Apparently Tom the CEO is paying the loan they received recently back (the financing) and demanding the collateral be returned-8 million shares that are restricted. These 8 million shares have been SHORTED!
That is even better imo because who ever shorted the 8 million shares now has to come up with them (assumably through open market buying) and we all know how thinly this trades. Float is only 25 m or so.
The company's stock was shorted sold drastically the last 2 years due to a past financier wanting to take over the company by gaining control of the shares. However, the company worked out new financing the last 2 months, the short was paid off, and that short has at least partly covered his postion.
However, very recently the CEO achieved new financing and part of the terms were putting up 8 million shares as collaterol. Come to find out that the shares were shorted, again, and the CEO found out about this. He is very upset at this and is now in the process of buying those 8 million shares back. THe person who shorted the 8 million now has to cover his short position by buying on the open market. The beauty of it is since there are so few shares available to the public (maybe 10 million or so), buying back these shares will be very difficult without driving up the share price a large amount-a classic short squeeze.
Plus, the company itself is in the process of an amazing turnaround story, so expect further pr's in the near future which will only cause more buying by the public, driving the share price up even further.
Basically, what this comes down to is its like having shares in a company KNOWING that there is someone out there in the very near future who MUST BUY almost 1/3 of the entire float. Only one thing can happen, and that is a parabolic situation of the price moving up, especially when this break .08. Honestly, anything is possible as far as how high this price can go when the short covering begins.
quote:Originally posted by Johnwayne: Sounds like this one has a checkered past. Please DD hard before buying. Might be good for a quick run if there is in fact a short squeeze.
Johnwayne... I'm in at open...
Thanks for the information...The charts are set up to gap and run nicely without this new information...There was an increase the past two trading days filling the gaps as it increased modestly and volume is picking up... I can't cut and paste the chart but if you look at stockcharts.com you will see the RSI has turned nicely ...two white candles in a row and accumulation is perfect for a nice run...IMHO
If your information is correct this could be very...very nice...I need something to cover my IPRE losses...Thanks Duke...
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quote:Originally posted by Johnwayne: Hey Bear! How's the baseball season going for the kids? So you think this is gonna move tomorrow ?
Season went well...Softball we got knocked out in the regionals and baseball we were 2 and 2 getting knocked out the third day at the states...Great fun and the kids have one more year...I'll miss all of this...Probably be one of those guys you see hanging around baseball parks watching ballgames...there's nothing like being at a ballgame...hey?
I have been watching MLXO for over three weeks...It was highlighted at stock hide out as a possible investment at the time. I had been looking for the volume to pick up before getting in...and now there are a lot of folks who agree with it being ready...
The second white candle today and the increased volume convinced me tomorrow at open may be as cheap as this will be for a while..Your added DD was the frosting on the cake...
Are you getting in or are you already?
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I am leaning towards jumping in. Icould use a fast runner tomorrow to make up for EQBM today. SBTG and this may be all I play tomorrow .All depends on the open. I have a meeting 30 minutes after open so I may be out till the afternoon. Mets are really sticking it to me tonight Juice, 4-0 in th 6th.
quote:Originally posted by Johnwayne: I am leaning towards jumping in. Icould use a fast runner tomorrow to make up for EQBM today. SBTG and this may be all I play tomorrow .All depends on the open. I have a meeting 30 minutes after open so I may be out till the afternoon. Mets are really sticking it to me tonight Juice, 4-0 in th 6th.
If the Dodgers can come back and win all will be right in my world because the Yankees destroyed the Red Sox tonight 13-5 and slapped around Josh Beckett
-------------------- The difference between genius and stupidity is that genius has its limits
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quote:Originally posted by Johnwayne: All my info picked up from IHUB. Not sure if you consider that trustworthy or not. I'm not in yet but the story line sure makes it tempting.
You guys get CNES moving yet?
Been out of CNES again for a while now...In and out three times in the last 14 months or so... It remains on my watch list everyday just in case the H-Net breaks through...
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The company's stock was shorted sold drastically the last 2 years due to a past financier wanting to take over the company by gaining control of the shares. However, the company worked out new financing the last 2 months, the short was paid off, and that short has at least partly covered his postion.
However, very recently the CEO achieved new financing and part of the terms were putting up 8 million shares as collaterol. Come to find out that the shares were shorted, again, and the CEO found out about this. He is very upset at this and is now in the process of buying those 8 million shares back. THe person who shorted the 8 million now has to cover his short position by buying on the open market. The beauty of it is since there are so few shares available to the public (maybe 10 million or so), buying back these shares will be very difficult without driving up the share price a large amount-a classic short squeeze.
Plus, the company itself is in the process of an amazing turnaround story, so expect further pr's in the near future which will only cause more buying by the public, driving the share price up even further.
Basically, what this comes down to is its like having shares in a company KNOWING that there is someone out there in the very near future who MUST BUY almost 1/3 of the entire float. Only one thing can happen, and that is a parabolic situation of the price moving up, especially when this break .08. Honestly, anything is possible as far as how high this price can go when the short covering begins.
I will sell mine to him for $2.00 a share. That's todays special, tomorrow the price goes to $3.00 a share.
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