Funr (FUNR)

[SharonB]

ff: Lets look at this part of your post> I put my shares up and they dropped the bid... so its about control and the money
and how much did they dump it before the RS?
I did a little grammar work, didn't change the meaning or intent, IMO. SB

I have a bid in for 20K at .055, All or None. I did this for a reason. If shares came available, I'll get a fill. So far no fill. This confirms my opinion there is little float, almost no desire to sell at these levels, and demand could and probbly would radically change the bid and ask spreads/price.

Regarding control and money, this is the brokers realm, ILCI management gains nothing and is hurt by this maneuvering. They are hurt by the limit being set which prohibits even reasonable speculation. I for one would never enter into a situation where I have to have nearly an 80%-100% price appreciation to arrive at the profit side of the balance sheet in a non reporting company. Add no Press Releases for nearly a year and it is obvious why demand side pressure is non-existent.

I rather doubt the management dumped shares before the RS. I for one didn't sense selling pressure before the RS. There was a gradual degradation in the pps for a time prior to the RS, but I attributed it to dealer/broker activities on low volume. In other words, take the price down to where demand develops and volume picks up. They make their money on the spread and no volume is not good for them either.

The RS had no redeeming qualities for anybody as I know the situation. Since the RS there has been only 2 trading sessions where there more than 100,000K shares trades since the RS. The next trade was about 64K then down to the 20K region. So after the RS relatively light volume didn’t appear excessive. It would also be illegal to trade on insider news and I just do not believe they did that.
http://finance.alphatrade.com/index.php?page=quotes/history&s=ilci
I recorded the daily volume the day of the announcement and the volume was about 20,299,588. These were at prices down to .0002 and up to .0004. Even if the majority shares traded were from the management, which I doubt, it wasn't that significant. I just can’t believe the management thought this through.

I believe they wanted a higher pps for some unknown specific reason. As it didn’t change the market cap I have a hard time seeing a reason to justify the RS.

It did consolidate the major shareholders power relative to the minority shareholders and this is the only key that makes any reasonable sense. At the time of the increase in restricted shares, I felt this was an inducement to the new CEO/President. Then the restricted shares were also reduced by 150:1, so that sort of didn’t make a lot of sense.

Suppose now they issued more restricted shares to be used for incentives and then forward split. The weak shareholders would have already left and the new forward split shareholders would be in a more powerful position with the more leveraged position in the offer. I guess this scenario doesn’t make a lot of sense, but neither does this management at this time.

I hate the DARK.
SharonB