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diluting is selling shares to raise money
nothing wrong with that when it is in the
best interest of the shareholders
for instance if they get an order for 100 units and they can either make and deliver them one a time over the course of two years or they can sell 20 million shares and build them all at once, i am ok with 10% dilution to get the deal done and the million dollars in profits in the bank.
so, because i say dilute away. the other possibility is they would need to dilute to pay creditors or to file banktruptcy to keep creditors at bay while they seek further sales. not so stoked about those possibilities, but i think, while they might handle it poorly and not get as much as they could, they would again dilute only as necessary to serve the interests of the shareholders, so again i say, dilute away. if they ommunicate better, selling 20 million shares to raise 200 k dollars to pay some debts should not freak everyone out.
i am not gonna say a company with $350 dollars as of december and a cash burn of hundreds of k a year is definitley not going to sell shares to make money, cause i think if i said that, i would sound naive or dishonest.
but i will say this company may well have to raise some money by selling stock, but i dont fear it.
270 mill shars outsstnindg and 1/4 of the nonillusory portion of their debt cut off is fine with me.
i was kind of disappointed
the last time they diluted
and the stock plummetted from 10 cents to less than a cent
so i would disagree that they never screwd with the stock much by issuing shares
not that the upcoming dilution is going to be a similar problem
as i said, i would expect them to dilute to provide inventory for a huge sale, so that dilution would be the same decision we as investors would want them to make and while our shares would represnt a smaller fraction of the company, it would now be a company with a big sale
DILUTE AWAY !!
dont pity me. i dont feel pathetic.
i dont think it costs me anything to consider whether or not the company will dilute and why that might or might not happen, nor do think it costs me anything to see the obvious: they have no cash and might need some to fill a million dollar order.
if someone thinks they are going to go crazy and double the share structure up to max oustanding, i would say that is an unfounded fear. if someone thinks they might need to raise a couple $100k to build inventory or pay a debt, that seems quite reasonable.
in one sense, it does not matter that other companies are terrible investments with terrible share structures.
even though that is certainly the case, if this company issues 20% more shares, all other things being equal still, the shares will be worth less than they are now, so its worth thinking about. they are not the most skilled money raisers, if you recall they sold SEVENTY MILLION shares for $50k last year. they should do much better right now with the price where it is, but i think there is no guarantee our restaurant managing CEO is going to handle it like a wall street type.
also i pity the fool who pities fools. calling thinking different from your own "pathetic" is pathetic, so here i am, wallowing in self pity. woe is me! when will i learn?!?
i think this is not what a person says
when they are selling one million shares
if you are looking for a buyer
its not ideal to predict a downturn in the stock
some are just very candid and open
even when it might serve best to be silent
people are funny
especially wizards
very unpredictable!
get true knowledge before lying?
that is kind of absurd advice. if he thinks the wrong thing because he did not do due diligence, he is not lying, he is just laboring under the burden of ignorance. and if he finds out the truth first but is fundamentally inclined to lie it doesnt change any outcomes.
but i completely agree that they are likely to dilute before a sale. we need them to dilute. they are not going to make 100 cool and save units that cost a million dollars with $350 and belly button lint, which is what they had to work with on dec 13th.
oh, they already completed a sale maybe you say? how did they build those then? same problem.
cash before manufacture purchase? hmm. financing for a company in the red with debt 5 to 15 times its revenue? umm...well....
but that's cool. tell us you are selling 10 millionn shares to get the manufacturing started on korea telecom's 100 units order and i will be fine with that.
price target over .10 on big deal news, maybe .40
IF they close a big deal as they seem to expect to (which is a bird in the bush and hence you can buy this for less than a 1/10th of what it could go to in days any day now) the stock has huge potential to appreciate.
they have NOT negotiated with pepsi, they negotiated with a pepsi distributor (which is really the large group of ac users as opposed to corporate pepsi, but not just one monotholic entity where you can sell them all something. they try to murder each other for territory more than share the wealth in the ol bottling business.)
but they negotiated with soriana in mexico and korean telecomm and apparently they acutally sold a unit to korea telecomm, a company that talks about their committment to mitigating their server banks impact on the power grid and thus the environment and that is a huge amount of cooling needs right there. server is different than backbone, but its worht nothign that south korea has kick ass internet compared to countries like the united states!
so one of the those two or something similar could be the big new deal and they are both legitimate monolithic decision makers. (in contrast to pepsi distributors one of which has tested but apparently not purchased. its still probably a huge contract. its like for a big city in OK as i recall. and the surrounding area. and us merkins (bahahaha) like our soda.
if so, that could be 100s of commerical units. the 10k shows their cost of sales is only about 50%. now that includes the res units so who knows, but they have a moat and something that kicks ass and has a FIFTY PERCENT rate of return AND THEY HAVE FINANCING FOR CUSTOMERS and its internationallly available!
harvey mudd, epa, tulane U, all agree the thing works
if they close a sale for 100 commerical units, that is
.5 to 1.5 million in marginal profit after cost of sales
with that much revenue you can start to think about fundamental valuation based on projected earnings
i think its fair to guess the market will believe if they get one sale like that, in near future years they will be getting 5 to 10 sales like that
2.5 to 15 million in earnings
at a 10 to 1 price to earnings ratio
would give you a valuation of between 10 cents and 60 cents
so you got between 10 and 60 to 1 return as a possibility here i think in as little as next week
why not sell both kidneys to buy as much stock as possible and go on dialysis until they sale comes through? it could take a while. the company is broke so they could become unable to service and develop business and flounder indefinitley or disappear. or they could finally kick some ass. tomorrow. or a month from now.
all my powder is wet
i pour gasoline on it
what
watch out though
BOOM!
10 $400 ask smacks and that's a penny
that's not really so many or so much
if a couple few people are eager to see a penny
and own some stock that will be instantly up 10%
not much chance its going down on news
news is not priced in
at least, not big deal news
maybe a tiny deal news it would overall go sideways
but with news of a modest sized or big new deal
the company will be starting tho show fundamental value
i would expect it to rocket up and then also certainly correct
as A man likes to observe, its like a rubber band
but even after the correction i would expect it to be much higher
because of the aforementioned fundamental value based
on reasonable expectations of forward earnings
if they close a big sale, i would buy on the post news dip
and expect more PRS of more big new sales
and more bumps to share price and volatile but increasing
share price going forward making holding for long term capital gains appealing
BIG deal more than 10 bags short term
depending on what big is
like 100 commercial units
that could be a lot of money right?
annual report shows cost of sales is about 50%.
if they are 10k profit per unit x 100 units
that is a million in profit
just the expectation of one sale per year like that at 10x price to earnings would be 5 cents
i think a single large sale
would create the reasonable expectation of multiple
large sales per year going forward
so more than 10 cents is possible
on announcement of a truly large sale
dont you think?
or what is wrong with the back of my envelope there?
wildly inaccurate guess on profits of a large sale?
unreasonable definition of large?
i dont think so, L2 backs these prices up with 100k+ bids in tight succession of prices behind both bid and ask.
with a sale, they can do a moratorium i would think - maybe anyway, they would not need the money, although they growth might be expensive in cash to create new inventory, but if they DO need to dilute, it would be great of investor confidence and the price of the asset they are selling to known a ceiling to how much dilution there would be....if a sale does not come by march 15....
better if they tell us dilution plan!
that would be a good press release - for instance - we will only sell a max of 40 milllion shares in the next six months
how much would a big (say 100 commercial unit sale) revenue and revenue net of cost of goods yield do you think?
ok mc. i will be stoked if you are right!
and also if you are wrong.
cause either way, i am going surfing.
let's hear some good news!
now that i will believe!
>> Corporate obstacles to closing deals.
but that is not really a reason to hold back news of a deal is it? that is more like what i am saying, if no deal is announced, that is a pretty clear sign there is not a final deal yet
possibly because of such things as corporate obstacles to closing deals.
that i can understand - maybe most of the guys who have influence on the decision are strongly in favor but someone is in position to block it and needs to be appeased, convinced, or institutionally bribed by agreeing to some pet project of theirs. or there is a paperwork process that is causing delays to finalizing the deal, much less of a problem than an person opposed to it.
but SOMETHING is holding up the deal, or they would announce it.
i checked - it is "hominem" not "hominum"
i will agree that your comment was not an attack on my general reasoning abilities, but it was, as you say, an unfavorable assessment of my ability to understand this situation based on lack of experience.
since it is directly relevant to my ability to imagine what goes on in major corporate purchasing, i will agree it is not ad hominem - it is literally at or to the man, but it is relevant.
ad hominem is different from a convincing example
i used to write contract bids for US govt contracts, but its true, as you say, i have never done business with a big company
still, i imagine that their motivations are imaginable. large companies dont want their competitors to know things about their strategy that will allow them to compete more effectively. they dont want the public to know embarrassing things about them, stuff like that.
i remain unable to imagine any reason a large company would not allow CNS immediately to announce their commitment to green technology. (the notion that they would not want their competitors to know their cost savings secret comes to mind, but given the PR benefits of green and the public nature of CNS, that does not seem like a real possibility)
i notice you also are unable to imagine a single reason a company would delay announcing.
but if anyone comes up with a plausible one, i would be interested to hear it.
thanks. but neither of those seems credible to me
why does a purchaser not want people to know they are using a green technology, or delay that knowledge?
"internal reasons" on the purchasers side to not let them talk about the deal are equally unimaginable to me, but perhaps you can suggest a plausible one?
and why do they not want to announce deals separately so they can have a synergistic effect on stock price?
if they have a deal and wait until they get another to announce it, the stock price might (is likely to!) fall while we wait
if they announce a deal now, the stock price can go up, correct, and build support for a higher baseline price when they announce the second deal
as a stockholder, i would be strongly in favor of announcing any deal as soon as it is final, and i still do not see an example of how management's interest could diverge from stockholders interests about this
i remain of the opinion that no news would be a clear indicator that there is no news yet, not that they have completed deals but won't tell us
whereas you believe its coming, i hope its coming
didnt mean to say no announcement means no prospects
but rather that if there is no announcement, that is a pretty clear indicator (for me) that no prospective deals have been brought to completion where they buyer has a firm commitment to specific terms - is what i mean by done deal. a done or closed deal where there are no other steps that have to happen except doing the work and getting paid.
and i remain unable to imagine any reason for them not to announce any deals that are closed as soon as they are finalized
but i would be interested to hear anyone else's idea of a hypothetical reason why they would not announce a closed deal right away and instead wait a while to announce it
now CE is lifted why would they wait?
before, it was conceivable that they had a deal closed but were waiting to announce until they CE was lifted, so they did not waste the potential for price appreciation on the limited market that is willing to chance a CE
now CE is lifted. i am not able to imagine why they would not announce a deal immediately if they had one.
can you explain the possible advantages of not telling the stockholders and the general public and their potential future clients that they had closed a big deal right away and instead waiting til mid march, a few days before the moratorium expires?
it seems to me, if they have a deal done, there are reasons to announce it immmediately but there are not reasons to hesitate
i am not expecting a PR necessarily, but that is not because i think they have a deal but are not going to tell us, i think that because i believe there is a good chance they are still working on closing
very few people paid high prices
when this stock came out, it was priced at $2
but there were only 10 million shares in the float or something like that and 110 million management insider shares
in 2011-2012 the company issued around 130 million more shares into the float
they did not tell anyone they were doing that, which seems like a bad move. the shares came onto the market and the price started dropping and everyone knew dilution was going on, but we did not know what the company got for the shares (annual report revealed that 72 million shares were sold for only $47,500 total!)
the failure to close deals combined with doubling the oustanding shares should have pushed this down from 10 cents to 5 cents for the doubling and maybe as low as 1 cent for failing to meet (unreasonable) expectations on speed of rollout of the product
but not half a cent. better communcation might have helped there.
if it were not for the band communcation, it might be a cent right now.
but the past problem of high expectations but low actual number of closing deals may continue to be a problem
if we dont see a press release on monday, that tells me they still dont have a done deal, despite it being soon in dec and very soon in jan and lots of people saying next week for over a month
they have no money in the bank, or like $350 according to the annaul report
if they can run on fumes, this can limp til its hits one out of the park. if they cant run on fumes, there is no guarantee (prior performance, press release in oct saying they did not get paid for deals they thought were done deals) that they will close a deal before they close shop
but if they do, more deals will follow and this will go to the moon
if no news next week, some 4s again
and better than 50% shot no news next week
although i guess maybe lifting the CE
could possibly keep it out of 4s
budgets in august, POs announced in september
most us corporations do not budget on calendar years, they budget on fiscal years that end in september if i recall, around that time of year anyway. budgest are made as the fiscal year ends.
if a company makes their budget in august when the fiscal year turns which is normal, they can announce any deals then even if they are not dated to close immediately. if a major corporation budgeted in 2012 august for fiscal 2012-13, they would have announced by now.
so stuff like that, in the works but dependent on annual budgets, i would not expect to hear about until august or september.
but i did not forget the big new deal. i said, dutch says news is supposed to be about a big new deal. so clearly they are hoping for one particular thing. hope, the little thing with feathers.
the disclosed averages were double those prices
more like .004 and higher
so that does not account for the 72 million
also some of those were purchased before the 72 millipon could conceivbaly be on the market, long longs like dutch
but true, some of those have traded
yep. discount lawyers.
left out this part in the first letter.
says who their transfer agent is and that they met.
thats the difference i see.
seems like they should have boilerplate: blah blah put <name of transfer agent here>
pretty feeble performance, and while i appreciate that we shareholders may have got it for a bargain price, it kind of reflects what scam the whole thing (lawyerdom) can be. they have to file this very standard thing, anyone on this board could look at someone elses and see you HAVE TO HAVE THE TRANSFER AGENT LISTED and they get to charge prolly over a thousand dollars to do it, they fuck it up, and none if means much anyway, except a guy who did not get caught lying recently was seen holding hands with you.
Jack Cade "First thing we'll do.."
The Company’s transfer agent is West Coast Stock Transfer Inc., located at 2010
Hancock St, Ste A, San Diego, CA 92110, which is a registered transfer agent with the Securities
and Exchange Commission. Counsel confirmed the outstanding shares set forth in its Annual
Report by personally contacting the transfer agent at the transfer agent’s office, on February 21,
2013.
Counsel has counsel has (i) personally met with management and a majority of the
directors of the Company, (ii) reviewed the Information, as amended, published by the Issuer
through the OTC Disclosure &News Service and (iii) discussed the Information with
management and a majority of the directors of the Company.
prolly forgot something important
possibly you gets what you pays for and last time i looked GDGI had $350 in the bank or something. hope they got it right this time.
for me its a high risk, high reward scenario
there are several POTENTIAL clients (people keep saying, as i think the board summary does, that PEPSI is a client even. they are not. or is any pepsi distributor . they did not close that sale or they would have said so. nor is DENNYS a client. a single Denny's franchise owner in costa rica which is almost at the equator, unlike most Dennys)
but as always, a sale to any single unit could lead to multiple sales or corporate level sales. and apparently with THE ONE BIG DEAL that dutch speaks about, they have such a multiunti sale in the works!
maybe the best prospects are south of the border cause its always hot so the unit pays off faster. if the CEO says he thinks it happening tommorrow, and the day after today it did not happen, that could be because "manana" and "tomorrow" don't translate as directly as some people think.
the fact that they got the financials filed and paid for the lawyer letter means they think the CE will be lifted. no reason to think they are wrong. and that its worth their money to support the badly trashed stock value. and i would say it suggest they think there is a timing thing going on where they will have news soon.
but they probably often think that. but the extra pressure now is the moratorium, so on top of thinking, as usual, that they are almost there (why else do they sell 25% of the co for that little? they thought they didnt have to sell and waited til it bottomed while a deal did not come through. and their prior PR about not getting paid. notice i was right. they do not have receiveables on the books, unpaid work was also not performed.)...so ramble ramble this company chronically thinks its almost there maybe.
the high risk is that if they dont close a deal, they have no money and dilution will not raise much compared to their debts, and as much as it it seems obvious they should close a big deal, still they have not. can they do the same thing they did last year again? their balance sheet and stock value say no.
now, as for PR coming up, either they will get the ONE BIG PROJECT (says dutch - that is what the news is about) or maybe be surprised that does not happen as fast as they hoped again and maybe have something smaller to talk about at least, or as a fall back, they will announce a moratorium to protect shareholder value again
if they get one big project, some of the other tire kickers might come around as fast as a leviathan can, like, a budget period. for a lot of these buyers, they may have fiscal year budgets that are set in august or something each year, is what some people have said, and that seems about right.
for those who say dont engage with me, i counter all yall are more credible when there is counterpoint.
no way! that would be naughty!
haha. seriously though. i thought we are all saying this guy is outstandingly ethical.
i see your point that if someone gave 45k to a company at such risk, probably someone made a good argument for short term profits and possibly long term profits.
but 50k for a quarter of the company does not tell me they person was convinced it was all so terrific.
and while i agree we are not seeing that 72 million flooding out right now, it could put up a mighty barrier in the future if this guy wants to sell on this current news, it will not be the kind of upside i had hoped for prior to seeing the annual report
i think you had said you expected revenue to clear the debt? not me. but i expected giving away half the company to make some progress, but no, not so much, still about 1 million in legit debt plus 2 million ez enligsh right?
why no buyers for 72 million shares?
i don't get what you are saying, DCSteve.
i am guessing we are understanding the annual report differently.
maybe you can shed some light on your interpretation.
i find it daunting to see they sold 72 million shares or 25% + of outstanding shares for less than $50k cause that is someone who could sell a lot at a low price and still be quite happy with profits. also shows poor planning on their part wouldnt' you say?
but you say the person with 72 million shares they bought for 45k will have no buyers. why not? they have the same potential buyers as any stockholder right?
they have so many they must be careful not to flood the market, or else flood the market knowing they will create momentum and exploit it. one person holding 25% of the unrestricted could make for some roller coaster surprises.
"Regarding the 72m shares for 45k. I see this as a huge upside because that person will have no buyers which will make that 72m worthless. Wont even make that cash back in this float at these levels. There is no reason to believe that ben is NOT going to announce something huge because he wouldnt say "here is 72m of worthless shares". What a smart ceo would say is "thanks for your money, this is going to help us fund our big project which will yield a huge return for all shareholders"."
72,000,000 sold for less than $50k is good?
i dont understand. maybe we are not reading this the same.
what i see is the annual report says that sometime in 2012, GDGI issued and then sold 72 million shares, more than 25% of the current outstanding shares, for less than $50,000 - $47,500 to be exact, or less than .001 per share, lower than the lowest the stock every briefly dipped.
i guess if they needed to raise $47,500 in december, that would have maybe have been the best they could get for so many shares in a thin market. so lets say that is not some kind of scam, still, it wasnt the best planning and forecasting there, to have to giave away a quarter of the company for less than $50k sometime in the last year.
the dilution from 110 million shares to 250 overall last year (also paying lawyer debts) was not handled so well i think - it cut the stock value by 90% but the dilution was only 50%. better communication would have helped huh?
some of those less than .001 shares have no doubt switched hands, but there may be a huge number of shares purchased for less than a thousandth of a penny waiting to flow out.
for sure, those of you who own 5 to 10% of the stock and have paid in around $50k, i bet you would be happier if you were the lucky fellow who got over 25% for that money.
DC Steve
"Regarding the 72m shares for 45k. I see this as a huge upside because that person will have no buyers which will make that 72m worthless. Wont even make that cash back in this float at these levels. There is no reason to believe that ben is NOT going to announce something huge because he wouldnt say "here is 72m of worthless shares". What a smart ceo would say is "thanks for your money, this is going to help us fund our big project which will yield a huge return for all shareholders".
good to know. i was wrong then.
i should have realized that statistic took into account volume
so painting the close with low volume does not affect it much
thanks MC!
absolutely true that there is down painting too
i have not been keeping track, but i think i see about 3 to 4 times as many tiny buys at low prices than tiny buys at high prices
accumulation=price rises at close=painting
accumulation is a status of buying pressure that is recognized by prices tending to rise towards the close (at least that is the common definition in the context of stocks)
several posters on this board regularly posts that either they are going to paint the chart or would someone else paint the chart.
("paint"= buy an insignificant amount of shares with the objective of recording a price, often closing or opening, to give others a mistaken sense of the stocks price range.)
i am not sure it counts as accumulation if you buy $10 or $20 worth of stock to make it look (after the days trading, most people cant see the volumes, just high, low, close) like there is much more demand for the stock than there actually is
in fact, i am pretty sure it does not count as accumulation
that would be nuts and he will be in quiet period of no buying and selling all the time for having material information not released to the public. how does it serve his interest to have the stock price fall? my guess is the company or a distributor are trying to close a sale and as soon as they can close it they will publicize it, but until then, its a bird in the bush. and if you boast of a deal with someone, it puts you on bad footing to negotiate, since now you are kind of constrained from walking away from the deal, so no company will say "we almost have a deal with X."
spend a lot of time talking about the bad?
i think i mentioned that this company is the best positioned to succeed in a market that will one day be huge.
the product itselft seems to very good, a slam dunk to buy.
as far as the bad, they are have signficant debt (500k or very slim chance 3 million), have no apparent current revenue, almost no money in the bank, and despite a product the world desperately needs that is a clear good investment, still have not closed a big ( 10 to 100 ) units
there are posts on this board where people say they have painted the prices at closing time with such small purchases that the commission is greater than the sale and post from people saying insightful things like "going up"
i dont think its so mysterious that some people would express both the potential pros and cons of the stock and ask questions about it instead of just saying the expect it to go up
hmm
i guess it depends on what you want to use the board for
9 million shares=90k note payable, 72 millionshares=$47,500
they gave away 9 million shares to clear 90k of debt
ok
that is only 1 cent a share
too bad they didnt do it before when the price was 10 cents, but ok
but 72 million for $47,500? that is less than one tenth of a cent per share!! like 1/10th what it trading at now!! why!?!?
maybe one of you guys who the CEO talks will ask that question and get a reassuring answer
but mazda, the annual report says they are building relationships!
didnt you see, they are building long term relationships with existing and new customers!
i am not sure what that means, but maybe it means they are trying over and over again to convince customers to buy their product. or they are holding hands and gazing fondly? talking about their favorite movies and most embarrassing high school experiences? what? i dont know.
actually, in all fairness, with existing customers, building a relationship can be checking in to verify continued savings and function and making estimates on savings and costs to expand to new facilities. so that could be a real thing for sure! with NEW customers they are creating long term relationships? is that different from persistently trying to close a deal and persistently being rejected?
in all seriousness, i think there is a lot of risk in this stock. SOMEDAY some company is going to convince the world that we need evaporative cooling and that company is going to prosper
clearly GDGI is far in front of the market and the best positioned to achieve this feat
and it seems it should be easy - two year payback, no damage to equipment cause of filtration, company will demonstrate on your facility so you can be sure
and yet clearly it is not easy! no big sales yet.
huge upside, unfathomable risk. they have less than $1,000 in the bank and half a million in real debt besides another 2.5 million in likely illusory debt (courts may vacate ez enlish debt cause their service was fradulent)
if you have an appetite for risk, and dont think this will drop much, get in now. if you have little appetite for risk get out.
if you think it might drop to .003 on another 3 weeks of no news, you might be right. or you might miss out. consider if you will a lot of pretty strong hands around here and maybe not so many shares will trade that low even if it goes there.
i doubt i will buy above .0043 unless the situation changes
annual report also says sold 72million shares for $47,500
why did they do that? that is less than .001 a share!
the stock bottomed at .0012
can anyone answer this?
someone said on page 32 it says they gave a secured note to EZ Engliish. yup. that is a secured note, an IOU. i dont understand why that explains why they sold 72 million shares for a fraction of their lowest every value. at todays price, that would be around $300,000 instead of just $47,000
from page 20 of the report
http://www.otcmarkets.com/financialReportViewer?symbol=GDGI&id=99097
On December 31, 2012, the Issuer had 252,942,380 shares of Common Stock outstanding. The Company issued 131,550,000 shares of common stock during the fiscal year ended December 31, 2012. Of the 131,550,000 issued shares, 50,000 shares were issued for legal services, 9,000,000 shares were issued for converting $90,000 of a note payable, 50,000,000 shares were issued for investor relations and 72,500,000 shares were issued for $47,500.
.004-.006 unless CE lifted, then .006-.009
but back down to .005-.006 if no news in a week
one week without CE lifted, maybe down to .0035
news any day after CE, including maybe never
little/not really so big news .02
big news .1
really big news .2
i think the small draw down in the ceo shares doesnt indicate lack of confidence. more like any money that comes in is for the company not his paycheck and he needed to sell some stock to pay his own bills would be my guess.
on the plus side - if they pull off deal, these commercial units would be several for a big space, and based on their annual report their profit margin is pretty good, so they could be making $30k profit per big space they do. get a chain with 100 big spaces, that is 3 million in profit. 30 million valuation at 10 x earnings, and that is just one current period sale and the market would contemplate forward growth. so if they can close a big deal. whoosh! sky is the limit. everyone else around here is telling each other and possibly themselves that this is a sure thing and will happen soon. past experience should be telling us, all the more so because it seems like it should be a slam dunk but it never has been!! that we can't be sure this is gonna sell. i think if it was a done deal, it would be a done deal. until then, its a risk and a negotiation and the other risks and negotiations post testing did not amount to what we would all hope.
somebody said the CEO did a refinance on his house to bolster the company. if what we are hearing is true, clearly we have a committed management team with interests closely allied to shareholders and a lot of motivation.
but it is also clear from the financials that this company is under a lot of pressure with the 3 million debt. but 2.5 is almost certainly written off. so what a relief!
that leaves 500 k debt
someone pointed out that they sold 72 million shares for only 50k
someone else says page 32 last paragraph shows they paid it to EZ Enligsh. i dont think so. that says they issued them a secured note payable. that means they gave them an IOU, not cash.
i dont get why they would sell 72 million for $42,500 and the report cleary says that and the numbers add up to 131 million total sales, so its not a typo.
but that concerns me - the debt and the end of the moratorium coming up and the terrible price they got last time they diluted.