So we should probably address the $QEDN saga. We alerted QEDN in May/June like any other play that we think has some decent prospects and SS to it and it was likely very profitable for many. Running from .01 to .038 is a nice return. Around that time the entire MJ sector was collapsing and QEDN was about the only MJ play that was trending up. So it had the attention of several big MJ players like the Wolf of Weed St. We began discussing with Wolf the possibilities of Emerald, the 300mm O/S, the A/S reduction etc. All of which are still promising catalysts. He decided he wanted to reach out to the company and see if he could get out there and see Emerald himself. We mentioned one of our team lives near Mendocino, maybe he can help him get around when hes up there etc. and agreed to keep in touch on it. At this point were probably in late July/ early August. So, long story short, at some point Wolf reached out to us and said he couldnt make it back out there to get video, would our local guy mind doing it. Arrangements were made and our guy met with Amato out at Emerald and got the video. Initially the video was going to be released on Wolfs site as the earlier pics of the first harvest were. The company apparently saw the video, liked it enough to want to PR it themselves, and they did. Thats about the extent of our involvement with Emerald. We still like the prospects of a US grow ticker despite the rumblings back and forth about the legalities etc. We see bashers on ihub daily and rarely take them seriously because theyre usually operating from a personal agenda. Be it a short position or what have you. During the next few months we watched things unfold and QEDN continue to release solid news. It wasnt reflecting in the PPS but in the summer not much was, so it wasnt a big deal. As far as we were concerned the fundamentals were getting better and the PPS would react once the sector and the market picked back up. It also wasnt a big deal for us to follow QEDN since everything was dead in the summer anyway and we werent watching many tickers. Plus one of our guys had the unique experience of getting to see it which was pretty cool. We did an ihub research report on it, mainly because it was an interesting new service ihub was offering and we wanted to be the first group to actually utilize it, before others caught on. Again, we werent doing much else besides enjoying summer anyway. Now were entering fall, the market is picking up, and the PPS is still dropping. Then we start seeing some interesting market makers as of late. It doesnt take a rocket scientist or a basher to see the company is diluting. Which was a bit surprising especially at these levels. It certainly has to force one to take a harder look at QEDN management and insiders instead of just the potential of Emerald. We feel like many are looking to us as some authority on QEDN, which were not, and we really dont know whats going on at this point. Maybe they need funding, or maybe some of those on ihub that seem to know more about Makmann and this Grandview Capital than we do, are right. We absolutely do know that Emerald is real. We havent had any contact with Steve Amato since the video, though. Maybe they promised him the moon and now hes stuck in California with this massive weed farm, or maybe everything is fine and theres a simple explanation. But for those invested in it, we cant deny this dilution is bullshit. Were sure many are deep red right now. So, at this point we have to just employ some common sense based on what we can learn about QEDN insiders from filings etc. If we go off the premise that often voiced on ihub that its all just a QEDN share selling scheme, for traders, theres still a light at the end of the tunnel. We calculate about 30mm shares have been added since May, give or take. Its an interesting number because the filings show that Grandview Capital has about that many free trading. But they have them at .0037 value. Some others have 004s and 0045s. With the exception of CEO Makmann, theyre not going to dilute under 004 in our opinion. It wouldnt be profitable. Which makes sense why 004 continues to be the bottom lately. So, in our opinion anyone that wants to just trade it or average down would probably do very well accumulating in the low 004s. Theres only so many free trading shares issued. The dilution wont last forever. At some point the selling will dry up and it will reverse. They all do. Thats your choice as investors and traders. After speaking with some pretty smart people on the subject, theyve concluded that Makmann is likely VNDM and Grandview is BMAK. They believe that Makmann (VNDM) just wants to sell some shares for whatever reason. He got some 009s some 006s and some 005s and appears to be done. Grandview (BMAK), on the other hand, they believe is trying to sell 005s and reload their shares from frustrated retail sellers at a PPS near or lower than their current 0037 which could certainly be profitable for them. Theres also the possibility that VNDM was the diluter and BMAK is just a short that plans to cover somewhere cheap. Whatever the case, we believe there will be a concerted effort by some interested retail investors to grab up as many shares in the low 004s that they can and run it back up from there. QEDN is certainly thin when it runs. So there could be a big trade opportunity at these levels soon. For those that found QEDN attractive in the .01s and .02s it should be extremely attractive now, even as just a chart play. So, wed like to see them do well with Emerald, especially for Emeralds sake and maybe this is just some necessary inconvenience in order to make that happen. But, from an objective trading outlook, its clearly oversold and 004s is a great entry. Youre getting insider prices at those levels. Beyond that, with summer over, we really need to get back to covering different promising runners every week and we wont be discussing QEDN much further. Were not strictly an MJ group and in a hot market we need to get back to our normal routine of weekly alerts and bringing our audience more to talk about than QEDN. We recommend directing your QEDN DD questions to Wolf of Weed St. Hes much more the deep DD, on location, long investor, MJ guy than we are. Thanks. #moneymatrix
Posted on: Wed, 08 Oct 2014 22:31:13 +0000
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