Replies to post #11896 on Sysorex Inc (fka SYSX)

[GenericGatsby]

Final question for you: does the U.S. government realize that the active contracts they have with Sysorex (quote below) are actually fake and that all three separate contracts, each of which had to be individually approved, are just outright fabrications?

Sysorex Government Services, Inc. (SGS), the Company’s legacy business, continues to grow. Year-to-date, the Company has invoiced nearly $9,000,000, which has allowed Sysorex to realize more than $750,000 in profit. SGS continues to leverage existing contracts to continue its traditional government services offerings and SGS management has a bullish outlook on the Blockchain space.

“The adaptation of decentralized ledger technology along with eventual regulatory guidance suggests that the largest potential customer for blockchain technology will be the federal government,” said Zaman Khan, President of SGS. “Government adoption within several of its largest departments is already impacting initiatives through the use of Non-Fungible Tokens (NFTs) and Decentralized Finance (DeFi) to improve supply chain integrity, security, transparency, and logistics. SGS will seek to unlock value from our existing government contracts and pursue additional opportunities given the expertise we have gained through Sysorex´s blockchain-related experience.”

“SGS has three best-in-class federal contracts that are considered government-wide acquisition contracts (GWACs),” continued Mr. Khan. “These are ideal contract vehicles to ensure that blockchain solutions are accessible to all government agencies and branches. GWACs are unique in that they are managed by a federal agency however the contracts can be utilized by all three branches of the government, any federal agency, the Department of Defense, and the intelligence community. The contracts, GSA FSS IT-70, NASA SEWP IV, and NIH CIO-CS, can also be used in some instances with state and local governments and systems integrators.”

I don't have a lot of faith in governments either, but don't you think it's a stretch to call this a scam if they are directly involved with offering services to the federal government? Do you think Uncle Sam just hasn't realized that he payed over $9,000,000 for nothing and that it's only a matter of time until he finds out, or what?

Addressing your points:
1. Share price manipulation is undeniable. Whether the impact of these infinite 100 - 400 share trades is significant or not isn't the point; it is happening and the effect is greater than nothing. Is it Bigger or someone else? Can't say definitively one way or the other, but it would be real convenient for me if I was a hypothetical supervillain to have an unwitting patsy like Bigger to take all the blame while I do my nefarious deeds. Maybe it's both and they're all evil, but until we get some kind of evidence the speculation is just that.

2. You're the only person who has ever thought of this as a bloated float. Nearly every single other poster on here has at some point told you that it's not a lot as far as the OTC is concerned, and that many other stocks have run up huge amounts with 4 times or more the O/S. You spoke once on your history with stocks that have like a few hundred thousand shares outstanding at most; that's an extreme rarity for penny stocks. You perpetually talking about how it's bloated does not make it true, and at this point I think you are arguing in bad faith.

3. The remaining debt is not huge relative to the expected increase in book value from the deal. They do have revenues and are expanding, but they took on too much to fast and have paid the price for that already. We stand to gain from the recovery, so focusing on the debt is kind of missing the point. Yes, that is how the price got this low to begin with, but now we are looking forward to heading back up as they deal with it.

4. The A/S raise will not even materially impact the price per share by the time it happens, let alone cause as much damage as you claim. It's simple math: the share price appreciates following the upsurge in book value once the $70,000,000 in preferred shares are added to the balance sheet, that is the market cap of the stock going up. Factor in a low, conservative multiple and the PPS is suddenly high enough that any conversions will be almost unnoticeable. This was management's plan from the beginning, that's why the deal is happening at all.

6. The idea that the deal would immediately fall apart is laughable. Ostendo is trying to acquire strategic resource production capacity that is vital to maintaining their business and which allows them to expand. They want this to happen just as much as Sysorex does. It's a mutually beneficial arrangement where both parties benefit in different ways. A delay would only happen in the instance of legal or regulatory requirements, dotting I's and crossing T's. If this is an actual obstacle, there are a lot players involved who all want this to happen in the near term, and who have resources they likely would be willing to lend in order to speed up the corrections process. Of course, there may be no delay at all and everything goes according to schedule.

5. Relying on other people to do your due diligence for you is the opposite of doing your due diligence. If you trust this person's word that much, then especially in the current economic climate, you should seriously consider hiring her as your financial advisor. Otherwise, her word is not strong enough by itself to be its own deciding factor on what you plan to do next.

6. Flipping in the short term has been viable thus far, in between the deal's announcement and the anticipated closing date. Too rich for my blood personally when the stakes are this high and the float is this tight, but I'm sure others have been doing quite alright for themselves. With that said, I think that the next time we go into the upper $0.07's, we keep going and never come back.

Even with just the basic OTC theory, the two days immediately prior to an expected big news event are when you would expect to see a lot of buying. Then on the day of, they will sell no matter what, good news, bad news, no news, doesn't matter. "Buy the rumor, sell the news," would technically also encompass the day of the event arriving at all, irrespective of any company announcements. If it is actually good news, they can get back in before a large run and they are still pretty early in. If it's bad news or silence, then they got out as quickly as possible.

My point is that there will be an increase in buying pressure from flippers hopping in for a quick turnaround, but it's this very upsurge in buying pressure that will end up triggering a longer term technical run, even before the fundamentals come through. "Buy to quickly sell" will end up becoming "buy and hold" because the PPS will keep going up when you think about getting out.

So I don't understand the FUD, and would like further clarification.

[pastrychf05]

If one person had all the knowledge of which company was a scam, and which

ones were not, I would assume they would be a multi-millionaire, or a billionaire

by now!

Unfortunately, it’s not that simple.