[PLNI]: A good summary by StockHunter of the Plasticon stock dilution
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http://snipurl.com/lrnb
Author
Topic: PLNI The Next Level...Share Buyback, More to Come
StockHunter
Member
January 20, 2006 12:21 PM
quote:
Originally posted by mbmaid:
http://www.investors.com/corporatenews/nw16.asp
Just found it...it's an ad!
Its an ad. Par for the course.
This company is doing what they always do – market their stock.
Their website markets their stock. Their PRs market their stock. They hire touts like – Green Baron, StockstoFollow.com, Big Apple Consulting, Various Radio Shows, etc... – to maket their stock. The go to Microcap conferences to market their stock. They chat with friendly investors to market their stock. And they pay for ads in Investors Business Daily to mareket their stock. Then, of course, they issue a PR touting their Ad in IBD as if IBD were granting credibility on the content they paid them to print. Every tout they hire comes with a price – dilution. The more they market their stock, the more shares they issue to market those shares. We are not only competing with an ever increasing number of these shares on each rally, but on the shares they sell off of that marketing.
Why do companies market their stock mostly with venues targeted toward penny investors? To sell stock to finance their operations. Every day VFIN sells tens of millions of shares. Where are these shares coming from? Where are the proceeds going? Not hard to figure that out. The one thing we do know is that PLNI is not on the Reg Sho list or Buyinsnet list of stocks with a naked short interest. These are long shares. A careful analysis of the trading shows that they work hand in hand with the PRs and they try to support the stock price by faded their offer or supporting the bid when buying interest dries up. Consistent with a long seller. They sold around one billion shares in the past couple months. A logical analysis points to these shares having originated from Plasticon. The stated float of 690 million is likely more than twice that now.
When looking at where this stock should be valued, one has to consider the massive dilution of shares that has occurred and likely is accellerating over the past months. The company’s statements that they plan a buyback of shares and claim to have retired 200 million shares(aug 24, 2005 PR, Dec 30, 2005 PR) is disingenuous given the fact they have increased the o/s, a/s and float dramatically during this time. Companies that can afford to buy back shares don’t issue shares to touts in an organized campaign to sell 100s of millions more of shares to investors in the open market.
Does this mean the stock can’t go up? Of course not. It does however raise the bar of difficulty for each subsequent rally given the increased number of shares owned at lower average cost.
When will we be rid of VFIN so the stock can trade more freely on the upside? That’s a guessing game since the company has given no guidance on their financing needs or structure. As long as they remain on the pinks they can operate without transparency. They resist every attempt to give out up to date share numbers and reveal the magnitude of the share dilution. To do so would likely inhibit their ability to issue and/or sell more shares. The audit and the OTCBB move would end their ability to keep these numbers secret. IMO, they are unlikely to attempt a move to the OTCBB until they are done selling shares.
The Semco PR repeats what they have been saying for months, that the acquisition is awaiting approval by the SEC. They spin it to sound like it’s a done deal and to get some marketing muscle out of it, but its nothing new. What is disturbing is the lack of an SEC filing. (If someone finds a filing, please share that with the board.) They cannot get approval until they file, and that process takes time. The Semco acquisition is a ways off, IMO.
We’re likely to see considerable retail buying over the next couple weeks as they ramp up this latest marketing effort. The stock will rise as much as they allow based on the number of shares VFIN sells into it, IMO. The more shares VFIN sells and the higher they sell those shares, the sooner we get off the pinks. Our fortunes are tied. The longer this takes, the smaller our stakes become and the less our investment is worth. As always all IMHO. GLTA.
Posts: 345 From: California Registered: May 2005 IP: Logged
___________________________________________________
.
http://snipurl.com/lrnb
Author
Topic: PLNI The Next Level...Share Buyback, More to Come
StockHunter
Member
January 20, 2006 12:21 PM
quote:
Originally posted by mbmaid:
http://www.investors.com/corporatenews/nw16.asp
Just found it...it's an ad!
Its an ad. Par for the course.
This company is doing what they always do – market their stock.
Their website markets their stock. Their PRs market their stock. They hire touts like – Green Baron, StockstoFollow.com, Big Apple Consulting, Various Radio Shows, etc... – to maket their stock. The go to Microcap conferences to market their stock. They chat with friendly investors to market their stock. And they pay for ads in Investors Business Daily to mareket their stock. Then, of course, they issue a PR touting their Ad in IBD as if IBD were granting credibility on the content they paid them to print. Every tout they hire comes with a price – dilution. The more they market their stock, the more shares they issue to market those shares. We are not only competing with an ever increasing number of these shares on each rally, but on the shares they sell off of that marketing.
Why do companies market their stock mostly with venues targeted toward penny investors? To sell stock to finance their operations. Every day VFIN sells tens of millions of shares. Where are these shares coming from? Where are the proceeds going? Not hard to figure that out. The one thing we do know is that PLNI is not on the Reg Sho list or Buyins
When looking at where this stock should be valued, one has to consider the massive dilution of shares that has occurred and likely is accellerating over the past months. The company’s statements that they plan a buyback of shares and claim to have retired 200 million shares(aug 24, 2005 PR, Dec 30, 2005 PR) is disingenuous given the fact they have increased the o/s, a/s and float dramatically during this time. Companies that can afford to buy back shares don’t issue shares to touts in an organized campaign to sell 100s of millions more of shares to investors in the open market.
Does this mean the stock can’t go up? Of course not. It does however raise the bar of difficulty for each subsequent rally given the increased number of shares owned at lower average cost.
When will we be rid of VFIN so the stock can trade more freely on the upside? That’s a guessing game since the company has given no guidance on their financing needs or structure. As long as they remain on the pinks they can operate without transparency. They resist every attempt to give out up to date share numbers and reveal the magnitude of the share dilution. To do so would likely inhibit their ability to issue and/or sell more shares. The audit and the OTCBB move would end their ability to keep these numbers secret. IMO, they are unlikely to attempt a move to the OTCBB until they are done selling shares.
The Semco PR repeats what they have been saying for months, that the acquisition is awaiting approval by the SEC. They spin it to sound like it’s a done deal and to get some marketing muscle out of it, but its nothing new. What is disturbing is the lack of an SEC filing. (If someone finds a filing, please share that with the board.) They cannot get approval until they file, and that process takes time. The Semco acquisition is a ways off, IMO.
We’re likely to see considerable retail buying over the next couple weeks as they ramp up this latest marketing effort. The stock will rise as much as they allow based on the number of shares VFIN sells into it, IMO. The more shares VFIN sells and the higher they sell those shares, the sooner we get off the pinks. Our fortunes are tied. The longer this takes, the smaller our stakes become and the less our investment is worth. As always all IMHO. GLTA.
Posts: 345 From: California Registered: May 2005 IP: Logged
___________________________________________________
posted by the_worm06 | 1/20/2006 10:32:00 AM
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