Something Exciting is Happening With StrikeForce?
In September 2007 , we introduced you to StrikeForce Technologies (OTC BB: SKFT), an exciting company with proprietary technology in the field of identity theft, saying we liked the company a lot but were concerned about their toxic funding through Cornell. Even the best of companies can suffer under the weight of one of Cornell’s floorless convertible funding plans. The company was actively working on getting out from under that burden and we were and still are confident they will get it done sooner or later. Despite their best efforts, it’s been 3 months (longer than we had hoped) since then and nothing has been announced to date. Still, as my mother used to say, “good things come to those who wait” and it finally looks to us like the time is here.
On January 7, 2008 the company filed a Form 13D disclosing that James R. Solakian had doubled his equity position in SKFT to 10% of the company. Reading the disclosure shows that Mr. Solakian has been a financial supporter of the company for nearly a year. Disclosed is the fact that Mr. Sloakian has been purchasing stock off the market recently as well. This coincides with a significant change in the trading patterns of the stock. Buying seems to have increased coincidental to the appearance that Cornell has stopped selling or at least reduced it significantly.
Additionally, with the Form 13D, the company filed a copy of a consulting agreement with Mr. Sloakian. Consulting agreements like what we see here are often associated with people involved with facilitating capitalization strategies.
Putting 2 and 2 together, we came to the conclusion that the company may have been successful in sourcing the funding necessary to get this Cornell monkey off its back so they can move forward as a company without burdening the shareholders and so the stock can be rid of the overhang represented by Cornell.
To try to confirm our conclusion, we contacted the company and were told very clearly that they could not confirm or deny our conclusions at all and that basically, they couldn’t comment. No suggestions, no hints… I mean they were tight lipped. Previously, when we spoke with them, we were told something along the lines of “we’re working on it every day” or something to that effect so the “no comment” was something different. What all this means is up to speculation but, since we are “serious speculators”, that’s not a bad thing. Our opinion of this change in response to a non-denial denial makes us even more confident we are correct in our assumptions. Naturally, this is simply our opinion based upon our assessment of the filings and the change in market activity but that’s what makes this business so great, accurate speculation is cause for celebration. Guess wrong and, well, your horse finishes out of the money.
If we are correct, we think this could spell the end of this trading range and the beginning of a new day for shareholders of StrikeForce. Time will tell if we are right or not. If you want to read our report on StrikeForce, click here.
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NOTE: In September 2007, (we had a typo in our email alert and put 2003 by accident) we were paid a one time fee of three thousand dollars by a non-related individual to publish a report on the company. Shortly after we published it, we decided, with our client, due to the constant selling by Cornell, to suspend our coverage until market conditions improved. After careful consideration of the market and the above facts, we decided to resume coverage at this time. This will last approximately one month. Additionally, we purchased shares in SKFT off the market back in September. What this means to you is that we will want to say nice things about this company so keep this in mind. Also, if you haven’t, please read our full disclaimer by clicking here.
