Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Is there a lack of transparency in the way Toms is manipulating the stock of Cape Systems, Yes. There is no doubt about that.
But a scam? No. The company is viable, there's no doubt about that either. Cape isn't just a shell for Toms to dump debt and bleed investors.
Basically, the way this company was issuing convertibles to cover debt before and early in Toms 'reign' was mind boggling. Now it's time to pay the piper and convert the shares, and the only way Cape could do this, and not take a bloodbath, is to keep the share price low and dilute until after they were covered. The silence allowed them to do that, and now we are waiting for Cape's next move.
The same person who always whacks the bid at EOD. Been doing it for months... Somebody wants it to stay low, methinks it has something to do with controlling the conversion price of the remaining convertibles.
No last-minute 10-cent paint-job to 0003X0004... very interesting.
I couldn't agree more. Well put.
The stock has obviously been neglected and manipulated up to this point, in a way which inspires little confidence if one looks at the situation with blinders on... In my opinion there is a method to this, however, which is laid out in past filings. That is what leads me to believe it is still likely that the stock will once again reflect the performance of the company. Otherwise, I wouldn't be here. Still, I didn't go mortgage my home to load up. But my modest 15 million shares will either be a great first half of the year, or an acceptable write-off.
It's one thing to be realistic... but another to simply bash, that's generally an indication that someone jumped in to soon or too deep themselves, and is doing their research after the fact.
That's hilarious... let us know how that works out for ya'.
Thank you very much, sir!
I'd like to hear about any recent comms... I'm very interested in what facts we do have, since I'm in this long.
The short answer is yes... I'll link a previous post I made to that effect so I don't repeat myself. But the increase in A/S coincided perfectly with the number of shares required to keep the convertibles below 4.9% of the total.
As to holding restrictions, we don't know... that information was never made known to me, at least. It does not seem that the shares were immediatly marketable.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=46596403
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47653759
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=47651796
The dilution was required because of the conversion of warrants issued by the company 5 years ago, with the restriction that the total number of resulting shares from the conversion could not exceed 4.9% of the A/S... so they raised the A/S while they converted the shares.
IMO, I believe DNPI may be using this to their advantage if a merger is imminent, because they would likely have been buying all or most of the 'new' shares... so the end result is DNPI is the majority holder without having to buy any shares at market value, and CYSG is debt-free.
I'm sure that 3 years of financial information for CYSG and it's subs is a huge undertaking... but I doubt it's more than a 6 month undertaking.
This is happening soon, or is was never going to.
Several members reported having phone conversations with the CEO, the first target was by the end of the year (2009), the second was the end of March, and the third was sometime in April. Those have all passed... I personally think that he was just buying time. I also think that if we don't get some word from the company this month, we're not going to.
I believe they'll file them with the SEC, pinksheets will pick it up from them (if Cape doesn't send them a copy). It should be as simple as uploading the audited documents to Edgar, along with an electronically filled out and signed form. Some of the delay may come as the SEC will review the documents before publishing them.
FWIW, I don't claim to be an expert.
We are approaching the high volume seen back in Sept.
If ya think about it... the company couldn't have set themselves up better. The question really is, now, do the investors get anything out of it...?
The best case scenario would be filing audited financials... followed by merger or aquisition. I guess we'll find out. Today would be another good day for that to happen, considering the attention it is getting today because of the volume.
Interesting pattern we have going... I'm impressed by the volume today, something's definetly being set up. Hope it's good.
I haven't started losing sleep yet... I probably will here in about a week. But I can say that Sunday night I had a dream that I logged in to my trading account and there were 2 fat PRs, a 10-K and an N-14 hot off the presses, and I was looking at a number with more zeros behind it than in front of it...
Dare to dream I guess, but I have a good feeling about it.
Anyone spoken with Toms or Cape IR in the past few days?
Sounded like a joke made out of frustration, to me.
2012 right? Gotta get it in before the galactic alignment.
i expekt wailing and nashing of teeth. i got kleenex for my tears.
Last day of April... let's see what May brings. My optimism for financials will expire in 17 days.
I guess I should have been thinking smaller... but in another sense, those extra 10,000 shares may someday be worth something, but the 250 which were dumped are now permanently worth 10 cents.
The $5 solution... there ya go.
...and then somebody dumps 10 cents worth to close at .0004 anyways, LOL.
If the lack of communication from DNPI is in fact a 'quiet period' prior to merger, then we won't likely be seeing anything of substance from either company until May 1. That's a shot in the dark, but plausible.
Been pretty dead lately... aren't we due for a PR?
You have our attention now, Toms... what else you got for us?
There is no 'proof' of either scenario... but this stock is artificially undervalued, undeniably, and there's a reason. One potential reason is a merger, that makes the most sense (whether or not you agree), since they could very easily have been pumping and inflating the PPS while dumping, but that's not what was occuring. The stock was being aquired by a preferred entity at a reduced price, after the dilution required by the convertible warrants was complete.
Seems to me that they'd exchange DNPI shares for our CYSG shares... if they do that today, for instance, we'd most likely be looking at something close to 1 DNPI share for every 1000 CYSG shares... but all that really depends on whether CYSG financials are released before or after a merger. It would be my guess that for DNPI to buy CYSG the cheapest, they would do that first and then immediatly release an amended filing for the new company, so DNPI would realize the gains.
It would seem to me that if a merger, preceded or accompanied by audited financial statements is going to occur (which I believe is more likely than it going down the tubes, considering the legitimacy of both companies), then it will be announced this summer... as I've said before, my impression is that there was a 60-day window after the March anniversary of one major batch of convertible warrants to be exercised and filled... and on top of that, the May anniversary of their last filing before they went silent for 3 years. I don't believe there to be anything magical about these or any of the other anniversaries clustered in this time-frame other than having made me take note of the coincidence of when they take place and the fulfillment of the debt accompanied by the dilution to facilitate it. I also believe the SEC will have something to say about this company not reporting for 3 years, once that anniversary comes, so the clock is indeed ticking, but it's not based on anything I or anyone else here has been counting down so far... My anticipation has not subsided, because we are still within the window of opportunity in which I decided for myself to stay invested in this from the beginning. After that, the likelihood of anything dramatically positive coming to fruition is low, and this becomes a long position of diminished proportions for me... but either way, there's no sense in getting emotional about this stock right now. If one is, then they have bit off more than they can chew and that's noone else's fault... not the mods' and not Tom's.
Good luck, and may Toms and CYSG exceed our expectations.
Seems to me that everything is done but the paperwork. Only question is why they are running out the clock. From what I have seen in a few cases, pinks have been halted by the SEC after 3 years of non-reporting when they have registered shares (not that that seems to be a rule that I can find)... But, if we have nothing by the May 16 anniversary, is my guess, we'll potentially be looking at a different ballgame. About then I will be significantly reducing my position if nothing else has changed, just based on the odds.
I still think that this has a great shot at making news, in the meantime.
Dilution as a result of exercising convertible warrants does not require a vote.
Hell, we've waited this long... I think the gains will make it worthwhile, personally.
Make it May... I'll still be here.
The end of the month is the 31st... which is a Wed... and Wed appears to be a favorite for Toms to release PRs, etc (coincidence perhaps)... and it's also marks the end of their fiscal 2nd quarter, I believe.
I'm expecting something that day... perhaps not everything, but at least a start.
Yeah, that was me.
...well my 500 share test went through on DNPI within seconds, so it's no glitch.
Everybody waiting for something this morning?
Very quiet first half-hour... is my screen correct there have been zero trades on CYSG or DNPI yet?
...Did they say if they were still servicing Decision Point Systems?
One of the MM's for CYSG. You'll see them on L2.
I agree. I have long speculated that the dilution was required in order to exercise the convertible notes into multiple discounted shares each, which are/were being bought up by either CYSG or DNPI... this is following Toms pattern for buyout nicely IMO.