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I have asked several questions like this in the past, but I keep being directed to the PRs and filings. It's part of the DD of LDSR that isn't being addressed. There are inconsistencies around strategy that should raise anyone's eyebrows.
Poorme is right in that the hype has been scaled down, and it is reflected in the relatively small change in pps with each successive "good news" PR. The problem is that there is so much resistance at levels in the high twenty's and above (with all those that got shares dumped on in the prior 6-7 months) that no MM will dare to take it up to those levels unless they are guaranteed that there is a new crop of retails ready to buy into those levels. Without meaningful events, I would be shocked to see this up there anytime soon. I estimate close to 500-700 mbillion shares are held by retail at those higher levels, most of whom are just waiting to break even and get out.....
Are you still wondering if the company is buying, profit2? Have you or Breezin wondered why there was a PR regarding a no dilution policy, then a PR about a possible merger, then an increase in A/S and a rescinding of the no capitalization policy, then a PR about a buyback, where the language completely contradicts what was announced in a previous PR about the need to increase share count to accomodate the talked-about merger? I welcome intelligent comments, not wild accusations about bashing and the like.
Ok, so let me see if I understand this correctly....they went ahead and increased the A/S to close to 9B, citing the potential merger and the need for this re-capitalization. Now they announce that they plan to buy back shares because it is needed for the merger???? Can anyone here clarify this? Let your imagination run wild.....
Breezin,what does "We intend to jointly (all 3 or possibly 4 companies) completed our audit " mean, setting aside the obvious grammatical error("completed")? Further, "...presented to us is simply roll up all three audited companies ", does this mean that the other 2 companies already have audits in place or are currently being audited or will undergo an audit if this option is chosen?
The fact of the matter is that there is huge resistance at levels above .003. there will be considerable selling pressure if the price were moved up to those levels, as many retail who bought into the hype who are stuck there will sell to break even or lose a little. Smart money knows that and hence none of any additional PRs will make any dent unless they are about the audit.
This will be ready for a nice % gain once it hits the high single digits (the "bounce"). I feel for those that are stuck in other stocks like HTDS, SKGO, that are going through similar issues. Now the latest we read is that the audit may come out in 1H10. In the meantime, the A/S has gone up dramatically, the company has PR'ed contracts with lower values, the number of PRs with "considerations" or "discussions" has gone up, and many more signs. Where is the duck?
Master T, even if this rule applied here, if there is no buying and only selling (regular selling, not shorting), the price will still go down....."Hope" is not a word to use or reference when dealing with a sub-penny stock like LDSR.
I know you are smarter than that, profit2. I wonder how long retail investors will continue to wait for the promised audit. Maybe the new PRs coming out have an opportunity to attract a new crop of people into buying the shares that previous buyers are caught up with now (at higher levels)? Not holding my breath, though. Just looking for a good entry point for a quick gain.
GLTY. There probably will be another hype happening soon,s imilar to the one that took it from .0007 to .0026. The big boys that are playing this know that there are many people stuck at levels way above .003. They first want to make sure there is a new herd that is ready to latch on before they decide to move this up, if they are still here. Most of the time, they move on to another hype stock after they have made the easy money.....
No need to address that filing......it speaks for itself. Quite comical to see those claiming to be buying huge amounts when the data don't support their claim. The pattern seems blantantly obvious, IMO;
BTW, I picked up a cool 20M just now........................
Doubtful he bought 3M yesterday. There was a total of 7M+ shares traded, and there were sell trades totaling 5M+ shares mid-day yesterday that dropped the price to 0.0016 (and bid at one point to 0.0014). A buy of 1M shares is more likely, but not 3M. More BS on the board.
The next leg down seems to be starting now. It hit 0.0017 as I am typing this (a trade of 5000 shares worth $8.5!). This stock was hyped into the run-up where there was heavy selling, and retail got stuck. Audit?? GLTA who are relying on this to be able to recoup their losses. No pro-LDSR poster seems to be able to explain where that original 1B shares went that were set aside for a "merger", nor any inconsistency in the latest PR about the progress with the US company. I am so surprised that people still cling on to hope and can be that gullible. The history is there for all to see. Look at another stock, SKGO, and see the similarities.............
Similar situation to what happened with LDSR.....there is hype and the key is not to get caught in the run-up as the smart money is "selling" into this hype. Need to wait now for the next round of hype.
At the rate this is going, we may be through the first quarter without an audited report. IR may say that now the company will include the first quarter results in the audit, which is what they mentioned for Q4 2009..........
good luck with that. IMO, the smart money was selling all the way to .01 as retailers were buying, and THEY know who bought at what levels, which is why this hasn't gone over 0.0038 since the initial hype. Many retailers have been stuck at 0.004 and higher. Need to wait for the next hype to bring in a new set of retailers that you can unload your shares to. In order to sustain pps of 0.002 with potentially 8.8B shares in the pool at some point in the future, the other "merger" companies would have to have a market cap of roughly $5M each
Did anyone catch the somewhat conflicting statements made about the GA-based company, among other things, in the latest PR? Seems like a continuation of the history......
hmmmmm.....why wouldn't they release the audit results when they have them, regardless of what "option" is being considered? Isn't it actually to the company's benefit to release the results as soon as possible? This would positively impact LDSR's share price and thus allow them to negotiate from a stronger position and possibly minimizing dilution. It sounds like the divvy issue repeated..........
Master T, what is the purpose of presenting this "report"? What value does it add to the discussion of LDSR, above and beyond what is already out there?
"...the next great ascent"??????
did you look at the chart back when it went to .01? Did you breakdown the volume by buys/sells? Notice that there was a balance between buys and sells, yet the price still went up to .01? Normally in a situation like this, there would be more buys than sells. Someone (or a bunch of people) were selling into the hype as people like poorme and other retail were buying. The smart money made their profit. Notice that it has not gone over .0038 in the past several months? There are many retail "investors" who bought in in the 4s, 5s, 6s, even 7s, and the smart money knows this.
I wonder where all the "considerations" and "agreements to continue the discussions" that were announced 4-5 months ago are now?
Breezin, I'll check back with you in the summer on the status of the audit of LDSR. As investors, you need something verifiable, not just hype and PR. I'll honk my horn when I see the audit, my friend.
Exactly the point....BTW, it is what MARINE-1 has been saying on this board for quite some time - that this is good for a flip (trade).
What about adding lies, deceit, theft, etc????
"These shares shall be only used for a merger purposes and, following the merger, these restricted shares will be placed in escrow with an agent in the USA. LDSR management hopes to complete the merger without increasing its current float or free trading share structure, and diffuses any ideas from public about the possibility of the reverse stock split. No such actions are planned nor warranted. The "no reverse stock" policy of LDSR remains undisturbed, and no stock reversal of any kind is planned or contemplated. "
Ok, you underlined several words. First, let me underline "hopes". That is a term used intentionally to keep it vague and not approachable in legal proceedings. Second, the reverse split. With 8.8B at some point outstanding and in the float (I am giving the benefit of the doubt and assuming a 2-5 year period for the restriction), a reverse split for the company becomes inevitable, especially if it wants to get to levels above OTCBB (assuming it gets there first). Third, the use of "policy of LDSR". There was a no dilution policy in place (according to their PR) last fall, but obviously that was recinded very quickly. What makes you believe that this no RS policy won't go the same fate?
After the failed merger last year in which they set aside a billion plus shares for, why didn't they cancel those? What guarantee is there that this won't happen again and you won't see 8.8B outstanding?
If they PR'ed pigs can fly, would you believe it? I am surprised at the lack of objectivity sometimes, and the dominance of naivite.
This is turning more bizzare now. The PR that just came out is more of the same. I still ask where the substance is. The PR is updating on the merger (which is more of the same play on words). Where is the update on the audit? 8.8B A/S?????
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I classified them in the oil services industry. Do you think they deserve a higher PE (~4X higher)?
Simple calculations...but please correct me if I mistated anything. I am going by the numbers from the fall. A pps of .01, with an O/S of 3.4B, would yield a market cap of 34M. Given stated assets of 10M and profit of say, 500K, that market cap is exceedingly high, IMO. If we assume a net profit of 500K, then the PE at 0.01 is 68. IMO, that is also a very high number for this industry, where the PEs maybe in the teens. Again, please edit any numbers that I put down - it was a crude calculation.
Spot on. If you just did the math, you will quickly see that a PPS of .01 is not sustainable, unless the PE on this stock (or industry) was of pre-tech bubble proportions. The market cap on this company with a pps of .01 is way overvalued, given its stated assets, revenues, and margins.
Very true. Let's see if there is any truth to the statement IR made in a response, "they want the audit so bad it hurts". A rather unprofessional response to an investor inquiry, wouldn't you agree?
Right now, the chart is converging on a sell signal. If the audit doesn't come out by the end of this month.............
Good for you. You had me there for a second.
The best strategy has been to find the right entry points and exit with a pre-determined profit margin (i always like the 20-30% for stocks like these). Need to treat this as a trade, not an investment, IMO.`
I am not sure why you continue to post and expect the readers to believe anything you write; your "predictions" for the timing of the audit have not materialized. What is your next greatest prediction for LDSR? A reverse split??
What the presentation of the "merger" subject did was to remove the focus from the audit, IMO.
Zinn21, I actually was surprised reading your post. In your previous posts, you seemed level-headed and balanced in your view on this company. Writing about turning millions into billions is premature at this point, if not unrealistic. The audit is one of the pieces of the puzzle, and I am surprised that they have gone quiet on it recently.
There have been several red flags that have been coming up since the run-up; one of which I hope posters on this mb could take a stab at addressing. Why go back on the no dilution policy (which is a red flag by itself) and not tap into the line of credit instead? They could easily accomodate the "merger" with a few million from that. It just seems to me that there is a belief that american investors can once again pay the bill for this. Any thoughts?
Most of the trades were hitting the bid; that was adding up significantly to beyond 5 millions shares in that 30 mins or so.
Did you actually look at the volume that went through? It was not a couple of 5000 share trades...............
This really s beginning to sound like a duck to me. The email from IR means that the "audit" may be coming out much later now. It is confusing that their first mention of a merger was around a US company, then the one about one of the five suppliers china based), and now a PR around advanced talks with a company whose revenue and profit numbers are different from what was presented in the past. Why rescind the no dilution policy and not tap into the line of credit they have? I welcome responses from anyone who is positive on LDSR, as that may help understand a different point of view. I must admit that something seems very wrong to me.
Interestingly, they mentioned the steps in the merger process, but they did not specify which step they are in. Didn't they mention in a PR last fall that the merger talks were with a US company? One last thing of note, they mentioned that a second party came forward after hearing of the merger and wanted in on it. LDSR will be going back to assess this. What this conveniently does is push back any announcment of a formal merge, in addition to possibly setting aside the audit issue for now, as you stated, zinn21.
If it holds 0.0017, that would be the minimum entry point for you techies.................
Why would there be a PR on the no recapitalization policy while at the same time there is a PR on a merger potential, and then a PR like this at the end of this past week? Why was the no recap policy hailed as a great thing back when the PR came out in the fall, and not a possible dilution is being hailed as great for the company?
That is the problem....the use of "hopefully". "Hoping" and stocks should never mix. There was hope that news would come in late 09 (by your own post); now we are "hoping" it comes out this quarter. There is no place for emotion in trading - just look at all those who bought on emotion (euphoria) in the run-up to .01.
I continue to look for entry points based on technicals. If it so happens that I get in at the right time if/when this goes up 100%, 200%, or more, then great. If not, I am still happy with the 20-30% gains. There is a reason the pps is were it is now.
Many times, when a stock price is downward trending as in this case, it means that there is a lack of confidence in it, and investors run to more solid investments. It is somewhat comical to read some of the posts over the past 3 months....initially it was news coming out by year end and pps skyrocketing, now it seems that the tune has changed to this quarter. For everyone involved here in this stock, I hope it is not a con and that the pps is temporarily depressed. If it closes at .0011, it looks like it will start the next leg down, beyond .0007.
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