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Great sign when management buys back stock
And puts shareholder value creation at the forefront. The institutional backing is also quite impressive. Glad I doubled my position yesterday.
If only one of my other management teams was as sensible as this one seems to be.
Not much to say IMO
We're all in a holding pattern until management does the right thing by canceling the RS (or at least reducing it to something more reasonable). We should be talking about strategy, acquisitions, growth prospects etc., but that time will come.
Seems like it could go much higher
Given the share structure, public comp valuations and overall market sentiment towards the sector.
Took a position here
Saw some folks that I know and respect from other boards on here. Very familiar with the crypto space (advisor to blockchain startups and a venture fund in this space). Large market opportunity (remittances) and great application for crypto currencies.
Still doing research, but look forward to sharing my thoughts and due diligence in the coming days and weeks. Good management is absolutely critical for an OTC stock and this one seems to score highly in that regard.
GLTA.
They realize this from what I've been told
Based on what I've been told, they understand the liquidity issue. I don't know if they fully understand the impact it has on investor interest in the stock- I would think the stock price decline since the filing would provide ample evidence.
Another long weekend in the US, which might give them time to formulate a response for Tuesday.
No problem
I don't want to take much credit. There's others working very hard towards a better outcome as well.
The RS is an obvious mistake and needs to be corrected. I do think the pressure on Twitter worked, but the company's brand and business was being hurt. Perhaps I was part of that problem, so I can partially understand their decision to limit interaction on that forum. Their IR firm needs to figure out a better way to engage with shareholders.
That's what I advocated for
Raise the AS to compensate the company if necessary, but the RS is a bad move. Not sure if we get that, but I am trying and I believe others are as well. I think a 2:1 would be ok too as it would leave ~12mm shares in the public float (assuming they kept the 100mm shares issued to the company).
They got bad advice from someone either internally or externally. It happens, but the mistake can be corrected.
Some have asked if I can share more
I really don't know much more than I already indicated. I only know that the company is cognizant that a mistake (ie. the RS) was made, but the path to resolution is uncertain. Rather than speculate as to what they will do, the best assumption is that they will do something that is beneficial to CLHI shareholders and the stock price (using the current price as a reference point).
I am trying to establish a line of communication with the company. I was blocked on Twitter, but will work through other channels to get my views noticed by Robert Stephenson. I know others on this Board and elsewhere are trying their best to do the same. We have a good team in place to make our views known.
I will say that management has acknowledged that a mistake was made. That's the first step towards a resolution. The story of TDS is in its infancy, so a lot remains to be decided.
Probably the most optimistic I've been since last Thursday night. I think it will prove justified.
We might be getting somewhere
I did learn from a good source (perhaps the same one others have intimated) that the company is scrambling to find a solution. They won't publicly admit it, but they got bad advice regarding the RS (and possibly the share issuance, but personally, I was okay with that if there was no RS). They are trying to figure out the steps to undo the damage. Perhaps this is why they didn't reference the RS in the most recent PR. I will say, a proposed solution that I heard is convoluted and I'm not thrilled with it, but it seems like a fluid situation. I will say, almost any solution is better than the RS as currently proposed.
I've offered a potential solution to IR via email. I'm sure others have as well. If your cost basis is higher than here, I'd personally wait and see what happens. I don't believe it will get worse and there is some reason for optimism.
You can still view them
You have to logout of your account. Do a search for them on Twitter and you should at least be able to see their tweets. It works for me and I was blocked as well.
You haven't missed much other than what you already know. They're pink current!
They're still on Twitter
If you logout of your account, you'll be able to see their tweets. If you're one of us that's blocked, you can't interact.
They're posting tweets about being Pink current today. Great!
First positive sign since last Thursday
I hope the indications you're receiving lead to the outcome shareholders (well, at least those of us around at the time of the vote) have been hoping for.
To this point, that's been a bad thing
But there's always hope that sanity will prevail. I do think them not having to worry about Twitter is a positive in some respects. Let's see if my hypothesis proves correct.
In some ways...
The lack of positive movement despite positive announcements might force them to realize that the RS has been a disaster for the stock. I agree, the stock would very likely be trading between $3-$5, perhaps higher.
They closed off the lines of communication, but that might give them some time to reflect instead of worrying about their reputation online.
I can't imagine that this is going according to whatever plan Stephenson alludes to.
Two (perhaps more) of the moderators are blocked on Twitter
The company has gone off the rails (from an IR perspective) and needs to be reigned in. Not sure how to accomplish that, but they are not approaching this crisis in the right fashion.
The rest of the week should be interesting.
It's a fair question
They claim that some of us (sorry to generalize if you're in this group with me) were damaging their brand. It's a ridiculous assertion as none of the posts in question challenged the company's business (in contrast, the vast majority of us have been repeatedly complementary about their business prospects). The posts they might have found questionable only pertained to stock and capital structure related issues.
The company has a lot of growing up to do. They could take the smart approach and listen to experienced investors and engage in a constructive dialogue. Instead, they've thrown a tantrum and locked themselves in their room.
To be clear, not selling
If I were a determined seller, you'd see it in the stock price given the size of my position. No need to fret over me being a "disgruntled" seller and being vindictive.
Sad day, but I suspected this might happen. I'm fine with that as I made my views known.
Well guys, I'll probably only make sporadic posts from now on
As you can tell, while justifiably critical at times, I was supportive on this and other forums. I am truly disappointed in the company's approach and only wanted to see the company achieve a full valuation for all to benefit.
I guess Mr. Stephenson can't handle criticism well. That's a trait of many CEOs, but they've usually earned the right to push back.
GLTA. Always ready to provide my thoughts if you PM me.
Me too
Guess I'll have to rely on others on this Board to share information.
Very sad. Won't stop me from holding, but this is definitely the wrong approach to interacting with shareholders.
I agree
Management actions aren't Ben Berry's fault from everything that I've seen and heard. I think he too was blindsided.
Synergy resurrected a forgotten ticker and helped create value by finding TDS. What TDS does with the company afterwards is their responsibility. There's a risk we all take that management will do something shareholder unfriendly (however shortsighted and misguided) as they've chosen to do.
Every communication with Stephenson that I saw prior to the filings suggested he was grateful to CLHI shareholders and would treat us well. That obviously turned out not to be the case so far.
I do think the stock has minimal downside from here. I just don't know how to assess the upside given I don't trust management as much as I would like.
This experience has confirmed to me how important management is on the OTC. The good management teams that are shareholder friendly get rewarded and can get valued quite reasonably. I personally don't think you have to be on the Nasdaq or NYSE to get a healthy valuation. In fact, once a stock is on the bigger exchanges, it becomes much easier to short (either directly or through puts), so that acts as depressant on prices. I know some can short OTC stocks, but it's difficult and oftentimes requires exorbitant maintenance margin.
I saw that
I think the marketing person they hired, Astha Ghai, is serving double duty as head of IR. I have a feeling she's running the Twitter account too and doesn't really know what she's doing, at least when it comes to Tweets related to the stock. They should get the IR firm they hired to take that over before they look more foolish.
Growing pains for a newly public company. We all expected better, but let's hope they get their act together soon. Some humility on their side would be helpful too instead of the arrogance displayed to this point.
His reputation is taking a huge hit
I think he simply got horrible advice and there was no one on the Board to challenge him. He's probably shell shocked and is feeling paralyzed.
CEOs hate to admit they're wrong. It takes them time to come to grips with that reality. The good ones recognize the mistake quickly and stop the avalanche from accumulating. Unfortunately, he hasn't demonstrated acumen in terms of capital markets.
Perhaps the guy on Twitter that was promoting the stock and has also taken a reputational hit will knock some sense into Stephenson.
Great highlights, particularly for the newbies
Thanks for doing that Pro-Life. If anyone is wondering what's going on, we can just refer to your post. Plain and simple.
Today's PR was tone deaf (again) and didn't address the elephant in the room (sorry for the cliche).
I'm not sure what they've been doing for the past 8 months since they "announced" the deal with Synergy and CLHI. What's this Christopher Percy guy being paid for?
That's the sequence that must be followed at this point
You may not be a "finance guy", but your common sense is telling you the right approach.
The glimmer of hope today was no mention of the reverse split in the PR. They obviously knew we were expecting them to address it, yet they didn't.
We'll see
It takes time to do audits and get the filings up to date. I just don't see it being a 2021 event. I'm personally fine with that. The valuation can expand enormously from here, but they have to cancel the RS.
Uplisting is a 2022 event based on what they said
They can't engage with an audit firm and get uplisted this year. With that as a backdrop, Stephenson just needs to come out and say no RS. Why he didn't do that already I'm not entirely sure, but perhaps they're working on amended filings first.
That's fair
He did have an "out" based on the letter. That said, the RS still crushes the float and reduces liquidity.
Perhaps the stock price reaction is delaying the PRs so they can formulate a response. Let's hope that's the case and sanity prevails.
Just trying to help
I've been attacked on other forums for questioning this management team and not wearing rose colored glasses at all times. I've never subscribed to the notion that management teams are infallible. I've been an operating guy too and know full well that management can make plenty of mistakes. Pointing them out and trying to push for a better outcome is part of the process. There's activist investors questioning the decisions and strategy of S&P 500 companies all the time- even companies with market caps well north of $100bn! Robert Stephenson is far from that level and his decisions should be challenged, particularly when they run counter to CLHI shareholders interests.
I've also been a banker (or advisor) and know their agenda oftentimes runs counter to shareholders' interests. They're only interested in generating fees as they have no "skin in the game".
Having seen situations like this from multiple angles helps inform my opinion.
I believe you encapsulated Stephenson's thinking
It's the wrong approach for many reasons and CLHI shareholders suffered as a consequence. They could have raised the AS some (and granted additional shares to the company) and then released all of the positive information we've been anticipating. Let the share price absorb the information and see where it trades. After that, adjust the share structure as necessary to effect the uplist. That would have been the value maximization path, which should be the goal not just uplisting. It also would have kept a reasonable float for trading and liquidity. The current approach does not.
I do expect some upward movement in the share price once all of the anticipated announcements have been made. That said, the stock price will not reach its potential given Stephenson's actions.
Given the $120mm in NOLs and efforts that we as shareholders made to get the RM done, I would have expected 5-10% of the pro forma ownership. I expected to be diluted from there due to acquisitions, which is fine. Dilution due to value accretive acquisitions is great as it expands the pie.
I'm not arguing with you and respect your point of view. Just wanted to make some additional points. We're all on the same team trying to maximize the value of our investment. Let's hope management meets us somewhere in between the current polar opposites to create a better outcome.
One can hope
Easy enough to amend the 10k. I also don't believe that declaring an action for an entity you don't officially control (at the time) is valid. We shall see.
On the positive side, it does appear that the selling pressure has mostly abated and we've marked a near term bottom. I would have to believe that the news flow can only get better and that the bomb was already dropped.
If the PR were really ready to be released
Ignoring the conspiracy theory regarding share accumulation, wouldn't they have already released it to silence the critics on Twitter?
Perhaps they are revising the PR for some reason? Perhaps misplaced hope, but it's hard to understand how they could be so foolish.
Good accumulation taking place
Trying to find a positive after the debacle.
Like I said, I don't advocate it
That's my personal view. You're free to pursue whatever path you want.
Technically, they didn't officially have control of CLHI
When they declared the RS shortly after we approved the merger. It didn't become official until recently (not even sure it's even been posted to the DE SOS website, but we'll take TDS' word that it's a done deal). Not advocating legal action, which I think is futile and counter-productive, but I would question the legitimacy of the action. Thus, it's certainly not set in stone IMO.
That was a silly tweet
Showed a complete lack of understanding of the process and recognition of the plight of shareholders. If shareholders didn't understand anything, it's the company's fault. That said, I don't see how there's a positive spin.
I hope they reflected on their failures and figured out a plan of resurrection.
Fair enough
I like Bruce Arians. No risk it, no biscuit. Hope it's a good game.
I think I understand their plans quite well
They want to uplist as quickly as possible and only care about the share price reaching a sufficient level. Unfortunately, they didn't follow the right sequence to get there. Moreover, their plan shouldn't be to uplist. That should be a consequence of attaining a full valuation. Reaching a full valuation should be the goal.
The stock could very well get to $3-$5 on whatever PRs and updates they share. I certainly hope it does for recent purchasers (and my) sake. That said, they could have attained a share price well north of there, perhaps an order of magnitude higher given the current backdrop, if they had employed a more sane approach to the share structure.
I would have had a lot more respect for management if they had said something to the effect of "we understand your concerns and will reflect on them." A simple and conciliatory statement like that early on in the day could have tempered the negative reaction and bought them some time. Instead, they took a condescending approach, which is remarkable given Stephenson hasn't run a public company. If they were humble instead of arrogant, I would have appreciated that.
All depends on the ensuing communication
Speculating on the share price and timing is foolish at this point. We have to wait to see their response to the PR nightmare they've created and assess the fundamentals. I have little doubt that the fundamental story is intact (or perhaps even better than we appreciate), but they've got to repair shareholder confidence and morale.
I don't subscribe to the manipulation argument. I just think they received and acted on bad advice and CLHI shareholders, myself included, paid the price. Fortunately, I was playing with house money given my entry point, but my view of the upside was well north of what the stock was trading at prior to Friday. I understand and share the frustration of those that purchased at recent prices. You have every right to be angry with management.
Keep up the pressure (but walk the fine line) on social media. Negative PR is something they can't easily ignore.
Go Chiefs! (No offense if you're a Bucs fan, Mahomes is a fellow Texan).
You can probably tell I'm in agreement
I don't necessarily agree on the RS ratio, but if that's the ultimate outcome, I can live with that.
I hope we all see a PR tomorrow, preferably in the morning, that addresses our concerns. I'm not optimistic given Stephenson's approach to this point, but it's a young company. They have a lot to learn. If he's a good leader, he won't remain rigid and will evaluate the information received and make adjustments.
Perhaps you're right
But they've got a full blown PR disaster (not just an IR disaster)on their hands. I would expect some attempt to mollify disgruntled longs. I hope that's not wishful thinking.