PNSO info I found, a must read. LOL
Some of us here have been following PNSO (used to be PNSA). The stock was crushed today, down 47%. And here is why. Oh boy.... this about blew me away when I read this.
PNSO filed a SEC document today. Here is the link:
10kwizard.com
"On July 18, 2001, Financial Entrepreneurs Incorporated acquired control
of the Registrant, pursuant to a Stock Purchase Agreement with Danilo
Cacciamatta, acting on his own behalf and on behalf of certain other
shareholders of Registrant. Pursuant to the Stock Purchase Agreement,
Cacciamatta and the other shareholders agreed to sell 481,154 shares,
constituting 96% of the outstanding shares, to Financial Entrepreneurs
Incorporated, for $600,000 in cash, of which $250,000 was paid at the closing,
with the balance payable within 30 days thereafter. Immediately thereafter, a
new Board of Directors was elected, consisting of Thomas F. DiMele and Laurence
M. Schreiber. The Board elected Mr. DiMele as President and Mr. Schreiber as
Secretary and Chief Financial Officer."
So, let's put those numbers to work:
96% of the company was sold for $600,000. That means the company was valued at 4% plus $600,00 = $624,000.
PNSO then acquired Visijet. No terms have been released yet. Since PNSO was only worth $624,000 at that time.... PNSO will either have to issue more stock (and lots of it) or assume debt; likely both. Either way, there is massive dilution.
Now let's play the comparison game.
Value of PNSO at July 18th: $624,000.
Value of PNSO on August 3 (even after a 47% decline in price on August 2): 500,000 shares outstanding times 26 (stock split) = 13 million shares outstanding. 13 million times closing price of $1.85 = $24 million
So: DiMele and his cronies are sitting on a whopping gain of $23.4 million!!!! Not bad work if you can find it!!!
This still does not account for how they acquired Visijet. But as I pointed out above, they will likely have to issue more stock. How anyone could take PNSO stock as payment is beyond me….
Outlook going forward:
Now that we know PNSO is a complete scam (and the SEC document filed today confirms this), PNSO should trade much lower. For someone who is patient, I really think this stock retraces all of its recent gains. Target price is 25 cents. Timeframe: there will be bounces, but I think the stock will hit my target within 6 months time. |
