This was based on a lack of production.

To show the officers took the job seriously, they returned back restricted shares they own until certain goals are met.

That is not really a payroll deduction or moving their salaries to share compensation.

They have also already stated the shares are being reissued to the officers since they feel the goals set will be complete by the shareholders meeting. Or at least very soon.

They have deferred their salaries.

Executive Salary Deferrals ......1,018,996

As much as its a good thing that they did not bleed the company dry, it does way heavily on the stock price none the less.

The deferrals are a liability line item so it counts as debt owed by the company.

It appears a nail has been put in the coffin of the potential terminator movie for HHSE.

Cash spent over the last 3 quarters

Q3 - (131,109)
Q2 - (121,605)
Q1 - (22,359)

That is a whopping $275,000 wasted and gone. No license, no operations, no progress and nothing but huge debt and a huge OS.

I believe the best thing that can happen is for the people that have shown nothing but 100% failure for 3 years remain away from operations.

I have a hard time understanding how some could hope for failures and at the same time expect the stock price to go up.

GARRETTE IS A FAILURE
PARENT IS A FAILURE

THESE ARE FACTS IN WRITING AND NOT OPINION.

Let dredge step in and run operations on the ground. Let the men who wasted 275k in cash remain as far from operations as possible.

It is interesting that they were not very clear on the financing and I emailed the TA today only to find out they are now gagged.

Gagged TA's and penny stocks are a terrible mix when investing. Hopefully it is not as negative as it appears.

On a plus note, there has been just $650 in trades today. Certainly not enough for the company to be selling through an investment house.

Not sure why but I was the benefactor of the 100k share purchase/sell at .0152.

Had a GTC order there since yesterday. Think I might enter another one today.

Until the volume climbs again, I find it hard to buy at the ask. Its too easy for MM to take it down with small retail orders. The Bid remains rather thin so picking up cheap shares should not be all that hard.

Also HHSE has had a couple of solid PR's but it has generated little buying. Not sure what its going to take to get the volume back up again. Till then lets all take advantage of those that choose to unload. February is not far away and I feel confident we will be in a much better price range by then.

Good luck all.

Bid - .0014 - 10K
Ask - .0015 - 744K

Current price .0014
Volume 417,670

The lack of disclosure is ominous to say the least. Had they had a nice arrangement with a good investment house, I think it would have been listed.

150k is a good start but not nearly what the company needs. It only keeps the doors open based on previous filings.

My guess is the vast majority is PP shares. Again its but a guess.

Also considering the current OS of likely 2.1b by now, the PP shares will have little impact on and OS this large. Say 150m shares possible or just 7% dilution. That of course is if the funding was PP shares.

Absolutely not.

Netflix partners for the movies through distribution pacts and not straight up buyouts. If Netlix owned all the content than they would be largest movie company by leaps and bounds.

Also of the movies, HHSE will not own the vast majority of them. They are planning a model similar to Netflix in that its a partnership of sorts. The movies will be owned by other companies but HHSE will get a piece of all revenue earned when someone watches them.

Issue here is the lack of subscription based viewing. Most movies are B or lower. It will not generate much interest unless its a low monthly subscription for a large library. At least that is what I believe. 4k is a novelty more than a rush to see. I highly doubt you will see much of a difference between the 4k set top box and the standard ROKU. I also doubt many will care to pay the difference on B level movies. 100m Blockbusters maybe but not B level.

NTEK's box means little to nothing for HHSE. The ROKU is 10000x what ntek will ever be and that is what is important here. HHSE is already available on millions of ROKU Boxes via app download. Who cares about the potential NTEK couple of boxes over the next year. I care about the millions.

Unfortunately the PR was not very good.

There are many issues here and the PR is simply a band aid currently.

The company went through 131k operating expenses last Q. If they have received 150k in funding, it barely keeps the doors open and leaves but scraps left for funding onsite operations.

Last Q

Net cash provided by financing activities 138,500

Net cash used by operating activities (131,109 )


150k is barely a change from Q3. Wow is anyone so happy they achieved a whopping 10% increase in 1 quarters financing to remain solvent. Based on last Q's numbers, they have 19k to fund onsite operations. Oh wait they are all flying all over the world....So much for the 19k...lol

SNEY needs 500k not 150k. Of course its a good start if lots more is planned.

Lastly what is the financing. Is it 1k loan and 149k in private placements? Are we about to see a 150m OS increase with a 150m Warrant issuance?

Personally I feel this PR was destructive and not positive.

To be honest I am not sure how you can question the post like you did.

How does their terms change the fact that selling at a lower price, lowers your return.

The bid is typically weak on this stock so not only is the bid lower than the ask(hence lower return) but its more likely to collapse than the ask.

Also most terms are relatively the same. The investment house get the shares at a discount to market for a certain amount of capital. That investment house then sells the shares. As long as Graham does not get 1m worth or greater, they can receive unregistered shares and with no restriction on selling. They simply register the shares and boom they hit the float.

Check Rule 504 of Regulation D.

You need to remember this is accounting and not simply cash in a bank. HHSE is not running a lemonade stand that has simple accounting.

As money comes in it goes right back out. That is the nature of the beast for small caps. Do not expect a cash balance for a long time. HHSE has over 3m in debt to pay over the legal issues. They also have cash requirements that are not perfectly set to each check received.

Its a rare thing for a company of this size to bank enough money to see growth and cash flow fall in line. Based on their projections their growth rate on revenue will increase much larger than their profits. This paints a clear picture to why the profits are not enough to stop diluting.

I believe its Graham who is potentially capping this run. Graham would probably not want to dump at the bid. It would greatly reduce his return on investment.

A smart investment house would look for volume than stack the ask. This would maximize return. This is also what appears to be happening. On a plus note it means there is a point were this will end and the uptrend can continue. If only we knew how many new shares are still waiting to hit the market.


Also I do not feel the income is nearly enough to stop diluting. Once you consider the millions in debt from lawsuits, you can see how cash is not a luxury that HHSE will have for many more quarters. Its best to strengthen the balance sheet whenever possible. HHSE will not have a good size bank account for years. Graham is not going anywhere for a while unfortunately.

This is not all negative though, as the balance sheet strengthens so should the stock price. Of course that would require sales growth as well. Also share price increases will be capped based on how much HHSE continues to dilute.

One last thing to consider. Sept. 30th the OS was 563m and today its 574m so HHSE is in fact diluting and not by a tiny amount. They seem to consistently diluting each quarter. With the low volume at which the stock trades, its more than enough to stop all uptrends. There is no Manipulator other than Eric himself(no offense to Eric since he is doing the right thing). We could really use a nice 3 months of no new shares. We have seen 16m share dilution in Q1, 45m share dilution in Q2, 13m share dilution in Q3, and currently 11m share dilution in Q4. So far for the year we have seen the OS go from 490m to 574m. Hardly a company not diluting but also not dramatic dilution. At the current rate we should end the year just under 90m share dilution.

This could help explain some of the odd activity on the Ask.

If the OS has climbed around 4m this month and the float has also increased around the same amount. It would be understandable that many of the hidden shares at the ask could be those shares being sold to market.

Its tough to make headway with an uptrend if new shares are hitting the market.

Of course I do not know that is the case but is logical to expect it.

Hopefully December will have less shares opening up. 4m is not a huge amount except when you consider the average monthly volume is about 17m. That could mean nearly 1/4 of the shares are new for the month.

JMHO of course

Could you supply the OS number? Did the OS increase?

In the end you are both right.

The report is accurate and can be taken as its written. However 3 days after the report, the numbers change dramatically.

The report does not designate short initiated trades but rather how many trades remain short at close of market. I see little value of the report other than it shows a good indication of the buy sell ratio. Since any sell initiated trade is short until cleared to a buy, a high daily short interest indicates large selling. Now a buy could also have a short if the MM did not have a sell to clear the trade but that is not as common.

The best way to consider the reports are, OTC Short report is a daily tally prior to clearing and things like the Nasdaq and short squeeze reports are what shorts remain in the stock after all trades have cleared.

In other words, there is no real short interest in this stock after clearing.

My guess is that the stock tends to trade thin. For that reason any surge in volume creates clearing issues. The MM remain short against the stock until they clear all transactions. This is not nefarious but rather how the stock market works.

RSI has broken 70 on the daily chart. The last time it did that the stock doubled over the next 6 trading days.

Could this indicate a .04 is in the cards by early December?

What a great time to hold shares.

Good Luck all

LOL I have been wondering the same thing.

I doubt it actually has much influence but I like their persistence.


On a plus note, LII shows just 160k shares between here and 2 cents. Not that more cannot show up but its nice to see the Ask rather thin.

I feel we need a close above .0175 to show the chart as breaking out.

I am sorry but I absolutely disagree with that statement.

HHSE is about the revenue and profit. I do not believe the stock will hold against a non tangible asset value.

Also HHSE is a rather dynamic company. Take a look at last years balance sheet and now this years. Would you have really been able to project the changes in the balance sheet.

Again I recommend stripping out non tangible assets when attempting to put a stock value based on assets. Of course we all have our opinions but I only consider what you are saying when looking at blue chips that are rather consistent.

You may have misunderstood the post.

There is no real push back. HHSE has debt and the 2012 audit creates no value. Since 2014 is required regardless of whether the 2012 is produced or not, it would be a smart business decision to conserve cash and put the money toward other items.

A release of the 2013 audit prior to the shareholder meeting should be more than sufficient with an update that the 2014 would be released on time the 10K.

HHSE is not a cash strong company and proper expense management is the only way we see a stock price increase. The balance sheet is not over attractive based on current assets to current liabilities.

Either way, the 2013 audit release would be all that is needed to confirm the uplist and end to the nightmare as you call it. 2014 just needs to be on time.

JMHO

Once you strip out the library our assets are not very large.

Though the library clearly has value, it is not a tangible asset. I tend to discount such assets on balance sheets. Its similar to intellectual property rights and value.

Has Hannover House finally hit its stride?

I have to admit I am excited and its been a long time since HHSE excited me. I was even a buyer yesterday. Adding a little more to my stash appeared to be a very smart move at this point.

The 8K yesterday was a shot across the bow....A signal to Edgar...Wake up we are coming.

The audit announcement. Sure its same old same old with regards to its coming but since we have clear signs of work being performed, I think they are without question the closest they have ever been. Next comes the date. I said back in August that they should put the audit on the back burner and make a push for 2013 2014 release. The 2012 year is just too irrelevant to matter and monies are better spent on 2014. I have a feeling they will talk with the new consulting company and if there is any considerable cost or man hours involved in 2012 still, it will be off the table.

Look to the future and get out of the past with regards to the audit. February-March is close enough and its not needed before year end.

VODWIZ.....Still feel it will net little but we will see. I do however feel it diversifies the company so that is the positive I take from it. Also if they can get any business off it, the margins are fantastic.

Slate of items over the coming months are encouraging. Yes we all know HHSE delays things but in the end its the quarterly numbers that matter. Any delay within the quarter is fine but when it gets delayed into the next quarter, well that tends to hurt the stock price. The January hard cover release of the book was a little disappointing but its more bad timing based on dates than an issue over delays. Q4 looks to wrap up rather nice and act as a spring board for 2014 growth.

Last item is overall annual numbers. Yes Q4 is but a projection but if they come close it will be nice to see growth on the top line and bottom line. After a drop in revenue and profit during Q1 and Q2 I felt this year was going to be really bad but they pulled it together in Q3 and Q4. Based on projects we are looking at 42% growth in Revenue and 6% growth in profit. Yes the profit growth is not very good but considering the first 2 quarters of the year, I find it still very impressive.

As for Price points, well I personally feel any talk of 10 cents is extremely premature. I just cannot see how we reach 10 cents in the next couple of years. We should all look at the 3 cent level currently. The stock has struggled to maintain a 3 cent level over the last 2 years. Holding there as a consolidation for the next move could allow the stock to see the 4 or 5 cent level. But even 4 or 5 cents is a little lofty considering the current condition. The company still has a long road ahead and bottom line growth along with Debt control will be the story for 2014. If both could be brought in line within 2014, than I certainly would not rule out 4-5 cents before 2015.

The stock is very bullish on the charts and closing above both the 50 day as well as the 200 day moving average is an encouraging sign for the current uptrend. We need to break through .0175 to show a break out on the chart and I think that is very realistic

Just my two cents.......

No Change in the 10Q....Simply interactive data submission.

I am afraid you are very inaccurate with your post.

Mutual Funds have their own charters. The buy in prices are set by the charter and not a broad based rule.

The 5 dollar figure is used based on 2 main criteria. Anything under 5 dollars tends to be considered a penny stock and listing rules require 5 dollars for most exchanges.

Considering they listing rules have dropped their prices and continued listings are all the way down to 1 dollar currently, most charters no longer apply to the 5 dollar rule.

Now of course there are some that will not change the old habits but most do not abide by the 5 dollar rule anymore. Most however do not buy OTC stocks regardless of price. OTC is considered very high risk and outside nearly all charters still. Mutual Funds tend to only invest in listed companies.

So with that said, FNMA needs to get off the OTC before mutual funds will buy them based on charters.

Mutual funds that purchase OTC stocks do not have a minimum buy in price.

The key to this stock is the fact its OTC so there is no minimum price for buying. The fact that its OTC is what keeps nearly all funds away from it.

Those are uncleared trades. They will be booked as shorts until they are cleared within 3 days.

These reports are grossly inaccurate and should not be used at face value.

Nearly every sales is a short until it clears.

Very true.

I actually find the loan a better solution and shareholder friendly.

The only issue is with the terms of the loan. Can SNEY meet the terms?

Of course cash flow is the answer so Dredge you need to be the SNEY angel on the ground.

Believe it or not I am actually considering buying back in. I continue to feel the current price is a near term high and it should fall considerable but if it falls, I am looking for a few million shares.

Good Luck all

Unfortunately the company is no longer solvent.

0 operations and no current intent for future operations.


The stock does not have any true value beyond par .0001

The team folded up show and left.

The problem here is that it appears the proposal leaves the common shareholders with the government GSE.

If Berkowitz can get the preferred to Par, than they appear to be the better buy currently I think.

Its tough to put a valuation on the commons right now.

I do not think that's correct.

The deal guarantee's the Preferred shares but not the commons.

Its does appear the commons get a piece of the break by remaining with the GSE but not sure exactly the what part of the new company the commons get.

I have been reading lots of articles on this but have never seen the exact write up of course so I could be off on this.

Its possible a minor correction could occur here. The run was swift. As everyone knows that does not mean the uptrend is over.

I continue to look at the buyout plan and still cannot see any guarantee to the commons. This could be what puts a bit of a wall in front of the stock until its ironed out. Though the buyout states that common holders get a piece of the government holdings its not very clear about the new spin off outside of a potential opportunity to buy into the new business.

With that said there is certainly value in the balance sheet and remaining within the GSE if the spin off does not include the commons. The question is how much profits are left if FNMA are no longer buying new loans and getting fees.


This is such a crazy time in this stock and without question, very exciting. Hopefully Berkowitz will get a little more clear on his plans for the commons but if preferred shares are selling off a little and he has guaranteed the preferred will be brought over on the buyout, I think the commons could be a bit rocky for a little while.

JMHO

Good luck all.

Short but sweet comparison and QoQ comparison.



1,926,655,315 as of June 30, 2013
2,056,055,314 as of September 30, 2013

130 million OS increase QoQ

Total Current Assets 847 - Q2
Total Current Assets 1,342 - Q3

Increase of 505 QoQ

Total Current Liabilities 1,209,994 - Q2
Total Current Liabilities 1,185,155 - Q3

Liabilities decreased by 24,839 QoQ

Did not see that coming but it would explain the 130 million OS increase.

Also did not see any wording about defaults on Liabilities. That is rather huge.

Current Market Cap is 2.68 Million. Personal opinion is that its too high considering nearly no tangible assets and tons of debt. Once revenue starts it can be relooked at but currently 40%-50% over priced here.

One last note, if revenue breaks 1 million for 2014, the stock could trade 3-5 times sales and reach .002 by the end of 2014 I feel.

Very possible

Info on Asher pay off...

Do not count on that unless you leave the term weeks as loose as indefinite.

Though they state 2013-2014, there is no way it would be realistic to expect 2013 cash flow. That is but a pipe dream and one that has been a carrot in front of investors for 3 straight years.

Odds are better for early to mid 2014 based on who and what this company is. An enormous amount of obstacles to overcome for 2013.

Here is the info on Dredge

What Risk posted never stated that.

I did not look for the whole post so I do not recall if he stated that.

In the end its all opinions here. We rarely know the future as fact. A person guessing and stating something like that is clearly stating an opinion since they do not work for Asher.

The point being such posts will occur on numerous occasions.

If I start posting they will show no revenue in the Q and suddenly 10k shows up, do I really need to care about that?

I also felt Asher could be behind some of the big block selling a few weeks ago. The dates and volume clearly pointed to that direction.

That is an awful lot of words for a simple question...WOW

He clearly used deductive reasoning based on the spread announced in the SEC filing.

With investing we are all fortune tellers. We do not invest in companies that we hope will never change one bit. So one must use reasoning to deduce a forward expectation.

Within his post were questions and albeit liberties on his reasoning. It was a fair post but with a little liberty like usury and loan shark.

Like you owe no apologies when you say the stock is going higher and it doesn't, he owes no apologies or admission of guilt for a wrongful expectation.

I think he needs to stop stating you mislead others on SNEY just like you are incorrect that he needs to publicly admit he was wrong.

This is a blog site full of opinions, if everyone must post corrections and admissions of guilt or wrong posts, well it would be a nightmare......

To be fair to Scuba his statements are pretty solid.

The filings are clear proof his post is not that far off.

The fact that Asher did not sell their shares is not relevant to his post. It was posted prior to the PR announcing SNEY paid off Asher.....Which in of itself is very questionable since it never clarified how SNEY which is near bankruptcy came up with the funds. .................Very questionable.......Hopefully the Q3 report will shed light on the very bizarre act.

Though the thought of usury or loan sharks is not really appropriate, those that understand the SEC filings understood his post.