TheDirectory.com, Inc. (SEEK)

[Milesblue42]

***IMO-EXCELLENT DD on CEO-Scott's 1/22/15 CONFERENCE-CALL***

SEEK CONFERENCE CALL DD:

First of all, as of today the O/S has increased another 258 MILLION shares to 5,600,028,020 shares issued and outstanding.

Yes, SEEK O/S = 5,600,028,020 shares

Call for yourself and confirm:

Standard Registrar & Transfer Company Inc.
Phone:[phone]

So here’s some DD to keep in mind while you listen to Scott Gallagher, CEO extraodinaire, BS his way through another conference call today…

Let's talk about "debt reduction:"

On August 7, 2013, SEEK had 3,501,000,000 shares authorized, and 2,847,521,297 shares issued and outstanding.

On January 27, 2014, SG filed a Form 10 (without issuing a PR about it), which said:

Quote:

On December 10, 2013, our Board, acting upon shareholder approval [i.e., SG voted to approve his own decision], approved an amendment to our authorized capital stock, such that the total number of shares of authorized capital stock we have the authority to issue is six billion, one million, two hundred thousand (6,001,200,000) shares, consisting of six billion (6,000,000,000) shares of common stock

Not surprisingly, this is what followed in 2014:

January 14, 2014: 3,459,840,109 shares of common stock issued and outstanding.

April 14, 2014: 3,888,249,199 shares of common stock issued and outstanding.

July 7, 2014: 4,415,815,342 shares of common stock issued and outstanding.

August 1, 2014: 4,582,615,721 shares of common stock issued and outstanding.

August 14, 2014: 4,745,000,000 shares of common stock issued and outstanding.

September 29, 2014: 4,765,000,000 shares of common stock issued and outstanding.

October 13, 2014: 4,847,615,721 shares of common stock issued and outstanding.

October 29, 2014: 4,929,462,635 shares of common stock issued and outstanding.

December 4, 2014: 5,341,999,499 shares of common stock issued and outstanding.

January 6, 2015: SG amends SEEK's Articles of incorporation, authorizing the issuance of up to 30 BILLION SHARES...

January 22, 2014: 5,600,028,020 shares of common stock issued and outstanding.

To sum up, in one year SG has issued 2,140,187,911 shares.

Worse, in the past 15 months SG has issued 2,752,506,723 shares (that's TWO BILLION SEVEN HUNDRED FIFTY TWO MILLION FIVE HUNDRED SIX THOUSAND SEVEN HUNDRED AND TWENTY THREE shares).

If that’s hard to conceptualize, here’s a chart:



But dilution doesn’t matter, right? The PPS will “fix itself” according to SG, right? Plus, he’s done a GREAT job building shareholder equity, right!!! (Listen to him tout it on the call today…)

What about revenues?

Here’s a chart from after Q3:



Let's look at the numbers percentage wise:

Q2 showed a 40% DROP in revenues over Q1

Q3 showed an 18% DROP in revenues over Q2 and a 51% DROP (!!) in revenues compared to Q1

This is top-line revenue, before all the expenses are taken out. You cannot justify this as being due to “unexpected” costs.

Remember the June 12 PR during Q2 when SG said:

Quote:

During the quarter we completed the phase 1 build out of our new 4,600 square foot offices in downtown Red Bank, New Jersey. Red Bank is now online and will begin contributing to revenue and earnings growth this quarter. This week we moved into our new offices in Tampa. The Tampa office will be built out and staffed over the coming weeks and will contribute to revenue and earnings growth this quarter as well.

How'd that turn out?

Or when he said on June 30 about the ad campaign that:

Quote:

data confirms what we had hoped to achieve with our first ever 30 second TV ad spot, when people see our commercial, they're going to our site, the ad is working

[and who can forget...]

TheDirectory.com will be releasing campaign statistics on a monthly basis.

So what is left to explain the Q3 financials except (1) the ad campaign (and the business model) is failing; and/or (2) businesses that list on thedirectory.com are leaving because it is not working.

And what about Q4?

Given the Q1-Q3 trend in declining revenues, and the fact that SG has not said anything about revenues or profits in months, and the supposedly operational call centers and new employees, and the cost of re-launching the Hello network, not to mention travelling to all those conferences lol, I see no reason to expect SEEK to show a profit in Q4. Instead, SG just continues to pay for everything (or, rather, have shareholders pay for everything) with shares. No wonder he needs 30 BILLION OF THEM

But don’t worry, 2015 is the year right! Lots of exciting things ahead!!!

Like more debt reduction. And a R/S…

Oh, and hey, anybody remember that PR that SG released on September 29, 2014, that said this:

Quote:

TheDirectory.com Readies for Launch of First Ever Satellite Radio Media Campaign

TAMPA, FL--(Marketwired - Sep 29, 2014) - TheDirectory.com, Inc. (PINKSHEETS: SEEK), an emerging leader in the Vertical and Local search space, today announced that it will be launching its first ever satellite radio media campaign on SiriusXM satellite radio. The campaign is scheduled to begin on Monday, October 13th, 2014.

Not a word about it since, and nobody has heard a Sirius commercial as far as I know. Funny, though, how that PR was released just before another large conversion and SEEK’s drop to new lows right after October 13. Hmmmmm….

Good luck getting your questions answered today.