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sammydv
sammydv
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August 9th, 2016 at 7:27:48 PM permalink
Quote: Wizard

Strange that a company can be in default and still have a market cap of 2.73 million (as of 8/9/16).


Not strange at all if you knew that a penny stock which issues 5 BILLION shares out of thin air and gives most of them to their own money laundering company called royal capital. And that the fact that 'market cap' is just an indicator created by financial guru's to quickly try to place a unrealistic value on a pink sheet stock to sell shares to the market.

You see, if you create 5 BILLION shares via your own treasury and then multiply them by the current share price of .0035 you can say your company is worth 17.5 million when in fact, you have no products except 1 lousy media app no one knows about, every one of your last functioning companies are defunct and have no business license in the state you're incorporated, no known employees or offices open. But yea, you can claim millions in market cap just because you created phony shares at a price you invented.

We're not talking real exchange companies, where other indicators are factored in like, inventory, property, employees, taxes can be blended in with the meaningless market cap to give some better basis for market value.
Wizard
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Wizard
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August 9th, 2016 at 8:08:38 PM permalink
Thank your for the reply. According to Yahoo, the current price is four cents a share. Was there a reverse split? How do you suppose the people paying the four cents a share would respond to your post? Also, why doesn't Market Capital sell some of their shares to at least keep the lights on.
It's not whether you win or lose; it's whether or not you had a good bet.
sammydv
sammydv
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August 9th, 2016 at 9:13:30 PM permalink
Quote: Wizard

Thank your for the reply. According to Yahoo, the current price is four cents a share. Was there a reverse split? How do you suppose the people paying the four cents a share would respond to your post? Also, why doesn't Market Capital sell some of their shares to at least keep the lights on.



Yes there was a split just a few weeks ago. The pre price would be .0017 or something now with all the dilution the company felon and insiders are doing. Pre split the pps was .0025 approx, and if you had 10000 shares @ a account value of 25 dollars. After the split you have to have the same account balance but less proportional amount of shares at the new higher pps. It was a split of 1 for 25.1 shares. The opening stock price post split was around .08 approx. Then the pps drops 50% in a week and your account is now down 50%. But the pre price would actually be now .00125.

This is where market cap fails and deceives in the pinks. One week you have 1 billion outstanding shares @ .0025 and claim a market cap of 2.5 million and the next week your company does a reverse split and does not reduce the company outstanding but instead ups it to 5 billion and now claims a market share of 405 MILLION based on the false pps right after market opens that first day of trading. What changed? Did the company suddenly find gold and platinum under their rented office? Did they just hire Gates and Trump together?

And royal capital is the entity owned by the principal felon doing prison time that is selling the shares themselves that the principal gifted to his own facade company as supposed debt conversions. This is known as toxic funding and is almost 100% a death blow to penny stocks eventually.

I may not have described this concise enough but I think you get the gist.

take care.
wellwellwell
wellwellwell
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August 10th, 2016 at 5:14:13 AM permalink
It appears the NTEK corporate charter is back in good standing with the Nevada Secretary of State for whatever that is worth.

They are still gonna dilute the gullible shareholders to dust.
Skeptic
Skeptic
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August 10th, 2016 at 8:29:06 AM permalink
Quote: Wizard

Strange that a company can be in default and still have a market cap of 2.73 million (as of 8/9/16).



Happens all the time on the OTC. They're called zombie tickers.

Throw out everything you know about market valuations when looking at OTC stocks. They are always illiquid and easily manipulated by insiders who control the vast majority of the stock.
steeldco
steeldco
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August 10th, 2016 at 8:39:36 AM permalink
Market cap is calculated as the number of outstanding shares X last price paid. So, unfortunately, there are people who don't think that the assets are worthless and hence were willing to pay something. Just as unfortunately, most people do know how to reasonably determine what a company's market cap should be or, a lot of the time, what it even means.
DO NOT blindly accept what has been spoken. DO NOT blindly accept what has been written. Think. Assess. Lead. DO NOT blindly follow.
sammydv
sammydv
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August 10th, 2016 at 9:45:14 AM permalink
Quote: steeldco

Market cap is calculated as the number of outstanding shares X last price paid. So, unfortunately, there are people who don't think that the assets are worthless and hence were willing to pay something. Just as unfortunately, most people do know how to reasonably determine what a company's market cap should be or, a lot of the time, what it even means.



What do you think an indicator like market cap was created? How would the last stock price paid equate to a company that has no verifiable assets or protected intellectual property owned? And when a penny stock with 10 billion shares outstanding goes from .0005 in the morning to .05 at 1:00pm the same day, does market cap actually show a true company picture when nothing changed with the company itself in 4 hours? This being non exchange pink companies?

thank you.
steeldco
steeldco
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August 10th, 2016 at 10:54:24 AM permalink
Quote: sammydv

What do you think an indicator like market cap was created? How would the last stock price paid equate to a company that has no verifiable assets or protected intellectual property owned? And when a penny stock with 10 billion shares outstanding goes from .0005 in the morning to .05 at 1:00pm the same day, does market cap actually show a true company picture when nothing changed with the company itself in 4 hours? This being non exchange pink companies?

thank you.



Wow, with all due respect, your point above is so far out in left field that I couldn't even begin. Suffice to say that market cap most of the time doesn't accurately reflect what a company's value is, even though it should. This occurs mostly with micros, small, and medium cap companies. The reason? Most people can't correctly assess future value. That's why money is made in public markets. A company's assets and liabilities are just a couple of components of a company's value. To top it all off, nobody in their right mind would view market cap as you present it, except for those who like to buy and sell based on pictures. To them, it doesn't matter what the value is. It's whether a chart looks a certain way.
DO NOT blindly accept what has been spoken. DO NOT blindly accept what has been written. Think. Assess. Lead. DO NOT blindly follow.
Wizard
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Wizard
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August 10th, 2016 at 11:44:03 AM permalink
Regarding valuation, the rule of thumb is that something is worth what you can get somebody else to pay for it. So if anybody can suggest a simpler formula than share price * number of shares, I'm all ears.

A couple questions, if you don't mind:

1. How is the current four cents share price based? Is that is the sale price of the last trade or the average of the last x trades?
2. Let's say I have a million shares and desperately need cash. How would I sell them and what price would I get?
It's not whether you win or lose; it's whether or not you had a good bet.
Skeptic
Skeptic
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August 10th, 2016 at 12:38:47 PM permalink
The current price is determined by the last trade. A better indicator is looking at the Bid and Ask prices - the Bid is the price someone is willing to pay right now while the Ask is the price someone is willing to sell for right now. The difference between those two prices is called the spread.

If you have a million shares to sell and had to do it immediately you would place a market order and if there aren't cumulative bids in place for a million shares then the price would crater to no-bid. Zero. Immediately.

I know I've said this 10 times already in this thread but trading strategies and market theory that govern major exchanges like the NYSE and NASDAQ have literally no bearing whatsoever in the OTC cesspool. This cannot be overemphasized and is the reason so many people get ripped off by these scams - they go in thinking it's just like big-board stocks while the whole time they are being led to the slaughterhouse by corrupt stock promoters and con-artists printing free stock as fast as they can dump it.
Last edited by: Skeptic on Aug 10, 2016

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