posted
So let me make sure i understand. Once they do this buyback thing. Say i have 1,000,000 * .0001, that will turn to 100,000 * .001.
In addition to having the 100,000 shares, we will also get $900 debenture. We have the option on getting that cash in 5 years OR getting 90,000 shares of some other symbol trading at .001.
quote:Originally posted by megahead34: So let me make sure i understand. Once they do this buyback thing. Say i have 1,000,000 * .0001, that will turn to 100,000 * .001.
In addition to having the 100,000 shares, we will also get $900 debenture. We have the option on getting that cash in 5 years OR getting 90,000 shares of some other symbol trading at .001.
Do i have a clear understanding?
No. This whole buyback scam is botched.
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posted
Analysts Say Gold Prices Still Expected to Rise
By Tara Perkins 05 May 2006 at 09:12 AM EDT
TORONTO (CP) -- Investors who haven't bought gold have already missed much of the gains in the precious metal's soaring price, but numerous market observers claim the metal has not lost its shine yet.
Consumers and investors pushed demand for gold to a record level of $53.6 billion last year, fuelling the precious metal's price ever higher.
While investors on the sidelines have already missed a large price runup, many market observers claim the metal has not lost its shine yet.
Martin Murenbeeld, of M. Murenbeeld & Associates Inc., cites numerous reasons why ''the goldprice is likely to be in a bull market for some years to come.''
First of all, there is little new supply. Exploration waned during the 1990s as real goldprices fell sharply, and mine output is unlikely to rise significantly for years to come, Murenbeeld says.
But new production isn't the major factor influencing gold. While mines churn out about 2,500 tonnes per year, there are about 30,000 tonnes of gold sitting in central bank vaults, and 15 of those banks have agreed to limit gold sales, Murenbeeld says.
On the flip side, some central banks are rumoured to be looking at buying gold to diversify their assets. For example, only 1.2% of China's reserves are currently made up of gold.
At the same time, many economists expect the US dollar to decline. ''Historically, all else equal, the dollar price of gold rises as the dollar itself weakens,'' Murenbeeld says.
Finally, demand continues to expand.
Last year, demand for gold jewellery rose five per cent to 2,736 tonnes, industrial demand rose two per cent to 419 tonnes, and investment demand rose 26% to 600 tonnes, according to the World Gold Council.
''The fourth quarter in particular saw substantial inflows of institutional investment into gold,'' the council stated. ''Investment in Exchange Traded Funds increased by 79 tonnes during Q4 alone and it is estimated that other institutional investment in the period approached 200 tonnes.''
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posted
seems to me that most people are bailing at .0001...Doesn't have a chance to move...But they'll be the first people bashing...If they would just hold they can sell for a higher price...Me thinks there are a lot of people on the sidelines willing to chase...But when they see plenty of sales at .0001, they keep their money in their pockets!
-------------------- Scared money doesn't make money
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posted
MAybe I am a bit confused about what is going on. Is there going to be a RS on this or is this an option to sell back to the company?
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posted
I have some morsels left over on this, made 300% 1st week of March on this....got the preferred, kept it in my novelty collection along with CWFG....lol
posted
Frank, you are wrong you said "1,000,000x.001=$1000 100,000x.001=$100+ a option to buy 90,000 shares for $900. So for the most part you are trading $1000 for $100 and a chance to buy stock at 10x the price"
1st of all the price is at .0001 so the 1,000,000 shares you have cost you $100.00, not $1,000. They becomes 100,000 at .001 which is still $100.00 worth. The only reason you would buy any shares from the debenture at .01 would be if the price actually got to .01. If that happened then your 100,000 shares would be worth $1,000.00 or 10x your original investment. You loose nothing.
-------------------- corn oil comes from corn, olive oil from olives, where does baby oil come from?
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the problem with this deal is that the price it's at now is the lowest we can trade it at. If 1,000,000 becomes 100,000 at .001 then the price can drop all the way back to .0001 making you 100 dollars $10.
-------------------- corn oil comes from corn, olive oil from olives, where does baby oil come from?
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posted
If you think that there are going to be a ton of shares flying off the shelf at 2, I can't even imagine the stampede if it hits 3. I have already put my sell order in for 3 and will leave it open all day just in case.
-------------------- If ignorance is bliss, why aren't more people happy?
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posted
A "convertible debenture" is a type of business loan that leaves the lender the option of taking stock in the company instead of repayment.
In theory, the market price of a convertible debenture should never drop below its intrinsic value. The intrinsic value is simply the Number of Shares Being Converted at Par Value times the Current Market Price of Common Shares.
It is safer than preferred or common shares for the investor.
aight guys, they took out a loan to buy back stock, but then they turn around and pay off the loan WITH stock, lol so they will be putty the shares or a portion of the shares back out onto the market eventually. I guess. I will call my business banker monday to give me the Easy to understand explenation on the PR but ya. That's what I got so far. It's a business loan which they are using to buy back stock, which will push the price up then down the road they pay off the loan at a market value or whatever and of course they (whoever gave the loan) sell them back into the market to make their money.
posted
I was reading back, it seems like there is some confusion and some people thought they were getting a debenture or something. They took out a loan using a debenture to buy stock back from us. And then they will pay back the loaner with stock.
posted
A company that issues debentures is basically saying this: "We are such big losers, we can't get any loans from banks or any money from even loan sharks."
Companies that issues debentures have a standard M.O. They issue them, collect the cash, file for bankruptcy, erase the debentures, start a new company, scam more people, so on and so forth...
-------------------- The more weedsmoke I puff the more dangerous...
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quote:Originally posted by letitrideboy: I was reading back, it seems like there is some confusion and some people thought they were getting a debenture or something. They took out a loan using a debenture to buy stock back from us. And then they will pay back the loaner with stock.
How sad for that lender. I wish I had the luck to find people who wanted to just throw their money away like this.
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posted
ok let me break it down some more as I understand it, somebody do the math for me though I am on my laptop at starbucks lol
27 billion shares they are buying back so ..... 27 billion X .0001 = the amount they are barrowing. now devide that number by .001 = the amount of shares that will be released back into the market when the people who loaned the money cash in.
posted
lol amswap agreed, eather the company they are barrowing from know some good news and in 5 years (is that no the time it cashes in?) the stock will be worth more than .001.... so I guess you could look at it as they are confident they will get some kind of gold in the next 5 years and be able to make money in five years buying at .001 and selling at the market value then. wow my brain is tired i hope all these posts I made make some sense to you guys and I hope i know what I am talking about lol i guess the key is when somebody does the math they will know how much they will be selling back into the market at that time. bye!! Time to go swimming!
posted
I think that they put out this PR saying how good of a deal it was - only to dilute more shares....they knew that volume would pickup after this PR was put out.
It will be interesting to watch the O/S rise in the next couple of weeks.
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