DD Support Board and Research Team

[DragonBear]

What is CDFT....really trying to do?

CDFT seems to be playing a clever paper game. How do you get the herd excited as a credit card service, losing money? How do you keep issuing Series C preferred, convert, and sell as the herd dozes off? How do you hide a huge drag to the float in the future? The gambit is started with pretending you are going to protect the current stockholders:

These are hybrid securities that are designed to protect investors and investments from dilution, while ensuring that the Company does not carry debt on its balance sheet.

Translation: We intend to keep diluting out the kazoo. As a cover to enable a huge future dump, without any "dilution" CDFT announces they are going to R/S split the current common into oblivion: 1:12000, "anti-dilutive". The 178M issued shares go to 14K. Anyone holding 500K shares might be a little upset to find themselves suddenly only holding 42. How to molly-coddle the herd, and keep em primed for the coming dump?

Proclaim they will be applying for up listing to the NYSE-Alt, while knowing there is no way in hay they will ever qualify. As in a higher share price will be automatic. Then tell the herd they can convert all their common shares to Series D at a rate of 100K:1. And that "1" and only "1" will be convertible back to 100K. Then announce the initial common share price will be set to $2.50. The shareholder of 500K with a cost of 04 or $20K starts to get giddy. S/he will be able to sell 100K shares at $2.50 a share, or $250K total! Yippee!!! Also imply the other 4 shares will be given tons of divies - yippee yippee!

The set up bait: Everyone with 100K common shares will convert to the Series D. And when they convert back a previous share price of 04 will magically be transformed to $2.50 for everyone to sell into. Where the new NYSE-Alt listing will provide hand over fist buying volume at that price. Where in teleconferences management has implied the converted Series D will reconstitute the float post R/S. There is a missing piece. Besides the non-existent never to come NYSE-Alt up listing, the Series D, and resulting common are not registered yet. The clock for coming off restriction hasn't started.

The reality has a ton of Series C ready to be dumped. A mega dump to come from any Series E,F,G which are issued, and come off restriction to front run the Series D. Where the E,F,G are registered. They need only to be issued before the Series D to start their clocks. Unknown how many of the Series E,F,G are planned to be issued before the Series D will be registered. However, what is known is, buried in the 10Q is the note, the CEO was issued 20K Series E shares in June. Thus they are restricted for 6 months, and are convertible at a rate of 1:250K. Multiply a potential 20K*250K, and see what you get. And their clock is ticking for coming off restriction, unlike the Series D common per the unregistered preferred.

My tea leaves prediction is: The apparent plan is to keep the $2.50 dream alive by paints at $3.50. Already posts appearing claiming $1 seems like "cheap" shares. The herd has to watch the PPS plummet as they buy furiously to try to support the $1 and below PPS. After all, buying 100K shares at 0.50...0.25...0.10, and selling them at the dream price of $2.50 is still a good deal! Probably as the herd becomes tapped out, then management announces the Series D finally became registered, starting the 6 month clock for coming off restriction. Yippee? Then after completing the dump, they announce the NYSE-Alt won't occur after all. Months later the previous holder of 500K common at a cost of 04, can sell their new 100K common for 004. After another blitz of PRs about some wonderful new company investment, the herd can go back to dreaming about the $2.50 PPS. Where pumpers and the herd alike will have a pump festival. GL on that.

It's going to be ugly. Management in the meantime seems to be playing perfectly legal paper games. No apparent securities violations. Unless they muff the dump, seems they are safe from the SEC.