"my guess would be the CEO and CFO are buying up shares in FABU at a heavy discount"
You guessed wrong. Insiders can't buy or sell stock while in possession of material non-public information. They'd first have to report earnings for FABU, disclose spin-off intentions etc etc.
Rest assured that LibSyn will not be sold for a bargain price.
The company is already aware of the stock manipulation in recent days, as well as forum activity.
"I enjoy yours and realdutch conversations."
Don't believe anything that guy tells you. Just a tip.
Someone is involved in a number of illegal activities.
Including manipulating the stock down to 0.001 on at least two occasions.
What I get form this is that the company may indeed have received a buyout offer.
These small fluctuations are meaningless. Obviously the internet keeps growing relentlessly so your rank goes down automatically.
If the company can get a good price for LibSyn then they will consider it. They are obligated to do so. It is as simple as that. But I wouldn't count on it.
As for the VIE agreements, I didn't really look deep into the past of this company. But the Chinese registered VIE owner can do as he pleases. Close the shops, take the money. Well, he doesn't even have to run and hide. There is a similar sitation going on at NUIN with $150M in cash stuck in the VIE. The bank won't even disclose to the company how much money is in the account because it is registered (legally) to the Chinese CEO. Those FABU assets if there are any left are dead. BANG. Gone. Can't get to it. And we know the Chinese VIE owner in FABU's case is a #$%$ anyway.
LibSyn web traffic rank is 2,703 in the US and 8,155 globally. That means their website has the 2,703rd most visitors per day in the US. Of all websites. That is huge for such a small company. You can look it up if you google Alexa.
They will overhaul the website if it becomes a public company. Everyone will know about it. There will be press releases on there, SEC filings etc. Surely, OTC will be tough, but we will most certainly get a few buyers with so many visitors.
Sell the company to whom? Where is the fun in that? Who is going to run it? Surely they can do much better than sell it for a bargain. That is why I am here. That is why I am a bloody shareholder. The people who don't believe in the company can take a hike.
Regarding the SEC, they basically screwed us with the VIE agreements. Because the agreements have no legal merit in China. That's why you can't get any money out. That's why the people in China can keep it for themselves. Legally, according to Chinese law, they own that money, not the shareholders. US law says differently but that hardly helps us, does it?
I think we are done.
"Why not just distribute the Libsyn shares (no S-1 needed) and then immediately sell clean Libsyn to a third party?"
It isn't hard to understand. Nobody wants a piece of it unless it has a separate listing, preferably on a senior exchange. I mean, they can buy a piece of it now... Perhaps you can get book value for it, if you do an equity sale, but you will never get anything close to fair value.
They may be quiet now, but trust me, they will pump this one sky high after they get approval. You should check out the webtraffic of LibSyn, or the number of subscriptons etc. It's pretty impressive.
So, we are trading at a P/E of 1 now. What's possible on OTC? 5,10, 20? Only the future will tell. But a company with this growth rate can trade up to a P/E of 50 or 100 and still not be overvalued.
Why am I even telling you this? You should know all this. The biggest and only risk right now, is the SEC. And guess what, they are doing it to us again.
They have to cut all ties with FABU. It's a known scam, at least the China part. It will always reflect badly on the company as a whole (especially with a VIE), which includes LibSyn. I'm not sure what else you had in mind. This is it, IMO.
Surely, trading on OTC will be a bit of a problem. Maybe. But LibSyn is a pretty impressive company from a growth prespective. After they cut all ties, anything is possible. They don't need to raise cash. Perhaps they will pay a dividend. Or uplist one day.
What is good for the CEO/CFO is good for us and vice versa. I'm not sure what moves these people. But if it were me, I would like to see LibSyn get the respect it deserves. And make some money in the process of course.
I looked into the trading activity of directors in the past. And all I could see were shares that were sold using a trading plan. That's not illegal. They do it all the time at Netflix. I would have done the same because the company was overvalued a few years ago.
Many people made mistakes, doing business in China. In hindsight...
"you don't need an S-1 in order to distribute shares of a sub to your stockholders"
They are not just distributing shares. LibSyn is to become a separate entity, with its own stock and listing etc. So they need a prospectus, don't you think? Otherwise people who buy stock of the new company (later on) have no idea what they are buying. The whole idea is to separate LibSyn from FABU.
"But, whenever a trade clears down toward the $0.10 zone, there is immediately a tiny trade at closer to $0.20"
This is not true either. By far most of the volume in the past few weeks was at 0.20. Who knows what else goes on on the grey market. Some murky stuff for sure, but that's not the company's responsibility.
As for what goes on in China, people need to understand that directors from the US have little to no control over what goes on there. It becomes much worse if you have a VIE, like FABU. The SEC is to blame for this. They set up those contractual agreements that transfer the economic benefits to the shareholders. But in reality, they have no legal basis in China whatsoever. NONE. So the last thing I need from the SEC now is to give us (or LibSyn) a hard time, at a time when the company is trying to resolve the issue and create shareholder value. If you get my drift.
Well, you clearly have an agenda. It took me less than 1 minute to find those other 2 viable clients of the auditor. And I already posted their market cap.
Or perhaps you are one of those people who believe what they want to believe. Either way, you are of no interest to me.
Final comment, yes, I have been around, studying these companies for the past 5 years.
Nope, can't post the link.
One has a $69M market cap. The other one $25M and a listing on NYSE apparently.
The auditor shouldn't be an issue.
You are right, I found the wrong company on the web.
But FABU (better, LibSyn) is not their only client. I found these too (I will provide the link in a seperate post because I'm not sure if it will be deleted by Yahoo)
- Armanino Foods of Distinction, Inc. (AMNF. OTC Pink current)
- LiqTech International, Inc. (LIQT, Denmark)
"which means that all of the illegal activity that led to the company's downfall occurred under their watch."
That doesn't mean a thing.
Btw, I contacted the CFO yesterday by email. He told me they are working on the project (spin-off) but he can't tell me anything at this time. Probably because they are in a quiet period until the S-1 is approved.
"I didn't realize correspondence with SEC comments on S-1s was even available."
Only a few weeks after the S-1 has been approved. But not always.
Or, if the SEC has determined that there are risks (the company is not answering key questions) then they may inform the public as well.
"Would it show up on edgar with the other filings ?"
"The fact that they used an accounting "firm" that is owned/operated by one person at a home address"
There are at least 6 people working for Gregory & Associates, LLC
I don't visit this forum frequently. I give updates on IHUB if I find something interesting.
In february Yasheng invested $20M in mining rights in the US.
Recently I noticed a consultant is trying to sell twenty 40-foot containers per month of Angel Star infant formula, using Tradekey. That gives us some idea of (minimum) production capacity. The price is $4 to $8 per kg. The payload capacity of a 40-foot container is roughly 27,600 kg.
The Angel Star website in Chinese has been offline for a while. I don't know why. The company should have a network of dirstributors wtihin China.
All we get from the company so far is silence though.
All we can do is wait.
"IB charges per unit traded"
Perhaps you should check again. I think there's a maximum fee per trade.
Although I can't be sure.
You don't know?
"The Company believes that the subject Annual Report will be available for filing on or before July 15, 2016."
The Q1 report will follow shortly after, and then Q2. Let's hope they make it on time, this time.