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ASCM saw the trading activity for the last week and thought they could take advantage of shorting it. Once they do some real due-diligence on HLNT, and decide to buy long rather than short, they will make money for their clients and add a lot of buying pressure here. After all, they do represent large investors and institutions. We'll just have to watch how they play HLNT this next week and see if they get smart.
Nothing updated on the SCROLL system. As for that fact, nothing updated on Humphries Bankruptcy or Walters case in Texas either.
Walters was supposed to do his Deposition yesterday, and his Companies, Monarch Bay and STI Group, were due today.
The ASCM GAME:
Many investors were wondering how ASCM was able to pull off its magic act today. Often times, a transaction would be much more than the 5000 share lot that ASCM was showing, but the PPS would not change and ASCM just stayed there. Or worse yet, a big order would go through and instead of the PPS rising, it would fall. ASCM was able to do this, legally, based upon a technicality over a system known as "conditional orders".
Conditional Orders: A trader can put in an order, for example, to sell at $.01. This order is recorded by the MM, and a transaction number is assigned for tracking purposes. The MM must show this order on the L2. But with the regular order, a trader can set up a series of "conditional orders", orders that do not get registered until the pending order on which it is based is executed. Then the "conditional order" is submitted, automatically and is assigned a tracking number and is recorded. There can be multiple "conditional orders" on the original order (if the original order is filled, submit the "conditional order" at the same price, again for 5k shares or another order that is submitted for a couple of ticks lower, ie .0098 after the .0100 order is filled) or chains of "conditional orders" at the same or lower price. By using this method, ASCM can show only a 5k block of shares for the L2 to meet SEC requirements, which defeats the SEC rules, but is legal. ASCM advertises state of the art trading capability, so these "conditional orders" occur so fast that they are relatively invisible on the L2. At various times today, watching the L2 very closely, you could catch sight of some of these "conditional orders" going through. Blink and you missed it. ASCM was using this method to prevent investors/traders from getting a good feel for what was happening with the trading.
More about ASCM:
As one poster here today pointed out, ASCM was relatively unseen until today. This means two things, first, ASCM was planning to do what it did today, and second, ASCM started the day without any shares with which to trade. ASCM's strategy was to let the PPS hit $.01, then by using the "conditional order" method, run the PPS down to about $.007, about as low as it could be run according to SEC rules for short selling based upon the prior days closing.
So what happened?:
ASCM had observed the prior trading action, the PPS changes and the volume. They never expected HLNT to have such a huge day with the volume. Their strategy seemed to be working, until the PPS his the .0087 level, but without the help of other MM's, and with new money pooring in, taking advantage of the interday dip, ASCM couldn't complete the run down, and investors were not running scared trying to sell off. After midday, and without the added selling pressure, ASCM went into a defensive mode, trying to keep the PPS from running totally away from them, and subjecting them to an even worse short squeeze than what they experienced.
Don't know if they made any money today, or completely closed their short positions out, but they probably didn't make much if anything. They picked the wrong day to try this action, as they were totally unprepared for such a volume. Too bad, so sad.
The question was asked, "$.25 in two days?". The possibility is there, but a lot of things would need to occur over the weekend. But the probability is low. However, I didn't think it would break $.01 today either, when talking with Loan Guy last night. I would have been happy to see it break into the 90's with 15 million volume. But HLNT is a stock that requires constant revisions of estimates and opinions, not necessarily on a monthly basis, or a weekly basis, or even a daily basis for that fact. Some times you have to change on an houly basis. In the first 15 minutes of the day, I figured it would break 30 million shares breaking over a penny. At about midday when the volume was over 27 million, the question became how far over 50 million would it go, and I had to agree with Assets that it would break above a penny again by the end of the day. A poster said that had it not been for ASCM, the PPS would have been higher, and they were right, without ASCM, we would have seen the .0110 to .0120 range today. We can wait for Monday to see that now.
But the more important issues. If the trading stays on track, we could see the PPS breaking .02 by next Friday (80 to 85 percent probability). However, in the bigger picture, there is about a 60 percent probability (and climbing) that we will be in the .05 to .10 range by mid July. Things are still developing and the news will continue to be forthcoming. But the .25 level? The possibility is that it can happen by the end of the summer. And if this is too pessimistic come August, then I will have to revise my opinion, upwards. But if not, we will certainly be seeing dime levels.
What is absolutely certain is that HLNT is not the same company that saw a run to .0186 two years ago. There has been so much work done by HLNT that it now has a much more stable base from which it is working, and the idea of a brief run up and then run down is not the scenario to be expected like two years ago. Under the current progress, the buying pressure is being given time to closely follow the rise in the PPS, and while games may be played, it is still strong enough to overcome deterrents to HLNT's climb. Enjoy! This is working out to be an excellent summer.
Opinions expressed herein are my own, and investors should conduct their own due diligence and make their own investment decisions accordingly.
ASCM has been playing the manipulation game today, as Niko has said. They waited until it broke the .01 level, hoping that the bid support would weaken, then they sold the PPS down to cause a selling Panic. ASCM has set their buy back level at .0070, expecting to make a good killing off today's activity. Problem is, they have underanticipated the volume and the resiliencd of the stock. The Panic has not really occurred beyond the sell down by ASCM. Others have taken advantage of the dip today to buy more for the next leg of the run. For the rest of the day, and even into next week, ASCM will be adding to the buying pressure as they cover their mistake.
Casa, the feeling your are talking about is fleeting, and empty. However, the satisfaction you will receive when those very people are clamoring for Product because they will be chasing those who believed in the Wildcat and related products, will bring you a smug sense of satisfaction, when you watch them eat humble pie.
Thank you for the work that you have done. Your posts along the way kept many longs here committed, just by the knowledge that you shared with them in that the Wildcat worked and worked well. You will be taken care of along the way.
The work for HLNT is not done, and shareholders will continue to see the results of Chad and company roll out over the next several months. The action of the PPS is a long's delight, and Susan has done an excellent job of mixing the timing of the PR's so that MM's and Shorters alike cannot lock in on when information will be released. This helps to prevent the normal manipulation that most penny stocks see. In fact, HLNT is acting more like a big board stock all the time.
Today, Walters was to undergo his deposition. No indication that he failed to show up. Being as he has had to go before Humphries, he could not prepare for what Humphries is going to say. If Walters doesn't tell the truth, he is going to find out the hard way what happens in court to those who don't. Right now, Walters has the greatest credibility of the trio (Ribotsky and Humphries) as he has no other convictions (Humphries) or pending litigation against him by the SEC (Ribotsky), so his testimoney is his best defense against the wrong doing of the three. Also at issue for Walters, he can be deposed again in the Texas Case. Right about now, this evening, PWC is reevaluating its chances with the NIR case, and they probably don't feel too good about those chances. Of course, we will see in about the next 3 weeks what PWC thinks, because the Humphries Depositions will be concluded, and the stage will be set for the trial. On July 12th is the next status conference, and trial dates will be set.
HLNT is about to pop in multiple ways, and those who have been patient and truly believed in HLNT will be greatly rewarded for that patience. Jason can continue to revise his estimates upwards as the summer passes, and he won't be far off base. But here's to you, Casa, and Chad, a raised glass to honor your accomplishments and the work that you must continue to do. And to the numerous others who have committed their time and efforts to raise the praise for HLNT, and to the silent long's who are now resurfacing to let their excitement be known, and to the new investors in HLNT who are now finding out that they have made a good decision to invest here.
HLNT/NIR/Ribotsky/Humphries/Walters/PWC Lawsuits Update 06/19/2012:
Was away 4 days at a funeral, but have gotten caught up on reading postings and reviewing legal updates.
Between June 13th and today, a lot has happened on the Walters/Monarch Bay lawsuit filed in Texas. Documents #25 and #26 were filed by Walters Texas Attorney, but the court clerk noted a defect in the filing, so the Judge issued an order to correct the defect. Apparently, even after issuing specific instructions in January on how to approach filings, evidentiary rules and the like, Walters Attorneys didn't follow the directions, signing the name of the Law Firm, rather than the specific attorney representing Walters and Monarch Bay. The Judge was not happy with this, as evidenced by his use of Bold Face type in his order (document # 27):
"The documents are signed by a law firm, not an individual attorney. See page 6 of the court's order in this action on January 12, 2012. See also Pavelic & LeFlore v. Marvel Entm't Group, 493 U.S. 120, 125-126(1989)."
Needless to say, the documents were refiled as #28 and #29. Monarch Bay (Walters, essentially) filed a motion to Compel HLNT to completely answer Interrogatories and complete the Discovery Requests made by Monarch. Upon reading the discovery requests that Monarch Bay claims that HLNT did not answer properly, it is clear that Walters is still trying to play games in that court. As far as the interrogatories are concerned, Walters attorneys have stopped just short of requesting HLNT tell Walters how to beat HLNT in this case.
In response to Monarch Bay's Motion, the Judge issued the following order (allowing for Walters games playing, and allowing that there may be some things that HLNT could have done better) in document #30:
"Now pending is the motion of plaintiff, Monarch Bay Capital Group, LLC, to compel discovery responses of defendant, Highline Technical Innovations, Inc. f/k/a Systems Evolutions, Inc. Plaintiff seed to compel defendant to produce documents and to fully respond to plaintiff's requests for production and to interrogatories.
Having now considered the motion to compel, the court concluded that it should be held in abeyance to allow the parties a final opportunity to settle their discovery dispute before seeking any further involvement from the court. Therefore,
The court ORDERS that it will hold plaintiff's motion to compel in abeyance to allow the parties an opportunity to settle their discovery dispute, and that the parties, through their respective counsel, shall meet face-to-face for that purpose on or before June 29th, 2012.
The court further ORDERS that, thereafter, plaintiff shall be allowed to withdraw any discovery requests that it has concluded are inappropriate by delivery of a written notice of such withdrawal no later than July 6, 2012. If appropriate, defendant shall supplement its discovery responses by delivering same to plaintiff, through its attorney, by July 11, 2012. Thereafter, plaintiff may reurge its motion to compel by filing an appropriate document with the court. If the court finds that the defendant has wholly or partially failed to respond to any discovery request and does not have a legitimate basis for failing to respond or refusing to provide documents, the court will order such sanctions as are appropriate. If the court finds that defendant has meritorious objections to plaintiff's discovery requests, the court will sanction plaintiff as appropriate for failing to withdraw such objectionable requests."
In other actions before this court, in documents #31 through #32, HLNT's attorneys have filed for a motion seeking permission to file a "Third Party Complaint" (Counterclaim) against Walters and Humphries in the Texas Case.
Document #33 gives the Judges order pertaining to HLNT's filing:
"Now pending is the motion of defendant, Highline Technical Innovations, Inc. f/k/a Systems Evolutions, Inc., for leave to file third-party complaint. Plaintiff Monarch Bay Capital Group, LLC, opposes the motion. Accordingly, the court concludes that if would benefit from an expidited response by plaintiff to the motion. Therefore,
The cour ORDERS that plaintiff by June 26, 2012, file its response to defendant's above described motion."
Interpretations:
The Judge in the Texas case is older and certainly more experienced. He is not going to accept the games that Walters has played in the New York Case, and the Judge is very much aware of that case as well. He will require that both parties toe the line, a line that has been drawn in concrete, not sand. While Walters has been able to manipulate the legal systems somewhat, with this filing of the Texas case as a way to drain HLNT's income, it has now come to work against him. The Judge is giving the minimal time frames in which to accomplish filings and responses, which will put extra pressure on Walters and his attorneys. Nor will Walters be able to prevent one court from knowing what the other court knows, as he will have to face a second deposition for the Texas case (Unless he agrees to a deposition that covers both cases. Such an agreement would be beneficial to Walters, as that would help to keep him from making statements in one deposition that would be contradicted later on in another.). But Walters is running his own show and will have his attorneys do whatever he thinks he can get away with. His problem, like Humphries, he doesn't understand the legal system when things or issues get beyond his ability to control or manipulate them. He, like Humphries, has made things worse for himself, and not better.
Other Issues:
Walters depositions in the New York Case are due to be conducted this Thursday and Friday. Will be interesting. PD says that HLNT doesn't want these depositions, or the ones with Humphries especially. But then, that is what PD says. PWC will be watching these depositions very carefully. Any adverse testimony will affect their ability to win the New York case, and make it more difficult to ressurect the 'In Pari Delicto' defense, as it does not cover fraud.
The opinions expressed herein are my own and each investor should conduct their own due diligence and make their own investment decisions appropriately.
Todays action shows new investors coming into the HLNT membership. From a long's perspective, a slow and steady climb is the real power behind the growth in the PPS for a stock. This allows the Bid support to closely follow the PPS, unlike a "breakout" in which the PPS will jump until Bid support fizzles (Which when that happens, new investors will stay away because they don't want to be caught with the "high" purchase of the break out, with the bottom falling out from under them, and the belief that it has made a run, so like most pink stocks, it will not do anything else for a couple of months.). In a steady climb, new investors feel confident that they are participating in a trend that will allow them to earn a return without fear of making a bad investment. While this may be in opposition to the thinking of many here on this board, a close today in the upper 40's or better yet, the lower 50's will do a lot for this stock in maintaining the upward trend and the momentum that has been established. Another good thing about a slow and steady climb is the lesser incidence of a deep retrace, or any retrace. It also makes it much harder for the PPS to be manipulated. Let it run today, but don't overrun it.
HLNT/NIR/Ribotsky/Humphries/Walters/PWC Lawsuits Update 06/13/2012:
As rdsd pointed out earlier today, Judge Kornreich set a hearing date for Walters Attorneys request to be removed as Walters Counsel. The date of the hearing is the 26th of June. Note that the dates of Walters and Companies Depositions are the 21st and 22nd of June. Pretty evident what the judges intention is with the date she set for the hearing.
8 days till Walters Deposition!
Simply said, Mel has connections with some of the local transportation firms in and around Arkansas, including OTR and Waterways.
HLNT/NIR/Ribotsky/Humphries/Walters/PWC Lawsuits Update 06/12/2018:
Lawyers for HLNT filed a "complaint" in the current Humphries Bankruptcy case on Friday, June 8th. For those who are interested, the documents can be viewed on the PACER system at www.pacer.gov . The case is in the United States Bankruptcy Court, Eastern Division of Texas, the case number is 12-40634, and the document of note is #35. A similar complaint was filed in the previous Humphries Bankruptcy case, but the case was dismissed due to a technical problem with Humprhies filing of that case.
For those that remember, Humphries filed the current case and sought the automatic stay, but when he discovered that he was not eligible for an automatic stay, he sought to have the court impose a stay anyway. The court denied his request.
The following is a quote from the complaint:
"WHEREFORE, PREMISES CONSIDERED, Plaintiff Highline Technical Innovations, Inc. f/k/a Systems Evolution respectfully prays that Defendant Steven Humphries be cited to appear herein and that, upon final hearing, the Court render all debts owing to Plaintiff including those which is ordered in the aforementioned New York litigation nondischargeable pursuant to Section 523(a)(s)(A) of the Bankruptcy Code and enter judgment in favor of plaintiff and against Defendant for attorneys' fees, costs of suit and such other relief as the Court may find just and equitable."
No date has been set yet for the hearing.
Because of the upcoming Depositions of Humphries and Walters, I will not give any interpretation at this point, since interested parties read this site.
There has been no update on the Walters case in Texas at this time.
Enjoy the drama.
One step at a time.
For those who wonder about Scott's new company, it is a residential property owned by Roy Bynum in Sasche, Texas.
For those who wonder about Barger Tech, it is registered in Ohio as being in Arlington, as an LLC. But the address is actually a farm owned by one Timothy Fellrath.
All these things are so very curious.
Exactly, and here is the link that give Webbers presence:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=72552741
Notice the names of the first two directors, and then the president (Webber).
Thanks, I actually got to link from the ECMH board as well and went into it to look. It is interesting to note that Scott Webber is the President of that company as well, the same Scott from the old (or still languishing) ECMH. Sounds like PWC should be all over this.
Just been watching what is going on from a day to day basis. It is interesting to see the rise and fall of sentiments by many of the posters here as the PPS rises and falls. What is certain is that HLNT is progressing steadily irrespective to the trading and the PPS that is going on. While some may view this as not being shareholder friendly because the company is not providing them the big PR to cause the super run of the PPS, those who are seriously long have seen the beginning of the increase in the value of their positions. The others? Let em bitch, they get to go along for the free ride, and they can concern themselves with timing or mistiming the ups and downs of the PPS. And they can criticize the company all they want just because HLNT hasn't done what they, as shareholders and investors, feel it should have today, I mean yesterday, I mean last week, no, last month, oh to heck with it, years before HLNT was even thought of.
On the Lawsuits, everyone would like to see them go away, even PWC, NIR, et al, and especially HLNT and shareholders. Having said that, which is simple, it is not so simple to put that desire into action. No one here or anywhere else have ever questioned the legitimacy of the DLAD Notes or the original HLNT notes. NIR (and through them, PWC) are operating on the principle and belief that the Asset Transfer Agreemnent was valid, which is being questioned in court, because the outcome of that questioning is going to determine who is responsible for about $10 million worth of notes and unpaid interest of the DLAD notes. PD likes to claim that HLNT has lost, and that HLNT is under foreclosure. The case hasn't even gone to trial yet, so his claims have no merit. HLNT has documented evidence on the wrong doing involved and the fraud that was participated in, but is seeking further evidence to insure that HLNT's Counter Claims case is won outright. Currently, the case is still ongoing, and at last the long anticated Depositions are being forced upon Walters and Humphries (no, PD, it is not HLNT that doesn't want them despite your claims on that issue as well). While the judge has been taking the 'high road', not putting one side above the other, she too has reached the point where she will not tolerate any more shananigans on the parts of Walters and Humphries. They either comply, or they face sanctions.
Walters has become the key of the moment in this charade. He stands to be hurt really badly, both for himself and for his wife's political career, if he should have to testify (and pleading the 5th is not going to help him at all). There could be some last minute attempt by Walters to try to settle with HLNT, hoping to avoid a Deposition (which seems to have been his aim all along), but it would have to be a really good deal for HLNT. (Like, he pays the HLNT notes that were transfered to Monarch Bay in the Asset Transfer agreement, which would only be fair, since he transferred the assets of HLNT to Monarch before Humphries brought in the bogus computer software asset, and has gotten the benefit of the revenues from that transfer to Monarch, unless he is willing to transfer the assets back to HLNT, along with the revenues. Also, he would have to pay HLNT's legal fess for the Texas Case and a proportionate amount for the New York Case. And he drops the Texas Case, including his note claims, which are still related to the Asset Transfer Fraud.) It could happen.
As to settling with NIR (PWC, or those 'independant Funds'), HLNT already has enough evidence to show in court that there was no real Transfer of Assets, and that therefore that part of the Asset Transfer Agreement is invalid, even if a jury doesn't accept the fraud premise. PWC doesn't want to give an inch, so they are going to run the case into the ground, they have already lost money on NIR, why worry about losing any potential award against HLNT (unless they should become a party to the suit), and the Investors for NIR are going to get hurt by PWC unless PWC (NIR) can prevail completely, cause PWC is going to continue charging NIR (which can't pay its bills) for being the trustee for NIR anyway. Realistically, unless PWC becomes a party to the suit and stands to lose far more than its fees its charging, they have no real motivation to settle for anything less than the full amount specified in the original suit. And to the NIR investors, if NIR loses, PWC's response will be "Sorry, but we really thought that the case was valid. Now there is even less for you to get back from your NIR investment, but please pay us our fees for our efforts."
So, in summary, PWC has no incentive to settle. HNLT, and every investor or shareholder knows that to settle on PWCs (NIRs) terms would be extremely damaging (At this time, but if the Stock PPS were to hit $.15 or above, the NIR suit would be a nuisance and would really wouldn't impact HLNT that much.). Therefore, other than winning the court case, or the PPS being as described, HLNT has no incentive to settle on PWC's terms.
But things can change very quickly here in the next 30 days, and should, both in the court cases and in the PPS, that could change the outlooks on the possibility of a settlement. Just keep your eyes open and listen carefully!
The opinions expressed herein are my own and every investor should conduct their own due diligence and make their own investment decisions accordingly.
How very interesting, the link that was provided is no longer accessible. Looks like someone wants to keep it a secret. PD, do you have any information on this?
Not a big wall, but a wall considering the volume of trading going on today. Shorters are using it to dampen and stop an upwards break out for the day. That will change next week.
Interesting that the Shorters are trying to walk the PPS down today, as the "wall" has been dropped to 35 now. Wonder what they are worried about next week?
Wrong again. When HLNT does show the revenues, the NIR suit will become a fading memory.
Bluebird, the case can go on for another year or more, pending any appeals (of which two are already pending). What I have learned of the Appeals process, by the way, from a court clerk for the case, is that the appeals can take up to 9 months to be heard, so that puts the appeals hearings into January of next year.
That is what makes it a better decision for HLNT to focus on the business at hand and let the attorneys fight it out. The higher the PPS the less worry there is about NIR.
Sorry, don't have that information.
Yes, most likely next week.
Yes to your questions. And yes, I think HLNT will go for the best resolution possible, including the best favorable terms of a settlement.
See a Short Wall built at 38. They picked the wrong stock and the wrong time to go on a shorting run. But who can blame them. In the past, HLNT has shown a pattern of one PR and silence. This was what the Short Interests were counting on this time also. Betcha that they are pretty nervouse about now with the information that has been uncovered. Let's see how prudent their gamble has been in the next 7 days.
HLNT/NIR/Ribotsky/Humphries/Walters/PWC Lawsuits Update 06/01/2012:
These decisions were what I expected yesterday, should have waited one more day to post my analysis. Judge Kornreich dismissed the Orders to Show Cause with a nonchalant air, saying that they had been resolved in the Status Conference hearing. The Judge is trying to keep a lid on the case so that it doesn't become explosive, even though in her own words she stated in October of 2011 that fraud permeated the whole case. It is clear that the Judge considers HLNT, Walters and Humphries to be playground kids involved in a childish spat that she is resolving. However, she has been forced to set down the law, literally, for Humphries and Walters, so that they will stop playing their games.
The biggest question to be answered is how this affects NIR/PWC and what it means for HLNT. Had HLNT not agressively fought this fraud in court, it would have wound up like a company that PWC is currently testing the waters with, EPGL. Current management would have been changed, a new product would have been brought into the deal, the Stock would have been R/Sed, with NIR diluting the post R/S so heavily that HLNT (or its predecessor) would have been killed in the 'cellar' of .0001 trading (as had been predicted, but wrongly, by other posters on this board). As far as the legal fees paid so far by HLNT, they have been worth it from the appearances of where HLNT is about to go business wise (which would not have been the case if the company and current management not believed in the value of HLNT and worked so hard to bring it to success).
Fighting the Fraud caused NIR and Ribotsky additional problems that Ribotsky never anticipated. That one of his funded companies would stand up for itself and catch him in the process of wrongdoing.
PWC has practically admitted that Ribotsky has committed the wrong doing by attempting to continue to use the legal maneuver of 'In Pari Dilecto', as seen by their appeal on that issue. Their intent is to argue at trial (which they will regardless of what the Judge has decided) that all the parties were involved in something and (as PWC's NIR's attorneys) will dance around the issue of the fraud, but will argue that the transfers of the notes were valid because NIR's Funds are 'innocent' of the wrong doing. However, at trial, it will be learned that even the 'innocent' NIR Funds cannot benefit from the fraud that was perpetrated on HLNT shareholders and HLNT itself (successor to SSEV) by the prior management of HLNT (as SSEV), especially since Ribotsky was a party to the fraud.
The case should go to trial by late summer at this point, 'should' being the operative word and dependant on Humphries and Walters testing the Judge's resolve in the matter of their Depositions, and other issues still to arise along the way. But the good thing is that investors are beginning to see that the case in the future will become more of an annoyance and will end up being a non issue as HLNT continues to grow. The higher the PPS of HLNT, the less of an impact any adverse resolution to the NIR case will be to HLNT. At a PPS of $.15 or higher, a loss of the suit, even at the worse case, becomes trivial. Right now, time is on the side of HLNT, and although this also means more attorneys fees, this will be looked back on as having been a necessity and endurable as a part of HLNT's success.
Will the case be settled? Only when PWC realizes that they can't even get a nuisance settlement from HLNT.
Will Walters, Humphries and Ribotsky be tried for Fraud? That is in the hands of the Feds, who have other irons in the fire, so to speak, with Ribotsky and Magnetar. Anything that helps the Feds put more pressure on Ribotsky to get him to testify against Magnetar and it managers will be used by the Feds to up their leverage over Ribotsky.
The opinions expressed herein are my own and investors should conduct their own due diligence and make their own investments decisions accordingly.
HLNT/NIR/Ribotsky/Humphries/Walters/PWC Lawsuits Update 05/31/2012:
Lots of stuff to discuss. The most important is the Judge's Status Conferene Order. As mentioned by rdsd, the Judge has given hard dates for the depositions and stated that failure to attend the depositions can result in Sanctions (Contempt of Court, which means fines and/or Jail time).
Interpretation (Walters):
Walters has been trying everything that he and his lawyers can come up with to try to avoid having to give a Deposition. From the very beginning, he played the game that if you can't serve me, you can't involve me in this case, which backfired on him when his attorney's filed in opposition to HLNT's motion to allow the case against NIR and Walters to continue without Humphries. That act also came back to bite Walters in the backside when his attorneys tried to have the case sent to Arbitration in California. So now he has a new issue, the acts of his attorneys in trying to get themselves dismissed from representing him in this case.
There are two camps of thought on this development. The first, taking the situation between Walters and his attorneys at face value, Walters not having paid them could have been due to the failure of his attorneys to find that "Magic Bullet" that would have freed him from any involvement in the New York case. Walters, used to getting his way, decided to not pay them because they were not performing as he thought they should. Why the time delay in getting paid? In the affirmations provided by Chang, the law firm that he is a member of cited their past relationship with Monarch Bay, and based upon that relationship, were willing to act as Walters counsel and cousel for his two businesses. Based upon that past trust, Chang's law firm was extending Walters credit for the time they spent in representing him. When Walters wouldn't commit to a Deposition date, things came to a head, and Shapiro and Chang (and firm) opted to divorce themselves from Walters and his entourage of companies to avoid having to experience sanctions along with Walters.
The second camp of thought is that Walters and attorneys decided to use this as a ploy to buy Walters more time, in the hopes of frustrating the Judge and HLNT into capitulation. At issue here is that Walters could have easily paid both attorneys their fee charges to date. What we don't know is how much he has paid them already (although for Shapiro, he evidently hasn't been paid a thing), but there was no mention from Chang's law firm of a total lack of payment. What is so interesting in this second scenario is that the amount of legal fees unpaid is above an apparent threshold that would allow Chang and firm to use such a method to get themselves removed from the case. And couple that with the timing in which this occurred and it certainly raises eyebrows in suspicion of some attempt to manipulate the legal system in Walters favor (which by the way is illegal). But fortunately for Waltes and attorneys, the Judge can't read their minds.
One last note at this point. Walters has submitted documents requested in discovery. The reason that this is certain is that HLNT's lawyers have not brought up this issue of a lack of production on the part of Walters. Unfortunately, we may never get to see those documents unless they are presented as evidence at trial. Still, something that Humphries and Ribotsky ought to be very concerned about. Their attorneys get to see them also.
Interpretation (Humphries):
Humphries has changed is tactics a little. While he is still claiming that he is representing himself 'Pro Se', he has been getting some legal advice and assistance, as evidenced by the use of Espinoza (Who by the way lives in the same town as Walters, is there a connection here, possibly?). Odd that Espinoza has not filed to represent Humphries in the New York case, though. Maybe he doesn't want to get embarrased again? But Humphries has told Judge Kornreich in his fiings that he is looking for an attorney to represent him in New York. Wonder if there will be another attorney from Walters home town to step up for Humphries in New York? Ah, but I digress.
For all that he has been exposed to the legal system, Humphries does not understand it. Never mind his repeatedly failed attempts to get a stay against the case in New York by filing Bankruptcy. Now he has filed his response to the demand for discovery stating that he doesn't have to give them (HLNT's attorneys) anything because it comes under attorney/client privaledge (sorry, Humphries, that would apply only to communications, oral or written, between yourself and your attorney [whoever that may be at this point] that were not otherwise public record), or that the FBI and/or SEC has them and he can't get them back (cross his heart, he tried [no, seriously, he really, really tried - l&l&l&l&lol], oh yeah, a slight discrepancy, in his response dated 03/31/2011, he states "Subject to the above objection without waiving same, Humphries believes that if any such documents exist they would have been provided to the SEC under a Subpoena. Those documents are no longer in Humphries possession or control." yet in his response to the Order to Show Cause, dated 05/30/2012, he states "Humphries later disclosed that he had provided all documentation, several boxes, to governmental agencies.". The one thing that is consistent about Humphries is his inconsistancy.) Funny thing about Humphries arguments, he has no documents, yet in his Bankruptcy Hearing, not more than two and a half months ago, he was able to present bank statements in his BK trial that belonged to Systems Evolution, when he was in control of it as the CEO, before any SEC subpoenas or FBI seizures. Humphries is about to learn a big lesson in what is subject to and required to be given by virtue of subpoena. He isn't going to like it, and he will have to provide the names and or offices of the governmental agencies to which he gave the documents as well (including those seized by the FBI), so that they can be obtained.
A time line could be constructed to show Humphries requests for delays (along with a deceptively written request for an extention to "prep and response to the production of docs" and other excuses to show how he has used the legal system to try and thwart the Demand for Documents in Discovery, including stating in April that he was going to seek an attorney in New York to represent him, but finally culminating in a repeat of his Response (filed in March of 2011) on the 30th of May.
Other Issues and What's Next:
Judge Kornreich may have been on vacation when Judge Kapnick signed the Orders to Show Cause against Walters and Humphries (Docuemnts 171 and 172 on the SCROLL system). Judge's will often sit in for other Judges. Order's to Show Cause are "actions" that are to be heard and decided on like Motions. What is interesting is that there was no indication that the Judge, Kornreich, decided in any way on the Orders, nor was the Order to Show Cause by Walters attorneys signed and subsequently dated for a hearing. By not making her decisions today, the Judge has indicated that there was enough reason (by confusion if nothing else) to give Walters and Humphries the benefit of doubt that the reasons that they were not deposed was due to among other things miscommunication. Essentially, this means that Chang and Shapiro are still Walters attorneys of record for the time being (and Walters, being a man of means, better pay his attorneys). It also means that the Judge is holding the Orders filed by HLNT's attorneys until after the depositions are completed. The dates of the Depositions that the Judge has set were agreeable to all parties, Walters through his attorneys who were present at the conference, and Humphries by his attorney Espinoza, who stated anytime after June 2nd. Now, the Depositions are fixed in stone, and if they should be missed, it had better be for good reason, and not some subterfuge or legal trickery, because those Orders to Show Cause can be implemented, and according to the Judge, will be implemented against Walters and Humphries.
There are other little issues in the filings that can be discussed but the basic message is no more game playing for Walters and Humprhies. Time to step up and be deposed or face the wrath of the court in the sting from the power of the Judge.
The opinions expressed herein are my own and every investor should conduct their own due diligence and make their own investment decisions accordingly.
The Status Conference is going on this morning, may even be finished by now, and the Orders to Show Cause for Humphries and Walters were also to be heard. Interesting note, the Orders were signed by a different Judge, other than Kornreich. Also, the Judge is listening to Walter's soon to be ex-attorneys as to why they really want off of Walters case.
One might think, and incorrectly so, that PWC is loving this. But in truth, PWC knows that the notes were transferred in fraud. They are really hoping for a way around the fraud issue, hoping that it can be averted. Without that something 'concrete', they know that their case is doomed.
Looking forwards to the rulings on the Orders to Show Cause, and the Judges remarks on the Status Conference. Someone, or someones may be really scorched here.
Assets, they are not longs, just flippers pretending to be longs because they took a position and then chose to stay with it since it didn't give them instant wealth. They don't really want to hold, but are too afraid to get out cause they might miss the real growth, and not a pumped up one day run.
During the time that the work was being done on the JV, a lot of work was also being done on making contact with the "Contacts", exposing them to the Wildcat and what it would do for them.
It was noted that 'what goes up comes down', which was to be expected after the Momo crowd got involved, but it should also be noted that 'what went up didn't go back to .0020 where it had been for a long time'.
So Wrigley Dog, soon there will be more good news, and like the longs here, you get to go for the same ride, if you can stand being patient and holding in there. And for Swarmmaster, in the last month, either you have made money (on paper) or covered some of your losses (on paper) by having held, so feel free to criticize the company that is making you money.
Sorry, Gene, it is not even old news, just repetative speculation about something that the company, like any other company, is not going to publicize, and doesn't need too. Rather unrealistic viewpoint, believing that someone outside of the company has to see a document in order for it to be real. Not very knowledgeable about business.
I've read it rdsd, and although I'm waiting until Friday to discuss the case because of all the filings, I will say this. Humphries is going to learn that the New York Judge isn't going to treat him any nicer than the Texas Judge in his Bankruptcy. His filing today is not going to remove the Order to Show Cause for tomorrow either.
Interesting activity today with the Short Walk down. The further they push the PPS down, the more support they get from those who bought in yesterday from the Pump by the Momo crowd. Currently, the Short Interests are looking for the 'buy resistance' level where they will turn and start buying back in to cover their short positions. That is why I prefer to see steady growth rather than a sudden jump. The sudden jump pattern is a lightning rod for shorters, who are always looking for such patterns in the pinks cause they know after a major upswing, there will be a fall in the PPS and that they can take advantage of it. I doubt that the PPS will fall below .0035 as that seems to be the current bid resistance point, and I have added my buy support at that level too. May have to chase it up some when the shorters start their buying later today.
Just got back from camping, had to catch up on a lot of reading here. That was wonderful.
Also seems that we had some court activity. Haven't been through it enough to comment on it yet, except that clearly, it isn't HLNT who is running from the Depo's. I think that enough proof has been posted that HLNT isn't the one who is afraid of having these guys give testimony. But one can only imagine why these two have tried so hard to avoid giving testimony, and Humphries to avoid providing discovery documents? Do we hear criminal charges for these two in the not so distant future?
Have a strong impression that Chad will be releasing the information flood soon. This week is already interesting and hasn't officially started, marketwise, yet.
CASA, as you may remember, through you, I spoke to Bill last September. It was an hour long conversation, and I can attest that he knows what he is doing. The contacts that he has are real and his understaning of the OTR industry is solid. While some of the investors have not been as fortunate to get to know all of what is going on, they are going to be fortunate that their future gains are going to be carried on the backs of those doing the work. They don't have to be appreciative, and thankfully, the criticisms that they levy will not stop HLNT from making it a very successful year. Thanks CASA for all that you have done, and a very good job indeed.
We are all looking into HLNT from the outside, and we don't get to see the whole picture, and because of that we will each often make the mistake of confusing the picture of what is going on. The company doesn't have to give out every little detail, and in my talks with Chad, I have advised him to tell it after it happens so that there can be no glitches and need of retractions. What you are seeing is the culmination of a good 8 months of work, and there is more to come.
Becareful what you say. This last week, I told Chad that I didn't think that he was being aggressive enough, I see that I was wrong, so to Chad this public apology. He has done a very good job, so let's be thankful that the PPS is where it is now, and enjoy the climb from here. And yes, critics, you get to go with us too.
Camping time, see ya Monday.
Good find, Once! The more we know as investors, the better off we are!
The PR states that the Preferred Shares were reduced, so the assumption would be that the Preferreds have been returned to the company and were not reissued to any one else.
The outstanding Preferred on the last Financials was 83,945,578, so with the reduction of 31,952,500, the PS should be 51,993,078 for the next financial statement. Just a note, it does not say that they were retired, just that the PS were reduced.
Obviously, Common Stock has not been issued, or we would have heard about an increase in the A/S, since 319,525,000 CS would put us over the A/S limit.
How they were paid was not stated, but at this momemt, we know how they were not paid.
Not all companies are incorporated or established in the state of original incorporation. Take HLNT for instance, Incoporated in Idaho, but a foreign corporation in Arkansas where it's home office is.
So, this was found under the Delaware SoS:
https://delecorp.delaware.gov/tin/controller
Incorporation Date: 04/12/2012.
I expect that they will soon be registered in Florida as well.
Hearday!
The PWC issue, "They are not backing off" - opinion. "This will go south in seconds" - opinion.
IN looking at the History of the chart, to say that it has been driven to the .0032 level may be reasonably inferred, but there are many reasons that these peaks happened, and I doubt that anyone here really knows all the details behind those runs. To make a blanket statement that it is happening here as a factual statement is incorrect, while it can be inferred to be similar, there are too many indications that it is not the same, just the PR itself in a big indication that it is different.
It is an interesting issue that certain posters look backwards and believe that the recent activity is nothing more than a reflection of the past. They have every right to believe what they want. But the other posters and readers on this board are equally free to believe the opposite.
That is an interesting opinion, but it is nothing more than an opinion, based upon hearsay. I'll stick with my own opinion, that HLNT is actually doing something, and that it will result in further increases in the PPS. I do suspect that HLNT will be releasing more information next week, and should they do so, you are free to revise your opinion. Or stick with your current beliefs.
I'm sure that anyone who is shorting or wants to short this stock would love that your concerns be valid. Those who really believed in the company have seen their holdings increase in value here recently, and expect that trend to continue, regardless of any historical "short" comings in the past. You are free to buy and sell just like any other investor, and to base it upon your own due diligence. Good Job!!!
Good point, Lajet.
I will be gone camping this weekend, no cell service, no internet, nothing but peaceful bliss. But before I go....
A little clarity for those who have not been happy with todays PR. It was mentioned in the February News Letter that work was being done on a partnership. Now, here it is. Except for what Chad has alluded to about this partnerhip, when he hasn't had to explain and answer a lot of questions, he has still followed the strategy of reporting things after they have been completed. That is something that should be thought about over the weekend, because what else was Chad and company working on that has yet to be reported? The idea that work starts with the new JV once it has been announced is very nieve at the best. Looking forward to what else Chad has to say soon.
Another interesting issue. Chad has indirectly answered some of the questions presented to him by Swarmmaster. A big answer on the status of the preferred stock.
All of you have a good weekend, and puzzle about what is going to be happening next!!!