Everybody just sit right down and pay attention. Grab your favorite cocktail or better, grab your favorite DKAM beverage of choice.
Always look at the big picture. What makes stocks go higher? Say what you want but the ONLY answer is buying. What makes people buy? The mindset that a stock is undervalued and will return a higher price at some point in the future.
Now we can sit here all day and debate the merits of what news or corporate developments constitute the reason to buy. When the dust settles at the end of the day, 9 times out of 10, people buy because of increasing sales and then increasing earnings in that order. I could care less about a day trader or some gnat staring at a chart drooling for oversold or momentum. I'm talking the simple logic of the stock market.
As for this particular company, it NOW fits the mold of "why people buy." It has increasing sales that will without a doubt lead to increasing profits. You can get into what everybody else does looking for increasing margins-check, lower SG&A-check, international expansion-check, new product introductions-check, debt reduction-check, and on and on. That is what professional money managers do looking for an edge going out 6-12 months to put effective targets on stocks or to commit further dollars from their clients. Again, more little reasons to buy because each one is a precursor to higher sales and higher profits.
Red Chip didn't just fabricate numbers out of thin air. They talked to Kenny and put together a very detailed research report. He detailed those numbers to them before they were released to the general public. The stock went up 400%+. How convenient. How did that happen? Just like my example above shows. From buying.
Now Kenny is sitting on the best situation in DKAM's short history. All of the factors I just detailed are in place. Now is the time you have to pay attention. We're just realizing it now. In a world of Reg FD, the individual is always the last to know. That's how REG FD works. The retail investor is always the last to know, and we all find out at the same time. He didn't just land in Elias' office and said, "I have a widget. Convince people to buy my widgets." He had to do exactly what Rilo and I and a few others did. They put the numbers together and soon realized that ALL of the factors above are being met. All the "reasons" to buy are in place. "Now Mr. Elias. I have a business plan to implement that is surpassing even my expectations. So, from here it is up to you. Please talk to your 30000 clients of which many are hedge funds and convince them to buy. Of course, there shouldn't be much convincing needed. The proof is in the numbers."
Mr. Elias starts to talk to his "best clients". Next thing he knows, Dre is announced under contract. Just like Mr. Kenny told him would happen. Elias' "best" clients can't help but notice the magnitude of the news. (This is the part where you REALLY have to pay attention.) His right hand man Graci is noted for "accumulating large positions in stock without driving the price up." Has the price gone up since Dre was announced? No. It tried but suddenly it is right back to all time lows. How convenient.
The part that you have to REALLY see is when Elias tells everybody what is about to happen, only one of two things can happen. They buy because they agree. They don't buy because they don't agree. What part is missing? The part where the price of the stock goes down because they don't buy. Stocks DO NOT, I repeat DO NOT go down because somebody who knows all the reasons to buy in advance chooses not to buy.
Now, since Dre's announcement, who has ALL the reasons to buy? Anyone who sees all the items I listed above. But there are "just a few" more. Dre has all the reasons to buy. First is because he isn't being given any. He also knows the company isn't diluting on his deal. Now Elias' 30000 "friends" also know this. Dre has millions of fans. More than a few of them will buy because it is Dre. His "best" friends are the likes of Busta and Eminem and so on and all their friends because they are on his Aftermath label. All the DKAM management and board's friends have reasons to buy. They know first hand from just day to day conversations "in theory." I love that part. "In theory." Now remember, they can buy or they cannot buy. Then there are probably a few thousand, maybe more, people who have seen all the numbers and the merits for why the stock will go higher. They have every reason to buy.
Now let's just say for grins that all these people add up to 80000. Could be 50. Could be 20. It doesn't matter. It's more than 100. 80000 people, or 99.999999% of them all have a complete lack of respect for their friends? A complete and total disrespect for their hero Dre? A complete and total disregard for all the reasons to buy? A complete and total inability to take advantage of opportunity when opportunity exists? A complete and total inability to take advantage of their hedge dollars to take an enormous stake before anyone else does? Remember, these are the same people who buy solar stocks before a single panel is produced. They buy a potash company and run it to a level where they would have to sell the entire Milky Way to justify the valuation. They buy a stock that has mineral oil in the employees' bathroom because oil is $135 a barrel. They buy when the Dre product is announced. They buy when the company turnaround is in place. They buy when they find out Kenny has inked Asia and India. They don't wait until the cognac is outselling Courvoisier and Hennessey in its debut or the company is announcing its tenth shipment in 6 months to China.
Another reason they buy? It's because somebody else doesn't sell. Kenny and his boys and the board; none are selling. In fact, check the filings. Every one of them bought as much as they could recently. All those people that got millions of shares in the start up? All sold. All gone. Who is left, is ALL the people who know first hand ALL the reasons to buy and they own over 50 million shares. Might even be 60. Not many left to go around. In fact, since there are not many, what would those remaining shares be worth if you had them all? It is incalcuable. Because they would control the entire market place and could control to whatever exponential level they choose to take the stock since NO ONE can stand in their way with enough shares to stop them by selling. Well, except themselves when they decide to exit.
Even more convenient? DME announced. No action. Dre is announced. Price drops back to lows. DME tells shareholders stock price is down because of weak quarter. DME supposed to be talking about 6-12 months out at a minimum. They talk about 6 months ago to current investors. No one has YET to post a single conversation about what Elias is telling one of his current customers. I guarantee you it is completely different. Kenny tells people over and over the market is misvaluing DKAM and it is severely undervalued. Now after he gets DME and Dre, he now says "small caps are down everywhere." The company goes 9 weeks without a press release as a myriad of events are unfolding at the company. The myriad of events? All the reasons for a select few to obtain as many of the available shares as possible. How do you get them all? Institute a trading program that eliminates large block buying and allows one party to accumulate all the available shares.
You cannot convince me that not one person sees it. You cannot convince me this isn't happening. Control the marketplace. Get them all and use whatever means necessary to get them. It is happening and our job is to make sure they get absolutely none of ours. Like I said before, their game WILL without a doubt be taken away from them along with all their shares.
AI
