Re: VELA
The company is in the middle of closing their acquisition of China Motion Telecom. They originally got financing from Ironridge which was an awful move because it diluted the stock. It is widely believed that Isaac Organization and Ironridge are working together to keep shares down (through market makers SUNR, VNDM, VFIN, etc), because one or both can get more free shares at lower prices according to their agreement. Heck, Isaac bought a clearing firm last year. Do you think he wouldn't use that to fleece VelaTel's stock? Common sense says he would do it in a heartbeat. Just watch Level II for a day and you can see the manipulation plain as day. SUNR will have a cosmetic ask of 10k, but they will dump on any big bid. VELA has probably in the neighborhood of 250 million shares and with the share amounts that have been traded just over the past few months, there has to be naked shorting going on. The company trades for a little over a tenth of its yearly revenue (which if it still does after they actually close the China Motion acquisition, would be ridiculous).
Today's 600k payment towards China Motion is significant because it appears that Ironridge funds look like they were NOT used. It is also real money and not just a "pie in the sky" deal that the company is infamous for making. This would mean a new financer has stepped into the picture, which could mean significantly little or no dilution depending upon the agreement...otherwise why do it? The real test is the remaining 4 million or so that is due by August. VelaTel has already said they are selling Peru ops so one would guess that those funds would be put towards China Motion and the rest by the new "mystery financer". If Isaac and Ironridge get taken out of the picture, they will have little to no reason to pin the stock down - and if they are naked short they could get mauled in a nasty way if significant developments were to take place... such as a new, non-dilutive financer. If they were to take the company to court over wanting more shares, VelaTel could counter with asking for the trading records of Isaac and Ironridge... in which it is highly probable would show severe manipulation of the stock to make obscene profits. That is all theory and would be way down the road, but the significance of alternate financing (which was paid early, as well), should not be underestimated...even given the company's tremendously poor track record. Again, this is real money from most likely a non-predatory entity (Isaac/Ironridge). This would be the first time in years that money has come to VelaTel from someone not named Isaac or Ironridge...and that would be a big positive.
