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Sand...I am speaking of the private shares (Divy)....
Cannot sell the private shares...typically no process to sell in place unless the company buys them back (good luck).
Sand...
This article does not relate to this situation as the spin off of ETC is a seperate private company. BIG difference as the paper they give us as divy's is worthless. At least until they go public if that every happens...Note: no real incentive to go public since they already stated that they have funding already in place.
BOD are the winners here. Not us.
They would benefit exponentially from the private in any undetermined form they desire.
They could take all the profits from the top in the form of 'consulting fees' just to mention one way and make a personal killing.
There are many ways they would benefit. You can see that they could make a $100 million and expense it out so the shareholders get nothing.
Essentially we have no say or control.
EXPH again would only benefit from outsourced work (at what predetermined fee???)...
Not good for EXPH.
We don't know all the details because its a 'spin off'
I don't believe EXPH will hold any shares, but we do not know this yet.
Agreed.
So far everything Spring is stating is true.
There may be some surprises today, but I doubt it.
Clearly, it appears that EXPH is not a holding company for ETC, but only a 'spin-off' ...and the public share holder with receive a small free dividend.
ETC will become nothing more then a 'business entity' to EXPH...
Another Lowes which will order products from EXPH assuming at a premium discount.
Look at the PPS...the general community sse this as a negative and not a positive.
Spring...you cannot convince most of the IHUB emotional posters as they cannot see past the fog.
Rock...I hope you are right...
Just do not like the POKER and the non-disclosure games going on.
I hope you agree that EXPH would have been stronger with ETC and the reason for the run up before was based upon the notion that EXPH financial future looked stronger short term...
Not sure that is true to the same degree today.
Taki...agreed.
All the profits in ETC can be voted by the new BOD as raises or bonuses and therefore showing ETC as unprofitable for years to come. Net effect...our shares are worthless.
Do not assume the free shares bring any value. You can not sell them or trade them...your grand children may not be able to trade them.
Bottom line. EXPH is less of a company without ETC being part of it.
Ok...but your private shares are worth nothing. How do you sell them???
The public company will be worth less with the spin off as the profits do not go back to EXPH. They can go into additional salaries and other non scrutinized purchases or expenses.
I am long with EXPH....
I do not like losing control based on trust alone as I feel the dollar often drives the end process.
Taki...Read 52049...
What is your opinion?
V...In my opinion you are dead wrong...
We are investors, not flippers or day traders.
When you lose complete control and accountability in a private (vs public)...it makes investors nervous. Clearly EXPH will be worth less with a private spin off.
I understand that you want to trust and believe JD on blind faith.
However, I do not know him and I only trust that he is more interested in growing his personal wealth quickly and to a lessor degree interested in yours.
You appear to be very pro in this spin off...
What are the benefits to all of us based upon your analysis?
You got it.
No good reason to spin off based upon what we know.
Right now we know we own 100% of a company with x profits.
After it goes private, it will be worth less with no accountability.
That is my concern.
The private shares are meanlingless unless they is a plan in place for shareholders to receive a timely ROI.
Not a real good business reason to take it private. See short interest below.
Short Interest Date Short Interest % Change Avg. Daily Share Volume Days to Cover Split New Issue
Nov 13, 2009 31,470 -82.53 5,702,318 1.00 No No
Oct 30, 2009 180,146 -67.23 15,813,367 1.00 No No
Oct 15, 2009 549,746 100.00 14,948,696 1.00 No No
Sept 30, 2009 0 -100.00 43,262,981 0.00 No No
So what is the benefit of going private?
Leave it alone and let the profits remain entirely within EXPH???
Rock...you are correct...
Not sure if that was SBB question.
Good points:
I believe you can transfer "public" assets to a private venture if the shareholders vote in approval.
The point I am making it that public companies do require more disclosure whereas private companies have many more ways of shifting profits, assets and capital.
What I really don't understand is, "Why is JD doing this?"...
Wouldn't the profits from ETC if left alone benefit EXPH more?
Great response...as this is also my concern.
I appreciate your explanation.
However with all due respect, we don't know enough about the relationship between ETC and EXPH.
ETC is going private and ownership can be JD and a seperate group.
EXPH would only benefit from the "outsourcing" of jobs.
You are correct if EXPH was a holding company for ETC...
We don't know that.
Last year, I lost quite bit of money in a private company that closed its doors and changed its name.
Thx Taki...
I and many of us investors are in full agreement with you.
The only exception would be if he creates EXPH as a holding company and ETC goes public from the onset.
Shares in ETC are NOT owned by EXPH, but JD and family.
Am I wrong here?
Exph is NOT a holding company for ETC...ETC is PRIVATE!
Thx Bucket...
Does it really only have two employees?
Financier:
I respected your opinions in the past.
I also to hold a good pos in EXPH...
I plan on jumping in this stock in the morning. It looks like it is only getting started. I will pick up 500k to begin.
what is your opinion here.
Not enough information to really understand what we are getting from ETC...If the stock is restricted shares, then we will not be able to sell them until they become unrestricted and at what value.
Essentially we are receiving ownership into a company without any real value identified until some time in the future.
Could be worth nothing if they close the business and change their name. There are less restrictions on a private corp and less requirement as to how they operate since there are no voting shareholders.
Note: If the revenues float back into EXPH, then EXPH will continue to prosper. If not, it will continue to prosper, but not as fast.
you don't ...they send you a piece of paper.
Like Taki said...hopefully the new private company do not restrict its shares, eitherwise you can not sell them...Even if they are not restricted, you will or can have some chanlenges to sell.
I am loading up on more shares irrespective.
Fivestar...
That is to be determined.
Please think with your head...not your heart.
Hope that is the case...
Any if so, its another contract.
Look...I am long and bought more shares today...but the news is not yet all known...We need more information...
Typically, if you are not an employee of a private company...you own shares forever or until the company goes public or sells.
Meanwhile the revunue expectation for EXPH goes down.
That is why the stock went down.
I am not giving up, but not enough information here.
Wrong...
The revenue and earning we expected from ETC now goes away.
Taki is right...This become a long play whereas with ETC it would have jumped much faster.
Will not increase assets or exposure, but on the contrary, delutes potential profits to EXPH since this is a private corp with basically not public rules. It could take the money and run and you (we) have not recourse.
Essentially nothing really happening here except the revenue that we thought we would gain with tne new product is going away.
That being said, I bought more shares today.
Point being, they didn't have too, unless it was stated that way in some 'private share' offering letter.
I have two experiences...
Several years ago made an investment into a private. Six months later they closed and opended under a different name.
They are fewer restrictions with what a private can do. We loose control.
The other experience is one that I have owned now for 5 years...Nothing happening except I have a piece of paper that says I own shares. Only way to get anything is if they sell.
Hope that is not the case here. As I am heavy into EXPH
Taki...hope you are right. I have been long since summer and got in around .005...watched it run up to .03+ and now watching it again.
Just picked up some .0071
Not true...
They don't have to buy them back...You just own them until the company is purchased or goes public.
That's not why it is going down.
Future revenues going into a 'private corp'....plan and simple.
Concerned???
What happens if the new company doen't go public?
I have shares in companies that are private and I cannot do anything with my shares unless it goes public (at what value) and or it get bought out.
Should I be concerned????
What happens if the new company doen't go public?
I have shares in companies that are private and I cannot do anything with my shares unless it goes public (at what value) and or it get bought out.
Should I be concerned????
Yep...mine was 58540.
Fourkids...
Whose Level II do you subscribe to.
I am looking to subscribe as I appreciate your insite to
"Dirty Dancing".