Good morning !
You know that in principle the 3 Stocks on Fire Portfolio doesn't allow for OTCBB or Pink Sheet stocks, only in special cases where the risk/reward case looks very compelling, both from a technical and fundamental perspective.
IBCX presents an opportunity where one can lose 50% in a few days (or even in one day, beware), or make 10 times the money invested in a short period of time. I think the rise would occur over a short period because this is a market inefficiency, not a growth story, not a trend, but a fact not yet reflected by the share price.
Since the risk is high and the liquidity low - the stock traded $456,000 yesterday - we'll only buy 1% of the 3 Stocks on Fire Portfolio, that is, about $3,400. I urge you not to buy a significant portion of your capital in this Pink Sheet stock, preservation of capital is the most important issue for long term trading success. We'll try to get shares between $0.007 and $0.012, let's give it ample leeway.
Here's my DD but you should read this entire thread: IBCX-breakout (http://www.3stocksonfire.org/trading/index.php?topic=7508.0)
«Ok, read this thread (great info, thanks :)), the press releases and the company's website and here's how I figure IBCX:
- They probably contracted an investment banker or trader to advise them on getting some investors money so they could acquire the Country Club & Golf Course. I say this because on the balance sheet released on October 23rd and on their website, it shows 200 million authorized shares, 188,937,483 issued and outstanding; This is also the share count you get on Yahoo and www.marketwatch.com.
- Then, on November 22, they release this: IBAC Corporations Board Approves Reduction in Its Authorized Shares by 150 Million (http://biz.yahoo.com/bw/061122/20061122005292.html?.v=1). From 500 million to 350 million. But "hey, never heard of 500 million, we thought the number of authorized shares was 200 million !"
- So, the company's plan with all the press releases and marketing (I received information about IBCX on other stocks folders, as they were spreading the information) was to get investors attention and ultimately, money. Anyway, it seems like they were surprised by the market response and got more than they wanted, or got it easier than they thought, so ...
- The reduction of authorized shares from 500 million to 350 million. Since the price of the stock rose 15 fold in 5 trading days, the value they got for their shares rose a lot, so they didn't need to sell to the limit of 500 million shares. Hence the 25% stock dividend.
- This stock dividend of 25% means nothing to me. You get 25% more shares but each share represents 25% less of the company's value. But it's a good marketing tool.
- AussieTrader did good DD on bringing up that NASD regulation, I didn't know about that. I guess most people don't know it either, and that may at least partially explain the 3 days fall out (many people bought because of the dividend news and now are selling because they think it is the ex-dividend date).
- Now, let's get to the interesting point. The current market cap is about $0.009*(350,000,000/1.25) = $2.52 M. The company expects $10.5 M to $11.5 M revenues in calendar 2006. If their 14% net profit margin is maintained, net income will be $1.54 M, so the earnings multiple is 1.64 :o
- If the information presented here (http://ibaccorp.com/IBACCOMPLETEFINANCIALSSEPT.pdf) is true and the company doesn't increase the number of shares authorized without any word to investors (as it did recently), this stock should rise 10 fold from current levels to reflect the true value of the company.
- These are big "ifs", but also considering the property check Michael did (and bringing out the balance sheet and the math), I think it is worth the risk. You risk, say, 50% if it's all bullshit, and get 500 to 1000% if it's true. Also, technically the stock is at a sweet spot to buy, finishing wave 2 at the 200 day SMA, as Elliot theorists would say.
Thanks for all and good luck :)»
Trading plan: Buy IBCX between $0.007 and $0.012 (try not to put orders before the open, or we'll create an imbalance at the open, possibly getting a bad fill and perhaps ruining momentum). Just 1% of capital for the 3 SOF Portfolio, never more than $5,000 to anyone, due to liquidity issues.
OK, in at .0075 ;D
same in at .0075
In now at .00065 with a small position, figured I cant lose much more than this bloody market has already made me lose today, an dif things go well then I can get some of that loss back.
I've had a limit order at .0061 since the market opened and they are not filling it even when it shows the price is .006, pinksheet stocks are always a nasty business one way or the other. >:(
Hmmm.. Maybe this can explain why we are down today:
QuoteThis Is a Public Service Announcement
By Bill Mann (TMF Otter)
December 1, 2006
I wish the emails I've received from "nakedstock staff" were remarkable. I wish I could say that I didn't receive scores of emails from semi-literates pumping some worthless stock. I wish that an estimated 20% of all spam email weren't related to stock hyping.
I wish.
Rain Man investing
Nakedstock tells me I need to "hurry" to buy shares of IBAC (OTC BB: IBCX.PK) so I won't miss its 25% stock dividend on Dec. 1. The email shouts out in huge type: "You have to own IBCX as of December 1st to receive 1 free share for every 4 you own."
http://www.fool.com/news/commentary/2006/commentary06120103.htm?source=eptyholnk303100&logvisit=y&npu=y
I have to say that I haven't received any emails from Nakedstock and I receive quite a lot of those but if they are trying to pump this stock they are certainly not doing a good job. Nobody here has mentioned the stock dividend as a reason to buy this stock (well at least I haven't because it is a non event).
There is a lot of other reasons to buy IBCX but TMF Otter unfortunately didn't take the time to discover those
Well it seems we are in for a bumpy ride...
Motley Fool recognizing a pink- amazing ;D
Got some attention now ;D
I believe the drop in PPS on Dec. 1st was from.....
1. Profit taking from longtime holders
2. Shareholders believing that they get the dividend thinking Dec. 1st is ex-dividend date.
3. Fear, people panic when PPS drops on good news.
4. Technical retracement to fib level with 50MA support at .007
Furthermore, if the company was dumping shares, the price would not have stalled at .006-.007 for 2 hrs.
That's why I bought shares near the bottom at .007
Question, if MM's have heavily naked shorted this stock at the top PPS, wouldn't they have to cover before the Dividend payout date on Dec. 15th since they truly don't have the shares they borrowed?
Quote from: bocasva on December 01, 2006, 02:06:23 PM
I've had a limit order at .0061 since the market opened and they are not filling it even when it shows the price is .006, pinksheet stocks are always a nasty business one way or the other. >:(
They never filled any of it, and I'm glad they didn't. Might try to pick it up between .004 and .0045
if they didn't fill you at .0061, why do you think you'll get it in the .004's
Quote from: elliemae on December 03, 2006, 04:18:04 PM
if they didn't fill you at .0061, why do you think you'll get it in the .004's
Not completely sure of the nature of your question.
Monday will be a new and different trading day from Friday. IBCX needs to bounce off .006/.007 strongly otherwise it will seek lower support; but no complain at all if I don't get filled. Like I said, pinkys are always a nasty business and I'd rather play them conservatively or not at all; that's just me.
Sorry, I wasn't trying to sound rude, was just curiuos on your logic :)
This post was written by anviriling, but as we changed the 3 SOF server (do you notice the website is opening pages faster?) it was lost. I saved it just before the transition:
«I've yet to buy, but I'm thinking more like 2 or 3%. Arkansas, for those of us who live nearby, is becoming a very cool place. Retirees are flocking there by the droves and for good reason: Arkansas is cheap, beautiful, and the climate is splendid. I'm a Texan but we go there trout fishing often. We love the place. It has an historic place in the history of America's westward expansion from about 1812 through the1860s and was such a wild and beautiful place, the Rockerfellers bought it: literally. They did and still do own a whopping chunk of Arkansas and held the governorship in the earlier part of the 20th c. Known all the way through the 1950s for their "penis" shaped signs advertising local "hot springs" or "spas" (whorehouses) as well as dubious politics right up to the present, it is a state with a lot to offer and a huge change in demographics underway: the state has picked up a huge hispanic populace of late due in large to the job opportunities there in several areas of business. The southern part of the US is the new promise land for a growing number of people at different economic levels.
Now, Rosswood, although I don't know the place personally, sounds very "Rockerfellerish" to me. An old money golf course and club that can attract a lot of highbrow residents. We have several places nearby here to my home that have done the same thing from scratch and we have mosquitos and fire ants to deal with and not nearly the nice weather. Building in Arkansas is cheaper by the yard than just about anywhere else I can think of. The margins on these homes must be attractive. To build such as this in say NY state would entail every permit you can think of as well as several bribes to get it accomplished. So much for the liberal eastern US. Arkansas sound good to me. I think these folks may have something here.
regards, mitch»
This thread is great, we should do more Pinks ;D
No, we shouldn't, but it attracts you (and myself), because we know there are a lot of inefficiencies on that micro cap market, so a deep study often pays (well, there's only one problem, dilution may kill any sound and correct analysis).
Michael and elliemae made excellent points explaining Friday's fall. That "Naked Stock Staff" e-mail is a shame, pumping the stock because of the irrelevant 25% dividend (since it is a big number, it works as a marketing tool, but it's irrelevant as the share count will also grow 25%).
I like the way Motley Fool explains the phenomenon:
«This is "Wednesday is fish sticks" logic. You remember in Rain Man, when Raymond Babbitt is about to go apoplectic because he always has eight fish sticks, and sitting before him are only four? So what does Charlie Babbitt do?
He cuts them in half.
A "free share" is the same exact thing as a pizza cut into five pieces instead of four.»
This is really amusing ;D
What Naked Stock Staff and Motley Fool didn't do is to go deeper on the study of IBCX ::)
None of them considered the assets, the revenues, the profits (assuming the balance sheet and income statements published on their website are close to the truth) or the projects. Not even the market cap.
I also enjoyed anviriling's post, describing Arkansas property market, thanks :)
I guess Naked Short Staff and Motley Fool put many eyes on IBCX for the wrong reasons, but those eyes will start seeing the truth soon. And when the price pops 100% or more in one day everybody will study IBCX and see what we're seeing here.
My only fear, as always happens with Pink Sheets and OTCBB stocks (and on other small cap stocks too), is the possibility of heavy dilution coming underway. There's no way to know if it's coming or not, because a PK can change the number of authorized shares without any word to investors.
I guess that now that they bought the Rosswood property they will get the bank loan to make that $100 M investment in home construction. No bank ever loans money to construction without you owning the land.
They can't possibly think to dilute shares to get the $100 M, that's impossible.
IBCX is now a $1.96 M market cap company with $10.54 M in assets, $11 M revenue estimate for 2006 and about $1.4 M net income estimate for full year 2006.
The earnings multiple seems like 1.4 now. If it's true. I would really like IBCX to move up to the OTCBB, so they would report the 10-Q and 10-K. They're working for it, at least that's what they say:
• IBAC Corporation Prepares To File Form 10 in Anticipation of Move to the OTCBB (http://biz.yahoo.com/bw/061128/20061128006032.html?.v=1)
Business Wire (Tue, Nov 28)
«The company is working on a fast track basis, and expects to file the form 10 very soon, thus giving the company the ability to trade on the OTCBB.» Let's see what "very soon" means. Well, only 6 days have passed.
Another press release today: IBAC Corporation Signs Sponsorship Agreements for Their Florida Restaurants (http://biz.yahoo.com/bw/061204/20061203005082.html?.v=1)
Not relevant, I think, but you know Red Sox better than me :D
This text is getting loooonnnnngggg, I don't know if anybody will read this until the end.
The doubt always is: is the stock extremely attractive and the market just didn't notice it because it was too small, or the market noticed indeed but there are problems we don't see? So, is the market inefficient or is this thread inefficient?
We'll soon find out, but my money is on this thread.
Now exclusively considering the short term, I think there are 3 different phases to read on the stocks behaviour:
A) From November 20 to November 27
The company released this press release on November 13th:
IBAC Corporation's Board of Directors Announces a 25% Stock Dividend (http://biz.yahoo.com/bw/061113/20061113005538.html?.v=1)
Nothing happened until someone started pumping IBCX with e-mails spam. The e-mail said something like this:
«Nakedstock tells me I need to "hurry" to buy shares of IBAC (OTC BB: IBCX.PK) so I won't miss its 25% stock dividend on Dec. 1. The email shouts out in huge type: "You have to own IBCX as of December 1st to receive 1 free share for every 4 you own."»
So, naive investors bought the stock until Friday (on Friday they were already crying). Probably many of them sold in tears on Friday, when Motley Fool explained the dividend was irrelevant (http://www.fool.com/news/commentary/2006/commentary06120103.htm?source=eptyholnk303100&logvisit=y&npu=y).
B) From November 27 to December 1st (Friday):
Naked short sellers, the authors of the e-mail, sold shares to the naive investors described in A), from a high of $0.021 to a low of $0.007. Naive investors kept on holding not understanding what was going on and thinking "I need to hold until December 1st to get the dividend", until they read the Fools article and dumped shares.
C) Starting today
Naive investors already dumped most of their shares for a big loss, but some of them will sell today, as they think "well, I have the dividend secure, I can sell now", which is stupid, because the dividend is irrelevant (and they lost more than the 25% anyway) and everybody is confused about the ex-dividend date, I think not even the company knows the NASD rule for dividends of equal or more than 25%. Anyway, are Pink Sheets regulated by the NASD? Big confusion here, I'm not sure either, but I don't care all that much because I know, as Michael says, the dividend is a non-event, completely irrelevant.
Naked shorts now will start to buy to cover, or will they try to push it down even lower? They might, but it doesn't make much sense, because they should use the "naive" selling to buy to cover.
I guess they didn't count on having 3 Stocks and others on the buy side on Friday, as we see value. This could unfold on a very rapid rise, as naked shorts buy to cover and people start realizing the true story behind IBCX (going deeper than this dividend - ex-dividend irrelevant issue).
We'll see. I'll continue holding IBCX.
David,
I live in the Ft Myers area and I can say that the restaurants (Sanibel Steakhouse)are locally considered the best Steakhouse of the area. It's just good to know that a pink is actually doing business and not some hocus pocus!!
Basanlas
...one helluva shakeout :-\
Nibbled a bit more at .0045
Wish I bought today but oh well... I bought at .0075 only down 28% which is not bad for a pinky im just going to hold it out for the long haul.
Quote from: bocasva on December 03, 2006, 04:09:20 PM
Quote from: bocasva on December 01, 2006, 02:06:23 PM
I've had a limit order at .0061 since the market opened and they are not filling it even when it shows the price is .006, pinksheet stocks are always a nasty business one way or the other. >:(
They never filled any of it, and I'm glad they didn't. Might try to pick it up between .004 and .0045
I guess the market maker heard my complain from Friday and was kind enough to fill me at .0041 today. Looking to unload it already for a quick profit though.
I just got filled too (moderate size position). I bought at .005 based on just speculation and terliso's magic lines! Now I've just got to sit back and relax and watch the magic happen! ;D
Good luck all.
Wow, pretty brutal drop so far in just 2 days, but I guess I am not used to trading pink sheet stocks that often. ::) My last one was ETIM, and I lost money there. I forget if Gamez n Flix (GZFX?) was a pink sheet, I think I came out about even on that one.
I still feel good given that it seems the net brain trust of 3SOF administrators and top stock pickers seems to agree it should go up, but if it werent for that I would have sold already lol!
Quote from: basanlas on December 04, 2006, 06:38:36 AM
David,
I live in the Ft Myers area and I can say that the restaurants (Sanibel Steakhouse)are locally considered the best Steakhouse of the area. It's just good to know that a pink is actually doing business and not some hocus pocus!!
Basanlas
Thanks for the information Basanlas :). I guess just those two Florida restaurants are worth more than the company's market cap, and they're for sale (http://biz.yahoo.com/bw/061102/20061102005343.html?.v=1).
But nobody is completely sure about the current market cap. That's why I never traded Pink Sheets before this one. I was attracted to it because it has a pro forma balance sheet (http://ibaccorp.com/IBACCOMPLETEFINANCIALSSEPT.pdf). They changed the number of authorized and issued shares frequently in the past, but hey, at least they have a number of authorized shares (most Pinks don't).
Anyway, the fact is that I'm losing 58% on this position in just a couple of days. I warned something like this could happen:
QuoteIBCX presents an opportunity where one can lose 50% in a few days (or even in one day, beware), or make 10 times the money invested in a short period of time.
I'm glad I used the position size as a money management tool, so the 58% loss only represents 0.58% of total equity, nothing serious. But I know some of you bought more than 1% of capital in IBCX.PK, and I'm feeling I shouldn't have recommended this stock, because the risk was too damn high (it didn't look so, but being a PK, you know).
My best guess at trying to understand the market's behaviour is the most simple it can be:
1) Those e-mails pumping the stock said: "you need to hold until December 1st to get the 25% dividend"
2) According to those e-mails, the ex-dividend date was today, so that may explain the market reaction, as all the "e-mail buyers" dumped.
Going forward I rationally expect the stock to move higher, since according to public information it is trading at a fraction of its value, but two things may be happening:
1) We don't know the market cap, the company might be issuing and selling shares in a rage, and will take it down to $0.0001. It will sell everything it can, nevermind the price. I wonder if insiders own a significant portion of the company's shares, or are they just "employees"? I'll try to study this for the next update.
2) Everybody is concentrated on the dividend issue, and the market is doing what it should do if that were the only issue, going up on pumping, then down when people started to perceive the dividend was irrelevant, and finally down on the perceived ex-dividend day.
Scenario 1) is bearish and scenario 2) is bullish. I need to study more and perhaps let the market trade a couple of days more to figure which one we're in.
But I can tell you, if I get convinced we're on scenario 2), I'll pump it myself, writing a very bullish article, spreading it across the internet (I know how to do it ;)) and putting the stock where it should be, at least $0.1.
If "naked short staff" did it I can also do it >:D (but now for the right reasons). Perhaps you guys can help me when the time comes, if you have the willing and time.
For now, I'll continue holding IBCX.
(By the way, the 3 SOF Portfolio math for calculating intraday variation is considering we always put 6.66% of capital in each stock, but as you know we only put 1% in IBCX, so where you read -2.03% it should read +0.67% for today's change. The total gain is always right, standing at 236.27% since April 2005. Ramsburg is fixing this technical problem)
Quote from: David Randolph on December 04, 2006, 08:03:01 PM
2) According to those e-mails, the ex-dividend date was today, so that may explain the market reaction, as all the "e-mail buyers" dumped.
I think we might be in for another buying surge once the dividend date pump becomes widely accepted as wrong. In fact we SHOULD start pumping this to help it on it's way. This is more in line with the NASD regulation for 25% or greater dividends Iposted a few days back http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_003997.pdf. Well, we will see. As with all things pink the truth is very cloudy & grey.
Take a look to this info posted on investorhub which confirms this NASD regulation (well if you take it at face value which you probably should not).
http://www.investorshub.com/boards/read_msg.asp?message_id=15269024
IBCX ~ 25% Stock Dividend Clarified .....
I had a conference call ~ 12/04/06 with
IBCX Transfer Agent & Ameritrade Dividend Compliance Dept
Ameritrade Dividend Dept. ... 888-723-8504 ~ Ex 4532 .. Kevin
He confirmed Div issue date ~ 12/18/06 with buying up to 12/15/06 to qualify for dividend ....
*25% Stock Dividend ~ Paid ~ 12/18/06 ~ X ...
( Buy up to 12/15/06 ~ X ) ... ( Sell up to 12/15/06 ~ No Div )
You should Verify with your Broker Div Dept DTC Report for X Date of Issue ....
T/A will issue Cert. to DTC & Street Name on 12/15/06 for DTC Broker Distribution
T/A Cannot Verify X Date of Broker Ownership Issue Date ....
QuoteBut I can tell you, if I get convinced we're on scenario 2), I'll pump it myself, writing a very bullish article, spreading it across the internet (I know how to do it Wink) and putting the stock where it should be, at least $0.1.
nice to read david
today trendline 2 showed support....sure 1 hour to go
Thanks for your messages AussieTrader and ket1390 :)
The picture looks much brighter to me now. The Pink Sheets market is really inefficient. Now I feel confident we're on scenario 2 of my previous update, that is, to recap, what happened was:
1) The company released a press release on November 13th announcing a 25% stock dividend (http://biz.yahoo.com/bw/061113/20061113005538.html?.v=1).
2) On November 20th somebody started a pump and dump operation, using this dividend press release, as most people are attracted by dividends (of course, they don't know what they're doing, they just see a 25% gain compared with the 2% yield of bank deposits. They ignore the fact that stock prices move, a lot !). The e-mail said they needed to buy until December 1st, which is consistent with the words on the press release (shareholders on record at December 1st). Buyers didn't know you need to hold shares 3 days before the ex-dividend date to be a shareholder of record, much less they knew about the NASD rule for dividends equal or higher than 25%.
3) The stock price rose from $0.003 to $0.021 in just five trading sessions. Volume was strong. The group that pumped the stock sold shares short, naked shorts. The stock started to trade sharply down as people were perceiving the dividend issue was irrelevant. The sell off continued when Motley Fool clearly explained the dividend was a non event (http://www.fool.com/news/commentary/2006/commentary06120103.htm?source=eptyholnk303100&logvisit=y&npu=y) and people acknowledge they were mislead.
4) Yesterday, December 4th, was the low point of the stock, as most people had the plan of selling that day, since in their head that was the ex-dividend date.
Remember IBCX traded just $121,600 today, so all this movement and inefficiency is not only possible, it is probable.
What now? Now somebody has to tell the true story about IBCX. Somebody has to go outthere and make the bullish case on the stock, pumping it up 10 fold for all the right reasons, not this stock dividend crap. Do you think I'll try to do it myself? You bet I will !
Here's my pumping plan:
1) The stock must be up on the day. The pump must be done with the market opened and in phases, it's not wise to get everybody on board at the same time.
2) I need to publish a very bullish article on Investors Hub and Raging Bull. The article needs to contain the links to all relevant information, this will work much better because people won't just take my word for a fact.
3) I have a 40 million e-mail database to send the article to. I also have the more than 8,000 3SOF registered users, but I'll go easy on these, urging them to buy just pocket change on IBCX.
4) Finally, I need to spread the article on more popular boards, probably using message boards of companies in the same sector, companies that own restaurants and hotels. Home building and real estate companies will also work well. Then I'll use several nicks to put 5 stars on my messages, responding to myself and other stuff, to get everybody's attention >:D
Ok, I think I've shared the basic pumping principles. This is how I made AMRE rise 1200% in three days, remember? LOL
I'll be on this job tomorrow, if the stock is up on the day, the more, the better ... if not I'll save it for better timing. I tell you, if this doesn't work, nothing will do, and I'll dump my 1% of capital in IBCX (but of course I'll tell you that in advance, when the market is closed).
Wish me luck :)
Sounds like an excellent plan, let the pumping begin ;)
good luck, and I'll do anything to help get the news out! ;)
here is a post on Investors Hub, link:
http://www.investorshub.com/boards/read_msg.asp?message_id=15315858
Quote
I finally spoke with Ed Hayter today on the phone after leaving a couple messages over the last few days. I am not gonna lie, Ed sounds like a man that is a bit overwhelmed right now. He said receiving over a 100 phone calls a day from shareholders is not out of the ordinary. He also said that he has received many threatening calls and emails as of late. This I find to be ridiculus. People just need to relax. Ed is only one man and can't talk to 100's of people at the same time.
As for the conversation. My main purpose was to let Ed know that if he wants to move forward, he needs to be straightforward with shareholders. I asked him how he would feel right now if he was in our shoes. The company files a Reg Dex and then all off the sudden the T/A stops giving out info to shareholders. He said he completely understood where I was coming from, but reiterated the share structure as Angel has stated. (228 Million O/S, 350 million A/S, approx. 100 million float) He also stated that the Reg Dex was filed in anticipation of future acquisitions and/or deals that might have required its use, however it is not needed at this time due to IBAC securing other sources of financing. (Angel also alluded to this in a past post, that the Reg Dex may have been filed but then never needed) Due to me kind of being in a rush I was unable to get back and reiterate the importance of getting the TA to give out info to shareholders, but Ed did get the original drift that I was not thrilled with the current situation.
We did also dip a little into Ed's past in this conversation. And when the conversation went that direction I was glad to see Ed admit that he made a mistake. He admitted that he did a 504 offering that killed the stock and diluted it to hell back when the company was young (ICAN days), but he said it was a mistake he will never make again. Ed said he has learned a lot in 2 years of being with this company, and if he could go back in time he would have done things much differently. So as I said I was glad to hear Ed feel some remorse for a bad decision he made in the past, as it makes me feel that he is less likely to make another decision like that in the future.
Also as Angel has stated before Ed has a large stake of his own money in this stock as well. Ed personally financed the acquisition of one of their properties out of pocket, with a zero interest loan to the company. He has invested over 6 million dollars of his own money into the future of the IBAC corporation. This should give everyone a little peace of mind. Ed is not diluting shares here, because he stands to lose his shirt if he does. Ed's best source of wealth right now is to build shareholder value and raise the market cap of this company. We both agreed that the stock is trading way below its true valuation, and once again I reiterated that if he wanted it to reach its true value then he would have to do things while keeping us in mind...
I also confirmed that IBAC owns 100% of the Steak Houses and Hotels, however they DO NOT own the land on which they sit. They lease the land for the time being...
All in all I was glad I finally got to speak with Ed on the phone. Makes me feel a little bit better about my position here, as Ed and company are looking for a lot more future PPS growth than just a few spikes here and there...
Thanks for your help :)
The pre-conditions are set for a good pump on IBCX, but I feel sick today (probably something I ate :P), so not really in the mood ... also, if the stock could move a bit higher from current levels, say to $0.009 - $0.01 on its own the pump would work much better, because the job must make it close above $0.021 to be really effective.
Tomorrow is another day, I'm going to bed. You take care.
Some people got there hands on the REGDEX filling for IBCX. Im going to post it here once I get the link or email of the filling. Here is something posted on investorhub forums regarding the REGEDEX filling for IBCX.
////This was posted on another board:
"Got the REGDEX ... easier than I thought
So what exactly are we looking for on this document?"
"It's available through Thomson Research, which most University students have access to through their library.
So far as I can tell, it looks like a $15,000,000 506 offering to an accredited investor in PA ... in exchange for working capital. Looks like $90,000 had already been sold at the time of the filing.
I'd say Metical hit it on the head when he said private placement.
Company says that none of it will be for non-accredited investors, so it looks like Ed might be on the up and up this time around.////
I got it, it was a private placement
Here it is
David,
Most everyone knew about the regdex being filed on 11-06-06, however, I noticed that only $90,000.00 was used, is that correct?
Quote from: elliemae on December 06, 2006, 06:44:17 PM
David,
Most everyone knew about the regdex being filed on 11-06-06, however, I noticed that only $90,000.00 was used, is that correct?
Yes, that's correct, thanks for the information (applaud).
elliemae, read this from this thread:
QuoteAs for the conversation. My main purpose was to let Ed know that if he wants to move forward, he needs to be straightforward with shareholders. I asked him how he would feel right now if he was in our shoes. The company files a Reg Dex and then all off the sudden the T/A stops giving out info to shareholders. He said he completely understood where I was coming from, but reiterated the share structure as Angel has stated. (228 Million O/S, 350 million A/S, approx. 100 million float) He also stated that the Reg Dex was filed in anticipation of future acquisitions and/or deals that might have required its use, however it is not needed at this time due to IBAC securing other sources of financing. (Angel also alluded to this in a past post, that the Reg Dex may have been filed but then never needed)
This isn't the update yet, I'll do it tomorrow before the open, it's 1 AM here.
See ya :D
english is not my mother language..... what is with this 15mio about ?.....i dont get it....this investor can sell now shares worth 15mio on the market ? dilution ?...
Quote from: ket1390 on December 07, 2006, 03:19:52 AM
english is not my mother language..... what is with this 15mio about ?.....i dont get it....this investor can sell now shares worth 15mio on the market ? dilution ?...
When you're a company traded on the Pink Sheets you can always sell shares on the market without any previous information to existing shareholders. This file was because the company intended to attract institutional investors or individuals to invest up to $15 M.
But they only sold $90 K of those $15 M, and then went to the bank for the money. They have a $100 M investment plan, to build 300 to 400 houses by the golf resort they just bought and other real estate/hospitality projects.
From what you can read on this thread I believe IBCX is worth 10 times more than the current market cap. Being such a penny stock it might be possible to make it run 1,000% in just a few days. But the time has not come yet.
The market needs to show me there's value at these prices, or else I would be taking the risk of telling people to buy what others are eager to sell.
My current plan stands as follows:
Value will prevent the stock from falling any further. It will build a base around current levels. When it starts climbing to $0.01 I'll put my pumping plan in action, to make it close above $0.021. If IBCX is able to close above$0.021 I see it running to $0.1 in a jiffy.
I'll continue holding IBCX.
IBCX is acting exactly as it should. Yesterday my plan was:
QuoteValue will prevent the stock from falling any further. It will build a base around current levels. When it starts climbing to $0.01 I'll put my pumping plan in action, to make it close above $0.021. If IBCX is able to close above $0.021 I see it running to $0.1 in a jiffy.
I'll maintain this plan. Elliemae has been sending me usefull information that I'll use when I'll pump the stock. Thanks a lot !
IBCX has been building support the last few days in the .005-.006 range, seems the weak hands are all out. IBCX feels like its ready to take off just needs some news or increased buying.
I agree. Patience.. 8)
mmmh..
I've had a GTC order waiting to fill at $.005 but it never did :'(
I feel I can't wait any longer to try to pump IBCX, because I'm afraid the volume dries too much and then it will be much harder to convince people to buy it.
So, although the conditions aren't perfect, I'll do what I can to make it fly, starting tomorrow. Tokyopua, AussieTrader, elliemae and others said they would be available to help on the pumping activities. I'll send them private messages with instructions after the process starts.
I expect the bullish technical signal we'll try to provide attracts other people to the stock, since fundamentals look so attractive. It just needs publicity, this time, the right one.
I won't sell my shares tomorrow, I'll keep on holding them and evaluate how the session went after the close. Wish me luck :)
let the pumping begin. I'll do whatever I can to assist :)
At what point in time should we be able to tell if the pumping worked? By tomorrow afternoon or later? Maybe IBCX would be so kind to release some good news for IBCX longs.
Quote from: elliemae on December 11, 2006, 06:05:13 PM
At what point in time should we be able to tell if the pumping worked? By tomorrow afternoon or later? Maybe IBCX would be so kind to release some good news for IBCX longs.
Hello elliemae :)
Well, we were able to make almost 1,000 people read the article I wrote on the Penny Stock Picking board, which talked only about the positives of IBCX.
Volume was good enough, at 18.5 million shares, but we weren't able to break $0.006 on the upside, so people weren't attracted to it. Maybe today.
Anyway, I spent all day yesterday trying to pump IBCX (not by the close, I had to go away from the computer), but I feel I have more important things to do, since pumping stocks won't make anybody money over the long term.
I delivered on the promise of trying to pump it, sent millions of e-mails (I guess most, if not all, went to the spam folder) and wrote and disseminated bullish articles across the internet. You and others have been a great help, thank you ! :)
Now I'll wait a few more days, perhaps until the end of the week, to see if something happens. I'll continue holding 1% of capital in IBCX through today's session.
I want to tell you that while I was gathering information for IBCX's pump I saw some dirt below the carpets, and I've been thinking about that for a while.
I saw that probably Edward Hayter, the Chairman and CEO of the company, has preferred shares that give him special rights. It was impossible to verify if this is accurate or not, but I read in an old ICAN message board (ICAN is IBCX's former ticker symbol) a piece of news that mentioned that the company retired billions of outstanding shares that he personally owned in exchange of those preferred shares.
Another thing that I read and also didn't like, is that the company indeed owns the two hotels, but not the land below them, which is leased. So we can't consider what we see, the two hotels, as pure and simple assets.
I've been worrying about these issues since yesterday, but I also saw positives ... that is, the underlying business is indeed growing. Monthly revenues in 2006 are about triple what they were in 2005 and the company is profitable. I've decided to remain a believer for the time being, I want to see if they deliver on the promise of making a crystal clear SEC form 10, which would enable them to move from the Pink Sheets to the OTCBB.
Still waiting and holding IBCX.
ICBX finally showing some signs of life, trading up 25% at .0075. Maybe the pumping operation effects are starting to kick in ;)
The small amount that I have invested in this pinky sure has taken a lot of my time and efforts, but it's the excitement of the game that is so fascinating to watch unfold in these penny stocks :D
Quote from: tokyopua on December 13, 2006, 10:00:22 AM
ICBX finally showing some signs of life, trading up 25% at .0075. Maybe the pumping operation effects are starting to kick in ;)
Or else someone with really pumping power read my analysis and thought it was an excellent story to make the stock run 10 fold. To pump well sometimes one needs good money to start the motor engine of the stock, and then everybody will follow suit.
People usually follow these simple rules: "Money talks, bullshit walks", or "show me the money". Let's see if our friends can make it run hard, passing through $0.021 would be ideal.
Is this good or bad?
IBAC Corporation Board to Meet Monday to Review a Proposed Spin Off of Its Restaurant/Food Service Unit
Wednesday December 13, 4:23 pm ET
NEW YORK--(BUSINESS WIRE)--IBAC Corporation (Pink Sheets:IBCX - News), a Hospitality Holding Company, today after the bell announced that its Board of Directors will meet Monday to review and consider spinning off its restaurants and food service business to another publicly traded company.
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The Board will meet to consider the mechanics of the deal and the structuring of the spin off, the company believes that this move will enhance shareholder value and grow the two companies' faster towards its stated goals and objectives. The restaurant and food service business would include the two restaurants in Florida and its interest National Hospitality Management Group (NHGM holds the contracts with the Pine Bluff convention center) in Arkansas and the Restaurant in Memphis.
The company sees the spin off as a positive move towards growth and prosperity for the company and its shareholders, the value of the spin off is set between 4.5M - 5M dollars with shareholders of record to receive stock and/or a cash dividend in the new company, so shareholders will maintain an interest in all of the assets.
"We believe that with this proposed spin off the two companies will grow at a faster pace in their respected industries, the restaurants will concentrate on new locations either by franchising or company built restaurants. The company's brand names are Sanibel-Palms Steakhouses, Cozze. IBAC will concentrate on the Hotels and Country Club & Golf Course of which is all Real Estate owned properties with a home building division being put in place and will concentrate on additional acquisitions. IBAC will continue with its anticipated move to the OTCBB with a stronger asset base," said Wayne Burmaster, President IBAC.
Mr. Burmaster also stated "that this will streamline expenses and accelerate growth as each company will operate within its selected industry. The details of how the deal will be structured and the identity of the spin off public entity will be announced after the Board meets."
This press release does not constitute an offer of any securities for sale. This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, without limitation, the company's limited operating history and history of losses, the inability to successfully obtain further funding, the inability to raise capital on terms acceptable to the company, the inability to compete effectively in the marketplace, the inability to complete the proposed acquisition and such other risks that could cause the actual results to differ materially from those contained in the company's projections or forward-looking statements. All forward-looking statements in this press release are based on information available to the company as of the date hereof, and the company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this press release.
I think spinning off a sub-penny stock into another publicly traded company sounds pretty suspect to me, but if it helps pump the PPS of IBCX up and we all make money in the short term, then Hip Hip Hooray! Because in the end, it's all about making a profit ;D
David, I want to thank you for your plan to pump IBCX, even though it was in the dumps and only a small % of portfolio was in IBCX. I think everyone realizes how much off your time and effort you had to put into that mission. You really got the ball rolling, and then another group picked up the ball (probably from you educating them with your analysis) and then the company chimed in with that news release in after hours today. Somehow it all will work out, but really there was no assurance it would all fall into place. Again thank you!! By the way, the reason I have been so passionate about this stock is because my 21 y.o. son put $5,000 into IBCX at .007, otherwise, it would have been just another trade for me.
Quote from: elliemae on December 13, 2006, 06:39:43 PM
David, I want to thank you for your plan to pump IBCX, even though it was in the dumps and only a small % of portfolio was in IBCX. I think everyone realizes how much off your time and effort you had to put into that mission. You really got the ball rolling, and then another group picked up the ball (probably from you educating them with your analysis) and then the company chimed in with that news release in after hours today. Somehow it all will work out, but really there was no assurance it would all fall into place. Again thank you!! By the way, the reason I have been so passionate about this stock is because my 21 y.o. son put $5,000 into IBCX at .007, otherwise, it would have been just another trade for me.
Wow, I hope we leap past .021 and your son gets rich off this! And here I was worried with only $1500 in the stock, lol. But he might want to be careful in the future as this thing could have gone the other way too. I lost 75% in ETIM recently, though fortunately it was only a $500 investment and I could afford to lose it, but that is the way pink sheets go more often than not.
We had this news after-hours on IBCX:
IBAC Corporation Board to Meet Monday to Review a Proposed Spin Off of Its Restaurant/Food Service Unit (http://biz.yahoo.com/bw/061213/20061213006068.html?.v=1)
QuoteIs this good or bad?
I think it's freaking hot tocitygirl :) It's the kind of news that can make this penny stock run 100 or 200% tomorrow.
Why? Because they say the restaurants unit is worth $4.5 M to $5 M. Well, the last time I checked the whole company's market cap was $2.24 M. So, if half of it is worth $5 M, how come the whole company is worth $2.24 M?
This is a spectacular speculative story. I expect the pool that made it rise 33% today to disseminate the story, or else make the tape talk (that is, if the stock is up, say, 50% with very high volume, everybody will see it and jump on board).
Quote from: elliemae on December 13, 2006, 06:39:43 PM
David, I want to thank you for your plan to pump IBCX, even though it was in the dumps and only a small % of portfolio was in IBCX. I think everyone realizes how much off your time and effort you had to put into that mission. You really got the ball rolling, and then another group picked up the ball (probably from you educating them with your analysis) and then the company chimed in with that news release in after hours today. Somehow it all will work out, but really there was no assurance it would all fall into place. Again thank you!! By the way, the reason I have been so passionate about this stock is because my 21 y.o. son put $5,000 into IBCX at .007, otherwise, it would have been just another trade for me.
Now I fully understand your efforts on IBCX, it was love :-*
I guess my 3 year old son or my 4 month old daughter won't give me that kind of worry for many years to come ;D
Show your son Tokyopua's advice, because he could have lost his $5,000 in just a couple of days trading this or any other PK. There's a 90% chance of something like that happening when you're buying Pinks. It turns out IBCX is falling on the 10% category that instead of falling 90%, I think it will rise 400 or 500% from current levels (but we need to continue monitoring it closely).
I would like someone to go to IH and RB to make some publicity on this article (http://www.3stocksonfire.org/trading/index.php?topic=8135.msg80433#msg80433) again, and also explain the comment that I made on the $4.5 - $5 M spin off (but not before the open, just mid session). Thanks :)
Elliemae, I guess your kid needs to get out of the stock with a small loss, I sure don't like what I'm seeing after yesterday's news.
I hate Pinks, I feel like a blind man. This was my first and my last PK play. I'll sell my 1% tomorrow at the open (now don't go out spreading this, of course).
Now rebounding, there's no safety in numbers, or in watching the ticker. Good luck, I'm going for a walk.
He sold for a small loss and a BIG lesson! I think the lesson was worth the loss. Thanks for all you do David ;)
Quote from: elliemae on December 14, 2006, 12:23:54 PM
He sold for a small loss and a BIG lesson! I think the lesson was worth the loss. Thanks for all you do David ;)
I guess so. Now he knows the stock market can be a very risky place and that's a good thing to know.
I don't have a bullish explanation to what happened today on IBCX. A friend of mine has, he says people were disappointed because they thought the restaurants would be sold to someone instead of a spin off in the public market, according to this press release:
• IBAC Corporation Announces Offer to Acquire its Restaurant Operations (http://biz.yahoo.com/bw/061102/20061102005343.html?.v=1)
Business Wire (Thu, Nov 2)
Their English seems as bad as mine ;D
But I think the message is clear, I'm pretty sure that the market cap isn't nearly as low as we've all been thinking. On the balance sheet says 188 million shares outstanding (market cap = $1.316 M). We have calculated that, with 350 million shares authorized and a 25% stock dividend, the share count couldn't possibly be more than 280 million (market cap = $1.96 M).
So, when they say they will spin off a part of the company (less than half) that is worth $4.5 to $5 M, the share price necessarily should have risen to represent a market cap of at least $10 M, that would be something like $0.043.
Instead of rising six fold, the stock went down 12.5%. Why?
Here's a possible explanation, a disgusting one:
- Before being IBCX, the company's ticker symbol was ICAN. If you have some time, you can read this old ICAN message board (http://www.marketmillionaires.com/hot-investment-tips-stock-picks/2669-ibcx-old-ican-thread.html). The part that caught my eye was:
«NEW YORK, Mar 09, 2005 (BUSINESS WIRE) -- IBAC Corporation, (Pink Sheets:ICAN) announced today that it's CEO, Mr. Edward W Hayter, will retire 6,000,000,000 shares of his personal ICAN common stock in exchange for a class of preferred stock.»
- This tells me there are a lot of preferred shares outthere, not mentioned on the pro-forma balance sheet or in any other place. These preferred shares, owned by the company's CEO, probably are convertible to a very high percentage of ownership of the company. For example, those preferred shares might be convertible into a number of common shares that always grants Mr. Hayter 80% or more of the ownership of the company.
I've seen this trick on GSHF, VRDM and INSQ, remember those horrible ethanol plays?
Basically, common shares don't represent the company's value. They're a worthless piece of paper.
If my bearish theory is right, all these enthusiastic press releases are there for one thing and one thing only: steal money from investors, in a legal way !
These guys may sell common shares all the way down to $0.0001, because they don't represent the company's value, preferred shares, owned by the CEO, do.
This is just a theory, but the behaviour of the stock tells me to SELL it tomorrow. By the way, remember not to touch Pink Sheets again, they're a losers game !
I had some costly lessons with once MTDX.PK now SCPT.PK. These guys are complete crooks. But not all pink sheets are like these. I know that there are few good ADRs that trade as pink sheets. So can't say everyone is a crook but certainly, 99% of them are.
I might hold through tomorrow, as I see the knock on effect of the 3SOF working now as I just got an alert from the stockalarm.com about IBCX. These guys seem to have a good track record on their alterts, I saw CHDT fly right after their alert (of course I was already in because it was a 3SOF pick :-)
Anyway, it may be that the ripple effect is starting as the 3SOF pump caused others to pump, we will see tomorrow.
patience...this is on the radar...ibcx under top 3
http://www.pinksheets.com/marketactivity/topquotes.jsp
Quote from: ket1390 on December 15, 2006, 02:01:10 AM
patience...this is on the radar...ibcx under top 3
http://www.pinksheets.com/marketactivity/topquotes.jsp
Thanks for the link, very useful. ICBX is now the number 1 requested quoted on the pinksheets website. I really am torn on this one, I think if if we all held for another day or two we might get our pop, maybe a sell limit is the way to go, I think I'll sell only if it drops 10%+ intraday. (or shoots up 50%) ;D