Hello to all my loyal and dedicated readers, I appreciate both of you stopping by :-)
To everyone else who stumbled onto this site and are unable to locate the backspace key, or have a computer that is frozen and can't escape this pathetic and miserable little blog, well I will try and keep you entertained for a couple minutes at least.
The "rasison d'être" for this blog, (that's a fancy French expression meaning reason for being), is to help educate and enlighten poor retail schlubs like myself about the games that are played in the public markets. Why are some players able to buy low and sell high? Simple, that's because there are others doing the opposite, selling low and buying high.
Which group do you want to be a part of? What's that? You don't want to be in the group buying high? Oh....that's too bad, because there is a mountain of effort that goes into trying to get you to do just that. Would you like an example?
ABRW is the symbol for an OTC listed company, the company used to be American Brewing but is now called Búcha Inc. Here's the chart:
Looks nice doesn't it? Don't you wish you'd heard about ABRW at the start of the year back when shares were trading for between 20 and 40 cents, instead of now when its jumped up near $2? Yeah, I know...it sucks. When OTC stocks are trading at or near their lows nobody is talking about them and volume is light. Then they explode higher, news starts coming out and before you know it they've already doubled, tripled, quadrupled or more.
How did I find out about ABRW? My (sic) friends at stockreversals.com have been promoting it all over Stocktwits, Twitter and probably in the email blasts they send out, (they stopped sending me mine, I don't know why). I know this outfit pretty well, having tracked some of their other suggestions, MOBI, CLDN, WBAI, LEJU, SBOT, ZIOP....its a long list and not a pretty one for those who bought in before they all collapsed.
Of course maybe, just maybe this time they could be onto something. Maybe ABRW will be the exception? Nah, I don't think so either. Here's what Stockreversals is saying on Twitter:
StockReversals.com
A micro cap with potentially massive upside $abrw small position 1.40 this week. Former top dog at Coke, Ambev and Cott now CEO
Sounds good doesn't it? The former top dog from Coke? Oh boy.....back up the truck and load up. But wait a minute, it always pays to verify claims by pumpers on sites like Twitter. Let's see if its true:
Alrightee, here's a snippet from a March 29 2016 PR put out by ABRW.
Top dog at Coke? Well.....not really. He wasn't "the" president, he was "a" president. A president in Latin America. Stockreversals wouldn't be the first outfit to stretch the truth, taking a guy who was a corporate president in someplace like Honduras maybe and trying to pass him off as "Top Dog".
But what else are they saying, do they have a target price? You betcha....just like KTOV which they were predicting $10+ for before the bottom fell out. With ABRW the target is equally lofty for a stock trading at less than $2
Long at $1.40-$1.45, $ABRW could see 2.50 on breakout. Valuation says $6 to hit low end of industry Price to Sales ratio of 3, now $1.72
Do you think these guys are buying? Nope...neither do I, that's what they want their followers to do. Of course if one group is buying, then another one has to be selling.....And who do you think will end up on the wrong side of yet another Stockreversals recommended trade? Yeppers, retailers....that's my opinion too.
Good luck
So basically the article suggests not getting involved with the stock because it was a quick multi-bagger ? Sorry, but the fundamentals indicate the stock is still way undervalued and headed much much higher from here. And the stock promoter you highlight ? He's still long the stock and without compensation. Very very bullish.
ReplyDeleteWe shall see how she does, it got up near $2, I would expect to see it have some rallies of course, nothing goes straight up or straight down. We'll give it a couple weeks and see where's she is at.
ReplyDeleteThere is no denying that ABRW just bought a much larger company, that will produce a huge increase in sales and earnings, at a very good price. Whether Willis was top dog, or not, the deal he made was a great deal, and immediately accretive to earnings.
ReplyDeleteHow many shares will end up being issued? We shall see....I smell big dilution.
ReplyDeleteMy guess is the shares issued to the owners of Xing will be approximately 4.25 million and thus the fully diluted O/S count will be far less than the 25 million Willis thought there would be afterwards. Big dilution for buying a company over 20X your size ? I call it the deal of the century. Could another CEO just walk into the bank and get $10.7 million at less than 4.5% to buy a company 20X your own size ? Not only "NO" but "Hell No."
ReplyDelete"Deal of the century"??? Sounds almost too good to be true. And when things sound too good to be true, they usually are.
ReplyDelete