With all due respect, I'd rather be richer than necessarily admired. But I'll take it.
I'll be OK. It was a trade. I had BIIB and AAPL trades go very well this week. I had a GOOG trade that was barely profitable. My AMZN trade, didn't work out.
Trust me I was on the wrong side of the trade today. Ive seen this before. I'm out. Licking wounds. It's going to get worse. It always does. AMZN will keep going up.
However, when the bell rings...I don't know when....it will be tough to get through the door.
This was fascinating. On a day when the market is down 3% GOOG and AMZN soar. Options ex today. Unbelievable short squeezes.
I suspect they will continue to go up as the short sellers just won't cave. The more this looks ridiculous the more ridiculous it will become. Expect Cramer to throw gas on the fire.
Don't short AMZN or GOOG now. Don't
This is tremendous short squeeze. It's going to #$%$ for several days...maybe a week or two. Gotta just grind those shorties right into the ground. No mercy. None.
Don't worry about him. He's hedged. I'm sure he had all sorts of spreads, blah, blah, blah....going way out. He'll be fine.
You asked, "would not the SEC be at all interesred in their scheme?"
There was no scheme here. Never was. Just a small company trying to become a big one in an industry that developed very rapidly and they just got steamrolled by very big companies, GOOG, FB, etc.
The people who started this company were not very good at it. They morphed the company from a radio somethingorother(Modavox) to a patent troll (AUGT) to an ad agency (HIPP). They just weren't up to the task.
Some deep pocketed guys put some money in the trough to see if it would work. The amount was chicken feed to them. It didn't work.
A lot of penny stock touts got in on the gig (Northland). Some of us bought into the story. Some of us got out soon enough without losing our whole investment. Some others rode into the ground.
So it goes.
It's over. The company is dead. The money is all gone.
The insurance companies carry is about covering the board of directors and management against personal indemnity in case of law suits brought against them "personally" for their acts as directors, etc. If the company went bankrupt because it's just a badly managed business then the insurance doesn't cover that. In public companies the shareholders are responsible for picking the board and voting (by owning the stock or not) their preferences. Please.....shareholders of HIPP are not going to get a single penny back. Insurance isn't going to cover any of this. If anything, maybe the cost of litigation....but certainly not for any loss of shareholder value. I've never, ever heard of that happening.
Think about it. What kind of an insurance company would offer a policy against Boards of Directors being stupid? Even corrupt? How would an actuary calculate the risk? How could they determine how much of a premium to charge for the amount of liability they may have to cover? It's impossible. There is no such kind of insurance for that.
"I'm not very knowledgeable about what happens when a situation like this comes up. My question simply is, are my shares (which are significant) now worth zero with no hope of any compensation/turn around etc...?"
That is correct. Your shares are worthless. You have no chance to recoup any of it. Any sort of class action law suit will only result in money going to lawyers. There will be nothing.....NOTHING....for shareholders. I doubt a lawsuit garners any cash for even the lawyers. These suits are a dime a dozen. There are law firms that this is all they do. Just file suit after suit against every Tom, #$%$ and Harry bankruptcy and hope that 1 out of 10 pays off. My guess there will be no payoff on a HIPP case.
For those interested in the charts it retracedthe big drop from Oct 15-16. I expect it to now continue back up to new 52 wk/all time highs.
Do not short NFLX right now.
Buy if you want to squeeze out another 5-10%. The faster it gets there the sooner it will correct.
"Not defending arn greg. I'm saying you can't blame arn for your losses, which you seem to have a continuous hard-on for both him and sirius. Arn was a paid consultant. Paid in stock to do a job, which he did. "
That's a lie. Another lie that guys like you perpetuate on MBs.
A company paying someone in stock to shill for the company on anonymous MBs is an SEC violation. If you knew it, you also broke the law. It would have to be disclosed in SEC filings. Insider info. Misleading statements....blah, blah, blah....Don't worry. The SEC could not care less about HIPP/AUGT. They never did. All this BS about "Oh, insiders can't buy because of quiet period, something's up....." All BS. Just like you.
Look it. I sold not because of risk aversion....unless losing all my money was something I didn't want to do. It was all about rational assessment of the company. I was right. I wish I had been wrong...which I repeatedly stated.
Wakeme...you're a moron. A disingenuous one at that. I doubt you even owned much of the stock. Maybe a few hundred shares. Big whoop. But don't foist that "paid in stock consultant" krappola.
Since it is not worth anything to shareholders, who is buying 14 million shares and climbing??
That's Arn and his cohorts covering their shorts. I am absolutely convinced he was shorting all along.
They paid $4.5 million for this? The shareholders lost everything. I don't know how the debt holders are being compensated, if at all.
I know nothing about STO Mobile. I never heard of them. My guess is they're run by a bunch of nincompoops as well and somewhere down the road they will be BK as well. Paying anything for HIPP was absolutely moronic. LOL. Why? Yeah, they have flat to declining sales of over $20 mil. Of which over 1/2 was the original Hipcricket that Ivan Braiker built. The old AUGT didn't contribute but $10-12 mil. in sales...ever. So they paid $4.5 mil for 5-6 times bump in sales. It won't last. No one needs what HIPP does. They don't need a 3rd party to do this stuff.
"A sucker is born every minute." I was one of 'em. Thankfully, I didn't ride it into the ground.
You are right as long as they don't get a drug out there on the market. The bubble won't pop until the market goes pop. But if they can get something hot and exciting out there before that, it will be excruciatingly high. If this company got a $10 billion market cap it wouldn't be crazy.....as long.....as they get a drug out there.
It's going to take awhile...years....several anyway....but I will be holding ABX until it makes a new "all time" high. I do believe it will go back to the $50s eventually. I've held my nose and kept buying ABX from the mid $20s on down. I think my cost average is in high teens. I can live with that for a good long while.....and wait. I'm pretty sure I'm going to make out just fine.
There is no sale in the works for this company. If they are even still operating and money coming in it's basically going to pay the utilities, rent and few staffers still hanging around for whatever kind of paycheck they can garner. They're not paying anything on these "loans" they've been fronted. HIPP has no "assets". What they do can be done by just about anybody with a good PC. There really is no reason for anyone to buy HIPP. They have no proprietary software. They say they do, but they don't. I'm not even sure filing for bankruptcy gains them anything. Why? Whoever wants to do what HIPP has been doing can just start doing it on their own. They don't need the HIPP banner. All the money put into AUGT/HIPP is gone.....gone. It's never coming back. Maybe some enterprising business school student can make a nice case study out of how to take a pretty darn good idea (which was the reason I originally invested) and then fail miserably at developing it. Wouldn't be the first or last time it happens. So it goes.
If you were around during the AUGT days when the stock was up in $2-3-4 range there was a daily, multi times/day poster who went by "Arn". He was considered the guru of this stock. He never posted under his inscrutable name anywhere else on any other board for any other stock though he proclaimed to be a very wise and seasoned (and successful) investor. I'm betting he was Paul Arena, the failed CEO of AUGT. It would have been very, very illegal if it was him, but my impression of Arena as a CEO was that he was totally out of his league and trying to puff of his stock on a message board would have been right up his alley. This company was/is so small that the SEC could barely have cared.
Obviously I can't prove it, but just before Arena was given the heave ho, he stopped posting. He's never been back and has never posted elsewhere under the same ID. He was a very, very cruel and indifferent guy. It appeared many posters followed him and sopped up his drivel ad nauseum. I used to get into some pretty heated, albeit, anonymous battles with him. He cost a bunch of people some serious change. It was, in the end, their own fault.
Never, ever listen to an anonymous poster on these boards. In fact, ignore me too.
#$%$!!!! a penny????!!!!!!
Why, some of you same old posters are still here...why? You didn't really ride this puppy into the ground, did you? Why?
I lost thousand$....but I sold at $1.50 two years ago. Honestly, I'm not trying to bash. I just find the AUGT/HIPP kool aid that some of you guys are addicted to fascinating.
Yikes! Keep your pants on. ABX to $15 would stun me.
Remember if the global financial system craters all financial assets will suffer....even GLD and ABX. When the dust settles and the currency markets reset.....then gold and the miners will take off as fiat money will be treated as it should be.....as nothing more than promissory notes. Gold and oil and copper and land and fertilizer and timber and.....well you know what I mean will become more valuable. Own "stuff"....not paper.