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Thx for the tip, Scotty. Here's one for you. QEGY. Not as ugly as CSHD but plenty ugly enough.
The GA site proves nothing. You think the Georgia state government goes out and verifies everything that is filed.
Each bond has its own ISIN number so a portfolio of bonds cannot be grouped together.
You'd better find something else to make you feel good.
Arby,
You're obviously on the inside. You may even be Scotty himself. No worries. Btw, there's some nice news on CSHD. Maybe you bought some out of spite? I wouldn't worry about it. There's rock solid support here for a few more days.
Civil suit against whom? I think it's going to be extremely difficult to collect anything from Rufus and co. Maybe there is big money lurking in the shadows somewhere.
If they're "common names", how does a shareholder know if the name on the website is him or her and not just someone else with the same name?
I'm not in their shoes so I don't fully understand the hurdles to putting away a guy like Rufus. But if it's necessary to wait for a sarbox violation to have a really strong case, that's a sad commentary on the prosecution of white collar crime.
They are acting quickly compared to other cases. But this case was so easy to prosecute that they could have easily acted two months ago and at the very least shortly after the 8k/a. jmo
>>This is as bad as I've ever seen.<<
Yep. Both the level of fraud and the SEC's (very belated) response.
Believe anything Rufus says but demand proof from the SEC. Smart move.
Stockd,
The halt follows the investigation, not the other way around. There is a major stigma attached to a company whose stock has been halted. Consequently, the SEC is very judicious about which companies they halt; SEC halts are very rare. The SEC does not halt and then sort things out. Invariably, a halt will be followed by litigation against those involved in the illegal activity.
Deny it all you want. You KNOW you did wrong.
What a joke you are. I presented many arguments as to why this is a bad stock to hold and you did every thing you could to discredit me. Anyone who listened to you got killed today. And please show me where I am reveling in the loss of others. That's YOU, my friend. I am not the one gloating about making money today. You make such a big deal out of my moniker yet you completely miss the obvious joke. If there has been schadenfreude expressed on this board, it has been LONGS. Die shorty. Short elimination. We're coming to get you. The joke is on them today.
P.S. There is no tremendous upside. It's all fake.
Let's get one thing straight. YOU are part of the problem. You encouraged people to buy this scam. I, on the other hand, told the truth. You are the one bragging about making money when others are suffering. Now who's the evil one?
I am very happy about the halt. A crime like this demands justice. I will be very happy if Rufus and his cronies suffer the consequences of their actions. All you care about is your bank account.
In two weeks, this stock will be under .25. Obviously, the pump-n-dumpers and the shorts will have made money. The flippers who traded this well but didn't hold through the halt made money. Those trading superstars who are holding free shares made money. Those that fall into the last two categories will come here and gloat about it, but one thing we know for sure. This is a negative sum game. There are hundreds upon hundreds of people who will lose tens of millions of dollars. Sure glad I was on the right side of this one. How about you, liquid?
No, the press release was several weeks ago. The person I talked to at Deutsche Bank asked if I would be willing to talk to the SEC. I said yes and gave him my phone number. Someone at the SEC called and I was interviewed, but I was told it is the SEC's policy to neither confirm nor deny an investigation. That was the last that I spoke with them. After the bogus 10k, I took Our-street's suggestion and emailed the people on his list.
The SEC did not provide me with any information, it was the other way around. It should be obvious that that is how they operate.
Rookie,
I talked to Deutsche Bank after that pr and they had the SEC contact me. I warned everyone on this board to do some digging but sadly no one listened. There is no contract. CSHD's press release was false and misleading; that is why Deutsche was mentioned in the halt letter. I'm surprised that they highlighted this issue since it is rather minor compared to Rufus' other transgressions.
Believe whatever you want. This stock is toast. We can only hope that Rufus, Ben and their merry band of thieves receive the justice they deserve.
Lens, the basher community fully expected a halt, but we had no idea if or when it might occur. That information is strictly confidential. Being in a stock like CSHD is like playing Russian roulette.
Then you are truly clueless. The SEC doesn't halt stocks to validate. This is "game over". Longs will be extremely lucky if this opens over .25.
Cobra...It's what's for dinner.
Mongoose
Splividend, eh? I think you're on to something there. Rufus does read this board; everything he knows about SEC regs was gleaned from right here. I just hope he gives you credit when he puts it in the next press release.
Sure, why not. A chicken in every pot. 6 additional shares in every account. Just don't call it a split or a dividend. That's a sure way to get your name blotted out of the book of guaranteed riches. It's too late for me. Save yourself.
Wow, this is getting good. So if you held at the close of 10/16, you get the shares. If you held at the eod today, you get the shares. Shares for everyone! Ain't Amerika grand?
Boy, are you in for a scare this Halloween. You will not be receiving your 6 additional shares.
All good ideas. As a practical matter, I like #3 the best. If Rufus can put together $10 billion in bonds in such a short period of time, why stop there? Why not $100 billion, $1 trillion or even $10 trillion? The only limit is the amount of bonds in circulation worldwide and even that should only pose a minor obstacle for Rufus the financial engineering genius. Longs don't ponder this obvious dilemma because they know it's absurd, but $10 billion seems just plausible enough for them to allow their greed instinct to completely overwhelm their own common sense.
Yep, I can see it now.
CSHD will *apply* for Nasdaq driving Rufu's minions into a frenzy. Sadly, CSHD will never reach Nasdaq. The bid price is not high enough, it doesn't have enough operating history, it doesn't meet the corporate governance criteria, and it certainly will not pass Nasdaq's qualitative criteria.
I see the the Nasdaq application as the last arrow in his quiver. What else can he announce? More bonds?
As crazy as it sounds, I agree with you. It sure won't be pretty for the people who believed him. Imagine their shock when they discover that all Rufus big pronouncements were the musings of a madman.
This stock is being promoted everywhere yet the stock goes nowhere. They won't be able to hold it forever. My six month target is $1.
BD,
Spread the same lies over and over again and someone might believe you. Sorry, CSHD does not qualify. Not even close.
True, but that was August, weeks after Rufus repeatedly promised everyone he would halt the stock. Don't you remember all the talk from bashers who said he couldn't and longs who said he could? Score one for the bashers.
Btw, recently on subpenny radio, when asked whether he could do the halt, Rufus said all he had to do was contact market surveillance and tell them about all the manipulation in the stock and they would halt it for him. Why would he say something like that if he never promised a halt or is unable to deliver it?
It makes no difference whether they want to call this a reset, a gift to shareholders, or whatever. It's a stock dividend or a split. There are rules for dividends and splits. If this is something different, show me an example. If there is no example, no precedent, why should we believe this is possible? The burden of proof is on Rufus (and you for defending him).
Rufus promised a halt and an immediate reset to $15 with institutions supporting the price there. I hope you will agree with me that this is in fact what he promised. He did not say anything about six additional shares. He did not deliver the halt and he is increasing the share count by a factor of 7. Obviously, the stock will go down by that factor after the ex date (if the six additional shares are indeed issued at all). And even if it the price didn't adjust, you are getting only 6 new shares. 7 (6+1) x $1.80 = $12.60, well short of $15.
No, I don't got shares. This stock is more radioactive than Chernobyl. You did not address any of my other points. What else you got?
You have just about everything wrong.
1. This is either a stock dividend or a split depending on the accounting treatment. There is no other option. Please show me a single example anywhere of a company issuing shares to shareholders that is not one of the two choices above.
You wrote:
Again, if this was a split or dividend as stated by people who want you to hold your shares, there would have been dates and statements in the 10K and Nasdaq website confirming a split or dividend. There is not the case. Rufus has stated the facts and those facts have been confirmed.
This is circular reasoning and complete nonsense. There is nothing to confirm the dividend/split because it is not valid and cannot be issued on or around 10/30.
2. Rufus did not give proper notice of the dividend/split and violating SEC rule 10b-17. The record date cannot possibly be 10/16.
http://www.otcbb.com/aboutOTCBB/secrules.stm
3. Even if the record date was 10/16, you could not have bought on 10/16 and expect to receive the dividend because of three-day settlement. A record date of 10/16 would mean an ex-div date of 10/12. To receive the dividend you would have had to have held the stock at the close of 10/11.
http://www.sec.gov/answers/dividen.htm
4. FHAL/CSHD has 200 million shares authorized and over 62 million outstanding just from the FHAL shell. Any type of 6 additional shares dividend/split will put the share count way over the authorized limit.
5. Rufus can't count. He said there are 103 million shares outstanding, and after issuing 6 additional shares, there will be 618 million. 6x103=618. That is the number of new shares to be issued. Add that to the original 103 and you get 721, not 618.
6. There is no evidence that CSHD has even filed to list on Nasdaq, let alone any evidence that CSHD has passed the Nasdaq's quantitative requirements or qualitative review. Nasdaq does not allow $2 stocks to list. Further, if the split goes through, CSHD's share price will be reduced by a factor of 7 making it even more difficult for the company to list. Even Rufus admits that the stock price is an issue. He told Simon on subpennyradio that $4 was key and for once he was right.
Rufus does not know the rules and neither do you. I have presented facts. If you wish to counter my arguments, please respond in kind.
Stushy, I'm still waiting for an answer. Here's my post again:
No. First of all, FHAL had roughly 62 million shares; CVSU had 48 million. It's all right there in the header of this thread. There is simply no room for additional shares for this bond holder.
Second, that wasn't the explanation Rufus gave at all. He said that CSHD is acting as an asset manager. They are taking the bonds assets and hypothecating them to raise capital for their portfolio of startup ventures.
Third, why would anyone exchange 5 billion Euros worth of bonds for 50 million shares of stock? At $2, that stock is only worth $100 million. If Rufus Inc is so valuable, the bond owner could simply make a tender offer--even at an outrageous premium like $30 per share--and aquire the whole company for about $3 billion. He would then own 100% of the company, not a fraction of it, and keep $3 billion in his pocket (5 billion Euros is equivalent to about $6 billion).
And do you see that your argument is circular? The bond holder will only agree to accept stock if it is of equal or greater value. But the stock is only valuable if it contains the bonds.
Finally, your last statement about the lawyers is an empty cop out. We're talking $6 billion here. Serious money. The bond holder has to be compensated with something of very large, very tangible value. Even the best lawyer can't waive his wand and create that kind of value. Think about it.
OS,
Nice update on the website. While I think the fraud here is incredibly obvious, I do have some sympathy for the investors here who put their trust in the SEC. Rufus has repeatedly made the argument in interviews that if he were doing anything wrong, the SEC would have shut him down by now. It's a compelling argument, especially as this thing drags on and they file more and more documents. Whoever it is that has responsibility for this case at the SEC should be given the axe.
My goodness, Dragon. Rufus' plan from the very beginning has been a post-merger share count of 100+ million. It's right in the header of this thread! And in the recent release, Rufus says shares outstanding are now 103 million.
FHAL has 200 million shares authorized. That's the number from the previous 10k.
CVSU had 100 million shars authorized. That's the number from their 15c2-11 Disclosure Statement.
I don't know. My guess is Rufus changes the offer in some way that gives investors the impression that he his delivering what he promised. Like after the 10k. He couldn't deliver the halt or the reset so he came up with this "6 additional shares" stuff. Do feel you've gotten your reset to $15?
The question was: can the company issue 6 additional shares. I say no and here are my reasons. Just because companies issue shares all the time DOES NOT mean they can issue them any time they want. There is an authorized limit. To issue more than the authorized limit requires shareholder approval. Shareholder approval requires a proxy. Sure, Rufus can do all of this. But he cannot get it done by the October 30th date of record.
http://www.investorshub.com/boards/read_msg.asp?message_id=14168153
You don't trust the press releases? They're from YOUR company! From the grand pooh-bah himself, Mr. Rufus Paul Harris, CEO extraordinaire!
You asked for a critique of your earlier post. I'd do it but frankly I have no idea what you're trying to say. The legitimate float (not even counting what you consider to be "air shares") all by itself is well over 30 million shares. Issuing 6 additional sharses just for each share of the float is 210+ million shares, above the authorized limit of 200 million. Here's the math.
30 million shares in the float
6 additional shares x 30 million = 180 million
New total: 180 million + 30 million = 210 million
Are they going to issue new shares to just some of the holders of the float? How about first come first served? Or only those with stock in certificate form? Only those that bow down at Rufus' feet? Rufus is a creative guy; I guess he'll come up with something. It's easy when there are no rules.
Not trying to be flippant but what's your point. CVSU is being merged into a public shell. That public shell carries along with it, as Sammy pointed out, some trucks and other assets, and a pile of debt. It has 62+ million shares outstanding and more than 30 million in the float. That's what you own. When the merger is complete, the share count goes up and you own CVSU as well.
The only reason we're talking about this is because Dragon claimed that the company could just play around with the share count as they see fit in order to issue the 6 additional shares without going over the authorized limit. I showed that that is nonsense. Unless of course, you, Dragon and all your Ihub and HSM buddies want to turn your stock in for cancellation.
So again, what was your point?