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01/01/2008
(hopefully that will cause a panic sell so I can buy in cheaper again...I have to give your resident bashers something to chicken little in their posts as this board is way to well maintained)
Ren
Please don't use words like injection when tedwitt is on the board please. Your setting all of us up for a dirty joke for sure...:)
Ren
I enforce TOS violations. That's it. For instance, I just deleted my own post to lordano b/c of a hidden personal attack in that post.
Welcome lordano.
I don't know about the rest of the board, but I appreciate that. Stop by anytime, but like you, I'm trying to be in a quiet period myself as we wait for kingdom come...
Ren
Gunnar and viki, of course I will delete your post. You leave me no choice as you just attacked me and the mods as being "biased."
This board is about discussing PBLS, not other posters. There are members of this board who are routinely positive and those that are routinely negative. The mods let all posts stay as long as there is no TOS violation. If you feel that we are being biased, take it up with iHub Admin. I don't get paid enough here to be attacked by any poster. Feel free to take the time to read my posts and point out my "bias." But I do choose to be positive on a company that I have invested my own money in. It I was consistently negative on my own investment then I would simply be a fool for keeping my money, or whatever is left of it, invested in that company.
Ren
I do...problem is that there just isn't much else to talk about right now. I think most are tired of trying to turn over rocks to get to facts. BTW do you still plan on heading down to HQ? If so, when if you don't mind sharing. I need to know so I can avoid the area.
We were discussing the offshore bank. Some say it's criminal. Some say its genius. All of it pertains to PBLS though, even if we're just passing idle time with too many words. Again.
Actually I used the words scary or genius or scary genius. Don't misquote me...you're as bad as the media, and no, I won't divulge what I mean by "scary." :)
Don't forget the offshore bank part.
Subprime doesn't apply to commercial lending really, but to answer your question, yes. You and I know that rate is a reflection of default risk.
Awesome. I hope we see it "soon." I know I'd like to see it but my hunch is that cash is still tight at HQ.
22-26% wow. That's what I call criminal usury here in FL, though the general max usury rate is 25% here. I don't know any businesses that pay that on their debt. 15-17% max on private/hard money usually up to 4-6 points.
Hope they can convince folks to lend the bank that. Me, I won't go for 24% even over 2 years with PBLS. Even if it buys me a better Lear Jet.
Yep. Scary or genius, just hopefully not scary genius.
Not true. They are "mickey mouse" in your opinion. They are pretty solid IMO though I would like more information, escpecially NI. I could provide you with dozens of examples from my clients who had much less professional looking numbers and a much less professional story than PBLS has, and they had no problem getting financing. Of course, if I provided that information my clients could find out and get ticked, so I'll pass. Take me at my word or don't. The financials PBLS provides are not that bad. Besides they are just the financials they give to us, and not necessarily all the info they have to give to a lender.
Eom. This topic is getting a little stale IMO.
Ren
I never use a Cash Flow statement when shopping commercial loans. I am sure some banks request it. Most of mine just ask for a Balance Sheet, a P&L and tax returns...
As for why they don't provide us with a Statement of Cash Flows. Probably because they don't have to I would guess...IMO.
Ren
Wow, then I need to introduce you to a few banks...there is obviously more information available on the books than what they release with Pinksheets IMO, otherwise these acquired businesses wouldn't be selling out for an equity stake.
Great post Over...FYI bank's in Anguilla, not Antigua.
Thanks boss. I knew you would be there for me.
Sorry, I meant TOS. As for what TOS stands for, I have no idea. What really constitutes a TOS violation, I have no idea. You guys need a better moderator.
I am a realist...share price. ;)
No you can't say that you knuckle head. Wait, that's a TOU. How about you just can't say that.
I'm more of a realist. To me, the two words are "share price."
I feel chided. Maybe that's just chafed. That's what I get for being over weight I guess...
I agree. No problem with those that share. We all just need to understand that IMO this all ultimately finds it source in Ron. And that's bad business practice IMO. I don't even know if he understands how bad it is...
I obviously have to disagree ;)..."Your reply is a bit disingenuous as well - an increasing O/S decreases proportionally the value of an increase in earnings of the EPS. The energy, cost, and time to produce higher earnings to offset the higher O/S compared to the energy, cost, time to achieve a similar EPS on a lower O/S can be considerable."
I guess if you want to own a company making $500k a year with 300M shares outstanding you will be satisfied with no increase in the O/S. PBLS could still have 300M shares and be on the verge of insolvency. The only way out of their financial hole was to sell shares. Looks like in one way, shape or form they sold approx 2.1B more. That's about a 700% increase. Hopefully earnings (which I admit we don't know) have increased to at least the $6M-10M mark. That's a 1200-2000% increase. I know this is greatly simplified logic and I know you can do this math. But this math quantifies the "cost" as you call it. As for the extra energy and time...I follow your logic but that's not how it works in the business world. That's why you hire good management or keep existing good management in place. That's why you bring partners on board. After all, you and I both know that in business you are either growing or you are losing market share. There is no cruise control, only the mirage of such.
"PS-One more important thing is the way the company chooses to leak/provide/share/disclose information. I’ve lost track of how many times people on the boards have disclosed that company officials gave them first hand knowledge of deals and plans which no one else was privy to. Doesn’t mean none of us can't call and get the same information. It just means the company IMO lacks credibility/conviction/standards/ethical responsibility when they do this. They have to know it will be posted on the boards and next thing you know, we’re back to rumors and speculation on the boards since we have no verifiable confirmation in a PR."
And I wonder where all the rumors originate? Hmmm...I'll give you one guess.
Too many parrots here. I decided a couple of weeks ago to stop being one...I will not be liable for people who I don't know personally.
Now you're thinking...now follow that to a positive conclusion...
Either the bank will be used by PBLS to do nasty things to us or will be used by PBLS to buy with less "debt service" and with greater overall leverage of company financing.
It's either criminal or genuis. Hopefully it isn't both.
I can't argue with that. The risk here comes down to earnings/value vs. dilution then doesn't it?
Okay, first of all, bank financing is not that difficult to get. It all just depends on what you are trying to buy. If there is an asset that the bank can lend against, they will give money to just about anyone who is deemed credit worthy up to a certain percentage of the value of that asset. They typically require personal bios of the principals taking out the loan, 2-3 years of personal taxes on the principals, 2-3 years of business taxes on the borrowing entity (not applicable if a newly formed LLC), as well as balance sheets, P&L statements etc if available for the borrowing entity. Of course the bank will ask for appraisals, environmentals, proof of reserves etc if applicable to the deal. Mostly, the bank just wants to see if the deal makes sense and wants proof that the borrowing entity has the liquidity to pay the monthly debt service. So in other words, a man running a lawn business who has his wife set him up on Quickbooks can apply for bank financing. It doesn't take audited financials or SEC attornies or fancy CPAs, though those things help. PBLS can get bank financing if they choose to and they have on certain deals (like the condos). And debt is cheaper than equity...here's a good synopsis that I agree with...
http://www.investopedia.com/university/financialstatements/financialstatements8.asp
"Because the cost of equity is not explicitly displayed on the income statement, whereas the cost of debt (interest expense) is itemized, it is easy to forget that debt is a cheaper source of funding for the company than equity. Debt is cheaper for two reasons. First, because debtors have a prior claim if the company goes bankrupt, debt is safer than equity and therefore warrants investors a lower return; for the company, this translates into an interest rate that is lower than the expected total shareholder return (TSR) on equity. Second, interest paid is tax deductible, and a lower tax bill effectively creates cash for the company."
I'd prefer that PBLS use more debt to finance their acquisitions which is why the shift to preferred shares for acquisitions was welcomed by me to some extent. To me, it's a move in the right direction. Those that talk about the 600lb Preferred Gorilla simply are too ignorant to understand how preferred equities are a great tool for building a business and acquiring assets...and especially how maturing Preferreds are most often simply retired by issuing new ones. It's like re-financing your house and as long as you make your payments, creditors (in this case us) will allow them to keep borrowing.
As far as environmental issues go for acquiring properties, well I guess it's pretty smart of them to have the largest and best environmental risk management firm already buying product from them...http://www.cherokeefund.com/intro.html
Ren
Logic there is flawed, Lake. Increase in the O/S does not equate to a decrease in our share value. Share value is supposed to be tied to eps or book value per share. Key phrase: supposed to be. In theory, if the O/S increases by 300% but earning increase by 600%, then your shares are now worth twice as much. Key phrase: in theory.
The problem is not the O/S or the increase there-in. The problem always has been market credibility. Any lack of transparency, ie any vagueness, adds to that lack of market credibility. And if the NSS bogeyman does exist, he preys on companies that the market doesn't deem credible IMO.
O/S is 2,168,502,635.
That explains why we are stuck at .015...oh well, I guess we're almost to 2.5B, what difference does it make now...
"As an essential ingredient in the Company's new growth plan, its Board has approved an increased in the number of authorized shares of its common stock from 1.75 billion to 2.5 billion shares."
Question for you in reply...what is blended aggregate? Is it concrete? Is it limestone? Is it coal? Is it sand and gravel?
I do know that there's no way this is going to come from the Murphy Pit alone. Posters keep crying "foul" that this is a hyped up contract because they can't see Murphy doing that kind of production. I agree, and yes PBLS has been prone to putting out some over-hyped numbers, but with enough sites up and running providing whatever blended aggregate is, this contract is completely plausible IMO. That's the story as I understand it for the new partners. They want to buy, buy, and buy some more mining sites of different varieties. I believe they will then have all of them producing materials to fill this contract.
Ren
Just be sure to buy a boat slip in the marina. Well worth the price.
Agreed. I think the yield sign stays until they release details of their capital structure.
I had never heard of it either when John Hayden was explaining it all to me. He is not a man of few words. I suggest blocking out at least an hour for the discussion, which is really more of a lecture.
Its just up and running and needs a few more things, but at least it's some "proof" that they still exist.
I can sell you one closer to Gulfport-Biloxi for half the price if you are interested. Then you can take the money you saved and buy some more PBLS shares if you want. That way, everyone wins.
(I sound like a salesman don't I?)
That's where you are I disagree. I think that is the price tag that the Bayou Boys have put on their current little project, and will exit stage right for not one penny less. That is the price tag for PBLS. Doesn't have to be exercised if said partners cooperate. Can be exercised if they don't.
NICE!!!
See class, someone has been doing their homework...
And people, please don't barrage the sales office with calls. That's what gets us cut out of the loop.
I've got a couple of them targeted. But seriously, I met with a developer yesterday that has now opened 3 banks simply because he is running out of places to put his money. I don't think he's a criminal, but I do think his company is worth more than PBLS.
And no, I didn't suggest he buy some PBLS.