This article is inspired by TMAN and is
extracted from a response to his article.**
Quite the coincidence you would ask about
this stock. I have looked at this company
a number of times over the past year. This
is a company of interest to me.
I will urge all readers to carefully read
all SEC filings for this company and to use
your usual sources to read all company news.
Most SEC filings and company news, are fairly
positive in nature. Yes, I am interested.
A general overview is this company is in the
red ink, but is improving very well. Upon
reading SEC filings you will note they have
cut their losses in half, administrative
costs are slightly down and revenues are
moderately healthy. RNKE does not have
very much cash on hand, which is a concern.
Another SEC document, registering of common
shares, would normally be a red flag for
possible dilution, but this does not appear
to be the case, although no guarantee.
RNKE registered a lot of shares recently.
In their SEC filing, it does appear they
are preparing for convertable loans, if
needed, with a clause of common shares
offered as security will be sold at a
price of average current prices which will
keep dilution to a minimum.
There are some healthy points about the
management team. They do have a stock
buy back plan in action. This is almost
always positive. This reduces chances
of dilution via convertable loans.
Managment has taken steps to prevent stock
shorting by Market Makers, which is a real
problem. Those steps are reducing common
share float, holding shares back to limit
float, and urging investors to register
their shares so they cannot be shorted.
There is a danger. Market Makers are actively
trying to suck every last dime out of this
company and out of investor's pockets. This
is, Market Markets, as is so typical, are
trying to "steal" every penny from investors,
every chance they have. Market Makers' intent
is remove all money and leave this company
in a state of bankruptcy.
Have I mentioned you should join our war
against Market Makers? Do so. You are foolish
to not join the war against Market Makers.
RNKE is fighting back against Market Makers
as noted above, but this is a tough war.
Those "Big Boys" (Market Makers) over on
Wall Street, most often win because the
SEC deliberately ignores their highly
unethical activities. I hold an opinion the
SEC is riddled with corruption.
Am I plugging the war against Market Makers?
Yes, I am. However, I am also warning you
Market Makers might destroy this company
and take all of your money. This is a risk
which should not be ignored.
I do like the company sponsored news in
recent months. It is positive and a lot
of it is related to protecting investors,
such as paying off debt in cash instead
allowing stock share conversion which
causes dilution. This is very prudent.
Couple of years back, a reverse split took
place but I see no indicators of a reverse
split happening again. I read a lot of effort
at preventing stock value dilution.
Revenue, RNKE does appear to have thier
local city in their pocket. Lot of municipal
government sales and service. A good point
about this is they sell strictly software
and support. Why this is good is RNKE will
not have to worry much about capital venture;
they have no need for hardware, buildings,
no expanding infrastructure, no production
costs and all that. RNKE is in pretty good
shape on that end. This leaves them with an
ability to focus on sales and revenue through
their sales force and advertisement.
Returning to local municipal government,
their local community, this represents
their market; they are limited. RNKE sells
"IT Services" and they have a lot of serious
competition in this area, but not so much
in their local community.
Each local community of moderate size and up,
have their own IT specialists trying to sell
software and services. Otherwords, each city
is already "bundled" locally. It will be very
difficult for RNKE to expand beyond their
local geographic boundries, literally.
Their prospects for market expansion are
severely limited. This is a negative.
Another negative is RNKE is in default on
back taxes and a small business loan from
a couple of years back. Money involved is
substantial being just shy of a million.
However, a personal opinion, if the IRS
was going to whack them, this probably
would have happened already. Usually, if
a company shows good faith, a deal can be
struck with the IRS. Small Business Admin,
they are usually very forgiving. RNKE has
shared no comment on current status. Do
not dismiss this possibly of being hit
by the IRS; it could happen.
Overall, RNKE is doing moderately well.
Losses way down, costs down, revenue is
ok but nothing to brag about. RNKE does
seem to have a management team doing all
the "right things" to protect investors.
They are limited to local revenue.
I would invest in this company and most
likely will. Do not expect great profits
for a very long time, a year or two at
least. My opinion is this would be a safe
very long term investment.
On investing, I would wait a few days, maybe
a week or two. RNKE is displaying an expected
price pull back as most stocks are. This is
not something which alarms me. Wait for this
stock to correct for the Santa Claus effect,
then think about buying. RNKE should fall in
price just a little bit in the short term
because of value over-inflation by not so
bright Santa Claus investors.
Do keep in mind Market Makers are actively
trying to suck every last penny out of this
company for their own personal gain and greed.
This will be a problem for a long time.
Sucks to be a Market Maker.
I give this company a thumbs up for a
long term investment.
Please do consider holding off on buying
for a short period of time to allow the
price of this stock to correct, downward.
No problem but it should fall just a bit.
I urge you to wait until the "real" bottom
support price appears. Pretty close now
but not quite there.
Never forget I could be very wrong, I could
have missed something in my research. You
might lose money by giving my opinion too
much credit. Research well and make very
careful decisions independent of my opinions.
Purl Gurl