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Death Spirals are very interesting in this space. The most important thing is to keep the volume up and keep the game going.
Let's do the math on the Beaufort and Iconic deals.
1. Beaufort "acquired" 56,581,818 shares
2. Iconic "acquired" 56,672,728
If they filed properly, we know within 10 days at what price they got their stock.
Let's say the market at the time was .0001 X .0002 and they were able to get liquid on all shares they "acquired" at .0002 (they didn't).
Beaufort's gross would be $11,136.
Iconic's gross would be $11,334.
It is probably a nice ROI but hardly worth the effort (the legal work costs that much). However, there is a possibility, if their downside reset was set correctly, they could each still have tens of millions of shares, possibly as many as they started with.
I would think that if the company does another reverse split, as soon as it is completed that they would have to issue these two entities the amount of shares they held before the split.
In my experience companies that "invest" in companies like Omega are implementing a death spiral play. It used to be done by PIPE investors years ago. This is just the new play.
In the meantime unsuspecting small investors get hurt.
As these companies will have an Adjusted For Splits and Anti-Dilution clause in their agreements I am sure they will be fine. The observations I have made over the years is that the public companies do not go to zero so quickly.
This one has been very profitable and extremely interesting.
Kd1911 do you think they are crazy enough to do two reverse splits within a year. That would also mean they reverse out Beaufort and Iconic.
Dbow I love it here why would I leave. I love all the stock stock available to cover at $0.0001.
I am sure you know much more than I do. So, if not a dilute and dump, what would you call what we have seen with this company and its stock since August? A uniformed distribution?
Then you must not have needed to learn anything about a Dilute and Dump. This is textbook.
Stick around these guys aren't finished.
This company is overvalued with a market cap at $85,923K.
Citadel is back over on the offer.
I was wondering when Citadel would show up on the bid. They are trying to shake out weak longs and then moving over to the bid to sell to the weak shorts that can't hold to the death. They aren't going out on a limb posting 100,000 shares.
Speaking of death, If Beaufort and Iconic haven't made their money I don't believe there will be a reverse.
At zero the death spiral companies will have a difficult time making making money. They need volume. Unless they have already gotten liquid.
Funny. Then again they need to print stock to make the money to buy the printer...maybe they can sell some 18% preferred stock to buy the printer.
Legal fees don't accrue to the company.
Real companies reap the benefit of selling shares to the public and using the capital from the sale of those shares to execute business initiatives.
Since we know these guys aren't going to actually raise any money with these registered shares, other than paying their creditors with the worthless stock, what do we think the motive is.
There was obviously an ulterior motive for filing the S-1.
They have have filed a few of them over the years and basically paid vendors with it; then reversed them out anyway.
You said it Kd1911, delusional. Mentioning the New York Stock Exchange and Omega in the same sentence is just ridiculous.
Although I don't think they expected the stock to go to zero so quickly, they have successfully executed the dilute and dump. Now, unless they want to go out and get jobs, they have to do a pump and dump. Issue more shares to themselves, start putting out deceptive press releases and look to cross their shares into the hands of the unsuspecting small investors. Doing this will allow Beaufort and Iconic to also make money on their shares.
It will be interesting to see if these alleged dividend payments on the alleged preferred shares show up in the 10K.
Am I allowed to give you my info on this board?
KD1911 a gentleman I have known for over 30 years sat with Avenger Flight Group - the company Omega financed the flight simulator fro - and there is a lot of nefarious issues in that deal. The head of Avenger wasn't even aware of the press release.
It is an interesting story if you want to take it offline.
There was room between $0.00099 and zero bid: $0.00098 etc. and so on and so forth...down to zero.
This just fell off the table at with a few flashes at $0.00099.
Still there was room between .00099 and zero.
Did anyone actually expect this to go ZERO bid today? I thought it would take a little longer.
This is a shame, but I think we all saw it coming.
Dynamic? The only things dynamic about OCFN is the changing stock price - downward, and the amount of shares outstanding - upward.
The operations of the company are static - it is business as usual. Dump stock to pay management so there is no need to build a company.
It does seem to get uglier by the day. Although, it does look like it may have bottomed here.
Using that theory the run should have started in August.
Nice opening trade of 195 shares - $0.039. Must be a heavy hitter coming into the market.
Isn't that how a dilute and dump works?
Boxed Market
Give us an update on that if you do talk with them.
Ha! I was new to investors hub back in December when I started trading OCFN and that guy drove me nuts so I stopped signing on. I think he was full of it.
You may see a dead cat bounce when the shorts start to cover. Although a dead cat is a polite term for what this company is.
I agree that there was very little risk in taking a short position in OCFN. I went short at .0298 on October 18 and it has been profitable ever since. I unraveled my position last week because It looks like the risk is building at these levels for a short so it is time to sit and watch to see if Cummings is crazy enough to run it up.
Whatever happened to VARGSS?
This Company Will Never Uplist Enjoy Trading It but let's not be ridiculous.
Will It Matter When They Announce The Termination of the acquisitions they announced late last year?
I Disagree on the Debentures. There is a Pre split total convertible, and there is a post split total convertible.
Any time you split, or reverse split the common stock in a company, it affects the total capitalization table.
Post Reverse Split would reduce the number of shares in which debentures are convertible by a factor of 20,000 to 1 (One million would be reduced to 50, as shown in the S-1).
As there is no mention of any ratchets in any of Omega's sparse filings, and the S-1 shows the reduction (as I have mentioned it previous posts), one can only gather that there aren't any.
If I owned debentures, I wouldn't be converting, I would be filing a lawsuit. That could be next, these things take time especially in this space.
As far as Jonathan Cummings's shares being restricted, that is not even the least bit humorous.
Things will be clear shortly, just don't get caught long.
THE ONLY SIGNIFICANT SHAREHOLDER WAS JONATHAN CUMMINGS prior to the huge volume increase and dramatic drop in the stock price.
As an insider, you are well aware of this.
After authorizing and executing a 1:20,000 reverse split, effectively reversing out all stakeholders (there were less than (30,000 shares outstanding post-split)), Jonathan Cummings Issued himself 50,000,000 Common Shares (40M to himself and 10M to a subsidiary that he controls) for services rendered. He also issued a small number of restricted shares to consultants and for purported "acquisitions".
The Debenture conversions are minuscule because their conversion ratio altered by the reverse split.
We know where the selling is coming from, the question is where is the buying coming from.
When Someone Walks Into the SEC With Evidence of something that appears to be as blatant as this, they will take notice. It takes time but, they are cracking down on much smaller issues.
There are a lot of things that are going to need to be explained.
I hope we are wrong about this and they actually create something, but it is not likely.
No Appreciation for Insiders Touting Stock
Vargas,
You can LYAO at our expense all you want. However, it is hard to find it funny when an insider touts a stock; especially one in a company as circumspect at this one. It flies in the face of regulation and hurts people financially that can ill afford to be hurt.
Before you shared your insider status we just thought you couldn't read or do math. With this revelation, it is clear you have even bigger problems.
Feel free to continue to laugh...
Time To Review Vargass's Omega Touts Since 3/13/114
Since Vargass is an insider, and happy to disclose information, I believe we should all review his comments since March 13, 2014.
All will be revealed soon,, just don't be long when the TRO hits.
Oops, Vargass is on the Inside?
If you are on the inside you should not be on this site touting this stock.
If you are actually an insider, you should speak with counsel, I am sure he would suggest you amend that statement. If you are not an insider, he would probably suggest you clarify the statement.
A suggestion may be that you are talking to someone on the inside.
Either way, it is going to be interesting.
Vargass: Facts Seem to Make You Angry.
I Would Love the Speak With the "NEW CEO".
Before we set up the call with this "NEW CEO" Eran Danino, can you direct me to the 8k that discloses the appointment of Mr. Danino to CEO?
Again from the S-1 dated November 25, 2014 (25 days ago)
Directors, Executive Officers, Promoters and Control Persons
Directors and Executive Officers
The following table sets forth the name, age and position of each person who is a director or executive officer as of the date of this prospectus.
Jon S. Cummings, IV 44 Chief Executive Officer, Chief Financial Officer, and Director
Clarence Williams 67 Director
Jon S. Cummings, IV has been our Chief Executive Officer, President, Chief Financial Officer and member of the Board since 2007. Since 2005, he has been the President of our subsidiary, Omega Commercial Finance LLC which is engaged in and domestic real estate development projects valued at over $100 million. Mr. Cummings is responsible for our day to day operations including communications to employ additional personnel in the future which are expected to include real estate analysts, surveyors, licensed appraisers, and real estate brokers. Additionally, he is responsible for overseeing the internal underwriting department to achieve the maximum value in our origination and lending activities. From 1996 to 1999, Mr. Cummings was employed as Vice President by J.S. Cummings & Associates, a company engaged in commercial and residential real estate development. From 1999 to 2005 Mr. Cummings was responsible for construction management and budgeting at African International. Mr. Cummings graduated from Ohio University in 1994 with BS dual major in Pre-Law & History.
Clarence Williams has been a member of our Board since 2008. Mr. Williams has 45 years of demonstrated experience in business administration and management. He retired from the City of Dayton as Chief Executive to the Dayton City Council from 1973 to 2005. During that tenure of 32 years, his responsibilities included the review and the assessment of the city’s $800 million general and enterprise fund budgets. Mr. Williams has facilitated workshops and training seminars across the country and in Russia, Israel, Zimbabwe, Zambia, Liberia, and South Africa. He has served on numerous boards for government entities and non-profit organizations. Mr. Williams has a Bachelor of Science degree in Business Management and a MBA graduate degree. He was selected as a George Washington University Fellow; Elliott School of International Affairs and focused on international global economic development opportunities. He was certified at the Senior Executive Institute, University of Virginia.
Four Days!