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I get it, but let's be real. Where are they going to get the $$$ to pay 26M in debt?
They are moving in the right direction, but the RS looks like a certainty.
Hopefully, it will be in conjunction with debt news and create a spike prior to the RS.
The reason for the RS is so that they have more AS available. They must have a certain amount of undistributed AS due to the convertible loan covenants. They are not allowed to buyback shares before the convertible debt is paid. Stop posting non sense please.
Why do you think there is NO RS? It was included in the last 8k and 10K. The only thing that is unclear is the timing. I think they have some flexibility there.
Unless it gets shorted down after the RS.
They will need more asset sales to be debt free
It will happen by the end of March per the 8K. Call investor relations (# on ICLD site) and see for your self
Looks like the pump cycle is beginning now that AS is distributed. Hey, why not?
Shorts need to cover now. The company let them know with an 8K that the RS will occur on or about March 31. They do not want to be scrambling to cover at a potentially much higher price! Munro wants this thing to be .25 after RS. Tick Tick Tick BOOM!
Agree .05 - .06 before RS, but the only way it goes to 1.00 post RS is with positive debt restructure and other news catalysts (e.g., huge contracts, partnership, buyouts, uplisting, etc.). GLTA
Exactamente!
Shorts will cover before the RS next week. They are not stupid. I think the pump cycle will bring it to .15 this time. Maybe higher. Then settle back down to .07 -.08 pre RS (.28 -.32 post RS) IMO
Short Squeeze triggered by Reverse Split:
I read an article that AIGs recent reverse split caused shorts to cover. Hopefully the same will happen with ICLD
http://www.marketwatch.com/story/analyst-says-short-squeeze-likely-driving-aig-gain-2009-08-05?siteid=yhoof2
NEW YORK (MarketWatch) -- Investors who were short shares of American International Group before a recent 20-for-1 reverse stock split are scrambling Wednesday to buy scarce shares to cover, driving the stock up more than 50%, according to Miller Tabak analyst Peter Bookvar. Bookvar said he's seeing a similar situation with shares of Georgia Gulf Corp, which also recently did a large reverse split. "GGC is another stock that had this big reverse stock split, and its stock went from $7 to $36 in five trading days. It's another example of where the float has dramatically shrunk, and now there's a massive short squeeze going on," Bookvar said. "There is certainly no news to account for it (AIG's stock move), he added.
True, especially since most of the OS is locked up now. But they still need a catalyst. Munro, please light a match here!
I am expecting positive news related to asset sale and debt reduction prior to 1:4 RS. Otherwise their strategy to move to the OTC QX is out the window. They need to reach at least .065 prior to the RS. This should happen in the next week IMO
Agree...and they won't be profitable until they reduce or eliminate debt. This will take some time.
They definitely meet the income requirement. The PPS can be solved with a RS. The problem is they need to get the market cap up to the required level and to do that they need to reduce debt. Agree these items will not be resolved for at least a year probably 2-3 before they can up-list. Still, the stock should appreciate on the OTC as they move towards these goals.
Only ~5M is senior debt. All 28M debt does not need to be paid off at this time for the company to be profitable. Last year at this time there was over 60M in debt. The next asset sale should erase a good portion of the remaining debt. You are on the wrong side of the trade now and use emotions as your investment basis. LOL
This moves sideways to slightly lower over the next week or so. Then BOOM!
More like 100M maybe 150M
What happens Thurs?
THIS IS KEY:
And then there’s the capital structure shift. In June 2016, the company held senior convertible debt of $26 million. At the latest count, this was down to $5.7 million – an important and not to be understated shift. As we said last time, the presence of this debt has been weighing heavily on InterCloud’s ability to pick up any sort of upside revaluation. As this pressure lifts, we should see the company start to appreciate to a value more reflective of its underlying fundamentals than it is of a reflection of the company’s dilutive risk.
No comment.
VNDM keeps lowering the ask. They want it below .03 today. They want to buy cheapies before any news hits the wires.
Day traders and MM will continue to flip shares for big % gains at these low levels. It needs to go over .05 and stay there before it will run to .10 - .15. Hopefully, we will start seeing higher lows and higher highs soon.
Me thinks there will be one more shake out before the end of the week that coincides with all 500M AS being distributed. If it drops below .03 I will buy more.
Good catch! We can expect to see for asset sales.
This is positive:
Munro said, ““In 2016, the Company began a systematic restructuring. The changes included the sale of certain assets to generate cash and reduce senior debt. Our senior debt now totals only $5.7 Million; which is down from $25.7 Million in June of 2016. The senior debt reduction along with the subordinated debt reductions since June 2016 now total over $27.4 Million. This is a significant and important reversal. Our team remains focused on eliminating or restructuring the remaining subordinated debt in order to reduce interest expense and increase the shareholder equity of the Company.”
When speaking on the financial results, Munro continued, “2016 was a solid growth year for InterCloud. Revenue increased, costs lowered and debt was significantly reduced. We look forward to driving efficiencies deeper in 2017 and the continued growth and maturity in the new markets of IOT, SDN and NFV.”
This is positive:
Munro said, ““In 2016, the Company began a systematic restructuring. The changes included the sale of certain assets to generate cash and reduce senior debt. Our senior debt now totals only $5.7 Million; which is down from $25.7 Million in June of 2016. The senior debt reduction along with the subordinated debt reductions since June 2016 now total over $27.4 Million. This is a significant and important reversal. Our team remains focused on eliminating or restructuring the remaining subordinated debt in order to reduce interest expense and increase the shareholder equity of the Company.”
When speaking on the financial results, Munro continued, “2016 was a solid growth year for InterCloud. Revenue increased, costs lowered and debt was significantly reduced. We look forward to driving efficiencies deeper in 2017 and the continued growth and maturity in the new markets of IOT, SDN and NFV.”
We were at 496M as of yesterday. Expect all 500M shares to be done this week.
I agree, the gap is filled. It may trend a little lower before it goes up, but not because the infamous "gap" needs to be filled. This is just the paid manipulators trying to prevent retails from buying up the shares now that the AS is maxed out. I predict a big squeeze will happen soon and munro will time asset sale news for maximum pain to short sellers.
True, but if you have a margin-able account, then a high limit sell order will most definitely lock shares from borrowing. Many have margin accounts.
Why you so afraid Aron?
"...Shorts are simply killing this thing." For now! They will not have the advantage forever!
Sunny - from your experience, does it make sense that the shorts would want to cover once all AS are distributed knowing that any good news could create a major shortage of shares?
Shorts will cover once all AS is distributed. They are aware a RS is looming and Munro will squeeze the hell out of them.
True. Most shorts will cover before the end of the month.
Lock those shares longs!
All longs place a high ask limit order to lock shares. The result will be no shares for naked shorts when it comes time to cover and a
M-A-J-O-R S-Q-U-E-E-Z-E
Remember, Munro knows how to navigate the OTC. This is not his first Rodeo! He has stated his goal is to increase shareholder value. He is also a shareholder!