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KInda looks like the SP is settling at a low point, ready to bounce back. JMHO.
I just knew that you'd be enthusiastic about upcoming developments. You're sooo predictable.
Nice looking profile.
Brickman's experience in insurance reinforces the impression that Mr. Beyman is shifting his focus more toward expanding the insurance arm of RELI, at least for now.
Let's see what the next few weeks will bring.
It hasn't exactly set the market on fire...
From the PR:
Mr. Brickman noted, “I am excited to join Reliance at this exhilarating time in the Company’s evolution. Specifically, by acquiring undervalued insurance agencies and leveraging Nsure.com’s advanced digital platform, Reliance is uniquely positioned to upend the insurance agency market.”
(emphasis added)
That's a pretty strong statement! Upending an entire sector is a huge expectation. And while I realize of course that talk is cheap, and it could just be typical PR hype, it still shows what they're dreaming about, and that's important too.
All in my NSHO.
MrBB, you make an interesting point:
"I would entertain the idea of a r/s to get us to big boy level pps with a little cushion, continue to close on deals, plant a seed and watch things grow. It wouldn't be the end of the world as the pps would continue to rise with every asset Mr. Beyman would bring into RELI."
The idea of a R/S sounds horrible to me, because usually there isn't enough meat behind the company to keep the price up, and it just slides down, slowly but surely, to where it was pre-split.
But this situation just might be different, if I understand things correctly. (And I may be off here, because I have only been following RELI for the past several months, and I wasn't around when they bought the shell, and the LOIs were issued, etc.)
Wasn't the problem with folding the private RE portfolio into RELI due to the fact that the lenders demanded that the stock be uplisted before they would agree? If that's so, then it follows that were there to be a path to uplist, significant holdings may just become assets of RELI overnight.
If that's accurate, and in addition there were some progress with the insurance investments, there may be sufficient traction to maintain a higher SP, even if a R/S was used to get there.
Personally, I still dread seeing a reverse, but I can see the logic in your argument.
I tend to agree. It seems that rather than committing to RE deals that don't meet Ezra's goals, he prefers to remain disciplined, but is finding more dynamic moves in the insurance sector, for the time being.
If this ends up becoming a path to substantial profits, I don't think anyone will be complaining. (Except those who have different trading agendas.)
Obviously, whatever it was that IR hoped to accomplish with this PR, it was a disaster.
But after re-reading it, and setting aside the strategic missteps, like releasing pre-market and just touting what will be in a 10Q anyway, there may just be hints of real substance in the message.
Take this line:
While several of these companies have multi-billion dollar valuations, achieved in record time, (sounds like the likes of Goosehead and Lemonade to me) we believe that by combining the Nsure.com platform with ‘bricks and mortar’ acquisitions already in our pipeline, we have the potential to define a unique value proposition and potentially far superior offering.
One thing I feel about Ezra - if he is methodically building an insurance strategy that can be spoken of in the same breath as these two companies, he really feels that there is potential. He's not a snake-oil salesman, and not a liar. He sees real potential.
Is he right about that? Only time will tell.
He may be getting poor marketing advice, and the learning curve continues on that. But I personally don't think that it's time to abandon ship.
JMO.
"I believe in him. Not much of a choice at this point to be honest. But one cannot remain complacent during times of extreme downward pressure. This thing is falling apart at the seams."
I don't think that complacency is the issue.
Personally, I think that the fact that Ezra isn't being proactive to boost the share price is a positive. More likely than not, IMO, that some news is coming that will resolve the short-term slump, so he doesn't need to waste resources and energy on band-aids.
If no news was coming, and he still wasn't doing anything, I'd be upset. But I don't think that's the case. Hope I'm right.
JMHO.
Good post!
What I'm trying to understand about the 8-K is this. If GOVX has even the slightest success in moving toward a COVID vaccine, or getting government funding, we'll be off to the races and there's no looking back. Uplisting won't be an issue.
So the only scenario where there would be a need for an RS would be if nothing major happens on the science side.
In that case an RS would probably not accomplish much. If there's nothing of substance propping up the share price, it just tanks in days or weeks.
I'm not trying to bash, just to understand. Any comments appreciated.
From the June 26 8-K:
The transactions contemplated under the Securities Purchase Agreement closed on June 26, 2020. The Company intends to use the proceeds from the issuance of the Debenture and the Warrant for working capital purposes. It plans to seek stockholder approval of a reverse stock split, to be accompanied by an underwritten public offering for cash and the listing of its shares on the Nasdaq Capital Market. There can be no assurance the Company will be successful in these efforts.
"How’s the weather?"
Getting a lot warmer.
"Do you have access to a nobo list or an obo list for RELI?"
Just as a stab in the dark, I think the answer is "no".
But to be honest, I have no idea what "nobo" and obo" refer to. Please enlighten.
LATE-BREAKING EDIT: I just Googled the terms, and I can confirm that my stab in the dark was correct.
Uh... how can I say this delicately?
To the degree that I sought a little clarity on the Lazar question, I didn't really get much from your contribution.
I posted before seeing your "resignation" from the board. No problem, I'll survive without clarifying the question.
Could you explain what the issue is with Lazar having his own message board? True, it shows a certain flamboyance and self-promotion, which are not exactly my personal style.
But in the context of accomplishing something for RELI, why is that an issue?
I'm genuinely curious about your thinking on this. Thanks.
They will come, as the news begins to flow.
People are right to wait for the substantive steps to begin, but when they do, we'll be fine.
Now you're talkin'...
Futile and foolish foppery.
CDEL is not a villain or a saint. They are a business, and they occupy a specific niche that affects many stocks, especially on the OTC. They very possibly have no clue what RELI does, they merely respond to, and, to a degree, manipulate, the momentum of a particular stock.
As has been said, only significant news can change this pattern. Some of us are confident that news is forthcoming at some point in the reasonably near future, and have enough patience to wait for that to happen.
Those who wanted to make a quick killing and move on are understandably frustrated and negative.
The Form 10, some kind of RE progress, anything could be the catalyst to break out of the current rut.
GLTA.
Reasoning by analogy has its limitations.
Insects function only by instinct. Businesses function by intelligent choice. Mistakes are made, but smart people learn from them and modify their strategies.
You're 100% correct that the core issue from the company's perspective is regaining the market's confidence. That can, and IMO, will be gradually repaired as progress is made, and actual results are made public.
Rosy expectations won't be enough, only real-life, real-time accomplishments. I personally feel that these will be coming sometime soon.
Thanks for the clarification. Good to hear that the process is continuing on track, even though it will take longer.
Personally, I'm much more comfortable being invested in a company where the CEO can own up to making a mistake, take the heat, and remain consistent to the overall goal, rather than someone who rejects any criticism and tries to spin the narrative to look better (which always backfires).
I've been involved with both scenarios, and trust me, this one's better.
As Porteno said, it sounded from the CC that they pulled back because the price was too high, the market didn't justify the expense. But in today's climate, they are revisiting the same deals to see if they can execute on better terms.
So I would guess that some may materialize, others won't, hard to know. I don't know any more than that.
GLTAOU.
Hard to imagine that Lazar's fairly recent entry has anything to do with the price dive. The reasons for the price collapse - the failure of the LOIs to come through, the delay in the Form 10, whatever else, all happened before he came on to the scene.
What his impact will be going forward, who knows, but I doubt that the present situation has to do with him. JMO.
Read my post again.... on second thought, forget it. Obviously it won't make a difference.
GLTA.
No one mentioned breaking the law. That's not where I am coming from.
We all understand now that the PRs about the real estate LOIs were premature, and created an impression that could not be fulfilled. We get that.
But to totally discount the fact that they are poised to move forward, and that market conditions are now more favorable, is a skewed vision. It will take longer, but as others have said, nothing has changed fundamentally.
Another thing I don't get. When Lazar joined the BOD you were quite vocal about his abilities to facilitate an eventual uplisting. Now you're saying that the idea of uplisting is a fantasy.
Something tells me that this is not an objective re-evaluation of the realities, but an attempt to influence the mood of the RELI market.
That what I and (I think) many others resent. If you share your honest evaluation of things, that's fine. We can either agree or disagree. But using this forum to twist by negative insinuations, exaggerating the past missteps and producing an imbalanced (IMO) picture - that's just dishonest.
The fact that that's the name of the game in this neck of the woods doesn't change the aroma that emerges.
Well said.
Those who are shorting are magnifying out of all proportion every negative that Ezra said in the CC, and ignoring/distorting the positive potential.
For example, Ezra spoke briefly about the Form 10. As I recall, he said that on their end it's complete, and they're waiting for a sign-off. That to me sounds like a positive. What do the shorters say? That Ezra admitted that there is "no immediate or imminent Form 10".
Slight difference in wording, but an enormous difference in the message. That's typical. They are quite open about their intention to bash and bash with no concerns about the impact on others. It's financial sociopathy, with the attitude that they literally control the market for their own gain. They could care less who gets trampled in the process
Of course there's never 100% security on the OTC, no matter who's running the company. But there is a lot more potential here than with most other stocks. Patience is all that is needed, IMHO.
There is a concerted effort on the part of a few MMs and their stooges on the board to keep the price down. The most sophisticated of them (and there's not too much competition for that title...) admitted that to me in a private message.
The only remedy is volume, volume, volume! There's good reason to buy at these deflated prices - keep it up with the buys!
OK, fair enough. I had the impression in your earlier post that you were quoting from an SEC text.
If it was not that, I am not concerned, and wouldn't have belabored the point.
Thanks for the clarification. I understand the "comments" process.
But I still don't see how "Minimum of 60 days", from your most recent post, fits with "up to 60 days" from your earlier post.
Are they referring to different stages of the Form 10 procedure?
You didn't answer my question, but we'll leave it at that. "Up to 60 days" and "automatically goes into effect after 60 days" don't sound the same, but whatever.
As for the invoice: I would never hire somebody with attitude. If he offers advice for free, why not?
How much flexibility is there in the "up to 60 days" formulation?
Could that sometimes end up being three weeks?
I understand your point, and it probably is not very likely.
Please see the update on my previous post.
Hope you'll get it...
So what is the meaning of the Notification?
One scenario would be that they will be filing the Form 10 in the coming days, and have confidence that they will achieve filing status before the deadline for the 10Q.
(Update: hadn't seen your second reply when I posted the above.)
Seems like there is some confusion if RELI intends to file a 10Q for the first quarter of this year.
They clearly do, as was submitted in a Notification of Late Filing earlier this month:
https://backend.otcmarkets.com/otcapi/company/financial-report/245745/content
This is totally distinct from the Form 10 to the SEC.
OK, glad that's clarified.
That wasn't how I took it at the time it was posted. Guess my lingo was formed in a different 'hood.
Thanks for the reply.
Against my better judgment, I'd like to ask Q a question. This is not to provoke, criticize, or challenge. I really am curious about this.
Q, when they announced the appointment of David you posted, in post #30088, the following:
"Thank g-d for lazar, a dirty rotten scoundrel that gets it dun better that Whitney sings oh say can you see! Nsure better get themselves a goyishe wasp lawyer coz that minority stake is going to burn like marmite on yer nuts boys."
Today you posted:
"David Lazar is a very talented investment banker, a well known shell baker, a well connected capital raiser and is a strong advantage to have in ones corner. I do not think he was involved in EOMN as jimmy namer wasn’t smart enough to hire great talent."
So which one is it? My guess is that you were being sarcastic in one or the other. Which one?
Now you're talking logically, and critically, which is fine.
All I was reacting to was your mentioning Beyman and Madoff in the same breath. I realize what you meant in terms of what you term "affinity", and not to totally equate the two. But the comparison was so odious that it needed a reply.
But keep the criticism to the results. Which haven't happened yet.
"If it turns out that Ezra was making it all up, then the consequences will be swift and shareholders will vote their confidence or their lack of it."
You're 100% right about that, IF that were to occur.
It hasn't yet, and although there is justified fatigue on the part of many, none of us knows yet what will be revealed in the CC. And none of us, I assume, has a crystal ball to predict what will be publicized within the next two weeks (unless that comes optional with an Aston, I wouldn't know).
So why jump to the worst conclusions, based on frustrations about missed deadlines, when we will have a much better sense from the CC? That's all I'm saying.
Understood-