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George has 125M HMBL warrants through Forwardly. Shorting is one way to get ahead of the Rule 144 requirement to wait a year. That year ends on December 3rd. George might be shorting HMBL but he has every incentive to pump it as well.
The share price is up 20% on the news of George coming on board to pump Humbl's share price. Let's see if he can do it.
Exactly. As I said yesterday, both Brian and George have a keen interest in getting those warrants exercised and getting the shares sold. The short interest shows that most of the 250M shares haven't (yet?) been shorted. With two weeks left to go before the one year mark, there's a high motivation to get investors to gobble up shares right now right now so we're going to hear some fluff.
Today's announcement by George confirms that. He's basically coming on board to generate and release some major fluff press releases.
Please do not mistake silence for weakness. Humbl is weak for other reasons, not because of its silence.
I'm sure Brian would like to let everyone know that Humbl has been a great learning experience for him and that he would like to thank you for funding his latest experiment. Now that he has one foote out the door and is transitioning to Blocks, I'm sure he would be happy to give you a stake in his new venture if you want to put up some more money and gamble on him again.
I know George Sharp and the other warrant holder didn't short all 250 million shares to cover the warrant exercise so George, and maybe Brian too, are going to be in major pump mode soon. We're going to hear some spectacular fluff soon.
Hopefully it works out for you. Revenue growth was really good this past quarter, going up about 4x to over a million dollars and a good portion of that was organic. However there are still heavy losses and the fully diluted market cap is $3 billion. A lot of stuff has to go very well for a very long period of time.
I sincerely wish you and other investors the best of luck. Your optimism is better than mine.
Just be careful. Sometimes the ask slaps you back.
As fast as HMBL has been dropping with only a few weeks left until the 250M warrants meet the one year holding period for Rule 144, it has to be warrant holders shorting ahead of exercising.
Nobody should be panicking about the warrants or series B. It is what it is. Right now Humbl has almost seven billion shares on a fully diluted basis, and those shares will all be there when the dust settles on the series B in over a year.
At $0.42, do you think Hmbl is worth it's fully diluted $3 billion market cap? If so then own shares. If not then don't.
To me, HMBL seems wildly overvalued but many others believe that Humbl is a super value at a fire sale price.
I don't see a term sheet but according to the filings, George's/Forwardly's warrants are exercisable at $0.20. However, George Sharp is obviously affiliated with Humbl so he would have to wait a year for Rule 144 so he can sell. That would be December 4th in just over two weeks.
So technically George Sharp was being deceptive by saying that if it was about profit he would have exercised the warrants months ago. He can't have the restrictive legend removed from the shares until Dec 4th anyway so it doesn't help to exercise earlier.
As the previous reverse split deception also shows, George Sharp isn't an honest man. Don't trust him.
George has to wait until Dec 4 AFIAK. Obviously George won't exercise until he has assurance that Brian Foote will consent to having the restriction removed so Brian Foote surely has every incentive to give consent. That's $25 million for Brian Foote to use and, at current prices, nets George/Forwardly about $36M plus any premium he may be making by already shorting shares.
So will there be further selling/short selling leading up to Dec 4th? There are 250M shares, about 25% of the current outstanding share count, underlying the warrants of George Sharp and the other party.
After Brian Foote and George Sharp get their cuts with the warrants, shareholders will have to contend with the slow release of the series B conversion of 5.6 billion shares over the next year or so. However Brian might drag his feet on 144 consent with those.
My impression of George Sharp is that he's a charlatan trying to fool investors into believing he's an honest man fighting for shareholders and trying to shut down scam companies.
In reality, this quote from George about springing a reverse split onto Humbl shareholders is all anyone needs to know. George said informing investors, "would have created mass panic. Many of you would have sold at $0.40 [$1.60 post rs] so we saved a lot of you from yourself."
I don't have any prior experience with George Sharp nor have I ever heard of him before Humbl. I only know him from his extensive involvement with Humbl.
Don't get me wrong. I'm sure that George is fairly adept at identifying the traits of other scam companies based on his own experiences. I just don't believe he's on the level.
I'm sure you're right. If the warrant holders, such as George, are confident they can easily remove the restrictive legend from their shares, there's little reason not to short shares ahead of conversion.
Brian might have pacified shareholders by allowing the series B to convert more slowly but he didn't say anything about the warrants which can convert in just over two weeks. He did the warrant holders a major favor by placating other investors about the convertible series B.
Many times crooks seek out the OTC for the purpose of screwing over investors. There are a lot of crooked CEOs on the OTC for that reason. You can't throw a rock at the OTC without hitting a crooked CEO.
There are clues if you know what to look for.
The way to start a lawsuit is to contact a lawyer to start a class action suit. Since the lawyer will typically only get paid if the case is won or settled, the lawyer will decide whether it's worth the time and then, if so, the lawyer will do the rest. A website asking if anyone has lost money may not be illegal but it's also not helpful.
What really matters is whether or not Humbl is worth its $3B or so market cap.
For George Sharp's input, keep in mind he sprung the reverse split on shareholders secretly, pretending he was looking out for their best interests. George Sharp is a despicable man. If you want to believe he's looking out for you as a shareholder, you can count on learning a painful lesson.
Keep in mind that as CEO of Forwardly, George Sharp is keenly interested in keeping HMBL pumped as much as possible since the Humbl warrants owned by Forwardly become exercisable in about two weeks. He will control a nice sum of fresh cash if everything goes right with the warrants. My guess is that George is already sure that he can get the restrictions on the shares lifted and can sell the shares quickly or use the shares to cover a short position.
It's really dropping. $0.49 now. Volume is higher today but that could be primarily because it's dropping, not necessarily because someone is selling a bunch of shares. Still, today's drop seems atypical.
I only shorted a modest amount of shares because I wasn't sure if it was some sort of a bear trap. Obviously I wish I had shorted a large amount.
I'm fairly certain a person needs consent from the company to clear 144. Maybe I'm wrong somehow.
I'm sure George will be able to exercise the warrants. However I don't think there's any way to for George to get an opinion letter if Brian doesn't want him to get one. George might sue for damages if Brian doesn't give him one, but I believe it's still up to Brian.
There's not a lot of risk if George is sure he can get the opinion letter for the shares.
Anything could happen. Maybe George will short all of those shares and then Brian will refuse to give him an opinion letter, forcing him to buy all of those shares back.
That was my thought as well. George Sharp can convert his warrants through Forwardly on Dec 3 and theoretically sell before the series B shareholders can. The warrants are older than the Series B. He might be shorting ahead of the exercise.
I don't remember whether the shares underlying those warrants were already registered or not, and I'm too lazy to go look. Does anyone remember seeing a registration form for the warrants?
Did Brian say why he wasn't sleeping?? Is it because of a guilty conscience??
Earnings should be a week or two away. We should then get a good idea if the growth trajectory supports a $4 billion valuation. As of last quarter, revenues were at an annualized $1M/yr.
Humbl sold a lot of Humbl branded merchandise early in the year and then sold $5 subscriptions through their app after that. I doubt the merchandise sales held up but maybe we'll see those subscriptions grow dramatically.
The price being low is subjective. Some of the series B holders might think a $4 billion market cap is high.
Right now Humbl's annualized revenues of about $1 million are no where near the ballpark of what an average investors would expect for a company or even a growth company with a market cap of four billion dollars. Humbl would have to increase its revenues by about a thousand times to get in that ballpark. Maybe it has that potential and maybe it doesn't. Maybe I'm blind but if it does have that kind of potential, I don't see it.
Yes, my bad as the conversion from series B to common won't completely happen next month due to the new limitations.
I'm just curious about the belief that few will sell the newly issued common once they're able to do so.
Why half a billion dollar market cap?? The series B preferred should already be factored in as those preferred shares should convert soon, giving Humbl a $4 billion market cap. The current market cap is meaningless.
The series B preferred can and surely will immediately convert to 5,600,000,000 new common shares next month. Assuming the current holders of the series B preferred get opinion letters in February and are then able to sell their common shares on the open market, do you believe that very few of them would sell? Why do you believe there will be little selling pressure?
HMBL is a $4,000,000,000 market cap company which had $226,000 in revenues last quarter. They need to grow a lot to get to anything which looks reasonable. Humbl is in a hot industry and there has been growth in the past two quarters but that growth doesn't impress. I'm sure most investors are trading HMBL on hype alone.
It would be interesting to know how many shareholders don't know about the preferred B shares. It's a big number but I suspect many won't know until the conversions hit the outstanding shares.
Foote is trying to polish up the share structure since the series B preferred are the talk of the message boards. Withdrawing the series C preferred doesn't do much except trick a few more investors into buying shares. It's all about presentation.
Humbl still has series A preferred super voting shares which gives Foote about 70 billion votes and ensures other shareholders never get a say in the company, and series B preferred which represents 5.6 billion common shares worth of economic interest.
"It’s called investing…you buy into what you think the future will be."
You're absolutely correct.
"Investors don’t calculate the value of the company they invest in based on authorized shares?"
Of course not. But they should calculate the share value based on the value of the company and the fully diluted outstanding shares. Currently there are about 6.5 billion shares on a fully diluted basis.
Further, Brian Foote has series A preferred shares which don't have any economic interest but give him 70 billion votes. That makes sure that other shareholders will never get any meaningful vote. Brian Foote is locked and loaded and the only job of shareholders is to hand him their cash.
It's possible that Humbl is a bear trap and will have a big jump but, in my strong opinion, holding long term isn't going to end well for shareholders.
"Not true!!!"
With what are you vehemently disagreeing? My opinion that the CEO isn't being forthright or the fact that the series B shares are convertible to 5.6 billion new common shares which will increase the outstanding shares by a factor of seven?
I'm sure HMBL would have been set to drop $0.10 on Monday if Brian Foote had also described the Series B issue and released it to multiple news services. I doubt most investors know or understand the issue.
If the news had first described the situation, that the series B are convertible to 5,600,000,000 shares which will increase the total outstanding shares by a factor of seven, some previously unwitting investors would certainly have decided to sell.
The news was a bit calculated. That further solidifies my belief that Brian Foote is crooked. If anyone sides with Brian Foote, believing he did the right thing by not being fully forthright with investors in the press release, they had better re-think their position.
CEO Brian Foote heard the chatter and knows that's what many shareholders fear. He took steps to calm investors so they would stay invested. The only problem with putting that out in the news is that he just alerted more investors to the existence of the massive series B share overhang.
"San Diego, California, October 29, 2021 -- HUMBL, Inc. (OTC Markets: HMBL) announced today that its Board of Directors and an 85% super-majority of its Series B Preferred shareholders approved an amendment to its Certificate of Incorporation."
"The amendment limits the amount that all Series B shareholders who own more than 750 Series B shares can convert into common stock in any given month during the period beginning December 2021 and ending May 2023."
My dilemma is that I want to short HMBL with maybe 25% of my net worth but I'm scared that HMBL is an elaborate bear trap. So I'm stuck shorting a 'humble' amount of shares and hoping the bear trap will be sprung so I can then short much more.
It's very possible that Steven Gallagher helped start the rally in HMBL when he started buying a year ago and started tweeting. He bought 2M shares at $0.017 and the stock went up from there. It was about that time when HMBL/TSNP started going into the stratosphere. Brian Foote and George Sharp did the rest.
Differences of opinion. Obviously people who believe in Humbl believe that the series B preferred shareholders won't sell the common even if they convert. Similarly the people who believe Humbl is overvalued believe that the series B holders will convert them into common and dump as soon as they are able.
In reality it's probably somewhere in between. Likely some will hold and some will sell.
I'll push my opinion again that the best action is to evaluate Humbl's prospects in comparison to it's $4 billion market cap. If you think Humbl will truly shift paradigms, then hold. If not, don't hold.
I'm firmly in the camp that believes that Humbl is wildly overvalued. So far the company doesn't seem to be getting much traction and some portion of the revenues are just Humble-branded merchandize sales to an enthusiastic base of investors. If Humbl were to legitimately increase their revenues by about 1,000 times to get to a reasonable price-to-sales ratio for a growth company, I would re-evaluate my position.
The share price seems so far above reality that it continues to be in the back of my mind that HMBL is some elaborate bear trap.
There will be 5.6 billion new common shares on conversion of all the series B preferred shares. After conversion and at the point those shareholders are able to sell, it would make sense that some of them will sell.
However it's up to CEO Brian Foote as to whether he's going to let any of them sell their new common shares by allowing the removal of the restrictive legend. He might drag his feet and that wouldn't be uncommon in penny world.
I believe you're better off asking yourself whether Humbl deserves a $4 billion market cap. That's lofty for a company which counts revenues in $100,000's and losses in $10's of millions.
I thought you were joking when you first suggested that rich people would hold onto the preferred B shares and take out loans against them.
Well in that case, I'll also give my opinion that for anyone holding the preferred B shares for the very long term, the capital gains taxes will be zero or minimal. The reason is that, in all likelihood, the shares will end up worthless.
In addition, for all intents and purposes, those new common shares are already there since the market is forward looking. There's no reason for preferred B shareholders not to immediately convert as soon as they can. After that, it will be up to Humbl as to whether they register the new common shares or even allow those investors to sell those shares on the market via 144. But either way, those new shares will have a claim on any perceived future dividends. For anyone trying to value Humbl, those new shares would already be in their calculations.
The take away, in my opinion only, is don't hold HMBL long term. It might pop but in the long term it will only go down.
On the short side, I'm sure many people see that the stock is worthless but there's no question that people are scared to short it. I know I am. A stock that goes from (reverse split adjusted) $0.0004 to $7.72 in four months, literally a 2,000,000% increase, shouldn't be considered an easy short no matter how worthless. I shorted a small amount and will wait for it to die over time but I'm giving it plenty of space in case there's a bear-trapping pop.
Humbl is high on hopium but low on results. They hit a lot of hot buttons with investors with a mobile cryptocurrency trading app but that's about it.
George Sharp is a character. Remember when he wanted to "save" Humbl investors from themselves by not announcing the reverse split?? He pretends to be a fraud buster but that level of deception should indicate otherwise. He just recently took custodianship of three moribund companies, GVSI, GOFF and SRNW, and listed all three as having aspirations of entering the blockchain industry. It's clear what he's really trying to do. I believe it's very likely that George is a self-described advocate against microcap fraud only because he doesn't want competition for gullible investors from other scams. Gullible investors are a lucrative resource which George needs for his own companies.
Humbl CEO Brian Foote seems to have been in this space as well for several years with no success that I can see. Humbl appears to be just another pez in the pez dispenser. Who knows??...maybe he's actually trying to eventually stumble upon creating a successful company in the future and if he can get investors to continue to pay for all of his failures while he's trying, he's golden.
Keep in mind that's a 1% per three months for each affiliate/officer/director, not a total limit for all affiliates. Second, unaffiliated investors aren't limited to any percentage once the time has passed.
However, maybe Humbl will drag its feet on giving an opinion letter to non-affiliates. Without that, they can't sell at all!
Overall, I wouldn't worry about when people can sell their shares. The important part is that there will be something like 6,500,000,000 shares outstanding and the most traction Humbl has achieved so far is by selling Humbl-branded merch to investors.
Humbl seems to be such an obviously worthless company that my thought continues to be that they're setting a bear trap. If you're long, play it that way but don't hold long term imagining that you're going to get generational wealth.