Baltbear on Finance markets are like marshmallows

in a recent discussion about outstanding shares, authorised shares, and the point of re-allocating shareholder interest per share–which is either reduce it by increasing the number of shares–a “split”
or increasing it by reducing the number of shares - a “reverse split”-some classically amateur newbies suggested that “reverse splits are bad” or …. not much of anything else.
finally some body noted:

:”dont have a sellable product yet, why would they want to be listed?

They clearly dont care too much about the average investor, but a resverse split would tank this stock, ”

well…yes. corporations do >>not<< “get listed” because they have sellable product, or have some deep seated desire to care about other than themselves.

corporations do a “public offering” because they have a desire to get capital.

it is quite possible to get blue-sky’d on the premise that u are nothing but blue sky.
(which, btw, is the porigin of the term for doing some sort of filing–show that u are offering something other than the blue skys of kansas.)

“going public” is a broad area, defined by “how public??”

all over the world are mkt places where people who concern themselves with these pieces of paper and the putative wish list and blue sky they represent meet one way or another to “exchange” the pieces of paper –or database entries changing which name is associated with a piece of paper. to be considered as a reasonable candidate to be entered into the database –”get listed” –a corporation needs to meet certain standards unique to that mktplace, the exchange.
:”why would they want to be listed?”
did u ever wonder what that funny .ob (which back in the day was :obb) >>>>means<<<< ????
it means its “listed” on a list of ..lists.
certain lists have certain requirements.
it isn;t the list that comes and goes, its the criteris meeting that changes.
nyse–>amex–>pink
nasd.nm–>nasd.sc–>nasd.ob–> pink.

and actuallllllly… pink is a national exchange, and there are levels below it.

if “pink sheet” doesn;t sound like a wildly old time valid national exchange, ur probably unaware that until ruffly the 70’s and the majjjor ag rollups, “equity” was traded pink,
“beef” green, and if a swiss cheese memory serves, the reange live hogs to smoked bacon was traded in the blue sheet.

thus, when somebody says–like btim did a year or so ago–that it’s business plan was focussed on “moving from .ob to amex” it was only saying it wanted a beter chjance to get other people’s money.
when adls.ob contemplates a reverse split, it is doing the same.

since neither ticker could go anywhere without opm, the issue is not “moving up” or “getting ready to be sluaghtered” it is, in reality, what is mgt gonna do with the opm????

btim said,. …well, be us..cuase we are all that and a bag of stem cells.
adls.ob appears to my eyes to be saying get thru a previously approved fda protocol and place product.

both tickers face about the same amount of obstacle to get to $20mm gross…
btim has cash on hand, adls,. zilch.
btim tradeds 100x higher than adls.

2+ years ago btim had less cash than adls does now.

for maybe $2k loose chanhge (laws of a baltbear: risk tolerance has metricks) you can bet on either.

the ball has landed on btim like 12x in a row; hasn’t landed on adls more than 2x in its lifetime.

when somebody tells you “reverse split is bad” what they are referring to is the history of people falsely assoicatiing names and numbers “goog is a $500 stock selling at $460, i must buy it” “xyzd is a $2 stock selling at 10..im ust sell it”

if nobody has evvver heard of the puppy, they cannot think this way…

if serious and scummy $ know that something –like bpur–is bogus, they just keep hitting it, at any price…aiming @ 0.

fd: clients in adls;
fd; clients have paid me top keep them out of btim–with $ they paid me to keep them from believing that $1800 gold would happen in 2010.

does your advisor charge u just for holding ur $$???

i charge mine for clarifying the stories they hear elsewhere.
it’s their $$–and they can hold their own wallets.

Posted under business

somebody asked “what is a whore stock?” and offered that they had never heard the term…
“back in the day” (not the day when in order to “reform equities trading” by inventing the sec, the deal required the worst abuser, black jack kennedy, to be the sec chief) (not back in the day when tino deangelis cornered the world supply of soy bean oil–only it was water–and created warren buffet’s empire’s starting growth) (not back in the day when somebody noticed it took six bits to process an exchange, so charging $39 instead of $100 was still a monster ripoff) (not back in the day when somebody else said, if we make a mkt inhouse we can fill for $9.95, and clip 1/64 off both sides of every trade–or not fill) when aol im and yhoo i-chat plugin and mirc and icq were used to create cartels and data pools–an idea i keep seeing people thinking they can invent >>now<< in their hubris and self-proclaimed “investor” status–there was a guy styled “tokyo mex.”
a courteous enuff review of tokyo, leaving out evvver so much of amusement value, may be found here:
http://www.angelfire.com/ca5/SonyinCANADA/webpicker.htm

:”JANUARY 6, 2000

NEWS FLASH
Is It Sayonara for Web Stock-Picker “Tokyo Joe”? The SEC says the influential day trader used his site as a front for various illegal activities

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After months of fretting about the subculture of investment chat rooms, the Securities & Exchange Commission on Jan. 5 sued one of the Web’s best-known stock-picking gurus, “Tokyo Joe.” The SEC is asking a federal judge in Chicago to shut down “Tokyo Joe’s” Societe Anonyme, a Web- and e-mail stock-alert network run by Yun Soo Oh Park of New York. The securities cops say Park defrauded his subscribers and misrepresented his own performance as a day trader. Park’s attorney says he will fight the charges.

Park took on the noms de Web “Tokyo Mex” and “Tokyo Joe” in 1997, when he was one of the most active stock-tip posters on such investment bulletin boards as Silicon Investor and Raging Bull. Stories in the press featured him as a spokesman and symbol of the Net’s adrenaline-charged world of rumor-driven chat rooms, day trading, and stock tips. By mid-1998, Park had set up his own Web site, TokyoJoe’s, and launched Societe Anonyme. Last September, Time magazine’s Time Digital online edition cited him as “one of the country’s most influential stock-pickers.”

“SCALPING.”   Although he hiked his membership fees from $29 to $200 a month, Park eventually enrolled 3,800 subscribers, according to the SEC. From July, 1998, through June, 1999, the SEC says, Park collected $1.1 million in fees for e-mailed stock picks and access to his members-only Web pages and chat rooms. One mark of Park’s influence: Web sites where he didn’t post his picks set up windows where their subscribers could follow the TokyoJoe chat on Silicon Investor.”

in reality about 7 a.m. manhattan time, mex would be in multiple mirc equities rooms gathering and disseminating data, creating the early vol that he would later use as part of his technical analysis.

in on some bedraggled shell company fraud chasing immortality or instant communication, or lifestyle premiums, in @ maybe 1/64 as part of fees for helping the wheeling-dealing, so that selling @ 1/16 was a home run, tokyo would announce privately that he was “analysing” dogg.ob. the mirc guys would buy, @1/16 on the open from mm’s seeing it coming, moving the shares they got @ 1/128 for the 1502c.  the mirc traders then sold to those getting the “sa” alerts, who would (in theory) sell to the si or raging bull readers….who would get slaughtered.

it was tokyo who coined the term “whore stock”–a ticker u might spend 15 minutes with if things were going that way, but never invite back to ur portfolio, and totalllly never introduce to ur retirement.

since one of laws of a baltbear–viking’d from peter lynch–is “if u wouldn’t own it for 10 years, don’t own it for 10 minutes” when i use the term i am shifting the valuations.

the corollary is this: if you wouldn’t pay to own it for 10 years, then pay 0.
there are 2 ways to pay 0: don’t touch it,  or …trade to a 0 basis.
if ur trading, make the nut.
if ur a prudent speculator, make the nut, make ur necessary apr, and/or have shares @ 0 left over.

something so-called “investors” almost alllways fail to realise is that there is no inherent relationship
between risk&reward.
just as they fail to realise there is no inherent relationship between goods&services and the attributible earnings to common.
just as trhere is no relationship between potential “social value” of i/p, and the desire of mgt to send $$ out to those who bought from the investors.

once that is understood, then, there can be quite a few pretty girls at the bar, and the night may be young.
to goto the concrete, adls.ob put out a press release today indicating that if a proposed fed solution to a federally perceived problem evver creates another tranche of corporate welfare, adls already has its medicaid card in hand, and is going to go stand in line.

is that an “event”??? nope. and given adls.ob behaviour over the past couple months, it’s not even news.
it’s an oddly dressed chick trying to flag down cars to “borrow a cigarette.”

fd: clients in adls.ob.

Posted under business

Advanced Life Sciences Holdings, Inc., that is to say, adls.ob–cause who really cares
what some puppy is called, the issue is what’s the ticker?–hit yesterday for the “whore stock”
portfolio. Client’s entry points? $0.055. In my voodoo that’s 1/100 of 5 1/2…or, perhaps, 1/10 of 9/16.
why mention that conversion? laws of a baltbear:” how do you make $$ on true “penny” stocks? u buys lottsa it.”

note that this entry price is wellll above the 52 week low…for reasons tba in this post…

here’s the story: pneumonia is still a major killer in the usa, and will be getting more that way as the idiots of the health care industry help more and stronger drug resistent versions of strep to evolve, kind of like the way stem cell ceos create evolutionary pressure favoring due diligence.

adls.ob claims, in a way the fda finds plausible to talk about, to have a 1x a day pill that slams into all these hard-guy germs. it says it has its ducks in a row to the point it can ask for fast track status for the investigation, etc.

the next “vaccine scare” that floats across the usa will loft this puppy like lbj with a beagle…regardless of the realitys involved. thus..a whore stock.

here’s why the story matters: like all these puppies, the books were a disaster; hence the fall from the last vaccine scare being like from 13/16 to 1/16. debt all over the place, no $ in the treasury, etc…
but, like isco.ob, some actual cash finds cred in the story. that includes the ceo/chief scientist. after a d/e swap, and a fair sized tranche, adls.ob is back in the hunt.  thus, never mind  if adls.ob has a cure for the nation’s worst epeidemic–dd failure–if there can never be entrance into the mkt place, and can never be attribution to common.

the target range for the prudent speculator is—as always–20% roi + shares cheaper than insiders to
30% roi, to 20% roi plus share at 0. that’s a narrow range here, because the current meaningful insider price is $0.022. and the puppy is sitting at 0.060…

this is thus a play money whore stock. ..with possible huge upside.

thru it’s own merits in execution of biz plan, combined with the inevitable next “plague stock rally”, 1 is doable. if i were advising adls.ob i’d be looking to move a large tranche @ 5/8ish at such a time…
and that’s a trip to 10bag city arizona for those who ignore whatever pump&bucket house that will work the deal.

i am neither recommending, nor not recommending adls.ob.

if this puppy looks good to you with ur own dd, well…there it is.

and again, fd: clients in adls.ob.

Posted under business