Bad Toys Continues on Glacially Slow Path

This update is really about Southland Health, but we’ll cover it under the guise of Bad Toys until it opens for trading on its own.

Southland is moving forward with the planned opening of its stock for trading like a herd of turtles. Believe me, glaciers move faster than these guys, but since the government is involved, you can’t blame it all on them.

At long last the company is sending out the Southland stock certificates to all who were entitled to the dividend. If you don’t receive your shares in the next couple of weeks, call the company directly at (423) 247-9560 and have them look into it.

Getting the stock certs has taken for ever, but it really doesn’t matter as Southland is not open for trading, and doesn’t appear to be ready to open for trading in the immediate future.

In order for Southland to trade at a reasonable market cap they have to solve two problems. They need to pay off GE Capital and the IRS. They are in default with both of them, but these are inherited problems from previous management.

The IRS is the problem. Southland claims it has a new lender who will pay off the back taxes and provide the company with operating capital. However, they won’t do it until they have a final number from the IRS so the company can be released from its liens.

The IRS has received several proposals to bring the matter to a head, but as a government agency they take their own sweet time about things.

If and when they can get a resolution to the IRS issue, they can then move forward to pay off their defaulted debt. I am told there is even money in escrow awaiting the resolution.

Until that time, there isn’t anything to think about or worry about. There is nothing to do but wait. If they never get this problem solved, your Southland stock cert might not be worth much more than wallpaper. If they do, it could be a huge score.

We’ll have to wait and see how it goes over the summer. In the meantime, I would not be a buyer of BTYH- perhaps if they close in on Southland opening for trading BTYH will become interesting again.

From day one I stated this was a move I had never seen done in all my years in the microcap world. Perhaps they will pull it off. I can’t say for sure, but on paper it seems feasible.

However, they are moving at a glacial pace- like LA’s 405 during rush hour- hurry up and wait.

18 thoughts on “Bad Toys Continues on Glacially Slow Path

  1. I invested with “ShareBuilder” and my account states that I have a nuber of stock in Southland (without a price of course). Will the certificates be sent to me, or will it be sent to “ShareBuilder”?

    Editor: they will be sent to you in your name. 

  2. Still no shares here – anyone get theirs? Also, a friend in the motorcycle magazine business said the deal with the gas tank company has went south and the owner of independent has left Gambler less than a month after the release about it – any truth to this?

    Editor: I have received my stock certificate- finally. So, if you don’t get yours by the end of this month, call the company directly. Lunan is easy to reach, and you can find the contact info on their press releases. As far as the motorcycle business, I really don’t care. I have never cared about that division. I believe it is a waste of time and effort. Southland is a real, viable business. The motorcycle division is a mess. I would not own this stock if it were the motorcycle company.

  3. HIHO!

    I called Southland, and was told that the certificates are going out, and that the last of them will be out by the end of the month. The lady who answered, said that the brokers would have supplied shareholder’s addresses, and that the certs would probably come directly to us rather than the brakerage. I’m very excited about this step forward by Southland, and expect the share to be unrestricted and trading by mid – Sept!

    Michael

    Editor: Michael- I can confirm they are doing it as I have received my certificate. 

  4. When did you receive your shares? I have received nothing from them at all in the past 6 months and have never even received a response to any email I have sent to them.

    Editor: I got mine about 2 weeks ago. Call Larry Lunan at (423) 247-9560 and ask him to look into it himself. 

  5. HIHO!

    On Thursday, my BTYH suddenly became BTYH#. I e-mailed Scottrade about it, and here is their partial response: “BTHY# is under going a mandatory name change. You should be receiving one share of Paladin for each share of Bad Toys. At this time, there is no anticipated date.

    During the reorganization period, we ask that you contact your local Scottrade branch office for trading assistance on this security…”

    Have you guys heard about this? Who is Paladin? I hope this is something of a positive surprise!

    Michael McDade

    Editor: They are trying to change their image to a “holding” company. New symbol: PLHI 

  6. HIHO again!

    NEWS FLASH: Apparently, BTYH has merged with Paladin Holdings! I have not found much on PLHI so far, but I hope this is GOOD news!

    Have you heard of Paladin, and this merger? It must be a good time for an update from you on BTYH!

    Thank you.

    Michael J. McDade

    Editor: It is meaningless. It’s just a name change. Changes nothing. 

  7. What is with the major sell off today? Did something major happen?

    Editor: It only traded 50k shares, and I don’t really follow it because I don’t care. I only care what happens with Southland. This is great, because if great things happen with Southland before they are public, there could be a trade in PLHI. 

  8. Alright well today is definitely a major sell off even you think yesterday wasn’t. I don’t understand why this is happening when no new events have occurred. Do you have any idea?

    Editor: No idea. All I care about is Southland, and Southland made money again last qtr- $.03 per share in earnings. 

  9. Just wondering about your answers to the last two comments. OK, I agree there’s not much value in the motor cycle business, but Bad Toys (Paladin) still holds 25% of Southland stock. At 7 cents a share is this telling us Southland is only worth 28 cents? I sure hope not.

    Editor: At some point I hope to see it turn back up. Nothing has happened of a negative nature that I am aware of, but I’ll look into it this week.  

  10. I called the company today since I have not received my certificate yet for Southland shares. I was asked if my Paladin shaes were held in a brokerage account which they are. They are now processing those transfers. Apparently if you hold the Paladin shares yourself, you should have received the Southland shares directly. If your shares are in a brokerage account, the new shares will be sent directly to your account. It may take 1-2 weeks for everything to be completed. Hope this info helps those who are wondering where their shares are.

    Editor: Thanks for the contribution. I have received my Southland shares in full. 

  11. Shouldn’t this be listed/reported here as PLHI?

    Regards,
    Michael

    Editor: I will get around to changing it, but I don’t really care much for what Bad Toys/Pallidin is up to. It should really be changed to Southland Health Services- that’s the only one that matters to me. Seems like these guys get something going every January. Perhaps they will be on track to pull that off again this winter. 

  12. man just when I get all my stuff changed from “etheft” to “slowtrade” I see someone say that the certs are going straight to the brokerage?!?!? I can just see it now my share will get sent to etheft were I no long have an account and they will mail them to me (in Okinawa). I even called Al K to see if I could confirm were the stock were being sent and got squat. This has become frustrating for this novice.

    Editor: Shares are not going to brokerage accounts. Shares are going directly to the investors. I suggest you call the company and describe your situation. (423) 247-9560- Larry or krista can help you. 

  13. REGARDING NAME CHANGE:
    Editor: YOU POSTED:

    I will get around to changing it, but I don’t really care much for what Bad Toys/Pallidin is up to.

    YOU WROTE HOWEVER:
    3/16/2007
    Bad Toys: I Like Our Chances
    Filed under: BTYH— OTCJournal Editor @ 9:33 am

    As you know, these things do take months, what has changed?

    And Palidin owns 25% of Southland. It seems that this has become the RODNEY DANGERFIELD of your picks.
    Say it ain’t so.

    It really should be updated.

    Best regards,
    Michael

    Editor: I have repeatedly said I don’t care what Bad Toys/Palladin does as a stock for now. It has no value beyond the shares of Southland it holds. If Southland gets the IRS default solved, shares of Palladin might become and interesting play before Southland trades. If they don’t get the IRS default solved, we are all dead in this thing. Nothing to do now but wait. If you look back at my content, you will find this is a consistent theme. 

  14. I understand the desire to list on the Nasdaq, and who doesn’t want to see a $4 price. However, why don’t these shares trade in the same manner as the old shares did. Are they saving money by remaining unlisted. What are the positives and negatives to trading as a penny stock until the IRS situation gets resolved.

    Editor: Based on your comment, I’m not sure you understand what is happening here. They aren’t saving any money by not being listed. They simply won’t get Southland listed until they get out of default with the IRS and GE Capital. Then, they can apply for a listing. In the meantime, they have all the costs of being a pub co as they do all the filings. The new shares have nothing to do with anything. Palladin is just a shareholder of Southland, and all I care about is Southland. 

  15. Talked to them this morning. They are working on sending out the certificates. Told me to harass them in 3 weeks if I don’t see them. :)
    Also working on the IRS settlement.

    Editor: Glad I was able to help. The IRS settlement is all that matters in this case. I’m sure there are a few random stock certs still to go out, but it’s the IRS thing that opens the door to moving forward. 

  16. If I understand you correctly based on your answer to my previous question, no exchange /market will allow the shares of Southland to be traded until the problems with GE & the IRS are worked out.?? Assuming that they resolve these issues and the they still don’t qualify for the Nasdaq, then at the point they will obviously arrange to have the shares traded elsewhere like Bad Toys. Based on your answer, these other options are not currently available because of the o/s issues with the IRS? Please clarify.

    Editor:  That is my opininon. No worthwhile exchange will take them until these problems are resolved. If they can solve the problems, I can’t predict if they would be willing to open on a lesser exchange like the BB- I believe it’s not worth worrying about until we know they have refinanced the debt.

  17. I have been following this company (plhi) for years and it is a steal at this price. They are trading lower than earnings. They will be priced at .25 buy Dec.
    Mark my words.

    Editor: I have no problem believing that if they make some progress with Southland. 

  18. I know that $4000.00 may not be alot to most investors but any ideas on why some one bought 40000 shares at .02 over market?

    Editor: Who knows- not sure what you are talking about with the stock are around $.10, but could be an interesting speculation at this price.