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My question is why delist if you have 10 million coming. I am tempted to buy back in and sell for potential short term spikes but this delisting decision is not making sense at all. I understand about saving money in terms of SEC reporting, but you stand to lose a bunch of money if you reduce your company exposure and you make it hard for people to buy or sell your stock. If they honestly feel like they can kick start things with the 10 million...it would be wise to stay with the OTCBB.
Either way Reliant is going to have to sell of some serious pools of mortgages to not only pay off the significant debt they have thus far accumlated, but also their additional 10 million on its way. If they can't get things signficantly going within the next 6 months this company will dissolve.
Well I was thinking about buying back in but glad I didn't...now sub-penny!!
I think I hear taps playing on this one folks. I am thankful I sold and at least salvaged $3500 from this fiasco.
Not sure if there is any luck left or anymore life boats remaining for you longs. RIP
Thanks for the Tax info...yes it is 3K max each year with carry over.
You may be right...I will have to look into this as well.
Actually, now that I look at this Tax write information my supervisor gave me...it appears to not make sense. According to him the higher your tax bracket the more you can recoup from your stock market loss. However, that actually does not make sense...because it seems to me that you should recoup more if your tax bracket is lower not higher. The lower your tax bracket the lower your income and the more financially damaging the market loss becomes.
Guess I am going to have to pull out my Ernest and Young Tax Guide from last year and look this up.
If anyone else has more accurate tax info...please post.
Depends on how much you have lost and what tax bracket you fall under. I lost approx 25,000 with Reliant and I fall into the 25% tax Bracket. Although not exact...I have been told that you can expect to recoup an amount equal to an approx percentage of your tax bracket applied to your loss. In other words 25% of 25,000 is around 6K.
Any longs with over 200,000 shares should definitely think about whether or not to hold this wet rag. If Reliant should come out with some diappointing news in the near future there will likely be a selling frenzy and your ability to a least get 3 or 4 thousand bucks from your dump will be almost impossible. Your selling order will basically rot as the PPS sinks to sub-penny because there will not be enough buyers to sustain a large share dump. Bottom line you will lose all your money, but if that is okay than so be it. The 3600 from the my Sale of Relaint has turned out to very handy for some of my home improvement projects that I have been putting off. I am glad to have salvaged some cash out of this and I expect to get back approx 6 thousand from my Tax write off this year.
Frankly, at this point you cannot totally rule out Reliant yet, but if they do pull through it will not be for many many months. I may buy back in come spring time if market conditions start to appear more favorable.
Exactly my concern.....
Sounds like a resonable explanation...
They never really made it clear as to when they stopped closing mortgages. Up until say mid-July...their PR's stated they were closing mortages with a least 2 Mortgage pools ( two 6 weeks periods starting in March) closed before things really turned sour.
Whatever...I guess. Like Finnthecelt mentioned it will take Revenue to create any sustainable movement in the pps at this stage of the game.
The letter from Hamilton helps clarify things and has improved my confidence about buying back in...however, I am still a little reserved. The one thing that troubled me with the letter was the mention of the 1.5 million mortgage pool Reliant was unable to sell. The reason of why Reliant is not able to sell is very clear now, however, my concern is how poorly Reliant did over those 6 months that they were closing on Mortgages...considering the original projections were 750 million.
Perhaps I am off base on this, but I would have thought Reliant would have been able to originate more like 40-50 million in mortages in a 6 month time period. Their past filogix PR indicated 33 million in 4 days.
1.5 million in mortgages is basically just 8-12 mortgages they closed on in 6 months. Anyone else see this as a problem?
Jack...well said. Indeed if they would have released a PR with the information in that Email I would not have sold. Reliant still has a shot if they can pull together all business items they are currently working on.
For now I am just going to shut my trap and consider buying into Reliant if things look like they may start turning around.
Good luck longs....
Well perhaps "scam" was to harsh a term based upon this Email just sent. I don't understand why they could not have just sent a PR with that kind of email information out to the shareholders. It helps to put things in perspective, but still there are questions about this new president Loeb, Snowbird Mortgages ( no phone number on web-site to contact them) and who the UK insurance company is. Things overall don't quite add up.
This is a wait and see situation....
Yes it appears his name has been removed. This just gets better and better...
I am wondering now if Hamilton is set to resign.
This company is looking more and more like a big scam to me.
Plain and simple we have all been shafted. I think the SEC needs to step in on this one. I knew somthing was wrong way back when they changed the date that they launched their suppose mortgage program. This latest incident with Snowbird is a really blatant scamming attempt. I smell a lemon here folks big time.
Tryme30 no need to play the violin for me just yet. I have no pain at all from selling because the stock has not done anything and I could buy right back even cheaper. If Reliant jumped into the teens right after I sold then I would be in pain. I am actually happy to have salvaged 3600 dollars out of this major loss. Mazaniac has dug deep with his DD and I think is shedding some bright light on the true nature of this company. I am now beginning to doubt Reliants claim about obtaining an insurance wrap from a "company" outside of Canada. What is the company name? Why not give some more details so the investors can make more informed decisions.
I actually feel sorry for all the investors who lost out with this one. For now I am content to watch on the sidelines.
The other reason I sold was the supposed Snowbird deal. Based upon some good DD by some members of this board and my own evaluation of the Snowbird website...I could only come to the conclusion that Snowbird was a fictitious company created by Reliant as means to justify the reverse split. I have no doubt that some of the posts scared Reliant into backing off at this attempt. I still think Reliant has a shot though...but my trust in what this company purports has definitely eroded.
I gotta laugh at this situation LOL! Someone from Reliant must be reading this board. I am wondering if they actually read my post about my selling and strongly disliking the 5:1 RS and feared there might be a big sell off. Or perhaps they were reading Stoxter's posts about filing an SEC complaint. All I know it is pretty amazing to see them renig that fast on a PR.
The other thing I did not like is they placed the most substantial news about their insurance wrap obsured in the last paragraph of their previous PR. With this new PR they have it forefront and center the way it should be.
At this point I may jump in again...It is amazing that I can purchase back my 200,000 shares for a 6th of what I previously paid. I think for now I am just going to watch this one close before jumping in again. If they start selling their Mortgage pools...I will definitely be jumping back in.
Good Luck Longs
Sorry folks I dumped all of 204K shares today. I am probably the first Long to bail, but I just don't see things happening with Reliant now. This stock has been a thorn in my side for quite awhile and I just decided to remove the thorn so I can heal and move on. The 5:1 RS is a major reason why I bailed out. The majority of companies the do RS's and are not generating any Revenue or inciting heavy PR's...eventually belly flop. I just can't bear the thought of having 2/3 of my shares taken away while the crooked MM's walk down the pps to its previous level. I would then have to reach around a .35 pps to break even instead of my averaged down .11 ( Reliant will need actual Revenue to move the PPS into the 20's or 30's)...of which it is possible but not for a long time to come. I don't think Reliant will be able to sustain itself long enough for this to happen.
The Snowbird Company to me is not impressive at all and in fact is very suspect.
If I am wrong about Reliant then I can only blame myself.
Good luck to the rest of the Longs
When did PRMO RS? I took a gander at their chart and in August they jumped from .05 to .32 and now they are back down again to .05
Their jump to the 30's only lasted a week and since then they have fallen back to a nickel. Not too impressive.... However,
they did climb as high as 7 dollars about a year ago from a baseline of .18 ! I am thinking that was when they did a RS.
That is some jump in PPS on a RS.
After they take 80% of your shares...Reliant has decided to double the number of shares you have left as a token of your faithfulness to the company...at least that is what I am guessing. Either way you look at it and after it is all said and done...you will have lost approx 60% of your shares and you will need to mutiply your averaged down ( break even) PPS by a factor of around 3 in order to break even.
In order for me to come out without a loss right the PPS would have to reach .11 cents.
After the Oct 3rd reverse split and then 2 for 1 split dividend it will be more like .35 cents for me to break even. That sucks big time.
This news today would have been more positive today if it were not for this reverse split crap.
It is really odd that the biggest news in my opinion...about Reliant obtaining an insurance wrap...was listed last and somewhat obscure.
If their thinking that the 5:1 split is going to make the stock more attractive to investors because it will go up to a dime...they are in for a rude awakening and we will be in for further erosion of our money. I don't like this split at all. I would like to know the real reason behind it.
Am I reading this right? Reliant is saying that they have obtained the insurance wrap from the PR:
Reliant Mortgage Canada Inc has obtained a first loss pool mortgage policy for its pools. As the insurer is located outside of Canada, the insurer and the Company are working together to locate a stable secondary purchaser of the Canadian pools providing a fixed rate of return to the Company.
The company President is named Bobbie Thibodeau so at least one of them is not a Hamilton.
The Snowbird site has access restrictions and it indeed looks alot like Reliants...if fact it is nearly identical in its setup with the news rolling on the lower left corner. Not sure if this is good or bad.
Looks like they indeed fixed the insurance issue. Now they are looking for a stable company to buy their mortgage pools. That is promising...
However, the 5:1 reverse split has me wondering...
The reverse split dividend has me wondering what kind of dividend pay out it will be??
I don't like reverse splits especially a 5:1
The PPS will jump to a dime and your 200,000 shares will become 40,000. A week later the MM's will begin walking down the PPS and before you know it we will be looking at a nickel or less with 1/5 the amount of shares you used to own.
That sounds plausible...this Snowbird Company just opened for business last month Aug 12th.
Reverse Split dividend?? Can anyone explain this one? Reliant is also saying the have received the insurance wrap?
News is out. Reliant does Reverse Split.
Time will indeed tell...and we are going to need lots of it to make it out of this fiasco. The Canadian Mortgage Trends website indicated that the US subprime default rate has not even come close to peaking yet with peak expected around Feb/March 08. It will likely be another year or more before things start to settle down.
My concern is how is Reliant going to survive if they continue accumulate debt without any Revenue. Those are perfect ingredients for eventual backruptcy.
I wish I could be more positve. I am only going by what I am reading from the latest Mortgage news.
I looked hard to find some postive articles on the Sub-prime industry...but could not find any. If anyone has better luck then please post.
Completely agree 100%. SEC has clear rules about how company information is disseminated.
Leob and his family were once big time players in the supermarket industry. Starting a new grocery store chain would be interesting, but not likely to happen.
All I know is that this is probably one of the worst stocks to own right now. No one wants to touch these kinds of stocks even with a 10ft pole. It is going to take some incredible news ( Revenue projections, insurance coverage, expansion) in order for people to start watching this stock again. Buying it will take even more solid news.
As this point any business change I think would be positive. It would a least be a way out of this quick sand.
Trying to be more realistic than negative...However, it does not look good for Exceed Mortgage Canada as it contiues struggle and its pps continus to nose dive now down to now 2.80
Although you cannot equate the US subprime market with the Canadian subprime market, the US mortage headlines today were very grim with indications that the sub-prime loan sector will go extinct...with those types of loans soon to be completely replaced with prime loans with ballon and ARM's available to individuals with outstanding credit only. In other words there will soon be no sub-prime loans originated in the US market. Countrywide is now trying to convert all of its outstanding sub-prime loans to prime loans to avoid further loss. My fear is this trend is likely to spread into Canada.
I am now doubtful we will get any substantial news from Reliant other than perhaps a 14C announcement indicating the selling of more shares ( Not good news at all) and/or perhaps Reliant is looking at moving into another business sector.
Going to give it until Dec before I cut my losses with this mess.
Agree...however, as jds indicated the news associated with the 14C filing is suppose to be very favorable. 100% change in business could be viewed both positive and negative depending on what the new business involves. I can't imagine would the new business would be since the heart of Reliants operations and management is grounded within the Mortgage industry.
Right now all of this is a bunch of speculation....
14C is filed in most cases to issue more shares of stock. In Reliant's case it will most likely not be common stock but rather preferred stock since the news is suppose to be more positive as jds indicates from his emails to Reliant.
Frankly, I see this 14C filing by Reliant to be more neutral and bland rather than positive. Yes Reliant has a chance to raise some capital from the sales of preferred stock, however, there has got to be buyers out there for this to come to fruition.
I personally would not put another dime in this company until I see more (+) signs that the overall subprime market is turning around and Reliant has their insurance woes corrected.
14C's are also filed to indicate mergers...of which we would be dreaming to think Reliant had merger plans up its sleeve. Can't count that out but realistically its 1 and a million chance of that happening.
That supposed "glitch" has appeared to have affected my E-trade account trading/charting information because my E-trade is still showing yesterday 8/29 data with no Bid/Ask information and 0 volume. Really strange...
Indeed just a false alarm...Reliant is back on the OTCBB system. Really odd why they were missing last night. Definitely a relief....
Reliant has 7 days to publicly annouce its delisting from the OTCBB. It is obviously not a good thing for Reliant but considering the circumstances they are under with this sub-prime problem...this was bound to happen. I don't think it is a death knell for Reliant quite yet. I think the company still has potential to pull through. However, they need to fix the problems within the next 6 months or Reliant will most definitely belly flop.
No need to panic...
Reliant may have choose this route to save money. They no longer have to report their financial information...thus saving accounting fees. Heck IPWG rose %6000 to a 1.90 while on the pinks. We definitely could still see a good run on good news. Jds indicated that Steve would be coming out with some favorable news within the next week or so.
I think we have been delisted because RFNS is now showing up on pinksheets.com
I think well all knew there was a likelihood that this would happen.
I guess it could be worse with Reliant filing bankruptcy.