Ticking Time Bomb Or Sound Investments? (LBAS) (MXFD) (FOUR) and More
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After a successful short on AMED, CitronResearch followed up with a not-so-common OTCBB stock FOUR.OB. So I went back through some of the old under the radar stocks that were nearing new 52 week highs and noticed a few things, which made me curious as to whether or not the individuals behind FOUR were also linked with PSPW and BWMS? Or was it just a conicidence?
FOUR had a few comments about the recent “attack” against the company HERE.
Here’s a recent article by Forbes regarding PSPW as well.
BWMS.OB
And that leads me to two more, MXFD finally cooled it’s jets, now I’m curious of LBAS is a ticking time bomb, what are your thoughts?
MXFD.OB
LBAS.OB
Tags: BWMS, BWMS.OB, FOUR, FOUR.OB, LBAS, LBAS.OB, MXFD, MXFD.OB, PSPW, PSPW.OB
August 19th, 2008 at 6:16 pm
I think the decline is overdone. I mean, its not like FOUR is a pink sheets companies with no filings. Everything has been on the table (on EDGAR) since day 1, as FOUR is a reporting entity. Sure, the some of their financiers are a bit obscure, but many companies well known and bigger capiailized have off balance sheet arrangements and are incorporated off shore beyond the prying eyes of regulators. The move up was definitely overdone however but the move down is equally overdone. The $40M dollar contract they announced means FOUR no longer is a company without revenues, as Citron reported.
The PSPW and BWMS have simply gone lower because they are run by the same people whi run FOUR. Citron really did a hose job on them. Is it true?? Well, I guarentee you MANY 1B market cap companies could be presented in a similar negative light if you really wanted to dig deep.
August 19th, 2008 at 6:46 pm
FOUR looks good if you look back a blog, a nice pick up around $1.40 i think it’all squeeze back towards $2-3 before it tappers back off again towards lows, similar to RRPH and BDYT all of which had a big bounce and then had a slow death…
August 19th, 2008 at 6:48 pm
Just for a bounce, nothing more, I don’t think the decline is over done… maybe now its fairly valued, or probably still over valued but as with most it all depends on the money behind it and where the float is held…. as long as the float remains tightly held/re accumulated to positions prior to the drop it should do fine..
August 19th, 2008 at 7:34 pm
The more I read the Citron report (4 times now), the more I think the selling is overdone. I’m just talking fundamentals here. For example:
Citron: “So, what the company would like us to believe is that there is a major security and satellite company who is using the NASDAQ to validate themselves and raise funds. They are owned by secretive Middle Eastern investors who are funded by Swiss Bank Accounts and unknown entities from the Isle of Man……not a real comforting tale.”
Seems to me the fact the backers don’t want to be revealed (secretive ME investors) don’t seem all that unusual. Being funded by Swiss bank accounts likewise seems pretty standard as far as business practices go. First of, Swiss accounts are tax shelters and may be able to better service the funding from a more respected banking center. How is the Isle of Man thing that unusual either? Its probably usued because its just another tax haven offshore. If the backers were Americans and they were going through these channels, it might be more dubious. But as long as the company IS getting funding, whats the difference if it comes from a tax haven or not, especially if its coming from the Middle East?
Citron: Now Lets Us Look at the truth on 4C Controls
1. As of last filing 4C Controls has $25K in the bank
2. Company revenues are 0
3. New York City address is nothing more than a mail drop
4. The company currently has 0 operating products
5. Rudana has 3 operating shells (including 4C) that all have this mysterious funding from Arimathea.
Again, this is not that unusual for a company in startup stages of development. If memory serves, they were really just put together as a viable entity in March 2008. this is the dossier for 1000’s of other OTC/Biotech/startup tech companies. The real question is: Can the company be believed that its goal for $100M in revenue for 2009 will materialize?
They just announced a $40M+ contract on money. I guess the company has revenues now!
Anyway, the old expression is that pigs get fat and hogs get slaughtered. I find it almost impossible that any MM or retail investor would be shorting this thing here UNLESS the company is actually a fraud. But I would need to see more than what was presented to come to that conclusion, especially when there major partner BQT Satellites trades on the Australian Stock exchange. It would have to be quite a caper with quite alot of people. Furthermore, you would think with all these Middle Eastern players with FAT pockets, if they know the company to be legitimate they could come in scooping a bunch of cheap shares at any point.
August 19th, 2008 at 9:00 pm
Oh I agree I don’t think their shorting here, more so covering, that’s why I was long at $1.40.. I think there is upside just a small squeeze until the shorts are gone and the volume dries, once the volume dries there’s no interest for shorts.. so they move on.. .but doesn’t mean the stock goes up after they leave
August 19th, 2008 at 10:49 pm
You were long. So you arn’t anymore? Do you plan on long reentry?
August 19th, 2008 at 11:14 pm
I am… I traded it some on the way up towrads $1.70 and it held $1.50 as I had hope, and had a strong close… this may squeeze right out of the open, if it doesn’t I won’t be a shareholder any longer…
August 20th, 2008 at 1:34 am
[…] « Ticking Time Bomb Or Soun… […]
August 20th, 2008 at 2:11 pm
[…] nearly a double who followed in at $1.40 level yesterday right HERE! Congrats to all those who […]
August 20th, 2008 at 2:32 pm
[…] LBAS feeling some of the raft from the recent FOUR tank, shorters probably liked their chances and kicked this one to the curb, this can still fall … towards $6 but keep in mind the volume, play safe its low volume it can head back up just as quickly - if you missed this one check out yesterdays post. […]
August 20th, 2008 at 4:18 pm
[…] Night expecting $2-$3 HERE. FOUR looks good if you look back a blog, a nice pick up around $1.40 i think it’all squeeze back […]