Leatt Corporation, Inc. (LEAT)

[ladyinwaiting]

LEAT:

Hey Royal, I think we still have people, just with no moderator, and lack of interest, here we sit.

I did notice the b/a is moving around, with no trading tho'.

Hopefully 3rd quarter fins will spark a bit of lift in share price and some interest.

GLTU
liw

[RoyalShmily]

3Q numbers should be excellent - They should have alot of new product announcements?

http://www.dirtbikeworld.net/forum/showthread.php?p=1119693

Their Facebook site has over 10,000 friends, FFS.
The product has saved many lives and careers.
And yet no one buys or talks about their stock???
The Brand is amazing.

Am I the only one that sees the P/E ratio of like .3

Nothing bad here at all, but everybody is like....shhhhhhhhhh.....

???

[RoyalShmily]

Have you all seen the new website?

www.leatt-brace.com

They are still doing things right...
Just No Market Maker :(

[RoyalShmily]

Still here - still agree w/ you both. Still pecking away, but we must be the only ones, LOL.

Ryan Dungey being at the top of the sport doesn't hurt, either, although I think we are all about the new products and new sports at this point.

I'm also surprised there has not been more action from someone "anyone" to mandate either the testing standards, or braces themselves.

Same stuff, different year - lower PPS.

[rollem]

who knows....now maybe they will be more proactive talking to shareholders and have more time to focus on their business..

i do think that is good news though.

[pungushe]

Sec investigation over, with recommendation of no action. Took a while, nice to get it out of the way, but it looks like the damage is done. I think this stock was about 40 cents when this investigation started. Sigh...

[rollem]

Makes sense...I have actually been picking away. Valuation very low and even a broken clock is right twice a day. Someday Chris will end up selling the company. Will never get what he should have as he has been pretty lazy and lax running the business. Lets face it, he was an orthepeadic doc, and never a very good businessman. The attention to detail is embarrassing.
Web site, shareholder letter, and on and on.


long and wrong, but hope springs eternal....and as you point out
the product is really good...in the hands of a real company they could earn a great deal of money with it

[pungushe]

Im still here and waiting. Ive just put these shares in a drawer and will check them out in a couple of years. Great product, good sales but the management dont seem to intetested in improving the stock price. That cant go on forever, someone will buy them, dont you think? Heres hoping. Ive seen so many other companies priced way above this only on hope. Maybe Leatt's day is still to come...

[rollem]

Hey....anybody still check this board ever? Stock has drifted down to .035-4pennies. What a gigantic dissapointment. Anybody talk to the braintrust at the company that has done such a good job of bringing us to this point? More competiters in the markets with lots of companies offering neck protection, but Leatt still has one of the best, and prices are still pretty steep for a good brace. They have gotten in the habit of reporting earnings in a timely manner which is a big positive, now we need to see the revenues begin to grow again. Hopefully the new guy in charge can help focus them in their core markets. At a roughly $5million market cap with something like 12+ mill in sales this year (thats a guess) and $2 million bucks in cash (thats a fact) this is still a wicked cheap stock. They need to bring some professional management into the business that can maximize shareholder, not to mention Chris Leatts, value.....

long and wrong so far.....
course cant lose much from here,lol, hard to get hurt falling out of the basement window

[RoyalShmily]

This is cool, too. This is a magazine article (dated today) from a Motorsports magazine in Dubai.

http://gulfpetrolheads.com/2010/05/14/hans-devices-%E2%80%93-brace-yourselves%E2%80%A6%E2%80%A6/

The article is well written in English, and details the histories of both the HANS device and the Leatt-Brace, and sings the praises of both.

There are so many magazine articles and reviews of this device it is crazy.

23,000 Google page updates in the last 24 hours for "leatt-Brace". The thing gets crazy press. Amazing.

[RoyalShmily]

What many hoped for: Dr. Leatt Steps Down!!

http://ih.advfn.com/p.php?pid=nmona&article=42786724&symbol=NO^LEAT

I wonder why Mr. MacDonald is not on their website under "Meet the Team".

Anyone know anything about the new CEO?

[RoyalShmily]

There is more hidden in this story, to be sure! Good find and post - I am assuming you have been watching the story closely.

The past history of this stock was riddled with messes like this, it seems - and this is still aftermath of the "SEC Investigation".

There will never be a true explanation of this - there are 3 sides to this story, too.

What I do know is that the stock has flatlined for years, now, while all this has been settled, and there have been substantial accounting changes within.

The share price can't go much lower, anyway, realistically.

The crappy thing has a market cap of 5 million and revenue of 10 mil plus - including paying taxes and profit.

a P/E of 0.5 can hardly be punished much more. Give it the P/E of any normal company (the product deserves this, does the management?) - but this is pretty ridiculous.

LEAT is pretty unique, though - so who knows?

"Saving lives every day - and yes, the stock tanked again."

[Rallyboy]

The guy who listed Leatt is going to jail for fraud by the SEC, interesting.

http://www.newsfirst5.com/news/former-springs-ceo-apologizes-on-his-way-to-prison

I would suspect the Leatt shares will soon follow in his tracks.

[RoyalShmily]

This is all that matters.

That kid is telling his absolute truth to us.
He will buy another Brace. This next one will probably have decals with his number, and it will be "his" brace.

This right here is a powerful point on the timeline of this great little company.

It is such a shame what has happened to this stock, and I am always amazed at how separate the emotions are for both entities.

People love "their Leatt's", but they hate this stock lol.

[pungushe]

What did you folks think of the 2009 numbers?

Based on what they reported in for Q1-3, they actually made some money in Q4. Not much though. Sign of things to come? Q1 results shouldn't be to far away.

They had revenues of $13 million and sold 80 000 braces, which means each brace is being sold for ~$170, which is a far cry from the $395 price tag the normal GPX has. They are giving their distributors plenty of room to make some money.

I'm still hoping that some company comes along and wants to buy Leatt Corp. Think there's any chance of that happening?

[motoman]

You'll love this.

I called the IR guy today and asked him what they're trying to sell to the Federal Government. I almost started laughing when he told me they're going to try to sell them to the government, to make sure people aren't hurt on the base's riding motorcycles.

I replied, "why would they waste energy on such a small group of people when their target industry is so unaware and uneducated about their products?" Leatt still doesn't even have a good presence at motorcycle dealerships. Complete lack of focus.

The guys running this company are f______ing idiots.

Bad numbers are coming. As soon as a company pulls the old "we're going to try to sell this to the government", trouble is around the corner.

[motoman]

I see there's some recent news about promoting the products of Leatt Corporation.

The timing of this means their final year numbers are horrible.

Watch and see. It's time for Dr. Leatt to sell with someone who has the money, and ability to sell the products they currently have.

I bet he made some cash in 2009.

[RoyalShmily]

:) Lackluster is a good word.

It is just amazing at this point - pretty unique I think.

You think the SEC still thinks they are spamming? lol.

GL to you too.

[ladyinwaiting]

Thanks Royal,

Nice to see some activity on the board, otherwise, pretty lackluster stock, but I don't own but a handful of shares.

Anyway, thanks for the link to the article.

gl
lady

[RoyalShmily]

Also, FYI, here is an excellent article comparing the different options and companies making neck protection.

From Cycle News Mag - it is a very good read if interested.

http://www.cyclenews.com/articles/industry-news/2009/11/04/neck-protection-let-s-talk-about-it/full

[RoyalShmily]

Did anyone hear any more about Dungey's brace falling off at Atlanta? Seems like since he has been training with RC, and now since the "malfunction" - it will be interesting to see if he wears it next week (Anaheim I think).

Also, I had never seen this, but Davi M. seems pretty moved when he reflects on the brace and his crash in this short vid.

Good Luck all.

[motoman]

Not much for news lately.

I'm sure they'll blame the next crappy quarter on the economy. Meanwhile sixsixone comes out with another copy. Their market continues to get picked apart. Oh well, Dr. Leatt is making some cash with his commission part of the agreement.

[motoman]

That is some exciting news. He has a track record of success. Hopefully he can put them on a path that goes in the right direction.......

[pungushe]

Seems we're getting a new general manager:

http://www.dealernews.com/dealernews/Aftermarket/Phil-Davy-Takes-Position-at-Neck-Brace-Firm-Leatt-/ArticleStandard/Article/detail/635412?contextCategoryId=48447

Hopefully he'll make a difference.

Can't be long til Q3 results are released. What are you guys expecting?

[rollem]

Not sure about the freight train thing moto, but do not disagree with most of what you diss the company for. Seems as though Leat hammered Alpinestars on price and has outsold them by a wide margin, so this is just Alpinestars trying to get back in the ballgame with a low priced non adjustable brace. Not a positive for Leat by anymeans, but hardly the end of the world.
Totally agree that Leat still has limited to zero shareholder correspondence. The US president is more a figure head and has no experience in the industry. Dr Leatt is an inventor that does not have very much business experience and even less public stock mkt experience. They move at the pace of molassas in SA.
All that said and done still has a mkt cap of about $12.4mm dollars (138mm shares x .09). Sales (declining in this enviroment for sure) of $18mm and about $3mm dollars of cash on their balance sheet as of the last report.
They did manage to get back on the pink sheets. We can at least see a bid and offer. Product is good. Likely to never get what we should out of this but still possible to get more than it is. Ya pays your money and ya takes your chances.

[VegasTony]

I saw this.. Not good news.I can only hope that their new product launch in 2010 is something that puts them ahead of the curve again.

[motoman]

http://www.motosport.com/dirtbike/product/ALPINESTARS-BIONIC-NECK-SUPPORT-SB/?psreferrer=http%253A%252F%252Fwww.racerxonline.com%252F%253F&catalogId=115617

Go to this link!!!!!!!!

The freight train is about to run this company over. Just because you have a superior product, doesn't mean you'll win. Especially if nobody knows it exists.

Arrogance and incompetence leads to failure.

[rollem]

Ok so we are well past the public meeting. Charms.....any thoghts as to how it went? There do seem to be more market makers in the stock, albeit some of them slime balls like DOMS. Has anybody heard anything new regarding the fundamentals of the actual business? The last quarter was poor, no shock given the economy and guessing this one will be nothing to write home about. Did anyone that went to the meeting learn anything? Did they actually have a meeting?
Inquiring minds want to know....

[Butte Creek Caynon]

Any news from the meeting today?

[motoman]

Regardless of economic conditions, a high growth company that shows a loss in the early stages, says you're on the wrong track. Also, ask why there's so many shares, why don't they do a reverse stock split to raise shareholder value. I'd love to hear their answer to that.

Ask these at the shareholder meeting.

[pungushe]

Quoted from Q2 financials:

"At June 30, 2009 the company had cash, cash equivalents and short term investments of $3.3 million."

So it's not as if he's sucking the company completely dry.

As always though, I'm excited to see the next piece of news. Hopefully they'll have something interesting to tell us at the shareholder meeting.

[motoman]

This stock will never rech $1.00 per share. Never.

He owns so many shares, he'd sell it all for 40 cents. If someone would actually buy all his shares.

[motoman]

If we can (just for fun) disregard the fact that Dr Leatt is making a lot of money compared to what the company is making (which is worrying and will probably be discussed at the shareholder meeting), there's been a lot of progress, for example:

You said it all my friend. It all really is this simple.

Whenever the owner of a company, that is publicly traded, sucks out as much money for himself as the company makes, you've got a serious problem and conflict.

By the way, is anyone going to ask about his fraud conviction at the shareholder meeting? We've all been curious to the details of this.

[pungushe]

I tend to agree with VegasTony, here's why:

If we can (just for fun) disregard the fact that Dr Leatt is making a lot of money compared to what the company is making (which is worrying and will probably be discussed at the shareholder meeting), there's been a lot of progress, for example:

1. We used to complain there was no news but they've improved that and we've been flooded with news lately

2. We used to complain that they never reported numbers, well they've been reporting in a timely manner for the last 3 quarters

3. We used to complain that they couldn't get relisted, well they've managed that

4. We've been worried that they only have 1 product, well they've mentioned twice that new products will be launched in early 2010

5. Advertising is lacking, but new markets are opening up regardless.

These are all steps in the right direction It hasn't been the huge success I hoped them to be, but who knows what's around the corner. This recession has hurt far more successful companies than Leatt Corp, so I'm not so shocked their numbers have been dropping. Lets hope they can turn it around soon though.

[motoman]

VegasTony,

That's just it. You obviously don't get it either.

I personally own and wear a Leatt brace. I won't even ride my trials bike without it. I go racing every weekend, motocross, hillclimbs, flattrack. I've tried on the EVS and it's the most inferior product I've ever seen.

But, it's on the showfloor of every dealership because they have promotion, distribution, and name recognition.

I personally called Leatt's public relations, received a phone call, and gave them the owners name of Parts Unlimited to try to get them an appointment to get their products sold in their catalogs. I used to buy alot of stuff from the owners original store in Janesville, WI. If you knew anything about powersports, you would know that if you aren't in a Parts Unlimited or Tucker Rocky catalog in the United States, you're doomed.

Leatt is relying on "word of mouth".

I'd bet you don't race, or go to many races.

How much promotion and name recognition could we get for half of what this guy is sucking out of this company?

[VegasTony]

A little early to pass judgement on a guy that revolutionized safety in motocross. If he can deliver new products in 2010 then he's worth the money. What I found interesting was the number of downhill mountain bike posts on their website. New products, opening new markets, updated financial news, getting the stock relisted. After some early growing pains the company appears to be delivering.

As far as the EVS brace a friend of mine had a Leatt and bought the EVS for his son. I tried it and the fit was awful and it was a cheap piece of plastic. I'm sure at the hill climbs you saw plenty of cheap HJC helmets, but do you wear a POS like that when you ride?? EVS is a cheap knockoff and and I doubt you will ever see a rider wearing one in professional competition. Since you do business with powersports dealers you should try putting the EVS brace on then a Leatt and tell me which you would rather wear.

[motoman]

I have a small business I started a little over a year ago. We work with powersports dealers in the upper midwest. Last month we generated $70,000 in revenue with a little over $45,000 in expenses. Do you know how much I personally paid myself?

Five grand. Everything else goes back into the company.

This guy makes more himself than the company as a whole.

The guy is an idiot. Well, maybe we were idiots for buying his stock.

I was at the AMA Amatuer Hillclimb this weekend in New Ulm, Minnesota. I counted four times as many EVS braces as I did Leatt Braces. I asked several people why they didn't have a Leatt Brace, and they told me there wasn't any difference.

Obviously, there's a huge difference. EVS has management.

[Rallyboy]

Just a guess to, but that is lots of stock of braces that are not selling/sold.

I guess they might allude to whats new at the shareholders meeting to keep everybody well distracted from the real issues. But again just a guess.

[pungushe]

Just a guess, but since they sell 4 types of braces, perhaps they have 2 million in stock of 3 types and they ran out of the other?

The earlier press release says they braces weren't shipped before June 30th so it sounds like they've been ordered/bought but can't be put in the books until they've left the warehouse. If that's the case, those orders should easily be recovered in the next quarter.

2 weeks til the shareholder meeting, will be interesting what they have to say there. They've mentioned in 2 different press releases now that new products are on the way in 2010. I wonder what?

[Rallyboy]

NETT LOSS $400k for Q2.

I do not understand the previous Press Release saying no stock for Q2 when they have $2M worth of stock in inventory according to the audit.

Their marketing efforts are clearly lacking and not stock levels.

[ladyinwaiting]

A good post, nice to know they are at least putting some news, and positive at that.

gl
lady

[rollem]

wow, one day after a mini rant i have to eat crow.....not loving the taste o dat, but have to give em credit for at least getting relisted on the pinks...didnt think they could do it.

ladenburg is a credible small broker dealer

[pungushe]

Leatt Corporation Common Stock Commences Quotation on The Pink Sheets

http://finance.yahoo.com/news/Leatt-Corporation-Common-iw-1595014798.html?x=0&.v=1

This has to be good news, no? Anyone know if Ladenburg is a good thing or not? A big company like that wouldnt get involved with Leatt if they thought it was a lost cause?

At the very least, things are moving along. Even if they are moving slowly...

[Rallyboy]

At least Leatt has now moved up the "Dark" band from Grey Sheets to now Red Sheets. Still no good i say but at least a move up.

I do not sit well with the latest press release on the New Zealand deal. One of two things is happening here, 1 they need to make more profit so cut out the middle man or 2 the middle man was not doing a good job. I suspect number 1, as NZ is not that big of a market to have wasted money to do that move, so they are obviously counting pennies at the moment.

Any idea no matter how good, is no good with bad management (the opposite is also true, bad idea with good management). So you are absolutely right about don't bet on the product.

Anyway i hope there is some good feedback here on the Shareholders AGM. I really want to know how that all works out.

Also, does anyone know of other Message Boards that are active on the Leatt Topic? Please post links.

[rollem]

HAH!!! Well now we can see where the 700k shares came from and why. Company put out a bs press release. Missing the Q by a mile. My bet is these guys never get relisted as it looks to be a fraud. Seriously doubt we can even get a nickel for our shares anymore. Just goes to show, in small companies never bet on the product.....have to bet on the mgmnt. Horrible bet in this case. Horrible management.

[rollem]

Not true....anybody can sell shares. Guessing you could sell all you want, just maybe not at the price you want. Pretty sure you could sell size at a nickel. Seemed like a big slug traded at that level recently.

[Butte Creek Caynon]

I emailed PW Richter about this issue, with no response. I then called him and personally asked him about this issue. I received a bone head response indicating that he thought he replied to me, but stated that he sent our request to Leatt. I then asked him about the road show he took them on and received a different answer regarding the purpose of the meeting then he initially stated months ago. This company needs new leadership and should consider selling the organization to a company who can quickly integrate it into their existing product line and distribution channels.

[Charms]

Rallyboy. I'll ask the questions. You right not sure if they are going to answer all but... you never know. I just feel that I have waisted my money on something that looks like its going nowhere.

[Charms]

Hey Motoman.

Yeah and risk not being allowed to attend the meeting. Thats to say if the meeting is still going to happen and if the address is correct. I keep on phoning the number given on the web site for SA but no luck. Get the damn machine every time.

[motoman]

Hey charms,

You should show up wearing an EVS brace. That would be classic.