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How is MDBX "turning a profit" when the form 10 filed to the SEC shows a net loss for 2012, a net loss for the first nine months of 2013, and a net loss for the most recent quarter?
Disclosure- short.
PS - any update on that dividend?
Check Twitter. Superman, a very successful day trader with a very large account who likes to help create the momentum he takes advantage of, tweeted "FSPM strong" this morning.
Experienced momentum traders are trading this stock and the good ones are banking big time.
Inexperienced traders / investors are getting caught up the hype and will get severely burned.
Value investors are looking at the SEC filings and saying "no thanks"
The evil shorts (me included) are waiting for the pot stock hype to die so that we can short them as they return to reasonable levels based on fundamentals. I have no idea how much longer the hype will last. Days, weeks, months???
A little more research on Redchip, MDBX's new IR partner.
http://thestreetsweeper.org/article.html?c=3&i=1530
An excellent description of the workings of a pump and dump, and fully applicable to a Redchip client, GNIN, who MDBX will be proudly sharing the stage with this week.
A Pavlovian response to buy the dips is being cleverly established to ensure maximum buying when the dump occurs.
Disclosure - short.
GNIN is a worthless scam company that was pumped and dumped a year ago, and the insiders continue to dump shares at any opportunity. I was questioning why MDBX management has agreed to profile the company alongside GNIN using Redchip when Redchip is notorious for profiling scam companies. It is obvious that MDBX was unaware of the scammy nature of Redchip's "investor awareness" services.
I am not a licensed investment advisor, so I am unable to provide advice on buying or selling stocks.
Disclosure - short.
Even more epic than the last one? That would be impressive. MDBX's fellow participant in the Redchip Emerging Growth Showcase, GNIN, was also subject to an epic short squeeze back in February, but look at their chart now!
I hope MDBX senior management realize that they made an error in being involved in a Redchip stock promotion event and will withdraw their participation. I am sure it was an honest oversight, similar to the one where they hired an auditor under SEC investigation.
I thought MDBX insiders were smarter than this! A quick search on Redchip demonstrates their involvement in pump and dump scams. Now the evidence is on the table for all to see.
Disclosure - short.
Yes, in theory I would be responsible for delivering the dividend through my broker to the party that leant the stock to be shorted. As the dividend consists of restricted shares, I would have to provide restricted shares. And where am I supposed to get these restricted shares? Think about it, and you will understand why FINRA is taking their time deciding what to do with this ludicrous way MDBX is proposing to issue a dividend.
Note that the recent MWAR proposed restricted share dividend went through as a free-trading share dividend. This was a few months after the GRLT restricted share dividend was approved, and perhaps the resulting confusion at brokerages about covering short positions caused FINRA to address this issue.
In any case, notice of the dividend issue will be posted on the OTC Daily List before the dividend is issued and I will have, I believe, one trading day to take action to cover my position, or box (go long equal number of shares in another account) in which case I will be the proud owner of sufficient restricted shares to cover my position including the dividend.
I am waiting to hear what FINRA has to say about all this.
Thanks for the DD. No doubt MDBX insiders are not happy about MDBX being discussed on the DD and fraud board you linked to, which is one of the less than 1% of iHub boards which focusses on serious research on potentially fraudulent companies.
Well, FINRA approved the GRLT 4 for 1 dividend of restricted shares a few months ago, so it will be interesting to see what happens with MDBX. There was no chart adjustments for the GRLT dividend, as it was not deemed to be a split. Recent collapse of the GRLT pps has been explained by the cheerleaders as the effect of the dividend being priced into the share price by the market. How convenient!
As I hold a short position in MDBX, I actually hope that they get approval for the restricted share dividend, as I believe it would hasten a return of the pps to a reasonable value, and there would be no pps adjustment when the dividend is issued.
Challenge for long-biased traders and investors of MDBX: post an example of a legitimate company (other than MDBX) that has, in the last 5 years, issued a dividend in the form of restricted shares.
The only companies I can find that have issued shares in the form of restricted shares are:
MDNH Medinah Minerals, a pump and dump, and
GRLT Grillit, a low float insider enrichment scam - a company with two small restaurants, an expansion plan and no money for expansion and a market cap of $50,000,000 at the peak of the hype.
Good luck!
Disclosure - short (and I was also short GRLT until recently)
Not a split, a dividend consisting of restricted shares. The difference is important because of the impact on share price after the issue date, taxes, margin requirements, etc. Note that you will be unable to sell your restricted share dividend for one year. You really have to ask why MDBX management insists on screwing their shareholders this way. Why not a standard stack split?
Disclosure - short.
First time ever I have seen 5,000 shares available for shorting at Interactive Brokers during trading hours. To me, this is an indication that insiders have been selling into the volume and volatility created by the pot stock frenzy. For me, as a short, this is good news, as the more shares the insiders sell, the faster the pps will return to a reasonable level based on a sensible valuation of the company. Other possible but IMO less likely reasons for increased availability of borrows are intentional manipulation of borrows (make some available and them pull to force buying to cover) or else some shorts are spooked by the dividend due to uncertainty about the effect on margin.
Nothing on OTC daily list or OTCMarkets.com about dividend issue today or yesterday.
However daily chart of MDBX at Interactive Brokers has been adjusted to show all prices up to yesterday adjusted as if a 2 for 1 split had occurred. Very strange...
Closing bell on which date?
This is a classic pump and dump. Check the financial filings - no revenue, no assets. http://www.otcmarkets.com/stock/NTRR/financials#
Disclosure - short
Yet another morning panic setting up on level 2. Disclosure - short.
FINRA alert on MJ OTC scams. Includes warnings about companies where company officers have criminal convictions!
http://www.finra.org/Investors/ProtectYourself/InvestorAlerts/FraudsAndScams/P325352
Disclosure - short.
Classic morning panic setting up here?
Disclosure - short.
Longs are quiet this morning.
Disclosure - was boxed (short in one account, long in another on the way up) now short - interactive Brokers
It really doesn't matter which shares were which. Think of each share that existed as of the record date as having a voucher "good for one dividend" attached to it. So you got a voucher on the record date for the shares you owned then, and you got a voucher today when you bought shares, and then had the voucher taken away when you sold the shares. If FINRA does not approve the dividend your voucher is worthless.
As a technical trader, I would say it looks like a very strong uptrend, forming a parabolic spike. No one can ever say how high a parabolic spike can reach, but they do tend to reverse suddenly downwards.
Capable momentum traders will cash in, the inexperienced will be crushed.
Disclosure - boxed (long one account, short an equal number of shares in another), biding my time until a downtrend is re-established.
Between the record date and the payout date, the dividends are considered to be attached to the shares that existed on the record date. So if you sell your shares now that you owned on the record date (dec 18) the dividend goes to the new owner. This will keep happening until we reach the payout date. A fixed payout date can not be known
until FINRA approves the dividend. MDBX PR anticipates a payout date of Jan 15, subject to FINRA approval.
Let's just ignore the issue of the declaration date being announced as Dec 28 in the PR dated Dec 19. Only MDBX management could explain how that works!
Forgot disclaimer, flat but will be short when the new year buying frenzy in MJ stocks subsides.
I am not sure how the legalization of MJ would help MDBX. Medbox vending machines only make sense in a limited set of circumstances when MJ is a controlled substance.
Read my previous post, google as instructed, and read the article, it will answer all your questions.
The trading is real. I have held a number of promoted penny stocks through SEC suspensions, mostly on the short side. I am still short MDDD at Interactive Brokers. To close my position, I have to call the trade desk.
Google: the sec just suspended my stock now what
And read the informative article from Promotion Stock Secrets.
There is less than one percent chance MDDD will ever get out of the grey market. If you can not trade online, call your broker's trade desk and they will close your position. The price will soon fade to zero, so you should do this sooner rather than later.
Took me a few seconds... :)
Hi Newmedman, the only "truth" that I can trust is the price action. While I remain short- biased on MDBX because of the serious over-valuation of the stock, the trend on the daily charts is no longer down. I did not get bought-in, and currently have a boxed position, short in one account, long in another. I box rather than cover because borrows of MDBX are very hard to find, and when I find them, I won't let go. I will sit here with my boxed position until the current uptrend on the daily charts is broken, at which point I will sell my long position and become net short. I keep my position sizes small relative to my account size so that I can sit through this kind of volatility while protecting my capital. There is a good chance that someone with a large short position relative to account size got crushed by the price action of MDBX in the last few days if they did not cover.
OK, this is getting to be a bit much... While I have always been short biased on MDBX, and appreciate factual info that supports my bias, PLEASE stop with the "fake doctor" rants. Do a bit of research on the granting of the Doctor of Chiropractic degree before you post any more on this subject.
Your other research is, however, most appreciated!
WOW! What a nice move upwards for MDBX! Although I am short biased in the long term, as the stock is significantly overvalued, I have to respect the fact that the downtrend on the daily charts has ended. I am now boxed (short in one account, long an equal number of shares in another account), and will return to a net short position once the trend turns down again.
Happy New Year to all MDBX traders long and short, and kudos to the insiders!
Allow me to try to spread some light on the misinformation you posted. Before MDBX announced its dividend consisting of restricted shares, I had a 1,000 share short position in MDBX. My brokerage account with Interactive Brokers, an institutional and retail brokerage which offers the possibility of shorting any equity for which borrows can be located, still shows that I have a 1,000 share short position. I did not get "called in" and I did not take a huge bath. My short position remains quite profitable, thank you very much.
On second reading of your post, nicely understated!
I would guess that 99.99% of shareholders have no understanding of the implications of holding and disposing of restricted shares. It sounds like a good deal until you look into it.
Disclosure - my opinion is obviously heavily biased by my short position in MDBX
It would be useful for the MDBX management to outline the process and costs involved for a small shareholder to get the restricted legend removed from the share certificates that will be issued as dividends. Shareholders would then understand that MDBX management has done them no favors by issuing a dividend in this manner. A straight forward split would have been a much shareholder friendly approach to take.
Looks like the contract for paid iHub posters to support NXTD expired yesterday at market close. Unfortunately, this does not tell us what is coming next in the promo...
Disclosure - short.
Isn't this about the time when someone posts about how institutional buyers drive the price down to shake out the weak hands and then load up at a much lower price?
Looks like the hedge funds are about to move into MDBX in a big way!
Disclosure - short.
Interactive Brokers had borrows available this morning. I managed to get 596 short (to add to my previous position of 4 shares!) at 11.55 at the open. As always, I will box my position if we get a big bounce.
Over the last two weeks, Interactive Brokers has been able to locate borrows of MDBX to the extent that I am short a total of FOUR shares. At this rate of price collapse, my Friday afternoon pint or two may be funded by my MDBX short position!