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crooks
I love how one of the insiders goes and buys 100 shares pre-market in order to make it look like this piece of junk is up 30% before they dump all the shares from their units on you guys. Don't you see how this one starts out up almost every morning only to drop double digit percentage points by the end of the day? Meanwhile, some of their scammer friends get on these boards and tell you this is going to 5 or 7 cents... not a chance.
Every day they convert their warrants and sell more while some poor suckers who figure this HAS to go up eventually get stuck holding the bag. These guys will pay soon enough, though. They are being watched.
I told you so.
I've been posting on this board for months now. I warned the insiders that they were being watched and they would never get away with this. Now the delisting. What's next? Let the shareholder lawsuits begin. Clearly, nobody at this company ever had the best interests of the shareholders involved. We might see some piercing of the corporate veil.
I just don't see how it could be with all the shares that will have to be issued from the warrants. I think most people that are new to this stock might look at the small float and pps and just assume it will explode. But they would be forgetting about the units.
You do realize...
that the units are about to separate, correct? Before you get too excited about this going anywhere, I would make sure you read up about VPCOU. This thing is about to be majorly diluted in about two days... looks like it's about to be a great short candidate. Anybody that buys in the next day or two is probably going to get wiped out soon.
Here's what's happening
By the time Sabby had to report they were buying shares with the SEC, they were already unloading them on the unsuspecting public. Then the insiders shorted this thing down so they could get more shares when the units separate and get rich off all the suckers that bought in at a high price. Now, the company is going to release all sorts of news reports touting good things about the future of this company so the insiders can unload their unit shares. I've called this from the beginning.
If you've been burned, make sure you contact a securities lawyer and the SEC. It's about to get worse, in my opinion. Look what happened to GBSN.
I would bet you anything that Sabby already sold its position. They just file these suspiciously late filings to make people think a fund would invest in this stock. They're just another player in this scheme that's going to get toasted.
Sounds plausible. No pre-market action, though. Figure we would have seen a bump...
I'm still curious about the units. I'm wondering what the 10% of unit holders that declined the offer know that we don't...
I think this stock goes wherever they want it to go, whether that's up OR down. My bet is that Sabby Management got out immediately after they got in.
On the one hand, removing the offer would seem to be good for the common stock because now there's the potential for significantly less dilution if the share price climbs. However, there remains the fact that at least ten percent of unit holders felt confident that the price would drop and thus they would be entitled to more shares, which is the only logical reason I can determine for rejecting the offer.
That may be true, but it was technically never out of play. Also, the offer was probably good for the units, but bad for the common stock. Who knows now... I expect that this will be huge for the common stock, but what do I know at this point?
I agree with this. The unit owners will find a way to come out ahead. If I had a guess, it would be the same as what we saw with ASTI... you will get some "strategic news" that creates enough buyers for them to sell their shares and make a nice profit.
The warrants in the exchange offer are supposed to act as an incentive to NOT sell immediately. Just because the shares from the units hit the market does not mean the pps will automatically crumble. That is caused by the selling. The only way people can cash in the 64 warrants from the exchange offer is by waiting for the stock to appreciate by 20 percent.
Also, the share volume for VPCOU must also be considered when calculating the new volume for VPCO. A lot of people that were trading VPCOU will now be trading VPCO instead. Hard to say what effect that will have.
But long story short, there will almost certainly be much value in the units. Just hard to predict where.
VPCOU
Don't forget about VPCOU. In my opinion, that's where the real value is right now. Do yourself a favor and research the exchange offer. They are trying to hide the ball, but there's still time for you to find it.
Correct me if I'm wrong, but with the exchange offer, couldn't that date now be as soon as the date after the expiration of the offer, which would be January 14th? Maybe I'm missing something...
Where are you getting the 25th from?
Well, more likely the 14th. Because of the exchange offer. Right now, if you tender your unit in the exchange offer, you are entitled to 128 shares of common stock and warrants to purchase 64 shares once the exchange offer expires on January 13th, assuming 90% are tendered.
Right now, 128 shares at .30 a share is worth $38.40, which is the best value for unit holders. But you have no one to sell to, so some strategic news would give you the volume you need to unload a bunch of shares, followed by a reverse split on January 21st to make sure your warrants are in the money, followed by more selling. Everything they have done has seemed so "orchestrated".
Watch them pump this on January 13 so they can find unsuspecting buyers for the common shares of their tendered units. Then watch the law firms all pile on like they did with GBSN. Total amateurs here.
Toxic
Have you seen what happened to VPCO since Brauser and Honig bought in? Take a look at how far it's fallen in the last year... do you really want to buy stock in a company that these guys are associated with? And if so, why? In my opinion, IDI for shorting. How long until the same thing that happened to VPCO happens to this?
Philip Frost once invested in VPCO, so that shouldn't help you sleep at night. Just do your DD and figure out who you're dealing with.
I don't think you're going to see the type of gains you're hoping for. I still think all of the value is in the units. They just don't want you to know.
I bet you will see something just like ASTI. "Good news" right around the 13th so their unnamed friends (the unit holders) can unload tons of shares while the unsuspecting public can snap them up, but not a lot of movement in the share price. They already did a lot of unloading every time they put out an ad about the new stores. They claim not to know when their friends will sell their common share, but do you believe that? The original unit holders are the ones that are in line to get a big payoff, and they tried to hide the ball by changing the date. But they are being watched.
I'm not an advisor, so don't take my stock advice. But in my opinion, this thing has manipulation written all over it. I haven't been wrong yet...
They never told us. But I'm sure it was their friends. And the friends are probably still holding onto the units, and will tender them in the exchange offer, unless too many people catch on, driving up the price of the units, in which case the insiders would just sell the units on the market.
The losers, in my opinion, will be the common share holders who are probably mostly retail investors- the ones who got suckered into the story of a turn around through paid advertisements, and are hoping to recoup some of their investment, holding on to dear life. Instead of trying to prop up the common share price in order to prevent dilution, management cuts this exchange offer to give even more shares away for free to their friends who are still holding on to the units. It looked like a scam from the a million miles away, in my opinion.
I bet we see the heavy selling resume tomorrow. If a "reversal" is in order, we probably won't see it until right before January 13th, the day the exchange offer goes into effect. Then the insiders can cash out on their windfall with strategically timed news from management to make all their friends rich. In the mean time, they don't want you getting too excited or knowledgeable about their precious units, so they'll keep quiet and keep the prices low. And even if/when they do pump, it won't be anything to get too excited about knowing these guys. They don't want people making money off of them. Even if this only goes to 20 cents, that's $25.60 of common per unit for them, while all the suckers get left with the common shares they sell ya or the worthless units you forget to tender.
But people will be ready for them this time.
Oops. Meant to say $128, not $1280. Excluding the value of the warrants.
Oh boy. First of all, the market makers are just playing tricks on you. I wouldn't put too much weight on the bid support.
Second of all, if VPCO made it all the way to a dollar, who in their right mind wouldn't tender the unit? It would be worth $1280 at that point. The unit value grows at an exponentially larger rate. But they hope you're not paying attention.
I'm not disagreeing with you. In fact, if you look at my history, I've pretty much been spot on about this whole scheme since I've been posting on this board. They have been exposed, and their time will soon come.
However, I am simply pointing out to people that are waiting on a pump, that if a pump WERE coming, would it not make sense to buy the units and follow the exchange protocol, since 128 shares will only cost you $4.25 with the units, but $17.92 for the equivalent amount of stock at the current market price? Now if too many of you catch on to that, they probably won't do a pump at all, because they are greedy, which is why they left themselves an out with the 90% redemption clause. But remember that the key date is now January 13th, not the 23rd.
Everyone has to pay the piper at some point. And it will soon be their time.
No offense my friend, but the last time you hinted that a big run was on its way, the stock dropped 30% the next day. I'm not sure your instincts are to be trusted at this point.
Again, I'm not an investment advisor, so don't take my advice But if I were going to make a big play here, I would buy the units and tender the units. I would follow the instructions carefully. The units aren't just ten shares of common any more. They are 128 shares, for roughly 3 cents a share. If they were going to do a pump, like you suggest, then the units would be where all the value is, no?
Of course I'm not advocating you purchase anything from these people, but if you were to purchase something, why wouldn't you buy the units? At $4.25, you get 128 shares if you participate in the tender offer. According to my math, you'donly paying around 3 cents a share instead of the common share price of $.14 a share right now.
If you're expecting a pump, then why not buy a lot more shares at nearly a fifth of the price?
* I meant to say "artificially deflate the units", not the warrants. But if I were making a big move- this is just my opinion,of course- I would snatch up tons of the units and tender them. I could always withdraw the tender if I changed my mind. The misinformation I've seen lately largely seems to ignore the exchange offer, which allows them to run a pump scheme without decreasing the number of shares that unit holders would be getting.
That just seems too predictable... but when have these guys been anything but?
The most logical starting point for a pump would be just prior to January 13th. That way they could keep the price low in the mean time and artificially deflate the warrants so they can buy them back on the cheap. Since they are guaranteed 128 shares by the exchange offer, I wouldn't be surprised to see a pump that brings the common back up to- oh let's say somewhere around 30 cents- prior to January 13th, the date that the ability to tender the units expires. 128 * 30 cents is just shy of $40. Then we could see a massive sell off around the 13th, driving the price back down to nearly nothing before everyone that didn't tender their warrants loses a bunch of money.
Of course this is just conjecture, but seems like the most logical move if they were indeed running some sort of scam. But people are watching.
The truth is- and I've been saying this for a long time- these guys are just a bunch of crooks. It really takes the lowest form of life to do what they do.
It has never looked to me like they are trying to run a legitimate business. There are so many holes in their business when you look closely. To me, it looks more like a front they use to take your money. What company can lose this kind of value and keep the same management? If you do your DD, you will see that the people associated with this company have a proven track record of driving businesses into the ground. From the president, to the CFO, to the CEO and the members of the board, it's all the same... they are here to pillage the company and leave you broke. Even the underwriters and some of the "institutional investors" are in on it. Why else would people like this be in charge with such a poor track record?
The good news? First of all, they are being watched. I can't say much more than that, but just know that with time will come their just desserts. In the mean time, you can either short or stay away.
- All Opinion
Violation of fiduciary duty? Besides all the other crooked stuff going on here, you would think management had a duty to not offer so many common shares in exchange for the warrants. They are practically just handing them away for nothing.
Good for short term would be legitimate news that they are trying to build a company. You know, like the fact that they were acquiring more stores (except every time they announce that, insiders sell). What happened to their patent? Or the franchise program?
I called it. Totally predictable.
Insiders needed a way to get their money before everyone else. Right now, they are locked in to the units, and people have caught on to their games, so out come the smoke and mirrors. This "exchange offer" is much too valuable for unit holders and dilutes the common stockholders even more. They will get 128 shares of common stock for one unit (currently trading at six dollars)?! Do the math: at .20 a share, that's $25.60 worth of shares, not counting the warrants. That's way too many shares. They are going to do a quick pump, and flood the market with their shares, and this thing will be dead before you know it. I smell a lawsuit.
They have been doing that for months. Look at the charts. It never gets as high as previous highs so that investors who bought on an upswing never recoup their losses. It looks like total manipulation to me.
Even if this does climb a little, it will only get crushed again. The last time we saw hondaboost on these boards, the same thing happened. It went up a little, then dropped a lot. It's the same story here. They keep the price low so it's harder to short, and bank on people buying in and hoping to get rich. But the street is catching on.
Probably a bunch of wash trades caused the volume spike if I had to guess... there was no news that I'm aware of. These guys are very predictable... all working together to keep the pps down in order to get more shares from the units is what it looks like to me. Technical analysis doesn't ever seem to apply. Once the street figures out what they're doing, I bet you'll see lots more people shorting their various companies. It's just too easy when it keeps going down; they're not even trying to make it seem like they care about the business.
What exactly would cause shorts to be in a panic?
With the way they use reverse splits, there is no bottom. This is now seven out of eight days that this stock has been down. They will milk you dry. They have run this same scam with tons of other businesses, and will keep doing it as long as the sun keeps coming up. It's very predictable.
That's why, in my opinion, it's best to short anything that they get involved with. I have some plans to make some extremely large bets against some of their other companies once this all plays out, because it's just too easy.
People have been saying that for the past year. It was around this price only a few months back when they did a 5-for-1 reverse split to get the price back over a dollar, and wouldn't you know... here we are again, back in the 20 cent range. Remember that insiders get shares a lot cheaper than you do, so they have no problem selling them and "hedging" (shorting) at the same time. Almost every stock these people are involved with go down seemingly by design without ever coming back up. I'll be shocked if this thing ever makes any sustainable gains, but good luck to you.
Good luck... down 17% so far today on no news? Pretty typical. Easy money for shorts. Longs just get burned.
Well, like I said... the gist of it is you want to exercise the warrants so that you get the most shares, and then sell them on a pump ("strategic news"). This will be at the end of January so you have some time. There's no point in going through it all now when the separation is more than a month away.
On a separate note, this has become one of the most predictable stocks in the market. After nearly a year straight of drops, even with good "news", this company just continues to go down. The management is full of people associated with wipeout scams, and it's been easy to make a lot of money by shorting this stock and any other stock they are associated with. It's almost like they don't even try to hide it. I actually am surprised we haven't heard about a lawsuit after they were called out back in July in Seeking Alpha (see "IDI: Strong Sell on Fraud Lawsuits, Bankruptcy, and Technology Failure, -92.4 Downside" if you haven't already). If you do some due diligence, it's easy to figure out other companies this group is destroying and make lots of money by shorting them too. They like to make it harder to short by keeping the price low, but they telegraph their movements... we've seen over a 60% increase in short interest in the last few weeks, and no signs of stopping.
Just my two cents.
I think it's a little more complicated than that. Just because the street may be undervaluing the units (in my opinion) doesn't mean that they are going to trade for a lot more prior to separation (although I do expect to see a slight uptick). I think the value is derived from proper timing in exercising the warrants to get the maximum shares and then selling into the strategic news (pump), which my gut tells me will happen right around the time of the separation, just like we saw with ASTI. If you hold too long, I could easily see someone getting burned, just like what's happened to most that have been long VPCO common stock. I think they tried to trick people and make them think the units would go up the same way that with GBSNU, but these units are a little different, and require the unit-holders to be a little more proactive. Again, I'm not an advisor, so don't take my advice. I can walk through the math at a future date, though.
Good question. In my opinion, the units are actually undervalued by the street. If you exercise the cashless warrants at the right time, you may not only get a whole bunch of shares, but you might get a whole bunch of shares prior to a pump. I don't think insiders have "lost anything" so to speak, because they're holding on to the units. I bet they'll start buying them back soon after they scare retail investors away from them by letting the common stock drop so low.
Is GBSN being sued? I was aware they were being investigated... but because their share price dropped from $6 to six cents in a couple of months. I highly doubt VPCO will be anywhere near six dollars by the end of January. To me, their game is obvious: keep the price low so they get more shares out of the units. Again, I'm not an advisor, so don't take my advice. But have I been wrong yet? To me, this looks like total manipulation. Everything just seems so choreographed. And management to this point clearly has shown no willingness to prop up the stock price in order to avoid massively diluting shareholders.
Thank you, sir. Did you remember to pick up any of your 100k shares when the stock hit .25 the other day?
This stock looks JUST LIKE ASTI. I bet it performs the same. I bet we see a pump right after insiders cash in on all of their warrants in late January. That's why it makes sense to short it all the way down for the next month or so until we get strategic news right around the unit separation. Looks like that's what lots of people are doing, based on the short interest table. If I were long, I'd have to consider getting out (and/or shorting), and getting back in at a lower price before this sucker gets pumped back up. I'm no investment advisor, so don't take my advice. But these guys have been doing everything by the book so far.