And the mysterious and amusing "trades" continue i

And the mysterious and amusing "trades" continue in SFIO, a stock globally locked by the DTC.

One or many market participants spent just over thirty dollars today to pull the market cap of the company down another 40% to about $380,000. The market is left to wonder if the total enterprise valuation of the company can be assumed to be a mere $380,000 or not. What is the corp shell worth? What is the european patent worth? What is the Denverson LOI ($1M notes + $110k cash) worth? What is the future potential for earnings should management eventually launch another webstore with a small inventory of RE/AL ecigs?

The last financial filing from the company, as of Sept 30 2011, showed assets of $1.4M and liabilities of $600k, so on paper the company is worth about $800k, not $380k, just FYI.

Another interesting point is that there was practically zero short interest for quite a long time after the global lock in July 2011. However at last glance on OTC markets, there is now a short interest, as of July 13 2012 of 1,898,467 shares with 124 days to cover. Granted this is still only 0.3% of the total shares in the company, and the shares "traded" today make up about 0.01% of the total shares in the company, so all of the action is meaningless, however it seems to be the only action happening so its worth noting.

It is quite interesting that the Level II for SFIO shows most of the lowest Asks in the half a cent range yet the low bids keep on occasionally getting hit for a few dollars worth of shares by who knows who. Perhaps these are sellers capitulating, perhaps for whatever reason these bids are getting filled with shares of which are already owned (in another account) by the buyer?? Only the SEC and/or FINRA could find out, for all we small fish fry are meant to know is that the company is now worth $380,000 because someone with $30 printed a particular share price. Very amusing, indeed, though laughing anymore, I am not.

GLTA

$SFIO!