Duelittle2 and ALL, here with KATX...
I would be careful on the ”sell on news” logic here with KATX, but to each its own and such should be respected either way. I wish everyone well. I am confident that KATX will be having their share of news of substance over the course of a fair time. Many people got caught off guard very bad in doing that ”sell on news” logic with that other mining stock that we all are familiar with that starts with a "S" that went up a few thousand percent. Often that is the norm in the penny stock world, but KATX is one where I think investors might want to tune their due diligence (DD) antennas up a notch or two.
When I spoke to the CEO (Ken Stead), even though the share structure is still awesome, I asked about the increases in the share structure over such a short period of time. He assured me that not any of the increases in the numbers are because of the company selling shares. He said that although it’s not from the company, he knows where it’s coming from and they will be stopping soon due to them running out of shares. From the looks of how it traded into the close today, it appears that whoever was selling is done. It also looks like there is a shortage of shares of which has already been confirmed by Ameritrade of which I will explain later.
The CEO told me that there were two 504s that were previously out there of which one he knew for a fact was done and that the other should be done already too as of late. The shares that were sold over the past few days from the previous 504s were absorbed already if I had to guess from doing my DD. He told me that he will not hurt us shareholders with doing any 504s again. He informed me that even as of just recently, he was called and made offers for four different 504s yesterday and two different 504s today. He turned them all down as he told me that he really had learned his lessons from the company’s two previous 504 experiences. He understands the importance of us shareholders and building our confidence by keeping the share structure tight for them to move forward in the big way that they are preparing.
Some people I know sold today because they didn’t understand the increase in the numbers given to them by the Transfer Agent (TA) yesterday and today in thinking that it was the company diluting not knowing that we don’t have any dilution concerns here with KATX as again, it was not from the company putting any shares out there. The company was in the process of transferring/changing their TA. By the time the shares catch up with each other between the two TAs, along with the last little bit of selling from the 504s in between transfer with the TAs, it should have been understood that there could have been a slight little delayed reaction in obtaining finite numbers.
The CEO does not have the exact numbers just yet, but he thinks that when the dust clears soon that the Float will be something in the area of below 150 million shares as a worst case and the Outstanding Shares (OS) in the area of 290 million shares as a worst case. The beauty about this is that those shares have been already bought and “accounted for” out of the share structure… as investors have already scooped them up in my opinion. This should be very evident as the volume over the past four trading days was 106,352,496 shares where KATX traded from .0055 to .028 per share with the recent high of .028 per share as a close for today. Those recent numbers given to investors by the TA over the past few days are ”after the fact numbers” that were given, but they are still close enough. Some investors really should not have allowed themselves to be spooked by such, but instead to simply do their DD and trust their DD.
If anyone was going to be scared about any disparity in numbers from the TA, they should have been scared back when the buying started when KATX was at .0028 per share last week on 9 Nov 09 with 26,384,924 shares in volume and only moved up a few ticks… not now after the shares have been absorbed into strong hands. Now, the next few legs are in order because the Float is nearly absorbed… or will be soon (IMHO). The CEO prides himself on being transparent and he has a very deep respect for us as shareholders. We all have no idea how much we should appreciate Ken Stead as our CEO, but this is what we all will have a great time in learning.
Also, the CEO did assure me that he would clear up any fears existing about the share structure in short order in due time to let the shareholders know that they have no concerns about any further dilution. I’m increasing me feelings about KATX in thinking that many of us are really being in the ”right place during the right times” as shareholders here with KATX.
v/r
Sterling
