Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
When people read that PPJ will be selling new shares to raise $5 million, the knee-jerk response to the news will be that this is a huge amount of dilution, and the stock price will completely crater.
However, investors should push past that knee-jerk response, and think carefully about the actual scenario.
PPJ Enterprise is worth roughly one million dollars today, and it is hugely underfunded for what the company needs to do to return to a healthy, profitable state.
Adding $5 million in funding to, according to the Form D filed with the SEC, "...TO REINVEST INTO SUBSIDIARY COMPANIES AND OTHER ACCOUNTING EXPENSES" will allow PPJ to immediately do what it needs to do in order to become a truly functional business again instead of being mostly a placemarker for a business while waiting on the results of a lawsuit.
It will also convert a $1 million corporation into a $6 million dollar corporation, and because the funds will be raised using restricted stock which will not sellable for at least one year, the increase in corporate value will come at ZERO DILUTION in share value for a one year period.
In fact, rather than suffering a crash in stock value, enjoying a 6X increase in corporate value should fairly be reflected by a corresponding 6X INCREASE in share price! If investors are wise enough to understand what is actually happening, in anticipation of the change in corporate value, yesterday's $0.0011 PPJE stock should become worth $0.0066 today!
The dilution from the $5 million in restricted (ie: un-tradeable) stock will kick in one year after the new shares are sold, NOT TODAY.
This gives PPJ one year to use the new funding in ways to generate new revenue to offset the dilution that will occur NEXT YEAR.
If PPJ fails to raise the desired funding, or if PPJ fails to capitalize well on the opportunity that the new funding brings, the market can easily adjust to that news with a corresponding modification in share price.
A typical alternative to what PPJ has chosen would have been to sell new shares to a toxic financier who would have dumped all of the new shares into the market as soon as possible for huge dilution immediately.
Instead, Chandana Basu actually made a wise choice, and found a way to raise badly needed funding, but delay the dilution to give the company a chance to grow into the larger share base, with revenue to justify it.
Today, shareholders should be pleased with a plan that will give PPJ an opportunity truly turn itself into a very profitable business! Smart investors will see this, and buy PPJE accordingly. Panic-prone investors will not see this, and will be crushed if they opt to sell en masse.
Well, now I think we can understand how PPJ wants to use that Executive Summary Brochure that was released on the 16th:
http://www.otcmarkets.com/financialReportViewer?symbol=PPJE&id=122565
We also now know why the A/S was increased to 4 billion shares.
Wel,,now I think we can understand how PPJ wants to use that Executive Summary Brochure that they release on the 16th:
http://www.otcmarkets.com/financialReportViewer?symbol=PPJE&id=122565
Gotta love those fast price changes for PPJE!
PPJE: Come 4 the pot, stay 4 the lawsuit! : )
So, what exactly does an Amanda Factor Tipoff number represent? I figure that a larger number is better, but there is no frame of reference to know how to know how much better this is that something else.
PPJE up 225% over last 2 trading days with volume over 100 million each day!
PPJE is still #27 on Breakout Boards! 9 days until trial for $26 million lawsuit for PPJE to recover stolen assets to begin!
On any given day, there are a wide range of prices in play for both buy orders and sell orders. At the end of each trading days, most market makers pull through remaining unfilled orders from the quotation system so they stop appearing as contenders for the bid and ask prices that are displayed on your computer screen.
However, some market makers do not bother with some of the more divergent price points so that the bid/ask spread can appear in the off-hours to be ridiculously wide.
In other cases, it would appear that the market makers are having a bit of humorous fun by doing things like posting an ask price of $5.00 for a stock that has been stuck at $0.0001.
The bottom line is that you should not pay any attention to off-hour price quotes because they have no relationship to actual viable market prices.
Why would anyone want to sell PPJE 9 trading days before the scheduled start of a trial where PPJ could receive a judgment worth over 26 million dollars?
Anyone who has done any research on PPJE knows that it has been a rough period for the company because one if its board directors stole massively from the company which is why the lawsuit exists.
Maybe legalizeMJ didn't get into PPJE yet and wants the PPS to drop so he has a better entry point, or maybe with an alias like "legalizeMJ", he thinks that the only valid reason to buy any corporate stock is its relationship to his desire to legally get stoned. Many of us have held PPJE before the Hemp PR was released, and that it because the huge infusion of funds that could come from the lawsuit is enough to jumpstart any corporation.
Yahoooo! PPJE closed up another 30% today! :)
PPJE up 150% yesterday and 20% today.
As your graph shows, PPJE hit 0.0070 during the last run.
If PPJE continues to rise 20% per day, it would again hit 0.0070 by the scheduled start of the trial:
06/20/2014 - 0.0012 - up 20%
06/23/2014 - 0.0014 - up 20%
06/24/2014 - 0.0017 - up 20%
06/25/2014 - 0.0021 - up 20%
06/26/2014 - 0.0025 - up 20%
06/27/2014 - 0.0030 - up 20%
06/30/2014 - 0.0036 - up 20%
07/01/2014 - 0.0043 - up 20%
07/02/2014 - 0.0052 - up 20%
07/03/2014 - 0.0062 - up 20%
07/07/2014 - 0.0074 - up 20%
20% profit is a good day any day...
Here are the three online sources that you should have read by now:
The SEC just suspended my stock! Now what?
http://promotionstocksecrets.com/the-sec-just-suspended-my-stock-now-what/
Investor Bulletin: Trading Suspensions
http://www.sec.gov/investor/alerts/tradingsuspensions.pdf
Trading in Stock After an SEC Trading Suspension — Be Aware of the Risks
http://investor.gov/news-alerts/investor-bulletins/trading-stock-after-sec-trading-suspension-be-aware-risks#.U6RBvkDT2ns
Remember: Sell into stupid; don't be stupid!
I just successfully got my tax deduction from SKTO, which is all that it is good for at this point, by selling my 25,000 shares for $0.004.
Considering that I bought them for $0.052, that was a loss of 92.3%, which is about typical after a SEC suspension.
Good luck to everyone else on obtaining your tax deduction too!
Hey Money Runners, are you watching PPJE?
It is ripe for picking. We just need the volume your group would bring.
Last time, PPJE ran to 0.0026 and that was without MJ news so it could run even higher this time.
Actually, it is $26 million restitution requested for PPJE... plus one-half of an existing medical clinic.