I have been following joebigbuck, truthwantsout, lbcb and other posters since Nov 2013. I have a pretty good sum invested in this stock which I had written off as unrecoverable until last Friday. After the 10K filing, I am having mixed feelings about that investment.
1) It is clear from 10K filing that NYSE halted the trading of this ticker. Why did NYSE halt the trading in Nov 13 ? What are the clarifications NYSE was seeking at that time ?(10K filing cannot be the obvious reason at that time)
2) On Apr 28 2014, notice of delisting was sent. Per this notice, it seems this ticker was in non-compliance of listing requirements. By filing 10K, did Fab clear the condition of non-compliance ? And is therefore in same state as Apr 27 2014 ? (Continue to be halted pending answers but out of the threat of non-compliance ?)
3) Will the July 16 meeting be limited to 10K filing and non-compliance, or will NYSE listing requirements team ask for answers to the questions posed in Nov 2013's list of questions ?
4) If July 16 meeting was solely to satisfy and answer questions from NYSE listing requirements team, would it not be null and void by Fab's act of filing 10K ? In such a case, why did Fab mention the date of the meeting in 10K itself ?
Have been thinking of various likely scenarios this ticker might end up in:
1) After July 16 meeting, NYSE listing requirements committee reviews Fab's responses, feels comfortable about 10K filing, is still waiting for answers to original list of questions (pending completion of Internal investigation by Loeb & Loeb/FTI) and grants Fab more time to complete the same.
2) July 16 meeting does not happen since Fab is in compliance of trading requirements. But NYSE Listing requirements team and Fab exchange communication regarding status of internal investigation and status quo continues w.r.t trading. Fab may end up issuing a press release informing public that it is in compliance now w.r.t listing requirements.
"1) It is clear from 10K filing that NYSE halted the trading of this ticker. Why did NYSE halt the trading in Nov 13 ? What are the clarifications NYSE was seeking at that time ?(10K filing cannot be the obvious reason at that time)."
They wanted to know about the bond. Clearly FAB's SEC did not reflect it, yet the evidence was overwhelming that it existed. FAB needed to get that cleared up. Restating their 10Q and filing their 10K with the bond in it may satisfy the NYSE, but at this point I think even FAB wants the independent investigation results to come out before it begins trading.
"2) On Apr 28 2014, notice of delisting was sent. Per this notice, it seems this ticker was in non-compliance of listing requirements. By filing 10K, did Fab clear the condition of non-compliance ? And is therefore in same state as Apr 27 2014 ? (Continue to be halted pending answers but out of the threat of non-compliance ?).
Yes, it's clear the reason for the non-compliance was their 10K was not filed. The NYSE could have given them a 6 month or more delay to file, but they wanted an unqualified opinion letter from FAB's auditor before granting that extension. FAB's previous auditor would not provide that, hence the delisting notice.
3) Will the July 16 meeting be limited to 10K filing and non-compliance, or will NYSE listing requirements team ask for answers to the questions posed in Nov 2013's list of questions ? The issue before the committee is FAB's listing status, not trading status. Since FAB is now in full compliance, I would be surprised if the meeting was even held at this point. They still may want to know the status of Q1's numbers, but I seriously doubt that will be much of an issue. I expect those numbers to come out with a few weeks.
FAB will announce the results of the meeting, they have to at this point. It's material.
The filing of the 10K answered so many questions but leaves one still outstanding...when will it start trading again?
=Since FAB is now in full compliance, I would be surprised if the meeting was even held at this point.
Nonsense. You know better than that, Joe. They are currently delinquent in their Q1 2014 filing. They are also out of compliance in having proper internal controls in place. Yes, that is a corporate governance REQUIREMENT to be on a regulated exchange. They have clearly stated in their amended filings from last year and the most recent 10-K that they are non-compliant in this requirement of effective internal controls. The NYSE may delist them solely for this reason. Catching up on things, but remind me to look up the company that was recently delisted that was current with filings but stated, like FAB, that their internal controls were not effective.
=The filing of the 10K answered so many questions
It did not successfully defend against ONE SINGLE ALLEGATION from November of 2013. They removed all language that was used to file the complaints in civil court. How can you in good faith say they answered so many questions when it just raised new ones. Is Zhang in agreement with his shares not being issued? Why wasn't the building deposit returned after so many months after they terminated their interest and asked for the return? How come they don't give a deployed kiosk count anymore?
Unbelievable you deceive others by saying they are in full compliance when you know this to be false.
You raise some good questions for sure. I will let the others start with replies. I will mention a few things. I tend to think the 2014 Q1 report will come out in the next week or so followed by the Internal Investigation status report around the time of the 7/16 hearing. I tend to think the hearing will go forward and FAB will brief the NYSE on the status of the report. Staying on the NYSE is not a certainty, but I predict if the Internal Investigation report findings work' to FAB's advantage that FAB's appeal of the delisting will be accepted and trading will start within a week.
"I have over 12k @ $3.07 I don't believe I will see a dime of it. Jon Carnes, Spencer. Jim Rogers all belong behind bars."
I'll give you a dime a share right know, no questions asked.
Amazing some here would think for even a moment that Carnes is a superior investor to Rogers.
My opinion is Carnes is a scam artist and thief looking to con investors out of money. He's not the only one playing the game, but it won't go on forever. At some point investors will grow tried of the short term trading scams.
I am sorry about your loss. Based on what I know, Carnes is the only one of the three that I'd like to see behind bars. But new facts may come out. I think Zhang has some answering to do, but he may have his reasons.
3) After July 16 meeting, NYSE listing requirements team decides that 10K filing in and by itself does not answer majority of questions it has. Hence gives a limited time duration to complete the investigation failing which delisting would continue.
4) No matter what, NYSE has already made up its mind to delist this ticker and before July 16, we may end up seeing the delisting notice officially published.
Question to critical thinkers: Which of the above scenarios is likely ? And why ?
It is significant that FAB's delisting by NYSE is based on a particular passage relating to the requirement to timely file a 10-K, etc.. So I think Joe is justified in saying the NYSE hearing may be called off and FAB's delisting notice rescinded. However, I think the hearing will go forward, since it's scheduled, and FAB needs to present its arguments and brief on the Internal Investigation, etc.
To me neither of these two scenarios have much of a chance of happening, but #3 more than #4. I tend to think worst case scenario for FAB is their appeal falls on deaf ears and a delisting notice is is posted within a week of the hearing. However, I tend to think FAB's appeal will be accepted based on the filed 10-K and the corrective actions to be implemented from the Internal Investigation report.