Rich,
Great job sluething.
Where did you get the info on S&S?
Watch those two situations closely over a longer period of time.
I will respectfully disagree with you though, on two points.
1.The conversion of IGCA was probably used to sell the stock down to a level where short covering is more profitable. My guess is that they have unfinished business.
2.Bio-Plexis situation is anybody's guess. They may be so close to an FDA decision that they would risk a REG.S. I would ask why no conventional financing would be available under those circumstances, however. Respectable companies don't have to give away their shares at fire sale prices that slap existing shareholders in the face.
Believe me, an "investment" by these guys is not an investment in the traditional sense. That is, it's not in a stock they hope will go up and allow them to profit. It is the "investment" that they make money on, independent of the company's fortune. At least the after "investment" manipulations.
It's possible that the biotech company is a "real" investment by one, since both aren't involved.
I don't pretend to be burdened by excess knowledge on either of these companies or their situations. But I do know discounted financings, and I have yet to find any credible analysis or expert opinion that will say they are a good deal for shareholders.
Keep in mind that NTN has said they were facing bankruptcy without the financing. They have many "divisions" of the company that were considered growth possibilities that now look like money pits. The core business is contracting and must be losing money, or at best not making up for continuing losses corporate wide.
If they can't stem the tide operationally, or better yet show some growth, what is the bottom line?
You might want to look over the filing done regarding the financing. Look at the cash situation before and after. Figure in the building gain and GTK payment. Does it look like they are cash flow positive as they have been saying?
Then look at the trading pattern. It's gruesome at best, horrifying at worst.
I fear that without some huge news coming from IWN (doubtful at best), that sub $1 is on the horizon. Pray for Jan.1 when tax loss selling can no longer be an issue.
And oh yah, stop pimping me on the INNN thread. :^)
Dwight
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