WHY does Today’s Press Release on $RXSF Represent a Potential Opportunity
Posted on January 5, 2016 by editor
Let's talk briefly about what happened with RX Safes Inc. (OTCQB: RXSF) stock two weeks. Then I will point out a very important opportunity here.
This is the release I am talking about:
Note that RXSF Management is aggressively going after this issue:
That's important because that means it is very likely to not only stop the registration of these shares, but the other entity is very likely to immediately stop selling even if they think they have shares left to sell. Their brokerage firm might make them stop even if they do not do so on their own.
This line makes it clear that the Company is willing to put their reputation on the line in calling this out: "...an improper and unauthorized series of debt conversions have taken place since December 24, 2015, with regard to a prior obligation of the company."
That is a serious claim and the Company is willing to put this out to the public which means they know that regulators will see this and possibly act on this. This is the opposite of "sweeping it under the rug." That's what usually happens when something "improper" happens. I am not going to use the term "illegal" here since the Company did not.
This line is also critical: "...the party has submitted irregular paperwork in order to avoid notifying the company and to expedite trading over the holiday."
So Where's the Opportunity Here?
The stock is artificially suppressed due to this. We got up above $7 and then this selling hit. We were at $7.20 on December 24th, and I guess the greed became too much for someone. Artificially suppressed stocks don't stay down typically!
If a broker accepts bad paperwork either knowingly or unknowingly, and the "Compliance Officer" for that firm finds that the debt conversion was based on "irregular paperwork" that was submitted deceptively, the brokerage firm MIGHT be liable. If there are recent trades that have not cleared, he may "bust the trades" essentially buying back shares to cover the shares sold improperly. If funds are in an account that were from shares from the conversion where "irregular paperwork" was allegedly filed to get around the Company, it is possible the Compliance Officer will be forced to go into the open market and buy back shares sold into the open market to close out what have essentially been "short trades." When it is due to possibly improper, irregular or other deceptions that the brokerage firm should have caught, the firm MAY be liable. They certainly are answerable to regulators for allowing shares to be registered that should not have been. If the brokerage firm has no accidental or purposeful complicity at all, they may look at this differently and blame the transfer agent. Most transactions that are brought to market are handled by a brokerage firm, with paperwork submitted to clear that shares to the transfer agent. The opportunity here comes IF and when the brokerage firm covers a series of improper short trades and busts trades not yet settled. This kind of cover is typically all at once, without regard for trying to work it through the market. If a short is truly "illegal" (and I did not see the Company use that term) and there are proceeds (profit) that comes in covering the short positions and busted trades, the client account will likely never get those funds.
You have to decide for yourself if you see a cover coming here. I am a consultant to the Company and you have to consider that when you read anything I write about RXSF. I have put the logic I see out here. Please make your own decisions and consult a professional if you don't understand some of this.
RX Safes Inc. is a client of StockGuru.com / Pentony Enterprises LLC. We are being compensated seventy-two hundred dollars and eighteen thousand dollars total value in shares to be paid during the next twelve months divided into in three separate issue dates. Share price of the compensated shares are not at a discount to market and will be restricted under Rule 144. Pentony Enterprises, McKinney, Texas 75070. Telephone: 469.358.5200. No person or entity associated with StockGuru.com owns any free trading shares, warrants or other shares not mentioned in this disclosure of RXSF stock.
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Related
Trade Alert: Price for $RXSF Creates Potential Upside Gain of 161% if Reaches 5-Day High Again
December 30, 2015
In "Breaking News"
News Out $RXSF $RXSFD - Rx Safes CEO Lorraine Yarde Interviewed by Leading IR Site StockGuru.com
November 9, 2015
In "Alert"
Trade Alert $RXSF - Rx Safes Discloses Unauthorized Debt Conversion - @RxDrugSAFE
January 5, 2016
In "Breaking News"
Filed Under: Trade Alert, Featured, Feature Box
← Associa PCM's Jeremy Wilson Wins Two TOPS Awards
Since 2002 - Copyright © 2002-2015 StockGuru SmallCap Alerts on Penny Stocks
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Posted on January 5, 2016 by editor
Let's talk briefly about what happened with RX Safes Inc. (OTCQB: RXSF) stock two weeks. Then I will point out a very important opportunity here.
This is the release I am talking about:
Note that RXSF Management is aggressively going after this issue:
That's important because that means it is very likely to not only stop the registration of these shares, but the other entity is very likely to immediately stop selling even if they think they have shares left to sell. Their brokerage firm might make them stop even if they do not do so on their own.
This line makes it clear that the Company is willing to put their reputation on the line in calling this out: "...an improper and unauthorized series of debt conversions have taken place since December 24, 2015, with regard to a prior obligation of the company."
That is a serious claim and the Company is willing to put this out to the public which means they know that regulators will see this and possibly act on this. This is the opposite of "sweeping it under the rug." That's what usually happens when something "improper" happens. I am not going to use the term "illegal" here since the Company did not.
This line is also critical: "...the party has submitted irregular paperwork in order to avoid notifying the company and to expedite trading over the holiday."
So Where's the Opportunity Here?
The stock is artificially suppressed due to this. We got up above $7 and then this selling hit. We were at $7.20 on December 24th, and I guess the greed became too much for someone. Artificially suppressed stocks don't stay down typically!
If a broker accepts bad paperwork either knowingly or unknowingly, and the "Compliance Officer" for that firm finds that the debt conversion was based on "irregular paperwork" that was submitted deceptively, the brokerage firm MIGHT be liable. If there are recent trades that have not cleared, he may "bust the trades" essentially buying back shares to cover the shares sold improperly. If funds are in an account that were from shares from the conversion where "irregular paperwork" was allegedly filed to get around the Company, it is possible the Compliance Officer will be forced to go into the open market and buy back shares sold into the open market to close out what have essentially been "short trades." When it is due to possibly improper, irregular or other deceptions that the brokerage firm should have caught, the firm MAY be liable. They certainly are answerable to regulators for allowing shares to be registered that should not have been. If the brokerage firm has no accidental or purposeful complicity at all, they may look at this differently and blame the transfer agent. Most transactions that are brought to market are handled by a brokerage firm, with paperwork submitted to clear that shares to the transfer agent. The opportunity here comes IF and when the brokerage firm covers a series of improper short trades and busts trades not yet settled. This kind of cover is typically all at once, without regard for trying to work it through the market. If a short is truly "illegal" (and I did not see the Company use that term) and there are proceeds (profit) that comes in covering the short positions and busted trades, the client account will likely never get those funds.
You have to decide for yourself if you see a cover coming here. I am a consultant to the Company and you have to consider that when you read anything I write about RXSF. I have put the logic I see out here. Please make your own decisions and consult a professional if you don't understand some of this.
RX Safes Inc. is a client of StockGuru.com / Pentony Enterprises LLC. We are being compensated seventy-two hundred dollars and eighteen thousand dollars total value in shares to be paid during the next twelve months divided into in three separate issue dates. Share price of the compensated shares are not at a discount to market and will be restricted under Rule 144. Pentony Enterprises, McKinney, Texas 75070. Telephone: 469.358.5200. No person or entity associated with StockGuru.com owns any free trading shares, warrants or other shares not mentioned in this disclosure of RXSF stock.
Share this:
Click to share on Twitter (Opens in new window)1Share on Facebook (Opens in new window)1Click to share on Google+ (Opens in new window)1Click to share on LinkedIn (Opens in new window)1More
Related
Trade Alert: Price for $RXSF Creates Potential Upside Gain of 161% if Reaches 5-Day High Again
December 30, 2015
In "Breaking News"
News Out $RXSF $RXSFD - Rx Safes CEO Lorraine Yarde Interviewed by Leading IR Site StockGuru.com
November 9, 2015
In "Alert"
Trade Alert $RXSF - Rx Safes Discloses Unauthorized Debt Conversion - @RxDrugSAFE
January 5, 2016
In "Breaking News"
Filed Under: Trade Alert, Featured, Feature Box
← Associa PCM's Jeremy Wilson Wins Two TOPS Awards
Since 2002 - Copyright © 2002-2015 StockGuru SmallCap Alerts on Penny Stocks
MENU & SEARCH
