Bashing silly penny stocks
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The company sold additional securities - it is incorrect to assume that they sold only common stock. They aren't giving the complete details:
SIGO is looking more and more like a pump and dump.
Today's news shows dilution going on, but without full disclosure. They sold 400K shares at $0.10 and some other security that they don't feel is necessary to describe. And this crushed the stock.
Almost all of the money raised went to pay off people who have loaned the money company, so the insiders here end up owning almost all of the equity with no real cash invested.
The company got started with 4mm shares sold for just $.00275 ($11,000) before Novus Group LLC dumped them into the market, pocketing millions at the expense of the public for a company that wasn't even yet generating revenue.
Now is the next round of dumping, with shares trading yesterday above $1 being sold for a dime along with other securities that investors don't get to learn about. My guess is that they are selling these preferred shares that convert to 10mm common shares each. Why don't they share the full terms?
Don't forget, this is totally tinged by the multiple connections to pump and dump 1PM Industries. SIGO will end up just like that scam.
MORE DILUTION AHEAD. Selling 400K shares yesterday (and other securities that the company isn't yet disclosing) put a lot of pressure on the stock, and the press release indicates a lot more shares will be coming into the float.
In case it's not clear, the company is selling shares at $0.10 (plus some other undisclosed security).
It didn't say NO Conversion rights. Why would someone read that as NO conversion rights???
NOT
Who would trust these guys to oversee an operation like this? Where is the evidence that they can manage even what they are doing now?
SIGO is tainted - tied at the hip to failed pump and dump 1PM Industries, which was likely always related to Brian Weigel/Novus Group LLC, which it owns now, and which employed Magallanes and Baugher while it was being heavily promoted and the stock lost over 99% of its value.
Everyone should wake up and quit believing everything these penny stock gamers at SIGO say.
SIGO management is lame and is playing games. This penny stock scheme has already landed Brian Weigel of Novus Group LLC millions (through dumping up to 4mm shares bought for $0.00275). It's no coincidence that Novus Group sold out to 1PM Industries earlier this year, the same company controlled by notorious Joseph Wade that employed TJ Magallanes and penny-stock gamer Valerie Baugher as it was being pumped and dumped badly.
Look out below!
Is it not clear?
The company will be selling 20mm shares to friends at $0.10, but they will have to also buy PREFERRED shares that are non-voting but CONVERTIBLE.
Regular Joes have to pay the prevailing price if they want in on this "gem", lol. At least it's falling, and will likely continue to fall.
This is one stinky penny stock. Not sure how they got away with letting a buddy buy 4mm shares of free-trading stock at $.00275 per share (Brian Weigel of Novus Group LLC, now fully owned by 1PM Industries, a Joseph Wade scam) and dump them onto the market... THAT is how you make money in penny stocks, not buying garbage like SIGO at $1.35 (and falling)
EXTREMELY FAULTY LOGIC HERE!
SIGO is a sinking ship - look for sub-$1 on this massive reversal. The stock ran from .10 to 2.25, and a 75% correction from the parabolic spike peak is par for the course. That would be $0.56, still up 460%. My best guess is that it bounces between .90-1.00 and then drops to .60 or so.
Losing strategy: Buying busted OTC momentum stocks...
Be careful here! Looks like $1 will be tested in the coming days. Nothing is worse than buying a busted momentum stock at inflated valuation on its way back to the 50-day moving average, which is $0.43 for SIGO.
SIGO has never shown any sales yet in a reported quarter. Wait until they do, and you have to wait until January when they file the 10-Q. Until then, it's not even clear if they have a profitable operation. The market cap at $90mm based on fully-diluted shares of 50mm is above most cannabis companies - this is insanely valued. One can go to Canada and find much better investments, and, even among the few in the U.S. that are tied to cultivation, this one is bloated not relatively inexpensive.
SIGO - fake it until you make it (unless you blow it, like they did at Van Baron Farms)
The company's sales for 8/1-8/7 aren't being repeated every week, as it represents the bulk of the first harvest and there will be a lag until the next harvest. It is incorrect to just multiply that by 52. Further, the company still hasn't announced an agreement to get any more rented space.
The dividend is nothing more than a ploy to drum up investor interest ahead of the company dumping stock onto the public. The dollar amount is trivial at $50,000 total or $4000 for all shareholders of the company that aren't officers of the company. The dividend is actually really counter-productive. This company has debt and is losing money initially on its operations most likely (we won't know until January, as that will be the first time we see a quarter reported with any sales). It seems like it would be smarter to pay off the debt first, no?
Yes, my bad, $4000 for the general public to share amongst themselves, lol
LMAO at the dividend of .001. That is a whopping $50K total. With 4mm shares in the float, that works out to $8000 for everyone to enjoy. For many, that dividend will be less than a postage stamp! 1000 shares --> $1
#WasteOfTime
This company is totally bogus! It's all about 20mm shares that were issued at .001 recently getting sold to the public. There is no license, no sales, no office, no nothing...
The VWAP today was $0.0255 - don't let the manipulated close fool you...
I am not trying to judge the merits of having debt or not having it but to point to the immediate risk to PNTV equity holders due the circumstances here. The balance sheet shows the precarious situation. The company will again generate a big loss. This means they must sell more stock, issue more debt or hope to get warrants exercised. All of these things will pressure the stock in my view.
Green Leaf Farms was built on a foundation of quicksand, PNTV stock. The company is weighed down by toxic debt that far exceeds the value of its assets. The stock price trades well above a ton of warrants. Pretty easy to see where this is headed!
Yes, I know of another public company in Nevada that just started producing revenue but doesn't have debt like this...
This company is owned by its debt holders, and the guy running it has been running it into the ground for years. The only people who have ever made money on this stock prior to this run were the toxic lenders, of which there are still many.
I think management here has misled its shareholders, talking about all the inventory they bought up. It's not that much - 260K on the books at 6/30, the last day to buy as medical and convert. All this talk about 35K a day of product being made - b.s.
In the video yesterday, they talked about minimal sales to date and MAYBE up to 200K by within 60 days. Guess what: PNTV sales for Q3 will be tiny again. Another big cash burn - they are paying a lot more people now than earlier this year.
So, you take a company that uses about $500K per quarter and sells very little, and you get another big loss. But, there is no cash. So, they either sell more stock, like they have been doing (see all those sales at the end of June???), take on more toxic debt or count on warrant exercises. All three mean lower prices ahead for PNTV...
The video talks about this at 18 minutes in...
It would be nice if the company put this into writing!
"We have held off really on sales, is that fair to say?"
"We are really not as concerned about revenue these first weeks"
"Rather than race to the market place.... We decided to hold off..."
Bradley then talked about orders.
"Would it be fair to say that we are on track to deliver $150 to $200K in the say next 30-45 days?"
"Reasonable, reasonable. Within the next 60 days..."
Why aren't these guys buying wholesale and converting to rosin???
So, what I hear is very little revenue for the quarter ending 9/30!
Again, the company showed only a certain amount of inventory on the balance sheet at 6/30 (the last day to buy medical and use for recreational) - about $260K, but they call this "millions of dollars of future revenue". That doesn't make sense - the margins from wholesale to retail aren't that high.
Many traders know how to look at videos but not how to read financial statements, and bozos like Bradley and Pojunis do understand this dynamic. Hence, they don't even issue a press release to explain their recent quarter but instead front-run their late 10-Q with a puffy video.
I get it, as Bradley is a desperate loser trying real hard to make it work after two decades of consistent failure. It's rather obvious that there is a lot more talk than action here. Are they selling products for $35K per day? What I heard is that there haven't been sales yet, as the company wanted to wait. $200K is just six days of $35K. Again, the story is pretty hard to understand. If they have the ability to crank out $35K a day, why aren't they?
Why has the company spent only $167K in the first half of the year on their facility after raking in $1.175mm?
Good observation!
Something doesn't jibe. The company discusses its "millions of dollars of revenue" ahead based on the smart buys it made before Nevada went legal, but the company's balance sheet shows that the inventory on June 30th was only $260K (at cost). Another issue is that their facility at June 30th was carried as part of a total $421K of fixed assets. I understand that some of the things have been donated (lights), but it doesn't seem right that 421K of fixed assets and 260K of inventory will be suddenly producing "millions" of revenue.
When they make their "millions", it's going to the debt holders anyway...
Another quarter of not only wasting everyone's time with this silly enterprise but also more accounting irregularities from these clowns. The company is violating GAAP accounting by not accurately depicting its financials. It is reporting a net income (teeny tiny) but not reporting fully diluted shares.
That's what you get with OTC scams that don't report to the SEC and have an insider do the financials...
While this stock is way down, it really should be trading at no more than $0.05 per share. There are over 500mm shares outstanding effectively - what a joke.
More bad information
SIGO is NOT doing "$140K a week". They did $140K in a week, but they have to plant again. The company didn't do $140K in the next week.
Plus, they are going to be giving a portion of the sales to their debt holders.
The fact is that this company is functionally bankrupt. They need to sell a lot more to generate a profit (they never talk about what they net), as they are upside down in their financials pretty badly:
Yes, the O/S will be 4mm, but the fully-diluted share-count, which is what is used to value the company, will remain 50.0371mm. As the company dumps shares related to the S-1 that is effective, both of these will be going up.
Management is free to convert their shares back whenever they want. For now, there is a restriction to when they can be sold, but they can change that with the stroke of a pen, just like they made this change.
If someone wanted to buy all of SIGO, the cost would be $82mm at $1.64, both before and after this change
4mm shares + 4.6mm preferred shares that convert to 46mm common shares = 50mm shares.
$82mm is comical...
There are still 50mm shares on a fully diluted basis - the company didn't just outright cancel 46mm shares. The insiders control the company - they will be free whenever they want to convert their preferred shares back. They can even wipe out the three-year selling restriction just by deciding to wipe it out, as they have control.
The company will be unloading shares into the market (at a substantial discount), per the S-1 that went effective. That will ultimately boost the float to 24mm shares.
Nothing changes. The float remains the same 4.0317mm shares, most of which were sold to a ghost named Brian Weigel for $.00275 per share (4mm shares).
The value of the company remains the same as well. 4.6mm preferred shares are convertible at any time to 46mm shares (10:1). The total shares for valuing the company are the same - 50.0317mm It's merely sleight of hand, a trick designed to make potential investors think that there has been some sort of improvement. The 46mm shares were already restricted: http://www.otcmarkets.com/stock/SIGO/news/Sunset-Island-Group-Announces-Three-Year-Lock-Up-Agreement-On-Over-90--of-All-Outstanding-Shares?id=167301&b=y
Keep in mind, they control the company, and they can at any time eliminate that restriction. They don't even need to adjust the Authorized Shares to make that happen.
Some very odd things in that filing. Looks like they need a spell-checker! And a date-checker! If this was really done in April, then the company has been giving false info for several months...
Here is more fairy-tale b.s. from this company and indicative that they will say whatever it takes to excite investors:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11884758
Looks like Valerie Baugher is a repeat penny stock scammer - she goes back with Joseph Wade (the guy who Baugher and Magallanes worked with at their last scam, Von Baron Farms, owned by a publicly-traded company).
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10068421
No, this looks like penny stock scammers at their worst to me. The fact that they gave this unknown guy 4mm shares at $.00275 per share to dump into the float is a big red flag. This is what scams do, not real companies.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11767761
Have the clowns running this company ever explained their role in the fraud at their previous employer, a failed penny stock? Check the filings there - the revenue never showed up, and TJ was the Chief Sales Officer.
$58K SALES at Von Baron Farms though they claimed to be selling to 35 dispensaries
How could anyone ever believe anything these people say???
The number of outstanding shares is 50mm+ - totally inaccurate to say anything otherwise.
The number of shares outstanding MAY be reduced, if the company follows through, or it may not, if they don't. Until then, it is absolutely incorrect to say that there are 4mm shares outstanding. Further, this is a big game - the economic value isn't being given away. When the clowns running this company turn their stock into preferred shares, it will still be convertible back to common. Since the shares are not in the float anyway, there is absolutely nothing about this that changes anything really.
Who is Brian Weigel of Novus Group, and why is he laughing at the current price?
He is the guy who bought 4mm shares for just $11,000 ($0.00275 per share) that he has likely been dumping into the market.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11767761
MAJOR ERROR IN INTRO HERE
This is 100% wrong and should be changed immediately. The company has not legally changed its outstanding shares.
http://www.otcmarkets.com/stock/SIGO/profile
Outstanding Shares 50,031,771 a/o Jul 31, 2017
The company is trying to sell shares at $0.10 - 20mm shares!
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12195440
What a freaking scam!
The funny thing is that the company conveniently reports a trival amount of revenue (without disclosing that they likely will report another loss), but it's for "August1-7". Ironically, their third quarter ended 7/31. Their fourth quarter, which will include these sales, ends 10/31 and won't be reported until close to the 1/31/18 due date. These jokers can play silly investors like fools while they try to bring in their $2mm by selling 20mm shares at $0.10
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12195440
THIS COMPANY IS ON A PATH TO BANKRUPTCY unless it sells shares at $0.10, as it is intending, or comes up with some other way to finance itself.
This is from their last 10-Q, filed two months ago: http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12132666
BE CAREFUL - THIS IS A COMPLETE SCAM
There is no license, the CEO is a ghost who somehow was able to take a company with only 1.5mm shares that he has been running since 2014 and, without shareholder vote, get it to 143mm+ fully-diluted shares, most of which went to him.
The real crime is that 20mm shares were converted at .001 for debt - this should be an affiliate (with selling restrictions), but they aren't listed as such, and these are the shares that were likely dumped onto the market.
The SEC has been made aware of the false statements from the company in its press release - there is no grow, at least not legally.
This looks really stupid to me. The Von Baron Farms failures are trying to fleece the public with a new vehicle.
THE COMPANY IS TRYING TO SELL 20MM SHARES AT $0.10.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=12195440