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Actually there is a "wow" factor in play.
Watch the trends. For years, the trend has been whenever the volume declines to near nothing, the share price declines.
Now, at least for a brief period, the trend has been that the share price is not affected negatively with the low volume.
It takes money. Money comes from liquidity. Liquidity comes from raising money and making money. Making money in heaps comes from multiple applications at multiple locations. Multiple applications at multiple locations comes from raising money. Raising money comes from selling stock to funding groups willing to meet the scale of enterprise.
AND SELLING STOCK REQUIRES THAT YOU HAVE STOCK! AND SELLING IT AT A DIME NOT BELOW A PENNY. AND BWALAAAAA......YOU HAVE A REAL COMPANY, something you seem terribly uncommitted to.
One of us lives on another planet. There is not a chance on this planet that the scenario you allude to could ever occur.
And everybody bemoaning a reverse split aren't living on this planet either. It MUST happen. It is imperative that the stock have a chance to exceed 1 dollar. That means it is imperative to reverse. That shouldn't be difficult to understand, but apparently is.
You're welcome.
I hope you guys all understand that nothing, but nothing, would please me more to have the sp roll to 50 cents requiring me to come on this board and say, "OK I'm the top nominee for dumbarse of the year." I just don't think it will happen.
Exactly. But a reverse split comes into consideration at the nickel to dime level IMO.
Theoretically, that is true. Theoretically.
Theoretically the market cap should not change. If you have a stock trading at one cent and it has 100 million shares you have a market cap of one million dollars. If you reverse the shares 10 to 1, Theoretically you should retain that one million dollars of market cap, after the reversal, by sending the share price to 10 cents.
Unfortunately, theory and reality often head in different directions. As a general proposition stocks lose market cap following a reversal. Is it a conclusive rule of direction? NO. But if you are betting that a reversal is going to keep the same market cap level or drive it higher, after a reverse split, you are going to be issuing markers real quick.
More times than not investors know that a reverse can have severe negative effect on the share price and quickly reacts, selling off the news. In fact many times the stock price eventually returns to its pre-split price and the market cap is crushed. For instance:
"So the majority of times, stocks that have gone through reverse splits steadily drop in price until they trade at near what they traded for prior to the split."
"investors end up losing a majority of their investment after a reverse split. If you're holding penny stocks or have a penny stocks to watch list, be aware of reverse splits as they can dramatically affect the value of a stock."
Article Source: http://EzineArticles.com/4734546
News of a reverse split necessarily prompts shareholder fear. Fear prompts selling. Selling prompts a falling stock price.
Controlling the fear is the key. Fear is controlled by the shareholders being firmly of the opinion that the share price, prior to split, is grossly undervalued. The shareholders know that the company's product is legitimate and that its acceptance by the marketplace is already established, and all that is needed is time for the company to successfully launch its marketing. These shareholders are a lot less likely to automatically hit the sell button upon pronouncement of a pending reverse split. They stick with the company, because they realize that the company's product is legitimate. They are more inclined to not react impulsively.
The key? Market acceptance BEFORE reversal. Reversals in advance of market acceptance is playing Russian roulette, and that's not a favorite game of mine.
You most certainly did. And then you refused to apologize when it was indisputably proven that your insinuation was completely baseless.
But go ahead and delete this post too.
Cleaningup
Thanks for the private message. Appreciate it.
Carbon credits are selling in the range of 6-7 dollars per metric ton. I thought this is what you were asking for, but now understand what you really wanted to know is what this means for GLEC. Correct?
I'll ask that Carb explain that, because he knows x10 what I know and I don't want to put out wrong info.
Last time. I'm not wasting any more of my time.
I said the upside of this stock is 10 cents.
You disagreed and said, without citing a specific price, that the share price would exceed the upside target I stated. You referred to a previously unknown market theory that a "startup company with as (sic) history of failed startup attempts" militates for your position.
I said your prediction was nonsense.
You seem disturbed by my use of the word "nonsense."
I said that the very definition of nonsense is when you predict something is likely to happen when that prediction has a 10%, or less, chance of actually happening.
So.......the 10% refers to the chance of your prediction that the stock flies way north of 10 cents occurs. When you are making predictions based upon a 10% likelihood of happening, you are engaged in not serious discussion, but wishful hoping.
Wishful hoping usually ends up in disappointment when the topic is stock investing.
My 10% reference had nothing to do with the sale of carbon credits.
Good grief.....I don't know why I even bother.
Not an hour ago, I stated that I believe the first sale could be as early as 2-3 weeks out.
When there is less than a 10% chance of something happening, to propound that it will happen is the very definition of "nonsense."
Well, another day on IHub.
Those claiming that 1 cent would fall easily and then the share price will "fly."
Those claiming that the 8K needs additional detail and that the company is significantly altering its date of scheduled entrance onto credit trading markets.
Shaking My Head.
I don't know how many times I have to say it - and every time I do, I'm proven right - 500 million shares prevents any "flying" share price. How many shares do you figure have changed hands around a penny. I say at least 30 million and here the sp is still stuck at the one penny huge resistance point. And as I have said before, 2 cents will be a bigger fight than 1 cent. And as I have said before, I can not imagine a scenario occurring in the next 3 years that would send the share price above 10 cents, and that is being generous in my valuations. 5 cents is probably the more likely upside target in the next several years. But you guys go on thinking about a "flying" stock.
The latter faction is equally misinformed. I know in fantasy land, GLEC is expected to issue weekly updates through its fully staffed PR Department, make all filings timely, maintain production schedules, and regularly improve facilities and equipment. Yeah, right.
Reality: The company had to choose between completing the registration process, which required an appraisal and upgrade of equipment, or maintaining its reporting status by timely submission of filings. It couldn't do both, In fact, it had to rely on a 3rd party source to do one.
Now the company could have allocated its meager resources to the auditors and it would have had another quarter of timely filings, but would still be on the pink sheets and still be without any revenues. OR it could allocate that money to the appraisers and to the purchase of equipment that would enable a ramping of compost. Doing BOTH was impossible.
Perhaps some people don't understand the definition of "impossible." It means only one of the two options could occur and in no circumstance could they both happen as of today. Maybe some more money will appear in the next several days which would allow the company to pay its auditors but the decision had to be made last week when the appraisers had to be paid. Is that difficult to understand?
The appraisers were in Castbleberry for 4 days and I believe they were duly impressed, particularly since production, with the assistance of several more windrows, was clicking on all cylinders.
The company can not dictate a "schedule" to the Gold Standard or to the appraisers. They dictate to the company. But ya'll go ahead living in the world where the company can just click its fingers and demand market inclusion.
My best guess is that everything will be complete and revenues actually realized within 2-3 weeks. Can I guarantee that? Of course, not. Nevertheless that is my belief based upon what has been done and what needs to be done. My belief concerning revenues is centered around my feeling that the company will have at least one arranged trade prior to actually being admitted onto the Gold Standard.
So you guys go back to doing what you do best - making grandiose predictions of a stock that can't be held back, or fretting about every conceivable thing. Me? I like what the company has done and is doing.
Yes, it is Friday.
Yes, it is tragic. Puts into perspective what is important and what is not.
Clean Tower Technology is not new. Great name for a company, don't you think?
Thanks Freddie. Appreciate that. Tell the Ref he's in our prayers.
To have precious, life breathing revenues immediately. That would enable the company to fund the immediate production of more soil, and the immediate marketing of the soil on the ground for discounted sell. That's the cycle, and the sooner it is started, the sooner the process begins to net steady cash.
Subsequent repeating of that cycle will soon stabilize with higher rates being demanded for the purchase of credits. Until the cycle is started, however, we remain mired in "potential." How many times has that word been tossed out?
It's about time for potential to become reality. To know you have 1 or more purchases negotiated prior to clearance to trade spells RELIEF and signals to future purchasers that your product is in demand and they better be ready to pay the piper.
Get grounded. A few weeks ago there was foolish talk circulating of a nickle by Feb 1 and a buck by the end of the year. To that I said "hogwash." Now, its like "we'll never see a thing." To that I say "hogwash."
The most powerful lesson you can learn if you pursue a strategy of making your own investment decisions is:
IT'S NEVER AS GOOD AS YOU THINK IT IS, AND IT'S NEVER AS BAD AS YOU THINK IT IS!
If you can't learn to abide by that axiom, you need to turn your investment decisions over to a mutual fund.
Over the last few months, I've attempted to calm the heightened exhuberance being displayed and tried to establish that moving a stock of this size to above a dime would require unbelievable luck and unlikely would not happen in the next several years. Nobody was really interested in listening.
Now, I assume the role of calming fear. As nonsensical it was to think that this stock would zoom to a dollar in a year, it is equally nonsensical to think that the present move of the company to enter the cc field via GEC Organics was an intended plot to deprive company shareholders of share value and to redirect that position to private investors. Such thinking is not only wrong, but actually is doing an extreme disservice to the CEO of the company.
I can tell you that there have been many, many times, that the option of "just giving up" would have been understandable. Fortunately, for me (and you, but you just don't realize it) he didn't succumb to that urge. He fought, gutted it out, called upon a few miracles, and got to where we are now.
Let me ask you something, and let this roll around in your head a minute or two: IF Pete was looking to stick it to the shareholder, wouldn't the thing to do would have been to just fold up GLEC last summer by citing inability to continue to fund the business (who would have been suspicious of folding a company with protracted history of unsuccessful operations?) That would have freed him to enter the cc field as his private venture and retain all the interest therein for himself and those that have funded operations for the last year. His economic stake would have been significantly enhanced by such a move and he wouldn't have the pain of dealing with all of us.
But he didn't do that. Knowing Pete, he didn't think about that. He found some private money to keep the company going because he hopes to one day reward the loyalty of the company's shareholders.
Do you people realize that you invested in a pink sheet equity? Do you realize that a high majority of such equities exist for one reason only? That reason is to make the insiders a pile of money. Once that is accomplished the business dies and the shareholders are left with nothing.
Pete has devoted his life to his company. He has pledged his personal assets and is in debt because of it. For someone to even speculate that he is trying to do an end-run around the shareholders is preposterous. His tenacity in keeping the company afloat disproves that silly notion.
I have no prior knowledge, but I'll predict that Pete will run all the revenues through the company. It will keep the company alive, provide it with another chance to succeed and inure to the benefit of the shareholders.
So the moral to this missive is what? Stop overreacting. Stop thinking that this stock is capable of going to a dollar in the foreseeable future and stop thinking that the company is trying to screw you.
IT'S NEVER AS GOOD AS YOU THINK, AND IT'S NEVER AS BAD AS YOU THINK!
SHOUT OUT TO THE REF
Heard that you've been a little under the weather. My prayers and best wishes for a full recovery.
No, because you are a moron.
Here is what you said:
Do me a favor. Put me on IGNORE.
Hmmmmm......"perfect storm?"
When that happened the ship was sunk and the crew was lost. I prefer the phrase, "drawing an inside straight." lol
The most promising aspect is the possibility of an increase in price per credit. Move it up and all the metric/projections move up proportionally. If the company can actually cover all the costs of the soil production by selling credits, and maybe even make a profit, then that sets up perfectly for the sale of the soil at highly discounted rates, thereby effectively undercutting any competition. Being able to sell the soil at highly discounted rates presents all kinds of PR opportunity. Imagine this News Flash "coming up on your 10PM/11PM news we'll show you how a company is giving back two ways - reducing carbon emissions while allowing local farmers to organically replinish their planting area at bargain prices."
Sorry for the delayed response, but I've been gone all day. It looks like carb pretty much addressed your question. All I would add is the observation that GEC Organics is not a public company. If GEC Organics has executed an agreement and/or a note payable to funding individuals to it, the specifics of that transaction would not be released in a SEC filing by the company. Again, I do not know. It's just something to consider.
OK, I got ya.
Yeah, I think it's doable to pinch out 5 million in earnings from 20 million in revs. That would depend on how successful the company is in selling its soil at a reasonable price, so as to make room for another round of production to sell more carbon credits. That is especially doable given the fact that the company will be able to sell its soil at a discounted market price to wholesalers and farmers because it has already received money form the sale of carbon credits in advance of any actual soil sale. So, I'm with you on that possibility.
But, here's the flip side:
1. A PE ratio of 25 is doubtful. Possible, but not likely. Any wishing for a PE ratio above 10 is not sensibly evaluating the prospects. The more likely PE target for a new venture business, with a long track record of no revenues, is 5. That would produce a sp of a nickle.
2. I'm asking because I don't know, and I doubt anybody else, except the principals involved, know - What amount of revenues/earnings will be recorded by the company? Don't forget that the entity entering the cc space is GEC Organics and not GLEC. While, GEC Organics is a subsidiary of the company, I don't know how that relationship results in revenues and earnings for the public parent. Let's be sensible. GLEC has gone an extended length of time with virtually no revenues from Castleberry. The company reached its maximum share authorization amount over a year ago, so the bills have not been paid by issuance of more shares.
So somebody has been paying the bills. Right? That somebody is not any of us. It's somebody that will likely prove to have some stake in GEC Organics and there goes part of the share that goes back to the bottom line of the company.
Again, I want to stress - I DON'T KNOW, but a sizable investing resume tells me that you will never see a penny for penny transfer of earnings to the company from GEC Organics. Now, it could be possible to run all the revenues through the company, but any earnings would necessarily be diluted by the minority interest of any GEC Organic owners. All the more reason to assign a conservative PE ratio of 5 and not an aggressive one like 25.
Make sense?
Very, very true.
This will be my last post to you. There is no pleasure in having a battle of the wits with an unarmed man.