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Maybe the lender, instead of stupidly being stuck with 500K shares about to head south on the reverse split (RS) train decided to go short, use those shares as collateral, cover after everbody else piles on to the short play (big volume). Eventually the feeding frenzy ends and the share price rebounds so lender banks the profit.
These are the ways the rich get richer. There was no upside risk in putting this short on.
He ought to be a quadrillionaire by now if batting .9 as you say ... with absolutely no need to sell monthly subscriptions.
Made what he's made mostly by shorting the dreams of pennystock holders or so he himself says.
probably get hung out to dry again ...
and we all have great faith in what he says, right?
No, no agenda. Good Luck
Shorts win these "battles" a huge percentage of the time and no squeeze ever happens (usually). We're talking about hedge fund managers and short shops here. They know what they are doing. I'm just a little guy like you. We're outgunned.
Admittedly I'm out of thhe stock. I also think PLPE, when it establishes a lower base price is a better deal than BSGC.
Headlines
Nasdaq ’Threshold’ Securities for Feb. 8at Bloomberg(Tue, Feb 8)BigString Corporation UpdateBusiness Wire(Tue, Feb 8)Nasdaq ’Threshold’ Securities for Feb. 7at Bloomberg(Mon, Feb 7)BigString Corporation Indicates Corporation UpdateMarketwire(Mon, Feb 7)Nasdaq ’Threshold’ Securities for Feb. 4at Bloomberg(Mon, Feb 7)BIGSTRING CORP Files SEC form 8-K, Entry into a Material Definitive Agreement, Completion of Acquisition or DispositiEDGAR Online(Fri, Feb 4)Nasdaq ’Threshold’ Securities for Feb. 3at Bloomberg(Fri, Feb 4)Nasdaq ’Threshold’ Securities for Feb. 2at Bloomberg(Thu, Feb 3)BIGSTRING CORP FinancialsEDGAR Online Financials(Wed, Feb 2)Nasdaq ’Threshold’ Securities for Feb. 1at Bloomberg(Wed, Feb 2)
$1,150,000 of convertible notes remain outstanding and probably at the exercise price of $.015 which could mean more than 75M shares still to come in dilution. But maybe not; on the bright side BSGC could sell 1M - 2M shares of PLPE and be free of these loan sharks. But I doubt they'll want to do any selling much as that would take down the price of PLPE. PLPE is BSGC management's ticket because they gave themselves 2.5M shares each [7.5M total] and also stock options in PLPE ... about 1.2M exercisable at 20 cents.
BSGC has staved off creditors but otherwise gotten nothing from the IPO but a big pump and dump. So far anyway. Things could improve if PLPE prospers and BSGC begins to show some profit or is merged back with PLPE as some have suggested.
You are absolutely right about the info still being on Yahoo if you input BSGC.pk and I stand corrected about that. I didn't think to try that. Sorry, my bad. On Big Charts though it show no futher prices beyond Jan 28, the day BSGC was moved to the pink sheets so no bad there.
I really should not trade the pinkies or OTC stocks either. Too many variables and downside surprises, at least for this individual, so I'll take your advice and stay away from this one too.
You could be right, I don't watch pink sheet stocks so I defer to you and whatever you may find out. Right now I know Yahoo Finance stopped supplying any kind of further info on them. (you can still see the old SEC filings but no News, no Profile etc etc) Other traditional sources probably dropping them too. Can't pull up a recent chart on BSGC on Big Charts any more. Only those that are conversant in penny stocks will find anything out I'm thinking.
I'll be perfectly honest. I agree with you about walking away. I sold my shares today at a very minimal profit- live and learn, I could have had a triple on IPO day but I got greedy. I didn't know then what I now know about this company. I wish I'd done my DD before but I too got caught up in the hoopla of the IPO. I was also a bit lazy.
The things I turned up were surprising. I surely didn't expect management to let BSGC to be booted into relative obscurity on the pink sheets right after the IPO. They could at least have waited and given the annual report but no, too much trouble I guess.
No sour grapes, this is pretty much how the managers of all these penny stocks behave. I decided to post what I discovered; like I said I wish someone had posted this kind of info for example on the Yahoo board which I did follow, might have alerted me to what was sure to come. I might return to trade this stock again some time. Good Luck trading.
You said: "Most of the notes are not convertible yet". But the reality is the notes are convertible anytime after they are issued. They don't mature right away but that is a different subject. These are convertible debt instruments. When they mature that means the full amount owed is due, plus 6% or whatever interest. It is the best of both worlds for the issuer, unless the borrower goes bankrupt. While the debt is outstanding, they are getting a rate of return equal to the interest rate charged. If the lender chooses to convert them into shares, they can sell them for a profit if the marketprice is better than 1.5 cents.
As of Sept. 30, 2010 about $979,000 of convertible notes were still outstanding representing a future supply of about 65M shares. We don't know how much of this overhang remains; there have been two periods of heavy selling since Sept. and this last one around the IPO was spectacular.
Maybe only 25 million shares worth of convertible notes remain to be dumped onto the market. We'll never easily find out BECAUSE BSGC IS NO LONGER A REPORTING COMPANY. It is a pink sheet stock now. Your big three officers gave themselves a huge number of shares in People String, the spun off company. They together own almost as many shares in PLPE as Big String itself does. [7.5M vs 10M shares]. All their efforts will go to protecting their cash cow, which is PLPE. They don't care about BSGC any more as evidenced by letting it get delisted from the OTC board. Congratulations on making themselves sure fire millionaires on the backs of BSGC shareholders though...
Unless PLPE can stay up at 80 cents or more BSGC won't get that much value out of their 10M share stake. The outstanding share count should be over 120,000,000 by now; soon it will be diluted much more by the convertibiles.
Short sellers are always waiting on the sidelines to join in the fun whenever there is a pop because they know the convertible note holders will be converting and selling. That's their insurance policy. As a Long, what is your insurance policy? Nothing.
On June 23, 2009, BigString entered into a Subscription Agreement with Whalehaven Capital Fund Limited, Alpha Capital Anstalt and Excalibur Special Opportunities LP (collectively, the “2009 Subscribers”), pursuant to which the 2009 Subscribers purchased convertible notes in the aggregate principal amount of $180,000, which notes are convertible into shares of BigString’s common stock, and warrants to purchase up to 6,000,000 shares of BigString's common stock, resulting in net proceeds of approximately $146,500 after transaction fees of approximately $33,500.
Each convertible note has a term of two years and accrues interest at a rate of 6% annually. The holder of a convertible note shall have the right from and after the issuance thereof until such time as the convertible note is fully paid, to convert any outstanding and unpaid principal portion thereof into shares of common stock at a conversion price of $0.015 per share, as adjusted. The conversion price and number and kind of shares to be issued upon conversion of the convertible notes are subject to adjustment from time to time. The warrants have an exercise price of $0.015 per share, as adjusted. The number of shares of common stock underlying each warrant and the exercise price are subject to certain adjustments.
…As a result of this financing, the conversion price for the outstanding convertible notes and the exercise price underlying the warrants previously issued by BigString in February 2008 and May 2007 and the conversion price of the shares of outstanding Series A Preferred Stock were subject to adjustment…
September 30, 2010 December 31, 2009
Convertible note, May 1, 2007, maturing May 1, 2010 $ 327,500 $ 558,250
Beneficial conversion feature - (51,692 )
Note Discount - (2,425 )
327,500 504,133
Convertible note, February 29, 2008, maturing February 28, 2011 $ 594,076 $ 681,819
Beneficial conversion feature (22,003 ) (70,705 )
Note Discount (8,979 ) (28,855 )
563,094 582,259
Convertible note, June 23, 2009, maturing June 23, 2011 $ 150,000 $ 180,000
Beneficial conversion feature (50,944 ) (119,000 )
Note Discount (10,611 ) (24,786 )
88,445 36,214
$ 979,039 $ 1,122,606
Plenty of sellers left. Easy money flipping shares acquired with warrants priced at $.015.
All the convertible debt BSGC had issued to stay afloat and develop People String is probably still hitting the market. These instruments convert at $.015 and there was a shitload of them. Divide $.015 into the @$700,000 they got for corporate purposes last time they issued convertible warrants. How many shares do you get? I got 46,666,000 shares. That is a big overhang of shares that are quite profitable for Whalen Capital and the other lenders of last resort involved, even in the 2 - 2.5 cent range.
The thing to note is that they dumped these shares, crushing the rally at 6 cents and smacking the stock price back down to 2 cents. They obviously don't have any great faith in BSGC or PLPE for that matter. They are not hoping for higher prices like some posters here.
There are naked short sellers to contend with, adding to the bad karma. BSGC is clearly on the Nasdaq threshold list of stocks which is not a good thing. Google it and see for yourself.
Also, BSGC is no longer a reporting company. It was removed from the OTC for failure to comply with SEC reporting requirements. Management doesn't seem to care. In the process of creating People String, 3 BSGC officers awarded themselves 2,500,000 shares each of PLPE and also have 1.2 million stock options they gave themselves convertible at $.20 at different times throughout 2011, can you say... pretty sweet deal? But that's not a BSGC issue; maybe for PLPE though.
Management seems to be focusing on PLPE not BSGC. PLPE currently a reporting company vs. BSGC, not worth the effort, time and money to keep up with the SEC reporting requirements = bad sign for investors and convertible debenture holders alike. If I'd known they were going to be dumped onto the pinkies on Jan. 28 right affter the PLPE IPO I would have been selling my shares at 6 cents, 5 cents etc. on IPO day. Nice timing BSGC "stewards"!
Maybe that's why the selling continues. I suppose. Do your own DD. Find out what you can in the present from existing SEC filings because going forward as a pink sheet stock means there won't be much if any financial info available anywhere any more.
Good luck trading this discarded old rubber of a stock.
BSGC is not trading right?
Earlier poster said it was delisted right?
The link posted led to this table:
SECURITY DELETIONS
Dl Date Symbol Company Name Effective Date/Comments
1/27/2011 HRMJ Hermes Jets, Inc. Common 1/27/2011 Failure to comply with Rule 15c2-11
1/27/2011 ISCR instaCare Corp. Common Stock 1/27/2011 Failure to comply with Rule 15c2-11
1/28/2011 ARTS Artfest International, Inc. Common Stock NEW 1/28/2011 Failure to comply with Rule 15c2-11; Added to NBB (ARTS)**
1/28/2011 BSGC BigString Corporation Common Stock 1/28/2011 Failure to comply with Rule 15c2-11; Added to NBB (BSGC)**
Isn't it nice no one is concerned about this? Now BSGC is a pink sheet stock?
SIMPLY TIMMY
IN HIS OWN WORDS:
http://www.investimonials.com/forums/recommended-brokers-for-shorting-penny-stocks-yes-its-legal--a-good-niche-strategy.aspx
I get this question sooooo much, it's time I had my own forum post about it...because I short sell hard-to-borrow penny stocks. Yes, it's legal, you can short stocks under $10, under $5, under $3, even under $1 (although I hate shorting stocks under $1/share due to upside risk)...just gotta find brokers that have shares to short.
I know this is a strange strategy to many people, but its help me turn $12k into $2 million in 4 years (1999-2002), become the #1 ranked short bias hedge fund (2003-2006) and now the #1 ranked trader out of 40,000+ on Covestor (2007-2009)...learn the strategy at http://www.timothysykes.com
I use and recommend Thinkorswim (I'm also an affiliate because I love em the most out of any broker...they had shares to short of true carcass companies (whose stocks surged due to promotional mailers and emails being sent out) like AENY &EMGE and their customer service is tops. I also use Interactive Brokers & Sogotrade
http://www.investimonials.com/brokers/reviews-thinkorswim.aspx
http://www.investimonials.com/brokers/reviews-sogotrade.aspx
http://www.investimonials.com/brokers/reviews-interactive-brokers.aspx
as they sometimes have shares to short of these stocks too, but both customer services aren't up to Thinkorswim standards...and as I write this, I am not their affiliates because neither of them will even get back to me about joining their affiliate programs!
Great, you are a man of action! I hope your other contacts do the same, it's in THEIR best interest.
Well if at least 10 of the whiners here (not referring to you) would take 5 minutes to file an email complaint about the naked short selling in this stock, maybe the SOBs would move on to greener pastures.
Just see my post # 1442 titled To enforcement@sec.gov , copy and paste into your own email program, add a couple words of your own if you're feeling talkative and send it. It is the LEAST you can do if you feel you've been had by the illegal shorts whoever they are.
Then POST what you sent here. Please. That would encourage others to do the same. Don't get angry, get even.
KUDOS for taking ACTION. I like the positive attitude, always the sign of a winner, not just whiner.
Can anyone give me the last reported number of shares reported as failure to deliver?
It is not enough just to know that BSGC is on the Nasdaq's big black eye Threshold List day after day. Used to be a non subscriber could see this data at nasdaq or finra or somewhere for free. Is it no longer possible to find the actual number of shares on these failures to deliver without subscribing?
Thanks
To enforcement@sec.gov
Good afternoon,
Bigstring Corp. (BSGC) shows up on the NASDAQ list of “threshold securities”. There are more than 1M shares that have failed to deliver. That is more than the 90 day average daily trading volume for this stock! It is shocking that brokers and dealers can still get away with this kind of anti-investor manipulation. I understand that it is illegal. Please investigate the trading in this stock and (especially) if it is management or any of their partners, take the necessary enforcement action.
I am a long term holder of BSGC, otherwise I would not be filing this complaint.
Sincere thanks,
It did not take me any longer than any other post to this board takes. Try it, you'll feel much better.
You did post that link and TY for it. I will write my complaint to enforcement@sec.gov as soon as I finish this post. Writing to Darin won't do much good but no harm done either so TY again.
Everybody should take a few minutes to complain to the SEC. Naked short sellers have loophole documents they can file with the SEC so you must put the pressure on. Get your frustration off your chest in a way that counts.
That is correct: perfect storm for Sykes and/or his ilk. If you are a shareholder and are dumping at this level out of frustration, you just played into shorties hand.
Why not speed up the process, put the pressure on those illegal shorts?
If you don't know what naked short selling is, know that it is illegal, and causes what is know as failures to deliver (stock) and lands you on the Nasdaq list of so-called “threshold securities”, a nicer name for stocks sold short illegally. Look up naked short selling on Google. Check the Nasdaq list of “threshold securities”, published daily in compliance with the U.S. Securities and Exchange Commission’s Regulation SHO as reported on Bloomberg. You can find the link on Yahoo Finance under BSGC News. That is the kind of publicity we are getting. Thank you management, NOT!
BSGC has been on this blacklisted list for two days. The damage to the stock price is of course already done. The email to report this illegal activity is enforcement@sec.gov.
In the last 30 trading days more than 75 million shares were sold at prices from $.063 down to today’s low below 2 cents. A good portion of that selling was illegal naked short selling. I think the SEC winks at it but if enough people complain they will take a look at who is behind this illegal trading in BSGC.
Good luck getting Darin to see your point of view...a better strategy would be to report the naked shorting in BSGC to the SEC. If management and friends of management have done nothing wrong then they have nothing to fear and no harm done. A "wake up call" to let them all know we are not just grumbling here but taking action is in order.
Have you seen how "somebody" is smashing down the price of BSGC on purpose? Whose handiwork is this? We all know the CEO and other management figures are some of the largest shareholders in BSGC. They should be on the phone to the SEC complaining about the naked short selling. Are they? If not, why not? If you don't know what naked short selling is, know that it is illegal, and causes what is known as failures to deliver (stock) and lands you on the Nasdaq list of so-called “threshold securities”, a nicer name for stocks sold short illegally. Look up naked short selling on Google.
Here is to the link to the Nasdaq list of “threshold securities”, published daily in compliance with the U.S. Securities and Exchange Commission’s Regulation SHO as reported on Bloomberg.
http://www.bloomberg.com/news/2011-01-27/nasdaq-threshold-securities-for-jan-26-table-.html?cmpid=yhoo
BSGC has been on this blacklisted list for two days. The damage to the stock price is of course already done. The email to report this illegal activity is enforcement@sec.gov.
In the last 30 trading days more than 50 million shares were sold at prices from $.063 down to today’s low below 2 cents. A good portion of that selling was illegal naked short selling. I think the SEC winks at it but if enough people complain they will take a look at who is behind this illegal trading in BSGC.
YEA, 10 to 1 that's Sykes short position, they're saying one thing and doing another. Another lesson from the crooks.