A High-Risk, High-Reward Pick.

Raskolnikov

Since none of you seem too keen on safe picks using fundamental analysis - here's one that has almost no figures whatsoever and is highly speculative which will certainly be a rollercoaster and maybe very profitable.

Last year, I bought stock in a company that I have been following for quite some time called Southpeak Interactive (ticker - SOPK). The company are a publisher of video games for PC and all major consoles. Since they were floated in 2007, they have lost bucketloads of cash because they've been hammered by the recession, and they've also released quite a lot of lousy titles. There is some reason for optimism though.

Positives
- Video games market is finally turning -hopefully the worry that everyone would turn to playing Apple/Facebook games will dissipate.
- I have talked with management several times. The Chairman has personally sunk tens of millions of his own dollars into this, several years of time and stress, and has taken paycuts to save the company money. Most recently, he has granted creditors liens on his shareholding and personal assets. The people here are honest, and all personally and financially commited to this project.
- No one follows this company, share volumes are non-existant. Like I said, I've talked to managment, I am probably one of the few people who have approached them to ask about the company, no analysts follow it.
- Potential is huge. They only need one hit and this thing could go up ten times. Even if they can just put out a steady stream of moderately successful titles, this stock would go up 2x/3x.
- They have some great titles planned for 2011. Two Worlds 2 in particular could be a huge hit, pre-orders in Germany (where it's being released first) have been very, very good. They're also have the rights for Stronghold 3 (franchise has sold 5 million units) and they're publishing an inaugural Playstation Move title called Get Fit With Mel B.

Negatives
- Balance sheet is beyond awful - although they probably have enough cash to fund losses for another year.
- They have been in so much litigation, it would make your head spin.
- There is a very real possibility this could go to zero.
- They may have lost the licence for one of their biggest titles - see litigation.

At $0.26, I think the risk-reward ratio would favour the aggressive and shrewd investor. If these guys could get revenue up to $100 million, then they could possibly do $10 million in EBITDA. If that happens, the growth investors would pile in, analysts would start following it, this thing could have a market cap of $200 million, 13 times or so what it is now. That's a best case. A more realistic scenario would be revenue of $75 million or so and EBITDA of $3 million. That would give you a valuation of €45 million, 3 times the current share price.

I have a position in this and have recently bought a big chunk at $0.21. This is all highly speculative stuff so do your own research before you take my investment advice and yadda-yadda-yadda.

ixus

Refreshing analysis Rask. Thanks for that. It's a decent template that others should use...

Now, back to type. Down with that sort of thing!

turbobaby

Interesting indeed!

No sign of it using the TD Waterhouse portal. It must be because it's listed on the OTC:BB.

Would have like to have looked into this alright.

Raskolnikov

Yea, it's traded OTC. I didn't realise thtat TD Waterhouse didn't allow you to trade those stocks - that's a pain.

By the way, I see that their title, Two Worlds 2 is the 23rd top selling computer game on amazon.de (the title isn't being released in the UK/USA until January next year). If that sort of success was to be repeated across the other formats and geographical areas, that would translate to a very major hit for a company like Southpeak.

displaced dub

Why as an independent game maker are they not developing titles for IOS devices is beyond me, they obviously have the expertise to do so as they are developing for other platforms and as you probably have noticed one or two other developers of IOS titles have been bought out by bigger firms for serious money that makes the liverpool takeover amount look average.

IOS by the way for those who dont know is the operating software in iphones, ipads and ipod touches and god knows what else by this time next year.

Excellent post by the way rask

Raskolnikov

displaced dub wrote: »

Why as an independent game maker are they not developing titles for IOS devices is beyond me, they obviously have the expertise to do so as they are developing for other platforms and as you probably have noticed one or two other developers of IOS titles have been bought out by bigger firms for serious money that makes the liverpool takeover amount look average.

IOS by the way for those who dont know is the operating software in iphones, ipads and ipod touches and god knows what else by this time next year.

Excellent post by the way rask

I should have talked about their business model more. This company doesn't actually develop the titles in-house like EA/Activision/THQ/etc. Developers come to Southpeak with their game/idea, if the developers need an advance to develop the game, Southpeak will pay out an advance in lieu of profits. Then they'll take the game, produce, market and distribute it. It's a much better model then the likes of the major developers because it means the product line will never get stale and their costs are much lower.

As for IOS games, I have talked with someone in the company about this. He said that right now, the market just isn't big enough. For one, Apple take as 30% cut of the revenue - that's massive compared to Sony/MS/Nintendo. Secondly, you need to sell in the order of millions to make any money. Only the very best apps get into this category, so the risk to reward is just not there. However, if the numbers are there in the future though, they can, and will move into this market.

hmmm

Raskolnikov wrote: »

The people here are honest, and all personally and financially commited to this project.

I started reading their recent 10k, I didn't get far because companies like this are too speculative for my appetite.

This in particular caused me concern

Our Chairman is subject to an SEC cease and desist order.

Our Chairman, Mr. Terry Phillips, agreed, in May 2007, to a settlement with the Securities and Exchange Commission, or SEC, in a proceeding arising from certain actions in 2000 and 2001. Without admitting or denying the allegations, Mr. Phillips agreed to consent to the entry of an order to cease and desist from committing or causing any violations of Section 10(b) of the Securities Exchange Act of 1934, or the Exchange Act, and Exchange Act Rules 10b-5 and 13b2-1 and from causing any violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Exchange Act Rules 12b-2, 13a-1 and 13a-13.

This looks like the original SEC filing
http://www.sec.gov/litigation/complaints/2007/comp20100.pdf

As the 10k says, nothing was admitted or denied.

This is in the 10k further on in the legal proceedings section

On September 3, 2010, we, Terry Phillips, our chairman, and Melanie Mroz, our CEO, received Wells Notices from the staff of the Securities and Exchange Commission advising that the staff will recommend to the Securities and Exchange Commission that cease and desist orders issue for alleged violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities and Exchange Act and Rules 12b-20 and 13a-13 adopted under this act. In addition, the staff has alleged violations by Mr. Phillips and Ms. Mroz of Rule 13b-2 and Rule 13a-14 by Ms. Mroz. These alleged violations result from the facts underlying the need to file an amended Form 10Q/A for the fiscal quarter ended March 31, 2009.

Presumably relating to this

If we fail to maintain effective internal control over financial reporting and disclosure controls and procedures in the future, we may not be able to accurately report our financial results, which could have an adverse effect on our business.

If our internal control over financial reporting and disclosure controls and procedures are not effective, we may not be able to provide reliable financial information. Subsequent to the filing of the Form 10-Q for the period ended March 31, 2009, we determined that our condensed consolidated financial statements as of March 31, 2009 and for the three- and nine-month periods ended March 31, 2009, as included in the Form 10-Q for the period ended March 31, 2009, should be restated as they contained errors that resulted in misstatements of inventories, accounts payable, accrued royalties, accrued expenses and other current liabilities, due to shareholders, additional paid-in-capital, product costs, royalties, sales and marketing and general and administrative expenses. Accordingly, we restated our condensed consolidated financial statements as of March 31, 2009 and for the three- and nine-month periods ended March 31, 2009. In connection with this restatement, we determined that our internal control over financial reporting during the period ended March 31, 2009 was not effective due to the existence of material weaknesses in our internal control over financial reporting relating to our quarter-end closing process, our controls over related party transactions, our general and administrative expense accruals and our reconciliation of inventory liability clearing accounts.

The highlighted bit in particular gives me concern, as well as the nagging feeling that someone who was subject to SEC action should really be paying more attention to internal controls. It looks like this is fixed now however, in particular they have appointed a CFO.

I didn't look at the financial statements in detail, but I would be concerned about their cash position. They have signed some deals which may help their cash situation, but I haven't been able to untangle them.

Raskolnikov

I did say that this was very speculative, you do have to look past an awful lot here.

The first incident was indefensible - there was definitely financial engineering going on to juice up the numbers for Take Two. It was ten years ago, and nothing of its sort has happened since. The second incident was as a result of mistatement of the financials by the previous CFO who was then sacked. If you look at the difference between the two quarterly reports - it's clearly too ridiculous to have been any attempt to deceive shareholders. As for the cash situation for 2009/2010 certainly wasn't good, if you keep digging, you'll see that creditors went unpaid, lawyers got involved and everything got very messy. Since then, money has been raised since though and an extended line of credit has been established. The new capital structure is complicated, but from the maths I've done there should be no solvency/liquidity problems in the next year, at very least.

I will say one thing about the CEO. He has put tens of millions of his own cash into this. If it goes bankrupt, he loses a LOT of his own money.

pirelli

Raskolnikov wrote: »

Since none of you seem too keen on safe picks using fundamental analysis - here's one that has almost no figures whatsoever and is highly speculative which will certainly be a rollercoaster and maybe very profitable.

Last year, I bought stock in a company that I have been following for quite some time called Southpeak Interactive (ticker - SOPK). The company are a publisher of video games for PC and all major consoles. Since they were floated in 2007, they have lost bucketloads of cash because they've been hammered by the recession, and they've also released quite a lot of lousy titles. There is some reason for optimism though.

Positives
- Video games market is finally turning -hopefully the worry that everyone would turn to playing Apple/Facebook games will dissipate.
- I have talked with management several times. The Chairman has personally sunk tens of millions of his own dollars into this, several years of time and stress, and has taken paycuts to save the company money. Most recently, he has granted creditors liens on his shareholding and personal assets. The people here are honest, and all personally and financially commited to this project.
- No one follows this company, share volumes are non-existant. Like I said, I've talked to managment, I am probably one of the few people who have approached them to ask about the company, no analysts follow it.
- Potential is huge. They only need one hit and this thing could go up ten times. Even if they can just put out a steady stream of moderately successful titles, this stock would go up 2x/3x.
- They have some great titles planned for 2011. Two Worlds 2 in particular could be a huge hit, pre-orders in Germany (where it's being released first) have been very, very good. They're also have the rights for Stronghold 3 (franchise has sold 5 million units) and they're publishing an inaugural Playstation Move title called Get Fit With Mel B.

Negatives
- Balance sheet is beyond awful - although they probably have enough cash to fund losses for another year.
- They have been in so much litigation, it would make your head spin.
- There is a very real possibility this could go to zero.
- They may have lost the licence for one of their biggest titles - see litigation.

At $0.26, I think the risk-reward ratio would favour the aggressive and shrewd investor. If these guys could get revenue up to $100 million, then they could possibly do $10 million in EBITDA. If that happens, the growth investors would pile in, analysts would start following it, this thing could have a market cap of $200 million, 13 times or so what it is now. That's a best case. A more realistic scenario would be revenue of $75 million or so and EBITDA of $3 million. That would give you a valuation of €45 million, 3 times the current share price.

I have a position in this and have recently bought a big chunk at $0.21. This is all highly speculative stuff so do your own research before you take my investment advice and yadda-yadda-yadda.

posted by:hmmm
This looks like the original SEC filing
http://www.sec.gov/litigation/compla.../comp20100.pdf

wow! Read that and more trouble on the way.

You seem to have done some DD here Raskolnikov but have neglected to properly explain the risks with this OTC. I am actually dissappointed you and the others could see a nasdaq listed stock with excellent growth such as the ones i recommended as more of a risk than a cash strapped otc in serious trouble with the SEC.

While the shares outstanding are not that high they have been diluted by 30 million since last year. If they are diluting and are cash strapped then the share price will suffer.

Any company in serious violation with the SEC is destined to go nowhere or down if anywhere. They will really need some serious fortune to recover from this tail spin. Cramers number one rule is to avoid companies in serious trouble with SEC. SOPK.OB are in it deep. They seem to change shares outstanding every quarter.


GMCR recently had made an error in their accounting and they have suffered. This is a company with unlimited growth potential and a brilliant product that will struggle to create new highs all because of a slight error. You have to pay attention to a companies in trouble with SEC.

Analysts will never touch this stock. Why not just buy a solar Stock after a correction. At least you can bank some profit and take your money off the table when you need it.


With such a low volume your might get stuck in this with a lackluster spread. ATVI which can boast enormous sales with mega hits has gone nowhere in share value since 2009. It also took 6 years for ATVI to start it's uptrend. Maybe SOPK when it gets going will follow ATVI success and reap 1000% gain and become a Motley fool wonder stock.

I would like to wait and see if they dilute next quarter and if the SEC ever stops hounding them. If the problems persist than it's possibly a luctrative business and but may never ever be a good investment and being cash strapped they will not post profits for year to avoid tax payments. I do not share your vision on this stock.


Good luck suckers.

Raskolnikov

pirelli wrote: »

You seem to have done some DD here Raskolnikov but have neglected to properly explain the risks with this OTC. I am actually dissappointed you and the others could see a nasdaq listed stock with excellent growth such as the ones i recommended as more of a risk than a cash strapped otc in serious trouble with the SEC.

Dozens of Chinese companies with listing on the NASDAQ have now been exposed as fraudulent, there are many people visiting the facilities of these companies only to find they don't exist, or are widely overstated.

chinesecompanyanalyst.com
waldomushman.com

In your posts, you have traded in several stocks that either have fraud concerns, or have been proven as fraudulent. A company in distress is one thing, a fraud is quite another.

pirelli wrote: »

Analysts will never touch this stock. Why not just buy a solar Stock after a correction. At least you can bank some profit and take your money off the table when you need it.

With such a low volume your might get stuck in this with a lackluster spread. ATVI which can boast enormous sales with mega hits has gone nowhere in share value since 2009. It also took 6 years for ATVI to start it's uptrend. Maybe SOPK when it gets going will follow ATVI success and reap 1000% gain and become a Motley fool wonder stock.

Analysts will go after whatever is hot. Like I have said, this company only needs one hit and the share price will explode. A few moderately succesful titles (like it may have this year) and the share price will go up 2/3 times.

Finally, this is not a stock to actively trade. The timeline you need to be looking at here is one year.

ixus

Ok, I've removed the last five posts between Rask and Pirelli. I'll go for the angle of let's keep this on topic.

There's been enough tit for tat of late on this forum.

I think Rask's risk disclosure's and analysis have been pretty clear.
If I was to invest in such a company it would only be an amount that I wouldn't lose any sleep over if it went to 0.

Raskolnikov

I see that Two Worlds 2 is now the 5th best selling computer game on all formats on Amazon.de (it's being released in mainland Europe before other regions). If those kind of sales are even remotely replicated in the USA and UK, then I will make an absolute fortune.

http://www.amazon.de/TopWare-Entertainment-GmbH-Two-Worlds/dp/B001DRR5SO

Raskolnikov

Reviews have been positive too so far.

Eurogamer.de have given the game 9/10 - aren't they reputable?

pirelli

Raskolnikov wrote: »

Reviews have been positive too so far.

Eurogamer.de have given the game 9/10 - aren't they reputable?

Sounds good. Maybe this needs looking at again.

The volume is so low that the share price could drop rather easily which would be my worry and also it's not a marginable stock and your tying money up with a wide spread. However it does seem to have exciting products but the question is if this is a big enough deal to anticipate; No! guarantee a stampede at some point in the future.

IDLM is a media version similar to this company and similar share price that makes Games for facebook etc. It suffers from a low volume also.

Cute Hoor

Last trade .135, down over 50% today, did something happen

pirelli

Cute Hoor wrote: »

Last trade .135, down over 50% today, did something happen

Not sure but a good entry Point. I might actually snap some shares up but i doubt the MM will give them to me at this price.

ttmd

Ok guys since we are talking about video games here, I would just like to jump on related company, does anyone think it may be an idea to investigate short postions on Activision?

My initial thoughts -

I have not looked at Blizzard side of business (I have a feeling that WOW will continue to be a good earner though), but there are signs there that their main franchises - Call of Duty and Guitar Hero - are running out of steam. Both of these franchises are in increasingly competitive genres.

This could a mean that a huge amount rides on their deal with Bungie. They also seem to be trading on huge P/E ratio, in what is IMO, a highly unstable sector.

A huge amount of their valuation must be down to WOW, but in short they only can expect people to pay for the same game for so long.

pirelli

ttmd wrote: »

Ok guys since we are talking about video games here, I would just like to jump on related company, does anyone think it may be an idea to investigate short postions on Activision?

My initial thoughts -

I have not looked at Blizzard side of business (I have a feeling that WOW will continue to be a good earner though), but there are signs there that their main franchises - Call of Duty and Guitar Hero - are running out of steam. Both of these franchises are in increasingly competitive genres.

This could a mean that a huge amount rides on their deal with Bungie. They also seem to be trading on huge P/E ratio, in what is IMO, a highly unstable sector.

A huge amount of their valuation must be down to WOW, but in short they only can expect people to pay for the same game for so long.

Perhaps but i do not see a good risk reward ratio for a short side gamble. Granted the share price is relatively low giving a large percentage to dollar ratio.

However it's not exactly very high either and you would have to go back to 2006to see any downside. It must have plenty of cash and where it is now i can not see why it can't release more successful games. Maybe you there is 10% short side even 20% but WHEN is the question. There is also a 10% upside potential too.

Cute Hoor

SouthPeak Interactive Corporation Reports Financial Results for First Quarter of Fiscal 2011

Last update: 11/15/2010 4:01:01 PMMIDLOTHIAN, Va., Nov 15, 2010

(BUSINESS WIRE) -- SouthPeak Interactive Corporation (SOPK) today announced financial results for the fiscal 2011 first quarter ended September 30, 2010. Melanie Mroz, CEO of SouthPeak said, "Our sales for the period were largely impacted by our ongoing legal proceedings with Nobilis which caused us not to release any new titles for the quarter or remanufacture our catalogue of titles under this contract. I'm pleased to report that in October we received a summary judgment granting us the right to resume production of My Baby(TM) First Steps and reinstate the contract with Nobilis, which includes the rights for My Baby sequels, catalogue titles and 14 additional games. ......

See edit

pirelli

pirelli wrote: »

Not sure but a good entry Point. I might actually snap some shares up but i doubt the MM will give them to me at this price.

I set the order but couldn't get filled. I think i might just throw a buy order in low and leave it there. Pick up some on a dip.

Cute Hoor

Not exactly sure what you mean here ixus, these are SouthPeak Interactive Corporation Financial Results for First Quarter of Fiscal 2011 as announced after the markets closed this evening and posted on their website
http://investor.southpeakgames.com/southpeakgames/default.asp

Apologies if I've caused any grief or if this is not allowed.

ixus

Cute Hoor wrote: »

Not exactly sure what you mean here ixus, these are SouthPeak Interactive Corporation Financial Results for First Quarter of Fiscal 2011 as announced after the markets closed this evening and posted on their website
http://investor.southpeakgames.com/southpeakgames/default.asp

Apologies if I've caused any grief or if this is not allowed.

No problem, I wasn't sure what it was, whether it had come from a pay to view site. Cheers.

Raskolnikov

Like I said, there's literally no liquidity with this stock. That means if there's a forced seller, then there might not be a buyer standing in and the share price could be cut in half.

I have spoken with the Chairman regarding the loss of the My Baby franchise and he has said that there is a preliminary judgment in favour of Southpeak so hopefully this litigation will turn out positive.

I am not too bothered about the Q1 results as Southpeak didn't actually release any new titles in this quarter.

Raskolnikov

I think the next 6 months will be make or break for the company. The coming titles are some of the strongest they've ever released so if we don't see results on these, I will concede defeat. Until then though I think this is still worth hanging in with, especially considering that we should get at least 1 hit out of these titles.

pirelli

Raskolnikov wrote: »

Like I said, there's literally no liquidity with this stock. That means if there's a forced seller, then there might not be a buyer standing in and the share price could be cut in half.

I have spoken with the Chairman regarding the loss of the My Baby franchise and he has said that there is a preliminary judgment in favour of Southpeak so hopefully this litigation will turn out positive.

I am not too bothered about the Q1 results as Southpeak didn't actually release any new titles in this quarter.

Yes Cute hoor posted all that info before IXUS deleted it. They have retained the rights and 14 other games.

I think NSMG is a much better play. If bought at the very cheapest which it was a few weeks ago. A couple of hundred dollars would reap big in Late summer. I suppose something like this can't last forever but im hoping next year works out also.

Athlone_Bhoy

Who's NSMG?

pirelli

Athlone_Bhoy wrote: »

Who's NSMG?

He is Brian Cowens friend from Athlone.

Nama serves miserable gob****es

hmmm

By NSMG do you mean this company?


NSMG News DJ CORRECT(10/29): Duo Sentenced To Prison For 'Pump-and-Dump')

Saturday, October 30, 2010 8:55 AM

DOW JONES NEWSWIRES

A securities attorney and a former stock broker were sentenced Friday to more than a decade in jail each and forfeit in excess of $43 million for their roles in a pump-and-dump stock manipulation scheme.

G. David Gordon, a securities attorney, and Richard Clark, a businessman and former stock broker, were convicted by a federal jury in Oklahoma on May 3 of more than a dozen counts each.

The duo allegedly, between 2004 and 2006, along with others to have manipulated three publicly traded penny stocks, equities that trade for less than $5 a share in the over-the-counter market rather than on national exchanges.

Two based in Tulsa at the time of the scheme were among those whose stock was manipulated: Deep Rock Oil & Gas Inc. (DPRK), and Global Beverage Solutions Inc. (GBVS), formerly known as Pacific Peak Investments. Clark is a former chief executive of Global Beverage. The third was National Storm Management Group Inc. (NSMG).

The Justice Department said in a statement Friday that evidence at trial showed the defendants hid and "parked" their shares with various people or entities, after which "they engaged in coordinated trading in order to create the appearance of an emerging market for these stocks, after which they conducted massive promotional campaigns in which unsolicited fax and e-mail 'blasts' were sent to millions of recipients."

Gordon, 48 years old, was sentenced to 188 months in prison while Clark, 62, received a 151-month sentence. Four others pleaded guilty in related cases while two remain at large.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=... You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

October 30, 2010 08:55 ET (12:55 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.- - 08 55 AM EDT 10-30-10

Source: DJ Broad Tape

pirelli

hmmm wrote: »

By NSMG do you mean this company?


NSMG News DJ CORRECT(10/29): Duo Sentenced To Prison For 'Pump-and-Dump')

Saturday, October 30, 2010 8:55 AM

DOW JONES NEWSWIRES

A securities attorney and a former stock broker were sentenced Friday to more than a decade in jail each and forfeit in excess of $43 million for their roles in a pump-and-dump stock manipulation scheme.

G. David Gordon, a securities attorney, and Richard Clark, a businessman and former stock broker, were convicted by a federal jury in Oklahoma on May 3 of more than a dozen counts each.

The duo allegedly, between 2004 and 2006, along with others to have manipulated three publicly traded penny stocks, equities that trade for less than $5 a share in the over-the-counter market rather than on national exchanges.

Two based in Tulsa at the time of the scheme were among those whose stock was manipulated: Deep Rock Oil & Gas Inc. (DPRK), and Global Beverage Solutions Inc. (GBVS), formerly known as Pacific Peak Investments. Clark is a former chief executive of Global Beverage. The third was National Storm Management Group Inc. (NSMG).

The Justice Department said in a statement Friday that evidence at trial showed the defendants hid and "parked" their shares with various people or entities, after which "they engaged in coordinated trading in order to create the appearance of an emerging market for these stocks, after which they conducted massive promotional campaigns in which unsolicited fax and e-mail 'blasts' were sent to millions of recipients."

Gordon, 48 years old, was sentenced to 188 months in prison while Clark, 62, received a 151-month sentence. Four others pleaded guilty in related cases while two remain at large.

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=... You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

October 30, 2010 08:55 ET (12:55 GMT)

Copyright (c) 2010 Dow Jones & Company, Inc.- - 08 55 AM EDT 10-30-10

Source: DJ Broad Tape

By your post do you mean NSMG is guilty of any wrong doing in connection with this which happened over 4 years ago.

The people convicted in this, didn't run NSMG. Gordon,was a Securities Attorney and Clark, was a stock broker.

They were no way involved in NSMG's company operations. These were pump and dump scam artists that manipulated a few different stocks. NSMG happened to be one of them. This was over 4 -6 years ago.

NSMG are still trading years later; are they not?

The crooks here are stockbrokers and the securties Attorney's and posters with sloppy ill-informed sarcasm, but not traders like myself. I am not guilty of a crime.This is already up 100% from where i said it was a good entry point. Is sopk up 100%. No! but it has dropped 50% since.

hmmm

pirelli wrote: »

By your post do you mean NSMG is guilty of any wrong doing in connection with this which happened over 4 years ago.

Where did I say that? Don't be putting words into my mouth.

What is the most recent audited set of NSMG accounts? Why is the last 10k I can find a few years old?

There's some fascinating stuff in the most recent 10q I can find (October).
http://www.otcmarkets.com/stock/NSMG/financials
It's entertaining reading for anyone who likes this stuff, I particularly liked the snippet about "John Fife".

I hope to god no-one on this forum is buying this stock based on your recommendation, I can't figure out whether the company actually does anything.

pirelli

hmmm wrote: »

Where did I say that? Don't be putting words into my mouth.

What is the most recent audited set of NSMG accounts? Why is the last 10k I can find a few years old?

There's some fascinating stuff in the most recent 10q I can find (October).
http://www.otcmarkets.com/stock/NSMG/financials
It's entertaining reading for anyone who likes this stuff, I particularly liked the snippet about "John Fife".

I hope to god no-one on this forum is buying this stock based on your recommendation, I can't figure out whether the company actually does anything.

Come on HMMM you know you were trying to take the piss. Be a man and own up!

Now that we have basically gotten around your previous post we are now onto another topic 'the 10Q'. It appears revenues are dropping and common outstanding shares are higher since 2007. Perhaps this might be enough to offset the pattern that has developed in the seasonal share price fluctuations. However for a punt of $150 dollars to make a profit over $2,000 dollars, I think it's worth a roll of the dice. Odds like that are hard to find.

If you like I will refund 25% of your loss if you give me 50% of your profit.

However it may well be the case that this year NSMG does not rise as it has done for the previous many years but there is nothing and you sell for a loss on the spread and lose $30 or something. So what!

hmmm

pirelli wrote: »

Come on HMMM you know you were trying to take the piss. Be a man and own up!

WTF are you on about?

Now that we have basically gotten around your previous post we are now onto another topic 'the 10Q'.

"normal" investors read things like 10Qs. Unless they believe the words of P&D merchants.

It appears revenues are dropping and common outstanding shares are higher since 2007. Perhaps this might be enough to offset the pattern that has developed in the seasonal share price fluctuations.

What does that even mean? This company is being extensively diluted, read about Mr Fife and his loans. This is voodoo investing.

However for a punt of $150 dollars to make a profit over $2,000 dollars, I think it's worth a roll of the dice. Odds like that are hard to find.

You'd have as much enjoyment and better odds betting on the roulette wheel.

However it may well be the case that this year NSMG does not rise as it has done for the previous many years but there is nothing and you sell for a loss on the spread and lose $30 or something. So what!

I've no idea what that's supposed to mean. I'm trying to make up my mind whether you're clueless or whether you're a scammer.

pirelli

hmmm wrote: »

WTF are you on about?

"normal" investors read things like 10Qs. Unless they believe the words of P&D merchants.

What does that even mean? This company is being extensively diluted, read about Mr Fife and his loans. This is voodoo investing.

You'd have as much enjoyment and better odds betting on the roulette wheel.

I've no idea what that's supposed to mean. I'm trying to make up my mind whether you're clueless or whether you're a scammer.

Your really are clueless. I'm tired of arguing with B*S posters like you. I am not the citzens information Bureau and guess what scammer either are you. Your not an officer or a authority figure or an editor of consumer weekly. Your an imposter trying to pretend your something your not; like an securites officer or financial vigilante. It's so sad and pathtetic and worst of all your in one of the most debt ridden ****holes in europe.

If some individual wishes to research a company there is so many internet servcies available for these people. We and most of I do not have to listen to any more imposters living the fantasy life as an official regulator or some consumer awarness reporter warning fictional internet people about every friggin pitfall.

If they ( and they are fictional ( unless bertie ahern trades) ) cannot use the internet ( which they friggin can) then i am not in the least bit worried they would be able to set up an account which is no easy feat and start trading which is an even harder feat.

Let them do their own work and contribute, what's the point in constantly defending these fictional internet people that never contribute because they don't actually exist.



This is a simple punt that has worked not for days nor weeks or months but for years. The chart has delivered flawlessly for years. Half a decade.

The 10Q's if you had bothered to notice were only introduced in 2009.. they are and were caveat empire for years.

Anyone that trades options is essentially gambling as is any one spread betting. They are well able to decide risk for themselves. I bet you that NSMG will deliver just as promised and when it does next year you should take your crap and never coem back here ever again.

The last punt I suggested was GYSN ( greyson) it's a just as bad as NSMG but i suggested buying at .7 and just last month it ran to .17. That was based on the pattern behaviour of the chart. It has nothing what so ever to do with the business.

pirelli

hmmm wrote: »

WTF are you on about?

"normal" investors read things like 10Qs. Unless they believe the words of P&D merchants.

What does that even mean? This company is being extensively diluted, read about Mr Fife and his loans. This is voodoo investing.

You'd have as much enjoyment and better odds betting on the roulette wheel.

I've no idea what that's supposed to mean. I'm trying to make up my mind whether you're clueless or whether you're a scammer.

NSMG is up 200% in November from where My suggested October entry price was. That 150 dollars is already 450 dollars.

pirelli

Raskolnikov wrote: »

I think the next 6 months will be make or break for the company. The coming titles are some of the strongest they've ever released so if we don't see results on these, I will concede defeat. Until then though I think this is still worth hanging in with, especially considering that we should get at least 1 hit out of these titles.

So where to go from here Raskolnikov. What do you suggest. I am interested in snapping up some shares at this price and my reason for that is I see this following IDLM previous price behaviour. They are very similar.

hmmm

pirelli wrote: »

NSMG is up 200% in November from where My suggested October entry price was. That 150 dollars is already 450 dollars.

Who'd ever have guessed that a lightly traded penny stock can vary widely. :rolleyes: If you'd guessed the right number at roulette your 150 dollars would now be worth 35 times that.

What's the spread on this stock? What's the daily average volume?

Raskolnikov

I bought a little more to bring my average cost down to the high teens level. It's now 1.75% on my portfolio and my position sizing limits dictate that I cannot increase my holdings in such a risky position.

Two Worlds 2 has apparently sold 1 million copies in Europe, so if it doesn't make dough in the States in the New Year, I will probably just give up on this stock.

pirelli

hmmm wrote: »

Who'd ever have guessed that a lightly traded penny stock can vary widely. :rolleyes: If you'd guessed the right number at roulette your 150 dollars would now be worth 35 times that.

What's the spread on this stock? What's the daily average volume?

The spread and volume are very tradeable and vary until around April when it starts to receive a large volume. It's a cyclical Play, That 150 dollars will be worth close to $2000 by Summer 2011.

In regards varying in price ...You would be very lucky to get octobers prices again which i am holding out for.

pirelli

Raskolnikov wrote: »

I bought a little more to bring my average cost down to the high teens level. It's now 1.75% on my portfolio and my position sizing limits dictate that I cannot increase my holdings in such a risky position.

Two Worlds 2 has apparently sold 1 million copies in Europe, so if it doesn't make dough in the States in the New Year, I will probably just give up on this stock.

Well at this price it might be worth getting a few shares and averaging down later. There are so many scams out there and this being in trouble with SEC doesn't help.
In fact this is a shot in the dark that investors turn their attention to it. However it sounds like it has the right PR and product that excite OTC investors so will eventually be picked up but at what price?

Raskolnikov

Raskolnikov wrote: »

I have spoken with the Chairman regarding the loss of the My Baby franchise and he has said that there is a preliminary judgment in favour of Southpeak so hopefully this litigation will turn out positive.

http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=SOPK.OB&timestamp=20110110233800

SouthPeak Interactive Corporation announced that it has won a significant lawsuit relating to the disputed North American publishing rights for the My Baby game franchise which has sold over one million units in North America to date. SouthPeak Interactive initiated wrongful termination proceedings before the Lyon Commercial Court by filing a complaint against Nobilis Group SAS. SouthPeak's complaint contended that Nobilis Group terminated the distribution agreement without legal basis. On December 7, 2010, the Lyon Commercial Court issued a judgment confirming that Nobilis's termination of the distribution agreement was null and void. The Court has ordered that Nobilis restore SouthPeak's ability to manufacture licensed games under the agreement with immediate effect.

Excellent news for Southpeak. With Two Worlds 2 getting great reviews and selling very well in Europe, I am feeling much better about this one now.

swagger121

petroceltic look a fairly good bet considering their news update today

Dots1982

Bought up some of these shares at 0.19 on my Keytrade account. Below is the preview of the game in the Official XBOX magazine.

Fw: http://www.oxm.co.uk/article.php?id=25034

Raskolnikov

http://gamrconnect.vgchartz.com/thread.php?id=123958

Apparently stock of Two Worlds 2 is selling out in some stores.

yankinlk

In at .15 Rask. Owe you a pint if it works out

poodles

RMP are worth a look for high rish / reward

http://boards.ie/vbulletin/showthread.php?t=2056162076

Raskolnikov

http://www.sec.gov/Archives/edgar/data/1336262/000114420411031806/v223853_10q.htm

Southpeak did $0.06 cents a share in earnings this quarter, mostly due to the success of Two Worlds 2. We could finally be starting to come good on this.

Grecco

Well lad,
When do these shares go ex-div or is it gone past the date as I think the SP has jumped 6 cent already but I could be wrong
cheers

Tyrant^

Grecco wrote: »

Well lad,
When do these shares go ex-div or is it gone past the date as I think the SP has jumped 6 cent already but I could be wrong
cheers

Its been jumping back and forth between .18 and .21 for a few months
Currently at .24

Stronghold 3 is another big title for SOPK coming out in summer I think...

irishh_bob

not sure if this stock fits into the category , high risk - high reward

mulberry group ( which makes designer hats ) has risen over 500% in value in the past twelve months , with that kind of growth , i imagine it was a high risk not too long ago