Please check out ESVS as a possible short candidate.
You won't find a thread here for ESVS, but you will for NETZ. Read the thread, and the articles in Wired, for the connection, as well as some dirt.
It's a very amusing scenario.
What I *think* may be happening here is this:
1. ESVS facing delisting, insufficient net tangible assets
2. Create net tangible assets out of thin air, through a stock swap with NETZ. NETZ stock now carried on the books as a net tangible asset.
3. Apparent common control with NETZ.
4. ESVS to issue $50M in debentures (floating-rate, no-floor Reg S?) eventually, $5M immediately, for joint-venture with NETZ.
5. Intriguing possibility of debenture-holders shorting NETZ rather than ESVS, skirting hold-period requirements.
6. Conversely, ESVS shortable by us peons ($7 or so right now, and with a small-cap listing). NETZ is a BB penny stock.
I'd appreciate feedback from those able to digest the recent 8K from ESVS. |
