IBCX pumping operation

[David Randolph]

Good morning, I'll use this thread on the Members Corner to write some of the material we'll use on today's pumping operation. I don't know if it will work or not, but I think it will at least be fun

Next I'll post the article that will be published on 3SOF's Penny Stock Picking Board this afternoon shortly after the open.

[David Randolph]

Subject: Full coverage on IBCX

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

[David Randolph]

The message boards to be used for the pump:

- Investors Hub IBCX board

- Raging Bull IBCX Board

- Yahoo Boards (Hotel related): HLT, MAR, HOT and WYN

- Yahoo Boards (Restaurants related): EAT, DRI, MCD, PNRA, SBUX, WEN and YUM

[David Randolph]

Article for the Yahoo Boards:

«Subject: Buy two hotels for 1/20 of price

Hello people ! I'm here to present a fantastic investment opportunity given by a market inefficiency outthere in the market place, but you need to review the information I provide and act on it quickly, because usually these opportunities don't last long in the market, especially when someone speaks loud about them as analysts at www.3stocksonfire.org are doing this morning:

http://www.3stocksonfire.org/trading/index.php?topic=8135.msg80433#msg80433

IBCX is a $1.54 M market cap company with $1.07 M in net income just for the first 9 months of 2006 and more than $10 M in assets. They own two hotels, two restaurants and recently bought a Country Club and Golf Course where they'll build 300 to 400 houses for sale.

You can check all the information on the link I provided or reading the Yahoo Finance's headlines about the company (http://finance.yahoo.com/q?s=IBCX.PK) and the company's website at http://www.ibaccorp.com

Don't buy much in dollar terms because after all this is a penny stock, but for God's sake, buy it or watch it fly 10 to 20 fold without you on board»

[David Randolph]

More pumping texts ... (this can be used at very popular Yahoo boards, like SIRI, AAPL, GOOG, etc)

«Subject: Make 10 times your money this week

If you take ten minutes of your time to review the information I got on IBCX you'll make 10 times your money this week, because everything will happen until December 15.

The company will pay a 25% dividend (http://biz.yahoo.com/bw/061113/20061113005538.html?.v=1) for shareholders on record at December the 18th, but people thought the ex-dividend date was December 1st, because they ignored the NASD rule for dividends of 25% or more: http://www.nasd.com/web/groups/rules_regs/documents/notice_to_members/nasdw_003997.pdf

This kind of inefficiency can only be possible on Pink Sheets trading stocks. But the 25% dividend isn't the best part, as IBCX is a profitable company trading with an earnings multiple of 1, at 1/10 of assets and is about to move to the OTCBB (http://biz.yahoo.com/bw/061128/20061128006032.html?.v=1)

Here you have a full article explaining the situation: http://www.3stocksonfire.org/trading/index.php?topic=8135.msg80433#msg80433

The word is starting to spread now and the stock can be up 100% today alone. Jump on board of IBCX fast !»

[David Randolph]

Another one:

«Subject: I know you won't trust me

As you don't trust Pink Sheets traded stocks, but you know they sometimes rise ten or twenty fold in one week, don't you?

So I'll give you the opportunity to buy one of those before it happens, with all the necessary information on a plate: http://www.3stocksonfire.org/trading/index.php?topic=8135.msg80433#msg80433

If you take 5 or 10 minutes of your time to verify all the links and information I provided you've deserved your money. If not, you're just another skeptical ready to watch IBCX fly without you on board.

I did my part, good luck !»

[David Randolph]

Another one, I need to write several because Yahoo easily detects a pump if the post is always the same on several boards:

«Subject: Santa Claus has a gift for you

Hello, probably you've been a good kid lately, since Santa Claus is banging on your door to give you a big Christmas present:

http://www.3stocksonfire.org/trading/index.php?topic=8135.msg80433#msg80433

It is a full reporting, $1.54 M market cap, $10 M plus assets and $1.5M 2006 net income company giving you a 25% dividend !!!

This company owns two hotels, two restaurants, one country club and golf course (where it plans to build 300 to 400 luxury houses for sale) and the market cap is only $1.54 M !!!

Take your time to check all the information on the link above, but don't take too long, because IBCX will fly 10 to 20 fold within the next few trading days.»

I feel nasty

[tokyopua]

Hi David,

What is the exact link you refer to in the posts below where you say <link>?

[AussieTrader]

Hi David,

What is the exact link you refer to in the posts below where you say <link>?

That'll be the IBCX post David will post just after the open today in the penny stock picking thread for IBCX.

[tokyopua]

Thanks Aussie, got it now.  For reference then it is:

http://www.3stocksonfire.org/trading/index.php?topic=8135.msg80433#msg80433

[AussieTrader]

Here new thread http://www.3stocksonfire.org/trading/index.php?topic=8135.msg80428;boardseen#new

[David Randolph]

We're still sending e-mails, the operation on the other boards will only start about 1 or 2 hours from now ... I'll put those links here when it starts.

Thanks for your help, let's see if this works

[elliemae]

I've pumped on HLT, MAR, HOT, EAT MCD, SBUX, YUM and then yahoo locked me out (childpt1999 is my ID)  Also, pumped on I-HUB and Ragingbull

[David Randolph]

I've pumped on HLT, MAR, HOT, EAT MCD, SBUX, YUM and then yahoo locked me out (childpt1999 is my ID)  Also, pumped on I-HUB and Ragingbull

Lol, easy elliemae ... we know how to pump in a way that Yahoo can't do anything about it. But let's give it some more time, most people still didn't got their e-mail ... We'll need you later, register a new nick at Yahoo, and be carefull, or they can ban the 3stocksonfire.org domain name altogether (well, that's not a problem either, but it would take some time to solve)

[David Randolph]

Ok guys, let's go to elliemae's yahoo posts and put 5 stars in them for a start, thanks