securing either of Dre's products when it all started to unfold. It would be a dramatic windfall opportunity not to take advantage of. You know, just like Busta's "Pass the Courvoisier" and the instant 3.2 million bottle windfall so shall it be when Dre begins talking Aftermath in the media and on his CD.
I got all the top 5 distributors from the link I posted. I got all of them from our list above. Then I went regionally to the second and third tier distributors. I asked for their commitment to at least a container to assure prompt delivery of product and to make sure they were not having to reorder the instant thir customers got their first shipment where they might risk delays.
In total, there were 67 e mails sent asking a minimum total commmitment of 67000 cases. As far as I can tell, it probably covered around $40 billion in annual US sales of products in those companies.
I won't list them all here. Just take a few minutes and send a half dozen e mails. All the proper contact links are noted on their websites. Just tell them you want to make sure you can get Dre's products at your local liquor stores the instant it is available. They will know about the products.
I'll work today and Friday on the control states to get information to them. They are like dealing with DC beauracracy but all we're doing is offering information and inciting demand. We want our Dre the instant it is available.
With them, we can get initial demand over 80000 cases.
If you've never done any sales work before, please don't make the classic mistake of "cherry picking." That is where you think a certain distributor would not want the products in Boise because it isn't "urban" enough.
Next week, I'll use the yellow internet listings for the 5 biggest metro areas near me and get 40 liquor stores in each area and make contact with each to request they get his products the instant they are available. I've got someone who can knock the calls out quickly in 2 hours per day. That's 200 stores per week for 6 weeks, or 1200 stores asking for a minimum of two cases for each store. Fifty of us doing this can blanket 60 thousand on-premise accounts nationwide all calling the same distributors that we primed this week. I wouldn't worry about the big grocery chains. They are covered.
All totaled we should be able to get the initial demand phase through the holidays at 100K cases. Kenny already gave us one of his "infamous" clues I told you about in his closing remarks,
"We stress and we leave you with the message that this company is about creating valuable brands that our competitors will recognize and pay a premium for or that our shareholders will be rewarded for by ownership of the stock that is the company that they reside in."
Once again, he tells you, as I have always said, this company was formed for the express purpose of being bought out. Whenever a product hits 100K cases in its initial introduction phase, it puts it square in the sites of the big boys for a buyout. You even heard him reiterate what I've said here that a premium branded offering commands $2000 per case on a valuation basis. You even heard him say 100000 cases for Dre. This is how it happens. We can accelerate the process. What we do here in just a few minutes of our time comes back mega fold in shareholder value, company exponential growth, and complete brand awareness.
DKAM: Huge News Out Today!
http://www.mtv.com/news/articles/1592232/20080806/dr_dre.jhtml
Everybody on MTV right now!
Kenny just sent me a note DKAM and Dre been all over MTV today. Must be news segment on his new company and the cognacs and sparkling vodkas.
DTG: Major chart break set up NOW. Viciously sold down and overdone off pre released guidance. Earnings came and went yesterday with sales only down 1.5% and the stock sold off 80% on the prerelease and the soaring oil prices. With the drop in oil so rapidly, the company has guided entirely too low. Airline reservations and car rnetals are ramping rapidly again as the market makes millions feel like they have more discretionary income going into the holidays. With the comeback of the financials and mortgage backed stocks, this one will find its own way on the same lines.
$3.5o pivot break. Specialist is indicating an order imbalance to the buy side. $3.82 break says $4.50 comes quickly.
I am 100% on this one. $4.50, then $5.50, then $7.00.
Here you go! Kenny told us he is running a lean and tight ship. He is busy signing icons. Nobody is minding the store per say getting the orders lined up. They have a dozen employees. We are 671 and now popping 700 strong. We can do our part.
Now how do you suppose we can help? It's simple. If we can't beat them with buying, we can beat them at their own game. That would be sales.
We have 60 days. 60 days to intensify the demand beyond belief. All it takes is an e mail or a phone call. Just a few minutes of your time. Demand encompasses current sales and IMPLIED interest.
Just take a few minutes and call the largest distributors in the country listed blow in the link. Tell them you want to talk to whoever does their cognac and sparkling vodka buying. Tell them there is about to be millions of customers all clammering to buy a special released cognac and line of sparkling vodkas from music artist Dr. Dre. You tell them you just want to make sure they have it in house for their customers when the surge hits. If they ask how that is possible, tell them that Dr. Dre is about to release what is slated to be the largest selling album in history and he will be promoting his cognac and vodkas with his CD and his music. Ask the person you talk to if they remember the huge spike in demand for Hennessy and Courvoisier when the songs came out promoting the brands and the names. The same thing is about to happen here.
Here are the top distributors responsible for about $20 billion in sales:
http://www.medibix.com/CompanySearch.jsp?cs_choice=c&clt_choice=t&treepath=19134&stype=i
We also need to hit our list of internet retailers above to make sure they are properly stocked. There are also new lists of distributors on the DKAM website.
Tell them Dr. Dre's new cognac is called Aftermath Cognac and he also will be introducing a line of sparkling vodkas along with it. If they ask pricing, tell them you're not quite sure but they should contact the company immediately as the first shipments of the cognac to the United States are being put together right now. If they pin you down on a number, tell them it is in line with other XO pricing out there. The company can elaborate more on the sparkling vodkas which are expected to have a greater sales impact than Hypnotiq had when they came out.
Now is the time ALL these guys are doing their buying for the holidays and these products will be in huge demand then natiowide, especially among the urban community.
Direct them to the website. Have Drinks' phone number right there so they can call it after they hang up with you. Tell them his cognac alone has received more than a million Google hits since being announced. Tell them he will be promoting his cognac and vodkas on his MySpace where he has had almost 8 million visitors. Tell him Universal Music and Interscope will be promoting his cognacs and vodkas.
Tell them it would be very sad if ANYONE went into one of their customers stores the instant Dr. Dre puts it on his MySpace and Universal puts out a press release announcing their introduction and YOUR distributorship hasn't ordered any.
In direct respect to the Trump introduction, I have run several different numbers. BNIC says each case is 9 liters. That means wholesale they will go out at $200 a case roughly. Our efforts will bring us initial orders of 40000-50000 cases on top of the pre orders Kenny already has. That says DKAM books $8 mil to $12 mil in sales AND profit into the end of Q2 going into the holiday season of Q3.
While you have them on the phone, ask for the guys that handle their vodkas. While you're on the Dre vodka end, make sure they are handling and beefed up on their Trump Vodka and Trump flavered vodkas. Tell them there is a nationwide promotion coming for the holidays and they should contact DKAM immediately for details to make sure all their customers are properly stocked.
Any problem with that?
If anyone can save me the work of finding the second tier players and post some of the other regional distributors, that would be great. Leave it to Kenny and the gang to suggest 1 or 5 or 10 containers per distributor. A container is 1000 cases.
I'm looking for commitments out of 40 total distributors on a pre order basis just in the US of 40000 cases, or 40 containers. Then we can work up from there.
The main thing is to get them ON the website and talking to Kenny ON the phone.
Enjoy and I bet if you just make one call, you'll be excited with the results. You'll make more!
Just like those potato chips eh? LOL
Let me say this first. You hear it all the time. Short covering is not real buying. At first, it makes you laugh. A buy to cover is a buy is a buy. Not really. A buy to cover is an order placed on the bid that gets bought when someone else sells.
True buying is when an order is placed to buy the supply or higher of a stock placed on the ask. It is the only way a stock can ever go higher. You can buy all day on the bid of a stock, but you are not buying. You are getting filled with someone else's shares who is selling. There is a major difference.
No momentum. No chart breaks. No upside.
Now, stay tuned. I think I just found Kenny's $10 million he was looking for.
Stay tuned for the post of all posts!
Let me put it together. I know most of you are sleeping or playing all those other stocks with $$$$$billions in losses that are going up hundreds of percentage points.
This one should get the job done. In the mean time, decide if you can take 15 minutes to do your part to make this stock go higher.
There were two things to take from the conference call that most will not pick up on until they hear about us later. We have the privilege of being there to know in advance!
The first one is obvious. Jimmy Iovine throwing out the "B" word. You heard it first. You'll hear it many more times.
With all of Iovine's clout and such a robust recommendation the next one goes rather undetected and the single measure of what we're looking for; stock appreciation.
Kenny muttered it under his breath and probably shouldn't have said anything. He said, "We are currently being interviewed by analysts".
Now, this is NOT Kenny taking his doctor bag on up into Goldman Sachs and telling them I have the next HANS. This is being interviewed which means HE has been contacted by analysts and has met with beverage analysts for coverage of the stock. This is not Red Chip nonsense. This is the Big Dance. He can cite the ONLY beverage stock in the world that just posted triple digit gains from last quarter and the largest double digit gains from last year.
I can personally tell you that what is involved in this process will blow NITE and anybody away that thinks they can keep it from moving. These guys have their own market and will leave NITE in the dust on hold for days looking for shares and a cover. It ain't gonna happen.
This is the best news we could have ever expected. Just watch. All of a sudden it will be the fiercest and fastest move you could imagine.
It will make SCA's action of the past three weeks look like an out of market print!
Listen gang, this could be important. Rilo isn't here but from what our CEO is telling me, Knight is responding to the cease and desist order. He is still insisting everyone file their complaints with the SEC to go after the action of the past 19 months, and particularly the action of the past 5 months. He says it is very difficult for management to do anything on our behalf from their end. They can only go after Knight from a general sense of not offering a fair market to trade in. It is our responsibility to go after Knight for the individual manipulative activities we have noted in whole, or in part.
That being the case, I can't make a trade for anyone else. But I am inclined to think that some of our own are right and left handing this stock on top of Knight's shenanigans. I'm not saying it is safe to go back in the water as long as NITE remains on top. At the same time though, there is every indication if this stock starts getting bought here, it could easily begin to break out. I am saying our own are sitting on the ask from .32 to .36 and once bought, they will be gone and putting those same shares back up on the bids to get bought again.
Let me see if I can get us some help in that regard.
The key is still getting the large blocks to execute.
I love seeing the pictures of Knight's Trading Floor posted last night. That way we can zoom in on exactly who we're sending to jail. Makes it more personal. You know, warm and fuzzy like. We can send their families a bottle of cognac with a picture and a note! LOL
Everyone please do me one favor? It is imperative you file your complaint with the SEC and also with the NASD which is now FINRA. FINRA supposedly helps on the broker dealer level. We have violations already by the sheer number of people that have to call their brokers to get them to call NITE and execute orders to buy. When you go to nasd.com, it will redirect you to FINRA for that complaint. When you type in who your complaint is against, just put Knight. Choose either Equity or Capital, they are the same location. I put Capital.
Please also do not post the body or language of any of your complaints here. There is an overwhleming chance that these traders at NITE are watching everything we say. With the DKAM lawyers, DOJ, ICC, SEC, and NASD getting involved, it would be in our best interest to not let them have any chance to do anything about their actions from anything we say.
NITE always #1 every day on the OTC. Today alone, they traded 889 million shares for $43 million in 7800 trades.
That is an average of 114000 shares per trade totaling $5500 per trade.
The average share price being traded is 4.8 cents.
Doesn't it seem more than odd to everyone that this group is expending this much effort to be involved in JUST the OTC alone?
I would almost bet with their messaging capabilities and ability to "locate" shares as well as their ability to see depth that they can without a doubt control which trades execute and which ones don't.
Additionally, I would bet the farm that they are working in concert with offshore interests to provide a platform for naked shorting and their desk of 321 thieves they consider as professionals haven't made one attempt to locate a single short share ever.
Awesome job Log. Keep them coming. It is amazing. It is blatantly obvious what they are doing. How can they not have been put out of business. Fraud is not fines. Fraud is jail time and pulling licenses to never deal in securities again.
This has to be the front for the mob and how they are pulling this off over the entire world in their offshore accounts.
Your feel good post for Wednesday and going forward.
I worked the better part of the day touching base with contacts. As I asked and was answered by Kenny, Dre's Aftermath Beverage Company will not be securing nor will they be introducing any beverages of their own outside of their relationship with Drinks. What we were confirmed was this entity was formed for the express purpose of the equity relationship between Drinks and Dre on his products.
What we were NOT privy to until now that the name encompasses what it is. The Aftermath label owned by Dre housed under his Aftermath Beverage Company.
What does it mean? We should not be overly concerned over the exact release of Detox. It will be much more than that. The introduction and promotion of the Aftermath Beverage line through Drinks will last at least a year with ongoing "bang the market" events, promotions, songs, appearances, and advertising by ALL the Aftermath artists including Busta, Snoop, Eminem, etc etc etc.
The whole show at Aftermath is going after Diddy and Fifty Cent.
Now we know where Iovine got the B word from. Not from Kenny but from Dre.
Yeah but they all have to make a visit to the outhouse sooner or later!
:)
I can answer that one. There was no resistance once it crossed a dollar. There was a minor blip at 1.65 that once broken offered great support when it did pull back slightly. At the time, JSDA and HANS were doing their amazing thing so beverages were the hot topic. When it got severely overbought above 95 on the RSI, the sellers showed up to take profits in the $3.25 - $3.58 area. It was the filing they put out that they were delaying earnings due to a 200% increase in revenues that caused the run. Then when the next earnings release popped and they didn't beat the previous quarter, all hell broke loose. Still, the stock held for a good while in the $2.70-$3.10 area. Rawnoc dumped his huge position on the open the day of earnings in Q3 2007 at $2.69 and everyone chased the price out behind him. Not I. I held. Then right behind it came the financing at $1.80. That caused the bad guys and the nakeds to show up and play the box to drive it into the ground on a Death Spiral. Add to that a couple dozen 144's from contractors trying to get paid.
All the company did was announce they were a force to be reckoned with and we need a little cash to clean up the balance sheet.
Now here we are with 108% increase in revenues and the stock is more than 50% below where it was when all this started. Add to that the company is debt free, the per share losses are less than half, the revenues more than double, the product mix is more than triple, and as per Kenny, the future is exponential.
Makes perfect sense to me.
Two things I need to address. First, the million hits. On July 17, there were 671 shareholders of record. That means in the past 5 months since Dre was announced, every one of those shareholders would have to have hit that combination of the Dre search Kenny referred to 1490 times. Every single one of them. I know I did a lot of searching but on what I did, I might have clicked on maybe 700-800 total. In fact, I doubt even that high.
The next thing that has me baffled beyond belief is the shareholders of record. This stock had 549 shareholders of record in all capacities on July 25, 2005. The next year when Trump was announced, that number jumped up to 627 as of July 21, 2006. Then this stock went on its meteoric run and even when the stock ran and then set new highs only to come crashing down, the shareholders of record on July 31, 2007 was 688.
Now we find the stock on the cusp of their best success as a public company and the shareholders of record has its first drop since going public at 671 on July 17, 2008. I obviously think that number is higher now as more investors came in the end of July.
The point I am making is that with all this great news, we are not growing our net shareholder base. For the most part, if you don't grow your net shareholder base, the price of the stock cannot go higher. I realize one shareholder that comes in and wants to buy up stock could buy up 2 million shares and take out 15 older shareholders. The price moves up and the base drops.
But for sustained share movement to the upside, this story needs 40% shareholder growth combined with 40% year over year growth.
This tells me DME has done absolutely nothing for DKAM. If we are paying them money, then that expense needs to go away immediately. I highly doubt one person has bought this stock from their so called "thousands" of investor packets going out each month.
In fact, I wouldn't be surprised if we should start there. NITE leeched themselves 100% to the bid and ask on DKAM the same time they were retained. More than coincidence and I will get to work to get to the bottom of it.
Think about it. Kenny was telling everyone the stock price was depressed because small cap stocks were down everywhere and the company was being misinterpreted as to its inherent value in the market.
David was telling everyone the stock was down because of a very bad earnings quarter.
C'mon David? What you going to tell them now with 108% and 40% respective growth metrics?
Then when I'm done with all this, I want to know where all these shareholders are. If we have this kind of commitment from this many people, then surely somebody must have figured out by now how to take advantage of fire sale prices. Why haven't the 400+ other people besides us and management taken advantage of these prices. The volume says they have not.
And finally, what about these large groups that have sizable blocks of stock. Any one of them could squash these guys on NITE in a heartbeat. Any one of them could put in a half million share order of size, not get a fill of any shares at all, and then pick up the phone and have these guys and NITE outted. That needs to happen and needs to happen ASAP.
In addition, SBSH and ARCA recently pulled off DKAM together. Word is filtering now that big players were attempting to play DKAM in size whether hedge fund or institution and they could not get orders filled to execute a proper program. SBSH, the #1 MM on DKAM over the past two years exited the stock, as well as, ARCA for "unknown" reasons.
No doubt because they couldn't continue to make a market in a stock where their big players were running into continual roadblocks.