$heff's $tation of $tocks & $olid DD

[$heff]

Attn: Rare Lotto Play on the thread..I typically rarely if ever do lotto plays (OTC non-bio) on the board but I like one that I have been researching for the past few weeks. I typically allow two to three per year if that. They have always been biotech stocks but this is the first non-biotech stock I have allowed & it is awaiting news here shortly. ASH has been doing a lot of DD on the stock. The ticker is $PIOI. That is a LOTTO play on the thread!

DD from ASH111..PIOI Full DD, 01/04/17 : Mid-Long Term holding, main reasons:

PIOI in the process of undertaking the activities and negotiations with investors. it could be done overnight but also in Q1 2017,like any complex transaction.

1) Debt free.
2) 500m+ NOLs
3) >20 patents to monetize
4) $4,1mm tax credit
5) at least $1mm cash
6) insiders ownership 40%
7) some institutionals increased their positions
8) new investors will bring cash
9) ready to acquire profitable businesses
10) insiders accepted to be paid with shares at 1,30$ per share (half 2015 compensation)

Based On RELY's same deal the value is at least $100m. RELY trading almost 40 times PIOI, w/only 80% higher value in NOls :

It's important to note that RELY's acquisition has yet to result in profitable operations which is why their market cap isn't even higher than the current $177.6m. Although it will be difficult for those of us that are already in to hold beyond $1.00/$1.30, a decent patent evaluation and viable acquisition could put this well above that.( No-dough-go comments).

PIOI a $4M cap co. A/o today( w/zero debt) W/$500m+ NOLs,
https://finance.yahoo.com/news/active-power-adopts-tax-benefit-000026095.html

RELY a $200M Company W/ $900M+ NOLs
http://seekingalpha.com/article/3958586-real-industry-200m-company-900m-nols

In addition, PIOI has 20 registered Patents: on a conservative estimation of only $1m per patent we have an additional value of more $20m. http://www.p10industries.com/patent-licensing

I think we might see a private placement at around $1.3. shareholders accepted to be paid with shares at $1.3 and exactly those shareholders approved the deal.

"On September 21, 2016, we received a non-binding term sheet from a potential investor in Active Power regarding a proposal for Active Power to acquire an existing profitable operating company".

"On September 26, 2016, our board of directors held a special telephonic meeting. At the meeting, Mr. Ascolese updated our board of directors on the status of the negotiations with Langley and negotiations with three potential investors in Active Power".

slojab
Sunday, 11/20/16 07:19:03 PM
Re: None

Post # of 1550


I received two emails responses from Jay Powers.

On 11/20/2016 10:57 AM, Jay Powers wrote:

Thank you for your comment and support. As our press release indicated we continue in our efforts to raise additional capital to support the working capital and acquisition strategy of the business and we anticipate that this step will be completed before the end of the year. Our objective is to monetize the patents that we retained and to acquire well run and profitable businesses. We do anticipate that this will result in increased shareholder value.

Thank you
Jay Powers
CFO

After I responded to him, he replied again....

As you can see in our 2015 10K filing, our domestic Federal NOL’s at the time were $235.5M. There are stringent IRS regulations essentially prohibiting a company to acquire control of another entity and utilize the NOL’s. The NOL’s can be used by the entity generating the losses including the profits of entities it may acquire.

For clarification, no company will be acquiring the ACPW ticker. The asset purchase agreement with Piller required us to change our name because they will continue to use the Active Power brand. We are changing our name to P10 Industries and therefore required to change our ticker.

Thank you for your interest.

Jay Powers

Bustajoy
Tuesday, 01/03/17 12:48:03 PM
Re: EnricoMania post# 1749

Post # of 1770

Got an email from the president and CEO this time around. Sounds optimistic, and said they are well down the path of implementing the go-forward strategy, and as soon as they have something of substance, they will announce.

"We are looking forward to successfully implementing the strategy, and as you can imagine these transactions take longer than one would expect, and like you I find it hard to be patient in the mean time...".

Looks like they are just trying to put the last pieces together. Hopefully something soon enough. Sounded optimistic and about ready to pop out the pr, just making sure everything is right.


About NOLs:
(EnricoMania Comments):
look here to see how NOLs are used by companies to offset taxes.

https://globenewswire.com/news-release/2016/12/28/901923/0/en/Live-Ventures-Announces-Biggest-Year-in-Company-History-Achieving-Record-Earnings-of-8-92-Per-Share-With-Continued-Growth-Anticipated-in-2017.html

"The company’s outstanding year-end results were partially attributable to the stellar performance at its wholly owned subsidiary, Marquis Industries, and partially to other non-cash income realized in connection with the Company’s deferred tax assets. These net operating losses (NOLs) were accumulated prior to Live Ventures becoming a diversified holding company and allow it to defer over $30M in future income. The NOLs provide the company a unique advantage in that it can keep a substantial portion of its income -- which normally would have been expensed at approximately 35 percent for taxes, and redeploy it in other areas such as stock repurchases, retirement of debt, or new acquisitions. Although a portion of this year’s earnings was attributable to its deferred tax assets, management believes the growth factors explained below will offset non-cash income realized during this year".