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Legal Ramifications
I'm not a lawyer, so this is just a lot of supposition, but...
There's an ETF that has applied for SEC approval to set up a fund comprised of medical marijuana companies. OWCP is on the list of companies they intend to include, which accounted for the meteoric rise above $3. The lack of SEC approval is responsible for the subsequent cliff drop to $0.32.
The hangup on SEC approval is the differing legalization laws from state to state, most of which conflict with federal law. Okay, that's the backdrop to my post.
What legal hurdles does INMG face? They will be advertising the sale of edibles and smokables on the internet. Many viewers will live in areas where this type of sale is illegal. Very illegal. Is there a way to tailor content to the viewer's location? Logic tells me that INMG might face some of the same legal hurdles as this ETF, but what the law says is not clear to me.
Thoughts?
Yesterday I watched a documentary on the retail pot trade, they profiled some Colorado companies that make edibles, and also an Ohio company that makes equipment that was originally used for extracting the "juice" from lavendar to make essential oils. Their biggest customers now are using this equipment for extracting oils from pot. They went from thousands to millions in revenue.
It was very interesting, and totally got me jazzed about INMG! What was apparent watching this program was that there will be so many ways to capitalize on this growing sector, ways that are not apparent today. When cell phones first came out, we thought, hey great, I've got a phone in my pocket. What we didn't see was that the phone would become a camera, a texting device, an internet portal, a navigation system, a gaming device, etc.
INMG is positioned to take part in all the ways this industry will grow by being the information hub for everything happening in the industry.
I don't offer price predictions, I'm not that smart. What I do offer in the way of advice is this. No matter what your exit strategy is for this stock, make sure to hold on to a decent pile of shares long term. If Tom builds this brand to be the information hub I think it can be, there's no telling how lucrative this will be long term for shareholders. Think dividends. 50 cents per year on 500,000 shares is $250,000 annually. That's a Warren Buffett type return for a position that only cost around $5,000.
If you're right about the charts, and I don't really know how to verify one way or the other, then people waiting for 2 cents will have nothing to buy. They made their decision, they live with that decision.
I agree that this week will be interesting. It's why we're here if we're holding large positions. T-Minus 4 and counting...
I can't imagine that Tom will have a PR with any content that isn't already known, or at least in reference to things we already know. He might tell us about some private placement deals or about some advertiser contracts but this has the feel of Tom throwing a bone to shareholders to juice the share price a little going into the conference. This indicates to me that the PR would come out late in the week, likely Thursday or even Friday morning.
Do you expect a bombshell?
Those "legless buffoons" you speak of are traders. They will trade INMG until it's no longer viable, meaning until longs stop feeding them shares. If it pops due to MJAC, they'll move on to another opportunity and not give INMG, Camelot or StockRocket another thought.
And on another board, you will be flipping shares and take the other side of this debate, lather, rinse, repeat.
Traders gotta trade!
It's interesting that you felt compelled to tell everyone that you are not flipping. Even if you were, I wouldn't hold that against you. The shares are yours, to do with what you will.
Traders gotta trade!
On this point we agree, for long term investors:
At this point either you are in or you are out.
So, if everyone who's going to buy has bought, where does .07-.10 by Friday come from? You're talking 300-450% increase based on what?
In my view, this is about the chart resetting AND about getting back in with the cheapies after flipping. These two things aren't mutually exclusive, they're a mated pair. If you are trading, by definition you are flipping. So you let the chart tell you when to sell and when to buy back in.
When did trading become a dirty word on this trading website? That's at a minimum neurotic. It's got a real Brown Shirt feel to it...
There are three competing stock theories playing out here. First, there's the medium-term play represented by StockRocket's DD. It looks out to the 4th quarter of this year. Beyond that, there's no meat on that bone. This is a buy and hold strategy.
Second, there is the day-to-day examination of every tick of the stock, a trading strategy.
Third, there are a number of "longs" who are also flipping shares, feeding them to the traders. They are likely the loudest in shouting down traders. Just think 3DYogi.
If you are long, make your purchases and you're done. Your strategy is firmly in play. If you're trading, then trade based on technicals day to day. Either strategy is viable here. Newsflash longs---if you'd stop selling your shares to the traders, they wouldn't have shares to buy. This adds an additional element, many of the longs here are in fact "long flippers." They've got shares tucked away, but they have a supply that they trade.
Camelot says we'll be at .07-.10 by Friday. Based on what? Where are all these supposed 5-7 cent buyers coming from? They aren't on this board, I can assure you that. That's 3DYogi pumping and wholly dishonest.
I don't have your particular set of skills (apologies to Liam Neeson), so I work with what I have.
I've managed to piece together a decent amount of shares at an average price of 012. But I don't flip those shares, as stated previously, I don't have the skill set to do that well. So I sit tight until my pile is worth an enormous amount of money. There are catalysts on the immediate horizon, so feedback is imminent. Either I'm right and the share price goes up significantly, or I'm wrong, but I don't get hurt too bad because my cost of entry is low. And if it doesn't go below 012, I'm still profitable.
But I certainly wouldn't be buying shares at 3 cents. Not after accumulating so many at a much lower price point. Advocating for laying down $30,000 for 1M shares does sound a little hypey.
CD? Good call. Here we have people who make a living trading that are now trying to wrap their minds around the concept of buying and holding. This produces a lot of stress. That stress manifests itself in certain ways. Chiefly among them are fear and paranoia.
Thanks for clearing that up!
The funny thing is, as you pointed out, everyone here wants the same thing. Higher prices will lead to higher profits. There's an effort here to control the conversation that is borderline crazy.
If you read the charts and they tell you that you shouldn't buy again until the price drops to a certain level, then that's what you do. If you're wrong, you don't get more shares. If you're right, you get discounted shares. If someone who doesn't read the charts wants more shares, they put in an order at the price they're comfortable paying and wait to get filled, which may or may not happen. Either way, who cares what the other is doing?
Have fun chasing shares! Personally, I wouldn't want to go into MJAC without any.
Did he apologize to you for selling and promise not to do it again?
INMG shares are easy to come by. You and Camelot will sell me shares on Monday, same as last Monday.
I don't follow this thing minute to minute, unfortunately I have a full time job. So I don't know who the bad guys are and who the good guys are. What I see is a bunch of traders, all with their own personal agendas.
I don't trust anyone who says this company is a sham and I don't trust anyone who says this company is going to the moon. I don't trust people that toss out share price numbers with nothing to back it up. That's just pumping and clearly as dishonest as manipulating. The truth is never at the poles, it's always in the middle.
If there truly is manipulation going on here, what is the remedy? And why would anyone invest in a stock knowing that dishonest folks are manipulating it? Is that normal for penny stock investors, to accept dishonesty at some level?
They nailed the call days in advance. Were they also the manipulators in your scenario?
They nailed the call. With no mention of rockets.
800k, that's a sweet pile of shares, Vivavegan! Lots you can do with that, especially once it takes off after MJAC. I hope you get everything you want from INMG in a big way! 4 more trading days and counting...let's do it!
To answer your question, I've got 2,450,000 shares in my accounts. I brought several more people to INMG that are looking to me for selling guidance, they own another 1,750,000. So, directly and indirectly, I control 4,200,000 shares.
So, when you hear someone telling you I'm a shareless flipper, tell them you won't accept those shameless lies. Ask them to refute my position with logic if they don't agree.
Good luck to you, and everyone else on this ride!
Last week 2 posters, I think they were Elkay11 and Estate11, absolutely nailed the chart reset down to the low to mid 1's. They even came within a day of the event. I give them credit for that. The regulars here beat them down with scorn and derision. Now they're saying a reset down to around 2 is necessary to reset the chart. More scorn, more derision.
There's room here for all opinions. We can differ, but social convention and IHUB both insist that we be respectful. If we don't agree with someone, we respectfully present our point of view, we don't jump on them with both feet, lots of caps and an angry LOL.
Technical guys nailed their prediction. Pumpers keep talking about 10 cents, but I haven't seen that yet.
Personally, Vivavegan, I don't think it is a TOS violation. I was going to answer it, and then saw that it was deleted and couldn't answer it. I thought maybe you deleted it.
You offer two reasons why someone might post this gap analysis on INMG.
a distraction tactic and/or as a veiled attempt to scare the weak hands into selling.
I can offer a third option. They are technical traders and their tools are telling them this is the case. They were correct last time. Everyone discounts that because it doesn't fit the narrative.
If the facts don't fit the narrative, the narrative is bad. Good investors will make adjustments for data.
What we all saw is the share price reset to the exact level they said it would. It doesn't matter what the reason is, the share price "reset" the chart. They read the charts and made the accurate prediction. That's the sweet voodoo known as technical trading.
As a value investor that isn't a chart reader other than to locate quality entry and exit points, there's more value in their accurate reset prediction than "It's going to dollars, man!"
I don't typically trade, I buy and hold value. What investors at MJAC will see in a penny stock with a really good idea that does not yet generate any significant revenue, is both exciting and bewildering.
To me, MJAC is this big, beautiful opportunity that could either be life-changing to me in terms of profit potential, or a big fat splat that will be nothing more than profits for those in at 1 penny.
I'm banking on life-changing, but buying in at 012 for my whole position means it really has to crap the bed for me to be in the red. That will make it easy to stick around for a reset if MJAC doesn't blow the lid off INMG. 4th quarter hard launch and subsequent financials have a lot of appeal.
Great post buypumps! The market needs both buyers and sellers to be a market.
Like you, I don't do a lot in the penny space. But INMG has me completely jaded! Yesterday my INMG account total went up $5k, and all I had was "meh, it could do better."
If my position in Microsoft went up $5k yesterday I'd still be doing my happy dance!
I hope INMG doesn't ruin me for traditional value investing.
The last time they said the chart would reset, it did. That's a fact.
Why is this time different?
The key to INMG truly breaking out is a large demand from MJAC that isn't present today. Longs that are in at 1 penny are going to sell millions and millions of shares at 10 pennies. I can guarantee that. Everyone has their calculator doing the share math, they all know what their positions will be worth at every price point. We need new investors at those higher prices to absorb the massive selling that will surely come from the longs on this board. Again, I don't judge. If you have 10M shares and it goes to 10 pennies, you have life changing profits.
New investors that get in at 10 pennies will be holding for at least 15 to 20 pennies, and beyond. That is what I see taking INMG out of the hands of manipulators and flippers and truly putting it in the hands of longs. We don't have any control on this stock today.
If there isn't enough demand from MJAC (I think there will be, but let's play Devil's Advocate.), then the price driving catalyst of the future will be revenue. Tom has to ring the cash register, quickly, after the hard launch. That will attract a different class of investors, people who aren't looking to flip for a few cents, but are looking for value that they can hold for years. This will require that longs hold for quite a bit longer. That will shake out a lot more people on this board, cuz hey, traders gotta trade!
You mentioned private placement opportunities for accredited investors. I'm curious about your thoughts on what that will do to the share structure.
There are 500M authorized shares, so Tom has 274M shares to pay with.
How is such a deal likely to be structured, and how does that affect the overall share structure and share prices? I don't usually play in companies that are so small, so I don't have any points of reference.
Last week the chart guys said INMG needs to reset by trending below 015. They were reviled as flippers trying to scam people out of their shares. Maybe so, but they were also correct. It did reset, clearing the way for the subsequent increases we witnessed. Give them their due, they said it would drop to a certain point, and it did exactly that. The naysayers were exactly WRONG.
Now they're saying reset again. And, again, they are reviled as flippers trying to scam people out of their shares. I'm inclined to believe that it will reset, for two reasons. One, they were correct last time. Two, there are a lot of people here claiming to be long that are selling shares. That's a fact.
I'm buying below 020 again, if it gets there. I'd also wager a dollar that some of the folks reading this are going to help me get there, a new class of stock investor I like to call the "long flipper." These are people who have a lot of shares locked up, but have a smaller amount they trade for income. I don't judge, I want some of those cheap shares.
Next stop for me, 3 million shares! And thanks in advance to those of you that are going to sell me cheapies.
"Massive pent up demand." Quick question. What has stopped all these investors that want this stock from buying it?
There's certainly no shortage of "longs" that will sell them shares.
If mom's on board...sorry dad!
I was being empathetic with investors in what will surely be a difficult task for most.
Don't mistake empathy for weakness, I'd push my own mother down the stairs for 2M shares.
The central theme throughout most of your posts on INMG is about having courage. When a new company appears on the horizon, like Amazon or Netflix, you have to study it's prospects, determine suitability as an investment. Then you have to summon the courage to buy and hold it.
Similar situation here with INMG. Let's say an investor has $20,000 invested, 1.3M shares at 015. That's a lot of ching to put down on a penny stock. When it goes to 030, the temptation to sell for a 100% profit is enormous. You have to dig deep for the courage to hold on for more. The only way to make money in the markets is to cut your losers short and let your winners run. You can't make 1000% gains unless you sit on 100, 200, 500 and even 800% profits.
That's not easy. Kudos to anyone here who can resist the temptation to sell at 10 cents after MJAC.
Coleman is the primary reason I've stuck with INMG. I made a huge mistake years ago, I bet on the technology and not on management's ability to monetize the technology and deliver it to the market.
Today, I won't invest in a company that doesn't have superior management.
It's new, so people will be skeptical. There is a very small class of investors that get in early on opportunities that haven't yet proved themselves as profittable. That's the essence of what I call "high conviction trading."
Find your best ideas, put on a large position, then stick to it until it's either as good as you thought it would be, or fails.
I know this doesn't sit well with you, but I'm not bothered by flippers. They are doing their thing, making money to feed their babies. I get that. But, long term, they are not in that small class of investors that will profit enormously on one really good trade.
I think the top reason to be long on INMG is revenue potential. There's a lot of talk about how much the company will make on ad sales, for good reason. Low overhead, high revenue equals lots of shareholder equity. When the CEO is the largest shareholder at 92 Million shares, you have to figure that he's going to take care of shareholders.
Down the road, patient investors will be rewarded with dividends, IMO. No matter what your ideas are about ringing your own personal cash register with INMG, save some shares for the long term. Leave them in the back of your account and forget about them. When the dividends start to flow, it will be really nice to have 500k shares that are paying you regularly.
Buffett bought Coca Cola for Berkshire Hathaway back in the 80's, and never sold a share. Today he earns in dividends, each year, MORE than his original investment.
The similarity here is that INMG has the opportunity to be the branded franchise that all others will be compared to.
That whole thing is a tangled web. There are moral issues and legal issues that each state has to deal with. It's legal to buy pot in Colorado, but banking laws won't allow them to sell on a credit card. From what I understand, the pot trade in Colorado is an all cash business.
But, in the case of INMG, the company is just too small for investors of that size.
Some of the medical marijuana companies are big enough for institutional investors to buy into, so you may be right about that.
But INMG has a market cap south of $4M. There's nothing here for them. That's our advantage, we're nimble enough to get in and out of pennies, the big boys aren't even allowed to buy in.
Most institutions are prohibited from investing in penny stocks.
The entire market cap of INMG amounts to the change in between the cushions in the waiting room at JP Morgan. INMG is way too small to be on any large investor's radar.
Maybe a Hedge Fund or two takes a look, but they're more likely to short it after it pops than they are to think of INMG as a long-term investment.
All I'm saying here is that there is zero chance that any real institutional investors are going to be buying blocks of INMG.
The prohibition for large institutions to invest in pennies probably is at the heart of why the SEC hasn't yet granted a license to the Medical Marijuana Fund that OWCP was slated to be part of. (That's my speculation, not stated as fact.)
Institutional investors are mutual funds, sovereign wealth funds, major banks, etc. OWCP was looking at inclusion on an ETF, INMG doesn't have anything approaching that kind of institutional support, at least not yet.
MJAC is sponsored by IHUB, the largest retail investor medium for pot investors. The conference is all about investors, but Bank of America, Fidelity and the British Royal Fund won't be there.
About MJAC 2017 InvestorsHub International Cannabis Conference
MJAC is the premier cannabis conference for retail investors brought to you by InvestorsHub. A live two
day cannabis investing symposium with cannabis industry exhibitors, key note and guest speakers,
industry expert panels and educational workshops.
Join us at the JW Marriott Los Angeles L.A. Live, September 1st & 2nd 2017
Contact: mjac2017@investorshub.com
From the INMG website:
Innovativ Media Group (Innovativ) is a developer, producer and distributor of multi-media content.
Just thinking about different ways for Tom to monetize his subscriber base, but there's another angle to this, that previously I didn't consider. INMG is a content developer, putting them in position to sell content development to advertisers and educational presenters. Essentially making money on both ends.
Not Earth shattering, to be sure, but it occurred to me so I thought I'd share it. I'm sure there are a lot of different ways for Tom to monetize this platform that aren't obvious to those of us with no media experience.
Does anyone have experience in this field? I'd be very interested to hear some thoughts on it.
I agree that INMG is a better INVESTMENT than OWCP. Primarily, what they are doing is sustainable. OWCP was a great TRADE.
OWCP went to $3/share based on an ETF announcement. As of a few weeks ago, the SEC has still not granted liscense for this ETF. They haven't been able to sustain any of those gains, dropping by about 90% since those wonderful 5 days of trading. They are currently about 50% lower than the point from which they launched to $3.
OWCP shot through the roof because of the promise of institutional investors getting on board. That's a game changer that never came to fruition (yet, wouldn't hurt to keep an eye on that story, they're likely to rocket again on SEC approval for the ETF). INMG does not have this type of catalyst in the offing. What they do have is a very good idea that's about to be monetized. They don't need government blessing, they need a couple of salesmen, some servers, and a pot of coffee in the reception area.
Short of Tom dropping a news bomb on the cannabis world, INMG should go up steadily, based on sound fundamentals. I'd love to see them shoot up to $3/share so I can just bail with a crapton of cash, but I can't see their share price doing what OWCP's did, without the aforementioned news bomb.
Short-term, I'm thinking 10 cents. MJAC should bring a lot of buying pressure, we could see a monumental pop, but nothing sustainable. If it goes to 20 or 30 cents on MJAC volume, there's absolutely nothing to keep it there at this point. People who bought at 1 penny will be lining up to sell at 30 pennies. I can see it settling in around 10 cents per share until the business model is up and running. But that is purely a guess.
But, as John Maynard once said, "The market can remian irrational longer than you can remain solvent." So my short term plan is to take my investment off the table, and maybe a little bit extra to invest in some other opportunities. This move will help with the psychological issues of trading vs. investing. Remove loss from the equation and it gets a lot easier to hold!
Long term I'm hesitant to toss out a number. With revenue we can start to establish the metrics. These can be huge for a stock with enormous growth potential, so the market cap can get nuts vs. the actual revenue being generated. Look at TSLA, it's market cap a few weeks ago (last time I checked) was larger than GM's market cap. That doesn't make any sense, but if you bought TSLA early, you're liking it. Today, I'd love to short TSLA, but there are enough investors that are so emotionally invested in it's success, that it likely will go up from current levels. Emotions and government are two catalysts I like to avoid.
Once Tom starts ringing the cash register, we can really start to break down the future from there. Don't misunderstand my position about selling, I'll be selling a very small portion of my overall position into the expected MJAC volume. That makes me whole and clearly focused on driving 2 million shares to a really good place.