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well.. they don't have any patents
for a start. they have pending patents
as you, some patents are for devices with many components
the patent i have seen if for the combination of the flapper
device that uses air current to decide when to turn the pump on and off with the concept of spraying the water
just spraying the water is not a patent that someone has or will get
some patents are on individual components
and a nozzle that makes fine mist
is not an invention limited by patent rights currently
consequently, we see it is no problem for cool mist or whatever their name is to save a bazillion dollars worth of energy
you don't have to be an expert in patent law to understand that GDGI does not own the concept of mist cooling, so its no harm no foul for mr mistypants to do their mist cooling of massive dry cooling towers. i am betting anybody with sales engineering skills could do that. i dont think there are any patents required.
they have patents pending on mist cooling systems with unique features: the residential one with the fan activated shutoff and the commercial one with with the wired in to the electric system pump switch and i have not seen that patent so i am not sure what they are claiming is unique about it. and they also have the very powerful patent moat in the form of the patented (and possibly versatible multi appliication) chemical in the filter that causes calcium to not scale but rather fall off in a powder.
i cant understand this, but maybe one or two people on this board
can tell me
on cash flow statement
why the five million downward adjustment to net income
(when all other components of income this and prior year are an order of magnitude smaller)?
on balance sheet stockholder equity
how does this fit in with the approximately 5 million dollar reduction in retained earnings?
and why is their operating expense $6 million dollars?
apparently it includes the 5.5 million $ in stock compensation reported on the annual report page 28. which at last years prices would be a lot. 50 million shares?
who got that compensation and why? they dont have a big staff. they have the principals and a secretary or something is what i heard.
i guess that is that amount i saw before when i was noticing they sold millions (was it 70 million?) of shares for $50 grand?
and it shows up on the balance sheet as $5.5 million for tax purposes or something?
http://www.otcmarkets.com/financialReportViewer?symbol=GDGI&id=99097
http://www.otcmarkets.com/stock/GDGI/financials#
i think i have failed in due diligence by not already understanding these things, not that i am alarmed
david levy was already under indictment
but i wonder if his panamanian money launderer made off with the shares anyway
regardless, the SEC went over GDGI managements possible culpubabilty int his whole deal and they have been cleared of complicty by the verdict
and if there was something wrong about what happened with that 5 million, i think the SEC would have stumbled on that. is that not reasonable to think? its pretty striking on the ol balance sheet and they were investigating a multi year manipulation scheme, so in a sense, i would say this company has been extra-vetted, for a penny stock.
current debt reduced from 3 million to 2 million
http://www.otcmarkets.com/stock/GDGI/financials#
says total debt is 3 million
Notes payable, EZ English, Inc. 2,252,986
from annual report
page 32
Levy conviction includes GDGI debt exoneration - link to DOJ
i dont see the debt specifically removed in this particular DOJ document, but no doubt if their services constituted a crime, that can go off the balance sheet
http://www.justice.gov/usao/nys/pressreleases/March13/DavidandDonnaLevyVerdictsPR.php
"DAVID LEVY was also convicted of securities fraud in connection with his efforts to orchestrate a multi-year pump and dump scheme involving a third company that he helped take public: Greenway Design Group, Inc., which has traded under symbol “GDGI.” Evidence presented at trial demonstrated that DAVID LEVY awarded himself secret shares in GDGI in the name of a Panamanian shell company maintained by a money launderer"
this is the main reason i think they are shy of touts.
sweet action!
i only saw the synopsis on the doj site
that mentioned the other stocks
hmm. to me the question is why would they use cool and save. they dont have patents that apply the issue of spraying mist into a dry cooling tower.
i think they didn't so much try to cut cool and save out of the industrial cooling tower deal as be an independent company with outdoor commercial retail cooling projects and manufacturing capability with the potential to do industrial deals that GDGI and their patents had nothing to do with.
it is a different market segment than misting AC units. the filter patents are not needed for that cooling tower misting.
the patent for the sit on top system is not that big of a deal these days. its more the patents for the commercial unit where the value is.
well, a misting nozzle is not a GDGI patent.
those have been around for a long time
their key patent is for the chemical that makes the scale fall off
maybe they have a patent on the switch that turns the mist pump off when the compressor shuts off too
but just spraying mist out of a nozzle into a dry cooling tower is not something anyone has a patent on i am pretty sure
i was working on the national level to support local conservationist efforts in the arid west to ban outdoor mist cooling in the 1980s, so its not like misting nozzles are new.
that was priced in though to a great extent
most everyone who is a long already thought that debt was going away for just about sure right? and i dont think a lot of people were sitting on the side lines are going to jump in just because of this.
on the other hand its so thinkly traded and so much in the hand of confident longs that i wont take much to move it
if somebody is trying to buy 2 million tomorrow we could see a new short term high
and i guess the chartists think its headed up for what it's worth
yes its about 2/3s. it is NOT gone. but it will go easily.
i think the levys were not convicted of defrauding GDGI. these people were convicted of a different crime. as far as i can see, the court's ruling does not say that all debts owed by all entities for all services to the levys are invalid.
however, all GDGI has to do is pony up a some money for (a somewhat embarrassing) civil lawsuit to request they be absolved of the debt on the grounds that levy's services to them were also fradulent. the levy's are unlikely to prevail in a civil suit to asser their right to collect the debt from behind bars.
fortunately, their cash burn is way less than 2 million a year.
they do have financial statements. but my point was not that it could not have been spent on debt service or legal fees or whatever, but that it was never booked as revenue in the first place. 4 million did not come in and go out. it never came in. read the 10ks and you will see this is clearly so.
steve's explanation makes a lot of sense. but it begs the question "if they already sold 200, why have they been so slow to sell any since they quit the mr mist guy partnership."
also, thank god, no way is the money all in the install. that piece of crap they are selling for $2,400 at mr misty or whatever doesnt have the filter system. its just going to scale up your fins and ruin your ac unless you have water with naturally zero mineral levels.
anybody got a theory about the missing $4million?
there you go.
catch them bargains
man we got some long longs around
nobody even cares if 4 million dollars seems to be missing
from a company that has about zero dollars
45k shares on the bid before .003
200commercial units already sold x$20k=$4million. where is the money?
the website says they already have sold 200 commercial units, unless it just says it "installed" them, and if they did not sell them, i dont think they built them either. maybe they installed one commercial unit 200 times in 200 demos.
but if they really sold 200 commercial units already, their annual and quarterly reports should show some income, unless they dont sell for anything near the price we have been thinking.
they declared a few hundred thousand in two years right? like 400 or 500K or something? like 1/10th of what 200 commercial units should bring in.
what do you think? do you have a good explanation?
apparently you do! wait a sec...
amen to that part about impatience!
it is gonna ruin our economy
ceos are forced to focus on quarterly results instead of long term results. our fortune 500 companies these days have a shockingly short lifespan.
re discussing potential problems with the stock and then buying it
i dont see it as scheme to lower the share price
i see it as frank and open discussion of the merits and drawbacks of the stock
as contrasted with a scheme to increase the share price by never talking about any reservations one might have
armed with my thoughts, a more risk averse investor may choose to sell me some shares and from the point of view of our risk profiles, we both benefit, although in the long run, GDGI longs will get to say i told you so, i reckon
only 45k shares on the bid before .003
would you like the opportunity to buy more shares at a lower price?
i can think of a reason
that people might want to sell
that has not been discussed here yet.
i feel a little disingenuous
saying all these nice things about their long term potential
and leaving out a glaring warning signal
that i choose to accept as part of the risk on this stock,
but that might cause others to pause.
so if they get a big sale, how much profit is that?
we are still waiting for the big new deal i think
i doubt the royalties in asia deal was the big new deal
i am hoping for a sale to soriana or one of those banks or some new large buyer, like 100 commerical units or something
anybody have any thoughts on what the revenue and profits from such a sale, say 100 commerical units, would be? any thoughts on what sort of stock price that woudl justify?
still though, i think we can all agree it was probably was a good choice, given their limitations, right? and angle's point that someone might notice i was criticizing the company for poor communication and focus on that rather than the savings on tariffs that some people might not have been thinking about is a reasonable one.
alright then
"failed to highlight" the more substantial savings
not everyone is going to realize that they are saving a lot in tariffs when they say they have reduced shipping costs
i agree it is not any kind of mark against the stock
that they said shipping instead of tariff
it just hid the more substantial savings
"Also, there is greater incentive for the nearby manufacture to PUSH the product, since they will be reaping much of the reward"
excellent point that photon ltd, a company so dominant that you cant' even find it on the web will have an extra incentive to push the product.
just think, if they could negotiate to give away 100% of the profits, there would be huge incentives for people to push the product!
still, their decision to make an agreement to manufacture it suggest they think they or someone they know can sell it, and having someone who understands the asian market right now, even a the cost of trading all the profits for a share in the form of royalties is not bad.
if we already had another deal though, i would be against this. GDGI would be better off with their own factory in asia if they could afford to wait til they had money to build it. a it is, i agree that it is a positive, but its not as if royalties are some bonus card in monopoly - its that smaller amount that you get when you forgo full profits to let someone else run your show.
shipping costs would be trivial compared to tariffs i would think
if so that is kind of sloppy communication to mention shipping costs and not tarrifs
tariffs can run up to 30%
these units cost $20k retail or something
it would not cost 1k to ship the
but you might pay a $6k tariff
and while there are exemptions for environmental tech sometimes, it takes a while to get them
so while saving on shipping is probably nice, saving on tariffs is even more helpful
both combined probably dont offset the cost of cutting in a partner
if they weren't in a hurry to close a sale, they could start their own mftring concern in a country with good pan asian export tariff treaties
but since they dont close sales fast, i think the short run interest of having someone culturally prepared to do business in asia trumps the long run interest in making more money instead of less money
the only thing better than royalties from asia
would be 100% of the profits from asia
which was our standing before the PR
on the plus side,
having an asian company selling it to asian
businesses will surely result in faster
growth in sales
which, given slow growth elsewhere
is maybe not a bad trade off
this modern world
kids today
its so hard to tell anymore
is there any such thing as sincerity?
i am not actually the hamburgler
and i have never even met mayor cheese
mrtx might actually be a guy from texas
who bought 6 million shares at .006
cause he is confident of some
material non public information he has
that he figures is ok to mention
cause he is not actually a GDGI employee
but rather a confidant of such a person
even if mrtx is not a person with 6 million shares
i think this company will eventually get a big sale
and likely before june, and on that point
i agree with mrtx
in all wide-eyed sincerity
i am the hamburgler. mayor mccheese and i vouch for mrtx and his non-insider non-public material information. hold on til may and june and you will thank us both.
au contraire
big news is coming soon
you just dont know what soon is
neither does ben
but i am betting errbodys farm that news is coming
some kind of soon
big news is still to come
i think when the CEO said big news coming soon
this is not what he meant
the licensing deal in asia started a while ago, so they could have announced that a while ago. none of what he said in the PR is "news" in the sense of being new to them just now. i think they said something because they sensed their silence was making people jumpy.
i think there is still a big new deal that they are working on and will announce when they get it
that is a good point!
i was a a little unsure of who their patent would fare internationally against enterprising competitors trying to knock it off. i dont think its money in the bank just yet, but its a great long run sign that there international patent moat is difficult to cross.
the bad news is
if sales on this side of the pacific can be an indication, those year to date asian royalties are probably zero
none of which is a surprise to me. being a big fan of occam's razor, i have been saying since january that the reason there is no news is that there is no news.
so now i expect a few million shares worth of selling pressure from a few people who were hoping to flip or were long but are going to get huffy about the CEO saying very soon back in january
how low that takes the stock before it is absorbed depends on how much more money the existing longs come up with. no new money is
coming here until there is a big sale.
wish i had some money to buy with. i am gonna find some money i dont have and use that to buy. will it go below .004? i doubt it.
which could, as always, be any day.
not me. somji's emails from CEO are encouraging
but to me they suggest work in progress,
deals still hovering near completion
not done deals
if i had more cash, i would be happy
if some people got impatient and sold
as it is, i dont much care cause i think
the stock will leap up to valuation based on sales
rather than valuation based on yesterday's price
but i would still rather not see it drop
consider the upside
nobody promised news this week except for maybe posters
the company says they are not selling shares, so there is no reason to get jumpy
sure yeah why not
its pretty sloppy back of the envelope stuff
glossing the question what is their annual fixed cost gonna be
so what are their profits gonna be
but what i am saying - if the market can see a clear path to profits and have an idea of what those "earnings" will be and we think now they have income so they wont have to issue more shares, we get an earnings per share figure and that can be multiplied by a reasonable price to earnings ratio (say, conservatively, 10) and there you have a stock price
so if the market thinks they can make 25 million in profits on average each year in the next ten years, thats 10 cent a share at EPS of 10 to 1, $1 per share valuation
more than 10 cents immediately with big news
big news meaning a sale of 100 commercial units generating 1 million in marginal profits after cost of sales
leading immediately to a valuation of more than 25 million based on reasonable project forward earnings and EPS multiple
i am not among those who thing near term news is certain, but i think it is more likely that they will eventually get a big sale than they will go out of business, and when that big sale happens its instant dime time
if not much more. if people think they can do 10 sales a year in the near futre at a million profit each, 30 or 40 cents a share would be reasonable, would it not?
dont be freaking out and selling now yall
i am gonna tell you today so you wont be all flustered next friday
nobody knows much about when news will come
we know the company spent money to get current
we know the moratorium is ending
we know the company thought news was very soon a month ago
as a result of knowing those things
i feel confident in saying
maybe they have a deal already
and maybe they are just as surprised as some of us that they
are still waiting for something to get done in mexico, korea, or costa rica. those places are on different time zones in more ways than one.
hold your shares, cause the news can come by surprised any day and when it does, 10 cents is LOW for big news
how it dips below the ask: ECN direct
some trading platforms allow you to put your order to Electronic Exchange directly
clear sign of agressive manipulation i think when someone buys at a price below the bid!
if someone wants the price to seem to go down, they can look at see, for instance NITE is at .0055 and VFIN next at .005
they figure out what ECNs those two use and place their order exclusivesly with the ECN that has VFIN but not NITE
is that correct?
i think so but i am not sure
hear hear!
ben is the NEW ceo
the old ceo used touts
the page that dutch linked to that a tout made
has a lot of exaggeration
i don't expect them to use a tout service again
the new ceo has commmitted to a no hype approach
but he could certainly surprise me
hmm. given you think its a possibility,
i guess there may be others that feel that way
the board consensus is that the company will only issues shares if they must, perhaps to build inventory to fill and order, perhaps to pay a portion of their debt
but silent stockholders might feel differently
i think the price is as likely to drop just because people get tired of waiting for news faster when the news is always supposed to be right now and it keeps not happening