I'm going to jump in here for a moment. esq10, your sense of this is keen imho. In fact I just wrote an email about this very thing to another trader colleague earlier this eve.
I am fairly new to this stock but I like what I see. A couple of key points. First the company did a 1:400 effective Dec 31, 2008. Given the current chart (reflective of that SP adjustment), it looks to me as though the SP was ~.0001/.0002 at the time of the r/s. Afterward, as you would expect, the SP was taken out back. There was one squeeze cover mid '09, then the job was finished back to trip 0's as of the end of the year. These companies will never learn. But so be it. But the point there is given that 1:400 was just done a year ago, there can not be another one this year. Unless these guys really want to look like crooks (as they then would be). But given that, the only way to work out of this now is the good old fashioned way. Hard work. And that's exactly what they are engaging in by offering up a SB-B. And as I explained, where the SP is now, another squeeze of some kind is most certainly in the offing (provided many of the shares short aren't FTD's). Given the mid-'09 squeeze though, my take is enough of those shares are real (or will be made to be real for the sake of saving huge losses). I also like that they want to lower their debt in 2010 and create more shareholder value. If a company can't at least speak in those terms, forget it. After the speaking about it comes the doing it. So they are on the right track. What's left now on the stock side is a catalyst or two. And the SB-B is one such mode as would be this "acquisition" I have read about, that is now very overdue past Dec. Does it exist? We can't know. However the fact that it was still reference in the January 7th PR is a good sign.
>>The acquisition of Texas Mobile Health is progressing and now pends final documentation for completion. The acquisition is expected to add approximately $3-4 million in gross revenue per year. Upon completion of the acquisition, management intends to increase the availability and diversity of mobile services provided throughout 2010.<<
Then there is also the potential Home Health Care LOI that is dangling. But the reason I'm in this ticker for 1M sh is because I like that management seems to finally get it. Shenanigans don't get it and will be punished in this game 100% of the time. Starting with the SB-B is the absolute best way they could start this year off. Shows they mean business. We think. lol.
I'm posting tonight because of Trader_lou's thesis that this is indeed the beginning of the SB-B. I have watched those 9M sh blocks in AH since Wed in L2. First, I wasn't phased. Yesterday I thought harder. Today I said WTF. I think TraderL is on to something. I went back to examine the PR and there is plenty of room in there to support this thesis.
>>The company stated that the Board discussed several options with regard to the financing of the buyback and is awaiting further discussions with their attorneys, accountants and finance sources. It is expected that the Board will meet again in 2 weeks to complete a buyback strategy, though conceptually the board approved it. Management stated that it would announce any and all specifics with regards to the proposed buy back as details are finalized. The company believes that some market manipulation is hurting its stock price and management reiterated that it intends to aggressively act to support the stock and enhance shareholder value.<<
Notice they said it has been approved and they were awaiting further discussions with attorneys, accountants and finance sources. Those discussions could have taken place last weekend or early in the week. It appears they might have seen the iron was hot and it was a good time to be swift at these paltry levels to start sucking in the float. I can't really imagine many other scenarios right here given the block uniformity and time of sales. Yes, they were recorded as sales, but someone is always on the other side of every sale as a buyer. And obviously the transactions are off the official session's trade book, so with so many large blocks, mostly in uniform 9M blocks, there is some institutional formality to it. Is it a hedegfund liquidating a position? Maybe but I doubt it. Given the news of a looming SB-B, why would they right here? Makes little sense unless of course it's forced. Can't be a MF at these levels. As TraderL mentions, I believe they are attempting to crate their own squeeze here.
Another thing in the PR is they state:
>>It is expected that the Board will meet again in 2 weeks to complete a buyback strategy,<<
That word "expected" is not a definitive. They approved the act. They are free to commence any strategy at any time thereafter that approval, then PR what they have done. I think that is their intention here. "If" they have now removed ~87M shares from a ~404M float, that leaves ~317M. Esq's point is mine also. Given this stock made it back into trip 0's, it's entirely probable that out of 645 shareholders of record, ~200M sh may be locked up right here. That would leave ~117M effectively "out there" at this given time. Meaning shares will start to get harder to come by. This may be their "part one" of their plan. we'll have to see how it plays out but this thesis is plausible. And yes, with a lower float the SP will move faster and farther.
Outstanding Shares
1,358,759,000 as of Feb 3, 2010
Authorized Shares
5,000,000,000 as of Feb 3, 2010
Float(shares)
404,827,453 as of Feb 3, 2010
Number of Shareholders of Record
645 as of Feb 3, 2010
I also find it interesting that they took the opportunity to PR the actual float number on the 29th as well. Why? I found it odd to suddenly be so anal about the float. But now it makes good sense. I don't think it is a coincidence they did that then commenced to begin buying shares this week to lower it.
I think this ticker has some good potential. I think management is finally ready to get serious about being public and respecting shareholders. It is shareholders who can only give them the leverage they are seeking for further acquisitions. Lately, we have seen the darker side of shareholder abuse in several other popular penny tickers. As said, that will always be punished and the woodshed will be utilized every time. I wish these companies would stop thinking they can get away with their master plans of deception. I think BEDA gets it. We'll see. gl
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