Tuesday, September 18, 2012 6:33:06 PM
Roo/Megz,
Regarding today's PR, it is now a fact that the suspension was unknown to JR prior to it happening, or else he'd never made the comment he did, with the SEC watching over his shoulder. Whether he ignored prior requests from the SEC regarding whatever matters, is another story.
It's highly encouraging that "KMAG stands behind all information provided to the shareholders as factual and supportable." Not only does this alleviate some of the immediate concerns, it also adds a bit more to the overall confidence in/of the impressive revenue growth.
That KMAG has "contacted their legal counsel Sichenzia Ross Friedman Ference LLP to immediately investigate the status of the order and what options the Company has to rectify the situation" suggests JR is wasting no time in possibly reversing the suspension before the 4 day rule is in effect. Slim perhaps, but still a possibility that KMAG might avoid the greys if immediate affirmative action is taken. Let's face it, the vast majority of suspensions are deserved, as witnessed by their (lack of) promptness in publicly addressing the matter. A company who can verify everything to the SEC shouldn't be forced to struggle through the same hardships the rest are, simply because they are accused of improprieties.
(JR set himself up bigtime though, by stalling so long on releasing the BB results).
It would seem to me that if the SEC were truly looking out for investors, they would be willing to make a quick determination (on behalf of investors) where a quick determination were requested, and possibly re-instate KMAG within the 4 days necessary to avoid the greys. Since the whole brunt of fraud revolves around issuing new shares under false pretenses, an 'exception' should be able to be made if proven warranted, especially since KMAG's a/s no longer provides for any new shares to be issued.
I understand all the rules and regulations, but I also know there's exceptions. In construction, there's 'variances'. In law, there's 'continuances'. Until 4 days are up and trading has not resumed, I'm gonna believe there's an exception possible for KMAG.
If not, and KMAG does go to the greys, all is still not lost. KMAG will still be able to announce monthly revenues and whatever JR sees fit. 'Value' can still be added that brings in buying interest, or reverses selling interest. Sure, trading will be handicapped, but it will still continue.
Just because KMAG may trade on the greys doesn't mean the pps can't go up. If it can go down, it can also go up. If 'value' is there, people will want it. Granted, the greys causes a haircut. Maybe 50%. Maybe more. All that means is if KMAG were trading at .03-.04 before the setback, it'd drop to .015-.02 after. So, as you can see, it's all a matter of 'value'. I guarantee that if JR announced American Airlines just ordered 200M tags, the pps won't suffer if/when we hit the greys.
As far as the Form 10 goes, until it happens, it's kinda irrelevant right now. I think our more important concerns are if JR can keep us off the greys, and if not, what he can do to minimize selling once trading does begin. Form 10 won't do a damn thing if it take 2 months to file.
Regarding today's PR, it is now a fact that the suspension was unknown to JR prior to it happening, or else he'd never made the comment he did, with the SEC watching over his shoulder. Whether he ignored prior requests from the SEC regarding whatever matters, is another story.
It's highly encouraging that "KMAG stands behind all information provided to the shareholders as factual and supportable." Not only does this alleviate some of the immediate concerns, it also adds a bit more to the overall confidence in/of the impressive revenue growth.
That KMAG has "contacted their legal counsel Sichenzia Ross Friedman Ference LLP to immediately investigate the status of the order and what options the Company has to rectify the situation" suggests JR is wasting no time in possibly reversing the suspension before the 4 day rule is in effect. Slim perhaps, but still a possibility that KMAG might avoid the greys if immediate affirmative action is taken. Let's face it, the vast majority of suspensions are deserved, as witnessed by their (lack of) promptness in publicly addressing the matter. A company who can verify everything to the SEC shouldn't be forced to struggle through the same hardships the rest are, simply because they are accused of improprieties.
(JR set himself up bigtime though, by stalling so long on releasing the BB results).
It would seem to me that if the SEC were truly looking out for investors, they would be willing to make a quick determination (on behalf of investors) where a quick determination were requested, and possibly re-instate KMAG within the 4 days necessary to avoid the greys. Since the whole brunt of fraud revolves around issuing new shares under false pretenses, an 'exception' should be able to be made if proven warranted, especially since KMAG's a/s no longer provides for any new shares to be issued.
I understand all the rules and regulations, but I also know there's exceptions. In construction, there's 'variances'. In law, there's 'continuances'. Until 4 days are up and trading has not resumed, I'm gonna believe there's an exception possible for KMAG.
If not, and KMAG does go to the greys, all is still not lost. KMAG will still be able to announce monthly revenues and whatever JR sees fit. 'Value' can still be added that brings in buying interest, or reverses selling interest. Sure, trading will be handicapped, but it will still continue.
Just because KMAG may trade on the greys doesn't mean the pps can't go up. If it can go down, it can also go up. If 'value' is there, people will want it. Granted, the greys causes a haircut. Maybe 50%. Maybe more. All that means is if KMAG were trading at .03-.04 before the setback, it'd drop to .015-.02 after. So, as you can see, it's all a matter of 'value'. I guarantee that if JR announced American Airlines just ordered 200M tags, the pps won't suffer if/when we hit the greys.
As far as the Form 10 goes, until it happens, it's kinda irrelevant right now. I think our more important concerns are if JR can keep us off the greys, and if not, what he can do to minimize selling once trading does begin. Form 10 won't do a damn thing if it take 2 months to file.
A Fool and his (KMAG) shares are soon parted.~
