(Sorry for the length of post but I feel much better getting this off)
Blonde Bear is a "shell" company (a jcp) on the ASE. There are lots around that spend years doing nothing. Mainchan is a private company (that, in my opinion has little or no value, and no management). Brent Mainwood is President of Mainchan. BB announced that it was going to acquire Mainchan as its major transaction. Now the empty shell has value because everyone looks and says "after the major is consumated this shell will have the assets and contracts of Mainchan." For a long time BB traded at $0.20 because the market looked and said "So what? What's a Mainchan?"
The story I have been given (so many times I've stopped asking now) is that the ASE regulators want to see the financials of Mainchan before they will allow the final transaction to occur. As we all know, financials, even of a company that is actually profitable, take maybe weeks to prepare. Not months (stop telling us Brent that you still have to produce financials please).
My guess (and I point out it is only a guess because they couldn't tell us this is the truth)is that the regulators are saying the share price of BB, once it has acquired Mainchan, can not even come close to the market value. In other words, unless Mainchan can put some revenue in the bank, or some huge contract on the books, or some major investment equity into the kitty, if the ASE let the shares trade, they would come back to their original, pre-aquired $0.25 level (or less because now we're mad).
After the smoke clears I think what we will see (again only my opinion)is that the ASE will not let the major occur because some very smart analyst at the ASE, who gets paid to sniff out scams, caught this one before the fat lady sang and the price plummetted.
In other words, if there is not enough value in Mainchan to support a price of $1.45 how come the shares have risen to this price???
My Opinion: Someone, who quietly accumulated shares at very low levels, helped feed the rumor mill, then put strong pressure on the buy. The rest of us heard the rumors, saw the strength, and got on the ride. (We paid our money, we took our chances!) The original accumulator sold into this new money and continued to feed the rumors. Mainchan announced some deals and we all saw this as total validation of the rumors and the price move. Some smart analyst at the ASE saw the price move, heard the rumors, had probably met Brent Mainwood and didn't like or trust him either, and told Mainchan to PROVE their numbers.
My guess is that the long, long, long delay is because Mainwood cannot justify the numbers and he's hoping some miracle occurs to be able to support the current share price. After all, he's told everyone he knows how HIS DEAL MAKING ABILITY is what caused the stock to move. I don't think he thought anyone would ever ask him to prove it!! The ASE says "prove it or we will keep it halted." I believe a company has 18 months to complete the major or it is killed and they have to start all over again. In other words, Mainchan goes away and BB sits until the "handlers" find another Mainwood dupe to send up the flagpole.
So my question: Did Mainwood et al know and willing participate in the flag ceremony or did someone meet Brent once and figure his ego was right for the flagging??? Your comments please. |
