Buying 1% in a Pink: IBCX

[elliemae]

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.

[David Randolph]

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.

[David Randolph]

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.

[tokyopua]

ICBX finally showing some signs of life, trading up 25% at .0075.  Maybe the pumping operation effects are starting to kick in 

[elliemae]

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

[David Randolph]

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.

[tocitygirl]

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.

[elliemae]

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

[elliemae]

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.

[tokyopua]

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.

[David Randolph]

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

Is 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).

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

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 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

[David Randolph]

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).

[David Randolph]

Now rebounding, there's no safety in numbers, or in watching the ticker. Good luck, I'm going for a walk.

[elliemae]

He sold for a small loss and a BIG lesson!  I think the lesson was worth the loss.  Thanks for all you do David

[David Randolph]

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
Business Wire (Thu, Nov 2)

Their English seems as bad as mine

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. 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 !