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They get alot of new customers from the upcoming Asia merger
Fair statement.. On the other side.. Just who is offering to buy UNQL..the company.. Not the stock.... Asking for a friend...???
Asked a friend of mine who has a medium sized flooring business, 250 million in annual sales and has 99 employees. Like UNQL, flooring is a very small margin business. He has been relentlessly offered buyouts by larger flooring networks and the going rate is 3x EBITDA. He won’t be selling any time soon as well as Ray wouldn’t even consider selling for its current market cap of 12 million, wouldn’t sell for 50million. I’ll continue to hold.
Sunandan Ray is disingenuous. He said, "We remain confident in our sales efforts as our customer count has grown."
Confident in their sales efforts???
Here is what nearly 3 years of "sales efforts" has produced since the 3 US offices consolidated in May 2020: "The Company’s 25 largest customers based on revenue during the period ended November 30, 2022, include 12 customers that were added after the acquisition in May 2020."
Let that sink in 12 customers. 12 new customers in 31 months. 12...that's only 4 per year. And how much did Ray and his crack sales team spend on selling and promotion to hook those 12 customers? Let's review the filings.
FY 2021 $4,535,373
FY 2022 $6,653,335
FY 2023 (1st 6 months) $562,432 (Projected annual $1,124,864.) That is a MAJOR drop in selling and promotion spend so far this fiscal year. How is that possible when Ray states publicly he is "confident" in his sales efforts? Is he lying? Did the company just give up on selling and promoting for 6 months? Nevertheless, the company spent an astonishing $11.5m total on selling and promotion to secure 12 new customers in 3 years. That is terrible management and leadership.
Historically, they spent $3,692,618 the 1st 6 months last year. The year before that, they spent $1,898,311 the 1st 6 months. Now, as the company is saying they are expanding and implementing their strategic plan, they only spend $562,432? That is $3.1m less than what they spent in 6 months last year. That 6-month profit of $6.6m they just reported would have only been $3.5m if they kept selling and promoting as usual. That sharp decline must be why zero new customers have been reported since Kroger last April 2022. That's not growth, as reflected accurately by those declining revenues. If anyone still doesn't understand a $12m market cap with only 12 new customers in 3 years....well....
But Sunandan Ray has a plan! Taking out a $25m loan to allow more profits to be eaten away by lender interest and principal repayment. Acquiring global offices with a tiny $5m target EBITDA (that target is in their own merger agreement that they prepared with Hong Kong.) Agreeing to a reverse merger to allow all 9 billion preferred shares to convert and completely wipe out retail shareholders. What a plan! What a leader! What a guy!
The current market value of $UNQL is 12million is laughable. Saying otherwise is disingenuous!
Manip short ! Where is the SEC!!!!!!!!!!
Twitterverse trying so hard to put lipstick on the UNQL pig. A $6m semi-annual profit they have failed to hold onto for 3 straight years of reported financials. But this time will be different Lucy says to Charlie Brown. LOL
And the same folks say undervalued??? Seems the market disagrees. Only way to make money on UNQL is to flip. Watch how many claim buying millions of shares at 0.026 today....only about 100k actually traded. Ahhhh, the spin.....
Revenues don't matter for valuing UNQL as I've said a million times. It's profitability, just like every other publicly traded company.
1. Keep it real. The 6-month profit is the same as last year. That's why the MC is staying in the same channel today. I've explained this basic concept repeatedly. (Don't ignore the 30% decline in profits this Q compared to Q2 last year.) For 3 straight years of reported financials, they lost money 2 of those years and only made a million the other. IMO, the current $6m profit is subject to the same decline as last year, considering the even slower Q3 and Q4, and that HUGE $25m loan about to hit the books. What do you think the Colbeck interest rate will be? I will predict at least a $4m annual payment to eat away profits. No one would pay anything for this company. Zero! It's a fine business to pay employees and enrich insiders with 95% of the shares. No thanks!
2. The margins are better and that's good. They paint the exact picture I've consistently said about UNQL. They eke out a small profit as a middleman. It's all accurately baked into the market cap and share price. Very accurately.
3. That working capital is directly tied to the TBK loan facility. They have not drawn on it as much, as clearly stated in the 10Q, and that's exactly why there is more "working capital." Money in the bank is still only a million.
4. 23 of 25 customers since 2019? First we've heard that. Sounds like spin. They PRd Car Parts, Autozone, HP and Kroger. Seems like 2 of those are now gone, but hey, they provide the weird news, spin, and no news. Make what you want of it. The 10Q states the top customers are way less of total business than previously. Seems Kroger isn't adding much at all in revenues. Agree?
Trading just like usual. Up and down. Huge bid/ask spreads. MMs scalping and laughing. No real stock has bids for $12 and asks for $14.50. That's a scalper's paradise for MMs to profit off suckers.
Folks can rearrange the deck chairs on the UNQL Titanic all they want, but the inevitable sinking of the share price/value is still going to happen when the EAC deal closes. See page F-12 of the 10Q:
Common Shares Outstanding
771,683,232 (multiply by 0.0029 upon merger to get 2,237,881 EAC shares)
Series A Preferred 1,168,177,320 (times 0.0029 equals 3,387,714 EAC shares)
Series B Preferred 5,373,342,576 (times 0.0029 equals 15,582,693 EAC shares)
Series C Preferred 1,206,351,359 (times 0.0029 equals 3,498,419 EAC shares)
Series D Preferred 1,130,954,399 (times 0.0029 equals 3,279,768 EAC shares)
That will be 27,986,475 EAC common shares. Add those to the 7m common shares owned by Colbeck and there will be almost 35m Shares Outstanding of EAC post-merger. Oh, and they won't be worth $10/share with $280m in the trust account. There will be a new $25m loan on the books, all of that money gone from the trust account, and the market will value EAC/UNQL accordingly, new offices and all with their target $5m EBITDA.
At today's $14m Market Cap, that's $0.40/share. At a $25m MC, that's $0.71. Will the market go to $50m MC? That's only $1.43/share. Wait, some say $100m MC "easy" but that's still only $2.86/share.
Don't forget to multiply one's current UNQL holdings by 0.0029 to calculate how many EAC shares one will have upon merger. Then, pick one's predicted new Market Cap and see the new share price and what it does to the account value. That's called massive dilution and a huge loss. One can just wait and see if this seems like some crazy voodoo.
Dinner will be served at 7 in the Grand Hall. Don't mind that ice on the decks. Cue violins....
UNQL down 15% already and sinking like the Titanic after the 10Q. Hey, the good news is that ship bobbed up and down quite a bit before it ultimately sank to the abyss. Up and Down. Perfect metaphor. Happy Trading!
Unique Logistics International press release (OTCPK:UNQL): Q2 net income margin increased from 1% to 4% in the current quarter compared to the corresponding quarter in the prior year and our adjusted EBITDA margin from 2% to 6% in the same period.
Let them talk about revs you just hit the nail in the cuffin lol
I thought revenues didn’t matter?
1. They made 3.4 million and 6.5 mill in the past 6 months, have a market Capet of 12million, haha. That’s ridiculous. Go offer Ray 12 million to buy the company, go offer him 50million, You’ll get the same answer of NO!
2. I agree people pumping on the revenue simply don’t understand UNQLs business. Their income is generated by the margins they put on each shipping contract. Just because they item value shipped goes down that doesn’t mean their profitability does. With your logic, we should be screaming about their improved margins!
3. As of November 30, 2022, the Company reported working capital of approximately $8.5 million compared with $4.2 million working capital as of May 31, 2022. They started by having to borrow money from 3a and Trillium and now their working capital has grown substantially.
4. They have a extremely strong customer base.
In addition, the Company still retains 23 of the customers that were in the top 25 in 2019. Thus, the Company, today, has a significantly expanded customer base besides substantially retaining virtually all its legacy customers.
In terms of volume, the Company’s top 25 customers, today, ship more containers (94%) and more air freight weight (15%) compared with the top 25 customers in 2019.
I love the fact that you know so much about UNQL keep up the good work LOL
Let's see what bulletin board material comes..???
Oh, they read them. And tucked tail to scurry into their holes. All talk and then reality bites!
It's sad how UNQL led to such HUGE losses. That was a terrible quarterly report, yes? Down 78%. Sounds very familiar I'd imagine.
Looks like the etiquette police are out..lol..
Wonder if old 55 will peruse the filings on the way back from over the pond and share ones "Expert" opinions with the group..????
Ummmm.... only $88m last Q.
A 78% drop Q over Q.
Maybe listen instead of spamming the same nonsense all over social media???
What's "a billion dollar company" with a "billion" in costs?
The same as an $80m company with $80m in costs. Market Cap is about $12m. I guess we shall see if the market takes her lower tomorrow. Low net income is low net income. Facts are Facts.
Do you still insist it's over $1.27/share fair value.....or will you graciously concede learning a lesson?
Well done and excellent insights using actual real-world analysis! You weren't fooled at all by a "billion dollar company."
And some of the same old cans keep getting kicked down the road:
"Changes in Internal Control Over Financial Reporting
During the three months ended November, 30, 2022, we actively addressed and remediated a number of previously identified material weaknesses in internal controls over financial reporting, we significantly improved our accounting processes, documentation, introduced accounting policies and procedures, upgraded our accounting personnel and provided our employees with necessary tools and resources, but because we have not completed a full risk assessment of the internal controls over financial reporting at the activity level, including extensive process documentation and testing, we are not able to conclude that our internal controls over financial reporting are operating effectively and efficiently at this time. The Company anticipates fully remediating its material weaknesses by the end of its May 31, 2024 fiscal year end."
UNQL "promises" to get its accounting controls in order by 2024! Promises with double pinky swear this time!
I called it, I Said look out below 75% drop, ( Mic Drop )
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=170525233
This is plain English from the company for anyone who wants to digest"
"Total revenue declined by 78% driven by a slowdown in shipping and pricing decline in both air and sea. Air freight revenue declined 92% compared with the same period last year due to 85% lower shipped volume and 40% lower sell rates. Ocean freight revenue declined 58% compared with the same period last year due to 46% lower shipped volume and 23% lower sell rates."
The UNQL Covid-19 window is now closed.
"Net income was approximately $3.3 million for the three months ended November 30, 2022, compared to a net income of approximately $4.5 million for the three months ended November 30, 2021."
That's 30% less for the math folks.
Ouch!!! Let the spin games begin....
Q2 revenues dropped 78% from the same quarter last year. From $405m in revenues down to just $88m in revenues. And that was their big holiday shipping season. Game Over!
Spin Away! Can't use "billion dollar company" anymore. And the net profit is the same as last year. Big deal. It will go down the next 2 quarters. Also notice how selling and promotion expense dropped off a cliff. Have they actually stopped selling, or will that expense magically appear on Q3 or Q4?
But hey, UNQL still has a profit! $6.5m over 6 months...just like last year...until it evaporated. How much money will the merger with EAC cost? Hmmmmmm
What will the "pop" be tomorrow?
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001281845/000149315223001635/form10-q.htm
My clever response is..Don't know..don't care...
Not sure if this is a clever enough answer, but UNQL has a consistent history of missing regulatory deadlines and breaching contractual agreements. This is directly from the pending merger agreement with EAC:
"Section 7.06. Registration Statement and Proxy Statement.
(a) No later than January 16, 2023, the Company shall provide or make available to Buyer the Acquired Companies’ unaudited financial statements for the six-month period ended November 30, 2022, including condensed consolidated balance sheets, and condensed consolidated statements of operations, statement of stockholders’ equity, and statements of cash flows of the Company required under the applicable rules and regulations of the SEC to be included in the Registration Statement, the Proxy Statement or the Closing Form 8-Ks, in each case, prepared in accordance with GAAP and Regulation S-X. Subsequent thereto, the Company’s consolidated interim financial information for each quarterly period thereafter shall be delivered or made available to Buyer no later than 45 calendar days following the end of each quarterly period. The Company shall promptly provide additional Company financial information reasonably requested by Buyer for inclusion in the Merger Materials and any other filings to be made by Buyer with the SEC, including any financial statements of any business acquired by or to be acquired by the Company required by Article 3.05 or Article 11 of Regulation S-X under the Securities Act (as interpreted by the staff of the SEC). Without limiting the generality of the foregoing, the Company shall fully cooperate with Buyer in connection with the preparation for inclusion in the Registration Statement or the Proxy Statement/Consent Solicitation Statement of pro forma financial statements that comply with the requirements of Regulation S-X."
Just like their investors, UNQL believes words in contracts and SEC regulations have alternative meanings. Or maybe they're just incredibly incompetent. Who knows?
BTW, absolutely nothing to stop anyone from buying up as many "cheap" shares as they want. Apparently there was only $100 found in some parking lot this weekend available to invest this morning to make some sick gains. Oh well.
Where is the 10-Q? Is there something about the merger that would allow them to be late filing without an extension? They are obviously not in a rush to tell everyone they million of dollars and are extremely undervalued. That might explain the manipulation.
Could someone please respond to me with something very clever. I’ll bet I can guess who those 2 next responses come from.
Massive rush volume to buy in I see... Better set my buy at market...!! Don't want to miss the run to dollars...???
Does this surprise anyone at all? SMH:
https://www.sec.gov/ix?doc=/Archives/edgar/data/0001832765/000121390023002855/ea171659-8k_edifyacq.htm
Leave it to the braintrust at UNQL to merge into a delisted Nasdaq ticker! I know, EAC intends to fix the basic error and hold a general meeting. The optics are just poor, as usual.
Where's the 10Q UNQL? That was your big quarter that closed November 30. Still can't get your reports in order?
My Guess is the Facts , bring silence...???
Pack of lies??? How about this message posted 19 times yesterday to 76 other tickers:
"Jaguar
@randy_rennon
$CAT $SYK $AVGO $ENPH Need to look at UNQL , This company is way under valued and is uplifting to Nasdaq with 8 acquisitions in the same industry, the CEO stated he wants to do more & this is the purpose to Uplift into Nasdaq. UNQL is the Real Deal and IMO it's a 20X++"
8 acquisitions in the same industry? Tell the truth that it's all the exact same company that started in 1983 in China. Click here to see exactly when every single office started:
https://unique-logistics.com/about/history/
All CEO Ray has done is diluted the company out of 322m shares, allowed other insiders to dilute nearly 300m additional shares, and just agreed to a SPAC deal to allow for the full dilution of over 9 billion shares. Every common and preferred share of UNQL will ALL convert to 28.2m EAC shares at a conversion rate of 345 for 1. Massive Dilution!
EAC shareholders pulled $260m out of $277m from the deal, so after expenses there will be zero money leftover for UNQL after the reverse merger. Claiming 20x price increase is ridiculous and based on absolutely nothing fundamental whatsoever. Watch what happens to the price of EAC when 26m shares are retired and $260m is returned to the original EAC investors.
Those are the facts and they are undisputed. I agree, most everyone has moved on from the UNQL dumpster fire.
No Kidding ! Pack of lies, I only come here to get a laugh now and then
ya'll do realize that you're just talking to yourselves... nobody is on this stock anymore... you're just a gong pounding into open space.
Respectfully.. One Has earned all the credit... This one is just along for the "ride"...Do miss those colorful " nicknames " though...and the "Judge "...
There's still magic man on twitterverse. Reminds me of Rain Man....your account was created 1.537 years ago and you only have 28 followers with a re-tweet rate of 7.94267. Fake Account and you go on my VIP ignore list. Banished!
MA, WHERE'S THE MEATLOAF?!?!?
But hey, fair value of UNQL is $1 billion in revenues divided by the 800m market cap. Easy Peasy! Costs? We don't need no stinking costs?
This UNQL saga is the gift that keeps on giving....time for Wapner.....
Wonder what happened to our stocktwits fan club??? Maybe they figured out we've been right all along?
LOL..let's make.. that "56" ..but who's counting..??? Respectively..One sees what you did there...touche..ll
Oh, one Might Find Humor and laugh 55 times with such speculation, but let's Please Be respectful to those who may have gone All For Broke and find themselves Really Ticked about this dire UNQL situation. This stock scam has taken out quite a few. Even one Jaga$$!
Q2 should drop Friday, so a chance for traders to do their thing. Good Luck!
Hhmmm..??? Does one know this "hypothetical " investor...??? Inquiring minds want to know...
Let's review the epic trading saga of UNQL. If one invested $20k into UNQL when it was trading at 20 cents "and headed to dollas" they would have 100k shares. At $0.015, those same 100k are only worth $1,500. Ouch!
Let's say this person tried to average down and threw another $20k into UNQL when it traded at 5 cents. That's another 400k shares, bringing the total holdings to 500k shares. So, $40k invested now, and only worth $7,500 today. Still Ouch!
Our hypothetical investor is not a quitter! Bought another 500k shares at 2 cents recently for another $10k. That's $50k total invested for a cool 1 million shares of UNQL.....that are worth only $15k today. Dammit!
Here's the big question. Does our investor who believes so much in UNQL hold those million shares through the merger to have 2,900 shares? Hmmmmmm....at $10/share they would be worth $29k....a $21k loss. But......if the price drops to a dollar to match the $35m market cap......those million shares will be worth $2,900....a $47,100 loss.
It's understandable how such a hypothetical investor would be so angry, hostile and bitter to the point of ignoring reality and worse. Oh Dear!
All quite on the UNQL front..must be the Facts are overwhelming... Or denial...perhaps denial of the facts is overwhelming...???
I can't make up my mind whether it's funny or sad that some folks don't realize the value of their shares according to the EAC deal is stated very clearly in the merger agreement. $0.0029/share (and that's assuming a very generous $35m market cap.) That, my dear friends, is called sub-penny.
But, it will trade at a dolla on Nasdaq so the response will be Nuh-Uh. This Board is priceless!
1 million shares on the OTC are worth $15k today at $0.015. After the merger, those 1 million shares will convert to 2,900 shares. When it plummets to trade at around a dollar, those shares will be worth $2,900. That's the same as saying pre-merger, the shares were worth $0.0029. Go ahead, do the math. Multiply 1 million x 0.0029 to get the same money value in the ol' trading account....$2,900.
I know, I know....Nuh-uh.....
This has a better chance going sub penny ,than going to a nickel..
going to sub pennies ?
Folks, this is bigger than The Catalina Wine Mixer! This is the biggie of the year! Q2 results coming! Why no massive buying? Is it because of shenanigans like this blasted every single day on 50 other tickers:
"Need to look at UNQL , This company is way under valued and is uplifting to Nasdaq with 8 acquisitions in the same industry, the CEO stated he wants to do more & this is the purpose to Uplift into Nasdaq. UNQL is the Real Deal and IMO it's a 20X++"
"Investors do your DD on this stock UNQL , Uplifting to Nasdaq with 8 acquisitions at the same time. UNQL did over a Billion last yr. and has Auto Zone and Kroger as a customer. IMO this will be a 20X within 2-4 months. $$$"
"Investors needed !
This is being manipulated for cheap shares and will end when the word get out Uplift to Nasdaq. UNQL made a billion year yr. and is acquiring 8 companies with the Uplift. Read the SPAC deal, do your "own" DD and not what is posted"
"UNQL" is uplifting to Nasdaq, makes a billion, 8 acquisitions coming , 14 m. MC, This stock IMO is a 20X +++ in 3-6 months
Do your DD , buy and hold if you like $$$"
I’m
expecting atleast 6 million net profit for the quarter.
First, they will report millions in net profit. 4-5mil I’m guessing. Pretty amazing for a company with a 14 market cap.
Second, their profit margins will continue to improve.
Third, shipping rates have little to no effect to their bottom line. They are a third party shipping broker. Their margins are built in regardless of the cost to ship and as shipping congestion decreases so will unexpected costs or delays that effect their margins. Demand for their service is what matters and they continue to grow that service.
Interesting timeline :
In addition to these standard termination provisions, the Merger Agreement also provides that the Company can terminate the Merger Agreement if the Debt Facility, or alternative debt financing, has not been provided to the Company by February 5, 2023, or has not been provided to the Company on terms and conditions as are the same as or are more favorable to the Company than the commercial terms and conditions contained in the Term Sheet.
Here is an honest news report from a reputable news source (Reuters) about the price decreases for ocean cargo:
Reuters.com: Analysis: Some ocean shipping rates collapsing, but real price relief is months away.
https://www.reuters.com/business/retail-consumer/some-ocean-shipping-rates-collapsing-real-price-relief-is-months-away-2023-01-09/
To conceptualize what this means, let's try an easy example. If UNQL booked 100 containers and charged Kroger $10k/container, the corresponding revenues are $1 million. Cool, yes?
This article suggests the price for those same containers is going to be halved this year. Half of 10 is 5, yes?
If UNQL sells the same 100 containers to Kroger this year, the revenues will drop to $500,000. That's a 50% loss in revenues, yes?
How many shipping containers does UNQL need to sell to Kroger to just break even at $1 million in revenues? That's easy....it's 200 containers.
So......UNQL needs to double sales this year (a 100% increase in containers) just to break even with the revenues last year. A 50% drop in rates translates into a needed 100% increase in sales just to stay even. Good Luck this year UNQL. To be fair, at least the costs will go down too.....
Just rent, salaries, marketing, debt payments remain the same....oh wait.....they are adding $25m in debt to the books. Add more debt payments.
Why again would Colbeck be getting in on this now? Could it be a shareholder takeover followed by a death spiral of convertible notes, dilution and reverse splits? Only time will tell.
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