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Yeah, when a stock like this lays dormant for a long time with no volume, you may be able to buy some at .0001. But not right now, everything is at the mercy of the bid/ask. All buys from the public are at .0002 and all sells from the public are at .0001.
Did anybody really expect it to hold? Profit taking and holiday weekend sell off most likely (I'll be in my car driving tomorrow, not making trades). It still may test that .0002 support early next week as well.
Can you explain why it's taking so long too complete the merger? They said the DD would be back in early April. Why isn't it done yet? It's been 7 months, mergers shouldn't take more than 3 months. RMDM has nothing to offer. They have no cash and no shares to issue. They only made 66K last quarter. This is not a difficult merger. The company increased paid in capital last qtr. by issuing roughly 1.8B shares for only 350K. Which means they weren't issued to anybody, they were sold. When the company said they would use them for the merger or retire them. They just flat out sold them, the balance sheet doesn't lie. That's a pretty big lie. You're still going to believe what this company tells you? Good luck with that. JMO
A good entry point is .0001. If you're patient enough, it will get there. There's no sign of it going anywhere but the lowest of the low. JMO
I agree, it tested the 50 sma 2 days ago and we bounced off of it. I think it will test it again next week if their still isn't any news. If anything, it let's us know there is solid support under us.
The job of the MM is to provide market liquidity. They match the buyer and the seller. But, if an order comes in with no matching order in que, the MM steps in and uses shares out of it's own inventory to complete the transaction. That way trade orders aren't sitting there waiting for a match. If the MM does use shares out of their own inventory, they are not getting their cut (bid/ask spread). So what they do is short the stock and cover it with shares out of their own inventory, if they have enough shares in inventory. If they don't have enough to cover, say hello to "naked shorting".
Merger talk will continue until the end of the year when they can RS. They said the DD on loadcom.com would be done by early April, so what are they doing? It should not take more than 3 months for mergers like this to be completed. JMO
At these levels, it's ripe for accumulation, there's not much risk for us at this level. Reducing the AS is a step in the right direction, it's just going to take a lot more than that I think. GL
You would expect a lot more volume at these prices. The MM's did their thing and walked it down. We need volume to move it back up. Update from the company could kick start it.
You're right it is caught onto. When they announced the possible merger with a TV production company, you would expect a spike, like the one in December after the Loadcom.com merger announcement. Instead there was nothing, it didn't even move. People are on to this type of promotion from RMDM. They have NO shares and NO cash to conduct any mergers. They need to learn how to play the pump, not the prospect. JMO
I'm not sure why people think this will move any time soon. The company reduced the AS, that's no big deal. They still will have an AS of 15.9B and an OS of 5B. There's still a lot of room for massive dilution. If the AS and OS were closer together, more people would be buying. Not at this level.
Float(shares)
1,920,000,000 as of Dec 29, 2009
More than likely, this has changed. Too what? The company diluted by issuing 1.8 billion shares during the last quarter. They said the shares would be used in a merger and they would be restricted. But, since they already issued the shares with no resulting merger, the float could be double what's stated above. JMO
Yesterday's Short Volume - 32%
20100624|INBG|15119030|47184663|
Total Volume: 47,184,663
Short Volume: 15,119,030
http://regsho.finra.org/regsho-Index.html
That's why you almost have to ignore what the buy/sell volume is out of the total volume. The MM's cover their shorts out of their own inventory and record it in the buy volume. They won't let it close at .0001. At least I hope, we should sit here hopefully with all buys on the ask(.0003) and all sells on the bid(.0002).
The merger news can be used either way, the massive sell off will be viewed as profit taking or dilution. It's oversold and the MFI is way down, it's ripe for another surge unless the MM's want to take it down. The trump card for me is the exchange their on, at this price it's worth the risk. If it does go down, it will be hard not to buy more. GL
And everytime someone like you makes a post about charts not working on pinks lets me know that you're a novice or a pumper. How many examples of charts working on pinks would you like me to post?
"proposed a plan" LOL
No contract, no merger update, just another fluff PR.
If low volume continues, it will threaten the 50 sma support at .00022. It has already closed under the 10 & 20 sma. It's starting to form a "death cross", the 10 sma is already going down and has crossed the 20 sma. If they don't get news out soon, things could get ugly. Perfect opportunity for those who chased it during the run-up to average down.
They have to continue with their story that the pps is the "victim of naked shorting". I guess they think there are still investors who can't interpret what is right in front of their face. When you have a day trading with 90% of the total volume being sells and/or 90% of them being buys and the friction factor is zero, doesn't that strike you as odd? So one extreme too the other doesn't affect the pps?
Share Structure? Does anyone know what the float is? This has an AS of 3,950,000,000B common shares with an OS of roughly 2.7B. The company only has about 1 billion shares left to issue. According to the most recent 10-Q the company stated:
"For the coming 12 months, the Company plans to continue to fund the Company through debt and securities sales and issuances"
Has the company issued the remaining 1B AS? We won't know until the next 10-Q. Long story short, this company is running out of funds. There's a good chance they already are out of money. If this merger isn't completed this quarter things could get ugly. Has the LOI and "good faith" deposit been verified?
Why would you think that merger is still on? They issued all of the AS. They have nothing left. They lied and said the AS would be maxed out if the merger is completed. But, it's been issued and there is no merger.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=51139034
They didn't even see the need too mention it in the last PR. There's no merger with loadcom.com coming. JMO
You're absolutely right. Most MM shorts are covered by the end of the day. They sell it short and cover with shares from their own inventory.
What facts? What exactly are you trying to say? What info is misleading? The company used up all of their AS. If they need money, where are they going to get it? If they can't pay the bills with the profit that's coming in; they will R/S to come up with the money. The "no dilution policy" isn't a binding contract, it would not be the first pink to R/S when they said they wouldn't. They lied about using the additional AS for the merger or retiring those shares. Why would you take their word about not doing an R/S in late 2010 if they need money? Their track record with mergers is kind of suspect, the last 2 mergers RMDM did, TDI & ULA, were sold less than a year after acquisition. JMHO JMHO JMHO JMHO JMHO JMHO JMHO JMHO JMHO JMHO
All they need is 6 months. They only need to prop it up and string investors along until Jan. 1, 2011. Then it's R/S time.
They haven't retired anything. They said the 420M shares recently reclaimed may be used in the merger.
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=31660
"In other updates, the company may use this certificate and or cash and other instruments it secures in its quest to formulate a new additional merger with a China based second operating company in the IT industry"
The AS is nearly maxed at 9,740,028,133B shares issued on a 9.888B AS. The float has remained the same, 1.92B. The company diluted between January and March by issuing 1,875,305,687B shares.
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=31956
They stated that the additional AS would be used in the merger and if it wasn't, it would be retired.
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=28250
"RMDM's authorized and outstanding share structure will reach
9,888,000,000 with this merger. All stock issued in connection with the merger (approximately 2,500,000,000
restricted shares) will remain as restricted stock. If the companies do not proceed with the merger or business
relationship this stock will return to treasury and will be cancelled."
According to the most recent Qtr. report, some of that stock has been issued (1,875,305,687B). They didn't retire it or use it in the merger.
Accordig to them, they can't verify things for us?
"For obvious reasons of confidentiality, and competitiveness Innotrek can not release the details" LOL.
Thanks for the support. I agree with you.
You hit the nail on the head, the company should be out of excuses. The company was so vocal when it started to fall after the run up. Where are they now? No PR's, no nothing. Didn't they say if the additional AS wasn't used on the merger, they would be retired? So why did they issue them? They got what they wanted, dilution between January and March, with nothing to show for it. I'm pretty sure they'll run it again. The waiting is a pain in the a$$.
Priceless? I'm not quite sure what you mean. Everything I said in my post is true. MM's short the stock, they do it legally every day as a means to keeping the market orderly. They're doing what they are supposed to do. Those shorts are accounted for in the Finra SHO report. Not every MM abuses that role. I didn't say they do/don't abuse it. Just because it's happening doesn't mean it's a negative thing. If abusive shorting was that easy to recognize; why hasn't the SEC noticed it? Why hasn't RMDM contacted the SEC and formally request an investigation?
"the market-maker short activity in RMDM looks disproportionate, wouldn't you say?"
Can you explain the friction factor of zero on a day where the buy volume is 174,958,853 and sell volume is 41,099,414 (March 5)? Or, on March 2 when the buy volume was 2,006,000 and the sell volume was 346,001,441?
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=29786
That doesn't fall within the "roughly comparable amounts" guidlines, right? But, the friction factor is 0, which means there is no manipulative activity detected. Nothing is abnormal in the way the stock is being traded on those days according to the report from Buyins.net. As such, that activity doesn't affect the price of the stock?
From Buyins.net report:
Here is how to understand Friction Factor:
1. If Friction Factor is positive, more buying than selling caused RMDM?s price to rise
2. If Friction Factor is negative, more selling than buying caused RMDM?s price to
fall
3. If Friction Factor is 0, there was no discernable activity either way
4. If Friction Factor is abnormal, it means that there is either a bearish bias or a
bullish bias to how market makers are making market in your stock.
Yes. Where else would those shorts come from? In order for the MM to provide market liquidity, they have to use shorts as a tool. They can't have orders just sitting there waiting to be executed. So they use their inventory to keep things running smoothly and in a timely fashion. Their shorting can drop the pps, but in order for them to do their job, it has to be done. If their intent is to drive the pps down, they can do that by selling off their inventory.
Finra requires daily and bi-weekly reports. The bi-weekly report is the short position taken (mainly) by public investors. Currently, that position is 0 shares. The highest I've seen it is 800K, which is nothing when the float is 1.9B. It's difficult for the public to short sub-penny stocks. There's really no money to be made doing it. It's difficult to locate shares to borrow in order to do it. Here's some light reading when you have time, or if you're trying to cure chronic insomnia.
http://www.sec.gov/spotlight/keyregshoissues.htm
http://www.sec.gov/rules/final/2008/34-58775.pdf
http://www.sec.gov/rules/final/2008/34-58774.pdf
http://www.finra.org/Industry/Compliance/RegulatoryFilings/ShortInterestReporting/index.htm
Right, if there is no matching buyer/seller in que when the order is placed, then the MM uses shares from their inventory. To make up for the differance, for the sake of liquidity, the MM shorts the stock. Which is the shorts that show up in the daily Finra SHO report.
Post Unavailable
Additional Information
A pretty good guess I would say!
TRUST US!......................wink, wink
They said the remaining AS would be used in the merger. If the merger hasn't been completed, then why did they issue those shares? Who did they issue them to? They issued them before March 31, but stated in a PR that the DD for the merger wouldn't be back until early April. Does any of this make sense?
Bid/Ask is @ .0002/.0003
That's what happens when you dump almost 800M shares.
New share structure numbers from pinksheets.com. The AS of course, has not changed, but the OS is now listed at 9.7B. They stated in their PR that the additional AS and 420M shares reclaimed, may be used in the merger. They also said that If they didn't, they would be retired. The OS before these new figures was 6.9B. Has the OS been raised because they issued the restricted shares to Loadcom? Why else would the OS numbers be raised if the deal isn't done? Anybody have info on this stuff?
Estimated Market Cap
$3,896,011 as of May 24, 2010
Outstanding Shares
9,740,028,133 as of Mar 31, 2010
Authorized Shares
9,888,000,000 as of Mar 31, 2010
Float(shares)
1,920,000,000 as of Dec 29, 2009
What? I must have missed that. What happened? Was it Innotrek selling them things before they merged with RMDM?
Again, the constant daily shorting is done to provide liquidity. The report referred to stated that short volume was 87%, but it had a friction factor of zero. Which means their is nothing abnormal about the trading.
"If Friction Factor is abnormal, it means that more buying than selling caused the price to drop, which is evidence of manipulative activity."
As it states, since the FF is not abnormal, there is no manipulative activity. So, the constant daily shorting by the MM's is not abnormal and as such, is not affecting the pps. Just my opinion at least. It's all bunk.
"in the end you will be much further ahead"
That's the key. This is my (will be) third time flipping it in 5 months. Banking just 10%-20% profit is never a bad thing. If it takes off, will it be for more profit then what I made on the 3 flips? Most likely no. If people want to go long great, you can still flip it and go long. They walk it back down quick enough, you're only out of the stock a few days before you buy back in. Or, don't wait for it to drop, you've accumulated enough free shares that it doesn't matter. Just add more if you can when it finally bottoms out to maximize profit. The only thing you have to worry about is the waiting. GLTA
It's difficult, for whatever reason, to get people to understand the FINRA SHO numbers. They are shorts by the MM's but, they are done in order to provide "market liquidity". They are not done with malicious intent. They are not trying to harm a stocks pps, they are not short positions.
BUYINS.net prays upon that lack of understanding. One only has to Google BUYINS.net to find info on the "victim of short sales" scam. How many times was BUYINS.net founder on the wrong side of an SEC investigation? I may be wrong but didn't they call a short squeeze for RMDM that never came?
450 Million shares reclaimed? But they issued more stock over the quarter? If people can't put 2 and 2 together.....and now the pps is at it's lowest point of the year. LOL