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That's a very good question. If I recall correctly, the preferred's only kick in in the event of a hostile takeover. ETIM has so far not engaged in any duplicitous actions that I am aware of. That they used the 504 financing in lieu of financing through convertible debts shows me that they are aware of the perils of that type of financing and will minimize or totally avoid the use of it. Its good to be aware of this issue, but there is no real way to quantify or qualify it (as that ratio has not been made public as far as I know) with respect to making a judgement about whether to invest in ETIM or not. JMHO.
"...manufacturing thousands (MBL urns selling @ $699 ea.)and can't keep up with demand..."
"...selling 2000 to 2500 urns each quarter..."
ummmm........I'm buying more shares next week!!
weeeeeeeeeeeeeeeeeeeeeeeeee!!!
Just hit the ask for another 560k+ shares. Gotta go with my gut.
No, its more like 20,667 vs. 20,000. If you're gonna make analogies, try to keep it accurate.
Even better! Thanks for keeping us aware dancy!
L2 stack is looking very very nice. Granted, the stuff I see is 20 minutes delayed, but it looked as if the ask was going to drop from .31 this morning. Now it looks like it's going up.
http://www.allstocks.com/html/free_level_2_pink_sheet_stock_.html
I'm guessing that the first P.O. also released Labeem to make the tooling. So my 4-6 weeks include tooling and production runs. I admit, its just my guess. But I like to make edumacated guesses. That's how my brain works.
Did you see on the last AFs that at end of March, ETIM had sales of $165k? And in the notes, they didn't even give a PO to Labeem until the end of January. Assuming 4-6 weeks for delivery of the goods from Labeem to ETIM, I've attributed the entire sales amount to 2 weeks to 4 weeks period. In other words, a conservative estimate is $165k/month. If ETIM didn't make $2mil this year, they should be pretty darn close.
This L2 stack is even more proof that the seller is done. Just gotta break thru this wall of flippers. Also, I expect that people who have been sitting and waiting for a bottom will begin coming aboard again.
Whew, busy day today at work.
I just wanted to share my thoughts of why I decided to buy more shares today. First there was the dump of the 10mil shares all at once. Not a large amount by any means, but significant relative to the average number of shares that had been trading. I saw that as a possible signal that the seller was done. Second, the trading subsequent to the dump reinforced my first reason. Hopefully, the seller isn't just goofing around and that this isn't his way of having fun by way of psychological torture. Third, my correspondences with Tony have been very positive and seemingly more urgent as of late with respect to forthcoming news and updates from the company. Of course, this urgency could be a result of the barrage of inquiries he's been answering from all of us iHubbers.
Lastly, I think ETIM is undervalued. Current market cap is around 12 million? I'm assuming that operating income is 8% of gross income. Gross income is ~35% of sales (from the last AF). Assuming $10mil in sales next year, 8% or 35% of 10mil is $280K which translates into a PE of 43, which is acceptable for a growing company, but could be higher -- Google IPO'd at a PE of 90 and Alibaba recently IPO'd at 90x earnings as well. We all know how Google has been performing and Alibaba PPS ran up to 270x PE on the first trading day. I know, not apples to apples. I've left out one time costs such as licensing fees, tooling, etc.
I know that with pinkies, assumptions are worth very very little. But I believe, as many here do, that ETIM isn't a typical pinky.
If I am wrong about my timing, then I will be looking for another bottom to add more shares. Good luck everyone!
Well, I've done my part for today. Ate up a little over 1m shares at .0031.
Wow, looks like that 10 mil drop a couple days ago might really have been a sign that the seller is done. Then all of they buying by stockwiser (very nice buys btw) soaked up all the panickers/flippers. This is similar to the end of the 504 situation, except no PR since it wasn't the company selling. An up close on strong volume would be a very good sign. Getting one of the expected PR updates from the company would be a nice catalyst as well and perfectly timed. Good luck all!
New filing from the Baldwin's, but the info looks the same.
http://www.sec.gov/Archives/edgar/data/1021258/000119312507246444/d13fhr.txt
Chart or not, I see today's trading as a definite sign that we are at a potential turning point. If we get a PR tomorrow, it would be just at the right time.
Lol! Nice try. The company wouldn't do that unless they had the revs and income to support an R/S that would be needed to bring the PPS compliant with uplisting requirements to the big boards. Oh, there is an R/S coming for sure. But not for at least another 1-2 years and if growth meets projections, none of us will have to fear the R/S.
Just trying to prepare everyone for potential bad news that might be mixed in with the good. Hopefully keep some of us here from turning into headless chickens.
That is why I believe we are being manipulated. Too much good news coming, though I fear that there will be some disappointing news coupled with the good news. Some disappointing news that may or may not come out are:
1 - the company had to sell some shares into the open market to raise funds to pay debts that came/will be coming current.
2 - the company had to take a high interest bearing loan and/or had to abdicate to private financing along with bad convertible warrants.
3 - the company was not able to come to an agreement with Labeem and thus the need to raise capital by any means necessary
I have the same feeling after my latest correspondences with Tony.
In my civil correspondences with Tony, he assures me that ETIM will be releasing PRs about several significant developments, including filing the paperwork for the uplist, in the very near future. Knowing this, I would be inclined to load up anywhere in the 2s. Could be the naughty MMs know this too and are trying harder than they have been to drive the PPS lower so they can have as many shares on ask up to...say .0055 to suck up? Of course, given the past performance of the PPS on really good news, who knows what will happen. JMHO.
I agree with your assessment.
I've done mental exercises and studied charts trying to figure out whether a trade is a buy or a sell. The obvious ones are where you see a trade which causes an uptick or downtick. Then there are all those trades that don't move the PPS. There is no telling whether these are buys or sells. You might get a clue if you kept track of the Level 2 stack and monitored how each and every trade throughout the day affects the stack. But there is no way for accounting for people removing their bids/ask. And charts, especially on pinkys, are too easily manipulated.
In other words, you are entitled to your interpretation and I am sure that is all you are offering. Just my two cents on you and Bee's conversation. Hope you don't take it poorly.
Keep your hopes up everyone. I'm sure all of you are paying close attention to the PPS, but I'd suggest watching it even more carefully in the next couple/few days. I'm hoping that the selling is done and if it is, we may get movement like we did when ETIM announced that the 504 financing was complete. Keeping my fingers crossed.
I completely agree.
Bee,
I found a discrepancy between what the AFs stated and what pinksheets stated:
AFs said Diamics was the previous entity and pinksheets states that it was International Testing Service.
I subsequently found out that the progression was from International Testing to Diamics to ETIM.
Q has a point. I can think of two scenarios shorting scenarios, both or neither of which might apply to us:
1 - Some investor has warrants to buy shares at a low PPS and the period for exercising those warrants have come due. So they would engage in shorting those shares they have warrants to, thereby driving the PPS down. They could then cover their short position by exercising the warrants. At the same time, they could spend the money the made shorting buying up more shares at the low PPS knowing that the PPS will recover.
2 - ETIM has some loans coming due soon (see AFs). They have stated in the AFs that they would sell shares into the open market to raise funds if necessary. So, they could be selling shares to raise those funds, which has the benefit of driving the PPS lower for the company and executive buybacks.
I'm sure there are others, but those are the two that came to mind.
The other thing to note is that the sudden drop of the 10 mil shares could be a signal that the selling is done! Wouldn't that be nice?
I don't know if this is old information, but I felt it was a good refresher of potentially good news....ETIM's need to raise cash by selling shares on the open market should be minimal (or is at least significantly reduced) because of their agreement with Labeem International, LLC. (see note 10 of the AFs for 2006) **NOTE: According to the last sentence in note 9, there is no guarantee that Labeem International, LLC and ETIM has reached such an agreement. THAT THEY DID IS MY ASSUMPTION.** I wonder what other urn products Labeem will be supplying for the next 2 years? We know that the dog urns are coming from China. It could be that the rest will come from Labeem until the end of the agreement at which time ETIM will be healthy enough financially to either get better terms for their business with Labeem or find a cheaper supplier elsewhere. Another little gem in here is that Labeem felt confident enough in ETIM's vision to spend their money up front and take on all that risk for 8.5m warrants priced at .0075. I'll let you dwell on what that signifies about Labeems regard towards ETIM.
More data I found interesting was that ETIM spent $369,900 worth of inventory made up of MLB and Vatican urns at the end of January. There's no mention of when this invetory was received by ETIM, but we do know that as of the end of March 2007, the company had sales revenue of $165,530 with COGS of $107,714. If we assume 6 weeks for delivery ARO, then that would place the product in ETIM's warehouse in the middle of March. We already know that the company is now projecting sales of around 2 mil, and given the figures discussed above, I can see how they had come to that number. $2mil sales revenue for 2007 is $250k per month from April thru December. I have no idea whether the funerary business is cyclic or not, but if we assume its steady, then I believe 2mil to be the low end projection. I say low end because ETIM started selling doggy urns sometime in the 3rd quarter. Going back to the sales numbers, the Gross profit margin is 35%. Not bad. I'm too tired to do it now, but perhaps one of you will be motivated enough to make some educated guesses on what the variable and non-variable costs are to try to determine what amount of sales will be needed for ETIM to reach break even? All the information is there to make a decent educated guess.
Keep your heads up folks! I really do feel that ETIM will prove to be a very good investment.
I'm unable to find any information that corroborates this post. Robert LeRea does not come up on anything related to ETIM on the SEC website. Can anyone clear this up for me? TIA.
I must've missed that discussion about the "ONE large holder that has filed to sell 58m shares". Can anyone provide the filing? I searched the SEC website and didn't find anything.
Ok, so we're looking at revs around 2 mil instead of 3-4 mil. So that, to me, explains the waning PPS. When we were expecting 3-4 mil, the PPS held around .005. So doing simple ratios, we should settle between .003 and .004. The market is fairly pricing ETIM shares atm, until more information is known such as next years projections. Once we have that information, I believe the PPS will adjust to those expectations.
Are you asking yourself, "If the expectation is that revs will be that much more next year, then why isn't the PPS reflecting that expectation?" Well, in pinkies, nothing is ever guaranteed and that might be a factor in the current pricing. JMHO.
Thanks Bee. Who knows. Perhaps the numbers that do get reported will be sufficient to make those that are selling to realize that they've oversold and the PPS doesn't even dip at all and instead rebounds since everyone will have more information to base their investments on.
Are you positive you want to hear it considering it might be disappointing relative to the earlier projection of 3-4 mil? Think about it -- ETIM does not have a history of delivering on its promises ON TIME. Who's to say their accuracy with quantifying is any better?
My advice is for everyone to prepare themselves for disappointing numbers this year. I firmly believe that is what the large shareholders have done and a few of them are selling some shares and getting their money together to scoop up more shares at the dip. Whatever happens, 2 to 3 or 4 months from now, I saw we're at minimum back to .005s.
Thank God the day is over. Can't go any lower today. This sucks!
Oh, I believe there has been some buying back. The company can only buy back what they budgeted, and considering their financial situation, I think they are done. Same goes for the execs.
I've prepared my mind for the rev projection to be closer to 1.5 mil, but with accelerating revs next year to...um...10 mil.
This is depressing. It doesn't look like dilution from the company since this is a slow pulling of the teeth. So I have to assume its someone with a lot of shares wanting to reduce their holdings. If this goes below .003, I have to assume its some nasty MMs playing their games.
Well said Heppie. I've read 5's posts. He is definitely not a long -- he's out to maximize his profit and gtfo. Nothing wrong with that. But no need to bash you over his own frustration.
Looks to me that the MMs want this to get to .0003 so they can load up. Perhaps they've promised ETIM some money if they hold off releasing any news until the MMs are done playing their games?
Nah, they (ETIM) is probably holding off on any PRs until they and their execs are done with their buyback.
I'm of the opinion that ETIM is well below their $3.1 mil(?) revenue projection for this year. If they meet it, I will be pleasantly shocked considering what their revenue was according to their last financials.
I guess I'm not the only one thinking there is NSS going on here.
Does anyone subscribe to buyins.net? If so, I would appreciate it if you could look into whether or not there are any NSS with ETIM lately. I think its the MMs working for/with some nasty hedge fund trying to take us down. JMHO.
If you read the Notes in the Audited Financials, you would know that the shell company that ETIM RM'd into is Diamics, Inc.
"Eternal Image was incorporated January 31, 2006 in the State of Delaware, while Diamics, Inc., its predecessor was incorporated November 8, 2005. On February 15, 2006 Eternal Image Inc. acquired all of the shares of Diamics, Inc. As part of the reverse merger, all existing shares, options and warrants of Diamics converted into securities of Eternal Image on a 100 to 1 basis..."
ITSG is not the old shell. It used to own the CUSIP number. The people that assign the CUSIP number recycled ITSG's number and assigned it to ETIM. Apparently, there is some disconnect between the CUSIP people and ITSG.
Of course, its possible that DB got the bulk of his shares from the RM. I dunno. Just my 2 cents.
I think we get news about the latest financials and sales projections before the week is over.