|
Wall Street Grand Report
We would like to update our club on some concerns that we have had after seeing the recent surge in our latest pick CNLG. As you might have been aware this pick had one of the most unbelievable short term runs we have ever seen in a Nasdaq stock. CNLG made a run from $1.45 on Wednesday to as high as $4.72 on Monday after our profile for a gain of 226% in just four trading days. Since the high of Monday the stock has seen a steady and sharp decline to the current pps of $2.71.
This run comes after the Company issued two PR’s stating that they have started production of their "GlowWorm" Fiber Optic Detector and another stating that they received "advanced orders of $1.9 Million". Now since the stock has been trading a significant amount (over 40 million shares since last Wednesday) that is very unusual we have decided to dig deeper with our due diligence and get some answers from the Company.
Here are our questions and answers we have received from the Company-
- Question: You have told me that the current and accurate Float of CNLG is 1.1 million shares. Is this statement true? After seeing the stock trade the way it has with a total volume since last Wednesday of over 40 million shares we as well as our members are concerned that the float you have told us could potentially be inaccurate. Please advise immediately.
Answer: TOTAL issued and outstanding Conolog common shares is 3,619,874 (this includes the latest conversions by our investors) The current float of CNLG is 1.69 million shares.
- Question: Do you know how and why the stock has been trading the kind of volume it has? We saw the news that was issued and from the latest PR what does "Advanced Orders Valued at" really mean? Please give me a better understanding and explanation.
Answer: We have no idea why the stock has been trading so actively considering the small float. Mr. Benou also stated that he believes that is is just day traders getting in and out of the stock. Advanced orders are when customers call to give us a "heads-up" concerning their requirements and the orders being prepared and the configurations they will need. The PDR equipement is highly sophisticated and some configurations have more than 2000 parts each.
Answer: From time to time our Board recommends a stock incentive plan for the benefit of employees and consultants. This occurred at the Board meeting of Sept. 24, 2009 and subsequently submitted to the shareholders for their vote. The shareholders voted 96.4% in favor. This was followed by the filing of the filing of the S-8 which on page 13 lists the shares attributed to each grantee.
Events and timeline leading to the issuance of shares listed in the S-8 filing:
- Sept 24, 2009 Conolog Board and Shareholders approve the granting of 780,000 shares under the stock incentive plan.
- November 20, 2009 Restricted shares were issued per the approval.
- February 1, 2010 the S-8 was filed to register the approved shares.
- February 4, 2010 the attorneys (SRFF) issued their opinion to the transfer agent regarding the 780,000 shares and the list and quantity of shares per recipient that may sell.
- Based on the above timeline you can clearly see that none of those listed in the S-8 could have sold any shares, and none have sold any of those shares before today. Marc and I, the recipients of more than half those shares have not sold and have no intention of selling at this time.
This clearly demonstrates that the large volumes were market purely transactions.
__________________________________________________________
Now we are still concerned with this volatile stock since it is trading the way it is so we hope many of you were able to capitalize at the top when we stated to not be afraid to take profits. CNLG has had an amazing run for our members running from our pick price of $2.11 to as high as $4.72, for a gain of 124% gain. After opening on Monday at $3.40 our club could have potentially captured gains of 39%. We hope that this information helps everyone with their due diligence. Remember, always do your own due diligence and read the sec filings.
More Updates To Come …
Help Spread the word about Wall Street Grand!
You can call us Toll free at 1888-9-Club Grand (1888-925-8247)
Offices are open Monday – Friday, 9:30 am-4:00 pm EST
|
