The past year of ONCI price-trade and volume activ
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Posted On: 08/22/2018 9:12:40 AM
The past year of ONCI price-trade and volume activity explained:
Earlier this year the company completed a 3(a)10 debt restructuring. Shareholders were looking for a major reversal and price correction after that, but were disappointed to see further pressure on the price from apparent dilution. The reasons are pretty clear when reviewing the financial report in combination with the price-trade and volume activity over the past several months.
CEO Steve Berman has been bridge financing the Company via personal loans with 5% interest rate. Over the previous 2 quarters, he's loaned a total of $456,473. He took some compensation in the form of stock during that time, and sold some shares to make up part of what he loaned, with estimated proceeds in the ballpark of $340K. So, over $100K came out of his pocket, maybe as much as $125K. It MAY be that the recent 144 filing for selling 44M shares is to cover that difference.
In any case, those 44M shares have been sold and, unfortunately, that is what stalled the price correction run that was just getting started at the end of April. So the next opportunity is right around the corner...
I expect that Berman instructed his broker to complete the 44M share sales by 7/6, immediately before the shares could become unrestricted from the LAM note conversion. The price-trade action supports this perfectly.
So as soon as Berman finished selling those 44M shares, LAM started into their 88M shares... [see the calculations below]
The selling that we've been seeing since mid-July is from the LAM note that matured in mid-July. It is a "fixed" number of shares to cover a total of $72,800 at a conversion price of $0.000825 per share, which gives 88M shares (more precisely, 88,242,425 shares).
If LAM shares represent 15% of the total trade volume, it will require 588M traded until cheap shares are gone.
If LAM shares are 20% of trade volume, it will require 441M shares traded.
572M shares have traded between July 9 and August 21.
Cheap shares are most likely gone!! If not... then very nearly gone. CFGN has not appeared on the ASK since disappearing 3 days ago, and there are no other dilutive MMs!
Finally - with the LAM note conversion seemingly finished, and perfectly timed with many catalysts on deck
over the next 3 to 4 weeks, ONCI is really wound up tight and primed for a major correction!!
From recent news, it seems that we're going to start on a "super-growth" period over the next several months
with the AutoNation and CarMax roll outs reaching more broadly and deeply into the market. Just filling
that pipeline should multiply revenue by 3x!!
So we can FINALLY see that price correction without selling pressure from dilution!
The following spreadsheet and charts show the detail of the shares issued and sold over the past year.
Earlier this year the company completed a 3(a)10 debt restructuring. Shareholders were looking for a major reversal and price correction after that, but were disappointed to see further pressure on the price from apparent dilution. The reasons are pretty clear when reviewing the financial report in combination with the price-trade and volume activity over the past several months.
CEO Steve Berman has been bridge financing the Company via personal loans with 5% interest rate. Over the previous 2 quarters, he's loaned a total of $456,473. He took some compensation in the form of stock during that time, and sold some shares to make up part of what he loaned, with estimated proceeds in the ballpark of $340K. So, over $100K came out of his pocket, maybe as much as $125K. It MAY be that the recent 144 filing for selling 44M shares is to cover that difference.
In any case, those 44M shares have been sold and, unfortunately, that is what stalled the price correction run that was just getting started at the end of April. So the next opportunity is right around the corner...
I expect that Berman instructed his broker to complete the 44M share sales by 7/6, immediately before the shares could become unrestricted from the LAM note conversion. The price-trade action supports this perfectly.
So as soon as Berman finished selling those 44M shares, LAM started into their 88M shares... [see the calculations below]
The selling that we've been seeing since mid-July is from the LAM note that matured in mid-July. It is a "fixed" number of shares to cover a total of $72,800 at a conversion price of $0.000825 per share, which gives 88M shares (more precisely, 88,242,425 shares).
If LAM shares represent 15% of the total trade volume, it will require 588M traded until cheap shares are gone.
If LAM shares are 20% of trade volume, it will require 441M shares traded.
572M shares have traded between July 9 and August 21.
Cheap shares are most likely gone!! If not... then very nearly gone. CFGN has not appeared on the ASK since disappearing 3 days ago, and there are no other dilutive MMs!
Finally - with the LAM note conversion seemingly finished, and perfectly timed with many catalysts on deck
over the next 3 to 4 weeks, ONCI is really wound up tight and primed for a major correction!!
From recent news, it seems that we're going to start on a "super-growth" period over the next several months
with the AutoNation and CarMax roll outs reaching more broadly and deeply into the market. Just filling
that pipeline should multiply revenue by 3x!!
So we can FINALLY see that price correction without selling pressure from dilution!
The following spreadsheet and charts show the detail of the shares issued and sold over the past year.
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