at 10:19:52 this morning, whoever was sitting with the big ask at .35 unloaded the remainder at .33 - 105,625 shares...another 35,000 of it traded just before it in the prior 45 seconds in a few chunks between .3301 and .346
Read the news today...as expected they announced the reverse split and will uplist to national exchange.
I'm buying on weakness...there's no reason for folks to be selling on the reverse split announcement - look at the earnings.
Wise was putting forth the right vision for the future and that is why he won. As Frank's vision of selling off the existing business came to light, claiming it was their fiduciary responsibility, and that his and management's expertise was in other areas, that is when he lost it. If Frank and the others' expertise is in other business areas, then that is an indication for Frank and management to be fired and find new jobs, not to construct the business (the shareholders' business) to meet their (perceived) areas of expertise.
Wise clearly has expertise in the production and operational aspects of the business. Executing his plan and eliminating all the excessive expenses that Frank and crew were generating will lead to solid profitability within a few quarters.
The uncertainty is now out of the way, and we can move ahead.
Shares will trend higher through the year.
my concern in these situations is if the price moves against you and you're left holding something you're really not happy about holding.
when I'm playing for short-term gains, my first thought is always "if I get stuck with it for any reason, will I mind holding it long-term, and will I be ok with buying more"? with anything oil right now I don't feel comfortable.
with most all of the insider plays I'm jumping into, if I get stuck holding I'm ok with them - most often it's become a bigger buy. if that's not the case, I probably won't buy in the first place. I've also dialed back my risk tolerance (if it hasn't been extremely obvious) and continue slowly scaling in to everything and that's been working extremely well. I find myself playing games with market makers in a few of them, but I've got them pretty well figured out and once I get in sync with how the shares move, then it's easy.
I believe it's really just a formality at this point. Between Wise and Yu he immediately had 25%, The backing of ISS gave him the institutions, and I gave him another 1/2%. Ownership by non-Wise insiders is small and would have little impact.
last of the tax sellers is now out ... there was one unloading 25,000 shares towards end of the day and kept lowering his ask until he was able to unload it all. shorts will have difficulty playing their game going forward without the tax loss sellers ready and willing to take the shares lower for them and sell to them for covering.
today there was nice volume - last of the tax loss selling. with that out of the way, shares will likely trend higher through the next quarter. you simply cannot argue with the numbers posted for the last quarter and for the year. company did a very good job.
there may be a reverse split coming in 2015, as preparation for uplisting the shares. should that happen, it will be a good thing as the day traders will no longer be able to play their games jumping between the bid and ask for fractions of a penny - can't do that when shares are above $1.00. it will also significantly reduce the number of shares to a more reasonable number - maybe something in the 20 million to 25 million share range.
in any case, 2014 is now in the books. company did an excellent job executing during the year, and is positioned to continue improving in 2015.
I picked up a few more shares this morning in anticipation of a better 2015 and the end of 2014 tax selling. Figured while there was some volume being offered, might as well take advantage of it.
Companies also generally carry Director's and Officer's liability insurance policies that would pay off in situations like this...go Google for it.
Assuming the company does carry a D&O policy, Wise and new board should investigate suing Frank and supporters looking to collect from them individually as well as from the insurance policy.
"Directors and officers liability Insurance (often called D&O) is liability insurance payable to the directors and officers of a company, or to the organization(s) itself, as indemnification (reimbursement) for losses or advancement of defense costs in the event an insured suffers such a loss as a result of a legal action brought for alleged wrongful acts in their capacity as directors and officers. Such coverage can extend to defense costs arising out of criminal and regulatory investigations/trials as well; in fact, often civil and criminal actions are brought against directors/officers simultaneously.
It has become closely associated with broader management liability insurance, which covers liabilities of the corporation itself as well as the personal liabilities for the directors and officers of the corporation."
Same as my initial thoughts when I saw the 8-K. It was effective a week ago, so I think Frank has been preparing for what he knows may be coming.
The same way that the court has repeatedly thrown Frank out each time he tried to file a lawsuit against Wise, the court can also easily nullify the indemnification agreement for similar reasons.
I'd be interested in hearing if Wise knew about this or if it was also done behind his back?
Q4 posted profits of $2.5 million.
Additionally company had a $10 million tax benefit.
Full year earnings excluding the benefit was $7.82 million or 6 cents/share.
Full year earnings including the benefit was $18.64 million or 15 cents/share.
Company is now solidly profitable, with EPS on the rise.
Shares are significantly undervalued at the current price.