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Does anyone understand the discussion of "Net Income (Loss) per Common Share" on page 16 of the 10Q. It says:
"Total potentially outstanding dilutive common shares = 390,005,204"
???
If you recall, there was a big spike in pps right before the R/S announcement. Then a big spike in volume and OS right after. There may have been some manipulation here to help the lenders shed their convertibles.
I've also noticed that there hasn't been much increase in OS since the R/S. Seems like the convertible lenders might have run their course and been frozen out.
I'm not recommending any one buy but things may have changed for the better.
They were approaching a point where there would not have been enough AS to fill all of the convertible shares (500 million shares times $.0005/share is only $250,000). R/S temporarily reduces the shares but they immediately raised OS back to 1 billion.
I don't like it but it makes a lot of sense. Nothing shows that management made any money here. It all went to the lenders. Management was just keeping the lights on and trying to move forward on the plan. You can accuse them of bad judgement for getting in bed with these guys but I don't think there was any sinister intent here.
Good post. Thanks for the info. It's about what I suspected - more bad luck and unscrupulous lenders than scam.
If you want to keep talking to yourself about DTC chills there's a board for it:
Stuck and Screwed
I'm sure you'll find anything you want to know there.
In the meantime I've had no problem selling my CGFI shares on Scottrade or on Morgan Stanley (although MS won't let me buy any more and I couldn't execute the sale online).
Has anyone checked the OS lately? It doesn't seem like there's any more dilution happening. The convertible lenders seem to have disappeared.
I haven't seen an 8k but my comments were based on the ammendment filed on 6/12/2013 at the Nevada Secretary of State that you can view at the following link:
CGFI Filings
Maybe the whole thing was just a typo. Not sure what to make of the numbers.
I think I missed the pump! Anyone catch the pump?
The link was a new corporate filing with the Nevada Secretary of State. It should show up on an 8K in the next day or so. It looked like AS was going from 1 billion to 1.5 billion but the B shares had disappeared.
Perhaps now they want to try to attract a buyer for the corp. since the B shares were meant to discourage/preclude a takeover.
Not sure why the post was deleted but the link seems to show that the B shares were converted to A shares. Can anyone confirm?
That's the requirement for an original new listing. Fannie and Freddie were de-listed when they fell below $1 for over a month. I believe they can be re-listed once they've traded back above $1 for a month. What I'm not sure of is if this is automatic or if it has to be requested by the company.
I don't see CGFI mentioned anywhere. CGFI has not had any issues regarding filing timely SEC reports. In fact, one of the things that made me believe that they were not just another pump and dump was the fact that they were timely in reporting.
It's easy for the SEC to censure companies that don't file timely reports. Companies either file the reports or they don't. It's much harder for them to prove misleading information or criminal intent.
In fact, proving a pump and dump would be tough. Were was the pump I certainly missed it.
Your getting a little over the line here Bruno. It's been your problem all along. You take the few known facts and start drawing conclusions about the people and motivations. A lot of good people with honest intentions lost a lot of money on this. And yes, it's not inconceivable that a bank, particularly a local bank with ties to the local economy, could have loaned money to CGFI given a proper business case. And no one can say what kind of business deals are discussed outside the public eye.
There's a lot we still don't know about what's going on. Do you know what's been discussed behind the scenes? I sure don't. I'm still waiting for a good explanation of why Joe Grant Co would accept 50 million shares of CGFI with a four year restriction.
Good petition. Need more people to sign it.
passing it on:
Petition on FNMA
I got mine from Scottrade last week. Trying to recover some losses from FNMA also.
Keep in mind that FNMA delisted voluntarily. Once a stock's pps goes below $1/share for over 30 days they would automatically be delisted. Would there be special provisions for re-listing a formerly listed stock?
Check out TradeStation. Best platform available IMO
Check out:
Quantumonline
Lookup FNMA and click on the link to related securities to get a list of all of the preferred shares along with details on each.
This is a great resource for researching income securities.
You missed the Form 4 filed on 05/06/13. Jo Grant got another 50 million 4 year restricted shares bringing their total to 86 million. THEY OWN THE COMPANY FOR ALL PRACTICAL PURPOSES.
I pointed out previously that this didn't make much sense. Why do they agree to take 50 million 4 year restricted shares if the company is going down the tubes? Why would they do this while Guyer controls all of the B shares unless they know that they control Guyer?
Anyone know what the current OS is?
You keep saying CFO "knows the projections can't be met". How do you know what he knows? Why is it unreasonable to think that if the information revealed so far is true (and assuming management knows the capex requirements - wouldn't this be the case for the mill since they're saying they need $3 million) they couldn't put together a case to sell about 17 million shares at $.18/share and raise $3 million +? How do you know that if they had the $3 million that they couldn't open the mill by September?
I'm not trying to encourage anyone to buy more shares but I'm getting tired of the blame game here.
Not to nitpick, but, how can you accuse Guyer of being overly promotional and in the same sentence complain that he doesn't give enough press releases. You're getting carried away Bruno.
I don't think Guyer was intentionally misleading us. Nothing he's said has been shown to be untrue. Basically you're accusing him of presenting an overly optimistic view of what the company can acomplish. However, all of the risks were clearly stated in the SEC reports which were all filed in a timely manner. I've seen much more blatantly false hype coming from penny stock companies that are perpetually late filing their reports.
I stand corrected. But it seems to me that they could excercise the options and sell the commons collecting $182 billion + on the sale and still keep the SPS. The preferred's could go back to paying the Feds a 10% dividend and the company would, for all practical purposes be private. This would be a win-win for everybody.
Congress was just told that they could make $182 billion by converting the Treasury's preferred shares into common and selling the shares off. Does anyone seriously think even this miserable collection of ideologues is dumb enough to say "Na, we'd rather wind it down".
I'd say that's polical malpractice and I think most of the country would agree with me.
If anyone stands to profit, it looks like it would be Steven Fearn and whoever else is involved in Jo Grant Mining (perhaps Guyer owns some stock - having a second on the mill gives him some protection from CGFID but it doesn't guarantee him any income). They can milk CGFID dry as long as they get the mill and the mines operating they'll be OK.
However, having said this, I'm still not convinced that there's evil intent here so much as bad luck, misjudgement and perhaps mismanagement. The money is all flowing to the convertible lenders right now. There's no money in CGFID. Perhaps you could sue Jo Grant Mining but I doubt that there's much there either without an operating mill and mines.
Again, I ask, why would they (Jo Grant) take 50 million shares of CGFID if they can't sell them for four years. A lot of this doesn't add up.
Just another fact that doesn't fit the narrative going down here. If management is just trying to scam everyone, why post a $515,000 reclamation bond?
Does anyone know who owns Jo Grant Mining Co? CGFID seems to be just a front for shielding Jo Grant. Jo Grant owns most of the A shares and actual mining properties. They're the power behind the throne. Guyer is just doing their bidding.
I agree Bruno! Something doesn't seem right with all of the narratives here. Joe Grant mining owns most of the converted shares and now they will get 50 million more that are restricted for four years. They must know about the death spiral financing. So why would they now agree to take 50 million shares that they can't sell for four years?
Everybody loves to trash Guyer but he only owns a little over 3,000 A shares. He has control of the B shares but they have no value. He can call all of the shots but he certainly hasn't gotten rich on his salary. You can accuse him of poor judgement and bad management but I don't see a case for anybody enriching themselves except the debt holders.
The only way management can make money is if CGFID is successful. There's something missing in all of this and I'm not sure what it is unless Guyer has some promises for funding up his sleeve. I'm not suggesting that anyone buy but it'll be interesting keeping an eye on this space.
New PR just out. New estimate for Champion mine is $348+ million. Additional claims purchased from Joe Grant mining & contract renegotiated. Joe Grant owns most of CGFID with 50 million additional 4 year restricted shares.
Guyer controls wothless B shares but most voting stock. His tradeable shares are just 3,389.
This doesn't make a lot of sense folks. None of the principles seem to be making any money on this. Joe Grant Mining would make the most, but only if CGFID is successful (their shares are tied up for four years).
Any thoughts?
Most brokers haven't converted their shares yet. Once they do, I expect volume to pick up and pps will probably drop before it stabilizes again for a while.
Only 100 shares sold at that price. Someone trying to move the pps.
I'm not comparing the two companies. I'm speculating that the company Southridge plans to bring into BRZG is one of these vampire convertible finance companies that ruined CGFID. As far as our investment goes this could still be very profitable, even though it might not be the most ethical type of business to invest in. Perhaps it's sweet justice to recover some of my money from CGFID by investing in the other side
Good posts! Post #1886 was particularly interesting. Companies engaging in this kind of convertible debt financing can be very profitable but they tend to suck dry the pennystocks they invest in. CGFID is a case in point. Last summer they were forced into a 5000/1 reverse split and last week they did another 500/1 RS. This practice of taking on debt that can be immediately converted to stock at a deep discount destroys the stock price and any value stockholders have in their investments. I wonder if merging with this kind of company is what Southridge has in mind for BRZG?
You may be right However, I'm not sure how much of the Conservatorship is under statutory control of Congress and how much can be done by Executive Order. If I'm not mistaken, the part about the dividends being discontinued and all profits flowing to the government was done by congressional statute. If so, and there's nothing in the rules allowing the President to change this, then you're probably right and nothing will get done until 2017.
It would be government malpractice to let Fannie & Freddie just wind down and die. I can't believe even the Tea Party Turkeys are that crazy. If the government wanted to turn this market private the logical course would be for them to convert their Preferreds and gradually sell off the common shares for a tidy profit.
Personnally, I think they should just keep some Preferreds and collect dividends in perpetuity but release the Conservatorship. Why shouldn't us citizens reap some reward after taking the risk.
I think the early action will be in Fannie Mae preferred's. Once the government get's all it's money back, hopefully sometime this year, they'll probably first go back to paying dividends. If they're serious about getting Fannie back on its feet they'll have to start paying off the preferreds before they can pay any dividend on the commons. FNMAT, for example, has a coupon rate of 8.25% on a $25/share liquidation with a call date of 5/20/13. It's closed today at $6/share up $.65 (12.15%). If/when dividends start flowing these shares will be a real bargain (can you handle a 34%+ YIELD). Alternatively, they'll be called at $25/share. Either way there's a lot of money to be made here.
Someone correct me if I'm wrong but the simplest way to explain it is that about $8 billion was normal income and another $50 billion was released from reserves to cover bad loans and was counted on the books as income. Consequently, total income was approximately $58 billion.
The RS has been approved:
8K dated 5/7/2013
Bruno, you seem to think the SEC has unlimited resources to investigate every company that violates its rules. In this age of deregulation, sequestration and austerity freaks in Congress we're lucky if anything gets investigated by the SEC, much less a penny stock on the OTCB. You'd need about 10,000 stockholders (or a Goldman Sach's) to file complaints to even get their attention IMHO.
As far as the current pps goes, first, the recent price spike probably got a lot of attention from technical traders who have jumped in looking for short term gains. Pure technical traders don't pay much attention to fundamentals of the company. They're primarily focused on price movements and volume changes. Second, there are people playing the dips (e.g. buy at .0005 and sell at .0008). Third, there are new investors that don't read this blog and just see the potential. They figure the company will be in a stronger position after the RS and I'm not totally convinced that they'd be wrong. Nevertheless, I'm holding my powder for now.