Post from another source: rebuttle to basher.
I'm afraid it is not SCOTTRADE... the brokerage firm... full of employees who are LICENSED BROKERS... and hold degrees in finance... and whose job it is to research information on securities... and who are bound by law to refrain from distributing false information to clients... that is misinformed. When asked VERY CLEARLY AND IN PLAIN ENGLISH, "Are you sure that the preferred shares will just "show up" in my account because #1 I thought Scottrade did not deposit penny stock certificates as a matter of policy, and #2 PVEC's press release clearly stated the certificates would be mailed out." My broker Waylan from the Knoxville, TN branch office stated VERY CLEARLY AND IN PLAIN ENGLISH, "We do not accept PURCHASED stock certificates from penny stocks to deposit into customer accounts, however since you already own the stock through Scottrade we will DEFINITELY be depositing those stocks into your account--which takes roughly a 1 day lag from the date we receive them to post to your account, and the part about mailing out certificates in the press release (which I have right here in front of me)is referring to the act of mailing certificates to individual investors who aren't working with a broker or brokerage firm as well as mailing to the brokers or brokerage firms of those who purchased through a broker."
He also made sure I understood that those Preferred shares were not able to be traded in preferred form, however "they are transactionable - meaning, once the restriction is lifted, which looks like September 17th, 2014 you can call us and we will be happy to cash them out for cash value of $0.20 per share or purchase $0.20 worth of PVEC common stock per share - whichever you choose." It is important to note that HE STATED $0.20 WOULD BE THE VALUE IN SEPTEMBER - WITHOUT ME PROMPTING OR ASKING HIM. He also went on to state "I've seen this before a couple of times with some sub penny stocks and it's a really nice deal for the shareholders. Did they recently do something big or sign some kind of contract?" When I replied "No, just merged with another company and then put in the financials that company would be signing a 250,000,000 government contract." He stated "I'm not saying one way or the other what the common share value will be in September, but it looks like you have stumbled onto something really nice here." When I said I was under the impression that I would be mailed the certificates and have to talk to the TA to convert them etc... He (Waylan)stated "No sir, they will all be handled right here in house." When I asked if he could see that I would be getting them for sure he stated, "There is no notation of a paydate as of yet, but your account is noted to be eligible for the distribution and if the press release is correct it should be any day now. We will receive them and they will SIMPLY SHOW UP in your account."
I'm not sure that this could really be any clearer. I tried to cover every angle of doubt I could when speaking to my broker. This is all quoted from a telephone conversation that took place last week.
It would appear to me (barring PVEI going completely out of business within the next few months) that there is no way to explain these preferred C shares as anything other than free money. Also, important to note that when a company files bankruptcy and is liquidated completely, PREFERRED SHARES are first to receive proceeds from asset liquidation. So even IF THEY GO OUT OF BUSINESS.... everyone who owned shares on March 14th, 2014 will be first to be repaid for their investments.
As far as PVEI not being able to honor the $4mil. gift in cash -- my guess is they won't have to because a lot of people will just want to further their positions with PVEI on payday, however, I can't see how the company would set itself up to fail 100% by issuing certificates it knows for sure or that there is little chance of it honoring. My powers of deductive reasoning tell me 1 of 2 things... This is either something they KNOW FOR SURE they will be able to pay out, or have a 99.9% certainty will manifest for the shareholders, OR it's a last minute hail mary charge to raise funds before an impending inevitble bankruptcy and delisting scenario - in which case (as state before) Preferred shareholders will be the first to receive proceeds from liquidation of assets. That being said, I have seen the company and its assets valued anywhere from $7mil to $31mil - either way its all over $4mil.
He also made sure I understood that those Preferred shares were not able to be traded in preferred form, however "they are transactionable - meaning, once the restriction is lifted, which looks like September 17th, 2014 you can call us and we will be happy to cash them out for cash value of $0.20 per share or purchase $0.20 worth of PVEC common stock per share - whichever you choose." It is important to note that HE STATED $0.20 WOULD BE THE VALUE IN SEPTEMBER - WITHOUT ME PROMPTING OR ASKING HIM. He also went on to state "I've seen this before a couple of times with some sub penny stocks and it's a really nice deal for the shareholders. Did they recently do something big or sign some kind of contract?" When I replied "No, just merged with another company and then put in the financials that company would be signing a 250,000,000 government contract." He stated "I'm not saying one way or the other what the common share value will be in September, but it looks like you have stumbled onto something really nice here." When I said I was under the impression that I would be mailed the certificates and have to talk to the TA to convert them etc... He (Waylan)stated "No sir, they will all be handled right here in house." When I asked if he could see that I would be getting them for sure he stated, "There is no notation of a paydate as of yet, but your account is noted to be eligible for the distribution and if the press release is correct it should be any day now. We will receive them and they will SIMPLY SHOW UP in your account."
I'm not sure that this could really be any clearer. I tried to cover every angle of doubt I could when speaking to my broker. This is all quoted from a telephone conversation that took place last week.
It would appear to me (barring PVEI going completely out of business within the next few months) that there is no way to explain these preferred C shares as anything other than free money. Also, important to note that when a company files bankruptcy and is liquidated completely, PREFERRED SHARES are first to receive proceeds from asset liquidation. So even IF THEY GO OUT OF BUSINESS.... everyone who owned shares on March 14th, 2014 will be first to be repaid for their investments.
As far as PVEI not being able to honor the $4mil. gift in cash -- my guess is they won't have to because a lot of people will just want to further their positions with PVEI on payday, however, I can't see how the company would set itself up to fail 100% by issuing certificates it knows for sure or that there is little chance of it honoring. My powers of deductive reasoning tell me 1 of 2 things... This is either something they KNOW FOR SURE they will be able to pay out, or have a 99.9% certainty will manifest for the shareholders, OR it's a last minute hail mary charge to raise funds before an impending inevitble bankruptcy and delisting scenario - in which case (as state before) Preferred shareholders will be the first to receive proceeds from liquidation of assets. That being said, I have seen the company and its assets valued anywhere from $7mil to $31mil - either way its all over $4mil.
