This is a great post by lesgetrich on Ihub 9/24/1
Post# of 2155
Posted On: 09/25/2014 4:51:05 PM
This is a great post by lesgetrich on Ihub 9/24/14 09:04:22 PM:
"In my opinion there are legitimate reasons to question this stock and non-legitimate reasons for doing so.
Non-Legitimate
Some people spend far too much time on topics that really don't have any effect on the pps other than by scaring some people on this board into selling their shares.
1. Dilution: There is no dilution. MCIG's OS is 270,135,000 shares and has not changed in the past year.
2. Increase in Float: There is no reason to believe that the float is anything other than about 250 million shares.
3. Insiders dumping shares: The only real insider with a significant number of shares is Paul. If/when he sells shares the company has to file a public disclosure with the SEC. We would know. By my count he has given away no more than about 8 million shares since he took over, all from his own shares (i.e. they didn't cost us shareholders anything). 2.5 million were given to the vapolution owners and are restricted for a year. If/when they are sold they are again subject to an SEC disclosure just like Paul. About 5 million shares were given to multiple employees and consultants (ambassadors) at different times over 150 days at fair market value (the pps at the time they were awarded). One has to assume that they would act like any other shareholder and may or may not sell some amount of shares at any given time. Even if they somehow were able to conspire to all sell their shares, they would run out of shares within a week or two (our average volume is ove 1 million shares/day). Whatever effect these shares have is minimal.
4. Management needs to answer our questions: No they don't. They need to focus on making money not satisfying every disgruntled investor whenever the pps goes down several percent. What other company jumps every time someone criticizes the management - none. Corporations keep many secrets. Often, it's so that they will have maximum impact when they are announced. They commonly execute non-disclosure agreements with vendors and employees. I know, I was involved with scores of them when I worked for IBM.
5. This is a scam: There is no evidence that Paul is scamming us. A true scammer would be taking on toxic debt and wouldn't be using his own shares to pay for everything. If he's a scammer he's doing a pi$$ poor job of it.
6. Market Makers are conspiring to bring down the pps: We have over a dozen of them and it would be pretty hard for all of them to participate in a conspiracy. Normally they're reacting to large bid or ask orders and trying to keep trading orderly.
7. No one has seen Paul: Perhaps he's the hunchback of Notre Dame or has a face like Alfred E Newman. Some people just aren't good at public speaking, who knows. I don't really care as long as he can show results.
8. The ambassadors aren't earning their keep: Jury's still out. Besides, they were paid for on Paul's dime.
Legitimate Questions
1. Why was there a decline in MCIG revenue for the quarter: Is there reason to believe that next quarter will be better?
2. What lessons did management take away from last quarters results: What adjustments should they make.
3. Do we run the risk of being too late to market with MCIG: What will set the product apart from the competition? Are others catching up to our price point?
4. Will VCIG be able to generate repeat sales: Will it catch on like bubble gum or will people get tired of shelling out $5
5. What is the plan for retail sales: When will we see significant results?
6. When will the MJ sector turn around: I'd say 90% of our share drop has been due to the sector problems. Many people got into MJ expecting to make a quick buck. It's starting to hit home that it may be a while before most of these OTC MJ stocks start generating significant earnings. In the meantime, us longs may have to put up with some more pps depreciation. "
"In my opinion there are legitimate reasons to question this stock and non-legitimate reasons for doing so.
Non-Legitimate
Some people spend far too much time on topics that really don't have any effect on the pps other than by scaring some people on this board into selling their shares.
1. Dilution: There is no dilution. MCIG's OS is 270,135,000 shares and has not changed in the past year.
2. Increase in Float: There is no reason to believe that the float is anything other than about 250 million shares.
3. Insiders dumping shares: The only real insider with a significant number of shares is Paul. If/when he sells shares the company has to file a public disclosure with the SEC. We would know. By my count he has given away no more than about 8 million shares since he took over, all from his own shares (i.e. they didn't cost us shareholders anything). 2.5 million were given to the vapolution owners and are restricted for a year. If/when they are sold they are again subject to an SEC disclosure just like Paul. About 5 million shares were given to multiple employees and consultants (ambassadors) at different times over 150 days at fair market value (the pps at the time they were awarded). One has to assume that they would act like any other shareholder and may or may not sell some amount of shares at any given time. Even if they somehow were able to conspire to all sell their shares, they would run out of shares within a week or two (our average volume is ove 1 million shares/day). Whatever effect these shares have is minimal.
4. Management needs to answer our questions: No they don't. They need to focus on making money not satisfying every disgruntled investor whenever the pps goes down several percent. What other company jumps every time someone criticizes the management - none. Corporations keep many secrets. Often, it's so that they will have maximum impact when they are announced. They commonly execute non-disclosure agreements with vendors and employees. I know, I was involved with scores of them when I worked for IBM.
5. This is a scam: There is no evidence that Paul is scamming us. A true scammer would be taking on toxic debt and wouldn't be using his own shares to pay for everything. If he's a scammer he's doing a pi$$ poor job of it.
6. Market Makers are conspiring to bring down the pps: We have over a dozen of them and it would be pretty hard for all of them to participate in a conspiracy. Normally they're reacting to large bid or ask orders and trying to keep trading orderly.
7. No one has seen Paul: Perhaps he's the hunchback of Notre Dame or has a face like Alfred E Newman. Some people just aren't good at public speaking, who knows. I don't really care as long as he can show results.
8. The ambassadors aren't earning their keep: Jury's still out. Besides, they were paid for on Paul's dime.
Legitimate Questions
1. Why was there a decline in MCIG revenue for the quarter: Is there reason to believe that next quarter will be better?
2. What lessons did management take away from last quarters results: What adjustments should they make.
3. Do we run the risk of being too late to market with MCIG: What will set the product apart from the competition? Are others catching up to our price point?
4. Will VCIG be able to generate repeat sales: Will it catch on like bubble gum or will people get tired of shelling out $5
5. What is the plan for retail sales: When will we see significant results?
6. When will the MJ sector turn around: I'd say 90% of our share drop has been due to the sector problems. Many people got into MJ expecting to make a quick buck. It's starting to hit home that it may be a while before most of these OTC MJ stocks start generating significant earnings. In the meantime, us longs may have to put up with some more pps depreciation. "
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