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Oh, and they've diluted it another few million more shares after that too, right?
Keep a close eye on the Nevada EOS website for a rise in the authorized shares.
But they can still dilute another 25M shares first, then raise the AS.
I doubt they'd do it gradually either. They'll probably sell 20M shares to someone for 0.002 for a $40,000 check and they will unload them for an average price of half a cent and make a profit of $60,000.
Then they can raise the authorized and get back to selling billions of shares like usual.
Dear Steven,
The only thing that prevented INXR from popping to over a penny from a hundredth of a cent last year as the share structure was previously structured was the wild and excessive dilution of the company from 1.3B right on up to 11B shares last year.
I did sell out when I was convinced the selling pressure was on and it was coming from the creeps who run iFinix. What you've got entirely wrong is they were the first big sellers, not me. I came in later and when I sold I stepped back and let the dust settle for a half year just in case the company did deliver a miracle. At that point, I no longer believed it was going to happen, but to give remaining shareholders the benefit of the doubt and a chance for it to rise again, I zipped my lips.
But when it was totally clear everything that might have salvaged the situation was doomed, including the much hyped financials being garbage and the share count ballooned out of control I knew this would never be legit and nobody should be suckered into it again.
They assured the public they weren't diluting. Remember that? Of course, everyone knows they lied to the public for over a half a year claiming they were not diluting while that is exactly what they were doing.
Drew can whisper in your ears all day long about the truth, but the public has the real truth and whatever you or I say is a commentary on it. At least I stick to the facts.
That's right and on the charts volume will show the price is in reality getting glued to 1 cent and preparing for a descent into sub-penny land. It already touched 0.009. With the on balance volume of sales at a penny outweighing any attempt to paint the tape at 1.5 cents, the end of last week showed the stock in a full on decline, not setting up for a reversal.
You want to talk about charts? The charts say look out below. It is only responsible not to lure in gullible newbies thinking they know how to trade this stuff. MGB is right. The wide spreads are obvious now and when a spread is that wide, the game is almost over. When the stock is selling off on the Ask at below a cent there is nothing much that would keep it above half a cent for long if the selling ramps up.
Don't ever forget that these guys dumped 10B new shares into the market and sold them off at whatever price the stock was trading at. They didn't care if they sold a billion shares for hundredths of a cent. To them cash is king and dilution = cash. They have no business revenues. If they want income they will sell more shares.
What is different now? The people who bought post-split and are still holding have gotten hammered. And the prospects to get hammered some more are strong. There is no safety in rationalizing that the stock is going to go up now because it is down so much. At a penny it is worth one tenth of the stock price. As it goes sub-penny, at half a cent it will be worth just 5% of the post-split price of 10 cents. I'd say everybody who ever bought this and didn't flip it quickly has gotten hammered, both pre and post-split. That's the reality and it means people are just gambling if they buy now hoping for a pop.
Chart shows the contrary. It shows dumping and consistent breakdowns in support. It could just as easily lose 50% more next week as it could double. There is nothing in the charts that shows it is poised to breakout.
It is not a conflict of interest at all. Please explain if you are able.
That is more courtesy than they deserve. Good luck
or not
Clarification. You and some others are gambling. Some people are stuck.
Big difference between admitting you are gambling and every day or two suggesting that good news is around the corner, give them a chance, everything will work out OK. It is not OK.
And your point is? That you made money on the very brief post-split pop? Ever since every time you claim to be averaging down you've been going further in the hole. If anything, you're steadily giving up any gains you had from before.
The story has been told. The patterns are set in stone by now. Use this stock as a lesson in what NOT to speculate on, but don't kid yourself into thinking the story is going to improve. If they owe money to iHub and CMA which provided their L2 code, then there is nothing to promote. Saying it will get better is not plausible. Where are the financials they PR'd? The last time they released financials took them through the first quarter of 2007. We are now over 4 quarters past that and those past financials had them $2M in debt. The point is to learn that they can run a paper deficit and still pay themselves from cash flow from selling shares. They have no incentive to succeed as a real business. So whatever it is you are hoping for is a total mystery to me because there is nothing left to promote. Use this as a lesson and you can do better next time. We all make bad choices sometimes. That is not a sin. Good luck.
Yoda Bob. Contact Baron, the owner of the EliteTrader site. I had recommended to iFinix to advertise there and here on iHub. Baron was getting stiffed by them and resorted to identifying them publicly on his site. For that moment, it caused iFinix to pay up their tab and probably only because they were in the middle of promoting their big 11B share dump last year. But I don't know if he got everything he was owed by them. Sorry you had to get ripped off by them. Now maybe you can tell the iHub admins I was genuinely reporting thieves to spare other shareholders. Good luck with getting their debt to you paid.
Owing CMA is the ultimate irony since what iFinix claimed was their Level 2 program was based on CMA's Level 2 programming code and they were also dependent on CMA for their data feed originally.
Put 2 + 2 together and it tells you just about everything, including how they do just enough to get something they can pretend is really a business and get other people to give them those things and end up ripping them off.
Do not kid yourself and think that IF they got their act together they could promote this a real business. It never was a real business. They may have had a fantasy of it being a success a long time ago, but they also made sure to take the money and run each step of the way by diluting it into the ground.
That is how they paid for the things that were JUST ENOUGH to act like a real company like the TV ads and cause people to buy shares. That is the real business and there will never ever be a demand for anything they claim to have technologically. I saw these guys and they are not smart. Smart enough to sell shares and smart enough to use a shareholder like me who would volunteer to help.
I know because I wrote the script for those TV ads which they had produced for nothing in India and then broadcast on CNBC and Bloomberg. I should know because I told them to advertise on iHub and EliteTrader. Thinking I could help them succeed and at the very least help shareholders get out successfully was all fine and dandy if they had even a semi-decent product.
But they didn't and never will. It was garbage.
Any deal they make they try to cheat people on. They owe people money. That is well known. They are not interested in building a real business. How on earth can they earn $1M a year any other way than by selling stock? They can't even earn a few thousand a month from subscriptions.
Add 2 decimals to confirm bottom. Until then you can still lose 99% from here. As bid is now breaking down to sub-penny, there is less of a floor than ever. Buying this now is beyond risky.
If you want to play them, then that would be wise. That is fine. That is your individual choice and probably the right one. However, others who substitute the issue of individual trading choices as a smokescreen for taking account of those who are responsible for perpetrating a scam is not cool at all. Let people trade without blame, but don't blame peoples opinions of a scam on their trading. Apples and oranges and very insincere. Good luck with you trade.
I met these people. I had other people meet them. They lied to all of our faces blatantly and repeatedly. Drew and Doug are professional liars and there is no reason to believe these wolves have become lambs. None.
Due Diligence shows they are corrupt. Due Diligence shows they lied boldly and for extended periods to their whole shareholder base. They have no reservations about saying whatever you want to hear to get you to buy shares and hold them while they dilute and dump.
And they more than tripled the share count after the still recent reverse split and you have people saying things are different this time?
Oh really?
Remember Legend Securities last year? Nothing came of that brokerage relationship and nothing will come of anything now. No respectable brokerage will allow themselves to do business with these hustlers after they do their professional discovery and due diligence process.
They have a broken L2 module nobody needs. They don't have a mobile module promised over a year ago. They don't have a trading platform promised over a year ago. No more apologies.
The only reason they even try to use the uplisting con again is enough people remain gullible to rally around a lie the third time around! Third time! 2007 was not the first, but the second pump by iFinix about uplisting. They did it in 2006 too. People have short memories. They reverse split in 2006 too. Yes, true.
I met Spartan Securities with Drew and one of my colleagues. He lied right there about the share count still being 1.3B when it was already gods know how much. He lied at the market maker.
On the same trip he met with me and two of my colleagues with the auditors he said he had contracted with over a year ago.
Well he made the trip in order to lie to me in the presence of these other parties because he wanted me to pump the stock because I was the most influential poster when I first posted about the stock.
And that is how these guys roll. Doug and him lied to me and another colleague the very first time I met them in NYC. Doug contributes nothing and all Drew is concerned with is stringing people along to sell shares.
The MM and auditor he lied in the presence of were hired hands and he could say what he wanted and they did not have to even be in on the scam.
Well nothing happened with the sponsoring market maker and you can be sure nothing will because iFinix (which is Drew) is both incompetent and beyond salvage besides being professional scam artists.
They probably thought once they were a real company, but the one line this scammer loves to dish out is he has to do what is good for the company. What company? Its a shell stock he owns and dilutes to his heart's content. That is what it really is.
And his justification will always be he had to dilute to raise money to keep the company going. Yeah, we know 11 billion reasons why before and 24 million new ones and counting why you need to dilute.
And what happened to that first auditor? Nothing happened. Now they PR a new one and use the uplist blah blah blah to get people to pump again. Except there is one problem. These are simply independent accountants who will work for microcaps that can't afford their own CFO and they lend no validity to the company itself. And what happened to the accountant they hired last year? Did he bail or is too incompetent to get it done?
All you get from this gang is fiction. Anybody who does a lick of DD knows this.
Drew had the nerve to call me again 10 days ago. His new pump is failing so he obviously was going to try to seduce me with new BS. That took a lot of nerve. Did he think he could buy me with an offer of shares to be quiet or even turn pro instead of con for the stock? Is he that desperate that he thinks I don't hate his guts and think he is the sleaziest stock shell operator out there and that what I posted last Fall was somehow going to be forgotten and forgiven?
It showed me that the only thing he will ever do is sell shares. If he had any self-respect he would never have called me after the lying he did to me and my associates. But he did it because he is a shameless hustler whose latest round of reverse split and share dilution is already coming apart at the seams and he'll do whatever it takes to pump his stock, even call me. Incredible.
Drew, don't EVER call me again. I have a dossier on you. I will use it. I'm going to stop posting about your sorry iFinix today and that means forever. If you want to scam people year after year I will not be around to stop you, but do not ever call me again you sleazeball or mess with me. You got that? I have dossiers on your activities planted around the country. I have 4 lawyers who will spring into action if you ever try to do anything and I mean anything. I have witnesses who will testify that you lied to their faces. You wouldn't stand a chance. So don't ever try to contact me or retaliate in any way because if anything happens the wheels of justice will roll immediately.
So go ahead and scam the world Doug and Drew. It seems some people just can't get enough of your kind. That is sad, but true.
I hate your guts. And that is the last you will ever hear from me. And it better be the last I ever hear from you.
Reality is better
It is clear there is only one market for this stock. It comes from people who read iHub. If the buzz is up, the stock moves units. If the buzz is dead, it sits there.
This is important for any sane person considering putting money into this stock. If the only source of customers for INIX shares is iHub and there is a lack of quality verification of the company's business plan and products on iHub then you can be sure there will not be any other source of customers for iFinix stock coming from elsewhere.
Conversely, the source of selling of INIX stock will come from two sources. iHub customers who realize they don't want to hold the stock any longer and some of the 24M shares diluted post-RS that remain unaccounted for (and which calling the TA cannot help you track).
Expecting MMs to make a market in a stock like this is asking a lot. They can fill your orders when there is action, but this remains a grey sheet stock, not even a pink sheet stock. It is an unsolicited stock without a single verified MM who has guaranteed a market in it.
According to you only. A handful of posters on iHub who have the product does not constitute a user base a businessman or investor takes seriously.
They ran ads on Bloomberg and CNBC and it appears the only result was its benefit to pumping the stock, but certainly not in subscriptions.
The reality is no serious trader can afford to use their product. It has never delivered. And they promised three versions of their product, including a mobile platform and a trading platform, over a year ago and they never materialized.
If they cannot master the rudimentary demands of delivering basic Level 2 data why should anybody expect them to be worthwhile custodians of your brokerage account?
And if they did use money gained by diluting the stock 218% post-split to raise the funds to acquire a brokerage what will the client base of that firm think when the company they've been doing business with was acquired by an incompetent management with a publicly documented history of deceit like iFinix? Not much.
iFinix L2 code was copied and ineptly modified from the white label product offered by CMA.
Anybody who has done DD from last year realizes this. That code was created for the Brazilian and South American markets and was written in the 90s. That is correct. iFinix product is badly cloned code piggy backed on code taken from out of date technology from the 1990s.
The code was full of Portugeuese language in the notations of the software because iFinix did not even bother to clean it up to at least look like their own code.
It was a lazy, slapped together affair used to promote themselves as a data provider when all they had was a second hand broken down module they clearly never could get a handle on with their own marginal coding abilities.
And it still left them with a need for a data source they could contract. They are in no way a primary data provider, just a reseller of data from whomever they buy the feeds from. Except their interface has never worked well enough to deliver consistent data which makes them unreliable and useless to anybody with money at work in the market.
CMA was who they were going with before as their data feed, but that relationship seemed to dissolve like every other relationship they have. Who provides their data now? Good question worth asking.
In other words, even if the service does not do what it is supposed to do there is still a silver lining to be found because if you want perfection then you're looking in the wrong place or something like that.
If their core business is providing data and they can never get that right then how many times do they get excused for that? You can complain about a brokerage all day long, but you vote with your pocketbook and stay or leave based on your willingness to accept the service they provide. iFinix never could provide the basic level of competency they were charging for and therefore they have next to no clients as a result.
It is not possible to spin bad service as relative to others. It either works or it does not. iFinix has never been able to deliver consistent results. Never.
So it is clear you do not deny the company blatantly lied in the past. It is merely your stance that the past does not concern you. Got it.
MEC is a guy on a message board, nothing more.
O Steven. Everyone following this company knows without a doubt they lied their pants off last year. That is not even contestable. It is not a question of whether they are scammers or not, just to what degree and what they are up to now.
It is FACT that they lied about not diluting for over half a year last year while diluting from 1.3B to 11B. FACT. Everyone but you seems to know it.
It is FACT they claimed they were debt free last year when their later financials showed they were already millions in debt for the time period they claimed to be debt free. FACT
They are known to lie. Scammers lie. They are scammers.
Now maybe you want people to believe they have turned a corner and are going to walk the straight and narrow and honest path, but the burden is on you to prove that not people who know the history of this company.
OK, prove it. Get an 8-K filed. Otherwise, your guesstimate is looking pretty shaky.
We could call ProActive management tomorrow and find out?
What do you say Steven?
"it has signed an agreement to acquire privately held"
Hello? That is not a statement of an action completed, but of an intention to act in said manner.
That is basic English.
DD on INIX March 12, 2008 PR
iFinix Corp. Signs Contract With Maximum Financial Group to Use Its RealTime Information Platform to Get Prices for Microcap Stocks and Stock Data for Its Clients' and Own Use
http://app.quotemedia.com/quotetools/newsStory.go?storyId=8832723&topic=INIX&symbology=null
Here is the link to the website of the referenced "broker"
http://www.maximumfinancial.com/index.php?option=com_frontpage&Itemid=1
It has been down recently, but now it is up.
Interesting how some pages they have not even bothered to complete. For instance,
http://www.maximumfinancial.com/index.php?option=com_content&task=category§ionid=3&id=7&Itemid=25
or
Why does a brokerage website load with Yahoo Finance which is free and delayed for 15 minutes and completely inappropriate for a brokerage website at all?
So iFinix is going to provide L2 data to their "clients"? They PR they will provide live data 6 weeks ago and they have Yahoo Finance on their website?
Does this look like a real company to you?
They have not shown they can grow into a profitable company. Saying they intend to be profitable means what?
When the company finally released financials last year after promising them for 2 quarters it showed:
they carried a deficit of millions of dollars
had little offsetting revenue
Furthermore, the public documents they made available last year showed Budhu gets a straight percentage of any revenues that come in before they even accrue to the company's own balance sheet.
In other words, with them being millions of dollars in the hole, having little to no revenues and giving away the profit margin to the owner of this shell if they ever did make money, there is no rational case to be made for this ever being a profitable company now or years from now.
218% dilution occurred after the RS.
The reverse split was 1000:1. This reduced the OS from 11B to 11M.
Then the OS was increased after the reverse split from 11M to 35M.
The Transfer Agent was ungagged after the dilution was done.
Reports about the OS not changing since the TA was ungagged does not change the fact the stock was diluted 24M shares or 218% after the RS and before the TA was ungagged.
This means 24M shares were put into the hands of the company for whatever use.
It means anytime someone states the OS has not increased recently does not in any way determine what is being done with those extra unaccounted for 24M post-RS shares.
It means stock from that dilution can be sold every week for months on end without the OS going up because those shares were already issued. With the current market for the stock, what effect does selling even half a million shares have?
There evidently has been steady selling of the stock for some time from whomever holds it whether it is regular shareholders or people affiliated with the company.
No one should pin their hopes on calls to the TA to determine how many shares are out there to be sold because the TA only tells you what was diluted already, not what is being done with those shares. There can be 5M or 20M shares left for sale and nobody knows.
Being told to check for dilution with the TA completely avoids the issue of why was the stock so quickly diluted 218% for 24M newly issued shares after the reverse and what has been done with those shares.
Even if one chose to ignore the irrefutable fact of heavy post-RS dilution, those who use charts will see clear indications that shares have been sold steadily while a market for the stock weakens.
I am NASCAR agnostic. I don't watch it or attend it. But driving one was insanely exciting. Hitting the bank turn at 177mph was unforgettable. And it was standing room only. DJRT was sold out for the day and every lap they could run that day at Talladega was spoken for by the crowd of regular folk who had come to have the same experience.
I won't speculate on the future of the Nascar fan base. I will speculate on the raw fact that the customers come to the race track and pay their hard cold cash to get in the cars themselves. I was there. I saw it. DJRT runs a smooth operation and the customers leave with big grins on their faces and tell their friends and family and workmates they've gotta try it.
Your window on the poverty of a particular region may simply be irrelevant. Don't let your bias against Nascar cloud your ability to see the business clearly.
Joe
"Thank you TS for that report. Did you get any sense that Deep Down might be involved in aquaculture, wind or wave energy projects or ocean floor mining in the next year or two?"
I don't know, but I consider that more speculative in nature. The time from planning entry into a market niche to actually producing meaningful sales can take years. Unless there is a partnership that introduces the company to such opportunities more rapidly I don't see those areas as being likely to contribute anything to the bottom line in that brief amount of time. Of those, ocean mining will be massive and that also seems to be the best fit technologically as well. Any initiatives in that direction could greatly boost the long term prospects for the company even more over a 5 year time frame in my estimation.
"Do you have any thoughts/comments about last Q's numbers?"
There is sequential growth in those numbers if it is parsed out correctly. The company is growing, no doubt. The numbers should keep growing.
"Did you feel better about the Proteus before or after your visit?"
I saw it operating. Its very impressive, obviously well engineered and everything they produce looks to be of the highest quality finished product. Deep Down is a fine logo to have on your gear. Yes, I'm positive on the future of the Proteus.
"Morale was high, do you feel the engineers and employees are looking forward to the daily challenges in the oil industry?"
It is totally irrelevant to their goals and task. The deep sea sector will grow heavily regardless of the price of oil at $70 or $100 a barrel. The company will have their hands full dealing with that growth. Oil fluctuations will not in any affect work activity or outlook at the company. And it should not be drawn upon by investors as any kind of metric on which to base an investment in DPDW. If oil hits $70 in a month it has little bearing on the progress of the company. If oil went to $40 it would. That seems almost impossible, therefore no one in or out of DPDW should be fixated on oil price movements as a basis for judging the company's performance or prospects.
Granting autonomy is largely a matter of acquiring already existing expertise that functions without excess supervision. Mako has a distinct business model that can produce good margins from rentals which contributes quality cash flow to the revenue base.
Mako is not just a rental division, but a brand name that can be leveraged to satisfy an increasingly broader coverage of client needs via "Mako" branded tools and products designed and manufactured by or for DD. There is little likelihood they will acquire Mako only to rent out submersibles, but with the intention to penetrate the market in new ways and then grow it organically and thus hopefully dominate equipment supply both from the rental and sales angles.
EW is a fully owned subsidiary of DD so it would be part of the company's revenues and financials regardless of how they break out their accounting for internal tracking purposes.
A Brief Summary of Thoughts on DPDW
Hello,
I visited the company and indicated I would post a report or even a blog on that trip after following up with subsequent due diligence. I have been busy on other fronts so I did not put up my comments. I will not do a blog on DPDW as I have certain limitations on what I can say. What I can write I can do it here. I will not do a blog at this time due to other professional considerations where my opportunities far exceed my stake in DPDW, though it is quite large, and are not served by blogging about an investment I made on the open market like this.
I will keep it short and to the point. These are some of the areas of emphasis I think most here can benefit from regardless of whether anything is new information or not.
1. Deep Down is involved with basically all of the major oil companies operating in the Gulf of Mexico and also with many of the important oil companies globally. Repeat business is definitely a fact of life for the company and it should continue to grow in addition to contracting with new clients. As it is, their client list now is not fully promoted, but it is very extensive and impressive.
2. Deep Down has business globally. They are operating on other continents now with staff on location servicing client operations. This does mean there can be and should be important service and hardware contract wins coming from major deep sea projects in international waters in the future (I am not suggesting any time frames).
3. The DPDW work site is already fully equipped to fill all orders and can handle increased work loads. The work site is very active and morale is high. It is structured to meet all quality control review standards prior to shipment. Their current engineering and machining capacities are extensive and any complementary services required to complete a job are easily obtainable. Basically, they are ready to scale as order flow increases.
4. The company does not announce every order filled. There is plenty of activity with clients making repeat orders so while there may be silence on the PR level that in no way should lead anyone to think they are not busy at their home location prepping orders for delivery. Prior camera coverage of incoming and outgoing site traffic and gear movement was accurate in nature (it was on camera previously, but in person those impressions are verifiable).
5. The company has an already significant work force and may grow to over 100 employees in the coming year or so (my assumption, not their statement). With Mako closing soon, that assumption may already be met.
6. Over time there should be growth of additional streams of income coming from the boating sector and other markets that may be marketed to and penetrated by DPDW divisions with ElectroWave leading the way. The Mackinaw control systems are the real deal and it is just a matter of time before the Colonel is booking sales in this segment. The market is quite broad for systems control consoles and ElectoWave has cutting edge tech in this area with innovations in development in addition to those already designed. There is a sophisticated facility dedicated to these operations on site that is clearly a highly functioning operation with many irons in the fire. Fundamentally, their immediate value to the company are the direct synergies from its computerization of Deep Down mechanical devices, but over time EW looks to be a growth arm of the company generating new markets and sales channels that will grow revenues.
7. Clients maintain active roles in the development of products designed and crafted for them. As such, DPDW evidences deepening and ongoing relationships with clients for whom they are delivering new products.
8. The company is led by an expert in his field. Ron Smith is often senior in background and capabilities to those running the deep water rigs he advises for. The major oil companies and their hierarchies means more junior people are often placed into daily operational and implementation roles on the deep water platforms. Many are not equipped to trouble shoot these projects the way Smith is. As DPDW ramps up in size, their already growing reputation as problem solvers will translate into greater size orders coming from mega-billion oil deep sea development budgets.
9. Deep Down has relationships with all of the independent private companies that are also go to teams on the deep water projects. As a result, Ron Smith has been working alongside the intellectual leaders of the deep sea field and is friends with many of the CEOs of the key independent services company in his sector. These are the people driving many of the technological innovations in the deep sea sector, not the in-house engineers of the big clients.
10. Many of these top senior independent CEOs in deep sea oil services do not want to be absorbed into major oil companies, but are interested in both capitalization for growth and to capture more of the growing budgets in the sector as well as getting equity stakes in a public company they can help to grow. DPDW was the one in the group to go public and has the leadership position now from which to consolidate the deep water services into THE NUMBER ONE company in its space. Therefore, it is implicit in the business strategy to grow the company into a billion dollar revenue operations both through organic growth and via acquisitions and thus attain the status of the premier deep water oil services company in the world. They have a very good shot at doing just that.
11. On most products, Deep Down's turnaround time is vastly faster than larger companies that may provide similar gear. This time factor is likely going to be a growth driver unto itself and factor into securing even more contracts. It should also translate into better pricing advantages for DPDW as clients will pay a premium on a mission critical item that can be delivered and implemented a year faster than your competition. Therefore there should be advantageous increases in sales margins on some of their product lines as sales grow.
12. DPDW has made it to the next level where they are capitalized, larger, integrated and staffed to the degree larger companies will be comfortable placing more and larger orders. It is a common catch-22 for smaller growth companies that even if you have the best products and service available the largest companies may still give their business of a larger competitor of yours until the client sees you've attained a certain size yourself. Large companies want guarantees you will stay in business and can deliver on large contracts. DPDW is entering this phase now.
These are some basic ideas I'd focus on in continuing analysis of the company and their future prospects.
Take care and happy investing
Some people participated in a private placement roughly over a year ago. Any who sell now will be filing a 144 as you say because TBLC has not put out a registration to sell those shares yet. That is probably due to the solidity of the shareholders who are holding long term. You may see a 144 sale from time to time, but those are people booking 500% gains and that is their prerogative. Not that much to worry about since the big holder is Praetorian and they are in it for much bigger returns. They hold plenty already so whether they buy again or not is no longer an indicator of their continued interest.
TBLC has publicly stated they have been active on their properties at various stages of drilling discovery or permitting.
I think a deal with the stock over $4 means the dilution will be very manageable in relation to the buying prioe. Yes, I think the deal will be reasonable.
Mike
I think 15% is more than fair. Based on some inquiries I've made that seems obtainable on SMD's portion of the business. If that equals roughy $15M and the OS is increased by 10-20M shares, then an approximate way of looking at it is the acquisition could immediately bring in anywhere from .65 to $1.50 in earnings for each share of dilution. Factored into the whole OS after closing, that could means something like .30 to .60 in earning added to the stock. These are all very rough numbers, but my outlook is the acquisition of SMD will generate significant value for shareholders immediately and seriously boost the bottom line at a very good cost relative to the dilution that occurs.
I don't know what the OS will be, but I'm confident Guill is getting on board to get wealthier through equity with TBLC's stock rising aside from whatever cash is used to complete the terms. I believe this will be structured fairly to TBLC so they both get win-win and the stock can go up significantly as a result of a great acquisition done on reasonable terms.