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This is an intriguing situation for sure. There is definitely risk, but of all the sketchy OTC deals I've seen like this, this one at least has some chance of yielding cash to Common Stockholders.
Currently, there are no Preferred shares outstanding, meaning Common Stockholders are first in line once all liabilities and other potential claims are accounted for. I'm assuming the Notes get paid off with the $30mm in proceeds, so take this with a grain of salt, as any sort of dilution attributable to note conversions would change probability of a positive return.
Currently there is about $13mm in liabilities on the books. That leaves, $17mm of cash leftover that the common owners technically have stake to. Lets assume there's 80mm shares outstanding, that warrants $.21 a share. Taking into account the speculative nature of the transaction actually closing, I think $.08 is more than fair here. I wouldn't be surprised to see low teens.
Even more, what this tells us, is that these assets are worth SOMETHING. Even if the transaction fails, so long as the company can continue meeting its obligations in the short term, its fair to assume that the assets are worth somewhere between $5mm and $30mm. Finally, 10-k states that at $35 per barrel of oil, the company feels it can generate a min of $10mm per year in rev. Oil has been above $35 for most of the year.
This company is getting zero recognition right now .... it's actually crazy. Nobody talking on twitter or yahoo. Only 16 followers here. The first bit of news this Co. drops its going to send this way back up IMO.
That isn't even all of the cool info out there. There is another panel discussion or two I would like to post and then Facebook and LinkedIn material as well. The Company is legit. It really just fell through the cracks, as many of the best pennies do.
My plan is to continue updating the board over the next few days and make it look much more professional. I figured it was better to get the information up ASAP and format it all later.
I have a nice-sized position but am being patient on the side with a substantial amount of cash. Going to increase my position slowly but surely until news hits and then I'll load more.
Also, been just over a week since the share structure was last updated. Throughout January and the beginning of February they were updating it everyday or two to reflect the small amount of dilution. Like I noted in a previous post, I take that as a positive sign that dilution has ended or is coming to an end.
Dyos' LinkedIn lists him as the President of WaterNow Inc. still. Where did you see he got fired? I confess, it could be in filings somewhere, I just don't recall seeing that off the top of my head and don't have the time right now to go back and look at that. Would love some further insight.
Haven't seen or heard anything about fraud either. I would imagine that if that was the case, the SEC would come and halt trading pretty quickly. Although its penny land, if we are talking fraud of that nature, that seems like something they would step in on pretty quickly, especially for such an illiquid stock.
It changed some, but it was minimal compared to the last few updates. They were updating it daily there for a few weeks, so I will take the lack of updates as a good sign.
Also, not sure if you saw their facebook today, but they shipped two more systems. Since mid/late November they have placed 6-8 systems. While that may not impress some, any penny that is able to stay in business for 3 months without substantial dilution or funding amazes me these days.
Excited to see what their financials looks like when they drop in a month or two.
I'm going to try to update the board over the weekend with news etc. Saw they posted on facebook the other day that they delivered two additional systems. This is one of the best set ups for a penny I have seen in a while in terms of industry/upcoming catalysts/share structure/debt etc.
Glad to be on board with the few of you who are here waiting.
Who is the moderator on this board? If possible, I would love to be added so that I can add some of the press that this company has generated over the last 6-12 months. Would love to have an updated board for the next time WTNW drops news.
same here. If it has a low share structure and has been getting slow traction in terms of contracts, I'll check it out. Used a similar thesis with PCTL back in July and got in at .0027 before it took off to .04. This is equally under the radar and has a much better debt/cash situation.
Will continue to ride this despite the dilution (I'm riding profited shares for the most part). Once the dilution trails, I think we will see a nice spike. Looking for the right entry to scoop up another big block.
Have a group of pretty successful penny traders that I talk with on a regular basis. Haven't been super engaged with the penny space lately, but going to see what their thoughts/appetite is on this.
Not sure if you saw the update yesterday on their facebook. Another system installed successfully. Waiting here with you. Not at 500k, but working my way towards that.
I'm really surprised this one does not have more attention. It has all the makings of something big. 1) An intriguing tech with several applications; 2) small share structure; 3) numerous deals. It's a competitive space right now, but seems like this should gain traction from these levels. Been in and out here building a position.
With any sort of news this thing will pop, i think. Catalysts for this company include: 1) Low float; 2) Profitable (unheard of for a penny); 3) Patents; 4) they aren't directly competing with the Good Year's of the world currently since their target market is more equipment based.
Some of the metrics here remind me of $ALPP. Would love to hear more from mgmt. about their strategy etc.
Bought a starter here.
For the record, I see the 8K as phenomenal news and was buying more as people sold. I am reloading the boat at these levels....
NY Pres. is associated with Morgan Stanley hospital. This illustrates several things: 1) Management wasn't just bullshitting us when they said they were likely going to expand to MS' affiliate hospitals. 2) It re-solidifies the fact that this is a solid product. Not only did MS sign a long-term contract, now its affiliates are too. 3) NY Pres. is the #1 ranked hospital in NYC... take a look at their wiki page and US News
https://health.usnews.com/best-hospitals/area/new-york-ny
https://en.wikipedia.org/wiki/Columbia_University_Medical_Center
"Columbia University Herbert and Florence Irving Medical Center (CUMC) is an academic medical center and the largest campus of NewYork-Presbyterian Hospital. It includes Columbia University's College of Physicians and Surgeons, College of Dental Medicine, School of Nursing and Mailman School of Public Health, as well as the Morgan Stanley Children's Hospital, the New York State Psychiatric Institute, the Audubon Biomedical Research Park, and numerous other institutions."
I agree the debt situation is stressful, but they'll get it figured out. Management has some semi-deep pockets behind them. No use in letting the progress of this company go to waste when you are on the verge of success....
ETRF is killing us today. Short maybe?
PCT is a train.
CSA LLC is Jody's previous company. He built it up to $40mm a year in revenue. Looks like its up at $45mm now. Stars are aligning.
That is an understatement. Literally, $500 right now gets like 20k shares. Seeing as how the company has a tight share structure and has the potential to be worth billions at some point, the upside potential here is real.
I actually don't mind the delay. Personally I did not like the way the deal was structured. I'm sure some might disagree and thats fine with me. I'd rather have a solid deal than a poor one just to please short-term sentiment. Sure the short-term deal might push price now, but this is about the bigger picture for them. Spreads our timeline some, but so be it. In fact, take a year for this deal.... I would like to pay LT Cap Gains when I liquidate, not ST.
I knew this would get restructured. The deal as initially proposed made no sense once the market caught on to the true value here. When initially structured, Ontario was getting 51% of something that was valued by the market at like $1mm before the deal and capital injection were announced.
The market cap is now $6mm and that is without the deal closed and people at peak skepticism.... That would have been a hell of a winfall to Ron. I would not be surprised to see the equity portion of the deal reduced to reflect a more fair valuation. In simple terms, that means the company will have to issue less shares meaning less dilution for us shareholders. It won't change the amount of money Ron contributes to the company.
Just had to go back through previous Q's and filings to remind myself why I invested here in the first place.
This company can become profitable so fast its scary.... When taking revenue - costs of licensing and products and dividing that number by revenue again (gross margin), the company shows like a 63% margin.... If they can shed the debt, which would reduce costs by $200-300k each quarter, they would be profitable in no time.
Also, even though they are old, I found some interesting stuff in the NY Pres. Hospital financial statements. If you're bored and need to walk yourself off the selling ledge like I did, maybe take a look through this.
The system does billions in revenue a year. There is also a portion that talks about the hospitals massive insurance premiums. PCTL would help reduce claims to some extent, helping to reduce premiums in the process. Also, PCTL helps stabilize operating costs via recurring payments.
https://emma.msrb.org/ES1194379-ES933433-.pdf
If no news or bad news this thing is going to drop hard. There's many playing this short term for the momentum. Honestly, even if no news or bad news comes out, I'm not selling. It is only going to take 1 solid deal or press release to push this back in the other direction. And... If Jody's statements hold true, the 10k is going to look real nice. IF there have been deals since they last announced in May, revenue is going to be up substantially.
They are in 4 hospitals that have been publicly stated. Assuming worst case they only have 1 system in each hospital that is $8500 per month x 4 x 3 months. That is $100k in equipment leases alone not including any other licensing or product revenue, which I'm assuming will come in as well. Not to mention, it doesnt include any of their gas/food processing/agriculture revenues either. And that also assumes that the company has not sold or installed any additional systems since they last publicly disclosed, and I have a feeling that they have sold additional systems that we dont know about.
I'm just as impatient as the next person, but this is an investment for me. The upside long-term is huge. Yes having pps fluctuations of +/- 40% are tough to stomach, but I'm holding free shares at this point, so why not. Hope we can get some strong LT focused hands in here.
This is a great sign honestly. My day job is as a corporate/M&A legal associate. I've worked on over $800mm of M&A deals and several real estate deals. For the deals I have worked on, one of the last things we finalize are things such as employment terminations and terminations to inconsequential agreements.
I have been semi-skeptical of this deal based on all the chatter and the delays. The fact that shares were issued and now this PR is very precarious. I wouldn't be surprised if we don't see an 8k this week, but at the same time I really do believe that they are working to move this deal forward now.
Very very very good news, in my opinion.
Yo, that is crazy similar.
Yes.
Even if the deal is off, it doesn't change much about the value here, IMO. Yes, having the capital to pay of toxic debt is great - I can't argue that. Having the capital to fund expansion is also great - I can't argue that either. However, there are MANY other places that capital can be obtained other than from Ontario. Money is a commodity. Sure, Ron has great credentials but so do many other people. Ron isn't some forefront Dr. who is here to improve the tech, nor has it been established that he is going to act as some guru salesman. In fact, Ron wasn't even taking over any sort of management role, per the LOI; he left CEO duties for Canadian operations to Jody if I remember correctly.
So yeah, I get the frustration of delayed filings or a botched deal... but take a look at some of the people who invested here. Rory rode this thing down the first time from .01 down to .00s. and then he rode it back up and is still with us. CJ was here in early/mid July. I was simply lucky to stumble across this the day before the merger and took a pretty big position thinking that sales growth seemed highly possible. The 10Qs, mergers, none of that was on our mind. The fundamental reason was and continues to be PCT's tech.
I have made well over 6x my money here, yet I continue to hold. I hold because at this point, there is NOTHING I see on the OTC right now that offers what PCT does.
Love your post. I was one who bought more shares from those panic sellers today. They can have them back in the .05s+. Still up substantially here.... Holding with the rest of the longs here.
Ready to see another red day here but I have confidence that most people have the same mentality I do, which is hold strong with the free shares and buy more on these dips.
Feel like we could see red again tomorrow, but I doubt this trend lasts too long. Let's not forget something here... as it stands right now, there is no dilution, we actually have revenue, and we have an award winning, revolutionary product... Other than $NGTF (which mind you trades way higher than this and is in a much less revolutionary space IMO) find me an OTC play that exhibits all of these characteristics.
While you try to find one, I'm going to continue add.
Honestly, somebody decided to shake out all the idiot buyers who bought the promotion this morning. Volume not huge on the sells but for somebody who doesn't know a thing about this company would likely panic after that. We've already seen days like this and bounced back way harder. Great buy currently, IMO.
Man. Reloaded hard here. Back up over 1mm shares again.
Like most I hate those dumb promotions, however here I think it takes us to the next level simply by adding the extra $ volume.
Can you share a photo? The Twitter is private.
PCTL is a life changer in two ways:
1) By eliminating antibiotic resistant diseases, we as humanity are safer.
2) Those of us in under $1, are going to see a nice ROI.
IMO
Yo, if all they did was issue 5mm restricted shares instead of doing the 51% ownership situation as originally contemplated, this thing is going to absolutely soar. Sure the shares that were going to be issued to Ron would have likely been restricted, but at the same time, at some point those shares could still hit the market. If all they did was give him 5mm shares and still got the money to wipe the debt, then the deal got 50x better than originally structured and it was already fine as done before.
If that comes out .30 is easily achievable. PLUS, we have 10Q and PRs..... this thing will soar......
Alright, I sold 100k shares today just to recoup my initial investment. Still holding 900k and at this point, I'm holding for the long hall, not selling another share for a while.
Naturally if there is a massive dip I will be acting as support with my initial investment money. Time to watch this thing cruise north.
This thing is going to be so thing after this. I can only imagine strong hands picking up these shares.... Didn't wire money to my account to buy more last night and kind of regretting it now. Wiring now and if there's another dip ill put my bear claws on another 200k or so.
Per the last 10Q, the company had about $100k in equipment leasing and licensing revenue. If you divide that by $7500 you get around 13. Then you have to divide that again by 3 since the company gets $7500 per month per machine and that gives you around 4/4.5 installed machines which is right in line with what Jody stated with regards to how many installed machines they have had. Now I doubt that Jody can disclose any additional installed machines to a single shareholder so even if they have installed additional machines beyond the 6 that were stated, I'm not sure if that could be disclosed.
Regardless, $7500-$8500 a month begins to add up quick. If the company installed 100 systems they would generate about $10mm a year in recurring revenue. Since they tend to do 3-year deals, 100 systems is nothing..... and profitability will be insane....
I'm sure there are people out there who are going to sell today due to the delays. That is warranted in your opinion. With that being said, there are going to be a lot of people soaking up those shares today. If all of us hold and weather the storm, it might be tough for a day or two, but long term I see significant upside. Staying in this together is what will push this up.
Rory, I would love to hear your take on the delays and everything else that's going on. You've been here the longest and have had a lot of good things to say about this opportunity.
I saw the delay coming and take it mostly as a positive. I did see one thing that was said however that kind of struck me as odd.
This is correct.