Spectra7 Microsystems Inc (SEV)

[GARYM1]

Where are you getting 20 mill a Quarter Company recently put out numbers stating 16 mill 2024 25 mill 2025 and 40 mill 2026

[prototype_101]

Ah yes, you are absolutely right, the market cap is definitely going to be a factor with the newly (highly) inflated O/S shares

here I previously posted this

KCC, ok so 66mil fully diluted shares today

plus 13mil shares to convert the debt

plus 204mil shares from this PP (102M shares + 102M warrants)

brings the total O/S to 283mil shares

so at 10 cents per share equates to about 28 mil market cap

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174365371

and yes, there could even be a 2nd tranche, this would be indicative of a stronger anticipates ramp for higher expected volumes and be encoraging in my mind

so yeah, depending on how quickly 800gbs ramps and how widely S7 ACC's are in that adoption will set the stage for PPS, hopefully S7 can at least be doing 20+ million in sales in 2025 and 40+ million sales in 2026, somehow I still believe that there will be either a large player JV or an outright buyout by 2026

[FutureGNR]

Proto, while I agree with you that 0.10 is a temporarily low price, we also have to keep in mind that 0.60 or even 0.35 with 80 million fully-diluted shares is a market cap of between 28 million and 48 million while those same per-share figures with 300 million fully-diluted shares is between 105 million and 180 million market cap.

The new share structure changed that, and the share count might be even higher if they do another tranche.

now, having said that, with the new structure and no debt to speak of, and with their actually now being ready for the 800G roll-outs, I absolutely believe we will see those higher market caps, but they will be based on the sales going out, not on the former per share prices of a few weeks ago.

Even with 400 Million shares out, they will be fine. Once 800G garners them 20 million a quarter or more in sales, a 180 market cap will be easily doable. I just read another two trade articles about the second half of 2024 being when 800G actually rolls out, so its near... But, again, the new rise in share price will be based on those upcoming sales rather than simply returning to earlier prices just because it was there once before.

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[prototype_101]

yp said 0.05, ok so why will it be 50% below the already crazy 85% off fire sale PP price of .10

riddle me this, how could the market value of held .60 for 5 weeks for "modest" PP to be completed, and then only be priced at more than 80% off that .60 ongoing 5 week valuation given by the market

as some here have said, something stinks about the whole deal, it's a "virtual" takeover by a new "investor class" while the long-term supporters are now just peanut gallery holders of S7

wouldn't it make more sense for it to meet in the middle between the .10 PP price and those last 5 weeks of ,60 trading after the PP was announced, that would be about .35

also, in my mind, this new "investor class" I'll bet would be happy to scoop the peanuts gallery old investor class holdings up at prices between .10 and .40 as much as possible, keeping in mind that .40 is still a 33% discount to the .60 originally being sought after for the "modest" PP

[yp_1]

0.05

[prototype_101]

I would think the share price will rise, here's why

1) the more I think about it, the more it seems like this PP being done at about 0.10 seems like a game of dirty pool, why? because the share price from 3/5/24 to 4/12/24 held at bout .60cad, now if in that time they were having trouble getting it fully subscribed I would bet the ranch they could have made continuing concessions of 5%. then 10% then 20% then 30%, ok well you get the idea, and eventually it would have priced/filled, but apparently no effort was made in this regard

2) then a "rescue" the shareholders PP is placed at .10 and the bulk of the ownership is taken away form the long-term investors

3) the new investors will likely be the big winners not just because they own the vast majority of the company for about 80+% under the last market price before the collapse based on the news release saying S7 will be "running out of cash" in 2 weeks!! and that was declared after 5 weeks of doing nothing to get the PP done much less horrible drop in PPS

so yes, I believe the technology opportunity is still there, and the funds should now be in place to implement at 800gbs, so I believe the PPS will trade up from the newly created low and slowly head back to .60cad where it fell from abruptly, jmo

[GARYM1]

Any guesses as to shareprice once new float is active

[tedpeele]

I was the first poster here years ago and Steve S. and I shared an interest for a while, but once the CEO died and revenues from Oculus failed to impress I got out.

Too bad what happened here, but the financials always were so weak -

[kytrader77]

I thought you said you were going back away for a while? We enjoyed the silence.

[prototype_101]

Perhaps that investor that pulled out had a similar mindset to me and believed that after the announcement of the PP that the PPS would have taken a 10 to 20% hit where they would have been comfortable purchasing the PP, considering there was over a month for the PPS to decline but it never did that purchaser presumably finally told S7 that they were no longer interested in participation at the current pricing, all of that is simply a theory but we will never know because it's in the history books now and it is what it is, so once again I say x marks the spot you are here do you now still believe in this technology and if you do then presumably it is a screaming buy at $0.10 and an easy 10 plus bagger from here

[SEV123]

Yes I get your point. I just pull my hair out when some just dismiss dilution especially when management f'd up.
Again, who was this so called investor that pulled out? Apparently this investor approached the company and then bailed.

[prototype_101]

yes, I/we FULLY UNDERSTAND your point about dilution, but do you UNDERSTAND my point?

S7 now has the resources in place for implementations at 800gbs presumably with $$ for production ramp, not just the "modest" PP which would NOT have had $$ to ramp 800gbs production

X marks the spot, YOU are here!!!

Do you believe in the technology and believe it is a 10+ bagger from HERE? If so, it is time to load your boat, if not, then don't

[SEV123]

I am pointing out dilution and why it's bad.
10 bagger in 1 to 2 years? A 10 bagger from here .10? Remember there was a poster saying he had sell orders in at $10 to start

Future, is that what you are holding on for, a 10 bagger from 10 cents? Breaking even?

[yp_1]

Do you propose to chat about our fiasco? How logical would it be? Nobody likes talking about their unfortunate decisions. Write it off and move on, or you end up in a psychiatric ward…

[yp_1]

SEV123, as long as FGNR the Masochist enjoys the moment, nothing else matters. Our local Oracle has spoken.

[prototype_101]

SEV, I agree with future that investors have got to let it go, turn the page, what is done is done, I pointed out the warning signs multiple times that

1) the PP was buried in another news release on 3/5/24
2) it was taking way too long too fill a "modest" PP
3) and if it was only going to be 1-2 million it was not going to be for 800gbs ramp

Ok, so look at the chart and see that the PPS stayed relatively flat from 3/5/24 to 4/12/24 (in fact the close was a penny higher on 4/12/24 than it was on 3/5/24) then the sobering news came and the PPS plummeted

One thing I will say is that historically when the PP was announced the PPS generally moved lower in anticipation of the PP, that is why I sold ahead of the PP announcement because I knew one had to be coming, so I was quite surprised that the PPS held up so well, perhaps if it had taken a 20% hit from ,60cad (.45usd) then the PP would have been priced/filled, but investors will never know because it's in the history books now, investors are left with a choice, thankfully NOT eliminated, that they can either still believe in the technology, accept the dilution, and invest at these fire sale prices, or they can hold what they have invested already and wait for the breakeven point to exit or make a small profit, or they can sell now for a big loss

personally I am currently in agreement with SVE and future that now is the time to load your boats because this PP should take us into the 800gbs implementations which is the long awaited "sweet spot" for S7 ACC's, full disclosure I added more shares several times yesterday, the way I see it, S7 should be an easy 10+ bagger from today's price within 1-2 years

[CleverAces]

I too am surprised how nonchalant most here are about the level of dilution. Oh, and btw, its the retail investor who got diluted here. I would bet all insiders and institutional investors participated in the PP. The PP share price was intentionally determined to squeeze out all of us on this board and anybody else who invested through the public market. They could’ve picked any share price for the $10M raise. But no, they went with a rock bottom price to basically take the company private without buying out retail investors.
How many shares after this PP will be publicly traded?

[SEV123]

Dilution.
Company gets sold $400 million.
40 million shares = $10/share
400 million shares = $1
Someone dropped the ball and we are just pointing it out. Should we congratulate management for this?

[FutureGNR]

Two weeks ago, when most here thought this was a total loss, if you were promised then that this would be saved... at Any cost...everyone would have yelled Hallelujah.

Now, today, when it IS saved, most here are angry and upset.

Reminds me of those comedy movies where someone in dire straights pleads with God to give them one more chance, but as soon as they get that chance, they immediately revert to their old, ungrateful ways.

This was Painful for Me Too. Maybe more for me than Anyone else here... But I have accepted what's here and moved forward. I am grateful to still have an opportunity here.

Seriously folks, either face reality and accept what you have, or sell and move on. The choice is YOURS.

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[SEV123]

If dilution is not an issue than why not go for a billion shares?

Dilution is an evil word for many and for good reason. Dilution and on crappy exchange makes it even worse.

Two big mistakes by management, firstly not doing a much larger PP at .65 and second not getting on a U.S. exchange.

Yes they have a great thing but that doesn't mean you can't voice your disappointment with management.

[jacksonjohn]

When the next RS happens future will be thankful to the leadership for addressing the share price issue.

[yp_1]

Drums and trumpets, again…

[FutureGNR]

OK, then complain about it. Yell and scream if you have to. But what will that DO for you? What is done is DONE. You cannot change that.

What you CAN do is do the best FROM HERE. Fine, consider your ENTIRE previous investment a total loss (Which it actually is Not). Even if you do, EVERYTHING you invest FROM HERE is what will make you money down the road. So even though you lost ALL your money Before (Which you actually DIDN'T), you can STILL make money FROM HERE.

If you Don't BELIEVE in the Company FROM HERE, then you will have suffered a TOTAL LOSS For REAL.

The choice is YOURS. But, instead, go ahead an complain about THE PAST instead... see what THAT does for you.

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[SEV123]

What did I want, I didn't want management to have put us in this situation. You might be fine with the dilution and that's okay, but it's okay for those that don't like the dilution to be able to voice it. Yes Future there was a major screw up and of story. They should have known better and when Bonnie was there none of this happened so was that the problem.

So once again to make it clear, it's bloody FINE TO BITCH ABOUT THE DILUTION, regardless what you say.

[FutureGNR]

Dilution Shmilution! What Else Would You Have Them Do!? Close the Company!? My god! If this were a PRIVATE entity with the tech they have, and if they just completed a Final Round of Private funding, and are Just Now Going Public with 300 Million shares outstanding, people would jump at the chance to get in, but because they are Already public and Needed money (same difference) NOW ALL OF A SUDDEN IT'S A BAD DEAL!

Geesh! Get over it! Buy more if you want/can, and be thankful you still own a chunk of the AI future!

Otherwise you can Leave it alone! (I'm not directing this at You SEV123, just folks here in General)

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[SEV123]

Future, other than Jack A.. and YP. I think most are not being negativity but more frustrated the way this all went down. I've been buying as well including today, not buying all at once as this closes Weds and might be able to get some cheaper.

Remember the company first said a modest PP and it was anything but modest. I think it's perfectly fine and fair to question what happened and how it happened along with the dilution.

[yp_1]

SEV123, nobody in their right mind shorts when SP is hovering near all times lows. Simply there is not much room to go lower

[FutureGNR]

Yes, of course I came back when the news came out. And YES, I have been buying from 0.15 all the way down to here...mostly down here, and I will keep buying All I Can.

Now goodbye again for a while...I'm really tired of the negativity here.

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[Spectra777]

RS is likely. 100 to 1.

[SEV123]

SEV short interest went down.
PECTRA7 MICROSYSTEMS INC. 3,949 -1,004 30 Apr 2024

[prototype_101]

I'm thinking the same as SVE that looking back this will mark the exact bottom and if you want to participate like those who are buying this fire sale PP, the best you can get is today's pricing, full disclosure, I've been a buyer several times today already

BTW, where's waldo? (future?)

[GARYM1]

What are the chances we start seeing orders sooner rather then later now the management have solidified thier control thru latest raise.

[GARYM1]

Will be interesting to see if the same guys( management) that posted a 100000 4th quarter then a pitiful 1st quarter and said viability moving forward was uncertain ,how much of the 10 million came from them.
Curious to say the least

[jacksonjohn]

You have me on ignore? LOL.

[SEV123]

Jack A.. firstly you seeM to have some political issues that you like to spew. Firstly cancellation is a thing of the left not the right and I'm neither.
I put you on ignore and still are cause you had and have zero to offer, you just posted stupidity or political garbage that seems to have had some sort of an affect on.
Yes I'm still positive on the stock, but have never given a price target. Crap happens like this and not the first time with stocks I've owned but they worked out when they had a great product. So again, keep your insane politics off the board, no time for that stuff here no matter how much that guy in the Oval office gave you PTSD.

When I say things stick, it could be smelly for me but a bed of roses for others. Do you understand that?
Another reason I put you on ignore is you own zero shares. What does your day consist of, going on boards and seeing who will talk to you?

[yp_1]

"F$#ck" the investors --Steve Jobs

[CleverAces]

Not I. I was bullish on S7 up until the announcement. But this PP is definitely a slap in the face to the retail investor. Im not putting another dime into this thing.
I’ve bought enough shares over the past week to average my basis down to the point where its possible I could still make money on this in the foreseeable future. However, my biggest concern is management and the boards lack of consideration for the retail investor.

[prototype_101]

it is hard to believe that a "modest" PP could not have been done somewhere much closer to .60 where Steve was supporting the PP, the ,10 pricing is a slap in the face no doubt, but it could be worse, they could have eliminated the retail investor, it looks like they are giving investors a chance to participate here again at this fire sale price, do you believe in the tech still?

however Steve's order may actually have provided the needed smokescreen to not get the PP priced and filled, I kept saying it was taking 4x the time that LY's PP filled that was oversubscribed, and that this PP was either going to turn out really good or really bad

[jacksonjohn]

I believe YP has been right for sometime. This was a way to screw the retail before taking it private for pennies.

[prototype_101]

totally agree, makes one wonder if it was a somewhat preplanned way to takeover the bulk of ownership, I find it hard to believe that Steve having his order in to buy shares all week would have made that big a difference in the outcome, in any case this is the new reality and you either buy into it or patiently wait some length of time to get back to a breakeven I guess

[jacksonjohn]

next time, try to listen to other opinions instead of doing the MAGA thing and blocking anyone with a diffent view/thoughts.

[SEV123]

I hear you pro but how this happened....... really stinks!!!!

[jacksonjohn]

If you like it at .65 then why would you not love it at .10. Come on SEV, this is a gift.

[prototype_101]

yes, agreed, but if you believe in the technology, and I believe you do, then you might as well be a buyer at today's market and participate in the 800gbs ACC sweet spot, if you just sit back here and wait you likely will break even by 2026 but if you buy today you can book some gains as well, that is if you still believe in the 800gb being the "sweet spot" for ACC and S7 having the goods to deliver, I do believe the AI revolution will greatly accelerate 800gbs implementations

[jacksonjohn]

LOL. Today is not the day to buy. Have you seen post PP phases? Come on man.

[CleverAces]

Its a shame

[SEV123]

It was suppose to be modest. So we went from modest to insane as far as dilution goes. When they did last PP they could have done 10 or 15 million at .65 and we wouldn't be in this position. 100 million at 10 friggin cents.

I did say something stinks. Just who was this investor that pulled out? Was he a new investor? Did the company approach them? Did they approach the company?

As far as them being to small, that's not a problem. If they pass testing with big guys and they have what they want , big guys will make it happen. So this talk about who is going to put in an order with them? I'm not concerned. Dilution is what concerns me, crazy, insane dilution.

[CleverAces]

“Is a good buy here today”. Yes, if you are coming in as a brand new retail investor. For any existing retail investor, s7 is a train wreck.
Basically, the sharks have come in at this PP and will be the only ones who are set up to gain

[prototype_101]

I think everyone here believes there is a bright future for ACC at 800gbs, and S7 was the only one to demonstrate interoperability at Ethernet Alliance successfully, there has to be some value to be unlocked here, whether that is in a JV with MACOM etc, or whether an outright sale of the company, who knows, but the Patents are valuable, S7 I believe holds the bulk of ACC development Patents, and I am grateful that S7 did something that did NOT eliminate the investor shareholders here

I agree with SVE that buying at today's PPS knowing that S7 continues in business for the 800gbs market is a good buy here today

[yp_1]

As I said, we have been duped for years. No surprise with the last fiasco...