He also failed to mention that once the warrants are exercised and stocknis issued, none of the shares can be sold for at least 6 months and 1 day.

Just curious as to who you heard that from.

NYNY100,

Here you go - straight out of PRED’s latest 10-K report.


On July 16, 2019 and August 1, 2019, a total of 11,000,000 common stock warrants issued to FlagshipSailsRx, LLC, our former sales and marketing contractor, were exercised pursuant to a cashless exercise feature. The cashless exercise resulted in the issuance of 9,172,157 shares of common stock and the cancellation of 1,827,843 warrants in consideration for the exercise price.

Good morning nyny100,

You can go to the footnote in the 10-K report to find out the exact numbers, but I believe the number of “cashless” warrants (prior to being exercised) was 11,000,000 and the number of actual shares issue after the exercise was approximately 9,100,000 shares. Again, please reference the latest 10-K to ascertain the exact number. Once the warrants were converted, the owner of the shares basically had 9,100,000 shares with a zero cost basis. As such, anytime shares were sold at any price, they made a profitable trade. While I have absolutely no way of knowing, based on the exercise price of the warrants and the number of shares received upon exercising the warrants, it would appear that they exercised their warrants and started selling stock when the share price was around the $4.60 - $ 4.70 range.

Pelco- The only issue that I see with the citation that you posted is that it is laced throughout with references to “NASDAQ” rules. Last time I checked, PRED was listed on the Pink Sheets, not the NASDAQ Exchange. Did I miss the announcement that they had been approved to start trading on NASDAQ?

Trust me snow, PRED’s senior management team, illustrious Board of Directors, experienced and knowledgeable investment bankers, Donohoe & Associates and world-class team of intellectual property attorneys (collectively “The Dream Team”), let their guards down and got schooled big time by the Hindenburg Group, the OTCQX officials and the short sellers. While they were caught totally off guard by the attacks, the Dream Team unknowingly aided them in their mission.

Donohoe & Associates apparently convinced management and the Board of Directors that the processing of uplisting to NASDAQ would be a walk in the park due to his prior position within NASDAQ. What was supposed to take 4-6 weeks is now going on 11 months and still no NASDAQ listing is in sight.

The Board of Directors, the senior management team and group of supposedly seasoned investment bankers screwed up really bad when they approved “cashless” warrants being issued to anyone, but especially in such great numbers. Because the holder(s) were not required to put up any cash to exercise their warrants, they ended up with zero cost basis stock that they were able to sell at any price and still make a profit no matter how low the share price fell to (albeit on a lower number of owned shares resulting from the cashless exercise price). They also screwed up big time by not proactively putting into place agreements that would limit the number of shares that could be sold over a predetermined period of time. The Dream Team failed miserably when they refused to aggressively and publicly counter the Hindenburg Report immediately after it was released. Like it or not, their failure to aggressive and immediately respond was perceived by many people to be a quasi admission as to many of the allegations within that report.

The world-class Dream Team has made several major blunders along the way. Some folks say that the people at PRED are too busy building a great company to worry about communicating to the shareholders the vision that they have for the company and the expected timeline to execute that vision. That’s a cop-out in my book because the processes of building a great company and communicating to shareholders are not mutually exclusive events. They can co-exist, and in fact, do co-exist at all great companies. If you want to be a great company, you have to do the things that great companies do. Like the famous line in the movie said, “What we have here is a basic failure to communicate”.

I am PRED long and PRED strong, but that too does not mean that I, or others, can’t also be open-minded, realistic and call a spade a spade. Just because you say critical things does not mean that you are more negative than not on the company. It simply means that you have objectively and unemotionally identified things that you believe might be contributory to them not yet being a “great” company. Although they are all human, and as such vulnerable to making bad decisions (which we all have), hopefully they won’t repeat those same mistakes again. We simply cannot afford the missteps again.

Go PRED. Turn this thing around and start pounding the shorts.

Is he Chinese, Taiwanese or could he be man-ga-nese?

Bear-

I am curious as to why you think today’s close was great. Although the stock price recovered in the final 10-15 minutes of the trading day, it was still down on the day. Plus, with over 900,000 shares traded today, many people obviously still think the stock is going down. All I can say is I hope and pray that all of the shares that are being sold, are being acquired by only one or two investors that are committed to holding onto the stock for the foreseeable future. I am super long the stock (too long according to my overall net worth) and I am a strong believer in the company, its Board of Directors and its in-line employees. As humans, we all make mistakes. Pred’s senior management team, Board of Directors and advisors are not exempt from such things. In my opinion, they collectively got out-schooled by Hindenburg and the shorts, they made a huge mistake in issuing cashless warrants because when exercised, the holder of the newly issued stock had a zero cost basis in his shares) and they failed to proactively get all of the large shareholders to agree to limit the amount of stock that they could sell over a certain period of time. I hope that they learned from their mistakes. As longs, we all suffered tremendously from their errors.

A lot of the stock was issued when PRED acquired additional companies. What better testimony is there as to the perceived value of an acquiring company than when the seller, who has worked all of his professional life to build a company, is willing to take 100% of his payment in PRED stock. Case closed!

Good evening big boy,

Wow, I really like your confidence level relative to PRED being uplisted to NASDAQ, could you please share with us why you think that will still occur after the fiasco we saw on the OTCQX up listing and subsequent delisting? Thank you very much and have a great evening.

Really? Thanks for providing the board with an announcement from a week ago. I don’t think anyone on this board had seen it.

He is a man of few words, but the few words he wrote are powerful. Enough said.

Piper -

I was having a great evening until you started posting (err - whining). Please change you diaper as I think it got filled up on Friday.

Correct stockboy. Even tho there are 75 million shares in the float, the question is how many of those shares are in the hands of those that are TRULY long-term investors who have do not intend to sell their shares for many years.

I was not asking you to reveal your “sources” since everyone on this message board seems to have at least one. The name of the particular individual that tells you, me or anyone else something is immaterial as it should really only be the the actual content of the message that really matters. That said, your reply within itself tells me that your source is neither of the two previous mentioned individuals.

“But it’s nice to hear it reinforced by someone I very much trust and respect”.

I am going to go out on a limb and say that would not be Merle and Barry.

I hope and pray that the person(s) who have been selling all of the shares over the past few months is finally out of stock. Whoever has been unloading all of the stock is responsible for doing more damage to the share price than the shorts (actual or naked) have ever done. I hope that they are happy with whatever amount of money they got because they left a lot of carnage along the way.

However, I think there might be a bright side to the story. I hope that the millions of shares that were sold were purchased by a VERY LIMITED number of investors. If so, they are probably now in the hands of a strong long that will not be selling for a while. Moreover, having a ton of shares in strong hands will make it more difficult for shirts to find shares to cover their positions once the stock starts to go up.

While a reverse split would reduce the number of outstanding shares, it would have no effect on the shorts position because their short position would also be reduced by the same percentage as the reverse split would have on those that are long the stock. As such, I don’t think that big boy is talking about a reverse split.

Good evening big boy,

You are absolutely correct in that there is a “quite period” during the time that an application to uplist to NASDAQ is pending consideration. However, the quiet period is not equivalent to a total “gag order”. Companies are allowed to still issue information during the quiet period as long as the information that is released to the public is FACTUAL and VERIFIABLE. No estimates, projections, etc. can be included in the release since such things are based on supposition.

Naked shorters don’t pay any attention as to how many shares are in the float.

Are you saying that one or more people or institutions that currently have shares on deposit at DTC are going to withdraw their shares from DTC and reissued to them in certificate form (and as a result reduce the number of shares in the float)?

I agree with the basic premise of your post, but “technically” (as I am sure that you are completely aware), Deloitte will not be issuing an auditor’s opinion on the 1st quarter statements. A review is substantially less in scope than an audit.

Quarterly reports are not audited; they are generally only reviewed so I don’t believe Deloitte will be issuingg an audit opinion of the 1st quarter statements which are due this week.

If it’s an “insider” as you claim that is selling the stock (and I have absolutely no reason to doubt you), why has that insider not filed the appropriate disclosure forms with the SEC related to the selling of their shares? Surely, by birtue of their status as an insider, they would know the rules. Could their failure to file the required forms be the reason that they have been determined to be “out of compliance”? If so, then it would look to me like an organization other than the OTCQX would have made the decision that they were non-compliant with the uplisting rules and once the officials at OTCQX were informed of the non-compliance issue by the outside organization, they made a decision to delist them until they got an “all clear” signal as to PRED being compliant. I am just as confused as everyone else about the issue. Any expanded narrative by you would be most appreciated. Have a nice day.

Please go back and read my posts very carefully. No where in any of them did I ever say that there was “no” shorting going on at all with PRED stock. I simply said that the “overwhelming majority” of the stock that was being sold was being sold by longs that have either a zero cost basis or a low cost basis in the stock. There is a huge difference between what I said and what you are trying to infer that I said.

Bingo! At $ 1.00 per share, there is no "meat left on the bones" for shorts. The risk would be too great and they know it. The selling is REAL and I guarantee you that shares are being sold by one or more individuals/institutions that have been LONG the stock. Don't buy the argument that it is all to be blamed on short selling or that the stock is being manipulated. What you are seeing is true market forces in action - someone wanting to sell a ton of no-cost or low-cost basis shares at ridiculously low prices and someone on the other end wanting to buy a ton of shares at a bargain basement price. Supply and Demand - the backbone of capitalism. As longs, we don't have to like the current situation, but whoever is selling will eventually run out of shares to sell.

"Management" cannot willfully drive down the price of the stock any more than they can willfully drive up the price of the stock. The company cannot legally trade its own stock. Plus, does it really make sense that the company would want to drive down the price of its stock if they had any convertible debt in place? The stock is going down because one or more large shareholders that have either a "no cost" or "low cost" basis are selling their shares in mass to liquidate their holdings. Let's just hope that they run out of stock soon.

The stock is not being manipulated. It is being SOLD in huge quantities by someone that apparently has a very low cost basis in the stock. Someone posted a message earlier that pulled something out of their most recent 10-K that showed that one of their former associates had exercised his option on 11,000,000 (cashless)shares and he received about 9,100,000 immediately free trading shares. In my opinion, the company made a serious blunder when it issued warrants to obtain shares on a "cashless". If they had issued "non-cashless" warrants, the individual would have had to come up with a lot of money to exercise his options. Since he probably would have not had that much cash at his disposal, he would have had to try and borrow the money. Since the stock was trading on the Pink Sheets, the chances of a bank loaning him the money to pay his exercise price to the company would have been slim because under the new low pricing policy, very few, if any brokers, would have been willing to accept shares. Thus, the value of the shares (collateral) that the bank would be holding if they made him a loan would be suspect at best since the bank's inability to get a brokerage house to accept them would limit their ability to liquidate the shares if the loan went into default. The individual's inability to get a loan would have within itself prevented him from flooding the market with 9,100,000 shares that he had no cost basis in. The company would be well served to never issue any "cashless" options or warrants in the future if they want to prevent history from repeating itself in the future. We ALL have made mistakes in business and will probably make many more in the future. PRED's management team is no different as they are human. Issuing "cashless" warrants and not proactively communicating to shareholders about significant issues that affect the company and its shareholders are the two biggest mistakes that I have seen PRED's officers and directors make.

That said, I think that PRED has a great future in front of it and I cannot wait until the day that we are all able to celebrate the coming successes.

Want a positive spin on this “temporary” bloodbath? While there has been a ton of shares sold during the past few weeks (resulting in a substantial net decline in the share price), I would suggest that the overwhelming majority of the shares have been bought by “big money” who have no intention whatsoever to sell any shares in the near future. If my thought is accurate, and enough shares get redistributed to “strong” hands, think as to how fast the stock price could go up once a short squeeze starts and the strong hands that have accumulated millions of shares refuse to sell any of them to the shorts to cover their margin calls.. It could happen.

Peter Piper picked a pack of Pinkish Pampers.
If Peter Piper picked a pack of Pinkish Pampers,
How many Pinkish Pampers did Peter Piper pick?

My "uneducated" guess is "NOT ENOUGH". He keeps soiling his diapers with each downtick on PRED.

Another "uneducated" guess as you asked us to post yesterday. How about at 3:24:12 Eastern Time today? That's when I think that Thomas will give us an update as to his revised estimate as to what the price of PRED's shares will be on 12/31/19. I will try to be more specific with my estimates in future posts should you elect to seek more "uneducated" guesses from the masses.


Piper loves Pampers.

Please go back and read my post again. In my post, I said I essentially the exact same thing that you just said. While I do not purport to know everything about the entire uplisting process, I do know that what I wrote in my limited reply was accurate. If we are all truly honest here, we will agree that no one (especially those on this board) know ALL of the rules related to the NASDAQ uplisting process. Heck, apparently even the folks at PRED, their attorneys and investment advisors don’t know all of the rules and every specific thing that needs to be done to effectuate the uplisting.

I agree with your comment to the extent that if their application was rejected, it would have disclosed in an 8-K filing. However, I believe that “acceptance” to uplist to NASDAQ would likewise be a material event that would require an 8-K to be filed. Since that has also not occurred, I would say the application to uplist to NASDAQ is still “pending” and has not yet been approved. Again my friend, I hope that I am wrong and that you are right.

You need to go back and read my post one more time. I did, in fact, within my reply, provide you with a very “uneducated”, but specific, guess as to when I thought the share price would be $2.75. More specifically, you will see that I quoted 3:24:12 PM Eastern Time today. Either your “fear”, combined with your failure to change your diaper, has blinded you from understanding the content of my original reply or you just can’t read.

When you say their “application for NASDAQ was “accepted”, are you asserting that it was accepted “for consideration” (and then after processing it notified PRED that they would not be uplisted) or are you saying that PRED was accepted by NASDAQ to be listed (and traded) on their exchange? If you are suggesting the latter (which I hope you are), then why hasn’t the company (or NASDAQ) put out some type of statement to that effect? If share price was the only issue keeping them from starting to trade, that could have very easily been put in the news release as the only unresolved matter. If such were the case, I am confident that there would have been enough buying to move the share price over the required threshold.

PRED will have to provide an update on the situation in the Subsequent Events section of the footnotes to the financial statements. We will all know shortly and the wild guessing will be over.

Go back and read what YOU wrote. You are the one that asked for uneducated guesses to be submitted to you by board participants. Sorry it took so long for me to reply. I had to tie my brain behind my back before I could give you my uneducated guess.

OK Piper - You have asked the board participants to offer an “uneducated” guess as to when they think that PRED might get back to $ 2.75/share so you can sell your stock and move on. Try this - how about today at 3:24:12 ET. My guess might be off by .001 or .002 of a second, but I think that it will still be close enough for you to make plans to sell all of your shares. Let me suggest that you take the money and buy stock in the manufacturer of Pampers or Tampons. I know that the stock will go up because you will probably be their biggest customer.

Well stated words of wisdom. It’s like “Danger is real, but fear is optional”.

I totally disagree with your comment relative to PRED’s world-class management team being incompetent. Instead, it looks to me like you should be pointing your finger at the people that run the OTCQX Exchange. they, better than anyone else, should know exactly what forms need to be filled out, what protocol needs to be followed and the entire set of “I”s that need to be dotted and “T”s that need to be crossed BEFORE they approve anyone to trade on THEIR exchange. The management team at PRED (and their accountants, lawyers, consultants, etc.) filed the paperwork they were instructed to file by the OTCQX representatives. If something was missed or filed improperly, it should have been caught by the people at OTCQX before PRED’s application was approved. I just can’t see where the people at PRED are responsible. It would appear that THEY complied with EVERYTHING that the people at OTCQX were telling them they had to do and that the people at OTCQX dropped the ball.

Or a large number of shares are being bought by a very small group of investors who know that the stock at this level is a steal.