This is from the Yahoo thread and pretty much explains the situation -- I'm sorry for anyone new to Accent who has been justifiably scared by what has happened to the stock recently (and probably sold for a substantial loss):
"All the information you need to know is in the last three months of filings. What
you don't know is the market plays. Go do your homework and read. ACNTF
posted 53%increase in sales. READ THE LAST couple of PRESS RELEASES. i.e.
ITALY and Sun Micro's (both are great) the company does EXPECT to post
numbers in the black (before dilution of 11.9mm shares). BUT READ THOSE
DAMN FILINGS.
On to more interesting things: "THE CONVERTIBLES WITH NO GOD DAMN
FLOOR".
Remember when ACNTF traded under the ticker ACNFC (just a month and a half
ago) that was because they did not have enough money in the books to meet
NASDAQ requirments. SOOOOOO they were ordered to find money and file a
10-Q before Oct. 15th, or somewhere around that time, however, in the quest for
money Todd decided that a convertible would be great, like the one they did in
AUGUST, stock went to $3.00 from $1.44 overnight.
Todd got in touch with the SHEMANO group, a Hedge fund and liked the offer
they made. (TODD SHOULD HAVE STUCK TO SOFTWARE and not tried to be
a market player). ACNFC recieved the $4,000,000 commitment, with an addtional
$1.7mm under certain terms. ACNFC filed their 10-Q and then NASDAQ allowed
them to trade under ACNTF again.
Now ACNTF has the cash and the investors have a note that can be converted into
stock 20% below the bid at any price (no floor). ACNTF authorized 11.9mm
shares of common stock (SB-2) and is in the process of registering that stock, the
outstanding stock will increase by 11.9mm shares having a material effect on
earnings. When the convertible investors want their stock they will inform TODD
and he will issue the amount of stock that is requested.
Let me ask you a question. If you could have $4million of stock at $2.00 or $0.50
where would you convert the stock? AT $0.50 right. Second, How do the investors
choose $2.00 or $0.50? THEY SHORT THE DAMN STOCK. That moves the
market down. ACNTF did the floorless $4mm convertible with a HEDGE FUND
group.
They make lots money on the short play. They don't have to worry about going
into the open market to get stock to cover their short position. WHY? Because they
are guaranteed stock 20% below the bid. So they take their stock 20% discount to
bid and go to the offer and sell it to us small investors buying.
JUST TO USE NUMBERS. Company "A" is at $1.00 bid and 1.125 offer. I go to
get my stock 20% below the bid (that equals $0.80)
I take a million shares that equals $800,000 I go to the offer($1.125) and sell
750,000 shares to the small investor that
equals $843,750. $43,750 profit and 250,000 shares left to help cover my short. At
this point I am not going to cover because my
selling will now drive down the stock. After I convert $4 million dollars into stock
I will use my left over stock to help cover my
short. The small investor sees the price of the stock move up a little bit and feels
good. SO THEY BUY, which at this point is what
I want to happen, I then blow the rest of mmy stock in a hire prices and rake in the
money 3 times my investment of $4
million.
Therefore I make my money shorting, plus money on my 20% discount stock and
you guys get scared so you sell which makes my job easier and gets me cheaper
stock BUT, when all said and done I have made 3 times my investment of $4
million. I put $8-10 million in my pocket and walk away.
That is simply an example of what is going on behind the curtains. The only thing
that management is not telling you is that "THEY MADE A BAD MOVE" raising
money with no FLOOR. read all 1200 posts for CTYS on yahoo for an exciting
and informative story of CONVERTIBLES. AND also to learn what is going on. it
isn't about sales or earnings or any of that fundemental BULLs..T"
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