Replies to post #53060 on CBA Florida Inc. (fka CBAI)

[necktoeye]

Now I am supposed to agree more Dilution is excellent? No... no way!

You have been here for over a year. RIGHT

What do you think happened in the past year? Dilution

Why the fuss now? I mean we all knew and saw this happening over the past 18 months. from 900 mill to 6.3 billion. And not one time did any of the few LONGS disagree with it. It was for the growth of the company. And now all of a sudden everyone is against this plan. HMM seems odd

There is no shareholder value for anyone going through that meat grinder because the future outlook hasn't been painted with a better brush. The 500:1 RS has a 75% Risk of Failure... published.

HAS NOTHING TOD DO WITH CBAI> those are other companies. Why not talk about the 25% that succeeded? Just wondering thats all

This is a fairly new sector with limited amount of money in it FOR NOW!!! that I will give to the Pittman. That is one thing he has been correct about. of course compared to the tech sector is is extremely low.

I don't think there is any comparison other than the obvious; it looks like a wash & rinse cycle to remove current shareholder interest in said company

Yea thats what Matt wants to do!!! He doesn't want any interest in the sector or his company. YEP I think that was his goal. COMON MAN

I guess big moves are gluton for punishment!!

Good thing is. flippers and daytraders are hating life about right now. Investors are chomping at the bit

[sfraven1466]

A counter to your 75% failure rate/misconception of R/S's, for the sake of a R/S


http://www.caseyresearch.com/displayCddPrint.php?id=417

While there are any number of instances that might make a good trading opportunity, like if a biotech company has a new drug that’s about to (hopefully) clear Phase III trials or have its NDA (new drug application) accepted, one way that shows particular promise in our eyes and seems less risky than others is identifying companies that are ripe targets for being uplisted to the NASDAQ in the near future.

An uplisting is the process of moving a stock to trade on a higher exchange. In this case, we’re concerned with companies currently trading over-the-counter (OTC) that may soon get uplisted to the NASDAQ. We’re concerned with such companies because prior to uplisting they will generally take some very recognizable steps to meet exchange criteria, and once they are uplisted, their stock price often jumps considerably and quickly.

So first let’s look at the steps companies take prior to uplisting, and then we’ll show some recent examples of gains that could have been made with this strategy and examine why it is that stocks often pop following an uplisting.

The exchange criteria issuers need to satisfy that is most visible to outsiders like us are stock-price thresholds and corporate governance requirements.

The NASDAQ requires a minimum share price of $4, so OTC companies trying to uplist will often undergo a reverse split in order to meet the minimum stock price level. When it comes to corporate governance requirements, two obvious tip-offs are restructuring the board of directors to have a majority of independent directors and creating the necessary board committees required by the exchange. Thus, the three main steps to look for that indicate a company may be positioning itself for an uplisting are:

1. Undergoing a reverse split to meet the minimum share price criteria of the exchange ($4 for NASDAQ).
2. Restructuring the board of directors such that a majority of directors are independent.
3. Creating the required board committees (audit, compensation, and nominations committee).
Now that we know the steps to search for, let’s look at some recent examples of the gains that could have been booked with this strategy.

RINO International (RINO) uplisted to the NASDAQ in July 2009 and initially saw its price jump 12% from $9.10 to over $10.19 the day the uplisting was announced. Since uplisting, the stock closed as high as $34.25 in November 2009 – more than 275% above its pre-NASDAQ price.

Deer Consumer Products (DEER) saw its stock trade up over 50% in one week following the announcement it was approved for listing on the NASDAQ. And it’s currently trading about 70% above its split adjusted pre-NASDAQ price.

China Bio Energy (CBEH) was trading at $5 in July 2009 and then jumped 10% on the day of its NASDAQ approval. It now trades at $11.37 – more than 125% above its pre-NASDAQ price.

L&L Energy (LLEN) is up 75% since it was uplisted to the NASDAQ in February, while the NASDAQ overall is only up 15% over the same period.

As you can see by these examples, tracking potential uplisting candidates appears to be well worth the effort. But why? The answer lies in the inflow of new investor demand that often comes with a company being uplisted to a major exchange.

Most institutional investors simply can’t (by charter) or won’t invest in OTC stocks. And since this is the case, research analysts are reluctant to initiate coverage on stocks prior being listed on a major exchange, contributing to the lack of demand for the stock. But as soon as an uplisting occurs, institutional money flows in and drives up price and volume.