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Shi- so you are saying "we still have a chance" LOL. Remember, we have a $162,000,000 contract w/ TSA ( it sure feels good adding all those 0s).
There is much -more-many MILLIONS of Dollars of value inside ISC. They have the IP for the future product evolution coming to TSA. IMO. That does NOT get thrown on a junk pile and have the "tribe" dump gasoline onto it.
BC- agree with you in spirit-- the SA note/tie in on expends. contract just points to who BM "might have" been talking with. SAIC is ACES in my opinion. Their science rep is top notch and they can evaluate this space better than anybody else. What is really cool for ISC, BM can speak science with them and they get it and can even add to it.
This all makes sense if SAIC has seen the future like BM has and that is the T.O.T. product to end all security products for TSA. But remember, Bucky Beaver and friends are pushing "hounds" and they control the levers to do that.
Things could break for our way very fast and very friendly.
IGH- I don't think he's holding 2s, jacks, 10s, 8s, and 4s of different colors.
Here is why: BM knows DM will stick and stay. Whole-selling the company is an absurd proposition unless a S/M were lurking in the deal.
So BM is burning the SP every day and telling DM-- look, your fat happy convert days are over...we'll take this to 10 cents as we have business to do around the world and with TSA. With that said, he has to have some plan to provide a cushion and the RCA agreement is NOT that plan, but an OK last resort or cash flow pumping lever.
So Monday, BM has to tell us what that is. Again, the window for a great deal is closing, the window for any deal can stay open for a long time.
Of course, DM can upset the apple cart and act petulant but that is NOT to their benefit either. They have thrown their muscle around but doing that when national security is at stake is very dangerous.
So BM has an ACE-King- then 2-4-8 and is drawing 3 cards IMO.
maebs-- please-DM entered the stock selling w float at/around 18M shares...they will likely exit it around 83M shares. The math is screaming at you.
When you convert at 8 cents a share on interest and get 36 cents a share, you are happy as heck. Not as happy as $1.58 but still darn happy. And you plan on doing that until they give you back your principal of some $60M.
The barrel over ISC is tall and strong. But that is where very strong mgt. comes into play. BM and BL have a deep, well respected resume in this space. Their ideas and abilities speak volumes for whatever they have in mind. But do NOT doubt, DM is the DUMPER and has BEEN THE DUMPER for years. Its like they majored in CONVERSION at college and then decided to hang out at the beer keg for another 4 years.
Buffalo is calling DMRJ "out". OK then, the scorched earth play is in effect.
So now, the NBA is up...Monday should lay that out in detail and NOT just be a review of sales PRs from last year.
So the floor is open on restructuring guesses...and remember, they upped their costs w a round of internal salary raises and they have put DM on notice of other events pending. I have to believe that they have an alternative ready to go and signed. Guesses one and all...
Buffalo- you are describing a scorched earth approach to supporting the SP. Let it burn down, that would dissuade DM from being so ecstatic at their good fortune thus making them easy to dislodge.
I don't buy that. Sure it works in Russia against the invader but allowing the SP to burn in hopes of dis-enchanting THE debt holder is beyond risky. What if, in fact YOU succeed and you don't have a NBA ( next best alternative) on the line...?
Worse, you have Bucky Beaver on the House Oversight comm. telling TSA to "invest in dogs, not technology". Place THAT against the Admiral in Charge and things are slowing down at TSA...
We walk a thin tightrope that gets thinner every day. Not a bash or an attempt at weaseling shares, DM gives me shares anytime I want to buy them...but it is reality.
The window for a GREAT deal is closing, the window for ANY deal closes March 29th-- that's the gateway we have to get through. TSA could help this, TSA is likely to hurt this...right now, I think "any port in a storm points to URI-VILLE USA."
Buffalo- I get the debt threat facing ISC. And the cost of carrying that debt. However, BM is in charge of addressing that and we have to believe that he is in fact really addressing that. Further, you have to assume that DM does not want to swallow the loss facing them if ISC goes BK. There are too many positives in ISC's corner to fold the tent now and try to sell off IP...that's not an enticing recovery prospect, IMO.
But then again, pin heads in DC want to buy 25,000 dogs ( buy Purina stock?) and have them sniff Mr.Ms AIR TRAVELER!
JT- JC is a dog gone loon. Couldn't qualify for SS, so that dept. doesn't sit well with him.
But to say "Europe and Israel are the successful models recommending DOG screening" is absurd. And then to say, "dogs don't have lobbyists" is the reason why TSA doesn't buy more dog screening is another misdirection.
Dogs have a place and a role at times and in certain places. But imagine "Mr./Ms. Public I HATE X RAYS" getting sniffed by angry/hungry/horney dogs. I could on the tangent but I'll let you guess what I am talking about.
Finally, the TSA job morale problem is sort of a factory worker issue combined with a peanut gallery issue overlaid onto an angry hornet's nest "issue".
Summarizing, OVERSIGHT COMM. NEEDS OVERSIGHT CUZ WHAT THEY SEE AND DO IS WEAK AND GROSSLY INEFFECTIVE.
Buffalo- you fail to estimate ISC's huge achievement; virtually bankrupt mini-cap passes all world-wide gov. ETD certs!!!! Think about that.
Think about this: same mini-cap outsells all other ETD competitors in 2015.
Then consider this: our hero, the mini-cap, gains TSA CRADA to develop TSA desired inline ETD to meet TSA new screening strategy.
THESE ARE NOT TRIVIAL ACCOMPLISHMENTS AND WILL NOT BE IGNORED BY THE BIG-CAPS!
There is value in the ISC IP vault. McGann knows that value. His/ISC's challenge is to exploit that value and grow the SP while diminishing the debt and stopping the on-going dilution.
So far, he has failed miserably to do that in shareholder eyes BUT by his own choice. NOW, he has stated a new direction...so he deserves a chance to deliver on his new intent. To my mind, he was basically saying: THE INLINE IS READY TO SUBMIT A QDP TO TSA TO INITIATE CERT. ALL IMO.
Buffalo- you make a good point that you also have just "sat" upon;
Building a screening product and getting it thru world-wide gov. certs is a $100M proposition.
Since ISC has successfully built ONE, the industry predicts that TWO takes 25% of the time and 15% of the cost.
Meaning, the real value of ISC is yet to be harvested.
Therefore, unless someone pays them out, DMRJ is sitting on a gold mine tomorrow and a much larger one a year from now. Why sell the mine for a bottle of water!
Further, the security infrastructure market sees a compelling need for exactly what ISC has developed AND an easy to tap market to sell into. ISC = PIE!
Do you like PIE?
Aww Buffalo- you think DMRJ is going to let a $60M "due" go down the tubes and take ownership of the Enterprise?
Not going to happen. But the terms for keeping it on the road its on will be painful.
I sense the company will stay on this road, try NOT to borrow another dime, make interest payments with cash, if possible, and continue to build ETD products that TSA is interested in. This bodes poorly for SP appreciation UNTIL ISC has an INLINE ETD INTEGRATION PARTNER...they won't get that until they can prove it meets baseline TSA specs and enters the cert. process.
So this may seem like a license plate slogan- NXT YR Z IT- it's closer to the truth than ever.
Remember the $2M INLINE CRADA award...the industry pays attention to that for two reasons; TSA is interested in "something" ISC has ( means they have looked at a test of said product) and little ISC is cash strapped making them a take out target IF they succeed.
But you have proven to be the ultimate inverse oracle so maybe I don't wait for the .30s and start accumulating right here...naw, I'm waiting. I think you will be worse than a pickle jar left in the sun for a day come Feb.13th!
But I do agree, BM is NOT a leader, but a great scientist. That's the painful vacuum we are in right now.
Correct- SA installs B-220s and fills orders for swabs/expendables. They do it thru the contract ISC has w/TSA. But it is a revenue stream that will start to flow and deliver top line $s in Q1-16 cal. All good stuff and great stuff.
I expect to hear EURO airport follow on orders as the second tier begins to order to meet deadlines. All of this against a threat-scape that is spreading wider and wider by the day.
I think we can safely say that world is less safe today than it was yesterday.
UNK- not trying to do either, but I do agree about me "not being smart enough". Like everyone here, we guess as best we can based on what we see and what has happened. I happen to have a bit of some "other" things on my resume that give me "other" insights but never mistake that for superior intellect, its NOT, its just another guess from a different angle. Ignore my posts, I'll ignore yours.
UNK- DM is making too much money dumping shares every day AND they are owed too much to walk away...but DM putting more into this would be a last resort ( for them and for ISC).
Further-- the high carrying cost is limiting ISC's innovation goals so THAT has to change also. And please don't say: it costs only shares not money. THAT is disgraceful ass sure it costs shares and angers current shareholders who move further away from alignment.
Finally, it serves no one to have a mis-alignment between mgt. and shareholders-- that has to change. DM made less on their conversions, thanks to that and shareholders got put in a hole where NO ONE wants to buy shares.
RCA is a positive as it keeps cash flowing faster and avoids tapping more credit, but it has to be a small part of the solution.
IMO, shareholders would have bought into this company to a greater degree if mgt. would have aligned with them, but this mgt. chose to treat them poorly and for NO good reason. THAT has to change. Has to.
UNK- 2015 was the best year for ISC sales, ever. 2015 was the worst year for ISC mgt. and shareholder alignment. Why is that...? They don't care about shareholders.
But they turned that around near the end of '15 and have stated they are going to change focus. Will they...? I don't know, but by 2-15-15 we should know everything.
IF 2016 offers more of 2015, then we are looking at a decaying SP, maybe not as fast-far as 2015, but certainly not reversing.
What is odd is this- the only way out is to innovate new products onto the TSA's QPL, which mgt. stressed was their goal and focus...so in a way, they basically said: forget the share price and watch what we create. OK, what have they created? They haven't told us much except the hand held will be available to ship by 6-30-16...no big deal unless TSA certs. it by then ( it won't).
Production in quantity and orderly progression of sales were key priorities in 2015 also and the company succeeded greatly in those areas...
I think they missed the largest threat to everything they were doing and that is a dwindling SP with an increasing, out of balance cost of financing, which is why NOBODY wants to buy shares. That may even extend to a potential partner's view of ISC.
So can they convert R-D and SALES-PROD. into a lower cost of carrying enormous debt and deliver a new improved IMSC? Tacking back to your question of why they aren't buying shares...if/when they start buying shares, then we'll know the answer to my question.
Uncle-Reasons--
- stock is being diluted everyday. the safe play is wait till diluting stops and the stock is much cheaper
- the company is in deep debt with a young-growing revenue stream but NOT one that can extinguish the debt they carry.
- Change in Control assures insiders of a pay day on a take out of any kind
-McGann/Jones have option incentives set at 1% of outstanding shares at SP on close of at least $15M in new financing
-Insiders can grant themselves options anytime they want
- this mgt. arrogantly ignored one of ISC's greatest assets- its loyal and steadfast shareholder base. Its gonna take a lot of smart, well managed positive events to make shareholders forget the absurd year that 2015 was and this too makes IMSC unattractive to even mgt.
I think we can safely say that if IMSC was a lucrative investment opportunity, the insiders would be buying every share on the open market they could get from DMRJ everyday they are legally allowed to. Not sure if you realize this, but this stock is as dangerous as they get but the counter-balance to that danger is DMRJ is owed a ton of money and they are making money everyday the market is open so I am now expecting MORE OF THE SAME FOR EVERY TRADING DAY IN 2016.
But the clock is NOT on ISC's side as ISC now has to out innovate the huge multi-nationals AND the new tech start-ups, both of which intend to do a lot more business with gov.s around the world.
Brady- they have to play the game or its over. Big problem as I see,misalignment between shareholder interests and Change in Control Gang/mgt. I'd scrap that CIC plan and award them share options should a CIC happen. Putting a huge CIC payment above a shareholder distribution guarantees their interests take priority. That's a fundamental misalignment. But mgt. should be rewarded in a take out, just not the way they rolled this one.
I still believe this company has a future as it has come along way from the ashes of 8 cents a share...say like to 48 cents a share and 80M$ in debt BUT with solutions the world wants. I think.
Buffalo- you and I know they are GREAT products BUT until the TSA says they are really great products, well, they don't exist. It's a repeat of the B-220. GB told us it was a really great product but until they passed TSA muster, it did not exist.
TSA in flux right now but going ahead with inline dev. grant is a sure tell they want to see the best ETD integrated into current system and then into TOT. THAT is really good news as it assures a buy out should it pass cert. ( pretty sure it will)
Buffalo- BM/ company has stated the "new" handheld will be available in ISC's Q4. He was asked on the last CC about it and sort of deferred to TSA's changing attitudes regarding a handheld component in the passenger scheme of screening.
I think you put a military man in charge of TSA and you will get results IF the objectives are clear. And the Admiral has pointed to the TOT as his ultimate product/goal scheme for passenger screening. He even spec'd a broad timeline of 5 years.
I am a firm believer in ISC's place within the TOT product development. And THAT is what brings real value to ISC as an emerging yet purchased Trace Product Developer/Producer. I think an inline ETD unit is part A and a handheld ETD is part A-2 in the scheme of things. By this I mean if an INLINE unit can detect trace in baggage/cargo, then ISC's contribution to the TOT is confirmed. Whereas, a hand held is not as vital for proof, IMO.
Summarizing, IF ISC's inline is successful, ISC will be purchased at a significant premium. I believe we see tangible results in 2016 and I refute a counter argument that "its always about tomorrow" with ISC. The company has proven itself around the world. Now it needs to, in a coach's cliche-bag, Take it to the next level.
MEIM- the headwinds that ISC have faced are enormous, yet it prevails. That "slog"has weighed very heavily on investor sentiment. In support of this assessment I offer up the SP trajectory- down, down fast and vey weighed down.
All by a seemingly sinister combo of the "financier" and a "busy mgt./ not engaged with shareholders mgt." Key question going forward? WHAT HAS CHANGED FROM THIS ASSESSMENT?
Answer: a change in mgt.'s attitude and a change in where they focus their energy.
Outcome: way too early to tell. I view the RCA cash flow speed enabler as positive IF, big if, IF that is the first of other steps the company is taking to end the ongoing serial diluting of DM with a real intent to be responsive to shareholders by supporting a REAL valuation of ISC's worth.
ISC cannot be valued fairly while a daily serial diluter is pushing down on the SP. This is key to everything for this company and for its owners, IMO.
I do appreciate a positive attitude and yours maybe the best I have heard in many a day. I do look forward to the day I can join you but THAT day may be far away or it maybe closer than any of us can imagine. Just my take on things.
Fred- I think you are remiss to lay all the blame at TSA's feet. For one, consider the competitive factor and all the poison chatter that has been spit in TSA's "ears" by those losing competitors. Then consider all the "concerned" citizens who have claimed freedom infringement by TSA's "methods" and then look at Congress' role in oversight-- to say they have been "helpful" is an absurdity.
On the other side of the coin-- the end result, full cert. and purchase says: all of the above caused the country to be at risk while they played their games.
I think the company has done everything it could as fast as it could.
RCA-payday loan program--two ways to look at this;
- POSITIVE LOOK- It protects the company from having to go to DM-BAM, IF they have other "irons in the fire" that may take a bit longer to get "hot" as small gov. purchases from say State-DOD-ATF-Fed. Prisons solicit drug detection/ETD equipment from ISC. It would be considered smart-prudent and a positive for shareholders and company and a neutral event for DM
- NEUTRAL LOOK- if this is all they have planned, then I would say we are staring at a steep slope downward as MORE OF THE SAME continues.
I think the positive look is much more likely considering: TSA's grant to ISC, announced for Dec.'15 has NOT been PR'd ( not likely to be PR'd) but the timing foretells at least 8 months to cert. start.
I think it shows the company knows the SP is a vulnerable point of attack that competitors are pounding on and something/anything had to be done and is in progress at worst and likely to be item #1 of more at best.
Montel would approve!
PHX-- very possible. Admiral Neffenger ( TSA Director) has stated that he felt the tunnel of truth was about 5 years out. The TOT combines many modalities to provide a seamless walk thru - secure experience in near real time. Meaning, if it takes 5 seconds to walk 10 yards, that's how fast the TOT would work. And YES it needs ETD and YES YES it needs the tech. that ISC has already shown in their ETD Portal.
UNC- closer but not spot on-- because a dilutive event ( DM dumping shares) is an everyday occurrence, there is nothing to manipulate. Shorts can sit there with packing tape over their mouths-- because the shares they need to cover will be dumped in front of them everyday. And the main reason why NOBODY wants to buy this stock today, knowing it could be much cheaper tomorrow. As evidence consider: ISC ships to TSA--blick-o, ISC sells 650 units to Europe--bupkus, ISC consider's strategic options--vinqk. The share was not manipulated to stay in place, its just the way it is with an everyday diluter. And it TED was anywhere near right about them REALLY desiring a higher price/share-- they would have stopped the moment the Strategic Exploration PR dropped...they didn't.
And if you really want to peel away the varnish, you could say ISC is manipulating the SP downward by allowing an abusive loan package, at above market cost, to stay in place for over a year while the company had achieved its promise of landing TSA certs-sales. They did NOTHING about this for over a year. NOTHING.
Ted- BM and DJ have this incentive option regarding them securing financing of $15M:
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The agreement also provides that within 30 days after the completion of an equity financing, the gross proceeds of which to the Company are not less than $15,000,000, the Company will grant Dr. McGann an incentive stock option to purchase that number of shares of common stock of the Company which, together with all other option and equity awards previously issued by the Company, will equal approximately 1% of the Company’s fully diluted equity.
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The option price sets at the time of closing, BOD have to approve. The 1% amount of shares set against the # of shares outstanding at the time of closing. This predicts a strike price/#shares shortly after a conversion at a low strike price and higher share count. Not saying anyone is working toward that, but its usually how things play out.
IGH- setting a price, in whole, is premature at this time as the products that guarantee a fair price are NOT fully developed. Further, sales in the future for the B-220 are not fully visible, all of which deliver a poor offer ( IMO). You could use a trailing gross sales # or a forward sales number Xs anywhere from 2-6 to get a dollar amount. Of course, if competing interest is high and the potential buyers think they can drive much higher sales out of ISC's current products and are will ing to risk capital on developmental products and the IP, then who knows.
I'll say anywhere from 80M to 450M-- its that big of spread. Share count, 170M if the convertible debt/interest is converted. Plus or minus 15M shares.
I think in a year, the value of ISC could be 3 to 5 times what it is today. I am totally against anything under 250M$+ debt paid out.
Uncle-- you are not quite getting it: IMSC is a poisoned stock due to daily-ongoing dilution. That is why a few shorts play the stock-- they know for a FACT, that DM will provide cover shares-every single day.
That un-dynamic has killed interest in the stock. IMO, the company PRs have lost any power to lift the SP and until that changes, the SP will spiral downward. One might say: why is mgt. letting this happen? One possible answer: BM/DJ and or both receive 1% of outstanding share count as an optional conversion at the price set when/on the day they together or singly bring at least 15M$ in NEW financing to ISC. More shares diluting = higher float share count and lower SP= a delightful option award.
Uncle-- are you kidding with this part of your post: Some say DMRJ is selling, some say they're not doing any significant selling.
Who in their right mind would say DM is not doing any significant selling. I would say a threshold about of 45,000 shares each and every trading day get paid into the DM trading account. If vol. is above that, then another day will likely be below that.
There is NO disputing this.
Ah Buffalo, smart money says we get a refi loan greater than $15.01M. And either BM or DJ or both BM/DJ get the credit. The longer it takes, the greater our "thanks", right?
Buffalo-
Don't doubt that they are listening as BM thanked them every CC, just as YOU would if you owed them 60M$ and they could end your career with one letter.
But you bring up ODDS of this or that and you place"continuing with DM at 3%".
Actually think its more like this:
30% chance a partner invests into ISC to pay DM out ( best outcome for shareholders, positive for mgt.)
30% chance that DM provides another loan at better than 12.5% interest with NO convert provision ( worst outcome for shareholders, neutral for mgt.)
30% chance the company refi's all debt at a less than 12% and pays DM out. ( second best outcome for shareholders and positive for mgt., extremely positive for BM or DJ if they are responsible for bringing in the NEW loan(s))
10% chance the company is acquired. ( no comment until terms are known, but mgt. is covered via 11% of buy out price per CIC payments but have little skin in the game in terms of shares unless the per share payout is far above $1.40/share where they can convert)
HAPPY NEW YEAR TO ALL IMSC LONGS!!!
UGA- don't let THAT article keep you up at night. ISC's B-220 product and software engine already find triacetone triperoxide (TATP), the homemade bomb makers choice of substance.
That same engine from the B-220 will find it's way into the Hx-150E and the ETD INLINE unit when its time and when TSA decides how to proceed. So Dr. Sus is a day late and about 10M$ short.
FYI- TSA is paying ISC to develop an inline ETD product to compliment baggage/cargo AIT machines. ISC expected to receive some funds on the $2M total in this month. So we have THAT going for us, right now!!!!!!!!!
HAPPY NEW YEAR TO ALL IMSC LONGS!
B9- I think you have the correct read on the document. Remember, it is GAO interpreting TSA plans ( they lifted selected quotes from TSA docs.) at a time prior to and during a TSA change in executives AND it does not address the ramifications of the RED TEAM report. ( i.e.. detection systems work when human error is absent= need for all-knowing automation of systems--- this is what TSA is currently digesting)
So, take it as a report that everyone already agreed with, but now has to be considered invalid except for THIRD PARTY TESTING to help speed the flawed-expensive testing process.
That is the ONLY worthwhile take away from that report. TSA's process is/was slow, cumbersome, expensive, anti-developer and they had to be prodded to care/change. Hey, Pineapple soda for everyone!
HUM- you are OK in my book--we all have "headaches" over this investment and expressing those and their "IBUPROFINS" is what this board is all about.
Thanks for the great links.
WICK- agreed on a couple things in your post, however, one RANCID difference- a developing company takes on huge debt and turns the corner once it produces enough to break even and then begins to whittle away at the debt...this company will not reach the time and place to begin whittling its debt for years while the nature of its debt ( the toxic interest formulae-conversion) continues to devalue the company. So it needs a dramatic infusion of capital to change that dampening dynamic.
I think ISC could thrive with 150M shares and NO debt but the problem is how to get a fair valuation for the price of new shares sold while the toxic diluter continues to dilute and hold the share price on the market at a very unfair valuation.
I doubt a sale in the answer. But to swing the infusion of needed capital, we need Superman to guide the deal. I expect a hybrid type deal. But think about this: I buy 50M shares at 1.15 and agree to not sell them for X years and we then begin integration of our products...in X years my 50M shares are worth 2.75 because we achieved our common goal while both companies sold plenty of product based on our integration...that's smart...now if buy the rest of ISC, the amt. I pay is worth it because I know the product inside out. Anyway, that's Superman's job now...
Hum- all current S/M ETDs leave QPL status at end of '16 so the 5400 ETD unit - 1170 ISC units already purchased= follow on ETD purchases in post '16 and likely to be ISC+M units ( if M's new ETD gets on the QPL- and it might already be on there).
My sense, the next phase of EDS-ETD-METAL-FLUID detection systems ( known as the passenger portal) is where TSA would like to go...an all knowing- no operator system is what gets TSA's interests.
Problem is, you have a security tower of babel of sorts as disparate companies/technology flavors are not easy to integrate. And obviously, the reward does not merit a risky cash investment into R/D that TSA may not like after it encouraged investment.
If there was a master designer-integrator that could buy off the shelf components to plug and play into its designed system...well, that could work. But TSA needs to be clear and provide the seed money.
We do know that TSA wants human op interaction lowered and human op error removed while targeting ALL KNOWING status on any threat known or imagined.(LOL on the imagined aspect)
CMAS- I don't know. Did DM convert some more or were we looking at a dumping lag period of sales? We don't know that. We do know that USUALLY they dump between 44,000 and 50,000 shares a day...so days way below that range mean days way above that range.
Also remember, the nickel splitting shorting, which is small in volume but fairly consistent drives DM to provide shares on short cover days. Its an ugly baby, but its our baby. Hope that helps.
SHI- my sense- if the PR is NOT very material, no way do we see one that just gives DM more encouragement. We have to get rid of them to thrive--no other way around that.
IN my view, DM should be tired of selling our shares everyday. They made their loan principals back thru interest converts, now they get their interest and the actual real principal paid back and will likely keep a small amount locked up for a bit. This makes ISC a resounding success for DM with a nice upside kicker down the road.
I see this all coming together nicely with the only river between the sides, valuation of an ISC share, it certainly is worth far more than 50 cents...and THAT is the wicket-- the daily share price is a metric but in this case a very incorrect one. But how many times have your heard: Mr.Market said you are worth....a share.
Wick- sorta agree w/ you EXCEPT when you listen to BM's latest interview- he sees ISC surviving and thriving as a stand alone ( sure, could be a negotiation bluff).
Then consider their talent search: heavy engineering talent wanted.
So, ISC is looking for a partner to buy in, they will take that partners "talent" into ISC to ensure correct integration development, then, if successful, the partner can buy the balance at a REAL valuation.
OR...the partner delivers REAL valuation right now.
In my thinking, REAL valuation can only be based on forward revenues ( all other metrics are absurd) so at 5 Xs 42M you 210M plus assumption of debt. You could add an extra 2 to the 5 if you really think ISC has the future wrapped up tight.
The benefit of a partial invest in by a partner, time allows them to see what ISC claims, that non-contact products coming out of the ISC IP closet will rule checkpoint and baggage product development for the next 10 years. I think they will so now comes hammering out the deal points.
A PR right now talking about the TSA's development grant for $2M for ISC's inline would really add some strong credibility at the negotiation table!!! Besides taking some financial heat of this 8 year old pup.
UNCLE- ask your brokerage if the shares marginal in your margin accounts can be loaned out to shorts. Usually, all marginal stocks can be. I closed my margin accounts when my broker told me: yes we are loaning out your IMSC shares, your XYZ shares--all the positions held for margin. They actually offered me an incentive to continue to allow them to do that. I closed the margin-ability in all accounts with them. The downside was: slower to clear executions, obviously NO credit etc. Big deal it is not.
SHI- if you listened to BM tell the "story" you might have fallen asleep. THAT may be part of the problem. And then look at their choice of who is asking the questions--sheesh.
Take heart, if the OPEN POSITION listing is real, ISC is about to get a huge injection of real support, not the kind that almost kills-almost enlivens-almost kills etc. I would hazard a guess that those positions will be filled by ex-employees of our new partner- a huge positive for ISC and the partner.
Keys to keeping THE DEAL on track: revenue now is about 5 Xs as important and its always been of the utmost of importance, the company sticking to their stated goals that BM played out in the interview ( IMO, that is why he did that interview-- it wasn't for us, it was for the negotiators), and winning some new near term business.
What I cannot believe is how EURO / Secondary airports are dragging their feet. Think about the peril there in terms of a bag that starts in Evil-ville thru one of those secondary airports and then to where...its dam scary and we know its THE weakest link, right now...yet the Euros drag their feet---I would NOT allow anything to fly into the USA that was not verified as SAFE by our TSA's methods. Anything less is beyond fool-hardy. But I digress, the good news, I think a new Caliph approaches. Al Baghdadi is likely dead or there is a bullet in a clip right now with his name on it.
CMAS- huh? You make zero sense. Read the FINRA #s again...and live with it. The fact is: daily Short% is dropping and that daily Short % is made up of two groups: 1- the very small # of actual borrowed shares and 2- the DM dumped shares.
The conclusion, while its early to see a real pattern, is the % of shares shorted is dropping. THAT is a very good thing and it makes real sense IF DM is leaving the stock. The fact that DM is out there selling shares every day, gives easy to cover to the shorts from the prior days. When DM is done, all shorting will be done.
Try to wrap your mind around this: ISC is about to approach a fairer valuation and begin to grow the SP from THAT point. A partner brings that kind of stability and growth to the stock. Here comes our partner now...