If you have been around microcap stocks for a while, you will note that everyone blames “the shorts.” Read this from one resident expert:
CLICK HERE TO SEE THE EMAIL IN ALL ITS GLORY AS A PDF
Premiere Publishing Group, Inc
OTCBB: PPBL
Readers!!
WE HAVE AN OPPORTUNITY AS A GROUP TO WIN AGAINST A GROUP OF FRAUDULENT MANIPULATORS THAT HAVE BEEN CAUGHT IN THE ACT
IF ANNOUNCED PUBLICLY AS PER TDW CANADA
I FULLY EXPECT PPBL TO MAKE SOME SERIOUS NOISE THIS WEEK!!
“The reorg office said THEY HAVE CAUGHT THE CULPRITS… and will be announced shortly from what i understand!”
Everyone heads up. I made a serious section about the SHORT Market Manipulation…… (blah, blah, blah)….
When you look at that email, you are really looking at a whole lot of emails from so many in the microcap industry. Essentially, they all blame “shorts.” Why is the share price not holding up? It is the fault of the shorts. Why are their no bids supporting the price? It’s the shorts. Why can’t the company get any real following? It’s the shorts.
The real reason they blame shorts is they are dealing in stocks that just have no real market. Let’s analyze his PPBL (or as he called it last week, PPBLE – It had an “E” for late filing).
Week of… / Close $$$ / Volume Traded / Week of Volume
12/1/2006 0.45 37,800 84,000
12/8/2006 0.46 10,322 22,440
12/15/2006 0.46 43,594 94,770
12/22/2006 0.42 47,775 113,750
12/29/2006 0.37 23,961 64,760
1/5/2007 0.4 20,380 50,950
1/12/2007 0.36 39,182 108,840
1/19/2007 0.3 18,225 60,750
1/26/2007 0.29 21,979 75,790
2/2/2007 0.3 22,974 76,580
2/9/2007 0.26 20,303 78,090
2/16/2007 0.26 50,138 192,840
2/23/2007 0.25 7,065 28,260
3/2/2007 0.17 60,360 355,060
3/9/2007 0.195 42,204 216,430
3/16/2007 0.29 108,187 373,060
3/23/2007 0.2 97,406 487,030
3/30/2007 0.41 163,176 397,990
4/6/2007 0.3 147,996 493,320
4/13/2007 0.3 103,224 344,080
4/20/2007 0.215 64,388 299,480
4/27/2007 0.2 61,634 308,170
5/4/2007 0.25 77,683 310,730
5/11/2007 0.23 41,747 181,510
5/18/2007 0.22 44,546 202,480
5/25/2007 0.16 124,846 780,290
6/1/2007 0.1 53,540 535,400
6/8/2007 0.085 149,526 1,759,130
Why did this one fall from the mid twenty cent range in May to the less than ten cent range most lately?
A late filing in its financials. That is a solid reason. Do stocks typically rebound when there is a late filing? My experience says, not typically. Let’s read from the latest report on the company as filed with the SEC:
“The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has incurred a net loss for the three months ended March 31, 2007 in the amount of $528,766 and as of March 31, 2007 had a working capital deficit of $1,349,409 and an accumulated deficit of $6,141,649. These conditions raise substantial doubt as to the Company’s ability to continue as a going concern. These financial statements do not include any adjustments that might result from the outcome of this uncertainty. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.”
“The Company’s ability to continue in business is dependent upon obtaining sufficient financing or attaining profitable operations. The Company believes that it can raise additional funds through the exercise of its outstanding warrants and through short-term borrowing or the additional sale of its debt or equity securities. There is no assurance that the Company will be successful in raising this additional capital or in achieving profitable operations. These consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.”
While it is totally true that “going concern” language is fairly standard, what is not standard are the numbers. Look at the losses. Look at how they are planning to deal with the losses. Massive losses that are to be covered with additional shares and additional debt. Or through the exercise of warrants. All of this is diluting and undermining to the share price.
Could it be these “mythical shorters” are actually people that have see the inevitable and truly believe that this company is in serious trouble. Compare it to a year ago, and we are dealing with a far more serious situation from my estimate.
All of these cries of “shorter” are mostly much to do about something, that something being a fundamental problem with the company.
So the next time you hear about problems with shorters, take a look at the company being spoke of.
While I generally believe they simply do not exist to a significant factor there are certainly some out there. I just do not believe that most cries of shorter are real. Mostly it is a problem with the underlying stock!