Saturday, November 24, 2007 9:44:58 PM
Javelin Play:-UCOI-Caveman Poker
The penny stock operator’s tool box is stuffed with a whole array of tactics. These tactics are designed to of course to fool the investor into either making a purchase, adding to a position or just holding onto their shares. Only the sharp and experienced investor that has been around the block can spot the most clever of them.
Let’s face it, the average investor who is trying to match wits with a penny stock operator is destined to lose. It is the equivalent of a caveman entering a game of poker verses a team of card sharks. The game of course in most cases, is won before the first card is ever dealt.
In the game of penny stock poker, you generally get to see one or two cards in the hand. The tactics that follow of course are designed to make the remaining cards that you cannot see appear to be aces.
Today we are going to explore one of those tactics and see how it was played out on the investor. This tactic is one that I call “validating value”. This is when a purchase is made and touted of a stock purchase at or above the current market price in restricted shares.
The sum involved in the touted purchase of the restricted shares is generally a sizeable one. It is designed to give the appearance of “Big Money” recognizing the value of the investment and after all, if “Smart Money” has entered the picture, good things are naturally destined to be just around the corner… or so you would think..
Unfortunately for the investor, they normally only see half of the transaction. The restricted share purchase the investor sees is one of the cards. The card they generally do not see or recognize is the other half of the transaction which was for heavily discounted shares that were not restricted.
This tactic was recently played out with Javelin Advisory Group/ GGI’s back funding deal with FCCN. As part of that deal, GGI made purchases of restricted shares at $1 per share, all the while the stock was trading at a couple of cents.
Of course, if you took the time and effort, it would become obvious that GGI was making money over and above in the sale of shares and the $1 a share buys were nothing but what I call a “throwaway purchase”. A throwaway purchase is one in which the financiers never expects to recover the value from the restricted share purchase.
We also recently explored another Javelin Advisory Group company, GRXI, in which we showed how a back funding occurred in a lawsuit type settlement, similar to the FCCN/GGI deal, but without the complicated share issuance conversion formula.
Now however, it is time to do an exposé on yet another Javelin Advisory Group involved company, Unico Incorporated (UCOI). Here we have what appears to be another back funding with more “throwaway” market price restricted shares. The following was the headline announcement. (Full PR appended at end)
Unico, Inc. Announces First Round of $1 Million Private Placement Financing
Further along we read:
“On December 29, 2006, Unico sold 42,785,700 shares of its restricted common stock to an unrelated third party for a purchase price per share of $0.014 and an aggregate purchase price of $599,000. The shares were issued restricted pursuant to Rule 144 of the Securities Act of 1933.
A second private placement anticipated in the near term is expected to bring the total amount of capital raised through these two rounds of financing to approximately $1,000,000.”
"We are pleased to have accessed this financing and applied it to activities that are directly connected to our efforts to establish value at our subsidiary mining properties," said Mark A. Lopez, chief executive officer of Unico, Inc. "Our major focus remains the development and growth of revenues from the operations of our subsidiaries, and the ability to access adequate capital resources is an important element in bringing this goal to fruition."
To the untrained eye, this would seem like really good news! Unico had finally broken the crappy finance deals and had been able to raise capital at market price! To the trained eye however, something was amiss. Absent from the deal was any mention of the sweeteners that would normally ride along with large transactions.
Typically, one would expect a discount to market price, warrants or both, in a large transaction. This announcement however, was void of any of the customary discounts afforded to large investors in stock purchases. This immediately raised a red flag on the PR that something was fishy and that investors were not being given the whole story.
So if investors were being hoodwinked with the big investor story, where was the other half of the deal? The other half of the deal appears to be exposed in a subsequent SEC Filing. The Purchaser of the million dollars in shares was Cherry Creek Holding, LLC.
A quick search of Nevada Corporate, revealed that the Manager of Cherry Creek Holdings was non other than Shane Traveller, an ex 50% owner of Javelin Advisory Group. Cherry Creek Holdings was a newly created entity filed on December 19.
https://esos.state.nv.us/SOSServices/AnonymousAccess/CorpSearch/CorpDetails.aspx?lx8nvq=5g10eFK14Vrdb7RnvhCVig%253d%253d
As luck would have it, Shane Traveller has also been revealed as being associated with Sequoia International. Sequoia international was also involved in a lawsuit type settlement filed against Unico on December 6, with a settlement two days later as shown in the following link.
http://www.clerk.co.sarasota.fl.us/srqapp/civdetail.asp?tb_searchby=Company&tb_searchfor=2006+CA+011599+NC.
What was the settlement? I would normally say something like “a boatload of shares”, but in this case, I think we should expand the term into something more appropriate. How about “a shipload!”
From the third quarter report we have the following.
“As of November 30, 2006, the Company had 355,103,908 shares of common stock issued and outstanding.”
http://www.sec.gov/Archives/edgar/data/1110737/000126246307000010/unico1130200610qsb.htm
Further along in the same filing we find:
NOTE 7 – SUBSEQUENT EVENTS
“On December 9, 2006, the Company entered into a court-ordered settlement similar to those discussed in Note 5, above, under which it was ordered to issue 350,000,000 shares of its common stock in satisfaction of a debentures payable to Outboard Holding in the amount of $500,000. The shares were issued pursuant to Rule 3(a)(10) of the Securities Act of 1933 as amended.”
While there is no mention of Sequoia International in that statement, clearly when we go to the lawsuit, we find that Sequoia IS mentioned. My guess is that a huge chunk of that convertible debenture was assigned to Sequoia.
When one realizes that the shares outstanding prior to the issuance of the lawsuit shares was 355 million, and the settlement on the debenture was 350 million shares we suddenly realize that this transaction was a HALF OWNERSHP IN THE COMPANY. .
So at a market price of .014 on December 29, what was the market value of 350 million shares? About 4.9 million dollars. Suddenly, what I call the “back funding” of one million dollars at market price does not look to be very impressive.
Obviously there is more to talk about here but we will have to save that for another date. The next time you see a large purchase of restricted shares at market price in a penny stock, assume that you have not seen the other half (or more) of the transaction.
Derb
Unico, Inc. Announces First Round of $1 Million Private Placement Financing
SAN DIEGO, CA -- (MARKET WIRE) -- January 18, 2007 -- Unico, Incorporated (OTCBB: UCOI), a natural resource company in the precious metals mining sector, today announced that the company has received the first round of a what is expected to be a total of $1,000,000 of financing in the form of private placement investments in restricted common stock.
On December 29, 2006, Unico sold 42,785,700 shares of its restricted common stock to an unrelated third party for a purchase price per share of $0.014 and an aggregate purchase price of $599,000. The shares were issued restricted pursuant to Rule 144 of the Securities Act of 1933.
A second private placement anticipated in the near term is expected to bring the total amount of capital raised through these two rounds of financing to approximately $1,000,000.
The capital will be applied to the operations of Unico and to support the ongoing activities of its subsidiary mining properties.
"We are pleased to have accessed this financing and applied it to activities that are directly connected to our efforts to establish value at our subsidiary mining properties," said Mark A. Lopez, chief executive officer of Unico, Inc. "Our major focus remains the development and growth of revenues from the operations of our subsidiaries, and the ability to access adequate capital resources is an important element in bringing this goal to fruition."
Shareholders who would like to sign up to receive information by email directly from Unico, Inc., particularly when new press releases, SEC filings or other information is disclosed, are asked to visit the company's website at http://www.unicomining.com/IR/mailinglist.php.
About Unico, Inc.
Unico, Inc. (OTCBB: UCOI) is a publicly traded natural resource company in the precious metals mining sector that is focused on the exploration, development and production of gold, silver, lead, zinc, and copper concentrates at its three mine properties: the Deer Trail Mine, the Bromide Basin Mine and the Silver Bell Mine. The company has recently announced agreements to acquire over 70 additional mining claims. For more information, please visit www.unicomining.com.
Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and such Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operation results to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors, which could materially affect the company and its operations, are included on certain forms the company files with the Securities and Exchange Commission.
Contacts:
Gemini Financial Communications, Inc.
A. Beyer
951-587-8072
Email Contact
www.unicomining.com
OTC Financial Network
Rick McCaffrey
781-444-6100, x625
Email Contact
www.otcfn.com/ucoi
The penny stock operator’s tool box is stuffed with a whole array of tactics. These tactics are designed to of course to fool the investor into either making a purchase, adding to a position or just holding onto their shares. Only the sharp and experienced investor that has been around the block can spot the most clever of them.
Let’s face it, the average investor who is trying to match wits with a penny stock operator is destined to lose. It is the equivalent of a caveman entering a game of poker verses a team of card sharks. The game of course in most cases, is won before the first card is ever dealt.
In the game of penny stock poker, you generally get to see one or two cards in the hand. The tactics that follow of course are designed to make the remaining cards that you cannot see appear to be aces.
Today we are going to explore one of those tactics and see how it was played out on the investor. This tactic is one that I call “validating value”. This is when a purchase is made and touted of a stock purchase at or above the current market price in restricted shares.
The sum involved in the touted purchase of the restricted shares is generally a sizeable one. It is designed to give the appearance of “Big Money” recognizing the value of the investment and after all, if “Smart Money” has entered the picture, good things are naturally destined to be just around the corner… or so you would think..
Unfortunately for the investor, they normally only see half of the transaction. The restricted share purchase the investor sees is one of the cards. The card they generally do not see or recognize is the other half of the transaction which was for heavily discounted shares that were not restricted.
This tactic was recently played out with Javelin Advisory Group/ GGI’s back funding deal with FCCN. As part of that deal, GGI made purchases of restricted shares at $1 per share, all the while the stock was trading at a couple of cents.
Of course, if you took the time and effort, it would become obvious that GGI was making money over and above in the sale of shares and the $1 a share buys were nothing but what I call a “throwaway purchase”. A throwaway purchase is one in which the financiers never expects to recover the value from the restricted share purchase.
We also recently explored another Javelin Advisory Group company, GRXI, in which we showed how a back funding occurred in a lawsuit type settlement, similar to the FCCN/GGI deal, but without the complicated share issuance conversion formula.
Now however, it is time to do an exposé on yet another Javelin Advisory Group involved company, Unico Incorporated (UCOI). Here we have what appears to be another back funding with more “throwaway” market price restricted shares. The following was the headline announcement. (Full PR appended at end)
Unico, Inc. Announces First Round of $1 Million Private Placement Financing
Further along we read:
“On December 29, 2006, Unico sold 42,785,700 shares of its restricted common stock to an unrelated third party for a purchase price per share of $0.014 and an aggregate purchase price of $599,000. The shares were issued restricted pursuant to Rule 144 of the Securities Act of 1933.
A second private placement anticipated in the near term is expected to bring the total amount of capital raised through these two rounds of financing to approximately $1,000,000.”
"We are pleased to have accessed this financing and applied it to activities that are directly connected to our efforts to establish value at our subsidiary mining properties," said Mark A. Lopez, chief executive officer of Unico, Inc. "Our major focus remains the development and growth of revenues from the operations of our subsidiaries, and the ability to access adequate capital resources is an important element in bringing this goal to fruition."
To the untrained eye, this would seem like really good news! Unico had finally broken the crappy finance deals and had been able to raise capital at market price! To the trained eye however, something was amiss. Absent from the deal was any mention of the sweeteners that would normally ride along with large transactions.
Typically, one would expect a discount to market price, warrants or both, in a large transaction. This announcement however, was void of any of the customary discounts afforded to large investors in stock purchases. This immediately raised a red flag on the PR that something was fishy and that investors were not being given the whole story.
So if investors were being hoodwinked with the big investor story, where was the other half of the deal? The other half of the deal appears to be exposed in a subsequent SEC Filing. The Purchaser of the million dollars in shares was Cherry Creek Holding, LLC.
A quick search of Nevada Corporate, revealed that the Manager of Cherry Creek Holdings was non other than Shane Traveller, an ex 50% owner of Javelin Advisory Group. Cherry Creek Holdings was a newly created entity filed on December 19.
https://esos.state.nv.us/SOSServices/AnonymousAccess/CorpSearch/CorpDetails.aspx?lx8nvq=5g10eFK14Vrdb7RnvhCVig%253d%253d
As luck would have it, Shane Traveller has also been revealed as being associated with Sequoia International. Sequoia international was also involved in a lawsuit type settlement filed against Unico on December 6, with a settlement two days later as shown in the following link.
http://www.clerk.co.sarasota.fl.us/srqapp/civdetail.asp?tb_searchby=Company&tb_searchfor=2006+CA+011599+NC.
What was the settlement? I would normally say something like “a boatload of shares”, but in this case, I think we should expand the term into something more appropriate. How about “a shipload!”
From the third quarter report we have the following.
“As of November 30, 2006, the Company had 355,103,908 shares of common stock issued and outstanding.”
http://www.sec.gov/Archives/edgar/data/1110737/000126246307000010/unico1130200610qsb.htm
Further along in the same filing we find:
NOTE 7 – SUBSEQUENT EVENTS
“On December 9, 2006, the Company entered into a court-ordered settlement similar to those discussed in Note 5, above, under which it was ordered to issue 350,000,000 shares of its common stock in satisfaction of a debentures payable to Outboard Holding in the amount of $500,000. The shares were issued pursuant to Rule 3(a)(10) of the Securities Act of 1933 as amended.”
While there is no mention of Sequoia International in that statement, clearly when we go to the lawsuit, we find that Sequoia IS mentioned. My guess is that a huge chunk of that convertible debenture was assigned to Sequoia.
When one realizes that the shares outstanding prior to the issuance of the lawsuit shares was 355 million, and the settlement on the debenture was 350 million shares we suddenly realize that this transaction was a HALF OWNERSHP IN THE COMPANY. .
So at a market price of .014 on December 29, what was the market value of 350 million shares? About 4.9 million dollars. Suddenly, what I call the “back funding” of one million dollars at market price does not look to be very impressive.
Obviously there is more to talk about here but we will have to save that for another date. The next time you see a large purchase of restricted shares at market price in a penny stock, assume that you have not seen the other half (or more) of the transaction.
Derb
Unico, Inc. Announces First Round of $1 Million Private Placement Financing
SAN DIEGO, CA -- (MARKET WIRE) -- January 18, 2007 -- Unico, Incorporated (OTCBB: UCOI), a natural resource company in the precious metals mining sector, today announced that the company has received the first round of a what is expected to be a total of $1,000,000 of financing in the form of private placement investments in restricted common stock.
On December 29, 2006, Unico sold 42,785,700 shares of its restricted common stock to an unrelated third party for a purchase price per share of $0.014 and an aggregate purchase price of $599,000. The shares were issued restricted pursuant to Rule 144 of the Securities Act of 1933.
A second private placement anticipated in the near term is expected to bring the total amount of capital raised through these two rounds of financing to approximately $1,000,000.
The capital will be applied to the operations of Unico and to support the ongoing activities of its subsidiary mining properties.
"We are pleased to have accessed this financing and applied it to activities that are directly connected to our efforts to establish value at our subsidiary mining properties," said Mark A. Lopez, chief executive officer of Unico, Inc. "Our major focus remains the development and growth of revenues from the operations of our subsidiaries, and the ability to access adequate capital resources is an important element in bringing this goal to fruition."
Shareholders who would like to sign up to receive information by email directly from Unico, Inc., particularly when new press releases, SEC filings or other information is disclosed, are asked to visit the company's website at http://www.unicomining.com/IR/mailinglist.php.
About Unico, Inc.
Unico, Inc. (OTCBB: UCOI) is a publicly traded natural resource company in the precious metals mining sector that is focused on the exploration, development and production of gold, silver, lead, zinc, and copper concentrates at its three mine properties: the Deer Trail Mine, the Bromide Basin Mine and the Silver Bell Mine. The company has recently announced agreements to acquire over 70 additional mining claims. For more information, please visit www.unicomining.com.
Forward-Looking Statements
This news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and such Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are subject to risks and uncertainties that could cause actual results to vary materially from those projected in the forward-looking statements. The company may experience significant fluctuations in operating results due to a number of economic, competitive and other factors. These factors could cause operation results to vary significantly from those in prior periods, and those projected in forward-looking statements. Information with respect to these factors, which could materially affect the company and its operations, are included on certain forms the company files with the Securities and Exchange Commission.
Contacts:
Gemini Financial Communications, Inc.
A. Beyer
951-587-8072
Email Contact
www.unicomining.com
OTC Financial Network
Rick McCaffrey
781-444-6100, x625
Email Contact
www.otcfn.com/ucoi
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