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As far as we know the new owners were full of debts, so Kip may also be one of their creditors.
Since this shell was not used (as far as we know), this can be treated as an asset to repay the creditors.
Volume means that this stock was not used for the fraud, it's pretty clear. This traded almost nothing since the symbol change.
A typical penny stock fraud involves pumping the stock price, selling the stock and raise money through fraudulent communications.
The charges imply that they were raising the money from investors outside of the stock market.
And since they never complied with their duties regarding this merger (there was no news issued, and no bureaucracy duties as well), I'm wandering if Kip has the rights to reclaim this shell back to himself.
Well, given that this stock wasn't used for the fraud (the past volumes speak for themselves, nor there have been any news about the merger, actually there was no news or pumping at all), I'm wondering if Kip can reclaim this shell to himself.
They did a reverse merger and not only they didn't even announce it, but they didn't properly file it to the sec! Nor they dilute the stock... nada de nada
Anyway this can be a good news, since now they are due to start inform the sec and the markets about this new company.
DTEK currently has a market cap of 170K, and it's a low float stock, so of course it has lot of potential in case of a reverse merger (I'd say up to a market cap of 2-4M$, so it can be a 20 bagger from here), anyway there's no news out and todays movement may only be a new buyer who hit the ask.
Apparently VCOC.pk is now claimed by this company: http://www.voiceonecorp.com/investors.htm
So did a merger happen without any news out from Kip?
Is it an authomatic process or should I get my paper certificates?
Yes it appears that Angela Ross is the new main officer of this shell, taking over Kip.
Anyway I seem to remember that she was associated with Kip in other shells in the past.
Lets continue with this long waiting game...
Speaking of ultra low float shells, DTEK is even better than AEGP: 8M float, currently at 0.003.
I think that if there's no deal going on he has nothing to say...
These shell plays can take forever before they are really going through, and usually when a rm does happen it goes without notice.
This shell as of now looks still good because of the low os, the low market cap and the clean status. Just look at FRTL, which actually had an higher OS and is not as clean and debts free as ITRM.
No more interest in this stock (due to management) + diluting pressure = stock going to zero in no time.
This company will not be able to rise money on the markets with this situation, so either they are going to generate revenues soon either they'll get some other type of financing either they are doomed.
It's really sad because something was going on with CLBE and this was not a scam unlike many other companies.
Do you have access to that document?
Someone got tired of waiting.
It will really move once a RM is going through. Until then this will move on air at these levels.
We must wait some official filing to know the exact number of outstanding shares. There's been a debt conversion and we didn't know how and when they did it. Perhaps there may be a lot of restricted shares.
Simply, no one is interested in the stock until some serious volume comes in. A couple of 200 shares sales cannot be considered manipulation in any way.
Fact is, the reverse split has been pretty major and the outstanding shares were a ton after the debt conversion... that was not very clear from the last filing.
The company had a net profit in 2006 and 2007, too.
But that doesn't help with convertible debentures...
You get no new shares.
X = the number of CLBE shares in your account
You'll get X/3000 LSTM shares in place of your current CLBE shares.
The OS, considering convertible debentures which should have been converted by April, is in the billions of shares, so after the split there are a lot more than 69K shares outstanding. That's what many are missing here.
That debt was converted during the run down to 0.001, it was expected to be that amount.
But do you understand that this company was and is full of convertible debentures?
It was already there since a while.
This is a totally clean shell, reporting (but not sec compliant). A perfect candidate for a reverse merger.
A shell like this is valued 250K$, so this should trade at least at 0.01 as an empty shell.
The potential here is great, because at 1$ the market cap would be of only 27M$, and I've seen market caps as high as 500M$ after reverse mergers (just think at USSE).
Of course the waiting game could last forever...
That was because of a trade that went below the bid. Anyway it's inevitable that someone wants to jump out of the waiting game.
DeOlden has the preferred A shares... so he'll always have the majority of the shares, no matters how much of the outstandings he owns.
Moreover I strongly feel that CR, the debentures owner, has more than 1B shares by now (hence the necessity of the RS).
I hope they do arrive soon.
Perhaps I expressed myself badly, I intended to say that VFIN sometimes represents institutions, but sometimes it represents officers and dilution.
To be exact VFIN is also associated with dilution by the company.
The only thing that is giving me confidence that this will not dive after the RS is that CR (the debenture holder) doesn't want to lose his money and so he has to sell his shares at a price which should be in excess of 0.0012, which is the price at which he should have got the majority of his converted shares (of course 0.0012 pre split, 1.4 post split). Maybe CR average is even higher (because he started converting at an higher pps).
The current OS is not 200M, but it could be in excess of 1B shares, including the full conversion of the 2M$ debenture (which could have been already happened).
That's will be the amount of shares to which the reverse split will be calculated upon.
I think that with a 0.003 pps and more than 1B shares outstanding a 1/1000 rs will be necessary to get to 2$ (thus reducing the OS to just 1M shares).
Then, the AS will be set to 300M.
I think that they are going to uplist to the AMEX (as they always planned, but not in this way...)
Well, put it this way: they want a low price for conversion (btw, they can also convert some debts at the time and not the whole convertible, as they are doing), but they need an high price for selling those converted shares (otherwise they would be losing money, since selling a large amount of shares in a low cap stock easily destroys the stock price).
So what they do to edge their risk? They convert a small amount of the debt and sell it destroying the pps (this happened last fall). Then they convert the rest of the convertibles at that low price, but they don't sell it, instead they pump the pps as high as possible (it doesn't require much, look at what's happening with SYDI), and sell into that run and after that run. Then they pump again and sell again, etc. After the conversion finishes they become the largest stock owners and so they have the interest to gain much from that stock.
With CLBE they must convert all the convertible this next April, so lets see what happens then.
They are starting up a new business (in need of money) + they have ton of convertibles with no revenues... the stock is running because someone had interest in creating a big momo, and we are riding the momo.
The company is not in bankruptcy risk more than any other penny stock or low cap nasdaq stock you are trading, in fact it has less debts than most pennies out there (only a couple million $).
Look at SYDI: no revenues and 6 times the convertibles of CLBE, yet it had a 15x run.
The fact is that this stock was killed by the conversion and dumping of half of the debenture, in order to get a pps low enough to convert the other half before this next April at a convenient price. After that conversion you may see a run, but right now there's no interest because people is worried that the dump may start again, since it lasted until late december 2007.
The warrants are worth nothing, I'm not worried about them (if they get exercised they are worth a very small amount of shares). They will not get recalculated.
Daily RSI14 at 1, another downtick and this goes to zero! Never seen something like that.
Order's size on OTC Level 2 is often bogus and has nothing to do with the real number of shares being sold.
Moreover, if your MM has other sell orders at lower levels you won't see your sell order because each MM only shows its lowest selling order at the ask.
Anyway it looks like that SSGI has a big sell order at 0.01. It may be your case.
I didn't lose any train, as if you look at this thread I was in this stock since long before the momo (and you) arrived.
The sooner the debt is converted and dumped, the sooner a stock sink big time, and so the debt holder can get more shares from conversion, too...
The warrant exercise price does not mean anything has it is established when the contract was signed.
Nope, debt maturity is the date when all the value of the convertibles must be converted, but nothing prevent them to start converting on any date before that date.
On CLBE debt maturity is next April, but half of the debt has already been converted and dumped between October and December.
I'm not english nor american, anyway it was obvious I intended to write their.