RE:RE:RE:RE:RE:Is this a real company or a house of cards?SwingTrader149 wrote: I have to disagree with your comment here - it costs money to "march" a price up with this much volume. What are they averaging now 100k shares a day? That's roughly $150K + trading commissions everyday worth of stock being traded.
Sure the underwriters are probably making money - but they will have lock ups on their stock (usually 3 months) and underwriters ALWAYS make money on Ipos - whether its facebook or some promoted penny stock. They will short the stock right out of the gate because they know they will have the shares to cover if it rips, and if it goes down they still make money on the short. But they should make money - they are taking risk just like anyone here, it just seems unfair because we don't have the same opportunities (I hate underwriter's as well).
I am still not sure what is going on here - but one thing is for sure, there is growing volume and activity on the symbol. Either way there could be an opportunity for short term profit and if there tech is the real deal then we will see it in the press releases. Either they have partnerships or they begin blowing fluff pieces out.
But I am fairly confident no one is marching this thing up at 100k shares a day and making any money worth that risk.
Also remember insiders will have their shares locked up too - right now this float is tight, and no one is selling which is why it keeps going up. It could be one large seller that takes it down to more realistic levels. But by that time we will know more about the company.
Love to hear your thoughts.
I've highlighted parts of your message that I espeically agree with.
I thought about getting in (earlier @$1/1.03 bid/ask) because no one is selling & the volume and price keep going up - because it is being promoted and no one is selling. Yes, there could be an opportunity for short term profit - because the promotion likely continues for a while yet along with no one selling (except the underwriter of course & maybe a few retail investors that lost confidence). I expect it to go mostly higher for some time yet.
I don't hate underwriters in general & have no problem with them making a profit. They are necessary and often their profit is modest for the risk, time & work required.
In this case it looks like Leede Jones Gable may be largely out of their position within 6 months with a profit of 200 or 300% over their investment. I'd like to be in that business myself.
But I have concerns.:
1. The IPO was for less than 1/15th of the company's shares. So there will be plenty of shares to sell if and when heavy promotion with "no one selling" ends.
2. They don't respond to emails from their contact pages (there are 2 websites CannaOne & BloomKit) other than an automated reply from the BloomKit site saying that they will get back to you in 48 hours (but they don't) - so how do you confirm that they're doing anything of substance.
3. Assuming that they are trying to create a great Cannabis software suite - That is not a quck or easy task. Look at IBM & Arthur Anderson with the Canadian government payroll system. Two industry leaders took a long time & a lot of money to develop an app that should be fairly well understood (as payroll in not a new thing) - and it didn't work. In general software development takes more time & money than you might think it should - and this company apparently is doing it with no interest in hiring software developers (judging by their web sites). Are the 3 execs workaholic software geniuses that developed awesome software on their own or .....?
4. etc. I could go on, but I've probably said enough for now......