I had to share this email with my fellow HESG investors. I just can't sleep in good conscience with this being on my mind and not yours. Do your own DD and come to your own conclusions regarding buying or selling this security.....
Email to TG
Tom,
We've had a few emails exchanged regarding the topic of dilution and my intent to buy $100,000 worth of this company. I told you I was waiting for confirmation of the trend and trading channel and was waiting the PPS to tackle .003 first. Currently, it seems, or the chart has defined a bullish trading channel with .0008 to .001 being the bottom of the channel. The stock tested that support today with a huge "RED" candlestick to the downside. My guess is the stock will break this support on Thursday and most likely re-test its next support level which is .0005. If it breaks .0005, it will go back to .0001 and become just another sub-sub penny stock to avoid. You see as the stock goes down you had this one opportunity to deliver and get the PPS trading in a more favorable price for new investors. Sub-sub penny stocks are usually avoided at all costs due to the amount of buying pressure it takes to get the stock out of this trading range. Even more so with stocks having large share structures, OS and float.
1. You have not delivered to shareholders the current AS, OS and float. You failed. This simple request could have avoided this price action and you have let so many people down and cost them thousands of dollars with these wreckless management blunders. Why is the transfer agent gagged and what is the current A/S, O/S and float??
2. This morning, I broke some rules when it comes to making a decision to push the buy button on HESG. I go to buy 1/4 of my position today at .008 (or place the order at bid), take your advice, plan to buy low, take a chance, put 25K down and TD Ameritrade tells me not the firm is not accepting new buy orders for this security. I am a reserved-platinum member with Ameritrade and have over 10 million in fluid day trading dollars. I have in my TD 401K account 8 stocks ( PCU, PRU, XOM, FTO, GS, OXY, PTR, PFE) all paying wonderful dividends consisting of over 250 million dollars in stock and cash. I have two other tiers of stocks bought, the next tier is emerging growth stocks not paying dividends 8 stocks (GOOG, SGU, BQI, CPN, CSCO, BIIB, AMGN, PDLI) and the final tier is emerging sector stocks (6 stocks).
In this very risky category (3rd tier) is where all my risky .pk and OTCBB stocks reside. I have rarely lost on penny stocks due to the amount of research I perform, the length of time I hold, my relationship with management. 3 of the 6 stocks I own in this tier of my account, management elected me an officer. I own 4%, 7% and 12% respectively. Three of the stocks trade on pink sheets and do not require ownership forms to be filed with the SEC. I submit my all ownership forms. When I submitted my last form, the pinksheet stock ran 120% on that day and is up over 600% since that news hit the market. Stability, transparency, growth. The 3 other stocks trade on the AMEX and OTCBB. This segment or diversification of my account makes me the most money. In 2006, I made 8,866%, 2007 12,655%, 2008 422%, 2009 18,293%,
My point is I selected your company for me to enter this new wonderful segment of the market place. I'm not a day trader, even stocks I buy this with portion of my allocated dollars usually are held for 60-90 days at a minimum. Once my price target is met, I sell and move on to the next stock in-line with my timing, price, sector etc. If at that point in time, the stock is stable, I place a 20% downside stop loss limit, until I find my next play. My advisor at TD set a price per share of .24 cents for HESG within 90 days. This is based on current fundamentals, current disclosed share structure, ventures in the works, market sector, controversial topic, could become something very big within the next 60 days if managed correctly.
My advisor (who they assign to me and I have worked with at AMID for over 4 years), I place all my own trades online and I have only purchased securities based on his advice 3 times during our relationship. He brought this stock to my attention on November 8, I bought a small position at .0004. I contacted you to try and get some crude answers about the OS. I called my advisor at TD he tells me the stock/company has been approached by the SEC and is about to be delisted to the gray sheet market anyhow now. He told me to stay clear because the restriction will eventually affect sell orders soon. The main complaint issued by the SEC was related to (3) MM's not being able to deliver shares to the DTC (they are short), the market makers are NITE Trading Inc, UBSS (TD Ameritrade, Inc) and SBSH (Scotrade, Inc.) The allege amongst other things, the company HESG had been paid monies to keep pressure on the ask using the outstanding share base in order for the MM's in question will have the ability to re-purchase their short position within the next 30 days. Once the complaint if filed with the court, the stock will be delisted for 20 days allowing the company to respond. If the company does not respond, it will resume trading on the grey sheet market place, have no bid, no transparency. He said the best price any current holders will get for their shares is the lowest allowable share price or .0 0 0 0 1. They have to sell at market, limits set at .0 0 0 1 will be met with silence and will never get executed. I'm sure you are already aware of this situation due to the SEC being involved. I plan on selling my initial position tomorrow only if .0008 does not hold support. I'm just so happy I did not buy my initial 25K of the 100K I planned to invest, yet said because this company had so much promise with it's intended market niche. .0001 to .24 cents would have brought some seriously motivated buyers to this stock and .24 cents probably would have been history within 6-9 months. The company could have initially filed secondary's to raise funds. Like I said these were the steps I would have taken.....
1. Stabilize the share price, Issue transparency for shareholders related to the A/S, O/S and float and how they directly relate to the recent retirement of 2B shares. Issue 8K.
2. Amend the articles to reduce the A/S to the current O/S. State no R/S will occur. Issue 8K.
3. Develop monthly reporting dates to follow-up on JV's and announce new JV's as they occur. Status of each, phase, etc. Issue 8K.
4. Prepare a recent legal opinion of company by company attorney. Issue 8K.
5. Prepare a recent initial un-audited financial document showing cash on hand, debt, existing revenues, financial agreements as they affect share structure. Issue 8K.
....In a few months... after operations as taken control and implemented initial JV's
announce a secondary offering at 80% of the daily share price with restrictions to protect existing shareholder equity... (i.e. if stock is trading at .30 cents, 100 million shares can be sold at .30 cents or above where only X number of shares can be sold providing X number of shares does not exceed daily share volume for the past 10 trading days etc. eyc. Allow for an additional 100 million shares to be sold at .50 cents, 50 million at .70 cents and 50 million at $1 with same restrictions in place. Effectively if everything went OJK, stock price did appreciate and met all targets and were allowed to be sold. This plan would have only issued 400M shares to the float and would have raised 140 million dollars. How many shares have you sold into the float at .001? My guess is a few billion. Lets say 2 billion X .001 generates 2M dollars in funding. How can you announce a 2B share retirement, then go out and dilute the share structure by 2 billion? Don't you have any conscience at all?? You wrecked any hope the company had to become a real company and have royally screwed existing shareholders at the same time. Bravo !!!!!!
If these (5) simple steps were completed and subsequent 8K's were filed, my advisor stated to me the PPS would be on it's way to .24 cents. I would like to know the company is preparing to deal with the on-slaughter on civil law suits that ultimately will be filed subsequent to shareholders being officially notified of the SEC action taken against this company. It also seems very apparent that the company is selling shares daily. It would be good to know where this money is going and how management plans to use these funds. Not sure how management could of let this happen.
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AI
