3SOF

i dont trust this company. they have been in the market for 2 years, if they were as good as they claimed, the market should have already appreciated its value. i am worrying about massive dilution, as they did before. and, after a few times of share reduction, they still have 500m total. in 2005, they claimed to finish af and be listed at otcbb in the near future.......

should bounce from SAR...hopefully day reversal...

Quotei dont trust this company. they have been in the market for 2 years, if they were as good as they claimed, the market should have already appreciated its value.

Well, they were much smaller two years ago than now.

Quotei am worrying about massive dilution, as they did before.

Me too.

Quoteand, after a few times of share reduction, they still have 500m total.

They said they reduced the # of authorized shares from 500 million to 350 million. But they can be lying, or they can have increased it back to 500 million without saying anything.

Quotein 2005, they claimed to finish af and be listed at otcbb in the near future.......

Well, now they have a balance sheet and income statement on their website (which can be false).

I don't know, even if the # shares issued and outstanding were 500 million as you say, current market cap would still be $2.5 M, and they have more than $10 M in assets. They have brick and mortar assets, there's no doubt about that.

I bet their two restaurants alone will be sold for more than the current market cap.

Anyway, I'm glad I only put 1% of capital on this Pink Sheet, but I'll give it some more days, 50% up or down on a stock like this means nothing.

Thanks for your view

[email protected]? AYE!

Quote from: shipman on December 04, 2006, 02:21:50 PM
[email protected]? AYE!

looking like that......the bounce will be good. IMO

-Ken-

I take full responsibility for the reversal - I have the anti-Midas touch going on and everything I touch turns to shit - soon as I bought in, it turned down and hasn't looked back 

Any minute now -------
   
Later that day.........Any day now.

Executing to a set of pre defined trading rules will save you time, emotion and money.

Looking to enter IBCX Wednesday. Why? (well, aside from the speculative possibilities 

http://www.3stocksonfire.org/trading/index.php?topic=7595.msg78305#msg78305

"Step 3 Entry #1: The STEPS pullback entry should be on the day of or the day following reversal confirmation. You can afford to be careful on entry here; there is no need to dive in because the pullback has to confirm and then start reversal. So, watch for candles that give confirmation e.g. an inside day, a morning doji star, bullish harami etc. You can also use an ascending trend line in conjunction with confirmatory candles to help guide entry. (remember though, entry is conditional on at least 2 days of pullback having occurred and the low of the initial breakout having not been pierced)."

i like this picture (from fous) 

 
hehee......That one in the pic is IBCX?

Way oversold, should get a strong bounce when looking at this current chart
(hit link below)
http://**********.net/forum/index.php?action=dlattach;attach=1558;image

Need some good news here.  Looks like dead money untill it clears .0075

Careful with the Pink Sheets. 
I have quit trading those alltogether, to me not worth the hassle. 
Once in a blue moon you may find one that is worth the time and effort
to even take a look at.   

True very true---------already burned---like most that took this trade.  This next friday is when they give the dividend in stock and reduce authorized shares.    If all works out on the up and up,  price should recover due to undervaluation.  I'm holding on for this week's action.  I would not suggest anyone else enter this dog, until it clears previous high.

1. Introduction

I received some private messages requesting a complete coverage on IBCX so I took an in depth look at it, as you can read on this article. At first I was skeptical, like anyone else when looking at a Pink Sheets traded stock for the first time, but then I was amazed by what I saw. Over the last few days we actually bought some shares for the 3 Stocks on Fire Portfolio (well, just 1% of capital due to the specific stock liquidity scarcity).

2. Profile

IBAC Corporation is a New York-based holding company operating through its subsidiaries within the Hotel, Food Service & Restaurant industries. IBAC now has operations in Florida, Tennessee & Arkansas. For more information, please visit: www.ibaccorp.com.

3. Technical Analysis
3.1. All history chart



This has been a dormant penny stock since inception, but just over the last month or so, average trading volume surged. Often a sharp increase in trading volume precedes a big advance phase on the share price.

3.2. Short term chart



As you can see on the chart above, the stock rose a lot and then fell back almost to the original point. This was due to confusion over the ex-dividend date for a 25% dividend the company will give to shareholders on record at December the 15th. The company and most shareholders still ignore the NASD rule for dividends equal or higher than 25%, for which you can find information here.

Anyway, technically the stock is at a sweet spot to buy, after the second "valley" of a double bottom formation was built. Now it will probably rise and breakout to a new high above $0.021.

But let's make some fundamental tests before we jump into conclusions.

4. Fundamental Analysis
4.1. Number of shares outstanding

The company recently reduced its number of authorized shares to 350 million, as you can read here: IBAC Corporations Board Approves Reduction in Its Authorized Shares by 150 Million

Since the company will pay the 25% dividend with treasury shares, the maximum number of shares outstanding now can only be 350 million/1.25 = 280 million.

So, the current market cap can't be higher than 280 million*$0.0055 = $1.54 M.

(actually, on the pro forma balance sheet it shows 188,937,483 shares issued and outstanding, so the market cap is probably less)

4.2. Balance Sheet

Most Pink Sheets traded stocks don't publish any balance sheet or income statements, but since IBCX wants to quickly move to the OTCBB, it released pro forma financial statements on October 23rd, which you can also find on the company's website:.



The company's total assets are worth $10.54 M and total stockholders' equity is $7.76 M, yet, the market cap is just $1.54 M. So this company is trading at a small fraction of assets.

Let's check the income statement.

4.3. Income Statement



Revenues for the first 9 months of 2006 were $7.16 M, and the company expects revenues between $10.5 M and $11.5 M for the full fiscal 2006: IBAC Corporation Reports Record October Revenues

Net Income for the first 9 months was $1,070,382 so the net profit margin is 14%. If this margin is maintained in the 4th quarter, the company will show a $1.54 M net income for full 2006, so the earnings multiple is 1

4.4. Recent News

You can check the recent headlines and how the company has been active closing deals lately on Yahoo Finance: IBCX summary

5. General Overview

I'm always suspicious when considering Pink Sheets, but IBCX really looks like an undervalued company forgotten in the Old West. It would need to rise 20 times just to get to fair value, given the numbers and the company's assets.

Just using common sense you obviously see the stock is undervalued, how can a company that owns two hotels, two restaurants, a Country Club & Golf Course and that will show a profit of $1.54 M in 2006 be worth just $1.5 M?

Market inefficiencies like these never last long in the market place, not even in the Pink Sheets market. And since the company is just about to move to the OTCBB market ... I see this stock flying 10 to 20 times very fast.

But I urge you not to buy a significant portion of your trading capital, because liquidity in dollar terms is low and after all, this is a penny stock, so be carefull with the position size.

Good luck