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That is how you know when MM are playing with the price and trading between themselves. Just shifting around inventory to help a buddy out. Thus is the life in pinkie land.
Wow, I just noticed I got another chunk at $0.27 the other day. That could just about be a triple from there if things go the way I see them. Just bouncing off the lower BB now. RSI seems oversold and MACD doesn't stay south of 0 for long. Get them while they are cheap. Seems like this one runs every two months. Early May was the last peak so looking forward to late June and early July. The company likes news about every two weeks so I look for something on the Mexico deal next week. I hope the CEO is right and this deal adds $0.50 per share of "value". That will just about make a triple from here.
Back in August 2005 PLKC issued a PR that stated they signed a licensing agreement with Karta to use the TransTrak software. This PR seems to imply that the FleetRadar is a new product. Maybe I do not fully understand what Karta does. The PR seems to say that Karta handles fleet management and has chosen PLKC's software to power their hardware and to be their GPS solution to individual vehicle location. Am I understanding this correctly?
So has PLKC been receiving income from Karta since August for any FleetRadar products sold? It seems like Karta would pocket the sales of the products but would pay PLKC for the rights to use their software for each unit sold. I cannot tell who actually does the monitoring of the software though. Do both PLKC and Karta have their own hardware and employees monitoring these devices 24/7 with call center capabilities?
TIA for any enlightenment.
I agree, very good point. I'm going to read today's PR for the third time now and hopefully try to figure out what it means for us. Please post your opinions if you have any.
You have to consider that most of these sells at this level just got in a month or so ago and are simply flipping it. All you need to do is watch for higher lows to know we are building a larger support of longs. February was at $0.08, May was $0.10, and now with these new contracts I'll estimate that we form another base around $0.12-$0.14 before the next move up. We bounced off of the upper bollinger band so no worries about the sky falling. We just need to return to one of our moving averages and then we can continue to form a base for the next leg. No worries here at all. Just have to be patient.
icurnonittwo, some very good points.
Ok it appears that PLKC does not break out its revenue by hardware and services rendered so I can only assume that we will continue to see the 38% margin across the board for all future sales (including hardware and service charges). This figure is down slightly from the 44% from the previous year due to higher product costs and lease term agreements.
So using the prices of $500 per unit, $25 activation fee, $100 installation fee, and $40 monthly recurring monitoring fee with a 38% margin that equates to the following equation ($237.50 + $15.20X). X represents the number of months of service that the contract is active.
Assuming that operating expenses continue around $3M per year that means we would need to sell 7145 units in the first year to break even. Now that just accounts for sales through R&R or to Two Men and a Truck Moving or All My Sons Moving. That does not factor in the agreement with Karta or any additional license agreements.
Ok so where are we at right now. Recently R&R has turned in about 40 units per month in sales. I have to assume that they mark up the price of the unit a bit to make more money off of that. Over the past three months I see about 57 units from TM&T Moving. We booked the AMS Moving deal back in August of 2005 for up to 500 trucks but from what I can tell we have only locked in about 20 units. I might be missing something there. Ok so for this 12 months I would expect the following:
R&R 40 x 12 = 480
TM&T 57 x 4 = 228
AMS 20 x 2 = 40
Total = 748 units
Ok, so that is a long way from the 7145 units we need, BUT all three of those segments are in their first year of sales and two of the three are still in their first 6 months. One would think we should begin to see a ramp up in production from these segments as time goes on. The simple fact that R&R had sales the first month after picking up the product indicates we have a solid GPS solution that is somewhat easily marketable.
Going forward I would expect R&R to do more like 500-600 units for the next 12 months, TM&T has over 1200 trucks in its fleet so we should do 300-400 units through them, and AMS has over 500 trucks so we should be able to do 100-200 through them. So with no other agreements that's 900-1200 units. That chunk alone will bring in $164K-219K of monitoring fees (assuming 38% margin) the second year. Within the next twelve months I expect the addition of three more sales segments (either large scale moving companies or companies like R&R). So I would double my expectations the second year (1800-2400 units). Continuing on that kind of growth plan and factoring in long term service contracts plus upcoming license agreements, I am going to go out on a limb and guess that we will be profitable at the end of three years. With all of the PR's including each piece along the way to that point all I can guess is that we will see higher share prices.
Bear with me but here are some calculations based on the last 10K and recent PR's.
Since May 9th we have had contracts signed for 77 units. I'll call that about a month and a half of R&R work. So annualized that comes to 616 units.
According to their website the price breaks down like this:
$500 unit cost
$25 activation fee
$40 monthly recurring monitoring fee
Using 2005 figures the total operating expense was $3,022,448
So to cover ALL of the operating expenses for a year we would need to sell 3008 units. Now that's just for the first year, then the year after that they only need to sell 1571 units to break even because of the monthly recurring monitoring fee. And likewise they only need to sell 820 units the third year (assuming that all contracts stay in place that long).
According to the company website quantity discounts are available so my assumptions may be a little hokey, but it also states that contracts are either 24 or 36 months long.
Bottomline, if we add another two sales companies like R&R we could be talking about profitability within two years. And that doesn't even take into account the Karta deal that is pending.
PLKC News!
Contract for 22 more units from R&R.
Gotta love this comment from the Prez:
M. Dewey Bain, President of PlanetLink, stated, "We are pleased to see that our strategy of acquiring sales teams versus in-house sales teams, has been successful. We are beginning to realize the growth from our plans that were set in motion last year. We will be providing updates shortly on our licensing agreement with Karta Technologies and other licensees."
Time to rock and roll.
keep in mind that futrcash has signed a nondiscolsure agreement as part of him being allowed to visit the operating sites. therefore he is limited as far as what he can legally divulge. as much money as he has made so far and as much money as he is looking to make, i highly doubt he will put that in jeopardy. we all appreciate the work that he has done so far, but cannot ask any more from him. clearly we are sitting on one of the best pinksheets stocks out there right now. in fact i would venture to say even better then most OTCBB. as long as we all maintain our confidence and continue to accumulate we know where we will be before the end of the year. keep up the good work everyone. can't wait for the next piece of news.
jrod, very nice post, thank you very much. that confirms that PLKC is not only looking better fundamentally but technically as well. i am not familiar with AROON, but i will check out stockcharts.com and figure that one out.
gotta love the way things are stacking up in these charts. short term RSI seems to indicate that the long term RSI will continue higher above 50. macd holding above zero is excellent, just need it to turn north and we should take off. the macd histrogram identifies divergence which is a positive sign when the bars are upright, correct? so the fact that we are widening upward is another positive indicator.
then for the bottom chart that represents a longer term picture of macd. looks like the rate that it is approaching zero has increased. we could see that cross zero in early july at the current rate. if that happens we should hit $0.01 again IMO.
This one is setting up fabulously. Looks like we can expect two contracts a month (one from R&R and the other from either Two Men and a Truck Moving & Storage or from All My Sons Moving & Storage). IMO we have solidified enough contracts to negate any further large scale dilution. I still need to look into what kind of warrant structure is out there. Eventually as we start to see the value from these contracts move back into the share price undoubtedly there will be some warrant executions to get cheaper shares. I just hope the company has a plan for the influx of capital if that happens. Signing on another national or even multistate moving franchise would be huge. I'd also like to see a second more international (Canada and Mexico) sales/distribution agreement.
Ok, so I might be dreaming a bit, but I wonder if Uhaul has this kind of service yet? Just imagine what a PR stating that PLKC has been awarded a preferred vendor status with Uhaul would do to our share price. Or a deal with a company like Penske or another big trucking firm. I still hope they continue to market to municipalities because there is unlimited potential with trash trucks, police vehicles, ambulances, etc. Way too much potential in this one to not have a start position in my opinion.
Pat, can you point me towards CTUM's RFID product? I checked out their website and I don't see it. Some biotech stuff and oil & gas refinery business, plus some ties to a Ukraine technology company but I didn't see anything about RFID on their site either. TIA.
Ok, sorry I have been pretty busy with my WITM board as well as my BIGN investment. Here is what I am tracking for the list of OTCBB/PK competition.
TICKER - PRODUCT NAME
HISC.PK - CYBERTRACKER
MIOK.PK - MICROTRAK
MTKN.OB - MachineTalker
SLXI.PK - STS (Satelinx Tracking System)
AIDO.OB - DataTrak & PET ID
AXSI.OB - Active Tags
IBSS.PK - Synapse
NEIK.OB - Netmind
SKVY.OB - SmartTrack
XCHC.OB - AirTrac
EMTI.PK - 3 products
RFDL.PK - Black Box
STTK.OB - RTAC-PM
ATWT.PK - KiddieAlert
Keep them coming. Thanks.
Mike, The fact that PLKC sunk back into the 2's while the overall market took a dive does not bother me one bit. I've learned to deal with the dips cause no matter what they always happen. I look at them as loading up time. Unfortunately greed got in my way and i tried to steal some PLKC shares too low so i missed out on some nice profits.
It is so easy to bash a stock based on its past performance, but we all know that in pennyland it takes on contract to keep a company afloat, two contracts to gain investor interest, and three contracts for the stock to take off. Of course that is a huge generalization but true none the less. Right now we are in the second contract phase as we tag on all of these smaller contracts. Investors are starting to notice, hence the heart beat of late. All we need to do now is weed out the weak hands that are just looking to make a little money back and get out. Once we get through those we can move north.
IMO they just recently got INTO the starting gate. I believe there is a statement in a recent release or report that says "...since we have transitioned from a development stage company..." I m discounting the previous years as nonproductive and I am not arguing with you that they were probably disappointing to previous bag holders, but since I came across this company I have seen everything fall into place. They are strengthing their team, trying to expand their business through acquisitions and R&D, as well as building a successful sales force. This has all been validated by recent contracts. I tend to look ahead more then I look back which can be costly but have paid off in the past.
I don't discourage discussing valid issues with this company but when it comes to "bashing" with no statistical evidence or questions about items from a report/release...well we can just do without that.
Why doesn't he just buy both then, like me. I'm just a firm believer that this technology, even though it is not new by any means, still has many applications that have yet to be tapped into. I can remember a few years back when a small cap company (can't remember the name) was dabbling with inserting a seed into the elderly and into pets that would allow them to be tracked all over the place and people really were up in arms against this for civil rights reasons. Now today more and more auto manufacturers are installing tracking devices in vehicles as a STANDARD feature. It's just amazing. The way of the future is in this same direction. ALL valuables will probably be trackable someday. ANYTHING that is insured should be tracked (if you are an insurance company that is). Gov't vehicles probably should all be tracked IMO, cause it is tax payer money at work. The list just goes on and on and the customer base just keeps expanding and expanding. There is plenty of room for many players in this field. Good luck on which ones ya'll pick. For me it is HISC and PLKC.
Ah now theirs a RB post if I ever saw one. Full of solid evidence and statistical data to support his claims. Way to go buddy! LOL
WITM Wits Basin Precious Metals
Today's PR brought some weakness into the stock, but it is unjustified. The chart is setting up nicely for the next leg up as it just completed its retrace.
They own interests in South Africa, Canada and my favorite in Colorado. The Bates Hunter Mine in Colorado was closed in 1936 when technology limited them to like 800 feet of depth. Today we can go to 2000 feet. The historical assay values have recently been supported by samples. The company is conducting other exploratory drillings to determine parallel veins which could support even a higher value. They are in their DD portion of the acquisition and may purchase the property for $4.6M if studies prove the potential.
They are exploring the acquistion of a 50% stake in a Vianey Mexican Silver Mine from Journey Resources Corp. In speaking with the CEO he believes this will add $0.50 per share of "value" to the company. I beleive he based that one the mine's reserves.
I have created a board on iHub for Wits Basin discussion and invite any gold/mining stock player to join a discussion over there. Thanks.
I spoke to the CEO today as I was concerned at the recent increasing in outstanding shares. He informed me that 16M of the 38M warrants issued in April for $0.25 have been executed. He mentioned something about fighting dilution by reissuing warrants at $0.50. In all the company raised over $4M to be used for operating costs at the Bates Hunter Mine. He stated that his wife owns over 3M shares so he does not want dilution either.
He was very excited about the Mexican mine deal and said that news should be out within the next two weeks. He mentioned that the acquisition would add $0.50 per share "value" to the company with all of the reserves and all. He considers Bates to be the potential for the company but the Mexican deal to be the value. He was very optimistic about the price of the stock especially at this level. But then again that's the CEO's job. I'm very impressed about the response time I got from contacting him. We actually have a management team that cares about investors and wants to build a solid company supported by shareholder value. We should see over $1 within the not to distant future IMO.
Nice entry point for WITM today. Selling pressure must be from the comment that a cave in forced them to abandon parallel drilling at the 165 foot level of the Bates Hunter Mine. IMO the potential for gold at that level was limited anyways. If you check out the diagram on the company website you might agree. Historical finds at lower levels had a higher average then up there (265 feet would be ideal). So IMO this is not really that bad of news. The dewatering process should continue to pick up momentum as we continue through the summer months as dry as it is here in Colorado.
On top of all that, the company is exploring a Mexican Silver Mine that it may purchase. Ok, so maybe it isn't gold, but the team that had come on board recently has a real eye for potential. Check out Mr. Mottley who is CEO of El Capitan Precious Metals (ECPN). He took his company from $0.40 to $4 this year.
WITM also has interests in South Africa and Canada but I think their best value lies in Colorado and the potential for Mexico to work out. We have completed a 60% retrace from recent highs and should now we set for the next leg up. I have cashed out twice on this one and the full potential is still there. If you are interested I started an iHub board. Plese let me know what you think.
Thanks
Well I am finally back in this one. It dropped just enough for me to get in at my target price. This completes our retrace and should form a base at this level for the next leg up over $0.60. Dewatering should be moving smoothly now as I can't imagine they have had much rain lately. Colorado is so dry right now so they have all kinds of fire bans in place. That should bode well for dewatering. I have not been able to dig into the Mexican Silver mines enough to determine how it should effect the share price, but my guess is that if completed we should see a boost from that. Nice point to average down if you got in at $0.40 or more. We should see tremendous support at $0.30. If you want to try and steal some under that good luck, but I doubt you will get that many. I will continue to accumulate at $0.30. Good luck.
Wits Basin PR
Wits Basin Updates Colorado Assay Results; Dr. Clyde Smith Discusses Drilling Strategy
MONDAY, JUNE 12, 2006 7:00 AM
- BusinessWire
MINNEAPOLIS, Jun 12, 2006 (BUSINESS WIRE) -- Wits Basin Precious Minerals Inc. (WITM) has received further details regarding the 8th set of assay results from the Bates-Hunter Gold Mine in Central City, Colorado. Results as reported by Brian Alers (PGeol), "The gold assay results have been received and include grades of 1.054 ounces, .964 ounces and .939 ounces per ton gold." The complete table of assay results will be posted on the Wits Basin website.
Commenting on these results, Dr. Clyde Smith made the following observations, "The Bates-Hunter Gold project is moving ahead on two fronts. As de-watering of the underground mine workings progresses, geologic information is being gathered at regular intervals. Location of gold-bearing vein material in the workings and mapping of vein structure is continuing to contribute to our understanding of the geology of the high-grade gold deposit that was mined in the past. An outgrowth of this work, combined with compilation and re-assessment of previously collected data, has indicated that potential exists for discovery of ore shoots in veins that are adjacent and parallel to the Bates Vein. These adjacent veins are targets that require diamond drilling from underground. Drilling from the 165' level is being moved to the next lower level as new caving at this second level will not permit drilling. Underground drilling is now planned from the next level to be exposed by de-watering.
"The principal focus of the Bates-Hunter Gold project, however, is to discover new gold ore bodies at depth beneath the deepest 745' level of previous mining. This will require a comprehensive program of diamond drilling from surface targeted initially to test the projection at depth of the principal high-grade gold ore shoot in the Bates Vein that was mined in the past. The drill holes recommended should intersect the Bates Vein at approximately 1000' below the surface and well below the 745' deepest level of previous mining. In addition, these holes will pass through depth projections of several past producing gold veins other than the Bates, also below the deepest levels of previous mining on these veins. Directional drilling from down-hole wedging sites will allow the drilling of multiple holes to test a variety of sites in any veins intersected. The company is now seeking a qualified drilling company to conduct the surface program."
Dr. Clyde Smith serves Wits Basin under a consulting agreement associated with Charles Mottley, CEO of El Capitan Precious Metals, Inc.
About Dr. Smith
Dr. Smith holds a B.A. from Carleton College, a M.Sc. from the University of British Columbia, and a Ph.D. from the University of Idaho. He is a registered Professional Engineer with the Association of Professional Engineers and Geoscientists of British Columbia. Dr. Smith has founded or co-founded five exploration companies and is responsible for the discovery of four deposits: the Jason lead-zinc-silver deposit, Yukon Territory, Canada; the Santa Fe gold deposit, Nevada; the North Lake gold deposit, Saskatchewan, Canada; and the Solidaridad gold-silver-copper deposit, Mexico. He is currently engaged in a gold-platinum project in Nevada and serves as the consulting geologist for El Capitan Precious Metals, Inc. on its El Capitan gold-platinum group metals project in New Mexico.
About Mr. Mottley
In addition to his active service as President and CEO of El Capitan Precious Metals, Inc. (ECPN) , Mr. Mottley serves as a member of the Board of Directors of The National Mining Association.
About Wits Basin Precious Minerals Inc.
We are a minerals exploration and development company holding interests in three exploration projects and currently do not claim to have any mineral reserves on any project. Our common stock trades on the Over-the-Counter Bulletin Board under the symbol "WITM." To find out more about Wits Basin Precious Minerals Inc. (WITM) visit our website at www.witsbasin.com.
Not much selling going on at this level. Looks like a 50,000 share order bumped us up 5%. That only $500. If you have any dry powder now would be the time to load up. Any buying pressure moves us back to $0.015 easy. Volume has dried up because no one wants to part with any at these levels, at least no investors anyway. IMO we are dealing with the liquidation of shares that just came unrestricted or were issued for services rendered. In most of those cases the seller does not even look at the chart but just needs some cash. This is our opportunity to get them cheap.
Based on what I can tell our O/S is about 726.5M and our A/S is 1.5B, but that might be slightly dated. With the recent push for growth and contracts that have not yet resulted in cash flow we could see a slightly higher O/S. As more and more contracts roll in there will be less and less need to any further dilution. Plenty of room left to grow with 750M shares available.
We did convert all but $49,000 of the convertible debt though so I am not 100% certain if that is in my calculations or not. I beleive that was the increase in my notes from 699.7M to 726.5M but not positive. Interest expense must be under $500 a month now so we should start to approach profitability quicker. Just gotta keep them contracts rolling. Come on R&R sling this puppy.
Close at $0.041 or above indicates a breakout pattern and confirms reversal. Could mean a slight gapper in the morning, news or no news. I'm still astounded at the number of people that trade ONLY chart patterns and do no bigging into the company financials or current storyline. IMO that is why we have had this selloff and that is why we will run to $0.10 on the next leg up.
Well I was hoping for another trip in the lower 2's so I could grab another 1/2M but no luck. Progress continues and the investors shall begin to roll in now. Hard to believe this company is still valued under $5M. We could be one big contract away from a triple bagger. Well worth the gamble here if you ask me. Six months from now we porbably won't be calling this a gamble anymore as we will have proven financials to support the growth plan and forecasts. I love it when a plan comes together. So are we in agreement that this one should make a run back to $0.01 before the end of the year? I'll probably pull out my initial at $0.008 and then ride the rest to well over $0.01.
Consolidation/Accumulation period here as we base at $0.04. New investors matching those taking profits. We will need news for the next leg up. This could happen this week or next week or later. Longs are not worried so they are probably off determining what they want to do with the BIGN money they will make this year, boat, house, retire...
Yep sure enough. www.buyins.net shows 112,120 shares just recently due. That could be what is holding it back. Typically if it shows up on these lists there are many more then what is reported.
I have a couple quick questions.
1. Which subsidiary of the company owns the rights to the Grimes wells? Is it the JV with Hydroslotter that owns them or is this Tyche?
2. Which subsidiary of the company will own the Texas business? Or will that be a newly created subsidiary following the completion of the LOI? I am referring to before the company merges all of the pieces as previously predicted on this board.
3. The Tyche shares that we receive are in addition to the 37.5% owned by BIGN right? Did they spin off the 37.5% ownership by issuing BIGN shareholder restricted shares or are these in addition to the remaining 37.5% ownership?
Thanks
Not sure I would call that a head and shoulders but I kind of see what you are getting at. The head and shoulders formation has historically been a weakening formation according to what I have read. IMO though charting formation like that one is not the same as charting a big board stock. The only thing really reliable as far as charts in penny's seems to be the general trend. Some other TA factors are more appealing.
What a positive day for BIGN. A close tomorrow at or above $0.041 would settle all of my worries. Also a volume of at least one share above today would be great. Did you notice the nice bottom in volume to go with the shareprice bottom. Very solid support here. Looks to me like someone physically tried to set a lower low just to throw off the chart. As soon as those $0.035 sells hit they were gobbled up. Only a brief 10 minute stay in that area. Poor attempt to scare people off. I bet they are wishing they saved that powder for the end of the day. LOL.
IMO we will float around $0.04 until the next PR about Grimes or New Mexico. I beleive those will come before the closing of an LOI in that that kind of business takes much more time. I'm still kicking myself for not buying more when I first got in ($0.017 and then at $0.031). I've only got a little powder left and I'm saving it for a rainy day. I heard some folks talk about low 3's and maybe even the 2's so I wanted to be armed for that. I highly doubt we will ever see 2's again now. Who knows we might not even see many 3's going through from here on out.
Every single person I have told so far about this one has done their DD and ended up grabbing a starter position. Not sure if all are still accumulating but that alone speaks volumes for the quality of this company and its current position. In an UP market we would be closer to $0.10 right now, IMO. It's just crazy if you compare the charts for the NASDAQ since late April with BIGN. If not for that we would be settling at the $0.06 level right now.
This one should fly close to the end of the Q3 or begining of the Q4. The way I see it unfolding is that a PR in the 3rd Qtr that the company is inline with its Q3 expectations will hit and people will begin to believe. At the close of the Q3 we will have higher revenues for FY06 then we had in all of FY05 and people will begin to realize that every penny of profits/revenues in Q4 is pure GROWTH. This will result in further accumulation. Then in Q4 when they announce that they are on track to meet or break their $4M estimate (which is a 50% growth year over year) this one will be running on all 4 cylinders. My guess is that we top the $4M forcast easily. Based on that and considering the limited float we should see a spike to north of $0.40 by that time. And that is just business as usual for this company.
Factor in the "what if's" and this one is a no brainer at this level. Heck, one Fortune 500 contract could blow those expectations out of the water. I believe we have totally discounted the K9 business. There is a tremendous room for growth in that business as terrorism looms over us all and business are fighting to protect their assets (both physical and human). I could see LBWR acquiring a Biometrics firm and integrating that with their K9 business. They could tack on barrier and entry products to provide the full package. No need to do a large ammount of R&D either because most of these things are old products. It's all in the way that you package it and market it. If they are picky and choose only the best packages to sell under their brand name that will help. Their exposure from the drug testing business will provide them with their customer list. And vic versa when they land a security gig they can market their drug testing capabilities to them as well. What a great match!
This one should be trading much much higher. I think our "problem" right now is that the word is just not out there. When the big money flows this direction we will all reak the benefits. It is only a matter of time.
General accounting question for anyone qualified to answer or perhaps has experience in this realm.
Are revenues listed as Accounts receivable already factored into the total revenue figures? I guess what I am trying to say is at what point does the company list a contract as revenue? (signing of the contract, execution of the service, payment of the service, etc???).
I'm trying to assess the likelihood of even being able to see any kind of parttern in revenue carrying this much in receivables. I mean if their one large customer pays ALL of its bills at once and we drastically drop A/R does that mean we could see a huge spike in "Revenues" if they are not accounted for until paid?
Thanks
Sorry you are correct. For some reason I was thinking we were talking 18% for the quarter. Ok, so if this is just April then I can see some disappointment if you assume that the entire Q1 may end up with 18%, but still it is growth. It looks like we should actually finish the quarter over $1M in revenue (K9 revenue included). I was also thinking Labwire drug services only being over $1M. That would be ideal but alot to ask. Sorry for the misunderstanding.
Today's posts do not make much sense to me (not ment to be any kind of personal attack). Was someone out there really expecting $1M plus in revenues this quarter????? The key that everyone seems to be missing is that we experienced an 18% increase in revenue from the same quarter last year. It is not fair to judge a company Q1 versus Q2, especially if their business is even slightly cyclical in nature. The only fair way is Q1 2005 versus Q1 2006. Ok, so maybe an 18% growth will not knock anyone's socks off, but to deem this as a negative PR just does not make sense to me. Maybe I am missing something.
Sorry longs, but I too am hoping for some more weakness to continue to accumulate the position I want. When I read this PR I thought I might not get anymore cheapies but based on today's conversation I have increased hope.
Some very good DD posted. May I inquire as to the source of those comments? They appear to be from the minutes of a shareholder meeting or a personal email, hard to tell. As far as how I deal with the lack of follow-up information, well when it comes to creating expectations I typically drop ALL expectations from PR's that are more then a year old with no follow-up information. My guess is that the company has not made enough progress to PR it to its shareholders. These situations could resurface in the future but for me personally I discount them entirely.
Now as far as Mexico in general. Until the company physically sets up shop down there and builds a sales force from scratch or signs on a Mexican version of R&R I am not factoring revenue into my expectations. At least not anything on a recurring basis. Ok so in that good DD post it spoke of 3 potential customers in ALL of Mexico. That is the problem with trying to do business from the U.S. There are hundreds of potential customers in Mexico City alone. If they were to set up shop there they would be in the center of the urbanized Mexico and could expand outward as they grew their business. They could create a seperate subsidiary with a Mexican name and therefore market it as a Mexican company. That is the type of news I want to hear. I would continue to accumulate if they went in that direction.
I'd love to talk to the CEO for a few hours about where this company is going and where he sees us in say 5 years. Sometimes these small cap CEO's get stuck in the daily rat race of staying afloat and lose focus on the long term. Unfortunately I work a full time job and can't get away to have a chat, plus I have tried a few times and very few CEO's seem to care. But for now I am holding tight. I would not give up this one at these levels. It will be worth so much more as we continue to generate these small contracts and hopefully someday land a big fish.
110,000 shares for me. Sorry small fish in a big pond it seems. Either way I love owning this one. Let's go to $1.
I totally agree, we should see strong support at $0.075 (I'll be buying myself at that level). I was just saying that worst case we may see a few candlestick bottoms around $0.05 similar to the mid January day. Worst case that is. There is NO volume at these levels, which means no one is selling. Since I order hasn't filled yet I must assume that there are other people in with higher bids as well (so the interest is there but no sellers). I don't have L2 so I can't say for sure.
I run a small investment club so basically we look to buy solid pennystocks with better then average potential and build wealth over the longer term. That is why we are currently holding free shares of HISC and LFWK and accumulating BIGN on dips. I feel that LBWR will serve the same purpose as it continues to reach its business milestones. We need to continue to sign contracts and execute them and eventually the investor attention will roll in. The company needs to do a little better job of advertising their growth strategy to support the price level but that will come with time. I'm not spreading the word on this one yet though cause I have not yet accumulated my full position.
Correct me if I am wrong but the May 31st PR about the 57 units to Two Men and a Truck franchises is completely seperate from R&R sales recent success. R&R has definitely proven their worth. April sales were up 17% from last year and that was just from R&R getting started. May they logged 40 units sold. June so far 15 units. We should start to see at least 50 units a month for the the next 12 months (at least).
Based on information I received from their sales department that equates to revenues of $25,000 base unit sales, $1,250 one time activation fees, and $2,000 recurring monthly monitoring fees. I'm going to assume (worst case) that R&R does not mark up the PlanetTRAKS units and therefore would take say 20% off the top. Most likely they mark up the product and "resell" it. That still leaves $20,000 per month for the base units. I think PLKC would get ALL of the activation fees and monitoring fees since they provide the service. So basically we are looking at $23,250 the first month increasing by at least $2,000 per month as monitoring fees continue. By the end of this year alone that is a monthly revenue of over $35,000. Annualized that comes to $420K. Not a gold mine but definitely a great start for a company that was once thought to be dead.
Now those projections are ONLY the R&R sales. Have to figure the company will sign on a few other distributors this year as well as continue to add internal sales contracts. So we should realistically double those figures. IMO we should see over $1M in sales for the current fiscal year. That doesn't quite get us to profitability but it does provide that cash flow to prevent further dilution and sets us up for bluer skies. Hang on to your shares cause this one is going higher. Need proof, check out last August when a similar situation was mounting.
I know some of you longs are frustrated (probably an understatement) but this always seems to happen to stocks I get into initially. Now I've only been trading the pinkies for about 3-4 years, but I've done pretty well. Typically I look for underpriced value with a decent story. I've been successful with HISC, LFWK, IGTG (before the RSS), BIGN and a couple others. Currently LBWR is valued at about $11M. A few decent sized contract and we could easily see $50M-$100M. We do not have the solid investor base right now but hopefully that will change. Typically I set bargain basement purchase prices and when I get in it usually drifts even lower, but the fundamentals behind the company support it back to a reasonable level. We might see a low around $0.05 this week but only briefly. I'll continue to accumulate at anywhere below $0.10 until the funds run out. This is another one of those pinkies that likes to keep its shareholders informed. There is nothing more profitable, IMO, then small companies like this one. Patience is key here and those that have it will prosper and those that don't, well better luck on your next pick.
Here is the last few questions I have concerning the most recent financials.
6. Why is Labwire still carrying Credit Card debt? I'm guessing here but the best rate on a corporate card account has got to be around 8% while most are closer to 10%. Wouldn't it make more sense to open a line of credit secured by the company's assets to handle these capital requirements? LOC's run 6-8% easy.
7. Payroll Liabilities increased to almost $20,000. My translation of that is that their employees were not paid. It appears payroll expenses are growing faster then the company's ability to generate cash. That can be trouble unless management keeps this under control. Their next financial will tell the full story.
8. It appears to me that Marketing & Advertising expense moved to Travel & Entertainment. Hopefully this means the company has internalized its sales force. Instead of just paying people to blast out an advertisement this type of business requires a sales force to pound the pavement and convince companies that they need this service and that Labwire is the best company. That means more internal employees making site visits to customers. I compare this to HISC. When the CEO made a trip to the middle east there was a contract announced a few months later. So one could have made some decent money buy purchasing the stock when the CEO was overseas and selling following the announcement (if you are into that kind of swing trading).
I picked up a small starter position today. I think we shall see a base form around $0.10. Until the company is able to prove out its business plan. So keep those contracts coming.