A lot of things to consider since KMAG received the 10 day SEC suspension.
Where does KMAG go from here? What will happen to the PPS? Should I try to sell now or pray for a miracle?
Those are just some of the questions that holders of KMAG shares are considering right now, regardless of whether you choose to admit it. Let's be honest. No-one liked seeing their KMAG cash value cut down by a third of it's value since the resume of trading.
Perhaps the most important question we should ask of ourselves is: As an investor/trader, what should I have noticed that might have precluded the SEC enforcement action?
There were plenty of flags here. We just refused to see them. I've always taken pride in the fact that I've managed to avoid having money tied up in a suspended stock, but, as did many others, I refused to see those flags being waved.
Perhaps the most telling flag was the relentless attack of a certain investor relations firm who publicly called JR on the carpet daring him to respond. Amid allegations of illegal selling of shares, gifting of shares, no share buyback, non-existent customers, no manufacturing facilities, breach of contract, and perhaps the most telling sign of all, the allegation of an ongoing SEC investigation. BINGO people.
Who has egg on their face now? Investors or the IR firm in question. No public response to these allegations except a shareholder statement denying any contract involvement with said firm. Does anyone really believe that if said IR firm knew about an ongoing SEC investigation that JR did not? I find it rather incredulous looking back that I did not catch that, but it was much easier to believe a conspiracy theory then the facts as they appeared.
Any CEO of any legitimate publically traded company that was verbally attacked by another organization with allegations of this magnitude, if untrue, would have fired back with everything at their disposal, especially with a so called high powered law firm such as JR has at his disposal.
Then we can look at the share buyback that just happened to coincide with KMAG shares being held down by Darth Seller. Is JR buying back, the company? It was a fiasco to say the least. Once the last Q comes out we find out about JR converting his preferred shares to commons right at the same time KMAG starts it's buyback. Yet most of you really believe that it was not converted shares being sold. JR could have converted those preferred shares to commons at any time and they would have converted to the cash value of the present pps, but he chose then to do it. Think about it very hard everyone.
What I am surprised most about is the propensity of many you still not willing to call a duck a duck. Even in the light of the SEC suspension, many of you think the SEC, or some third party blogger, is to blame here.
The suspension was an enforcement action by the SEC. It was not blindly done at a third parties whim. Questions were asked, facts were ascertained and those facts were presented and the SEC suspension was handed out to prevent future investors from being defrauded. Plain and simple.
The buck stops and starts with the CEO. Jeff Reid alone bears the responsibility for the actions that led to the suspension while investors bear the burden.
Now we have a good many posters spreading deception by claiming the SEC investigation is complete and KMAG will be receiving a no action letter. I've seen the e-mails. Read between the lines. What does no further action mean? Does it mean that the SEC is taking no further action until it concludes it's investigation or does it mean that it's investigation is over and KMAG is in the clear? Deal in facts from this point.
There are many good posters here that bring you legitimate information as it pertains to the SEC. Cassandra, Renee, Janice, Lucky are all above board in my book. Their presentation of the facts should not be ignored.
I for one fully expect to see more actions forthcoming from the SEC including civil and/or criminal charges. As holders of KMAG you can not be oblivious to this. It can and probably will happen.
It's been 4 weeks since the suspension and KMAG has not released the official reason for the suspension. Why is that? Keep asking yourself "Why Is That?"
I realize that everyone has their own opinion and I respect your right to hold that opinion. I'm not here to effect your opinion or to persuade you to hold or sell your KMAG shares. I'm simply expressing mine.
Good luck to all the past, present, and future KMAG shareholders.
AI
