I didn't get in until noon Mike, I'm 6 hours behind you. Check this out....
This is an email I received from someone I've NEVER spoken to. I don't know if the information is accurate or not. It raises some serious questions.
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I saw some of your posts on SI and wanted to commend you for your realism.
I wanted to send you something that was faxed to me today regarding the fundamentals of this deal. As you will see, there is a reasonable
explanation as to why there is a large short position continuing to build in this stock.
I want to make it clear that I Am SHORT, so that is why I am not posting anything.
If the fundamentals warrant a higher stock price, then so be it. However the stock should not go up on "calling your certs" or hype; it should be allowed to trade where the market values it.
Here is some info on the company.
OVIS had 914,401 shares outstanding prior to issuing 1,656,680 S-8 shares free to various stock promoters, over 400,000 shares issued under Regulation S and 500,000 shares issued to other persons for undisclosed purposes. In the past 3 weeks the promoters have raised the price from $.20 to $3.50 per share. If you look at the trading volume and take into consideration that this is a designated security, you can see what is happening. During this perios OVIS has not announced any significant events.
The OVIS balance sheet consisting almost entirely of sewing shops in
Nicaragua and Dominican Republic, paid for with 11,666 restricted shares when the stock traded in the $.20 range. OVIS then "appraised" the shops and put them on their balance sheet for $925,000. The company then wrote off $8,513,304 worth of assets they previously "appraised". The Company reported losses of over $18 million in 1996.
OVIS failed to provide audits for 1994 and 1995. In its last 10-K filing, the company admits to being overdrawn by $22,360. In the company's 10-K, management states that they don't know who the officers and directors are. Management also states they don't know who the controlling shareholders are. Having recently issued 2.6M free shares to stock promoters and other anonymous parties, management is clearly hiding their identity. The reasons are obvious.
With 3,071,081 shares outstanding and trading at $3.50, OVIS today has a market cap of $9 million. Does anyone believe that 2 sewing shops in Nicaragua and the Dominican Republic, bought for less than $2,400 worth of stock is somehow worth $9 million.
I hope this helps.
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Everyone should REALLY think about why this stock has moved up from $.25 after sitting there? Why the interest in buying shares and having your certificates sent in the mail, leaving investors unable to sell?
I'm believe a group of people are manipulating this stock. I don't know if it's the company or the promoters, or perhaps it's people here? I KNOW someone is and I'm pretty sure it's illegal. Whoever's doing it knows they'll walk away with a small fortune and a slap on the wrist by the SEC if caught. In the meantime, everyone here gets SH*T.
There's something like 20 full time NASDAQ/SEC officials that monitor conversation on the internet and I'd be surprised if they weren't checking this out.
The problem with this stock is, even if there's corruption in the MM trading, they'll hault the stock for who knows how long? I don't think the price would be higher if the SEC stepped in to investigate. It could be a long and ugly mess.
This is only my personal opinion and I could be wrong. Certainly wouldn't be the first.
Aloha |
