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Re: Tobyray post# 17074

Thursday, 03/15/2018 5:53:28 PM

Thursday, March 15, 2018 5:53:28 PM

Post# of 63447
First of all, I am very long on this stock...I've done a bulk of actual due dilligence (not like looking on the company website) on BYOC, Boustead, Maxim, George. I've run relative background and broker checks on most people involved, have looked for pitfalls, risk of private placement failure, etc. Have read reports on brokers within Boustead and Maxim, as well as looked at market competitiveness, crowdedness, and the ability for another major player in the B2B analytics to.

Non of that stuff brought me any red flags.

The goal of the company is to uplist to a higher exchange and get off the OTC. Why do they want to do that? Because business metrics often don't matter in the OTC and the company is over exposed to momentum trading and pump and dumps. Often times the company (BYOC in this case) cannot compete against the market makers actively shorting the stock.

How do we know market makers actively short the stock? Well...there are 1.01 billion shares owned, and a vast majority of those are either restricted or held by institutions. So if a retail person wants to buy 1000 shares of BYOC stock during the hype, the market makers will sell them the stock without actually owning it (naked shorting), making the market maker -1000. Usually they don't worry about naked shorting because the typical penny stock crashes anyways, when the person they naked shorted those shares to sells, the market maker is now even.

Here is what's happening with byoc, people arent selling these shares at the same rate they are buying them (hence the dramatic increase in share price over time). but this also means that the market makers are likely negative multi hundreds of thousands of shares.

So how does that market maker get even, meaning how do they get shares to not be naked, they have 2 options. They can either buy them directly off the ask, which drives the price up, or they can continue to short shares and sell more shares they dont have, driving the price lower and lower hoping eventually someone thinks people are dumping and they dump themselves to the market maker.

So why do I think this will not end up like a horror story like many OTC stocks, well as mentioned above, usually OTC companies cannot compete with the market makers shorting the stock, they simply dont have the money to fight the manipulation. This just one place that Boustead came in to help when we churned at 2 cents for like 2 months. Over those 2 months, I bet the market makers assumed a massive short deficit, which they are likely still in. Basically boustead provided enough support so that market makers could not efficiently cover but also not provide too much support that market makers dont want to keep trying to short, the more they short the larger of a squeeze we get.

Eventually Boustead's clients and such started buying large numbers of shares off the market makers, which eventually forced the market makers to buy shares back off the ask which further drove the price up.

Maxim is likely doing the exact same thing right now, but they are a much much larger bank and have the bankroll to get it done at this much higher pps.

There is another aspect to boustead...they were the lead underwriter for the private placement, the 10 million dollars that boustead used to acqurire service800 and likely a few other companies.

If george, boustead, and maxim convince companies bringing in significantly more revenue than 10 million dollars to merge their company for a couple million up front, that likely means the companies see the great ability for growth.

Most OTC garbos are "reverse mergers," BYOC is an "alternative public offering" https://en.wikipedia.org/wiki/Alternative_public_offering

These types of routes to public are highly successful if the right personnel is involved, and between george, boustead, and maxim (the dream team), i believe the crew is there.

I would assume the dream team does not want to let the PPS slip too low otherwise too many traders will hop on, making the road ahead a little bumpier. So what they do is bore you to death and try to buy your shares off you before you dump to the market makers.

The goal of this BYOC is to 1) build a successful company, 2) make boustead and maxim's clients and insiders a ton of money. We retail fools are literally here for the ride.

This is like all the fake shit that people talk about for OTC reverse mergers, but I think this is the real deal.


Sorry this is all scatter brained or whatnot but these are my thoughts on the given situation. Technicals on the chart are limited, I'd guess we see some reversal next week or so.
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