Pinnacle Activity Ticker
Somethings not right here
I have seen a lot of companies lately signing MOU's and LOI. The ones doing it seem to be heading for .0001 on the OTC. There is a brief rally then more dilution it seems by the company and the LOI and MOU are soon forgotten.
Then of course a new wave of LOI's and MOU's appear with a different spin. I don't want to paint all of these companies the same but it seems like a repeating pattern for the OTC. Now I go and look at how long its been since they said something the same. Usually I don't have to scroll down too far.
I want to mention one company ARSC not long ago it had under a billion shares and was getting set to lanch its hydra fuel cell. Then money was raised and lost somehow and the stock started to tank. Every month a new deal for a buy-out or merger seemed to hit the wire and new money would come in and the float would grow. Then today I got an email that I should get on board because some new company wants to buy them out and bring in huge cash. I looked up the float and found its now 12 billion.
The only value I thought might be if the shorts actually are forced to cover. The latest Finra shows 7 billion shorts on the company with a trigger point of .0003. Its interesting to note though that the company traded 1.2 billion shares today and it didn't move. I think the lottery might be better odds tyhan this one.
Thats my thought of the day, just thought I would share.
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Re: Somethings not right here
It seems we all figured it out together here!!
Just for fun I had a look at the sp - .0001
No surprise here guys. Hopefully someone saved some money!
Re: Somethings not right here
I love this, its a fact on any given day on the OTC.
Re: Somethings not right here
monimoni,
I know what you mean about the familiar pattern, particularly with ARSC. I have held their stock now for quite sometime, and they never seem to move forward.
As patient a person that I am, I'm about to unload them. I am really beginning to question if they aren't shorting their own stock. Who else would short a stock in the millions, that did not have inside knowledge of where the company was really headed?
Only a fool would do this. The shorters seem to be winning all the time. Luck this often is not probable. As time goes on, it appears more and more as a scam.
Re: Somethings not right here
Lots of scary ones, I have been looking more into Coffin's pick on CBIS. Lots of interest in the media, I loved the Governor going to the facility for a tour. If you calculate EPS this year and a multiple of 12-15 its does put them up to about $1.50 a share. A far cry from the 11 cents its at now.
Free trading looks like 26 million. I have been sitting on RIM stock I got cheap I may styart selling and spreading out into some higher risk and higher return stocks.
Re: Somethings not right here
You want to see an illusion ,check out SFMI on the IHUB. Thats the scariest management,share structure and resource calculations that I have ever come across pumped by an over zealous bunch of guys that really protect the illusion with a passion.Share price does not mean value.
Re: Somethings not right here
I clicked on to watch for a while, its like watching paint dry. How can so many pump this on Ihub even after they see its not moving an inch. If it was the company diluting you would think they would let it breath and have a little mini run to pop the price and create a better illusion.
Re: Somethings not right here
These types of deals rarely pan out.. so many shares out nobody knows who holds them all.. etc..
Risky business gents
Re: Somethings not right here
So far 200 million have traded on it and no movement up, a little bit sold less but no higher.
Re: Somethings not right here
Yes best to stay away, these lotto plays are a mixed bag and your stuck holding at the end of it. The MM's on these are tough as well, hard to buy and hard to sell when you want out. I don't like too many 4 letter stocks except CBIS but I don't want to spam your blog with my picks.
The warning signs come with very reular news, thats not common in the real world unless its a mine with drill results pouring in. Most companies are lucky to do news once or twice a month and investors are fine with that.
Its funny watching the cheer leading though on the OTC boards and the basher who lost on the last pump are there in force as well. I like to read the posts but never trust anyone elses opinion unless I know them and they have a long standing reputation for telling the stright goods. Lots of guys on Pinnacle that seem straight up, I won't mention the other boards but some are very bad.
Re: Somethings not right here
Promotions pay. There are always some newbies ready to cling to a dream of get rich quick.
MOU are usually a little stronger than LOI, imo. There is nothing like due diligence to make the difference between an obvious (after DD) scam and a possible ligitimate offer. Of course, we are not perfect and all make judgemental mistakes, but usually, those scams will be obvious. I remember one, not so long ago, offering, through a LOI, nearly three quarter of a million for some real Estate, payable in Preferred shares valued (the company said, ) at $5.00 and convertible to common shares. You guessed it, .0001. Yes, Pinks and OTCBB are the worst. Once in a while, there will be one that is at least plausible.
Best is not to get in any of these or, if one must, just putting aside a very small portion of trading capital.
JMO, wm
Re: Somethings not right here
After doing a follow-up I see I must make a correction. The Cash Minerals deal with Forum was a HOA. Heads of Agreement which has been terminated along with another HOA. Not a helluva a lot of difference from a investors standpoint between the two. I guess a LOI is more legally binding but the message to investors still should come across as cheap promotion.
Re: Somethings not right here
Monimoni, Sounds like thats one to stay waay away from. Promoters ,whether they are the company themselves or someone with a vested interest always point out how much you could have made after the fact ,if you had of done this or that. They will completely manipulate the circumstances in which we were suppose to purchase and sell in order to rely on their expertise next time,or if it be the company ,the next upsurge.I can think of some of the worst companys that this is happening right now. Even people supposedly outsiders on these boards(more likely IHUB) promoting on the very promises you mention. CHX on the venture recently had a Letter of Intent to buy into another Uranium companys assets.That puzzled me so I called FORUM Uranium and asked them where Cash Minerals would get the money.Two weeks later the LOI is not valid anymore,(withdrawn) Go look on IHUB and read some of the posts about SFMI. Their shareholders (pumpers) constantly making claims of Mergers,takeovers,really laughable. So many spin artists at different levels. OTC seems to be the worst by far. I hope I am getting the general idea of what you are bringing to our attention.