varok
3 weeks ago
Sunday Newsletter 12/8/24 -BLEG -
Today's newsletter is about a new dawn for BLEG.
Now, I realize many have a very different sentiment about what has transpired to a very negative mindset and the total collapse what would have been a great company going forward has now totally put a rotten blemish on this company and the CEO.
When I made the target of .01 at various times during my tenure here, I truly felt that it was a target well within reason and doable without much resistance.
Everything was in place. The company had a very attractive share structure and still has that today. The company had its financial backers and a superb vertical integrated business model. The collaboration of the existing companies to go into one umbrella was on the surface a very smart move, A shareholder base that was loyal and allowed the business model to begin attributing towards a revenue generating corporate enterprise. They established promising contracts with the latest announcement of a huge company that within their financial was a 70m$ company a real bonus and mentioned that we could be in line for a 10m$ contract going into 2025.
What in the hell went wrong?
Aside of the recent downfall of the Marijuana failed initiative this past Nov. 5th the company although isn't an outright Pot Shop but a sun offshoot within the Hemp culture, so I doubt this was the problem. The disfranchised financial backers that started to throw in the towel was the start of a very serious problem. Although, when the conversion started to hit it wasn't a dilutive factor since the company generally was already maxed out, but the ongoing selling of the conversion worked its way into negatively of a continued downdraft of the share price to where we are today.
This fault is on the shoulders of the CEO. He obviously was unable to maintain loyalty within these holders for whatever reason, but more importantly the CEO couldn't find himself to explain this properly to his most loyal holders the shareholders.
I know VC and they are a finnicky group of financial folks and generally have timelines on their return of investment capital, but there are ways to come to certain agreements and that too is the CEOs' lack of work through. Now they may have thought the company was on a losing course, we may never know.
Then he announced a month later that some hackers seeded into the structure of the company and offset his agenda. That may be true, but it is a BS announcement not mentioning that it took so long to come to grips to tell us.
Not have a timely filing is as well a no-nonsense excuse and this is also his fault.
So now that brings us to where we are today and it's a NEW DAWN.
The CEOs' action brought us to the bottom at a MC of 650K$. Folks, I may not be able for you or some of you folks to stay, but I think if you look at this company as a brand-new entity, we will be able to retrieve if not all of your invested dollars, but at least some will be able to get back.
The company has to make good about their financials and become current. They will not be able to increase their A/S till they become current. So, everything is now as a brand-new penny unpredictable piece of junk. The company is now worth net 650K$ the price of a cheap shell. Yes, he did come out with an announcement of some Bio enterprise, we will see. But try to look at in a way as your first encounter with this company and the CEO.
I taught a trading classroom on another forum 'in the penny arcade back in 2000' and have written many articles on the pitfalls of trading in this venue. Below is 3 that I have written and absolutely applies to this now very disappointing company. Put aside the past and like all penny stocks they generally all have their rise, and I believe this company will give us one last run. It is a bargain if you care to play and trade it and not treat is as an investment.
Below are the 3 articles I wrote back in 2000 and if you follow these guidelines, you will be able to maximize your return. All penny stocks are destined to fail, but money can still be made with the right approach.
The 3 Ps of Investing and the Strategy
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173426894
3 DAY RUN-UP TRADING
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173426908
MANIPULATION BY MARKET MARKERS?
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=173426908
Well, we are moving into the Holidays, and I wish all a very Merry Christmas and a Healthy New Year.
See you all on the trading in 2025
Have a good day
varok
varok
4 weeks ago
Here is how to play this issue.
I wrote this back in 2000 when I had a classroom on another forum 'how to trade penny stock companies' within this venue to recognize the pitfalls.
The 3 P's of Investing and the Strategy that can maximize your ROI.
* Principle
* Profit
* Potential
Investing and trading in the pennies is based on one's ability to fully understand what he/she has and when to sell.
Penny companies and the arena they trade in are the most unpredictable and have left investors/traders with losses that with a smart strategy, could have been avoided.
Emotion, Anxiety and Greed, three of the prevailing sentiments that always seem to be the guiding force on investors as when to buy and sell, only to acknowledge it is discipline that will pave your road to a successful ROI.
I'm only discussing the unpredictable and unregulated market, known as the pink sheets. Here the Market Makers and not the investor has the total control and you as the investor must learn to either stay one step ahead or fall victim as most usually do.
When you trade in this market you first must at the earliest opportunity to remove your principle. The best way to assess this part is divide your total share account into 3 party. The first 33% is your principle, the second 33% is your Profit and the remaining is your Potential.
We have all experienced nice runs only to find your issue floundering at the bottom never to return. It is this first run that one should remove the principal investment. This should always be applied and under No circumstances should you deviate from this. If you feel that the issue warrants a second run, it is your Profit that will be your next exit. Remember, if you removed your principal investment, you will have taken a huge risk out of the market and your Emotions will become less of a factor.
Potential...The last of the 3 P's is the most difficult and should only be left as an investment if the company has a business model that can generate revenue, but most importantly, can ROI based on the forward fundamentals of the company be realized. One assessment that you must take into account is the share structure verses Market Cap..It is this one and very much overlooked part that will determine the true value and fair value with respect to share price and where it will eventually go.
In the penny arcade, most participants/investors are way over their heads and have a skewed impression what really comprises what is an investment and what is a crap shoot. From what I have seen in this cesspool of penny garbage, it's all in the timing and being able to stay one step ahead of the market makers and the loansharks. There is no such term as long-term, investment grade, great buy and all the other misnomers that many like to refer to these pennies. For what it's worth, they are all junk and the only money makers are your day traders and the loansharks that feed offshore on what gullible buyers throw their way and the market makers who execute these buys and sells...
When one comes to the pennyarcade, he/she comes with the idea to make money, but only to be let down. The understanding of how pennies work is in itself an art and science and not the fact that a stock is priced at .0002, .001 or .10 or whatever, and it should go up because it's so cheap...Most investors if you can call them that in pennies, get the 3rd degree and they lack the sensible approach of admittance that they made a mistake and can't accept their loss.
Since the great tech and birth of the computer, the potential of online trading took off and everybody with a computer thought that the penny arcade was going to make them wealthy. This has become so far from the truth and 15 years later many have lost thousands and still can't figure it out...
It's simple,98% of all pennies are losers and just plain junk. Many or most penny companies will have movement beyond a certain entry, but all will without a doubt fall like a rock and flounder at the bottom for years with ever moving north again. If you hear nonsense like "wait until next year", or "put it in your sock drawer" and there are dozens of brilliant ideas only to have you looking back on why I paid attention to all those clowns on the message boards.
It doesn't matter on how much DD or other research you do on a particular penny stock, because these companies don't have a future. It is the art and science of understanding the way market makers play and until you get a grasp at their non-rules and cheating ways, you will lose.
The idea of holding any company is and should be based on free shares after the principle has been recouped. This part is the Potential of the 3 P's. Does the company have a future?
First, when a company promotes itself on penny exchange, it is for funding their R/D and this is especially true with BIO and Tech companies. Once a company can establish that even their product/idea has legs, it isn't the shareholders that gain, but the owners and the largest preferred shareholders. We as shareholders gain in the cycle of share price movements over a period of time, which allows us to sell on news and reap a decent reward, not hold out in hopes...It is pure nonsense and just doesn't make for an explanation that hold long-term on any penny stock, without exceptions can ever be achieved.
To explain this further. When a company goes public, it is mostly for funding their R&D programs through stock sales by market makers and picked up by us, blah blah, you get the point. Once a company has perfected their technology or product, it will usually in most cases shop around for a buyer for their tech/product or merge as a division into a larger company or outright hostile type takeover, again this is very true within the Bio companies. Companies with large O/S and huge amount in authorized shares generally don't have a problem with hostile takeover practices.
Through this whole ordeal, the company continues to sell shares until it has ballooned their O/S and depleted their authorized shares so much, they are forced to do the most drastic of all moves, a R/S. All this time they continue saying and moving ahead and convincing us their R/D is on target. But then, they announce a R/S, because they feel to stay in operation is a must and probably so, since they haven't found a partner and they are short of funds and we are, or some of us reluctantly go along. Posters always use the argument that if the company doesn't split it will go out of business, and we will not have anything and should be loyal and stick it out. Loyal!! That's a new one. Now this is just plain incorrect, and management knows this and will be able to keep going with or without a R/S.. Remember the offshore loansharks? Most companies go for these same culprits and is at this moment diluting the pool as we speak with most pennies. When management and I must say are in general a bunch of sharks that have a printing press for their own benefit and will do everything to keep the printing of new securities going just to fatten their own greed. Management is up against the wall when they parley their shares and this is always a last attempt and absolutely a death sentence, like the R/S. Incidentally, a R/S approved by shareholders is a formality and will always get approval regardless how we as shareholders vote. This part is always stacked against us. Of course, in certain cases we may be able to thwart a R/S, but that is rare.
In case of any BIO company, they usually disappear into a much larger concern. . Healthcare companies that trade on the penny exchange rarely ever become stand-alone concerns. The R/D and marketing requirements is far to great for any startup to absorb and is too costly, so they are usually and that is if the product is all that is meant to be, will be acquired. In general, if a Tech company has a promising product, they too will be looking for a buyer, because the tech field is changing so fast that the smaller concerns lack the funding just to stay in the game and will never be able to compete with a much larger firm that have the cash and know how.
Bio companies who have products that can even meet FDA approval will probably be sold, or a major PHarma company will become a partner as in a collaboration partner and they absorb or become merger. Now to get to this stage will be with countless rewards towards shareholders equity, but eventually it will become an entity of whomever becomes a partner. This is in most cases the way of a startup Bio company with excellent potential.
You as a shareholder will get the most out of a Bio company on the penny exchange than any other company. The rewards are so great in Bio as well as the tedious long wait and this may require patience that will take years to develop, but eventually if the company has the fountain of youth medicine can make you a wealthy investor, in return on your principle. Also keep in mind, that the risk is also the greatest threat to a dismal demise of your investment dollar. The latter is more accurate than the success rate.
A Bio company that can hopefully get the FDA seal will give the company the real interest and the potential share price explosion within hours of such a PR, but that will only come with the approval. The timeline for a nay or yah on acceptance is rather short on devices than the lengthy clinical trials required for drugs and a device, which not actually being a drug could come sooner than think. So, 6-8 years for even a drug going to trials can certainly be overshadowed with impatience and will keep a stock price from ever achieving the result in the near-term or even pan out altogether. The movement on the stock price with these companies comes with the interval press releases which allow you some trading with potential profit.
So, in Short. Trade penny stocks do not use these issues as investment grade. If you have one and believe me, they are rare, remove your first two P'3 of Investing and Strategy and fully understand the true Potential of the company that you wish to hold long.
Have a good day
varok
varok
4 weeks ago
Good morning,
Well, we have now direction.
I will address the potential of raising the A/S.
Months ago, I mentioned that he would raise the A/S when we maxed out. This isn't a concern and should not be now. I realize that we can speculate what will happen on the heels of such a move, but for now it isn't an issue. I was challenged by the CEO for mentioning this and his response was a smirk with a comment when somebody mentioned it to the CEO. His response was " what, did you hear this on ihub" and he laughed.
To the CEO my comment is that "I know this penny business far more than he does" and this move was predictable. However, when he suggested it on today's PR, he left it open, but it will happen. First, he has to overcome some hurdles, and the main issue is to become current and get back to normal business practice, i.e.: financials. He will not get approval without it.
This is now a trader's speculative trading venue for profit. With the right amount one can make serious profit.
I'm buying at .0005 and if it hits .0004, I will continue to buy. Remember it is now a speculative penny play.
Some will probably be thinking is this guy (me) nuts.lol. Yeah, probably, but I know this venue and even an unpredictable penny company will move and I'm betting it to rise from here, where? who knows how far up, but we hit bottom and there is still a trading opportunity.
What I mean by hitting bottom is that this company is now worth more as a shell with fair value 650k$, and I'm sure even Dave knows this if he were to give up on his vision.
Happy Holidays and Merry Christmas and have great New Year.
Have a good day
varok
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