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It takes more than great products to make a successful company. How do you think they are going to succeed? How do you think they are going to overcome the operational and execution risks they have now? How do you think management is going to restore investor confidence?
This is yet another opportunity to load up. Fundamentals are intact.
Surprise..surprise! This is the fourth time a sell-off occurred along with SEC filing. So what is the big deal?
On Nov 7th with the news release of an 8K stating LOI, Market opened and closed at .2. On the same day PPS rose to .25 and dropped to .18 on 3mil shares traded. That's a heck of a buy and sell-off.
On DEC 3rd,SEC filing of an 8K stating Entry into Material Definitive Agreement came out. PPS opened at .25, went as low as .22 and closed at .23. Do you see a pattern here? Oh...to your surprise!...there is more.
On Jan 22nd, the company came out with a 10Q. We all remember a 5 cents PPS decline from .22 to .17. As painful as it was to see that happen, the stock immediately bounced back up.
And yesterday after the 8K came out PPS dropped from .24 to .21. Surprise!!!
If you were shocked by what happened yesterday, where were you for the other three times the stock acted terrible?
In addition, out of the 660K shares traded, 43.13%(280,600) is from naked short selling.
All in all, this has become very common with this stock. There are pro traders that scalp and profit from amateurs like me. Watch out! This alone is not big enough to worry about.
Best of luck! May the lord give you patience for you have invested monumental money, time and effort into this stock.
The stories add up and sound very interesting. Bought more today and hoping to add more soon.
The ship may have sailed on this one. A promo that everybody knew about on the streets before it went public is not a good thing to begin with. When that is followed by a significant sell-off and price decline, it's even worse. Once a promo loses momentum and reverses direction, it takes a while and miracle(considering the rarity) for the pps to bounce back up.
I don't think there is a promoter that will allow pps to drop sharply hoping to buy more at a cheaper price and go for another run. Usually the second time around, it is difficult to attract buyers. It puts a huge question mark on the credibility of the people involved or spread rumors around.
Putting money in this stock is extremely risky as if shooting in the dark. You would't know what is ahead of you. That makes it exceedingly risky. No fundamental change clues to bet on.
Most importantly, when you consider your opportunity cost, this stock is completely unattractive. For instance, other mining stocks that you had been following for the past several months seem to be holding up and preparing for a rally very shortly. Is it better?, IDK. Would it happen? IDK But I think it has less risk, better reward, and you know what type of company you are dealing with. BTW this other mining stock is just an example because you can relate to it. As an example, for that matter, I could have picked any other stock with better potential than HYII.
Celtic, I know that you know what you are doing. You are a good person, and I hope that you are right. Best of luck for all!
Kirk, what do you know about this company? I need some info! Thanks
Sounds very interesting. Will do DD and join the ride. Thanks for the insight.
Hefty blocks traded in the past 5 minutes. 200K, 100K, 93K, 70K, 50K. Price strongly supported at .05 and it seems to be basing at this level before another rally.
As we all know, trying to bottom guess a falling stock is dangerous and highly risky. It is like catching a free falling knife with a bare hand. Particularly, in this case, the remaining "longs" don't care about the market value of PROT. They are prepared for the worst and don't mind if it goes to $0.00! All they are interested in is the new Co's stock. The majority don't believe in StromaCel (or the current PROT) to bounce back as much as very few do.
What does this mean? As soon as the company comes out with a news confirming the completion of the spin-off, all of those people are going to salvage this stock at any price that is better than $0.00. There will be a sell-off at the market. This increases the risk of buying or holding this stock tremendously.
In addition, shorts are bright. They are no average traders like some of us. They know what they are doing. So it's always important to take caution when you are playing against them.
In conclusion, momentum, sentiment, history of the stock, timing, and shorts are against you.
I am not saying I would sell. I would buy, but the price has to be right to take such chances.
Can you justify why you think it would bounce up?
The transfer agent has nothing to do with this. By this I mean that they are a third party who will do what they are told when they are told as they are told. They can't tell you what's going on as of today because they haven't heard from the Co. so that they are not legally allowed to confirm or deny that the spin-off has occurred-YET. They are protecting themselves and being legally correct.
You may ask why wouldn't they know anything about this yet? Well, the company is not obligated to tell them anything.
From what I have heard from my brokers and corporate actions office as of last week, there were no public filings on behalf of the new Co. to trade on the GXG; in other words there was no ticker listed on the GXG-YET. This may have changed over the past few days. IDK! This implies that there is no officially listed shares on the GXG for the transfer agent to distribute to those who are entitled. Nothing in the books-YET.
The company hasn't come out with any announcement because there MAY be a lot of paper work and process to go through before it is officially listed on the GXG. Or they may have other reasons.
The best answer to all the questions we have is TIME. If anything, they are buying time for whatever reason. Maybe they don't want the stock to get killed, if they officially announce that claimants will get the spin-off, which would imply it's safe to sell. It's one way to support price, why not? Coming out with such PR is a hidden negative for this stock. I think they know that-maybe. Maybe they don't wanna say that they failed to get things done on time and appear incompetent. There are a lot of potential explanations...Ultimately what do I know? Only that I don't know anything.
Yes. He said, according to the PR, we will receive the shares of the new company so long as we held the stock by the close of last Friday.
He is an attorney of the company and there is no doubt he is speaking from a legal stand point. People in his field often are very selective of what they say and very rarely give a direct confirmatory statement unless they are sure.
The message was clear and simple:
"Proteonomix, Ltd....will issue to all shareholders of record at the close of business on January '18', 2013, the same number of shares that they own at the close on that date, without further payment of any sort whatsoever."
There were no other announcements that suggest otherwise. The series of press releases provide a solid legal ground for you to claim the shares of the new company with no further action required as long as you owned the stock by the close of last Friday.
I got out better than .76 and managed to take profit. You may ask why I sold?
First, this move was similar to any other dividend play. What makes it different is you are receiving a stock with unknown value instead of a certain amount of money per share. This makes it difficult to find a bottom or post-dividend support. Plus the momentum rally was expected to end on Friday. So who was going to support price? Nobody big enough (individually or collectively). If I don't know my risk, I won't be in a stock.
Second, as of today, the future of this company is difficult to predict. In fact, we know nothing aside from the trial going on and a bunch of speculative optimism. I would rather wait for a news (about Stromacell and its future) and pay higher p/p to buy again. That way I know what the risks are. In this case I don't, so I got out.
Third, shorts are still around and from what it looks like they won't be going away anytime soon. (over 100K shorted between last Tue and Fri; 81K today) This means that you will have some competition while liquidating. You might be forced to put a lower offer depending on how desperate and patient you are. Why bother?
Fourth, my trading philosophy (I would rather miss an opportunity to make MORE money than lose principal and unrealized profit) Notice MORE being the keyword. I'm aggressive but not greedy. Especially in this case where I had a 110% strong feeling that the stock will lose a lot of value very very quickly.
Fifth, I went with my feeling. It's always good to have certainty and confirmation for it makes decisions easy. I am sure that a lot of you wanted and would have loved to sell at a higher price but were not sure if you were getting the spinoff. I thought the same thing.
In general, I hit two birds with one stone. I made profit, and I'm getting the spinoff. Worst case scenario, I would have to call my lawyer.
Thanks for the tip! Do they accept incoming transfer of such securities? I need a backup for my Etrade account; in case things don't turnout as planned. You never know, better to be prepared than sorry.
Thanks!
Attn: Etrade users!!! I need info regarding how to handle the stock exchange and liquidation after the new company starts trading on the GXG. I called etrade, but wasn't satisfied with their answer. Thanks in advance!!
As of now, we don't have a well putout projected operational cash inflow statement for the near future which will make it difficult to calculate the value of the stock using the traditional way by finding the present value of future dividend payments and what not. So it comes down to valuation of the company.
However, after the cash infusion, almost all the company's asset will be $cash money$. This will make the stock valued at equal or better than the book value.
As of Aug 30, 2012, the company has net tangible asset roughly -3,200,000. They would probably incur some closing costs, lawyers and other general and administrative costs which I would roughly estimate $2mil(could be more or way less; it's a random guess). Of course the company has total asset of $252K which is negligible as compared to $90+ mil, so I ignored it.
In total, after the company settles debts and covers all expenses, there will be roughly from $93mil-$95mil on hand. When you divide this numbers by the # of outstanding shares, the book value would be some where around $.9 give or take a dime.
$.9 is a pps that the stock will attain with ease fundamentally speaking. You may ask why? Because for value investors, anything below this number(undervaluation) is a buy(bargain) and they are not willing to sell for anything less than that.
Then comes all the investor sentiment and what people like us think where this company is headed. Unfortunately it is hard to calculate that, at least for me. It could be positive or the other way around. If you ask for my opinion, I think it's positive. I will say this though. Everything will depend on how aggressive the management is and how quick they get to work to get some gold out of the ground. We don't know whether they have a well putout plan and if they are prepared to act fast. Do they have the right people who know what they are doing? I don't know. Of course with
$90+mil cash, they can put together a good team and move forward.
This is amateur work, and I hope you are not looking for a precise number.
I agree Celtic. That's why I don't care about what he says or even what he thinks.
I assume that the promoter is merely unhappy about the lack of aggressiveness both from the USPR management and the JV group. When you think about it, a $100 mil deal should be given a priority over holiday break and Christmas parties which makes you question how serious all the involved parties are.
In addition, as the closing of the deal is extended and pushed back longer and longer, it is giving more time for all potentially negative events that could go wrong and ultimately prevent this deal from happening. Who knows? The JV group may encounter a better, more enticing and more profitable investment opportunity and they could flip like a switch and change their mind before we know it. I don't mean this will happen, but at the same time everything is possible. My point is that uncertainty is growing which might increase the risk of holding the stock.
I am a believer and an optimist. I hope and think the deal is likely to happen. If you are like me, you don't want to hear what I stated above nor any pessimism. But at the same time we have to be realistic and consider all the what ifs and prepare for the worst.
At this point, the one thing I know for sure is that I don't know anything and anything can happen.
I am new to this stock. Any advises and anything I need to know about? Thanks!
Do you expect any buyback from the company as soon as the deal is completed? The company owes the JV group 10mil shares as part of the deal. As of now the difference between the float and outstanding shares is roughly 13mil. It is not a smart idea for the company to issue that much amount of shares from the 13mil they have left nor it is not a good decision to buyback after the stock takes off sky high. I'm trying to think of how they are planing to use this opportunity to maximize the value of the company.
I don't have a deeper understanding of how SEC regulations will prohibit the company from announcing a buyback along with the news for the completion of the deal. Any thoughts?
Technical indicators are looking very convincing. http://www.barchart.com/opinions/stocks/USPR
Attn fellow traders,
I am new to this stock and I would like to get a better understanding of traders' sentiment, any short term target, and any speculative suggestions and short term expectations there are.
Xeng: I was thinking the same thing for the past few days when I saw a handful large offers (50K+). From our perspective, selling at this point is ridiculous. The fact is that we are basing our judgement without knowing "why" these people are selling. Possible explanations may range from the worst "they know something we don't know" to perhaps "they desperately needed some cash" which we don't need to be concerned about.
Regardless of who the seller is and why they are selling, the volume increase in the last couple of days alone is a testament to hold tight. Tuesday's volume took the stock to a new high in a while and Wednesday's volume defended the stock from going below 23 cents.
Also the daily significant increase in volume indicates entry of last minute buyers with a fresh insight. They must be highly optimistic of what is coming ahead of us.
I hope so.
Great momentum leading the way for tomorrow's opening.
Celtic: I think this stock could actually move contrary to your predictions.
Same here. Heavy loaders seem to be trying to get out.
I think so too. This week is going to be monumental!
Can you think of any reason why the head office would be open at 7:15PM on a Saturday, not to mention it's a thanksgiving weekend? What should we expect to hear on Monday, a good news?
What do you mean by a "HALT" in trading?
Same here.
I was wondering why so much interest in buying all of a sudden? We never know, news could come out before the holiday or even before open tmr. I am just speculating.
It shall gap up tomorrow morning.
It's not the News. It is being promoted by some big names.
Which one are you?
I agree. It looks like a market order of over 100K shares.
Once again NITE doing an extraordinary job in narrowing the spread, keeping the offer at $.18 and waiting to buy 30,000 shares at $.1612. This same individual was selling yesterday from .206-.215. His pricing indicates that he is a very skilled trader. While I was composing this message he raised his bid to $.176. He seems to be a very patient trader and to raise bid abruptly could be taken as maybe he doesn't think the stock will trade any lower. Is that a good sign? Maybe! The question is why does he keep doing what he is doing. Scalp 30% profit every now and then? That is possible!
I sense that he is also long on this stock. Most of us set a price as our destination and wait around to see what a good news brings. NITE, however, sure as hell knows what enjoying the journey means. It doesn't hurt to have fun on the way to our destination, does it? No, especially when it is a profitable one. Well played NITE.
Anyways, my point is fellow traders don't fall for his trick and don't panic. The tempest shall pass and the sun will rise beyond the horizon.
Guys, I don't feel any different from you at all. I don't listen to what the promoters say. I was just curious, though I understand that it is not even worth considering.