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My concerns at this point are pretty minimal. I think October 1 will bring some funky trading with flippers that got trapped for 10 days trying to get out and everyone figuring out the grey trading, but by weeks end I would imagine things should stabilize. The nice thing with the lack of bid/ask is that there can be large jumps in price as you mentioned, which can be just as good as it is bad. Even if it did take a year to find an MM and FINRA approval, I think with audited statements we would see some good stock appreciation in the mean time from the current .014. All JMO of course, but fundamentally not much has changed. Obviously this is dependent on the coming week, what JR says and if we do receive a no action letter from the SEC.
Very good post and I agree completely. No one really keeps the SEC in check to be completely honest. And, as I have said before, if they operate like every other government institution, I would be led to believe that their communication to Jeff, if any, was very unclear and lacked urgency and severity in its message. There is just simply no chance that in closing down 600+ companies over the last 8.5 months that every procedure has been followed to the T as regulations require. They can hang around down here in penny land shutting down anyone they want and write it off with "we are not allowed to disclose anything." Too bad the SEC was no where to be found when our entire financial system was collapsing. Why weren't they protecting investors then? All government agencies go after companies they believe they can recoup money from. That is why you still see so many worthless P&Ds with no revenue or assets running wild, because the government reaps no benefit from shutting them down.
I am honestly impressed, assuming everyone is telling the truth, that he has spoken with as many S/Hs as he has and replied emails and phone calls even while dealing with all of this stuff. Granted, I am having trouble sleeping as a shareholder, I can only imagine what the CEOs restless nights are like.
Keep on looking, you will never get back in at that price just as you never got back in at .007.
And finally some signs of life with the PR today
Good post. Again, the Greys is not a death sentence, the reason a stock went there is the death sentence. When it was a misunderstanding, such as i believe is the case here, it is clearly not going to trade the same as when scamming was involved.
Really appreciate your great DD and research. Out of all of the theories so far, this seems the most plausible as it allows for Jeff and the lawyers to be telling the truth while still having technically violated a SEC guideline. Although, it seems kind of unfair to expect a CEO to track SOR.
I have accepted that we are destined for the grey but at least if this is the reason why, we should be able to see continued growth and eventually come out from under it.
One thing I wish people would realize is that the grey market is absolutely not a death sentence if you didn't get stuck there because of PD or scamming. A poster on the M*KP board even mentioned how one of his stocks that went grey a while back landed there at .50 and is still there but now at 3.50. Stocks can still appreciate on the grey market. There are many more obstacles and it is obviously not ideal but just because we go there doesn't mean come next Monday we open at .0001.
Very True. Tried emailing the IR firm to no avail. Oh well, more of the same waiting game for now.
I am fully aware of the time frame. I said as quickly as possible, if that means 6 months, 12 months, 24 months, it doesn't matter. My point is that the best case scenario is one in which everything transitions as smoothly as possible.
Good post, completely agree. There will surely be some traders and flippers that were planning to sell on Monday that will exit the second the 1st hits, but I think the longs are very strong (including JR), I would say we constitute over half of the total O/S. In addition, with this announcement and how iffy the grey market is, I would think some short termers may realign their holding plan.
Best case scenario is JR follows through with todays PR quickly as possible. Finds an MM quickly as possible, FINRA approves form 211 quickly as possible and everyone holds tight to their shares instead of panic selling them for cheap on the grey.
Nice to see less and less zero volume days hah
I agree, now is not the time to be stingy. At all costs, this needs to be done as quickly and efficiently as possible.
Very true. Also depends on what JR is willing to pay. I work for a cpa firm and can tell you expedited services can certainly occur if the price is right. There are still procedures that must be followed but the more people on sight and the bigger the focus of the engagement, the quicker it can go. Their bookkeeper supposedly worked for one of the big four so she should know what to do to get everything in order.
I apologize, my post was meant to be a general post and was not directed at you.
You make good points and I get the frustration, but I disagree about the SEC part. The SEC honestly could not care less how this affects investors of KMAG or the other stocks. They are not protecting us, they are just on a suspension rampage so they can get a pat on the back from the higher ups. 609 companies this year? Does that really sound like they are taking their time and due diligence before dishing out these suspensions?
This is the same SEC that has never been able to catch companies before the damage is already done when it really mattered. The same SEC that gets probably 90% of their leads from Whistleblowers. The same SEC run by an incredibly inefficient government.
I have not worked with the SEC personally, but as I mentioned yesterday I have had copious amounts of work involving the IRS. I can tell you first hand that the types of things I have come to expect from such agencies are nothing short of screw the person/company and let them sort it out/prove their innocence. We are talking $500,000 tax deficiencies assessed because a zero basis was assumed on a short term stock transaction. Liens put on property of a taxpayer because the IRS sent the correspondence to the wrong address. Deficiencies assessed against the wrong business owners because the IRS transposed a number in the EIN.
Before people jump on me for defending Jeff, I am not. He may be the biggest liar ever and have screwed us all. But until that is proven, I am not just going to sit here and assume that the SEC handed down a suspension so he must have done something wrong, because that just isn't a guarantee. In the mean time, while we are all crying about losing money, everyone needs to realize jeff stands to lose all the same money and more, including his original 330k loan, as well as losing his company and possibly his freedom. So you better believe that if there is a shred of innocence in him, he will find a way out from under this.
In the mean time, we have already had 25 people post we are going to the grey markets, so maybe we could take a break from the parrot posts.
I respect that and am right there with you. Haven't sold a single share since early accumulation back in the .007 phase.
I think his wording had to do with knowing about this suspension. One thing that has made me feel a lot better about the integrity of Jeff is that he released this mornings PR AFTER the suspension was confirmed. If he were guilty of anything fraudulent or malicious, would he really continue posting PRs like that after the accusations had already surfaced? Seems like a death sentence to me if you weren't 100% confident in what you were claiming.
Yes, things look pretty bleak, but we wouldn't be longs if we didn't have hope in the first place. I am staying positive if for no other reason than to just be able to get through this week at work without imploding. The Grey market seems like a certainty no matter what, but it is possible, though unlikely, to see continued appreciation after a bad dip and possibly an uplist at some point way down the road.
Again, before I get corrected by one of the experts on here, I realize things look terrible, but I for one will not give up hope just yet.
Although the revenue figures were PR'd, had the accusations arisen against them I would assume the SEC would have included financial statements as a reason for suspension in addition to PRs since those same revenue figures were posted on the Q2 filing. I believe the investigation is mostly focused on the share conversions, buybacks and the PRs involving such. Jeff should have filed a form 4 and and PRd the buyback as soon as it was over. Would have never had issues arise. If that really is the SECs main focus, it really shouldn't take much time for Jeff to substantiate his stock holdings.
The suspension may be warranted given some of the things that have gone on, but it is only fair to give a chance to the company to substantiate its previous assertions. The SEC, buy no means, has perfect information and is run no better than any other regulatory agency.
I am not saying Jeff isn't guilty of fraudulent PRs, but I also don't believe the SEC is always correct just because they are the SEC.
Absolutely no doubt in my mind that they are involved in this. Seeing that release of theirs on Friday pretty much backs this up imo. Derivative shareholder suit anyone?
You can't be serious. No investor, long or day trader, would sell at a 99% loss.
True, good thing the government and regulatory agencies never make any mistakes.
I agree completely. This is a dumb analogy but actually happened in my town.
A local restaurant was reported by people (suspected competitors) to the health department. Health department shut them down and launched a full inspection. When the dust settled, they opened them back up and gave the an "A" rating.
Took a couple of weeks, but when it was all said and done, business doubled.
Point being, right now, all kinds of doubt and speculation out on KMAG. But if you go through review by the SEC, the literal worst case scenario for any stock, and come out clean, you are not only good to go, you are now 100x more attractive as how much safer of an investment can you get than one that is cleared by the SEC.
Though I have not worked with the SEC, I have worked a lot with the IRS. If the agencies operate in a similar fashion, I can say these notices are not nearly as cut and dry as people here are thinking. Many times, it is hard to know the severity of the notice being issued. Either way, Jeff should have taken it more seriously. It is concerning that the Attorney letter posted Friday makes no mention of this situation. It means someone is lying. It also means the law firm is now in the direct line of fire for liability. In a way this is good, as they will put a lot of effort towards this situation since they performed assurance services.
Imo, that is easier to clear up than accusations against the financial statements. All JR should really have to prove is that he does hold all of the shares he claims to and possibly substantiate revenue figures.
I agree, however, insider trading is the most difficult thing in the financial world to prove. Additionally, you would have to prove that people made material transactions based on the information. The fact that JR has never released the PRs when he said he would also helps his case. Telling a S/H the timing of a release does not constitute insider information. Had he ever given any quantifiable information in those emails, than it would be another story.
If somebody has it out for KMAG, that is really as there is to it cough MMG cough. It is like if there is a suspect wanted for theft and I call the police and say hey I see this guy that fits the description, dude will be in cuffs with guns pointed at him before they even ask him who he is or where he was. Just the way our legal and financial system works sadly.
No chance, that doesn't even make sense. If KMAG can prove its innocence they should be trading again. That would be like finding a person innocent in a court of law but then saying, sorry, you are going to have to stay in jail for a couple years while we sort out your paperwork.
Exactly. It is my belief that MMG is behind this, wish I would have taken their article on Friday more seriously. As with every company, they have a hidden agenda I am sure. But given the non-reporting nature of KMAG, the emails and the PRs, it probably didn't take much to convince the SEC to launch an investigation. IMO, the KMAG name will be cleared. The law firm representing KMAG has a vested stake in clearing the name since they released the Attorney letter giving assurance and thus making themselves liable.
Yes, many stocks don't come back from this, but KMAG was always that one in one thousand to begin with so lets await further information and at least we finally got those BB numbers lol.
He may be, maybe his legal counsel advised him to release that PR this morning. It certainly gives me some confidence in Jeff and the company. If you are being held to under go trial for murder and you are out for a couple weeks on bail, are you going to go stab someone to death in the grocery store? Probably not, right?
If Jeff really was guilty, I think he would be dead silent and running scared, not releasing MORE PRs and information that would be rope to hang himself if false. Up until now, the Buyback was rumored and though to be happening, but technically, if he even bought back 1 share, he would not have been misleading in his PR back in May. To announce an actual number and that he is holding all shares converted and bought back, AFTER being accused by the SEC. Seems like a pretty confident position to me. He doesn't stand to lose money like us, he stands to do hard time in prison.
BUYBACK RESULTS -
CEO Jeffrey Reid states "KMAG is on target for its annual growth projection in both Sales and Profits." During Q2 the Share Buyback was completed adding another 37,100,000 shares to the control block of the company. Additionally preferred shares were converted into Common Shares to a total of 140,579,804 shares adding to the control block and depleting any further shares to be issued to the capacity of 750,000,000.
Good post and agreed. This suspension can be great or can be the death sentence. I would hate to see my brokerage account go red, but at least this will be it, no more of these bullsh&t emails and dancing back and forth with promises.
Take a deep breath everyone. Anybody can make assertions about the accuracy of reporting my KMAG and file a complaint with the SEC. Frankly, their filings look like they are done by a 12 year old so I can see why concerns would be raised. If a complaint is filed and the SEC has even a hint of reasonable doubt, then you will see a suspension like this. If the company ends up cleared and in the mean time JR releases some information, buy pressure will build during the suspension and when the stock can trade again it will sky rocket.
Obviously, if the SEC does find major defalcations and JR stays silent then yes, we are all in a lot of trouble.
Look under that article that was posted Friday here on Ihub, that marketing company seemed to be making A LOT of accusations, I am curious if they are the ones that filed a report with the SEC.
Therein lies the problem..what news would we possibly get to send this north? The company has no revenue in the foreseeable future.
Maybe for the next PR that comes out we should all just be dead silent and not say a word so when the flippers come for their daily spoon feeding they won't know what to do
Nothing real? LOL, guess you haven't looked at Q2 yet
Agreed! It doesn't bother me any, I certainly didn't invest in this stock because I thought it was one where I could get inside information from Ihub members. I invested because this stock doesn't belong down here in pinky land. As these emails continue to be shown unreliable we are just losing more and more traders and flippers so I guess I am okay with it.
Bro, I have seen you post this stuff about 9 times this weekend. I don't know if you are trying to convince yourself or others, but I wouldn't be overly confident just yet. Jeff's email two fridays ago said "yes" to BB numbers that week, the his email last week said BBs with filing, now it is PR before the bell Monday. Whether he is lying or his counsel continues to tell him to hold off I don't know. I do know that these "emails" have been incredibly unreliable.