Sulja Bros. Building Supplies, Ltd (SLJB)

[Visiontrack]

One of the most accurate posts I've reviewed on SLJB!


Posted by: Fishforbreakfast
In reply to: None

Date:9/18/2006 11:00:57 AM
Post # of 78653


Good, Morning.. Just wait.. Everyones getting all excited about breaking .20 cents..

It still amazes me how few really truly understand how the PPS is going to react once the shorts are forced to cover.. Fed Margain Calls are coming for some..

Look at these numbers for a moment..

500 million O/S shares

362 Million Shares held by Insiders

138 Million Shares in the Public Float.

Now if Wessal does go out and buys 25% 125 million shares that will leave 13 million shares available in the float.

They are two questions I would love to know the answer to.

1. How many shares are actually out there short and FTD.

2. Is the Sulja Brothers willing to sell shares into the Market Place for the shorts to cover.. And if so at what price.

Everyone stop and think about this for a Moment..

If the Open FTD Short position is in the 200 million shares range as some supsect from old LFWK.. The Only place for the Shorts to get the number of shares thry are going to need is from the Company Insiders..

If the insiders decide not to sell shares until the PPS is much higher say $5.. he shorts will have no choice but to pay your price..

We Have the Shares the Shorts are going to need. If Company insiders hold there shares the shorts must come to us for the shares they are going to need..

WHY IS THAT SO HARD TO UNDERSTAND?? IF YOU HOLD YOUR SHARES AND THE SHORT POSITION IS AS SOME SAY IT IS. THEN OUR SHARES ARE WORTH DOLLARS NOT PENNIES..

Now if the Company Insiders decide to sell shares then the shorts will be able to cover at lower levels..

The one thing the Hedge funds who take these massive short positions will walk away from is a Cash Dividend..

It's not that the Hedge Funds could not pay the Cash Dividend it's just that they do not want to bother shorting stocks that do pay them.. Look at the stocks on the Regulation SHO List. Almost none Zero pay a cash dividend.. Issued the Dividend and the shorts cover and go away..

Allinone alluded to this next point in a previous post.. Some of the Hedge Funds look for stocks that have huge volume and big price swings.. Then they try to go Short hoping to drive the PPS back down thus selling High and Buying low.. They then pocket the difference.. I am fully prepared to see a really decent size jump and then the Hedge Funds pour inot the stock in hopes to drive the PPS back down.. They need to be carefull.. Additional news at the right time could bring in some additional buyers will just as much money as the Hedge Funds and it will only compund there short position..

If I was shoert this stock.. I would cover and just walk away and look for another stock tpo play with.

Now if the Insiders hold there shares and wessal buys there shares that leaves 13 million shares to go around.. In my opinion that is not enough shares.

In my opinion we are gojng to need a 2/1 forward split.. probalby after getting listed on the Nasdaq.. Institutional Buyers and Mutual Funds willbe taking positions.. Remember these cash rich buyers like stocks that are growing earnings, revenues and if they pay a regular quarterly dividend. They like them evem more.

I honestly see this stock next year this time trading in the $8-12 range after a 2/1 forward split.. Call me unstable or crazy thats ok. In my opinion with a few moregood solid contracts. The gross revenues a year from now could be greater than 2 Billion Dollars.
Put your own Profit Numbers and PE in place..

For now I am trying to not get to wrapped up in the day to day PPS activities.. I am trying to keep myself focused on the muhc Bigger Picture and year or more down the road..

I do have some shares for the short term.. I will be selling some shares in about a month to pay some bills off and buy a new SUV/Car.. But the majority of my shares are locked up in a sperate account for long term capital gains taxes..

Hope all have a great day and week ahead. All MOO FFB-Fish I do not have time to go back and correct each and every little spelling mistake etc