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Sell the shell? Are you joking? This shell is worthless. No one would want a shell that is tainted with regulatory issues and fraud. Only clean shells can be sold. I am stuck like many others, having bought on the very same day it was halted.
Maybe, I don't know...I hold a few hundred thousand shares of this stock and my brokerage won't allow any trades. No buys, no sells. From my limited experience, I know it is very difficult to find brokers to even accept pink sheet companies let alone shorting the stock. Institutional investors have different rules. Maybe it was a MM...
I agree that regulatory authorities will now have the hineys and the hineys of everyone associated with this company under an electron microscope. I am surprised it is not halted until the source of the fraud is identified.
I own a few shares of this too. Purchased a couple years ago. I don't know that it's possible to short a subpenny. My theory is that someone holding a lot of shares, possibly purchased after the tango deal announcement, decided to take matters into their own hands. Perhaps someone who was feeling burned when the deal was unwound. It's just a theory.
Can't speak for Erwin but I do agree with you re: George. He's one of the white hat guys.
They were the number 1 and number 2 guys at Nacel. CFO and CEO. Sorry I ignored your post because I'm not Sheep.
Just scanned the filing. Noticed Schaftlein and Fleming have reduced ownership in NCEN as of 9/30/11. Less than 5% each. Conversely, looks like ownership in CBWP has increased.
Thoughts, anyone? Good for holders of CBWP...
Anyone still following this? Have moved on like everyone else, however, been hoping to hear/see something about criminal charges or SEC charges...anything. Won't return the large amount of cash I lost as an investor in this massive scam but gee would it be nice to know the crooks are behind bars.
Oops, I meant it would trigger expense on date issued, not exercised. Need to go back and re-read the disclosures. Number is probably correct though.
The stock comp number is probably correct. If you read through the disclosures, it appears the company issued many millions of shares when warrants previously issued were exercised. The exercise would trigger the recognition of compensation expense for the difference between the strike price and the market price on date of exercise. Didn't do the math but I wouldn't doubt the expense was astronomical.
Yeah, I worked for a pinkie for awhile. Just long enough to gain exposure to Wall Street's underbelly.
Unfortunately, I've lost my shorts on more than one pink. Hard lessons.
With the stock locked, who would buy shares, private placement or otherwise? $1,000,000. At current prices, that's a lot of shares.
Board of Advisors...an advisory board would have no legal liability and not the same as a director. Otherwise, no one in their right mind would step into this company in any position. IMO.
No private placement will fly unless they're confident the lock will be lifted. One option for this company might be to take it private through sale.
I've lost several thousand $ on this turd. A buyout would be a blessing.
I noticed that article too. Did you also see one on the same site stating that Marriott awarded a contract for IPTV services to Activus (this might not be quite correct, citing from memory)? For their European hotels.
Been watching this board for awhile. Doubled down big time on this stock. Hope I don't regret it.
What is your experience, wEaReLeGiOn? You seem knowledgeable about the industry workings. Just curious.
I too wonder if the spike in volume was due to promoters receiving and selling large numbers of shares. At one time I worked for a pink/OTC company. We were approached almost daily by firms offering promotion services in exchange for stock.
I said it was a theory. Look at the long list of promoters that was posted earlier.
You're right. We could use some facts. How about Luke or one of the other posters who claim to have Roth on speed dial get on that and encourage the company to 'enlighten' their shareholders.
Yes, it would be a total waste of his time to answer to shareholders. And we're all shocked SHOCKED too.
My theory is they were diluting by issuing shares to promoters. If they began issuing the shares in early 2009 and throughout for the web and email campaigns (mentioned in the SEC documents), then those shares would've began hitting the market throughout the run up in price from September 2009 until game over date.
Just a theory. Remember, Fuentes told the FBI his job was to 'market, etc. etc.'. Maybe that's why the DTC lock happened. There may be an investigation into who was issued shares and for what purpose (the disengorgement order).
This board reminds me of a soap opera. Can check out for days and nothing happened while you were gone. We're hostages waiting for a lifeline. Or culties waiting for the mothership to land.
Did the rapture happen and leave us behind? I see there must be more stockholders who have opened accounts elsewhere and are dumping shares. They're probably the smart ones.
Well stated.
That's great and all, but no offense to Mr. Roth. We already know he's the CEO. They said that in the PR announcing the resignation of TS.
How about someone tell us something we don't know? Like what the hell is going on with our investments.
Not directing any anger at you. It just seems odd he would see the need to 'announce' he is CEO. Better include a lot more info than that if he's going to bother addressing shareholders in a time of crisis.
TS will make a statement? Shouldn't any statements concerning the company come from the CEO, Roth?
Okay, well thanks for shooting my one hope in the crapper. :)
I suspect you're right, I initially posted I thought the real reason was possibility of fraudulently issued shares.
If anyone is interested, I may start a new stock to avoid service. Seems like anything I've touched lately in pennyland has been toxic.
Yes, I know. On the surface, it sounds material. We'll see. I just think it's reckless of any insiders to be sharing ANY information on the QT when the company is in this position. PR to everyone or to noone.
Yeah, I haven't taken time to check it out. If the company has a good product and patents, I'm hopeful it will survive. Fortunately, I don't need the money any time soon, it was a high risk investment to begin with. So I can ride it out too.
Still frustrating though as I would like to know what exactly the hell is going on. Control freak.
The only problem is that others could be trading the information or anticipation of a PR. It doesn't have to be Luke trading it to be a problem. Source of info could be in big trouble. Not smart if they are already in trouble with SEC.
All IMO.
The only way the DTCC lock would be lifted in conjunction with a big news development and PR would be if SFIO initiated the lock to audit the actual share count for purposes of an acquisition/merger with another company. Given the fraud, it is more than understandable that any potential suitor for SFIO would have major cold feet unless total OS shares were accounted for.
I'm speculating like everyone else. Want to hope there's good news coming, otherwise I will be transferring from TD Ameritrade like everyone else.
If Luke is providing misinformation (whether purposely or he's being manipulated), I too will be pissed like everyone else.
I think there may be truth to this. If you look at the SEC complaint, it states that TS acted as the transfer agent for the two attempted share issuances. There may be a larger investigation ongoing if they suspect other shares were issued illegally or without proper restrictions. Is it possible the transfer agent was bypassed or complicit?
Very very frustrating to finally check in at the end of the day and see I've lost another 42%. Even if I could sell, I would probably hold at this point but it sucks not having any control.
What a cluster ****.
Wouldn't expect a PR or any comment until the lock is lifted and maybe not even then. If the remaining officers have attorneys (I would be shocked if they didn't), they would be advised by counsel to make no comments.
My biggest beef is the same as everyone else. Why wasn't a lock done sooner and how can only some of us be held hostage? Yeah, I know it depends on the brokerage firms and their clearing house relationships but damn, it's not right that some are able to get in and out of this stock while the rest of us wait in limbo.
Agree 100%. All of the officers had a duty to protect shareholders. Odds are there will now be a class action lawsuit as lawyers troll for this kind of snafu. I personally hope that doesn't happen as it probably won't benefit shareholders and only drive the price down if we survive this DTCC lock issue.
Frustrating. I don't get the TS defenders who say he was screwed. Would perhaps believe he may not have been aware of the rules and might have been manipulated by unscrupulous promoters or scammers, but that's no excuse. Know the rules or don't try to run a public company.
In a past life I worked for a publicly traded OTC/pink sheets company. The number of unscrupulous vultures and scammers that targeted the company daily was unbelievable. Quite an industry out there, scoping out the pinkies and BB's who are typically strapped for capital and desperate for funding.
Off my soapbox now. Got taken on another OTC/pink sheet company only a year ago. EGMI. Still waiting for something to happen. Class action lawsuit, bankruptcy and lots of unanswered questions.
Long time lurker first time poster on this board. On the day the news was released, I had just plowed a few thousand additional $ into SFIO. I bought at around .03. Went to lunch and when I returned, my newly increased investment was down 82%. Ouch.
Now I'm stuck like everyone else waiting to see how this pans out. One thing I am wondering though, is it possible the lock is due to the fact the CEO was acting as the company's transfer agent? I noticed in the SEC complaint it stated he had acted as the transfer agent and they noted that shares had not been registered.
Is there a concern there were illegally issued shares, perhaps without proper restrictions?
Just speculating. Another poster somewhere stated that Etrade had told them the stock couldn't be traded until the company obtained a transfer agent.
I couldn't stomach holding again after buying 3 or 4 times and getting burned every time. But I do agree that the medical apps portion of the business may be worth holding on for. That's if 3M stays in. If worse than what we currently know surfaces, they may bail. Not worth tarnishing their reputation.
Time will tell. Hope it works out for you.
Held this stock off and on over the last two years. After losing money the first 2 times I held it, decided to take the plunge about 3 months prior to last week's announcement about the loss of KPMG. As soon as that came out, I sold for yet another loss.
Should've learned my lesson from another OTC stock, EGMI. Whenever the auditors disagree, watch out. Odds are with the latest announcement of a law firm involved and potential for litigation, the company will be unable to retain auditors. No one will want to touch them.
KPMG is very reputable. For the company to disagree with the auditors rather than make the adjustments is a major red flag there will be restatements, if another auditor can be retained.
Good luck to those of you holding. I should've learned my lesson the first 2 times, especially after the EGMI fraud.
Unfortunately, I see this one going to the pink sheets.
Holiday Greetings, fellow fraud victims. Seriously, wishing everyone the best as we wait for justice to prevail. (This is where we all say 'ho ho ho').
If you believe in Santa Claus...
Hope everyone has a wonderful holiday season. In spite of the crooks.
Sold my position last week, thank heavens. Couldn't take the bleeding. Hoping to buy back in if I see a strong reversal.
Regarding the complaints about EquiTrend. It's apparent after looking at the low cash position per the last Q that EquiTrend was hired to raise capital. They're not an IR firm. CKGT should clarify their role so investors stop contacting them for IR information.
It's negative PR X some multiple to have no IR whatsoever while leading the public to believe the new firm has been hired for that purpose.
This company has great potential but until the market is ready to recognize that, I'm staying on the sidelines.
Good luck, everyone.
Wasn't the payment for the patent to a related party? If they overpaid, that would most likely be why.
I'm torn on this company. Love the products and the growth story but really concerned they will or already are desperate for cash. I don't see that they have a history of managing large receivables on the scale they currently hold. And the collection issues that go hand in hand not to mention the estimates for doubtful accounts which can really impact earnings.
I hold another .ob stock with a history of issues collecting receivables. It's held the stock down. Now I might be holding another one.
Sure took a beating on this one today. I was hoping for a great Q like everyone else.
Just finished going through the Q. Cash is a big issue, the rapid growth and expenditures for patents and expansion coupled with the enormous growth in accounts receivable has taken a toll. Confirms what I suspected in terms of hiring Equitrend. They're definitely going to need major capital infusion. Dilution will be inevitable.
Cigarettes, feed, and beverages did exceedingly well. No surprises there.
I also see they issued restricted shares for attorney and consulting fees over the past year or so. If they don't improve their cash position soon, I would expect that to continue, unfortunately.
After reading this report, I'm on the fence as to whether to hold this or revisit next quarter. Concerned about the receivables and lack of cash.
The last possible date to file is Monday, Nov. 22 if they file an extension by Monday, Nov. 15 (or maybe it's the next day when the extension is due). Regular filing deadline is Monday the 15th.
Equitrend is not an IR firm like Hawk. When the company issued their press release that they hired these guys for 'investor awareness' they should have clarified. Equitrend has most likely been hired to create institutional investor awareness, not to handle investor relations from stockholders.
Someone should contact the company (Equitrend and/or CKGT) and request they clarify what exactly Equitrend's role is.
I'm frustrated with this stock. Almost sold it all today.
I hope they can establish they're safer. Yes, a major tobacco company may take notice, especially if these guys begin to take market share.
Let's cross our fingers the next report is a blowout.
I would bet they're going to need FDA approval and the samples shouldn't have been distributed. Even if the cigarettes with 'no nicotine' are marketed, who's to say there aren't other dangerous chemicals in them? Not to mention the recent issues with other products from China (lead containing toys, toxic baby milk). I don't think the FDA will allow ingesting anything into the body that hasn't been tested. I could be wrong though.
Even if they begin to market them, I would bet anti-smoking or other groups would launch concerns and force the products to be tested. You never know what kind of chemical reactions take place when ignited. Cactus could be perfectly fine until it's burned. But again, I'm just being devil's advocate.
I still hold this stock and would love to see them market their products globally. But where the cigs are concerned, I see potential for problems with regulation, at least in the US.
Wouldn't they need FDA approval? That could take years.