Started a thread on here Thursday, 6/8, for those who were interested to jump in, many just blew it off and it ran from .0161 to .0195 that day. Closed friday at.0183. Ran on no news or PR.
They announced merger news coming in May, and we are waiting to hear the news of who they merged with any day now. When that breaks, it's sure to fly.
-------------------- ~You aren't wealthy until you have something money can't buy.~
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I could hardly stop laughing. I 100% agree with XKEM, but PAIM? You must either be joking about that one or you are high on something. Has Paim even broken .0002 in the last 3 months? If you are serious, please help those of us who really know the stock and the owners, something legitimate to consider. This company and especially the owners are a big joke. If you are serious about this one, you really need some help understanding penny stock scams and those who sit on the boards of them.
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posted
Buy, I really don't know.... but: as I DD it looked to be dieing a long slow death.
suspended from trading by NYSE:
"NYSE suspends Vesta Insurance common shares By M2 Last Update: 12/29/2005 5:23:38 AM"
then the ratings change (down:
"Vesta Announces A.M. Best Rating Change By PR Newswire Last Update: 3/8/2006 8:10:10 PM"
BIRMINGHAM, Ala., March 8, 2006 /PRNewswire-FirstCall via COMTEX/ -- Vesta Insurance Group, Inc. (Pink Sheets: VTAI.PK) announced today that A.M. Best has downgraded the company's property casualty subsidiaries' ratings to C++ (Marginal) from B (Fair). Best's Ratings reflect the A.M. Best Company's opinion based on an evaluation of the company's balance sheet strength, operating performance and business profile.
"We are disappointed with Best's evaluation of the company, which we believe focuses on our current balance sheet. While we recognize these balance sheet concerns, we have also seen improving operating results throughout 2005 stemming from rate increases and underwriting actions taken over the last several years, and our underlying business is now performing well," said David W. Lacefield, Vesta's new President and CEO. "We have always paid our claims promptly and serviced our accounts, our franchise is valuable, and we are actively working with third parties to structure a transaction that will protect this long-term value for our shareholders and other constituents."
then the only things I find are Volume related:
"*********.com: The Movers and Shakers ****, Part 2 By M2 Last Update: 4/3/2006 10:23:40 AM Data provided by MIAMI, Apr 03, 2006 (M2 PRESSWIRE via COMTEX)" -- We like stocks trading big dollar value volume! A very interesting indicator to look for is where the money is flowing into. We have a filter that we watch every morning that shows us "Dollar Volume". We also like stocks that are trading at bargain prices. As of the close yesterday, the top four money earners are: (CIVX), (PIFR), (VTAI), (DGKO)
Vesta, headquartered in Birmingham, Ala., is a holding company for a group of insurance companies that primarily offer property insurance in targeted states.
then all about 'Bargain Pricing':
*********.com: The Pioneers of the STOCKUMENTARY, deliver the Movers and Shakers ****, Part 2:
By M2 Last Update: 5/26/2006 10:46:54 AM Data provided by
AUSTIN, May 26, 2006 (M2 PRESSWIRE via COMTEX) -- We like stocks trading big dollar value volume! A very interesting indicator to look for is where the money is flowing into. We have a filter that we watch every morning that shows us "Dollar Volume". We also like stocks that are trading at bargain prices. As of this morning, a couple of these stocks are: (NTAH), (NHYF), (VTAI), (VYON)
then:
"10-Q: VESTA INSURANCE GROUP INC By Edgar Online - (EDG = 10Q, 10K) Last Update: 5/25/2006 11:05:25 AM"
this is an excerpt from the- (EDGAR Online via COMTEX) -- Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
In November of 2004, A.M. Best announced that our financial strength rating of "B" for both Vesta Fire and American Founders Life Insurance Company was under review with negative implications. A.M. Best cited the reduction in surplus levels from the current quarter losses from hurricanes and the reserve we established as a result of an adverse jury verdict in a lawsuit styled Muhl v. Vesta as the reason for the change in the rating action. For more information about the Muhl lawsuit, please refer to the discussion of Legal Proceedings elsewhere in this report.
Following A.M. Best's announcement, we have taken certain actions to enhance our statutory surplus. First, as discussed above, our holding company contributed 1.47 million shares of Affirmative common stock to Vesta Fire, having a current market value of approximately $25 million. Second, we increased our quota share reinsurance on our residential property business from 50% to 75%. Under the terms of the increase to 75%, the cession of the additional 25% of our in force residential property business was effective November 30, with a cession of 25% of the unearned premium on the subject business and new/renewal premium thereafter until the contract termination date in July, 2005.
In 2005, we consummated several transactions designed to further stabilize and improve our statutory financial strength and improve our financial flexibility. First, we sold our remaining stake in Affirmative in two separately negotiated transactions. Vesta Insurance Group, Inc. sold 2.0 million shares of Affirmative common stock to Affirmative for $14.00 per share on June 1, 2005. Vesta Insurance Group, Inc. received $27.7 million in proceeds, net of closing costs. On August 30, 2005, we sold our remaining 5.2 million shares of Affirmative common stock to an unaffiliated third party. In this transaction, Vesta Insurance Group, Inc. sold 1.3 million shares and Vesta Fire sold 3.9 million shares. We received $77.5 million in proceeds, net of closing costs. Vesta will report a gain of approximately $11.0 million in 2005 related to these transactions.
Although the sale of our remaining shares in Affirmative will not have a significant impact on statutory surplus, the divestiture did provide the Company with surplus stabilization and increased financial flexibility. In regard to surplus stabilization, the monetization of our investment in Affirmative affords our insurance companies surplus protection from changes in the fair value of Affirmative stock as our statutory carrying value was based on fair value. With the monetization of this stock, any downside risk to our statutory surplus from changes in the fair value of Affirmative's stock is eliminated. In regard to our increased financial flexibility resulting from the sale of our Affirmative stock, our holding company has received approximately $43.2 million in proceeds, of which $30.0 million was used to repay the outstanding balance on our revolving line of credit. Thus, effective August 31, 2005, the line of credit was fully repaid and terminated.
another excerpt:
Additionally, on June 1, 2005, our wholly owned subsidiary, American Founders Financial Corporation, entered into a definitive agreement with Sagicor, USA, Inc. related to American Founders' sale of 100% of the outstanding common stock of its subsidiary, Laurel Life Insurance Company. Sagicor paid approximately $55.9 million in cash, net of closing costs to American Founders on the closing date of September 30, 2005.
Despite the steps taken by the Company since November of 2004, additional losses in 2005 led to A.M. Best announcing that our financial strength rating would be lowered to "C++" or "Marginal" as defined by A.M. Best in March of 2006. The Company believes that this rating, if maintained, will greatly erode our current premium writing levels and will negatively affect the Company's ability to service its debt obligations. Thus, no assurances can be given that the Company's premium levels and resulting cash flows will be sufficient to meet the Company's obligations.
In addition to the potential deterioration of the Company's premium volumes resulting from the A.M. Best financial strength rating downgrade, Accordingly, the Company, in consultation with its financial advisors, is pursuing several possible transactions to address the Company's current financial condition. Possible transactions being considered by the Company include the following:
Renewal rights transactions - The Company is considering possible renewal rights transactions that would allow the Company to the Company is experiencing increased scrutiny from its various state regulators. Specifically, these state regulators have expressed concerns over the financial condition and operating performance of the Company's insurance subsidiaries. reduce the level of writings in certain product lines. Specifically, the Company is considering a renewal rights agreement for its standard automobile policies in West Virginia. The Company's standard automobile policies in West Virginia, which represents approximately $20 million of annual written premiums, was excluded from the July, 2005 renewal rights transaction with Donegal. The possible consummation of this transaction would complete the Company's exit of the multi-line market and would further reduce the Company's overall premium writing levels.
The Company is also evaluating possible renewal rights transactions involving certain states/regions in our homeowners portfolio.
Raising capital - The Company is pursuing possible capital raising initiatives in the private sector geared towards improving our overall financial condition. The evaluation of these possible transactions is in the preliminary stages.
Asset dispositions - The Company is also evaluating possible asset dispositions, including the possible sale of certain subsidiary insurance companies. As with the possible capital raising initiatives, the Company is in the preliminary phase of analyzing which asset groups or subsidiary companies would allow the Company to maximize the increase in statutory surplus and/or reduction of written premium levels.
Expense reductions - In 2004, the Company began implementing certain operational consolidation initiatives aimed at reducing policy maintenance and claims adjustment costs. While these consolidation initiatives continue to be implemented, the Company is also reviewing other expense reduction initiatives, including, but not limited to, the delaying of certain information technology initiatives and facility cost reductions.
Despite the Company's current financial condition and the consideration of certain transactions which could reduce the Company's current premium volumes in certain states/regions, the Company continues to pursue its current business strategy of being a provider of homeowners insurance in capacity constrained states/regions. Management continues to believe that the Company is well positioned in certain capacity constrained markets to take advantage of market conditions. However, the success of pursuing this strategy is largely dependent upon improving our financial condition and our financial strength rating. In the event we are unable to improve our financial condition and our financial strength rating, we anticipate significant deterioration in our premium volume at a rate which is expected to exceed our ability to reduce expenses. Accordingly, we may not be able to achieve future profitability.
In addition, the Company's on-going segments remain exposed to various external factors such as further catastrophic weather events, regulatory oversight, and continued access to affordable reinsurance and competition from other insurance companies. Such factors could have a material adverse impact on our financial condition and could impact our current financial ratings and greatly hamper the Company's ability to obtain an improved rating.
Furthermore, in regards to the aforementioned increased regulatory scrutiny, various state regulators have informed the Company that the failure of the Company to secure an improved financial condition could likely result in adverse regulatory action, including but not limited to regulatory supervision of the applicable insurance subsidiaries. Regulatory supervision of the insurance subsidiaries would likely have a material adverse impact on the Company's premium volumes as well as its ability to secure reinsurance. Such an occurrence would result in a significant decrease in the Company's cash flows and would negatively impact the Company's ability to meet its contractual obligation, including the repayment of the inter-company bonds held by Vesta Fire, the Debentures and the Capital Securities.
Finally, the sources of cash available to our holding company to pay holding company expenses, including principal and interest on outstanding indebtedness, are dividends paid by our management company subsidiary, J. Gordon Gaines, Inc., and its subsidiaries. These management companies earn management fees and attorney in fact fees paid by our insurance company subsidiaries, which are largely dependent on the amount of premium written by those companies. A significant deterioration in premium volumes could lead to inadequate cash available to our holding company to fund all of its obligations.
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posted
Buy...I do want to add. I THINK I know what I am doing, but for the most part, each time I find info, or feel like I have determined something through proper DD, one of You (regulars on this board) show me where I am late, or haven't learned yet.
So....I determined the opinion on VTAI, based on 1 hour of DD and posted it. with each passing day I realize how THAT probably isn't enough preparation prior to posting on this board. There is such solid, well informed, intelligent scrutiny here,(and that is sincere) That I am almost ready to not post anymore. but...it just isn't my personality, I want to be part of it all, involved. I don't do well as a bystander.
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posted
Egg, your DD is good IMO and you have persuaded me that this is not a long term hold. (Wasn't planning to anyway.) However...this news doesn't really disqualify a bottom bounce...especially given the pattern that can be seen in the chart history.
You info DOES suggest that anyone playing the bottom bounce should not expect another run to .40 cents. .20-.30 PPS is not out of the question though.
Bottom bounce rarely has much to do with news unless it is extreme one way or another. Rather it is about share structure and charting more than anything else. Again...IMO.
The Bigfoot
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Coastal Holdings, Inc. Sets Record Date of Forward Stock Split
By Market Wire Last Update: 6/1/2006 10:34:24 AM Data provided by
HOUSTON, TX, Jun 01, 2006 (MARKET WIRE via COMTEX) -- Coastal Holdings, Inc. (PINKSHEETS: CSJJ), today announced that it will provide notice by the end of the day to the NASDAQ Stock Market of the forward stock split. Stockholders of record on June 15, 2006 will be entitled to one hundred and fifty (150) shares of common stock for each share of common stock held on that date. The forward stock split will be effective on or about June 23, 2006, at which time the additional shares in certificate form will be mailed directly to shareholders without action on their part.
For more information please contact CEO Andrea Cortellazzi at (514) 288-9699.
Question: If the above is true then
Isn't this a $$ MONEY $$ machine?!
They are doing a reverse stock split 150 to 1 for share holders as of JUNE 15.
That's 'Co. gives shareholder 150 shares for every 1 owned'.
Question: "isn't this free money?"
if I buy 2 million shares, I'll have 300 million after the split. Then I sell say 300 million * .0001 isn't that $30,000.
Question: could this be possible? please DD and see for yourself.
look at this one! CSJJ look at that volume. do some DD, unless you already know.
posted
Bigfoot... I agree totally. It doesn't at all discount a 'bottom bounce' in fact, it just had a small bounce Friday of $.03. It bounce approx. 25%. it basically went from $3.00 to $.07-.09 hitting bottom the beggining-middle of MAY. So it was * $.09 for the last few weeks and Friday it 'BOUNCES'$.03 05 25%
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Actually, you're on to the "geek play" aspect of this, and I'm watching it...the math is very similar to the GVRP play, a history-making debacle that still has unanswered questions more than a year later--but in which some traders made out at the same ratio. Of course, it was shut down (SEC suspension) and does not trade...
the question revolves around the four-place decimal display system and whether NASD would approve such a split...GVRP was trading in the dollars range before a 3m:1 f/s and kinda "sneaked up" on the regulators...hard to believe they'd let another through...
IF it is going to be effective on or around the 23, the company best get busy...they have to notify NASD ten days prior, and then NASD posts on the "dailylist" at otcbb.com...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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Just cause you have shares doesn't mean you can sell 'em. Specially when the company will very likely be playing the same game. This company has also proved that they have no problem with doing a reverse split to manipulate share structure once their personal goals are accomplished.
Personally, I wouldn't go near that one.
Bigfoot
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posted
Egg Inspector, their may not be, in fact probably won't be any buyers at .0001 especially since their will be so many shares in the float at that time. You will end up with alot of shares, but practically worthless.
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posted
"....Fueling the GVRP mess was a huge short position, as evidenced by the run on the Friday afternoon before the f/s shares were delivered...." I think that is what were all counting on...at least I am.
Vagabond
-------------------- You are what you do, not what you say!
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You think a lot of people will short this at .0002 prior to the split.
After the split they will cover their shorts at .0001 for 100% and allow you to sell your shares which will give you your free money.
It doesn't occur to you that even if every share prior to split was shorted there would still be 150 X the amount of shares that need to be covered? Not to mention whatever manipulation the company has planned?
Foot
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posted
Big, I imagine the idea is sumpin like this: MM's shorted it down to .0001, so when the diviies go out, they'll have to buy in order to supply the divvies...
I'd like to see evidence of MM's shorting, if that is the thinking...
-------------------- Nashoba Holba Chepulechi Adventures in microcapitalism...
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Your call buddy. I give my opinion but I don't tell people what to do. Look to others for opinions but make your own choice. You'll do better that way, trust me.
First question- a short position.
Shorting a stock means selling shares that you do not own out with the idea that the stock is going to tank. You then cover your short by buying back those shares at a lower price to cover the position and you walk away with the difference between the price someone "bought" your shares from the price you covered the position at.
In order to short you must have a margin account. I also suggest you have a minimum of 5 yrs trading experience as you can lose your shirt if you get caught off guard.
Here is an example as this isn't always an easy concept.
stock ABC has recently had a run from news and has reached a new high of $1. It's normal channel is .50 cents and you are fairly confident it is going to fall back to this position.
You SELL 1000 shares out that you don't own at $1 for a total of $1,000 plus comission.
A week later it does indeed fall back to .50 and you cover your SELL with a BUY of 1000 shares at .50 for a total of $500 plus commission.
You walk away with 500 minus commissions.
Be careful though cause if they get news you weren't expecting and they jump to $2.50 you will be responsible for the 2,500 that is needed to cover the 1000 shares.
There are further regulations but that is the basics.
I don't short.
Bigfoot
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posted
About CSJJ, I would expect a small run before the F/S day of record and if there is a small run then the shorts (MM's)would jump in to push it even higher. This is with out a doubt a "wierd" (for lack of a better word) situation. No doubt it's PPS manipulation, and I try to get in the CEO's mind to figure out where he is going with this, but I cant see a reason for this. Just very strange. Maybe a R/S in the works after the F/S....I don't know. Well see what happens! One thing is clear, he is diluting right into the buying. Which everyone figured.
Vagabond
-------------------- You are what you do, not what you say!
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posted
Here is another thought on CSJJ...The shares are going to be mailed to the shareholders address. I would assume there will be a "lag time" b4 those shares can then be traded....kind of the early bird gets the worm type of thing. Another words you can't sell those shares until all of your ducks are in a row. And the first to do that will make out....maybe!? Just some thoughts.
Vagabond
-------------------- You are what you do, not what you say!
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