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Smitter. You dont understand the accounting ramifications of this deal. Equity could be severely affected as per gaap rules.
i am very well aware of listing requirements
I would say that you were correct except you have one crucial error
which is: they were eligible for amex listing before they did this deal- but under accounting rules for convert notes like these they will likely not have enough shareholder equity
I will not be posting past today on WDDD unless stock goes down, which I hope it does not
will not get in the way of the stock going up.
but some thoughts to smitter
1.) WDDD getting there ducks in a row for a
May-July uplist
Huh?
makes no sense - not eligible and wont be eligible
2.) WDDD getting ready for another Major Lawsuit
maybe - but law firm will likely be ready to take on contingency and most of the work is done already- so not much cash needed there
3.) You don't turn down this kind of money ever. The Exposure alone is worth it. HD IMO = Altucher
That is just plain silly- no exposure is worth the dilution
the exposure will come courtesy of the markman
You are a genius and the reason why this stock has moved. I am not patronizing you. Just saying the truth
Anyway lets enjoy the ridw
Why not. I am just following your logic. No need to answer. There is no answer
ok- agreed that a deadline is not needed
if in fact management has other patent portfolios in mind ( not my impression)
than you are 100% correct- they do need somewhat of a warchest
if they never buy any other patents - I assume you would agree with me >?
GA-
I am in complete agreement with you - that if they have plans to use the money to buy additional patents , this is a deal that is ok and I can handle the floating convert.
Lets do this- if they have not used the money by July would you not agree that they were not needed ?
Celtics-
we may disagree on some things but you are a great asset to this board.
you may be the one person who gets this stock moving higher
believe what you want- your choice
my first purchase was around .11 in July 2012
highest price paid was around .17 in october 2012
i want the stock to go up - as I have not sold one share
I hope it does go up.
but the info above doesnt change the fact that this deal did not need to be done
I would be happy if you are right and I hope you will be.
I have been in since .12 ( approx) and not sold one share and dont intend to until at least july-
I was just trying to have an intelligent discussion
VRNG is exactly the point - of course anyone is familiar with them
that was about funding patents portfolios
they needed hudson etc
WDDD did not need anyone- they owned the patents
they had a clean structure.
GA TECH-
usually a companies results are "responsible" for
the stock going up
results can mean earning but can also mean other success such as patent progress.
do you honestly believe that the "brand name" (according to you) investors were responsible for any past success of any company.
your comments show a lack of belief in the WDDD story-
you should not need anyone to come in and validate a story which is already validated. I was 100 percent happy until these convert guys showed up
they add nothing expect a convoluted cap structure
Bhonda. Sure. Good possibility stock is above 1
And they sell some or all. That would be great.
But lets say for whatever reason it is not. In that case the floating convert could be an issue.
And one more point: unlike others on thia board I truly beleive in wddd potential. I dont need some pipe convert investors to validate anything (the law firm on contingency did that for me and others) come in and take away some of my
upside
this is the one big issue I have with the deal ( see below)
all the other issues are questions but I can understand that we can have differences of opinion.
This one could come back to bite and I am trying to understand why no one feels this way
Commencing July 1, 2013, the conversion rate for all Notes becomes the lower of (x) the conversion rate described above or (y) 85% of the average of the daily VWAP of each trading day during the twenty (20) consecutive trading day period ending on the trading day immediately prior to the conversion date, subject to adjustments as provided in the Notes.
anyone can call any CEO - I am not "big time" ( just investing on the side) but thanks for the compliment-
who says I didnt call the CEO.
I am asking for the boards opinion here.
I read the docs, I read the filing.
and I am asking for an intelligent response from those people on the board who have done the same.
I guess in theory according to your logic we can shut down the boards and everyone can just call the CEO
the problem is we have no ideas how much the dilution will be -
we think we can guess and we can hope but as of now - no one knows
and that is the issue.
hey,
I have been investing in microcaps for over 20 years.
Both as a private investor and both sides of the PIPE side.
And WDDD was my top position and top "idea"
until this deal.
I like the company, and I am still long. But I am dissapointed.
A company with 1 mil shares trading daily and a .40 stock price can in fact get a normal deal and it is not too difficult.
Especially if they want to raise 400-500k.
I simply dont understand the rationale behind the deal and besides for saying that " big money coming in" or things like " these are the guys behind viringo" - I have heard nothing.
We did not need this investors, we did not need their "cahet"
and certainly did not need this deal.
As you all pointed out: it is very simple if WDDD patents show promise in June this will fly if not it will tank.
therefore: having some "brand name" investors who invested in a previous patent deal in here doesnt make the story any better. Nothing changes for the upside.
but it does make the cap structure alot worse
I will be happy to : once someone explains why there was a need to do this deal.
I hope that happens
you need to really read these agreements. The funds can not actually be used for anything yet.
The only benefit of this deal is to show strength to activision
but frankly, that was not neccassary once the law firm took the case on full contingency.
If the company needed some extra cash they could have raised 500k at a fixed price or even equity at a discount to the market ( ie at .30) - would have been far better than this - no comparison
I am long, I was happier about that yesterday
Hey u2 hope u r right
The big money (not really that big) came in before the cap structure changed. Lets see what happens now. Hope wont matter. I am not buying but for sure not selling.
True. But it could have been so much better. A company with a great potentiall and a clean cap structure and just really convuluted the structure
Very often
Correct.
While it is quite possible that the stock will be a dollar and no issue bottom line A new type of risk has been introduced and it upsets me that it has been
Here is a very specific reason. Conversion price is not fixed. Game changer. Btw I do think stock can still run but things have changed
I truly wish that were so. But it is not the case. There are other issues as well but the biggest is the change to the cap structure and potential issue short term
Do you understand the conversion price issue ?
Also just for full disclosure I am long wddd and remain long
But troubled about this deal
I can even handle the warrants and even the lower convert. The biggest issue is the introduction of a floating conversion price. That can hurt thw stock within the next six months. Imo the intro of the floating convert is a game changer to the downside. I am sure u understand why this is so.
I respectfully can tell you that a company with .40 stock price trading a million shares a day could have gotten far better terms IMO.
I can be ok with the fixed conversion price but I can not understand how you can be ok with the floating convert
they are not paying higher.
You must have read another 8k if you think they are paying higher.
Sure the convert on some of the notes are higher but a) some are lower b) they all can become lower ( that is the real big issue) if you look at the details of the deal: it is concerning
I am in this for the big return ( not just the 3-4x) I have already.
I am worried that the financing reduces the long term potential of the stock.
I hope it wont hurt short term as well
I read the 8k and and read the financing documents in detail.
If I have time I will reread-
I am very familiar with this company and have spent much time evaluating the company and I have a decent size position almost all at around .12
I am very bullish on the prospects of the patent portfolio.
However, for the first time today I am a bit concerned about the upside on the stock- there are many issues with the financing from a structure prospective
but the biggest one if the conversion price.
I dont understand how that helps the company
why would you be excited. I dont see what is good about this deal.
Maybe I am missing something here- I would appreciate if you could explain your excitment
How is this financing good ?
Been in WDDDD for about 6 months -
I am an active microcap investor and WDDD is my biggest position.
I dont see how this financing is good.
Can anyone explain how this is good for the company
Would be great to understand the thought process here.
This is a very interesting Hurricane Sandy Play IMO. EOM