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ok Dixie7777, back now from doing other things..... I'll answer your questions. My point has been to bring out issues that don't seem to be discussed. I do not have any opinion of this stock one way or the other, just asking what I would consider very important questions. I am interested becuse I do play the BB's in my own account. I do not need shares at all. There will always be other stocks that run, and anyone that follows stocks knows this to be a fact. My trading is my own business. I do not share my buys and sells, as I feel those that do are self serving. If I needed shares, I would simply approach an insider and offer to buy his/her stock. (you probably didn't know this is done all the time) If I wanted to short the stock, I would have to go offshore, the stock is not marginable in the U.S. The float is huge for a BB stock. 7mm is a lot of paper to work through. In fact, the entire deal is paper heavy. Normally when a BB is reversed and merged, you like to see 5-7 million shares total, with anywhere between 500k to 1mm in the float. A typical shell deal will be 90/10 right off the bat, so there is 10% in the float, then there is the stock that is needed for I.R. and creating liquidity for certain people (read between the lines). As a non-reporting company, there are many compliance issues that are not in effect. I am not saying they are playing games, but that window is open if they so choose. When the reverse was done, the insiders probably are in for around 3 cents a share. That's very normal. Thats why the stock shows a $60 high, it accounts for the reverse. Also, 504 investors get the "cheap" stock also. Most I.R. firms won't take on a BB stock with a 7mm share float. It's a heck of a lot easier to manage a small float than a big one. You never know where the paper is comming from in this case, so the risk is higher. My game??? I don't have a game. I have seen this type of deal many times, and I really don't know if this company is going to be great or not. I know the odds are against it. How many BB companies make it to the levels that are being talked about on this thread??? Dixie, I don't hold any ill will toward you, just giving my thoughts on a pattern that I have seen before. |
