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WhoDatDog

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Company name is 4Licensing. Ticker symbol is FOUR. Current price $1.15 as of February 21, 2014.

I will start by saying that one should NEVER buy anything on this earth, including shares in publicly traded companies, without being able to articulate why they are doing so. The only asset worth buying is a mispriced asset, one where you are getting an asset worth more than the cash you are paying. You must know the reason(s) for why you are able to get this asset that is worth more. When it comes to publicly traded companies, every share that is traded has both a buyer and a seller.

I will give you a company that I have owned shares in since 2011. My average buy at that time was between 10 and 20 cents per share, as it was an extreme special situations play. I bought some more in the 50 cents range last year, as well. Recently, the price has moved from 50-60 cents, to over $1, with the most recent move from 80 or so cents to over $1 coming during the last week to ten days.

I mentioned this company in 2011, here at Dn Forum, to user Vincent. The price was around 15 cents. In the summer of 2013 I mentioned this company to use David Walker, as well as user James Booth. The price at that time was 50-55 cents. Two weeks ago I mentioned this company to user Ab80, when the price was 80 cents. I created a report in the spring of 2013, which I have included below. It was updated once or twice, as there was some new news that came about. If there are any inconsistencies, it would be due to those updates. For instance, in one case, I noted where management had stated in a quarterly report, that they expected a resolution or sorts (or not), of a certain potential legal award they were to receive in 2013. This date changed to 2014, and I changed the date when updating the report.

4Licensing. Ticker symbol is FOUR

2014/02/21 1.15 1.19 1.07 1.15 227,820 1.15
2014/02/20 1.18 1.18 1.08 1.08 17,935 1.08
2014/02/19 1.15 1.19 1.08 1.19 267,927 1.19
2014/02/18 1.19 1.19 0.94 1.08 121,029 1.08
2014/02/17 - 1.18 1.02 - - -
2014/02/14 1.02 1.18 1.02 1.15 147,605 1.15
2014/02/13 0.84 0.97 0.82 0.97 104,804 0.97
2014/02/12 0.82 0.90 0.82 0.90 102,675 0.90
2014/02/11 0.89 0.89 0.82 0.88 93,483 0.88
2014/02/10 0.83 0.89 0.77 0.89 365,711 0.89
2014/02/07 0.83 0.83 0.67 0.80 60,260 0.80
2014/02/06 0.75 0.83 0.71 0.80 33,850 0.80
2014/02/05 0.79 0.83 0.79 0.80 62,260 0.80
2014/02/04 0.82 0.84 0.75 0.79 81,721 0.79
2014/02/03 0.55 0.82 0.55 0.82 114,490 0.82
2014/01/31 0.79 0.79 0.76 0.79 9,323 0.79
2014/01/30 0.81 0.82 0.75 0.78 63,129 0.78
2014/01/29 0.85 0.85 0.75 0.81 190,547 0.81
2014/01/28 0.58 0.80 0.58 0.69 115,067 0.69
2014/01/27 0.69 0.69 0.59 0.59 5,150 0.59
2014/01/24 0.60 0.69 0.60 0.69 1,250 0.69

When the shares traded as KIDEQ

Oct 14, 2011 0.15 0.15 0.15 0.15 1,500 0.15
Oct 13, 2011 0.14 0.14 0.14 0.14 2,200 0.14
Oct 11, 2011 0.14 0.14 0.14 0.14 11,000 0.14
Oct 6, 2011 0.10 0.14 0.10 0.14 6,500 0.14


Each share of KIDEQ converted to a share of FOUR in early 2013, as shareholders retained 100 percent of the reincorporated entity. The stock has basically traded between 35 cents and 75 cents for two years, ever since they won a legal verdict with a licensor. There was one misprint on the first day of trading in 2013 under FOUR, where there was a trade at 2 cents, but that was just a test trade. SO, for two years the price has generally been hovering around 50 cents.

During the last few weeks, the price has gone over $1. There are numerous things that can go right here, and there are not a lot of things that can happen that can cause the price to ever trade lower over time. I expect that the price will reach $3 per share or more in 2014. There is potential for a much higher price, but nobody on the planet can predict short term stock prices, and it is generally a bad idea to have a price target or make price predictions.

I am putting this report here, and I fully expect to bump this thread before 2014 is over, as the price will in all likelihood be materially higher than the most recent yesterday close of $1.15.

Here is my report from 2013, which has been updated a few times. I sent the report to someone in early January, and then sent it again when new material news occurred. When I first sent the report in January, the price was 60-69 cents. I had originally sent the report to someone in the spring of 2013, when the price was around 50 cents. So, there were a few updates. Any mistakes in the report would be immaterial, as there really isn't anyone in the world other than a few management insiders who have the info that I do on this company, though I do know of a few other investors who got on board relatively early (less than 5 people in the world figured it out early, but I'm not sure anyone got in better than I did in 2011 when I first came in).


Report


This report was sent on January 3rd. There have been new developments. The first, is that 4Licensing has been approved by Major League baseball to produce protective caps for pitchers.

"The newly approved caps, manufactured by 4Licensing Corporation subsidiary isoBlox, will be made available to pitchers for spring training next month. Their use is optional".

The second, is that the Lehman Bankruptcy Judge has retired. 4Kids has a pending auction rate securities claim that will likely be determined within 60 days. The new Judge is the same Judge who ruled in favor of 4Kids/4Licensing in the dispute with TV Tokyo in 2011.

02/01/2014
Notice of Case Reassignment From Judge James M. Peck to Judge Shelley C. Chapman. Judge Shelley C. Chapman added to the case. (Richards, Beverly).

Case: SIPC vs. Lehman Brothers, Inc.



Below is the report that was sent last month.



4Licensing, ticker symbol FOUR (formerly 4Kids Entertainment).

Note: You can only acquire 600,000 or so shares. That is just under 5 percent. In the reincorporation, they made it so that you would need permission from management to acquire more than 5 percent. The true number is in the low 600's, but 600,000 is safe. The bid and ask can get quite wide, as there are not a lot of shares available. Current price 60-69 cents.

This company was in a licensing dispute in 2011 that led to them filing bankruptcy so that they could decide the dispute in court. A trial was held in 2011. Months later, during the last week of December 2011, the Judge issued her decision, which was a complete victory for 4Kids. In early to mid 2012, a settlement was paid to 4Kids. 4Kids then proceeded to sell their assets related to the dispute to Saban group. Throughout 2012, 4Kids worked through emerging from bankruptcy. The bankruptcy plan was approved in December of 2012, and 4Kids emerged shortly thereafter, reincorporating under the name 4Licensing, ticker symbol FOUR. Shares are usually very lightly traded. Some days will have zero shares exchange hands, while others may see tens of thousands change hands.

The company has zero debt, a few million in the bank, as is in line to receive at least 10 million as part of the general unsecured creditors pool of the Lehman Brothers bankruptcy estate within the next 6 months. In addition, they have between 50 and 100 million of NOL's/Tax Assets to use in the future. That means that they will not owe income taxes indefinitely. These assets are very valuable to third parties, as well.

Wikipedia

https://en.wikipedia.org/wiki/4Licensing_Corporation


March 2011

TV Tokyo, 4Kids' main licensing partner, attempts to terminate agreement with 4Kids because of alleged underpayments of royalties.

https://www.animenewsnetwork.com/news/2011-03-29/tv-tokyo-nihon-ad-terminate-yu-gi-oh-deal-sue-4kids


April 2011

4Kids files Bankruptcy so that the dispute can be litigated in bankruptcy court.

https://www.4-traders.com/news/4Kids-Entertainment-Files-for-Bankruptcy-Under-Chapter-11--13596393/


December 2011 After a completed trial months earlier, the Judge issues verdict 100 percent in 4Kids' favor.

https://www.nysb.uscourts.gov/conten...o-corporation-et-al-v-4kids-entertainment-inc

In Re: 11-02225-scc TV Tokyo Corporation et al v. 4Kids Entertainment, Inc.
Post-Trial Findings of Fact and Conclusions of Law signed on 12/29/2011.
File:
215530_72_opinion.pdf
Judge:
Judge Shelley C. Chapman
Date:
Thursday, December 29, 2011


March 2012 Announced settlement

https://www.animenewsnetwork.com/pre...su-dk-and-tv-tokyo-settle-yu-gi-oh-litigation


December 2012 4Kids bankruptcy plan approved.

https://ravegrl.wordpress.com/2012/1...pproves-4kids-chapter-11-reorganization-plan/


https://www.kayescholer.com/professionals/nurnberg_tyler

4Kids Named One of 2012’s Most Successful Restructurings
Represented 4Kids Entertainment in chapter 11. 4Kids is an entertainment and media company that managed licensing, broadcast and merchandising rights to popular children’s titles. The case was recognized as one of the most Successful Restructurings of 2012 by Turnarounds & Workouts. While in bankruptcy, 4Kids prevailed in a “bet the company” litigation over its most valuable license; negotiated a favorable settlement of remaining litigation claims; sold the license and other operating assets in a joint transaction; and confirmed a plan of reorganization that paid creditors in full, reorganized the company and preserved significant NOLs. (SDNY).


January 28, 2013

Turnarounds & Workouts selected Kaye Scholer’s representation of 4Kids Entertainment, Inc. and its affiliates as one of its most Successful Restructurings for 2012. The publication summarized the firm’s engagement as follows:
“A favorable court ruling enabled debtor to retain and then sell a valuable license and receive a sizable settlement with licensors. Plan of reorganization paid all creditors in full, kept existing shareholders in place, and allowed 4Kids to reorganize around its remaining licenses as well as expand into a new business, the sports licensing segment. 4Kids’ shareholders were the only class entitled to vote on the plan and approved the reorganization overwhelmingly – affirmative votes were received from 99.9% of the almost 7 million shares that were voted.” (January 2013)



February 2013 4Kids/KIDEQ begins trading as 4Licensing/FOUR. Shareholders retain 100 percent.

https://finance.yahoo.com/news/4kids-entertainment-resumes-trading-today-201600690.html


Auction Rate securities

https://marketprognosticator.blogspot.com/2008/03/auction-rate-securities.html

https://online.wsj.com/article/SB121996830741681657.html


Copy of lawsuit

United States Bankruptcy Court/Southern District of New York
wmish.com/4k/LBI/4k-0000030599.PDF‎
(by filing this proof of claim, 4Kids Entertainment is not acknowledging that any .... Complex Structured Securities were offered as “auction rate securities,” the ...


4Kids has already received a settlement from three individual Lehman brokers in the amount of 489K. The main claim, against Lehman, is based on the same facts and has not been contested by the Lehman Trustee. It is highly likely that a settlement of well over 10 million dollars will happen soon. The suit was for 31 million, plus treble damages.

https://www.law360.com/articles/281278/4kids-lehman-reach-deal-in-36m-ars-dispute


From 4licensing's August 14, 2013 10Q

https://yahoo.brand.edgar-online.com/DisplayFiling.aspx?dcn=0001140361-13-032558



Lehman Brothers, Inc. Claim - The Company believes that Lehman Brothers, Inc., the securities broker-dealer that purchased the auction rate securities on behalf of the Company violated its legal obligations to the Company. As a result, the Company took various measures to obtain appropriate legal relief, including initiating an arbitration on April 3, 2008 against Lehman Brothers, Inc. ("Lehman") and the brokers who had serviced the Company's Lehman account with the Financial Industry Regulatory Authority. On September 15, 2008, Lehman Brothers Holdings, Inc., the parent company of Lehman Brothers, Inc., filed for bankruptcy. The Company's arbitration proceeding was stayed by the Lehman bankruptcy. On September 16, 2008, Barclays PLC announced that it had reached an agreement to purchase the assets of Lehman Brothers Holdings, Inc.'s North American operations, including substantial assets of Lehman Brothers, Inc. The Lehman-Barclays transaction was approved by the United States Bankruptcy Court for the Southern District of New York on September 20, 2008. On September 19, 2008, the Securities Investor Protection Corporation ("SIPC") filed a proceeding, placing Lehman Brothers, Inc. in liquidation under the Securities Investor Protection Act ("SIPA"). SIPC, pursuant to its authority under SIPA, has acted to facilitate the transfer of Lehman Brothers, Inc.'s customer accounts (including the Company's accounts) to Barclays, PLC. In late September, 2009, the Company filed a proof of claim against Lehman Brothers, Inc. in the United States Bankruptcy Court for the Southern District of New York. The principal amount of the claim was approximately $31,500 plus interest (31.5 million). In addition, the proof of claim requested treble damages. The proof of claim is a general unsecured claim. The Company's claim against Lehman Brothers, Inc. is still pending and there has been no determination made as to the validity or allowed amount of the claim. On October 18, 2011, the Company entered into a settlement agreement and general release with the brokers who had serviced the Company's account with Lehman Brothers, Inc. in exchange for a payment to the Company of approximately $489 (489K). The trustee in the Lehman Brothers, Inc. bankruptcy proceeding is expected to begin the claims resolution process with respect to the unsecured claims at some point in 2013 (the recent 10Q on November 14th updated this to 2014)


The Lehman Trustee is almost finished paying secured holders of claims in full. Unsecured claims are being settled now. Some general unsecured claims were settled at over 45 cents on the dollar. Payouts for unsecured creditors could be anywhere from 15 to 50 cents on the dollar.

https://online.wsj.com/article/BT-CO-20130610-704247.html

"Lehman Agrees to Sell Another $1.81 Billion of Claims Against Brokerage Unit," at 8:34 a.m. ET, misstated the amount Lehman expected to receive from selling general unsecured claims against its brokerage unit in the first paragraph. Lehman Brothers Holdings Inc. agreed to sell an additional $1.81 billion of its general unsecured claims against its brokerage unit Lehman Brothers Inc. for roughly $813.6 million, not billion.


https://www.law360.com/articles/458017/lehman-s-deal-with-luxembourg-unit-over-13b-wins-nod

Last month, Giddens released an interim report outlining the recent progress he's made in winding down the estate since late October, saying customer distributions will exceed $105 billion, “by far the largest customer distribution in history.”

Full recovery to more than 400 customers with allowed claims are underway, and 110,000 others have received payback as well, according to the report. The estate is now focusing on maximizing general estate assets and processing general estate claims as quickly as possible so general creditors can receive their distributions as well, Giddens said.

Lehman and its affiliates exited the historic Chapter 11 bankruptcy in March 2012, but has continued fighting various claims and working out settlements for customer and creditor distributions in bankruptcy court.


One thing to remember. When 4Kids reincorporated as 4Licensing, they made it so that nobody can acquire more than 5 percent of the company without management's approval. This is to protect the NOL's/Tax Assets. There are just over 13.7 million shares, so the magic number is roughly 650,000 shares. You can confidently buy 600,000 shares and remain under the 5 percent threshold.

From December 21, 2012 8K

https://yahoo.brand.edgar-online.com...1208-18945&type=sect&dcn=0001140361-12-052927

In order to reduce the risk that any change in the ownership of 4Licensing would jeopardize the preservation of the Company’s net operating loss carryovers and other tax benefits, 4Licensing’s Certificate of Incorporation restricts certain transfers of equity securities of 4Licensing (referred to as “Corporation Securities”). Corporation Securities include, among other things, shares of common stock of 4Licensing and warrants, rights or options to purchase common stock of 4Licensing. Generally, these restrictions prohibit any direct or indirect transfer of Corporation Securities if the effect of the transfer would be to (i) increase the direct or indirect percentage stock ownership (as defined in 4Licensing’s Certificate of Incorporation) by any person or group of persons (other than a public group) from less than 5% to 5% or more, or (ii) increase the direct or indirect percentage stock ownership of a person or group of persons (other than a public group) having or deemed to have a percentage stock ownership of 5% or more.


Insiders have never sold. The largest holder, Prescott Capital, owns 2.4 million shares that they paid roughly 4.5 million for from 2008 until 2010. That is an average price of $1.89 per share. They are on the board of directors and have been heavily involved throughout. They hold approximately 18 percent of the shares.


(f) Prescott Capital and the Small Cap Funds are organized under the laws of the State of Oklahoma. Mr. Frohlich is a citizen of the United States of America.
Item 3. Source and Amount of Funds
As of May 7, 2010, the Small Cap Funds had invested $4,582,698 (inclusive of brokerage commissions) in the shares of Common Stock of the Issuer. The source of these funds was the working capital of the Small Cap Funds.

SOLE VOTING POWER

2,414,209

https://www.sec.gov/Archives/edgar/data/58592/000095012310046489/c00629sc13d.htm
 
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WhoDatDog

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FOUR closed at $1.35 on March 7th, 2014. Almost a cinch to be over $2 by summer. Best guess is at least $3 by the end of 2014, and likely much higher.
 

amplify

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Maybe in the $4 region?

If you got a $1000, it's best to buy 1 share of GOOG than this. Guaranteed a ROI at least.
 

Jonathan

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I saw Wolf of Wall Street, you can't fool me. ;)
 

amplify

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Sounds more of a pump and dump post than selling penny stocks. ;)

Soon as half the members buy in and it's at his selling point, he cashes out big and everyone else ends up the loser. :p
 

icedude

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I know you did not expect anyone to read all that... I assume you did not buy that many shares, because you were in at 0.10-0.15 range and in again at 0.50.. Now the stock is at 1.15 and you still are not out, so you post here, hoping a few suckers buy in and BOOM,,,,, Smart move WhoDatDog, I can't hate the player, hate the game...
 

WhoDatDog

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Sounds to me like most of you are losers. I even sent the report to a poster in this thread last year when the price was around 50-60 cents. That user name is David Walker. I bought hundreds of thousands of shares in 2011. Sorry, but you are losers. I was going to take this down when I read your ignorant disgusting posts. I will leave it up and continue to bump it for you scumbags. I am already in semi-retirement because of this investment, where I did tons of research well before anyone else on the planet did.

Have fun. Every post in this thread shows ignorance. That is why 90 percent of stock market investors, as well as domain investors, lose. It seems odd that David Walker, whom I sold two domains to last year, and whom came back to me and thanked me for the deal, then asked me if I had any more names like it, would post such a thing. And then I put in the time to tell him about some unregistered names that were similar, and so he registered them.

Makes me think that he didn't even read the part where I said that I sent him the report last year. Most of you idiots have no clue, and the reason that you cannot even make a life changing positive decision is because you are blinded by your idiocy. You mention penny stock, and pump and pump and dump, because you saw a low share price. And yet, you didn't even read the report. Stocks can trade at low prices for lots of reasons. Pier One went to 10 cents in 2009. It is roughly $20 now. That "Penny Stock" would have changed your life. A company named Deidrich Coffee traded at 20 cents and sold for over $35 within one year around that time, when Green Mountain Coffee bought them.

I won't respond to dirtbags who comment and haven't read my report. In fact, this forum is full of scum. This will be a good chance for me to finally make the break and not post. Every time I come back the place is worse and worse, as losers have infested the forum. But I will probably come back and bump the thread as the shares appreciate higher and higher. Feel free to bump it if the shares go lower. That won't happen, so good luck.

I am one of the top investing minds on the planet, and I know what makes a good investment in a publicly traded company. I am tops in domains, too, and I have offered up free advice here for years. Most people don't want to know how to improve their lives.

See ya later, fools. There is no way I can justify ever trying to help out strangers on the Internet again. You don't deserve it. Goodbye.
 

icedude

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Well. WhoDatDog, I went to College, took a business class or two. I have a few securities in my TD Ameritrade account and quite honestly, anyone holding "hundreds of thousands of shares from 2011" in a company being traded Over-The-Counter, after seeing a 1000%+ gain is quite honestly a "loser," unless you have a little bit of inside information....... I know bull**** when I see it...

Anyhow, you are entitled to your own opinion and although this is a forum on the Internet and not face to face communication, you need to check yourself, because at the end of the day you are addressing a bunch of grown ass man as "losers." I honestly would not take too kindly to that if we were in the room together. No one here made a personal attack on you, so speak to us as if you were in a room with us. Because, I highly doubt you would address a room of grown man as "losers." I honestly would have had to smack you around a few times if that was the case, but hey.

I don't care if we are on a forum. Don't disrespect me either indirectly or directly, because I would not disrespect you or anyone else here.

Good luck with your millions of dollars, because you are in hundreds of thousands of shares, right?
 
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Johnn

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You offer the tip - Members may or may not take your tip - There is no need to fight.

I have been a Day Trader for over 10 years - My Tip would be stay away from Penny stocks - You don't know why and when you will lose your money.
 

Focus

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Not getting into the highschool drama here but regarding this company is it just me or do they seem like some legal system maneuvering scumbags? That seems like a lot of litigation in a very short time span, the stock may be going up for now but all it takes is one bad case or legal hurdle to ruin a company like this and devalue their stock ten-fold. This is not the type of company I would gamble on long term. :cool:
 

amplify

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Sounds to me like most of you are losers. I even sent the report to a poster in this thread last year when the price was around 50-60 cents. That user name is David Walker. I bought hundreds of thousands of shares in 2011. Sorry, but you are losers. I was going to take this down when I read your ignorant disgusting posts. I will leave it up and continue to bump it for you scumbags. I am already in semi-retirement because of this investment, where I did tons of research well before anyone else on the planet did.

Have fun. Every post in this thread shows ignorance. That is why 90 percent of stock market investors, as well as domain investors, lose. It seems odd that David Walker, whom I sold two domains to last year, and whom came back to me and thanked me for the deal, then asked me if I had any more names like it, would post such a thing. And then I put in the time to tell him about some unregistered names that were similar, and so he registered them.

Exactly, you offered me domains on top of domain tips on a domaining forum. I chose to ignore your stock tips as I'm young, but not dumb. I'd rather not lose my whole investment in one "promising" stock; that if I had purchased at the time, would apparently be worth 3 times more in 2014. I diversify my stock portfolio and stick with mutual funds.

This isn't a penny stock forum[/newsletter] and your tip has been just as good as your appraisals and posts as of lately, ignorant (and full of BS).

Show us your check when you cash out. As of now, don't expect you back on DNF as you seem to be making millions in the stock market. No need for small ROIs here.
 

amplify

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What is it with certain Canadians and domains. My God, I know that a high percentage of stock fraud comes from Canadians, but I see a disproportionate amount of this crap with domains, too.

You make it appear that you put up this thread, and now people have PM'd you and bought three names. You are ****ING FULL OF ****. Liar. Delete your worthless names and **** OFF. You God Damn worthless moron loser. Thank God your parents aren't alive to see this ****. You absolutely suck as a human being. Big time.

Blame Canada for the pumping and dumping of this shitty OTC. Make your million yet or just breaking even?
 
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