First off no… I am not short and have no plans to short this name. It’s far too cheap … the margin itself would eat a majority if not all of my buying power to even make the trade worth it.
This is probably the WORST press release the company could put out for share holders who “truly” believe, in this market if you’re a stock selling machine it’s better to fly under the radar not attract all the negative attention that the SEC hates: 1.) next day marijuana companies and 2.) bogus buyouts
This company knows they are a ticking time bomb and they’ve ran out of press releases about the company itself, they probably have more paper to sell and getting rather impatient.
I warned about these ‘buyout’ ‘take over’ ideas before on FVSTA about 3 days before it halted so no, this isn’t just a random thought – this is 100% not good for longs.
I also warned about Pingify International Inc. (PGFY) before the halt.
The SEC just finished warning about these names. This should worry all FRTD investors:
“Recent changes in state laws concerning medical and recreational marijuana have created new opportunities for penny stock fraud,” said Elisha Frank, co-chair of the SEC Enforcement Division’s Microcap Fraud Task Force. “Wherever we see incomplete or misleading disclosures, we act quickly to protect investors.”
Well, as I tweeted at .028/share today:
I would NOT want to over night this stock anymore – If you trade it, it’s best to only trade as a momentum trade INTRADAY but right now it’s about knowing how to limit your risk in OTC land
These are TRADING VEHICLES ONLY NOT INVESTMENTS
How do you limit risk?
1.) Careful with ANY pot stocks as you saw on the recent SEC halts and SEC press release
2.) Do NOT over night heavily promoted companies
3.) Do NOT over night stocks that have bogus “Buyout” and “LOI’s” to be acquired
$FRTD hmmm wonder if they are using the same blue print as $FVSTA … worst PR for those who truly believe this is what halts stuff
— Nathan Michaud (@InvestorsLive) May 19, 2014
I won’t short $FRTD too cheap for the account size that I use but def not an over night from here on out
— Nathan Michaud (@InvestorsLive) May 19, 2014
Does this guarantee you won’t get stuck in a halt? Absolutely NOT
What it DOES do is gives you a better chance of NOT getting stuck in one if you AVOID trading what they are halting …
Fortitude Group, Inc. (FRTD) put out this PR today:
Fortitude Group, Inc. Receives Letter of Intent to Purchase Company
ERIE, PA–(Marketwired – May 18, 2014) – Fortitude Group, Inc. (PINKSHEETS: FRTD) announced today that they received a Letter of Intent (LOI) to be purchased by a fully reporting OTCQB company. The name of the proposed acquirer has been withheld due to the LOI having a confidentiality clause. The LOI also includes a 10-day due-diligence period with an estimated closing date for the transaction of May 30, 2014. Upon completion of the due-diligence period, both companies intend to make a joint announcement to the public as well as file the required 8-k.
The LOI proposes an “in-Kind” share-exchange between both companies whereby upon completion of the merger, the OTCQB Company would be the surviving entity. The acquiring company has valued Fortitudes shares at $.12 per share which is the proposed value Fortitude shareholders would receive upon completion of the merger. This valuation was achieved by combining the industry acceptable valuation of Fortitudes recently acquired data base, the revenue derived from their VaporVites vapor system and adjusting the issued and outstanding stock for the nearly 230 million Fortitude shares which were part of the recently announced Share Buyback program.
Thomas J. Parilla, CEO of Fortitude stated, “This LOI helps support the growth valuation of Fortitude and the price of our stock. We are confident that upon completion of the due-diligence, this merger will close within the proposed timeline. We are pleased with the initial offer of $.12 per share but will leave the specifics to our accountants and attorneys to work through price and terms.”
“confidentiality clause” because the entity is some fake new LLC just created to put a bid in .. probably off shore
“The LOI also includes a 10-day due-diligence period” is other words gives them a solid 10 days of a forward looking event to sell more paper
“acquiring company has valued Fortitudes shares at $.12 per share” … seriously? explain that one? absolute BULLSHIT
All in all there will be the “cult” believers that will bash my article on twitter and will fight me as it goes lower and lower and lower …. even though they are down 50% … 60% … 70% etc
BUT I don’t care about that — for those that read this article and take it seriously …. That’s why I am writing this article
As I wrote in FVSTA … and PLEASE do read the article
One step further this tweet came out yesterday about “Tom” holding all his shares (I haven’t followed but I believe this is the CEO) just in case the tweet gets deleted (Image here) let me tell you this – the CEO isn’t the one who sells the stock the third parties are he is just the front. At first I gave this guy the benefit of the doubt that he was just as lucky as everyone else on pot stocks and made some good money, made some good calls and got an instant cult like following … then when things came down and he “never” sold (in one account) he claimed he “didn’t know” better about taking profits etc but at this point as a ‘leader’ for Monks Den, cult, wolfpack it’s pretty repulsive that he continues to lead to slaughter. Learn first, THEN lead.
Few other comments THIS COMPANY WILL NOT GET BOUGHT OUT – STOP DRINKING THE KOOLAID!
i have NEVER EVER seen a LOI letter of intent for OTC buyout come true. If you know of one let me know Especially a 12x buyout come on lol
— Modern Rock (@modern_rock) May 19, 2014
There’s no OTC action at all today so $FRTD got the attention of everyone trading pennies.I’d be scared to hold overnight BUT intraday is ok
— Modern Rock (@modern_rock) May 19, 2014
Good luck all longs
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