FFN STOCK (AFF) Crashes to 1.47 a share + A Securities Class Action Lawsuit filed.

[will76]

FFN Stock opened at $10 a share a little over 6 months ago at their IPO. It ended the day today at $1.47 a share.




Block & Leviton LLP Files A Securities Class Action Lawsuit Against FriendFinder Network, Inc., Its Officers, Directors And Certain Underwriters

The lawsuit alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 on behalf of investors who purchased or otherwise acquired FFN’s common stock pursuant to the May 11, 2011 public offering of its common stock (the “May Offering”). The complaint asserts that FFN, its officers, directors and Underwriters made false and misleading statements and omissions in the Registration Statement and Prospectus dated May 10, 2011 and May 11, 2011, respectively (the “May Offering Documents”).

According to the May Offering Documents, after the offering there would be approximately 26.7 million common shares outstanding. Of these shares, at least 20.9 million were subject to a 180 day lock-up period, during which the shares could not be traded (the “Restricted Shares”). These statements are alleged to have been false and misleading when made because: (i) a material number of the Restricted Shares were publicly traded during the lock-up period; and (ii) the Company was suffering from grossly deficient internal controls and therefore was unable to abide by the terms of the May Offering Documents.

FFN’s stock price has dropped precipitously since the May Offering, falling over 20% in the first day of trading alone. At the time the lock-up period expired, the stock had fallen to less than $2.00 per share.

http://www.dailymarkets.com/stock/20...-underwriters/

[RawAlex]

I just saw that:

http://www.cnbc.com/id/45306374

It's not looking good over there at all. $1.39 right now, and there is nothing that suggests that the stock will be able to maintain enough of a market cap to be keep it's listing. Market cap now is only 41 million, down from 310 million 6 months ago.

I would say if this one makes it to the end of the year, it would be surprising.

[gonzo]

Originally Posted by RawAlex

I just saw that:

http://www.cnbc.com/id/45306374

It's not looking good over there at all. $1.39 right now, and there is nothing that suggests that the stock will be able to maintain enough of a market cap to be keep it's listing. Market cap now is only 41 million, down from 310 million 6 months ago.

I would say if this one makes it to the end of the year, it would be surprising.

Lars and Andrew probably in some hot water along with Markie Marc Bell for jettisoning that stock early... which you know was the only reason for the IPO to begin with.

[RawAlex]

$1.25 at the end of the day today. The stock has a simple pattern - when the market goes up, it goes down. When the market goes down, it goes down more. Off 10% in a single day again.

It may not make it to Dec 1st before the delisting will start, the market cap is getting very low.

[EmporerEJ]

Originally Posted by RawAlex

$1.25 at the end of the day today. The stock has a simple pattern - when the market goes up, it goes down. When the market goes down, it goes down more. Off 10% in a single day again.

It may not make it to Dec 1st before the delisting will start, the market cap is getting very low.

Did anyone else notice Private got de-listed?

[softball]

Originally Posted by EmporerEJ

Did anyone else notice Private got de-listed?

I guess their plan to give away free porn and buy hotels failed.

[gonzo]

Originally Posted by rhetorical

I guess their plan to give away free porn and buy hotels failed.

Maybe Fabian will buy them as well.
Fits his business plan.

[Toby]

Originally Posted by gonzo

Maybe Fabian will buy them as well.
Fits his business plan.

You mean this plan?

[RawAlex]

Went on vacation, came back to find FFN sitting at 0.9199 - plus this:

http://www.cnbc.com/id/45517657

Law Offices of Howard G. Smith announces that it is investigating potential claims against FriendFinder Networks, Inc. ("FFN" or the "Company") (NASDAQ:FFN) concerning possible violations of federal securities laws. The investigation focuses on allegations that certain statements issued by the Company in connection with its May 11, 2011 public offering of common stock (the "May Offering") regarding FFN's business and operations were false and misleading.

Can you smell it?

[will76]

Originally Posted by RawAlex

Went on vacation, came back to find FFN sitting at 0.9199 - plus this:

http://www.cnbc.com/id/45517657



Can you smell it?

down to .68 cents a share now... another couple weeks and the delisting process will be started. Poor Mark Bell bought in a ton of shares when it was at $2.50 a share...

Wonder how many "playas" from GFY bought in at the IPO

[RawAlex]

Yeah, it hit down around 65 cents, then some buying came in to move it up a bit. I think the goal is to keep the market cap over 20 million, which they are dangerously close to hitting.

Between that and the lawsuits, I would say that this one looks pretty much done.

[gonzo]

Originally Posted by RawAlex

Yeah, it hit down around 65 cents, then some buying came in to move it up a bit. I think the goal is to keep the market cap over 20 million, which they are dangerously close to hitting.

Between that and the lawsuits, I would say that this one looks pretty much done.

Wonder if Legendary Lying Lars will claim to be forced on this issue as well?
Where are all the GFY cock suckers now that were swinging from his nuts a few years ago?

[RawAlex]

Originally Posted by gonzo

Wonder if Legendary Lying Lars will claim to be forced on this issue as well?
Where are all the GFY cock suckers now that were swinging from his nuts a few years ago?

If they were smart, they shorted this turkey like all damn day. They might have made a few dollars if they did.

[RawAlex]

Ends the week at 0.61 per share, putting the market cap under 20 million. At this point, delisting starts to become a very serious issue. I am guessing we might see some combination of a stock buyback and reverse split to try to get market value back up over 20 million and the stock price up over $1... maybe a 10 to 1 reverse to get it up to $6.10.

[RawAlex]

$0.56.... slipping away!

[Toby]

...and the band played on...

[RawAlex]

The title of worst-performing IPO in 2011 belongs to FriendFinder Networks [FFN 0.5402 0.0064 (+1.2%) ], the publisher of Penthouse, which is down more than 94 percent from its filing price of $10 per share back in May.

http://www.cnbc.com/id/45729156

Stock at 54 cents today after a short dead cat bounce the last couple of days.

[RawAlex]

So a funny think has happened at FFN.... the stock price has gone up.

Yup, closed at 0.86 yesterday, after three days of hard buying from someone (share volume has more than tripled). It appears to be someone buying cheap hoping to make a killing, perhaps trying to keep the thing listed. After all, AMR (parent of American Airlines, currently in bankruptcy) was delisted yesterday at 49 cents a share.

Volume wise, yesterday was about 7 times higher than the average. Today, less than an hour in, the have done their daily average volume.

It will be interesting to see where this one goes.

[RawAlex]

Yup, it looks like the run up was done by a few higher volume purchases. GLOBAL INVESTMENT VENTURES LLC, a company that is 10% or higher owner has purchased 15k shares at 54 cents or so... not a big number, but if the stock price gets pushed back up a bit, they can perhaps recover some of their (seemingly significant) losses - especially if they bought at IPO or were awarded pre-IPO.

A single day run of 800,000 shares pushed the price up as noted before, but since then, the price has been slowly sliding away gain. They did get the market cap back up over 20 million, but the stock is stuck soundly under $1, which means it is still very possible that there may be a delisting at some time in the future, or at least a reverse stock split to try to shore up the price of the stock.

There also appears to be at least 4 legal actions pending regarding losses investors may have suffered, apparently in relationship to insider shares sold out of lockup.

The funny part about FFN is that, excluding an incredible and increasing amount of money spent on servicing debt, they might actually be profitable. Losses per share are down, but mostly because the number of shares in play went up.

Looks like a perfect target for an asset sale... because they don't appear to be generating enough net revenue to retire the debt, which keeps them from being profitable.

[RawAlex]

http://biz.yahoo.com/e/120112/ffn8-k.html

First step for delisting, notice of non-compliance on both the overall market cap of publicly held stock ($15 million) and the minimum $1 share price (they have been hovering under $1 for a while now).

It is likely that the stock will climb out of the trouble area for at least a short while, mostly because there was so many people shorting the stock. They are covering and driving things up temporarily.

My guess at this point would be someone coming in and taking it private again, for probably no more than $1 a share, and then doing an asset sale of the key components, leaving the debt to be unpaid as the company goes away. Sorry Lars!

[RawAlex]

Another update... company is sort of restructuring, trying to cut 10 million a year in expenses.

http://www.cnbc.com/id/46136933

You have to wonder if this means payouts on their cam programs might drop off. Clearly, their big issue is the cost to acquire new customers, which they need to adjust.

[EmporerEJ]

Classic case of "worry too much about NEW customer, while screwing, (not in a good way) existing customers?"

[RawAlex]

I think it is more a question of massively overpaying for new customers. It's the same issue that has just hit Verizon, subsidizing iphone sales to the point of generating a big loss.

FFN continues to have payouts to affiliates that are about on par with the direct income generated by those same users. They had this when Lars was over there as well, which is why their were buying all sorts of ad placements and keyword popover buys on the cheap, hoping to lower their costs of getting new customers. But at the time of the original attempt to go public, they were paying out something like $125 to get a customer that was paying them slightly less than that. You don't have to be too brilliant to realize that isn't making money.

[will76]

What is killing them is penthouse. Marc Bell is fucking idiot. They latch onto companies (like ibill) and run them into the ground. Penthouse's debt and the debt to buy AFF is way too much for them to support. On its own AFF and CAMS are profitable. But if they wouldn;t have done the acquisition penthouse would be long gone by now, so it's all about job preservation for the top execs and god knows how much is walking out the back door.

The stock should be delisted soon. Facebook lawsuit will sink them soon enough. Company has already been reorganized into several parts, will make it easier for them to liquidate. Affiliates will get screwed soon enough, but they will deserve it for being affiliates in the first place.

I know that Mega closing down took a nice little hit as that was one of AFF's bigger traffic sources. Their days are numbered...

[RawAlex]

Oddly they have had a huge spike (up to $1.20 at one point today before sinking down to 1.05. Either it's the cost cutting, or more likely the "Facebook" effect with everyone talking social media right now.

Volume today was 10 times normal. Someone is making a move, possibly a takeover to go private? 3 million shares changed hands... or 10% of the shares outstanding.

[RawAlex]

Okay, more action here... this could be big.

3.9 million shares traded today already... more than yesterday, and representing almost 25% of the outstanding shared traded in 2 days. Big buyers at higher prices (block of nearly 250k shares at $1.5 peak... back down to $1.25 with slower selling.

It certainly looks like one or more of the institutional investors, an insider, or a third party has decided to take control here. This is a huge move, don't be shocked if you find a major porn player buying it up on the cheap.

[will76]

Something going on for sure.

[RawAlex]

Another nearly 2 million trading hands today. Makes you wonder.

[RawAlex]

Another 1.7 million shares with the price up to $1.33. If one person or company is doing the buying here, they now have their hands on about 25% of the shares of the company, for what is a very cheap price (considering the value of the assets). I have a feeling that this is company is about to be taken over, hollowed out, and left to die.

[RawAlex]

All the way up to $1.61 right now... kicking tail. 10 day volume average is 1.9 million shares, on a company that has only 31.2 million outstanding - or 6% of the company trading every day. It would appear that someone is buying up the company bit by bit, the price driven by larger purchases (and at least one sale of 600,000 or so shares in a single block, it seems).

Since there is a delay between obtaining a significant position and reporting of it, I have a feeling that someone is going to appear in the next few weeks holding 25% or more of the company, possibly someone like, say, a Manwin. An already public company would be a beautiful thing to roll their operations into.

[gonzo]

Originally Posted by RawAlex

All the way up to $1.61 right now... kicking tail. 10 day volume average is 1.9 million shares, on a company that has only 31.2 million outstanding - or 6% of the company trading every day. It would appear that someone is buying up the company bit by bit, the price driven by larger purchases (and at least one sale of 600,000 or so shares in a single block, it seems).

Since there is a delay between obtaining a significant position and reporting of it, I have a feeling that someone is going to appear in the next few weeks holding 25% or more of the company, possibly someone like, say, a Manwin. An already public company would be a beautiful thing to roll their operations into.

I believe you hit the nail on the head.

Deecash,AFF/Penthouse,AVN... roll it up as public as Manwin and youve backdoored into a Public company.

[RawAlex]

Price is up over $2.50 today... another 2.4 million shares already (before lunch time) and almost 4 million yesterday as well...

This is going to be an interesting story within the next 30 days or so, when someone is going to have to make an official declaration of ownership.

[will76]

Originally Posted by RawAlex

Price is up over $2.50 today... another 2.4 million shares already (before lunch time) and almost 4 million yesterday as well...

This is going to be an interesting story within the next 30 days or so, when someone is going to have to make an official declaration of ownership.

I'd bet with in 30 days its back under $1.00 again.

[RawAlex]

...and Marc Bell steps down as CEO, just after announcing another quarter where bottom line they lost their ass - even with good top line revenues.

[will76]

Originally Posted by RawAlex

...and Marc Bell steps down as CEO, just after announcing another quarter where bottom line they lost their ass - even with good top line revenues.

Yeap they lost around 10 million last quarter. Bell exiting is a sure sign that he knows the writing on the wall and is jumping ship before the shit hits the fan. The guy is a total douche bag.

With the latest developments it looks like it is heading back to under $1 range again soon.

[gonzo]

Got to make room for Fabian. Hes gonna save us all!

[RawAlex]

Not a good day or two over at FFN.

Stock crashed almost 17% today, back to flirting with penny stock status, closing at $1.02, down from $1.20.

Ouch.

FFN's financial are out, and they just don't look very good. Another quarter of losing over 10 million in 3 months.

S&P ratings dropped their debt from B- to CCC+, which is never a good sign:

http://www.reuters.com/article/2012/...sSector&rpc=43

"Cash sources include unrestricted cash of $23.4 million and expected
discretionary cash flow of more than $30 million in 2012. Cash uses are mainly
capital expenditures, with some modest investment in working capital. The
cash-pay notes mature in September 2013, and we believe that refinancing this
debt could prove difficult and costly. "

Basically, They may have about 18 months left before they hit the wall - and with declining topside revenues, 65% of their business on a single site (AFF) and subscriber churn near 22% a month, they are basically a high risk business.

This is perhaps one of the most impressive stories about FFN - it really shows where they stand, and it's certainly not in the Penthouse!

[will76]

Originally Posted by RawAlex

Not a good day or two over at FFN.

Stock crashed almost 17% today, back to flirting with penny stock status, closing at $1.02, down from $1.20.

Ouch.

FFN's financial are out, and they just don't look very good. Another quarter of losing over 10 million in 3 months.

S&P ratings dropped their debt from B- to CCC+, which is never a good sign:

http://www.reuters.com/article/2012/...sSector&rpc=43

"Cash sources include unrestricted cash of $23.4 million and expected
discretionary cash flow of more than $30 million in 2012. Cash uses are mainly
capital expenditures, with some modest investment in working capital. The
cash-pay notes mature in September 2013, and we believe that refinancing this
debt could prove difficult and costly. "

Basically, They may have about 18 months left before they hit the wall - and with declining topside revenues, 65% of their business on a single site (AFF) and subscriber churn near 22% a month, they are basically a high risk business.

This is perhaps one of the most impressive stories about FFN - it really shows where they stand, and it's certainly not in the Penthouse!