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Anyone here?
Anyone following this?
Louis J. Desy Jr.
Why still trading?
The problem is that a lot of the retail market has absolutely zero understanding of the bankruptcy process. I am amazed when investors who do not understand the Chapter 11 process, decide to 'pick up a few shares', like they are buying a lottery ticket, not fully realizing that a lottery ticket is probably a better choice since those usually have a better chance of being worth something. For whatever reason, even though a company loses money year after year, and then ends up in Chapter 11, some optimists think that somehow the company is now a 'good buy' plus expect the old common shares are going to be part of the new company.
BTUUQ also had the unfortunate problem where the stock skyrocketed on the expectation that there was still some value left for the old equity and would share in the recovery under the plan, so many retail investors think there must be something here for the old common shares.
Louis J. Desy Jr.
By Monday, March 27 it will be all over
Form 8-K - Confirmation order entered
Broker confirmed dividends are qualified
That is a good buying point, especially since the company seems to pay a larger percentage of operating income out as earnings when things are going well.
Louis J. Desy Jr.
Why PE of 15
Anyone have any idea why this would trade at a PE of around 15? I looked at a few other large rails, and some have a lower PE. Is the value of the other rail roads they own understated on the balance sheet?
It does look like they make a steady profit each year, but not much else going on, with a gradual expansion.
I was not able to tell if their rail holdings connect or not, and suspect that they do not. I do not think this is a problem since the rails they do own sort of seem to be short haul lines.
Louis J. Desy Jr.
Anyone here
Anyone know why the dividend yield is so high?
Louis J. Desy Jr.
How they are paying people
The same way they always do, by taking convertible debt for cash which they then cash in for 100% plus return!
Good Gaming Announces Plans to Monetize its Social Network
After emergence
If the plan is private equity, there will probably be no stock symbol or trading in the new equity of the reformed company, for a while.
It will be like when Allied Nevada Gold went through Chapter 11 (ANVGQ).
Louis J. Desy Jr.
Plan about to be confirmed, common dead
Judge Announces Intention To Confirm Peabody Energy Plan Of Reorganization, Paving Way For Emergence
I will check
I will send a request to my broker to make sure that are being reported as qualified.
One thing I am surprised at is the level at which dividends are being paid here.
A lot of companies seem to hold onto cash over and above what they need for operations like it would kill them to pay out a dividend, where here they seem to want to pay out as much as possible.
Is this because some of the large holders are other firms that want income from the shares or some other reason?
Some comments indicate that the company is paying out such a high rate because it is in effect liquidating, but as I see it, the reason for the low recent payouts is just that the price of oil is low, meaning there is less demand for the platforms.
Louis J. Desy Jr.
How are dividends treated?
Do the dividends are reported just like any other US stock, or is there something special about the dividends reporting for tax purposes.
Louis J. Desy Jr.
No one is confused?
If no one is confused, then why are there multiple postings, with many posters coming out to different numbers, as to how many shares pre or post split?
And that is not accounting for the discussions on how the Class C shares are treated since class C shares do not convert into common shares.
Louis J. Desy Jr.
Reason to quote from 2015
I started quoting from the 10Q of Q3 for 2015 because apparently some people were confused as to presplit and post split calculations, insisting that the 2M included presplit common shares from all of the conversions.
In any case, the dilution of the pre split decorative common shares is massive.
Louis J. Desy Jr.
Pipeline is not enough to get back into the black.
The problem is not transportation, the problem is that oil prices are too low.
Most shales needs at least $60 to break even, and really needs $80 to $100 per barrel to be profitable.
It isn't like $20 per barrel is the transportation costs.
Rail is already in the area and that is typically $10 per barrel. The pipeline, providing there is enough volume to keep it in operation, only reduces that by $5 per barrel to $5 per barrel.
Those savings can easily be wiped out if oil drops to $45 or $40 per barrel.
Louis J. Desy Jr.
Detailed calculations pre and post split
Good Gaming 10Q for period ending 09-30-2015
Presplit, as of 09-30-2015.
You are not missing what is going to happen
While there are problems with figuring out how many presplit additional shares, since they seem to keep issuing more and more convertibles constantly, you are basically correct on the general idea.
The 2 billion pre split common shares is only what got issued. That does not account for any of the preferred conversion, all of which is going to convert and swamp the existing common shares with dilution.
My calculation was a 95% dilution of the existing common shares, which is close to your calculation.
This is why I referred to the existing common shares as 'decorative', they really have no control of the company and can expect absolutely nothing from the company.
The one and only value of the common shares is that they are a way for insiders to collect money in return for a worthless product or worthless service.
The ONLY use for whatever the current product or service is that the company is pumping, is for the fairy tale of a story they present to the retail market, the muppets, to get them to buy the decorative common shares.
They did the same thing with SirenGPS and they are now going the same thing with the web site.
Things were so bad after SirenGPS that the stock went no bid for weeks at a time, with millions of shares on the ask at $0.0001 with zero buyers and zero volume.
Go through the past history back then and you will see all kinds of glowing reviews of 'how great SirenGPS' is and how much money they were going to make. In the end, there was never any revenue, and they wrote off the product as worthless.
Louis J. Desy Jr.
Local gas station at $2.08
It looks like oil is stuck at $50 or lower for a while.
Louis J. Desy Jr.
Price of oil going nowhere - $50 or lower
It looks like the price of oil is going nowhere for a while.
BKKN 10Q for quarter ending 09-30-2015
Base on the latest 10Q for the period ending 09-30-2015, the company is losing about $100K per quarter.
Equity was $6.6 million, and losing $100K for the five quarters since then, puts the equity at $6.1 million, around where the stock is trading now.
Louis J. Desy Jr.
There is revenue, all $2,000!
good Gaming 10Q report for period ending 09/30/2016
There is revenue, a whole $2,000!
Preferred is MANDATED TO CONVERT
Good Gaming Announces Plans to Monetize its Social Network
Yes, that is the press release
The existing common shares, 2 billion, will get RS into 2 million. There will be 36.5 million shares post split, so the existing common shares will be only about 5.5% of the company ( 2 / 36.5 ), meaning the existing common shares are being diluted by 94.5% from all of the preferred conversions.
Louis J. Desy Jr.
Incorrect?
The information cited is from the company's own press release.
The company even states that after the conversions, the new funding is going to be more preferred.
Good Gaming Announces Plans to Monetize its Social Network
Unfortunately, the preferred is converting
According to the company's own press release, all of the preferred shares are being converted.
Good Gaming Announces Plans to Monetize its Social Network
That is in the future.
Why do you think the preferred shares, which hold a majority of the voting power, are being converted into common shares?
Answer: Because it is time to dump hundreds of millions of decorative common shares onto the muppets and the insiders to cash out!
Louis J. Desy Jr.
Goes up? Not anymore
Well, don't worry. With the hundreds of millions of shares, pre RS, that are going to be dumped on the market, and dumped onto the muppets, I do not think anyone will have to worry about the stock going up too much.
Of course, there are always a few people that do NOT realize that the reason the price went from $.0002 to $0.20 is because of a reverse split and think it is because the share price rose 1,000%, and then they start placing buy at market orders.
Louis J. Desy Jr.
At $0.0001
The stock, for most of the day was at $0.0002 with exactly 2,500,000 shares traded; BUT then someone sold a thousand shares at 2:59:18pm at $0.0001, bringing the daily volume to 2,501,000.
So now the stock is at $0.0001.
How much longer until there are millions of shares on the ask at $0.0001 with no buyers?
Louis J. Desy Jr.
Class C preferred
With no conversion component on the Class C shares or voting listed in the last 10Q, the RS will have no effect on how they are in the order of priority for the capital structure.
I expect that after the RS, the board will then assign conversion and voting rights to the Class C shares.
Louis J. Desy Jr.
Legal Proceedings? Impossible
Impossible, the muppets appear to still be begging to buy more shares. I bet some muppets are taking out a third mortgage on their houses to be able to buy more shares.
Why would anyone sue a company when they are loading up on the stock?
Louis J. Desy Jr.
Should I buy now or....
wait for the RS crash?
Decisions, Decisions, what to do!
There is at least ONE good thing with the conversion of the preferred into common. In theory, it would be possible for someone to buy enough shares to have some voting control over the company.
UNLESS
The class C preferred, which does not convert at all, is given some kind of super majority voting power, leaving the decorative common swamped by the Preferred A and B conversions, post split, and still no ability to have any say in the running of the company!
I do admire how the company uses decorative common to print money for themselves, and not only have people defending their right to do it, they CLAMOR to get in on the deal!
GOD BLESS THE MUPPETS!!!!!!!
Louis J. Desy Jr.
Is something wrong with the board or internet servers?
I am surprised that there are not a lot of people talking about 'how great' it is that the company is doing a RS. Its only 1:1000!
After all, someone how bought, say, ten million shares at $0.0002, that are now going to become 10,000 shares at $0.20 must be thrilled. At least they will be until the stock drops back to $0.0002 after the additional few billion in common shares from the converted preferred gets dumped onto the market.
Louis J. Desy Jr.
Maybe should RS more?
If 1:1000 is good, then maybe a 1:10,000 or 1:1,000,000 would be better.
I see a whole 2.5 million shares traded so far, with the bid/ask at $0.0001/$0.0002.
Now with the RS, the stock will be able to drop below a $0.0001, presplit price.
Of course, even with the RS, the price will still be only $0.20, not enough to qualify for a NASDAQ listing, for that the RS would need to be 1:100,000 or higher.
I wonder who could have ever predicted such as thing?
But at least, post split, the stock will keep trading and not go 'no mid', like it did after the SirenGPS fiasco.
Louis J. Desy Jr.
1:1000 split, Is this good?
So the 2 billion decorative common shares become 2 million?
All of the preferred gets converted into common shares, swamping the existing decorative common shares?
Louis J. Desy Jr.
No its not
There is NOTHING left of the company.
The assets are all gone.
The reporting is years late.
There are tens of thousands of dollars in filings fees overdue, plus the CEO lost the original corporate charter when he forgot to pay and the guy from Black Dragon refiled under the same name and took it over. (Of course, that guy is in jail for tax evasion)
This is nothing but someone buying shares and then running it up on the hope that people are so stupid that they will rush in to buy for fear of being left behind.
Louis J. Desy Jr.
Looks like another criminal activity pump and dump?
Looks like someone is using the stock for another illegal pump and dump in shares.
Dead company, with no assets, CEO in jail, and tens of thousands in back filing fees owed for the now expired corporate charter; but the stock is up to $0.0022 now.
Either that or someone is 'painting the tape' and trying to get a pump going.
Louis J. Desy Jr.
That is the old
That is the remainder of what was RSHCQ.
Basically, the only thing left is enough assets to pay off the admin costs with some people fighting over if they have a valid claim for admin fees or not.
The liquidation will probably be finished before the end of the year, but for the old common shares that does not matter since they are dead already.
Louis J. Desy Jr.
liquidation dragging on
It looks like the liquidation is dragging on for months. The dead line for some administrative claims is something like June 30, 2017.
Louis J. Desy Jr.
Administrative dissolution
I took a closer look, and it looks like the corporate charter was dissolved years ago for not filing property tax reports. i.e. It was dissolved as an administrative dissolution as far as I can tell.
Louis J. Desy Jr.
Local gas station at $2.17
It looks like the price of oil and gas is going no where. The price at my local gas station dropped a few cents.
Louis J. Desy Jr.
There is a warning prior to cancellation
When the end is near, there will be a warning. Once the plan is approved by the court, there starts an ten day appeal period, after which the court will enter an order for he confirmation date.
At that point the common shares will be cancalled.
Confirmation Is Not the End of the Case - Kirkland & Ellis
Louis J. Desy Jr.
Bid/ask $0.0375/$0.07
It looks like the bid and ask are retail and not the market makers. I put a block of 11,000 on each side and the shares went from 10,000 to a total of 21,000; so there is someone there looking to buy or sell, and it is not the market maker.
Louis J. Desy Jr.