Here's my take on this situation, my opinion, and sure to get buried. However, it is my reivew of the situation and just as worthy of a stickyas getting buried and ripped apart on this board.
Malvern is right, and the death of pennies is the loss of the original CEO prior to the patent selling off. Read about the history of penny stocks and you see that the CEO (TS) resigning (oh because he allegedly commited fraud with THIS company's stock by the way) is pretty much a death sentence for the very reason Malvern points out. Deals lined up often never get realized, and sometimes it because the new CEO has no clue who is who and what is what. Six weeks with the company? It is unlikely he has enough knowledge of the overall situation.
Then there is the question of manipulation of this stock on Friday. By all accounts this stock should have continued to suffer the stigma of a resigned, and accused of fraud CEO. Announcing a successor by no means should have lead to the volume and price climb we saw, maybe a leveling off of the PPS. Something is fishy there, and the stock dipped initially Friday and then someone buys shares at prices that lead to what in my opinion was fictional momentum, but yet the trades kept flying and the price paltueas and stays as the volume continued to fly high. Why? Someone was dumping shares and shares into this very questionable rally. They couldn't let it get too much higher or we'd all try to sell off and cut our losses and the PPS would tank too rapidly for them to sustain the dumping of shares. I may be wrong, and my logic flawed, and my assumptions many, but as I try to think out of this I keep coming back to my this suspicion.
Then I hear from someone that there was an attempted 100,000,000 million sell off at market close that could've buried the price and made Thursdays close look pleasant compared to the carnage that could've been realized had the stock not been suspended by the DTCC. My understanding though is because this is a pink that trading can still occur outside regulated channels. So as much as this is potentially a complete rumor, or certianly an exaggerated one, it still seems plausible on some level. Scott Trade wasn't shorting anything, they have no position on these kind of stocks, their Risk Management would not allow it. So they only have closed this down for transactions because DTC has made it so. Sure, there may be a numbers imbalance that gets worked out, but typcially this stuff is worked out after market close even if we had folks up until 3 AM. So the thought it is a minor imbalance to me is unlikely, it'd of been unlocked by now.
So IF those channels continue on Tuesday to trade this stock, folks may FEEL left out if there broker does not let them buy. As far as selling goes, you most likely wouldn't sell as your order won't fill when it plummets. They have so much float out there that you won't sell your shares until that stock drops well past whatever limit you would feel comfortable selling out at for a loss.
There is a strong lieklyhood those of us duped into being longs at prices above a penny (look at the capitialization of this stock, I should have done so weeks ago, but I did not know as much then as I do now) are never going to get our money back. Big deal, live and learn, but to try to keep those now depressed about their losses thinking this stock is not dead for at least a few months if not year or even forever is technically illegal but who's gonna prove it or find who is just being naive versus manipulative. Keep in mind though that ignorance is not going to save you from the law if they decide to find a few of the masterminds behind this mess.
Is SFIO legit? Maybe, they have a product, and I have bought it. That is all I know for sure, everything else is unknown. Even if they do get the US Patent and sell it and the Euro one, what is that worth to a company? A few million? Maybe? So they do sell it, and we all still loose our investment after all is said and done as the share value will be well below a penny.
Finally, if they do keep agreements, they still have nothing that will affect main stream smokers. They have a niche product for those trying to quit, at best something some smokers would be willing to use as a sub in certain situations. However, before all that happens they need the distribution channels which may desolve. With the questions aroung the litigation that have not even been asked yet, they may have voided existing agreements unwittingly.
Yep, I have accepted my investment in SFIO is gone forever. Fine, I mentioned I can hold this stock until it poofs officially. Hell, I may even gamble as I keep up on the companies website. IF it keeps selling product and the price gets to miniscule levels, sure maybe I will buy more in the hopes of getting something from nothing as the cost to hedge my current lost bet would be a weekend at Bernie's. Which would be poetic, as this stock is just like Bernie... Dead and being shown off at all the parties as if it was not only alive and kicking, but the life of the fricking party!
GLTY ALL
P.S. Thank you all for the lessons I have learned on this board, honestly, it's probably worth what I lost on this stock. So I am not bitter, and I have a cool story to share with my friends at the bar.
