How do I contact seekingalpha?
Someone needs to investigate in this company and the deal with the un-named company!!
Let's go back to the last press in July 30, 2012. The company had a total of 482,252,385. The latest press release says that the company is expected to have 701,904,963 shares. Deduct that it means that they might be issuing about 219,652,578 shares total to this UNNAMED metal company exchanged for their metal product "valued" at 236.4 million FOR A 36.8% Equity Interest. Deducting this interest means we now have a total of 149,404,800.
Divide that to the number of shares. That should give us .68
So, why is the PPS 4x this number?
This isn't justifiable. It's not even CASH they are giving.
Something to think about.
Not quite sure about your math as 220 mm shares for $236mm is over a buck a share any way you slice it, so I am not sure a out your second calc. But, the bottom is that the metal is not worth that amount at current market prices. That is where the scam comes in and that is why you see now real cash involved in this deal.
bluyahu -- you have to deduct the equity interest charge of 36.8% - which means the unnamed company really just paid 149,404,800 of the 219,652,578 additional (unregistered) shares.
Like you, I am in doubt that the metal that was exchanged for this additional shares are even worth that much!!!
And like you, I don't believe that this company should be valued a billion dollars by the market.
Anyway, I doubt if we will know if $NEWL will ever get a profit because the last time they reported any financial forms was last 2011 and that was a 200 million loss.
I reported NEWL to FINRA. Their recent press release was very misleading. A transaction with such materiality needs to have transparency not just in terms of who they are dealing with, but also on how it will affect the stock price, or at least they should have been honest on how much the shares they really sold or exchanged to the "investor".
Clearly this is an accounting scam. That metal ain't worth $260 mm or whatever they said.
The truth will all come out when the company actually obliges the market by reporting some revenue and earnings, if it can even turn a profit. At that time, people will see that with 700 million shares it is worth less than a nickel a share.
In the meantime, the sad part is that even with share count expanding 10x, it is so darn hard to borrow shares to short.
Wrong. You act like this company just came out of its shell and rose from .0001 ,, this is a real company making real deals. Not sure why your comparing this to a scam. Looks like you missed the train, if you haven't, I suggest you take a position now. I contacted the company, huge things in progress as we speak.
Sentiment: Strong Buy