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OMIC ($16.25) At this point it looks like it's just another "non-binding" offer from another major shareholder. However, that gives me more confidence that major shareholders are going to force a sale or closing down of the company. Tang is a decent-sized biotech investor. He owns 372,000 shares of OMIC, ALL of them purchased within the last week, since the Deerfield "offer" of $10 per share. This chart from the 13D:
Per latest 10Q, as of June 30, company had $133m in cash and short term investments and less than 2.5m shares outstanding. But they're burning thru more than $20m per quarter, so to be conservative, that brings us down to, say, $110m by end of Sept, divided by 2.5m shares equals $44 per share. But they've also got a $58m lease obligation. I have no experience in knowing how that could be resolved, but my wild guess is they could buy out of that agreement for let's say $15m, so that brings us down to $95m, plus throw in another $5m for shutting down the company and misc stuff, and that would have us at $90m divided by 2.5m shares, or $36 per share.
Does Tang really want to own and run the company, or just sees the asset value and wants the company to close down and return money to shareholders? Who knows. But I think it becomes harder for mgt to do nothing and keep milking things and reject two buyout offers. They could become personally liable in a lawsuit if they don't seek to maximize shareholder value now, or at least talk to the potential acquisitors. My guess is they've been unwilling to do so up to now. Maybe something is finally going to happen here. I sold all my shares the other day and currently own none, but am open to the idea of getting back in. Just don't trust mgt.
Interested to hear what other Savvy board members think.
ME ($.33) Sounds like things are going well at 23andMe -- entire board resigns:
https://finance.yahoo.com/news/every-single-member-board-just-161437412.html
BUKS ($1.32) New all time high today. But it's definitely a tortoise, not a hare. Seems to be chugging along well with pretty good prospects for the future, but we will see.
OMIC Yeah, and I totally distrust mgt. Sold this morning at $18.39. Had my sell orders in the high $19's was watching it closely and then thought, don't be greedy. Huge move happened very fast. Very, very glad to have gone from a big loss to a nice profit. Theoretically, there's still a lot of money there, but they're burning thru it pretty quickly and I never like being in bed with people who it feels like are working against you. Even if they close up shop, they also have a pretty good lease obligation they'd have to buy out. If they get a serious buyout offer from someone respectable, I might jump back in to arbitrage the waiting game, but right now there's really no serious offer. But I'll be keeping an eye on it, becuz now there is may be a catalyst to force something to happen.
OMIC Yeah this dog was in my doghouse for a long time and is finally trying to get out. Total speculation on my part, but the way this was released has me guessing that mgt wouldn't talk to the investor group and was willing to keep milking this company into the ground. Mgt didn't try to maximize shareholder value voluntarily. A "non-binding proposal" doesn't really mean much, but suggests they're trying to force mgt's hand to do something, also has me guessing that mgt wasn't willing to talk to them seriously, so they had to go public with their proposal. I'm guessing the shareholder group didn't want to watch their money continue to disappear month after month, and neither do I.
lol, yeah isn't that the truth. I've got some but I'm actually still underwater at the moment
NOVVW Would love to see a $3.75 price becuz I hold some, but the type of halt (T12) is where i think the SEC suspects something untoward is going on. I think I had one like this before where it had to do with a bunch of investors trying to redeem and maybe their shares get locked up so now the float is extremely low and the stock is easy to run. I think it was something like that. We shall see. Price runup might be legit, or it might drop right back down
MITQ - Yeah, it is starting to seem more promising. Still would like to know if/when things are gonna turn profitable, margins, etc. But starting to look better for sure
BUKS ($1.15) yeah it seems like it's been under subtle buying pressure for a couple of weeks
Chart looks like it's slowly being walked up again, but I still have no idea why
KLNG ($1.28) Yeah, I liked the sound of the new CEO. For anyone not familiar, this is the old DPDW (Deep Down) which was a stock that 10bagger brought to the board way back when. Mgt was always an issue for me back then. New guy has lots of industry experience and has put up good numbers so far. Hopefully it continues.
BUKS ($1.08) This slow but steady is trying to break permanently above a buck. A little pop on the news today:
https://finance.yahoo.com/news/butler-national-corporation-announces-garmin-164600070.html
KLNG ($1.18) Had an open order get hit at just above $1 on this morning's plunge. Have no idea why it moved down, other than typical low volume smallcap trading.
PPIH - Congrats on the good fortune! Thx for the thoughts
PPIH - As I read a little, I think I may have owned it in the past too. Can't remember all the names and tickers, ha. But yeah, seems to have popped a lot.
PPIH (11.50) $46 mil in contracts announced. Anyone familiar with it?
https://www.otcmarkets.com/stock/ppih/news/story?e&id=2959699
MITQ - I sold all I had for over a buck on that spike up and was happy to get it. I'd still like to see some sign that they're inching toward profitability. They may already be getting there, but I'm sort of in "show me" mode on this one
LMB ($62.30) Yes, $62. This one's in the woulda coulda shoulda category for a lot of us.
OMIC - I was just about to post a note on this one myself. Made money on it twice, but blood on my hands the third time. Their ability to burn thru cash has been impressive. The long-term chart has very few blips up. Still SEEMS like it should end up well, But cash and investments declined by $40m in six months, so the $133m that's left can disappear pretty quickly. Will they get bought out, be shareholder friendly and liquidate, or just continue on with a delusion and burn thru all the cash? If they announced tomorrow they are ceasing operations and liquidating, could be monster gains. Even with the small share count, I'm concerned they're delusional.
Seems almost impossible that it's trading where it is. But it is.
BKTI - Pretty impressive that he's still buying near $20. He must think there's plenty of good to come.
Hweb, if you want to feel old, I just went back and looked and that was 2005! Holy Moses! Nearly 20 yrs ago. Jarvis and Dial were the names I remembered with Grifco, and yep a few did eventually go to the pokey:
https://www.justice.gov/archive/usao/txs/1News/Releases/2012%20June/120601%20Jarvis%20and%20Ellerman_print.html
Lentinman story. Seems like every couple of years Len's name comes up. Always makes me smile because pretty soon he would be getting out the extra blankets and preparing to work from upstairs so that he could turn on the heat as little as possible in the winter.
But my favorite story was regarding the fraudulent company, Grifco (GFCI). [The execs later went to prison.]. From memory, this was a pinky that claimed to be an oil field tool company, I think it was. Their website claimed they were working with all the biggies: Schlumberger, Baker Hughes, etc. But the press releases were usually just one-sided statements from Grifco, with no confirming verbiage from the other companies. And there was the little item of Grifco always claiming that their audited financials were just around the corner, not here yet, but real soon. So they had filed totally unaudited financials that looked fantastic! A value investor's dream! As the audited financials kept getting "delayed", a number of us started to get a little more suspicious.
One day I went to their website and noticed that they had a "Bulletin Board" link you could click on, and separately in the margin of the front page were the latest company news stories. I noticed that the only thing on the Bulletin Board were the company press releases. So just for the heck of it, I thought I'd register for their bulletin board to see if there was anything else to it, or were they using the bulletin board as the way to populate the "News" section of the website. So I registered and typed a message something like, "Is The Bulletin Board Used to Post News?" And sure enough, that headline immediately posted as a "news story" on their front page. I didn't want to go too crazy with the headlines because, you never know, the company might claim you had "illegally hacked" their website or some such nonsense and try to sue. I came back to the Ihub Grifco board and reported my findings. Within minutes a bunch of people had registered at the company bulletin board and started posting fake headlines with no fear. Len, perhaps knowing with his ultimate plan he had nothing to lose, had some of the best ones. "Grifco Acquires Exxon", "George W. Bush Hired As New CEO of Grifco" etc
Good times and fond memories.
BUKS ($1.01) This long, slow climber is trying to stay above a dollar for the first time in like 25 years, I think. Fundamentals seem good (which of course means there will probably be an accounting scandal announced tomorrow now that I've said that. ha)
BKTI - I'm doing the same. Who knows, it may be one of those that goes up, and just keeps going. But a 50% gain in about 10 days is awfully far, awfully fast.
BKTI ($17.07) I let a few go late morning just because it's moved so far so fast. Will be buying back if it drops some. Longer term I certainly like
GTEC - Yep, this one moves in strange ways. Congrats. I guess it shows how few people read the 10-Q vs a press release lol
AATC - I liked the results too, and just like the overall biz. Seems like a good, safe, long term business. Things can be a little lumpy, but not something where I'd expect to get just totally blindsided by a horrible, unexplainable quarter or anything. I sure hope they stick to traffic flow management, safety, that sort of thing. And sure hope they don't go over to the dark side of spying on citizens for the govt and becoming part of the surveillance state
STRG - I'm sure other people may know more about how these scams operate than me, but my guess is you really need to be an insider with convertibles and probably have to be in cahoots with a market maker somehow because I think a mm has more lenient rules on shorting. But a note holder had the ability to convert 700,000 shares at $.10 That's a fair amount of money that could be stolen from innocent newbie people who bought at the phony high prices
STRG ($.265) This was that perfect manipulated stair-step chart, up every day, which got all the way to $9+. Then collapsed 95% in a couple of days.
GTEC - Yeah, maybe it launches. I've never been able to figure out when or what makes this one spike. But it moves up like a jumping bean from time to time
SURG - Tough to tell if the ACP program is gone for good, tho. Hopefully it's gone for good, but you never know.They're still pushing for it even now:
https://www.commerce.senate.gov/2024/8/cantwell-democrats-secure-7-billion-for-affordable-broadband-program-over-gop-opposition
HOUR - haha, pretty good Tuna. Yeah, I can totally understand the one-off sort of purchase, weird circumstances, etc. Maybe $100k-$300k in credit card payables wouldn't seem out of the norm to me. But with HOUR it's the amounts that seem so crazy. $2.2m and end of last year it was $4.4m in credit card payables. How do you even get those sort of credit card limits? I typed "typical business credit card limit" into Google and it says $56,100 is typical limit. Even if they had $200k limit per card, that would mean 22 cards maxed out to get to $4.4m. It's just the mechanics of even getting that much credit card debt that I find very confusing and unusual.
HOUR - This is an interesting discussion of a request to partner with them. They left out the hair on fire and credit cards part, but still interesting to see how they operate:
https://sellersasksellers.com/t/ever-heard-of-hour-loop-inc/2256
HOUR - At least the cc payables are down from 4.4m last year lol. What cards even give that big of a credit line? If the cc is anywhere near the 29% on the offers for cards I get, I guess the cc company can afford a few losses. Even on business cards the interest rate has to be mighty high
STRG - Up again today, like clockwork! I've always wondered how these scams work. My guess is the scammers do wash trades to run the price up and draw in innocent buyers. Meanwhile, the scammers are establishing short positions the whole time. And then they exercise their convertibles to cover their short positions.
My guess is the scammers need a low float shell that they almost totally control (STRG has 2.9m O/S). Let's say you could short at an average of $6.10 per share. Round numbers, they get to cover at $.10 on 700,000 shares. That's $4.2 million . . . . . . . on a stinky pinky.
Whenever I see a chart like that, I literally just burst out laughing. I mean, what can you even say?
STRG - Pull up the chart. Every once in a while one of these comes along. Looks like perfectly normal trading to me! I see no signs of manipulation whatsoever.
Yeah, I agree. The trades on warrants are often totally nonsensical. It's just part of how they trade. I just accept it.
UAHC - A little odd. Company is announcing a dividend that "will be" payable to shareholders of record on a date that has already passed -- July 11. Also not on the daily list.
https://www.otcmarkets.com/stock/uahc/news/United-American-Healthcare-Corporation-Declares-Cash-Dividend?id=447475