On4 Communications Inc (ONCI)

[MoneyForNuthin]

ONCI - Fresh Start DD

Downward pressure on the pps from the 3(a)(10) selling is all but over.

With the 3(a)(10) stock sales 99.9% completed on 3/15 (maybe now 100% complete after Friday), the O/S was increased by only 12.4% - AWESOME!

With only 12.4% added to the O/S from the 3(a)(10) transaction, the proportional reduction in the benchmark pps value of ONCI - the pre-3(a)(10) share price of ~0.014 in early October - gives a pps of 0.0124. PPS is now ~0.003. Correction to 0.0124 represents a gain of 313%.

So let's see, what was that? The O/S was increased by only 12.4%, but the pps was pushed down from ~0.0140 to ~0.003, which is a nearly 80% drop in price. There's a correction looking for a direction. Gee, where's Waldo when you need him. I know he could tell me which way the price will correct.

The correction to 0.0124 based on the benchmark price is just a starting point - it's the initial price correction. What has the company done since the 3(a)(10) selling began putting downward pressure on the pps?

Quite a bit, actually - but for starters, it reported about $1,725,000 revenue, as well as about $780,000 net income. Yes, NET INCOME - 42% operating margin!

What else has changed since the 3(a)(10) selling began putting downward pressure on the pps (AND moreso from traders flipping down and flipping the low channel)?

• Balance sheet is much improved already and, with the proceeds shown in the 3/15/18 Quarterly Report just filed for PE 1/31/2018 (2018Q1), most of the debt will be wiped off;
  
• The 3(a)(10) shares sales went very well, increasing the O/S by only 12.4%, and this will contribute toward paying off $600K of the debt, or more;
  
• The $1,286,068 debt write-off is also a huge bonus;
  
• Oh yes, the ticker change, Colorado domicile, and the various new business segments and entities… these are all icing and gravy that can add a whole lot more - NONE of them take ANYTHING away from the current business and the existing value here - what counts is revenue, growth and ultimate long-term profit / margins. Yes, when these changes are made, and momo traders see the "pps-moving catalyst" of a ticker symbol change - and they can pump the new acquisitions pending, etc… they'll come in droves to "play" the stock for a short run. Long-term, and for M&A activity, sure, having the ticker change and the Colorado domicile wrapped up will allow for even bigger and better things - but they do not stop SB & others from make the market for the existing business.
  - Market Making is Steve's wheelhouse - not in the stock trading sense of the phrase, but in the BUSINESS DEVELOPMENT & PRODUCT DISTRIBUTION sense;
  
• Many new dealer distribution deals have been announced since the 3(a)(10) selling started, including quite a few since the period ending 1/31/2018 for the report that was just filed;
  
• Audited Financials - this is over-emphasized and overplayed, the latest trend in negative criticism for penny stocks when it serves a certain purpose (when unaudited reports are filed, some traders can be swayed away from buying, especially if there's a lot of talk about lies and deceit - from the CEO). This includes "soft" criticism - these are the ones loading heavy at the bottom.

- if you think the CEO may be fraudulent - and risking prison time - you should just run away now.

- if you're not comfortable with reading or analyzing income statements or balance sheets or cash flow statements… you're just gambling, anyway; otherwise, know that this is where the opportunity lies for out-sized gains.

- I'm very happy to see SB doing what he's doing and keeping as much focus as possible on launching the product(s), improving production/cost in tandem, and building the distribution as fast as possible… and improving/extending & customizing the product, as well. I have enough experience on my own to know that this is exactly what he should be doing - as top priority. I really don't give a crap about audited reports right now - that can come later. Why?

- Because: cost goes up substantially - in terms of $ AND management resources - when climbing each higher rung of reporting status: Pink, unaudited; Pink, audited; QB, audited (new listing, only recently made available); Pink, SEC reporting; Pink, audited, SEC reporting; QB, audited, SEC reporting

- I've bought and held - and made very good gains and $$ - with many stocks that were pink/unaudited, well into the pennies. One of them went over 0.25 recently (RXM$ - went over a nickel long before auditing fins). Yes, I prefer audited, SEC reporting. After that, I want them to uplist ultimately to the big boards. Lack of audited fins is NOT going to hold the stock down in the subs. Sure, for a short time it can be "used" while certain traders flip the channel and other traders and investors buy up the bottom prices.

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