[PLNI]: Excellent Summary of Current Situation at Plasticon
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Excellent summary of the current situation at PLNI by the poster StockHunter on the Allstocks.com message board:
http://www.allstocks.com/stockmessageboard/cgi-bin/ultimatebb.cgi?ubb=get_topic;f=8;t=015636;p=78
StockHunter
Member
posted anuary 03, 2006 20:04
The stock will run if they stop selling shares. VFIN stepped back in final hour and let it run. VFIN sold a lot of shares in December too. It would be prudent to assume the float that pinksheets lists at 690 million is really much higher -- too many shares sold by VFIN recently and WDCO back in sept/oct to account for this number. Not to mention the relatively meager moves for a 20% of float daily volume.
As for the "retired" shares, that is a meaningless pump by the company. They put that PR out in August when they claimed they had 2.0 billion a/s. In reality they had 3.0 billion plus 100 million preferred then. They increased the a/s to 5.0 billion in October as well, plus the float went up. Its just spin.
The talk of buyback has been going on forever and is also spin, IMO, covered by Safe Harbor. You don't increase your a/s, o/s and borrow to buy another company if you have cash on hand to buy back shares. They also issued 10s of millions to 100s of millions in shares to promote buying interest in their stock (through Green Baron, Big Apple, Steve Crowley's radio show, MicroCap conferences, and others). Why dilute to promote your stock (not your products) when you intend to buy back shares? Add to that the shares pledged from the bankruptcy that is yet to be discharged and its hard to imagine they'll be buying back shares. More likely they still have a lot more dilution to go.
If they're smart, they will fade on selling shares and let a chart rally build more buying pressure. We can see from the volume there is definately a lot of demand. The higher it goes, the fewer shares they need to sell and everyone benefits.
Posts: 302 From: California Registered: May 2005 IP: Logged
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StockHunter
Member
posted January 03, 2006 20:52
The PR has brought in a lot of new faces to the board. I just want to point out there are as many questions as answers with the structure and prospects for this company. We know they have an exciting product and a distribution network capable of moving them out of obscurity to becoming a significant entity. We don’t know what the capital structure of the company will look like if and when they show the audit and become more transparent.
The SI board has some very good DD and raises interesting and critical questions the company needs to address. One of their posters, Jeffrey S. Mitchell, has gone through Turek’s bankruptcy papers and Telco Blue’s previous filings and posted some interesting info. For instance, Bluelinx and Georgia Pacific have won garnishments of over $1 million dollars from Wicklund/Plasticon. How those garnishments came about and how they'll affect the profits and cash flow from sales of rebar supports needs to be addressed (hello, Rodney, here’s a question for Mr. T…)
Mr. Turek has also lent moneys between his various entities and later forgiven those loans (see Telco Blue 10Q filings for 2004 and 2005). He’s also had some interesting takeovers involving transfers between his entities. Just this past September Plasticon forgave a quarter million dollar loan it made to Telco Blue(a shell Turek controls). As a shareholder, that loan they forgave was your money and there is little to legally prevent them from doing this again in silence. The numbers for 2004 were much larger. There is a pattern of behaviour here.
I would suggest anyone wanting some good, hard to find DD, go through that SI thread and read Jeffrey Mitchell's posts. His posts are very professional and straighforward (he writes like a lawyer) and I trust that his sources and quotes are accurate. I've confirmed his info from the public documents, but I haven't paid for the bankruptcy info (you can get it from PACER for a price) so cannot speak to its accuracy.
http://www.siliconinvestor.com/readmsg.aspx?msgid=22020393
When calling Rodney it might be a good idea to ask about these issues. I doubt he’ll provide any answers now, but he could let JT know these issues need to be addressed.
Posts: 302 From: California Registered: May 2005 IP: Logged
_____________________________________________________
.
Excellent summary of the current situation at PLNI by the poster StockHunter on the Allstocks.com message board:
http://www.allstocks.com/stockmessageboard/cgi-bin/ultimatebb.cgi?ubb=get_topic;f=8;t=015636;p=78
StockHunter
Member
posted anuary 03, 2006 20:04
The stock will run if they stop selling shares. VFIN stepped back in final hour and let it run. VFIN sold a lot of shares in December too. It would be prudent to assume the float that pinksheets lists at 690 million is really much higher -- too many shares sold by VFIN recently and WDCO back in sept/oct to account for this number. Not to mention the relatively meager moves for a 20% of float daily volume.
As for the "retired" shares, that is a meaningless pump by the company. They put that PR out in August when they claimed they had 2.0 billion a/s. In reality they had 3.0 billion plus 100 million preferred then. They increased the a/s to 5.0 billion in October as well, plus the float went up. Its just spin.
The talk of buyback has been going on forever and is also spin, IMO, covered by Safe Harbor. You don't increase your a/s, o/s and borrow to buy another company if you have cash on hand to buy back shares. They also issued 10s of millions to 100s of millions in shares to promote buying interest in their stock (through Green Baron, Big Apple, Steve Crowley's radio show, MicroCap conferences, and others). Why dilute to promote your stock (not your products) when you intend to buy back shares? Add to that the shares pledged from the bankruptcy that is yet to be discharged and its hard to imagine they'll be buying back shares. More likely they still have a lot more dilution to go.
If they're smart, they will fade on selling shares and let a chart rally build more buying pressure. We can see from the volume there is definately a lot of demand. The higher it goes, the fewer shares they need to sell and everyone benefits.
Posts: 302 From: California Registered: May 2005 IP: Logged
=======================================================
StockHunter
Member
posted January 03, 2006 20:52
The PR has brought in a lot of new faces to the board. I just want to point out there are as many questions as answers with the structure and prospects for this company. We know they have an exciting product and a distribution network capable of moving them out of obscurity to becoming a significant entity. We don’t know what the capital structure of the company will look like if and when they show the audit and become more transparent.
The SI board has some very good DD and raises interesting and critical questions the company needs to address. One of their posters, Jeffrey S. Mitchell, has gone through Turek’s bankruptcy papers and Telco Blue’s previous filings and posted some interesting info. For instance, Bluelinx and Georgia Pacific have won garnishments of over $1 million dollars from Wicklund/Plasticon. How those garnishments came about and how they'll affect the profits and cash flow from sales of rebar supports needs to be addressed (hello, Rodney, here’s a question for Mr. T…)
Mr. Turek has also lent moneys between his various entities and later forgiven those loans (see Telco Blue 10Q filings for 2004 and 2005). He’s also had some interesting takeovers involving transfers between his entities. Just this past September Plasticon forgave a quarter million dollar loan it made to Telco Blue(a shell Turek controls). As a shareholder, that loan they forgave was your money and there is little to legally prevent them from doing this again in silence. The numbers for 2004 were much larger. There is a pattern of behaviour here.
I would suggest anyone wanting some good, hard to find DD, go through that SI thread and read Jeffrey Mitchell's posts. His posts are very professional and straighforward (he writes like a lawyer) and I trust that his sources and quotes are accurate. I've confirmed his info from the public documents, but I haven't paid for the bankruptcy info (you can get it from PACER for a price) so cannot speak to its accuracy.
http://www.siliconinvestor.com/readmsg.aspx?msgid=22020393
When calling Rodney it might be a good idea to ask about these issues. I doubt he’ll provide any answers now, but he could let JT know these issues need to be addressed.
Posts: 302 From: California Registered: May 2005 IP: Logged
_____________________________________________________
posted by the_worm06 | 1/03/2006 07:22:00 PM
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