For all of you who haven’t read An American Hedge Fund or watched my PennyStocking instructional DVD Package, back in March, I wrote about CYGT being the stock, the sole reason, as to why my hedge fund lost 35ish% over 2 years in 2006 and 2007 (see blog post HERE).
Tough, tough, tough, tough, tough lesson, but it made me more cynical, conservative, an infinitely better teacher and even more determined to stick to my core trading strategy, a strategy that has yet to produce a huge loss, especially when I stay true to its quick loss cutting principles.
Anyway, that bankruptcy filing was pretty much the end of the story for me and the 1 million+ shares of CYGT I’ve still got–maybe I’ll frame the stock certificates as a reminder of how corrupt/bad/lying/failing (not personal just business) ALL these tiny companies are–but the other day came the nail in the coffin as the company was auctioned off (read filing HERE).
Perhaps it’s telling that the buyer was V3 Enterprise Solutions, LLC, a mystery company that shares the same address with V3 Capital, a firm that stresses “growth in shareholder value” (laughable) and PARC Management, LLC, the very same guys who took over some Six Flags properties a while back.
This line in the filing says it best: No distribution is expected for CYGT shareholders.
I’ll spell it out for ya: V3 stands for vultures, vultures, vultures, PARC wanted CYGT’s awesome software to help/save their failing parks and CYGT’s new management didn’t want to deal with the skeletons they inherited from CYGT’s old management (maybe they come aboard PARC?). Might as well write out “bankruptcy is painless” all over the CYGT headquarters as this was a perfect setup.
It’s not personal, it’s business.
And this my friends is how most of these Pink Sheet/OTCBB-listed pathetic excuses for companies end. If they’re lucky. Debtholders get pennies on the dollar, acquiring firms get assets on the cheap and common stockholders get nothing.
Start likin’ it!