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All good man. Just don’t forget UST and SIQ formed a brand new JV CLX to merge with PASO.
While CLX has some good names behind (like UST and SIQ) but it will not be wise to think UST’s billion dollars revenue and 20k employees are coming coming along with CLX. Unfortunately, that’s not case.
Let’s keep it real!
I am not selling either until there is a resolution one way or the other. But i refuse to accept any speculations that have no grounds or don’t make sense.
Some actions are needed and logical and some are not.
LOI is still active, Q4 still the target, they’re all good.
Getting AS approved 2.5 b is okay to cover 1 b common of CLX, that’s fine. CLX 1B common will not increase o/s shares even on closing of RM as CLX getting 10m preferred for now.
So any increase in O/S Shares now represents other things, which has nothing to do with RM directly but could be incidental.
This is the right question. If it was needed, it would be done before Jul 15. These are all new developments.
You can be objective despite holding your position long and hoping for the best.
Tender offer and an unbiased thoughts:
Those are familiar with the conversion process afterwards, they will think 100 times before converting to preferred shares.
It’s not just minimum 1 year lock out period, it’s the challenges that are faced converting back to common afterwards. Converting to preferred is a breeze, just sign a document and make it through your broker, it’s done, that easy.
When you wanna convert it back to common in a year or two, it’s not that easy. You may have to deal with your broker, lawyer and the company back and forth 100 times. It will require time, money, energy and headache.
If you’re a retail and everyday Joe, think twice before converting. If you hold onto your common, nothing to lose. Of course, you will lose some div., see if that’s worth considering.
Of course, conversion helps everyone, you, me, Company, big boys as it reduces o/s shares, float and thereby stock price may increase, win win.
PASO and CLX created the expectations to close the RM in 6 weeks on Jul 15, when they announced first time on May 28. One would think that they did their DD that it could be done in 6 weeks.
They went so far that they indicated in PR that Covid brought actually an opportunity to get this done even earlier than expected.
So it’s not all people’s fault to expect to get it done sooner and to create excuses for Covid (which in their words, was an opportunity instead).
If you like, read May 28 PR by PASO.
Based on the PRs by PASO, the delay was never for Covid, it was for other reasons for better or worse.
It’s just to make sure people are not misled for reasons of delay.
It would be nice to hear from PASO or CLX indicating that things are going to the right direction.
It doesn’t have to be a direct reference to the DA or RM. Any positive feedback would make people happy particularly, in view of last couple of weeks price action, share structure changes (like increase of o/s, restricted, unrestricted and float, etc) and restless in the market.
I am sure they keep an eye on investor hub and other social media reactions and they’re well aware of things and investors feelings.
Although we are doing a whole bunch of assumptions for and against on all the recent events, they’re still mere speculation, nothing solid.
All it takes a tweet or a small PR indicating that everything is progressing as planned.
Today’s price action and volume both are in the right direction!
Recently, I noticed 18.5m warrants on their books (from 10Q filing), didn’t see the terms or details on those.
So that may contribute to new OS as well as restricted or unrestricted share increases going with your line of thoughts.
Signed agreement in the box:
That was a childish (and a poor judgment) tweet from JG to say the least, trying to be a hero as some of his followers kept giving him claps for whatever he was doing or saying in the tweeters.
Most likely it was something to do with CLX business related.
Regardless, in real world, no one does that. Absolutely, childish and dumb idea!
It’s because someone just let it rise to a certain price level and starts selling from the pot (a big pot), doesn’t look like all retails. It’s been happening last couple of weeks.
Big question is who is doing that (insiders, PASO or their agents)?
Total AS 2.5b, 1.0b for CLX, 750m old o/s, still they have 800m shares to play with even if RM is on the card. So far O/s increased by 300m as of Sep 22. We will see next update where does it stand?
Downside risk from here is 2c at most, lol. So if you’re in big loss, let’s wait and see what happens!
LAMBO DREAM is still there. OTC stocks mean we take a large position and when you have a large position and there is an RM potential, Lambo dream comes automatically, lol.
I am still here (and will be there) until I see a final resolution one way or the other.
Also down by large sum, so no choice anyway. GLTA
Did anyone else notice that as soon as the price goes over 0.02c (or over a certain price point), big ask appears. Last few days (or couple of weeks), it's been happening. Could be a coincidence or a planned selling?
Any theory?
MFN: Since you spent so much time on it, you should make an “Executive Summary” of this whole analysis and make a conclusion of your own. So people can understand. Seriously, not joking.
UST Global: If you read their company bio, you will see everything run from and by India. Somehow PASO managed to make an LOI and gave them some profit share and screw up all the retails. How does this sound?
Wow, it's a free fall. I guess it's all done but dilution until it hits 2.5 billion.
Let's read JG bio ...............
Everything is connected. You can't ignore one thing for another.
Obviously, those are connected, any dumb will understand that. Because of all those unexplained things, price is dropping and people losing money incl. myself. Why dropping because someone is selling hundreds of millions of shares. Who is selling because new shares are being added to the o/s unrestricted shares. We saw float increased recently. I am sure next reporting will show Float will increase further.
IF THERE WAS NO UNEXPLAINED increase in o/s shares, restricted/unrestricted shares and float, despite the worst possible price action, people wouldn't be as skeptical, mad and or nervous.
Agree but would you give shares to CLX before signing DA at least (although ideally should be on closing)?
You’re wrong man. 332m coming from AS (not from restricted or unrestricted).
Previously, they had 750m AS and 750m O/S. Now O/S is over 1 billion per OTC. So it is from AS.
Increase of O/S, increase of unrestricted and increase of float, they go hand in hand. It’s the sign of dilution!
It is true that a few things have not changed (like LOI, Q4).
It is also true that many things are happening that make people questioning and nervous.
Businesses don’t go insolvent or bankrupt overnight, there are signs beforehand. Break ups, separation, divorce also don’t happen overnight, again there are signs beforehand.
Read PASO PRs, follow PASO stock price action, float change, o/s share change, restricted/unrestricted share change, actively pursuing others in addition to CLX, extending Tender offer, extending RM closing, etc.
These things you can argue both ways but when things go south, it is natural to think negative more than positive.
You’re not dealing with Apple and NYSE, you’re dealing with PASO and OTC. Here 99.99% time is scam.
Those are not skeptical after all this, they’re novice for sure.
DD requires to consider all this.
Parabolic run trigger:
Situation is such that all it will take a tweet by CLX or someone reaffirming that DA/RM is on track. I am sure it will run up very hard.
While there are targets, there is a hope.
Those of us are still in it, let’s stay positive and optimistic despite things are not going quite in our way now.
The LOI is still active, Q4 is still the target, PASO and CLX did not say anything otherwise.
OTC stock managements are good in one thing is to come up with something from time to time and pushing stock price to go up significantly.
If we give it sometime, I am sure PASO will do something (even other than or in addition to CLX RM deal) that one day stock price will shoot up 100%/200% and most of us will be in the money.
The red line:
As soon as we see, the o/s share count goes over 1.5 billion before RM, you know we are done. Because they have to keep 1 billion common to satisfy CLX 10m preferred (100 common for 1 preferred). So still they have about 500m to add with o/s before RM.
If this happens trust me, we won’t need any PR for RM breakdown.
Hope we don’t see that.
That’s fair and logical
To be fair, they will say
1. the DD did not meet the requirements or 2. DA was not signed because they couldn’t agree on terms and conditions or 3. the reason they wanted to do the RM, those business opportunities aren’t there anymore or
4. something else more logical.
Any of the above will give them a pass in the court of law.
Honestly, if o/s share count did not increase (without any valid reason), I would give them a benefit of doubt for little bit of inc/dec between restricted, unrestricted and float. Because still the total o/s share count would remain 750m.
But as soon as they used about 300m shares to increase o/s (from newly authorized shares) without showing any reason, they don’t deserve any benefit of doubt. Not to brag, I am pros pro about share structure, so I know what I am saying.
Would love to hear from anyone has a different take on it as to why they used 300m from newly approved AS.
It’s a matter of supply and demand of shares. Supply is increasing means price equation will change.
Your theory would work if 750m o/s shares would remain same as before. Unfortunately, that 750m o/s share count started moving upward (already over a billion).
If everything else would remain same, yes, you would expect the previous support and resistance would play a role.
Now you have a whole bunch additional shares in the market due to AS increase and O/S started moving up. The equation has changed.
They are supposed to issue 10m convertible preferred shares to CLX on closing. Still DA is not signed, so there is no reason to issue any shares to CLX. Even they do, still they will be preferred, not common, so that’s not increasing o/s shares.
There is nothing else going on which we know of for which they issued new shares. So that means they are issuing new common to themselves showing whatever excuse like incentive, bonus, expense reimbursement, consulting fees payments or whatever else they’re making up to pay by common shares. Once that is done, these shares are being sold.
If the company wants to issue new shares they have millions of ways to do so. Don’t underestimate them.
O/s share count increasing means dilution, there is no other explanation at this point.
AS was increased with the excuse of closing CLX deal and other transactions. CLX has not closed and we don’t know the existence of any other transactions. So again, o/s share count increase means dilution. Simultaneously, float is increasing. So that makes 2+2=4.
Everything directing to one and only explanation is company diluting using new AS.
The only way they can stop this thought by disclosing if they’re issuing these shares to anyone with some business value.
The other PR would help a joint PR by PASO and CLX that their Q4 target is still good. That will excite market big time.
Otherwise, where we are headed only god knows as they have 1.75 billion free shares to sell to us retails.
If everything is good, all they have to do is release a joint PR (by both PASO and CLX) that the RM is still in good standing and everything is on track and it shouldn’t be that hard. That will bring back all the lost confidence.
JG, CLX (and their partners), their activities, their progresses, everything is good, nothing to worry about that. Instead, a lot of things are there to be excited about.
The only problem is PASO and its activities are all problematic. Their increase of AS, OS, restricted, unrestricted and float, stock price action, OTC filing failure, RM closing date extension (and the reasoning), tender offer extension (and the reasoning), hint of activity pursuing others in addition to CLX, nothing is comforting.
Honestly, we have nothing/no one to blame but PASO. Their overall action and activities do not give any confidence at all.
LOI CARROT IS STILL THERE. So everything is not lost yet
Those of us are stuck, we still have hope. If you're in big loss, may consider to hold on to it (i will). Do what works for you.
Investophile, your assumption is not quite right. Until unrestricted shares are sold and added to float, they are not owned by retails.
Since we are way down, I am going to hold my position, reluctantly though.
For mental peace, let’s hope in Oct DA shows up and will be a Christmas for us.
Good luck and peace!
LOOK AT JG BIO IF YOU NEED ANY COMFORT, LOL
The saying "A word to the wise is sufficient."
There was writing on the wall
* When PASO said they were actively looking for others in addition to active CLX LOI;
* When showed the reason CLX deferred DD for other business opportunities;
* When they set a full quarter Q4 (instead of a specific date)
* When PASO said they believe "there is any less likely to happen (freaking RM)"
* JG and his partners (incl. some on this board) were happy doing other things.
I kept arguing these things here that their PRs and languages seem negative/odd but I held on to my position. I kept thinking market is never wrong. My bad, did not listen to myself.
For me it was like an amicable divorce, so both parties decided to keep things look good for a while (Q4 one full quarter). Time heals everything.
I agree with points 3 and 4 but not sure about 1 and 2. They have 514m unrestricted shares, that means they can keep adding to the float and that means they will keep selling as the shares are almost free for insiders. So dumping may not be complete yet.
I don't think panic sell by retails started a few days ago. Ordinary retails are LAMBO dreamers, they did not sell much until today. Most selling was done by pros so far. Once retails start selling, it will be uglier.
Also any indication of RM falling through will be catastrophic, which has not happened yet. Still many retails holding.
If you have a different take, let me know.
1. Dumping has been almost complete.
2. Full swing panic sells started a few days ago when PASO dropped 0.05. Today's panic sell could be the last one.
3. For a few days, this POS will be stuck and sideline at this price level.
4. My analysis showed me that the bounce may come up to mid 0.04's in the near future.
The big question is what happens from tomorrow ....
If it continues, man, don't wanna think of it.
Those are holding (or accumulated) millions, feel for them. Unless they are insiders or associates.
Silverlining:
Still there is no formal announcement of RM breaking down or something, so price can still turn around a bit.
My thoughts were right on. Every signals were there on PASO (and CLX) PRs that honeymoon was over between PASO and CLX.
Being a professional and myself involved in couple of M&As, i got those signals and kept repeating here showing the PR quotes.
The only thing, I did not listen to myself, was still hoping for some positive outcome assuming what if ......LOL
Not sure should i sell and recover some now before it gets too late.
Anyone thinking like me?
True, not everyone. As I said, some just got along.
Of course, we make our own decisions. But constant pumping and gatekeeping are the bad things for retails like us. You must have noticed they come in a bunch, support each other and bash everyone else. That's a complete misguiding.
Because for them mission accomplished, lol