"Additional Information: 60 Million of the free trading float can be accounted for by LFWK management as issued to non-insiders. Insiders held more than 22 Million shares of the free trading float, leaving the PUBLIC FLOAT AS A NEGATIVE NUMBER to date." --------------------------------------------------------------------------------
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With LFWK, I think we might be seeing something evolve that could be quite historical. The verdict is still out, but I like it. Let me try to explain this as conservative as possible. Keep in mind, this is not me talking, but me deciphering what I think the company is trying to tell us.
** Sulja Bros. is a 24 year business with $30M+ Revenues annually since its inception. ** Assets = $25M with anticipated $200M+ within 24 months.
I will focus on the Revenues as opposed to the Assets because I think it’s more important to reflect what our EPS (Earnings Per Share) could be versus our BV (Book Value). Stocks normally react on a “proven” EPS versus a “proven” BV.
With Sulja Bros. averaging $30M+ in Revenues annually over the past 24 years, I think it’s safe to say that this is a company that is already established. I am not sure what are their expenses, but I will guess to say that they probably clear at least 30% as profits as a worse case scenario.
That means that I am figuring that they spend 70% in Expenses to make $30M. That means that I am guessing that it takes them spending $30M x .70 = $21M to make $30M annually leaving them with a profit of $9M.
This means $30,000,000 x .30 = $9,000,000 as Income/Profit.
Using a conservative PE Ratio of 12 reflects below:
12 PE Ratio x .03 EPS = .36 per share
This means that with not factoring in any kind of growth such as higher numbers for actual Revenues or lower numbers for actual Expenses to alter the above price for the better, LFWK should fundamentally be trading at a worth to the market of .36 cents per share. It looks like that’s the price range from where they originally started naked shorting it from researching its volume history.
The key will be for them to first announce the closing of the merger to lock in on this potential then next the SEC filings would really substantiate the validity of the merger. So please treat the information I posted as speculation until confirmed by the company officially and/or publicly. The 9 Mar 06 PR stated an initial timeline of 30 days to completion was set. That’s sometime around the end of Mar to early Apr. I know it’s only wishful thinking, but they can finish the merger earlier since that time was a “no later than” time frame. BUT WAIT!!!
There is another piece to this puzzle that I think we must consider. The “naked short” issue. That .36 per share figure above is factoring in if LFWK was in a perfect world where its trading scenario presented enough shares for the public to buy (the Float). Well, there isn’t. As far as I’m concerned, it’s official enough for me to take the risk, but it would mean much more if they could file a Form 10Q/K and/or some Forms 3, 4, and/or 5’s if needed with the SEC to confirm authentication of LFWK share ownership. Then multiplying these prices by 10 would still be considered a discount with the value of their mergers.
However, from what have already been made known to the public, without going into much detail, I think the Float is gone. That means that anything that could generate any kind of significant demand for the supply of LFWK shares would create a major problem for covering any naked shorted position.
Those PRs could be viewed as smoke and mirrors to some people for now until key information is either filed or coordinated to the SEC for confirmation. Or until we actually see an announcement that the merger is complete which would make everything else secondary because of its value. As more and more news of substance is confirmed and revealed to substantiate those PRs, one would have to wonder where the shares would come from to fulfill the demand that will be generated for LFWK shares.
Well, if there is no supply of LFWK shares to fulfill the increase of demand for LFWK shares, one option would be for the MMs to significantly raise the bid to entice us to sell to a value that would be cheaper for the MMs (or their guilty clients) to cover versus waiting until a known valuation is confirmed. Waiting to cover could really cost them to cover shares at much higher prices.
The other option would be for them to get with company to work a deal to assist them in covering from behind the scenes. I think they will try to cover on the open market first before going to the company as things could get very very expensive for them then.
Either you believe and take the risk or you don’t believe and move on. I think things will be getting very interesting in the very near future. Personally, I believe!
posted
-------------------------------------------------------------------------------- "Sulja Bros. Set to Inherit LFWK Vehicle: CEO in Windsor Vows Broader Exchanges for New Company Apr 18, 2006 3:44:00 PM NASHVILLE, TN -- (MARKET WIRE) -- 04/18/06 -- LoftWerks, Inc. (OTC: LFWK) today announced that its new ownership, Sulja Bros. Specialized Building Materials, Ltd., will immediately set a course toward a broader exchange board such as the OTCBB or even NASDAQ. Newly Appointed CEO, Steven Sulja, in Windsor, Ontario stated earlier today that "the LFWK trading vehicle is just that...a 'vehicle' to move us into a broader more substantial audience."
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How smart companies fight illegal short selling
(PRWEB) March 8, 2006 -- It’s not uncommon to read about small publicly traded companies complaining about the evils of naked short selling and the negative impact that it has on their price of their stock. It is however, quite uncommon for companies to actually take action and do something about it. The difficult, sometimes daunting task of taking on the issue of naked shorting is usually costly and time consuming, taking valuable resources away from the company’s operations. Some of the most prominent anti-naked short selling proponents include Overstock.com (OSTK), Great West Gold (GWGO), Global Links Communications (GLKC), and CMKM Diamonds which has ceased trading since October of 2005.
One of the newest companies to take on naked short selling is Loftwerks Inc (LFWK). While many of the fore-mentioned companies diverted resources towards fighting naked short positions in their companies, Loftwerks has tackled the problem by diverting more money back into the company, and buying back shares. In fact, in recent news releases Loftwerks has announced that insiders of their company hold more shares of their company’s stock, than have actually been issued. CEO Dennis Ammerman stated, "Insiders decided to buy more shares than are legally available. There is no stock definition for this type of buying; therefore, we created our own definition. We call it 'Short Seller Captured Capital.’” Essentially what this means to Loftwerks shareholders is that insiders own the entire outstanding share count, and then some.
The last time a scenario such as this was revealed, was with Global Links Communications. Robert Simpson, CEO of Global Zann Corp. at one point had in his possession the entire issued and outstanding stock of GLKC, and filed the ownership with the SEC as required. Despite owning all the stock of Global Links, the stock continued to trade millions of shares per day. As investors caught wind, shares of Global Links quickly gained more than 1000% moving from under .01 to over .14 in a matter of weeks.
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posted
WINDSOR, ON, Jun 01, 2006 (MARKET WIRE via COMTEX) -- Sulja Bros., Ltd. (PINKSHEETS: LFWK) today announced that its new ownership of the LoftWerks (LFWK), Inc. public vehicle has been finalized by the Board of Directors, and their legal counsel, the Law Firm of Gottbetter and Partners, LLC. All final documents have been executed and forwarded by the law firm awaiting final approval from NASDAQ.
Sulja Bros. will immediately target a broader exchange such as the OTCBB or even NASDAQ. Investors with questions about this ongoing concern can contact Gottbetter and Partners office or Kore International Management Inc at 1-866-658-KORE.
Share restructuring and distribution is currently finalizing with a new serial number and CUSIP. This process should be completed within a week. Any changes in the transaction, including the new ticker symbol and CUSIP number will be posted on the Sulja Bros. website (www.suljabros.com).
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LFWK - LOFTWERKS INC (OTC) Date Open High Low Last Change Volume % Change 07/25/06 0.0270 0.0380 0.0250 0.0370 +0.0070 18110848 +23.33%
Composite Indicator Trend Spotter TM Sell
Short Term Indicators 7 Day Average Directional Indicator Buy 10 - 8 Day Moving Average Hilo Channel Buy 20 Day Moving Average vs Price Buy 20 - 50 Day MACD Oscillator Sell 20 Day Bollinger Bands Buy
Short Term Indicators Average: 60% - Buy 20-Day Average Volume - 4453035
Medium Term Indicators 40 Day Commodity Channel Index Buy 50 Day Moving Average vs Price Buy 20 - 100 Day MACD Oscillator Sell 50 Day Parabolic Time/Price Buy
Medium Term Indicators Average: 50% - Buy 50-Day Average Volume - 5603796
Long Term Indicators 60 Day Commodity Channel Index Hold 100 Day Moving Average vs Price Buy 50 - 100 Day MACD Oscillator Sell
Long Term Indicators Average: - Hold 100-Day Average Volume - 8497686
Overall Average: 32% - Buy
Price Support Pivot Point Resistance
0.0300 0.0233 0.0283 0.0333
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quote:Originally posted by IMAKEMONEY: ohio_trader, Whats your take on this? you have been on this from the start.
since early March
my thinking all along is: 1) way, way undervalued 2) real estate( almost like a REIT)= Real Assets 3)Shorted Heavily for 6 months now...insiders hold most of the float 4)1st Consultech and the Sulja Brothers and now the involvement from the Red Sea Group 5) Moving to Nasdaq ( supported by net revenues to back it) 6)low outstanding, approx 800 million shares
if you add it all up this stock could be INCREDIBLE!!!!!!!!
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