Well, I hate to say it but I've become a naysayer on OVIS.
I owned a few thousand shares but a variety of events this week have led me to head for the exits.
Up until today, I was stil thinking about what my entry points would be to get back into this stock. I would sure feel like an idiot to miss out on a 50 or 100 bagger. However, after doing some more digging I'm certain I won't buy until many details of this merger are explained.
For some reason I feel compelled to post my reasons for not playing this stock. I have not posted the reasons that it might make sense to buy, I think that has been quite thoroughly covered by others. I will acknowledge that there are good reasons to buy or hold this stock
Here goes: (some of the links may not work; SI seems to have a limit on the length of an URL. Cut and paste if necessary)
Oh, yeah. I have no financial interest in OVIS, RMIL, PRTI either long or short at this time. I don't know anyone who has any such interests personally. Nor do I have any direct relations with any of the principals from any of the companies mentioned on the OVIS threads to date. I stronly urge you not to take any actions based upon the statements I have made. The only reason I am posting anything is so that people can make their own judgements.
I doubt that I will continue discussing OVIS since I'm completely out now. Kugler may feel the need to save the little guy day after day, but I have a (minimal) life.
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1. There are many shares about to be released from lockup.
from:
sec.gov
(c) SHARE ISSUANCES:
During September 1996, the Company issued 1,500,000 shares for
services. During October and November 1996, the Company sold
13,100,000 shares pursuant to the exemption from registration
provided by Section 4(2) of the Securities Act of 1993, as amended,
("the Act") as well as Regulation S promulgated pursuant to the Act.
After reverse splitting is accounted for that means that there are 487,000 shares that will become legal for trading in the next 60 days. Do you think that someone who was paid with 13 million shares and then saw them reverse split and then continue to collapse might have shorted against the box? How does another half million shares
change the cartels calculation of short interest? Any way you look at it, when those shares hit the market it will drastically reduce the upside potential for the squeeze.
2. This fishy merger
(a) Companies merge to take advantage of economies of scale and reductions in overhead. Where is the merger justification here? T-Shirts and bottled water? Wait till you see the other businesses RCMW is in.
(b) Why hasn't anyone been able to contact RCMW and post the results of the discussion for the thread? You would think that managment would want some communication with a group that is
single handedly maintaining the value of their stock. Unless of course there are too many questions they can't answer right now without people bailing out.
(c) Then there is the 5 million dollar question.
OVIS issued 6,684,750 restricted shares of Rule 144 Legend common stock to RMCW shareholders, and will issue up to 2,500,000 restricted shares of Rule 144 Legend common
stock to be exchanged in lieu of Five Million Dollars ($5,000,000)
and;
The RMIL asset base is in excess of Twenty Million Dollars ($21,010,431) with the addition of
the Five Million Dollars ($5,000,000).
Quoted From: biz.yahoo.com
The company clearly expects to collect money by selling 2.5 Million shares. Where are they going to sell these shares and when? Both companies need a cash infusion, do you think
they are planning on waiting a year for it? Why doesn't anyone have a written statement on how the company will go about collecting this money. Riley recently said that the company still
claims they will not release new shares. Which part of the above press release says that?!
(d) Rocky Mountain has a subsidiary company (PRTI) that trades on the BBs.
techstocks.com
The last EDGAR filing on record for them is from 1996. They are in the lumber and oil and gas business. Their last filing claimed assets of $21M up from $7M the year before.
sec.gov
If RMCW owns PRTI and RMCW is worth $21M, but RMCW says they are worth $21 M how much does that make the bottled water business worth? What does OVIS add to this picture that now makes
them qualified for AMEX.
BTW On friday PRTI traded for 0.04, maybe we should buy them up too?
3. The TA change
This could be interpreted in many ways. Riley has posted one explanation. I'm am not going to speculate on what led to this change but would like to make 2 small points.
1) Is it normal to change TAs and stock symbols with no notice to the investors? I find refernces to RMIL in the latest press releases, but none that announce the symbol change or new TA.
2) The change will inevitably slow the certificate calling process. Since half a million shares are about to come out of lock-up that is not a good thing in my books. If Gary Morgan really loved you guys, would he do something to slow the squeeze?
4. Many people have invested in this venture excessively.
Matty Dee's recent posts are an excellent example, but not the only one. People who hold only OVIS in their portfolios could drive the share price into the ground if anything goes substantially wrong. In this event, fundamental values of the company (if there is any)
will go out the window as everyone races for the exit at the same time. There are many people in this using rational risk management strategies as well but it will only take a few people who are in over their heads to tank this stock back to 0.20 . So far group
reinforcement has minimized this effect but what if some real bad news comes out? |
