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Oh my!
You are misreading your own cut and paste.
Stage 3 comes AFTER stage 2.
Ouch!
WOW!!!!
"To get the Patent Pending designation they search for similar devices and or products including prior art."
-Incorrect. The patent office has not even seen the application at this point.
"They recieved the Pending status so it is a pretty safe assumption that they will have a "defendable" (key word) position regarding this product."
- Incorrect. The patent office has not yet reviewed the application and won't for a long time... maybe 18 months before an examiner even opens the file.
"This tells me that because he has received the Pending status he had to show that his product was sufficiently different either in its use or it's design."
- You are absolutely 100% wrong factually here. No human at the USPTO has even opened the envelope at this point.
Patent Pending is granted when the patent is filed. It is granted for ANYTHING filed... blindly. I could file a patent for the iPod, and the patent pending designation would be awarded! 100% guaranteed!
What today's EXPH news REALLY means legally.
What it means:
1) EXPH has filed for a patent. It can be a Design (nearly worthless), Utility, or just a Provisional patent. They did not specify which in their press release. There are differences in each, and mean different things.
2) EXPH has NO patent protection whatsoever. Patent Pending status does not afford any rights to EXPH.
3) Patent Pending only takes on legal value after the patent application is published which is generally 18 months after the (non-provisional) patent application is filed... and the value even then is very limited. Prior to that, it is just a piece of paper.
4) Until the actual grant of the patent (if ever), EXPH can't even stop someone from selling an identical product.
In even plainer English... the news is meaningless.
If you bought on this news thinking it actually means something... you made a mistake.
Next week may bring big news, but today's release sure isn't big news.
Investor Ignorance
Investors confused a patent pending with an actual patent which would be years off (if ever).
Without real news on Monday, I believe that EXPH will sell off. This gain is based on investor ignorance of the patent process.
This could only happen by this PR coming out EOD on Friday. They could have released the news prior, but chose instead to do it EOD Friday. This is intentional manipulation, IMHO.
I will do my best to put this news in the proper context on all the boards over the weekend.
My goal is an informed investor, nothing more.
Southern Candle again
"Both owners of Souther Candle were in attendance at the shareholder's meeting and both stated the purchase of more EXPH shares."
That was in July. Maybe it was true then. The big seller emerged in August 8/7.
I don't see how you can rule them out as a seller based on a July conversation. We know the acquisition has not gone through after about a year, and bad blood over that could have arisen. Additionally, maybe the candle business has tanked with everything else and they needed to raise funds.
If there is additional information, please share it. Otherwise Southern Candle can NOT be ruled out as a seller based on a July conversation.
Southern Candle Shares
You stated that "Southern Candle is NOT selling any EXPH shares they are BUYING more"
What is your source for this information? I think it is reasonable to ask posters who post previously undisclosed information on the board to at least tell us its source so that we can determine if it is indeed accurate.
EXPH won't miss the 15th launch date.
It is 100% within their control. Whether or not they will have a retailer lined up is another story. If JD announces the new product and says something about "negotiating with various retailers" to sell it... it will be a battle to see who can hit the SELL button the quickest, IMHO.
No one has asked JD about Southern Candle yet?
I'm not a shareholder, I shouldn't be the one to make the call. If no one cares, fine... I'm just trying to help!
As a large stockholder of EXPH, they "could" be the seller. Just throwing that out there as they would not be insiders and they have a lot of shares.
Wallyworld
Here is a company that won a store fixture making bid with WMT and announced it 2 weeks ago. Note the video of a real shop that is actually busy!
http://www.wlbz2.com/news/local/story.aspx?storyid=108474&catid=3
Were WMT contracts issued 2 weeks ago?
Did EXPH make the final cut?
Also please take note of JSI's growth rate projections.
What do we know about Southern Candle?
JD announced last year that they were one of 3 acquisitions planned, and they were just 2 weeks away from completing the acquisition of Southern Candle. Credibility aside, it never happened, nor did the other two.
JD reported on the June 8 CC that Southern Candle was still a LARGE shareholder in EXPH. He also claimed that they were still a potential acquisition. What is their affiliation, and how did they end up with a huge chunk of EXPH shares? Anyone know?
We have seen what appears to be massive selling by some very large shareholder. Could it be Southern Candle? Anyone have any insight into this?
It has been posted here that many on this board have done significant DD on EXPH. Why am I told to call JD for answers... don't individuals here know these answers?
The purpose of this board to discuss the company and EXPH as an investment. I'm puzzled by the reluctance to discuss certain topics openly.
The FACTS on a line of credit
Actually what you just posted proves that they DO NOT have a line of credit with Wachovia/Wells Fargo. It was one, but it was revoked and turned into a long term loan.
The $1M invoice factoring is not a line of credit. You can not borrow against it.
I really don't understand the insistance here and on other boards that these are lines of credit, when they absolutely are NOT lines of credit.
This is more than symantics. The definition of a line of credit is:
"An arrangement in which a bank or vendor extends a specified amount of unsecured credit to a specified borrower for a specified time period."
Or this one: "A credit arrangement in which a financial institution agrees to lend money to a customer up to a specified limit. A line of credit, generally arranged before the funds are actually required, provides flexibility for the customer in that it ensures the ability to meet short-term cash needs as they arise."
Both the $1M invoice factoring and the long term loans do not fit this, or any, definition of a line of credit. Even Crestmark has to put the term "line of credit" in quotes because it is not one. They could get sued if it wasn't in quotes. If you don't follow this, just ask yourself... why is it in quotes?
Why do you think that EXPH repeatedly uses the term "credit facility" to describe the $1M loan?
I know, acknowledging that EXPH does NOT have a line of credit is damaging, but it is the truth.
Let me phrase this as a question... if EXPH needs to borrow money, do they currently have an agreement in place with Wachovia, Wells Fargo, or Crestmark in which they can borrow money?
"Financing will NEVER be a problem."
- That is speculation, not fact.
"With relationships in place with Wachovia"
- Wachovia took away their line of credit and financed the balance into a long term loan. It is now long term debt, not a line of credit. They can not borrow on that line any longer... at least as far as what is public information.
"Its important to keep in mind that loans will be increased based on future net profits and purchase orders."
- Potentially, but that is contingent on things that have not happened yet, and there can be no assurance that they will ever happen.
Line of Credit
I'm still hoping that someone can address the issue of whether or not EXPH has a line of credit. Their $1M limit on Invoice Factoring is not a line of credit, and the banks closed their $350-$400k line of credit and consolidated them into long term loans.
As far as I can tell, they have no line of credit at all that has been announced. Am I correct?
BTW, congrats on the recent share price increase.
Ever hear of Brass Bulls Corp?
From an EXPH news release earlier this year:
"In going forward, the Company has retained Brass Bulls Corp to assist with investor relations and increasing the company's transparency. BBC received a combination of cash and restricted stock for a 3-month engagement. [] Expo will continue to have access to its $1M line of credit with Crestmark Bank."
- Note the inaccurate use of the term "line of credit" not in quotes!
From Brass Bull's webite:
"Internet Exposure
Brass Bulls will effectively market your company on the internet. Your company will be discussed on numerous message boards and be featured on a number of financial related web sites. We will also monitor the Internet for a “feel” of the investment community’s sentiment on your company. Once we are able to understand the investment community’s concerns and questions, we will be able to address the issues that may be keeping potential shareholders on the “fence”."
What is this saying? Basically, EXPH has hired a company to promote their stock. The company does so on internet boards... i.e. PAID PUMPERS!!!
This is factual public information.
http://www.brassbulls.com/public-relations.html
The FACTS about Invoice Factoring and EXPH's $1M "LOC"
Invoice factoring is not a line of credit for a business, it is a cash advance. It is only a LOC for your customers because it allows them 30/60/90/120 days to pay.
With factoring, if you have no invoices, you can not get any cash advanced. EXPH can not go borrow money against it to buy supplies to build a customer's order.
Here is an example of how invoice factoring will work for EXPH: If EXPH wants to build a $100k order, they need to front (their own money) say $50k for materials. They then build the raw materials into cabinets, let's say at a cost of $40k. They ship the cabinets and send the customer an invoice for $100k. At this point the factoring company will advance them, say, $80k of the $100k invoice. When the company finally pays the invoice, EXPH with get the balance (less fees) of $15k - $18k depending on the terms. So in order to build only a $1M order, EXPH would need maybe $500k in cash on hand. Do they have it?
With a REAL LOC, if EXPH gets the same $100k order, they use the LOC to fund the $50k in materials, and only pay interest on that $50k for the time between when they borrowed it, and when they paid it back. Not only is the fee paid smaller, there is no up front cash required by EXPH. Additionally, if they needed $1M for materials from an actual LOC, they have it immediately.
From Crestmark's OWN webite (where EXPH gets its factoring):
"Your "Line of Credit" grows as your business grows"
- Note the quotes around the term. Why do you think it is in quotes? BECAUSE IT IS NOT AN ACTUAL LINE OF CREDIT!
Read about it from the source yourself:
http://www.crestmarkcapital.com/LearningCenter
It scares me that so many "facts" are thrown around here that are innaccurate.
Correction!
"12. Only 150k used of a $1mil LOC"
Stop repeating this! The $1M is invoice factoring and not a LOC (line of credit). HUGE DIFFERENCE!
400M shares
The link in my last post is very clear... is shows that D&D was bought for 40M shares (x10 on split)= 400M.
http://www.pinksheets.com/otciq/ajax/showFinancialReportById.pdf?id=9374
Is there something about it that you need further explanation on? Do you dispute these data?
30 days has well expired!
JD said we'd hear who the 10,000 unit customer was with by now. Why is everyone ignoring this obvious hit to management's credibility?
Posting unrelated pumping messages won't bury this.
And using the NDA argument won't work either. He said within 30 days with full awareness of the NDA. 30 days is 30 days! Obviously something has not gone per plan!
Just the facts please
"DDD was always JD Browns company from it's origination, so if there were ever any shares tied to them, they would be included in JD's personal holdings which he states is somewhere over 100m common that are restricted.. "
Well that doesn't jive with other data that we know to be true. D&D was given 400M shares when they were "acquired". Where are the rest? There is a great deal of difference between 100M and 400M shares! Where are the other 300M?
This is public data... even presented right here on the board!
The link is on pinksheets.com and anyone can't find it. 2006 SEC filing.
http://www.pinksheets.com/otciq/ajax/showFinancialReportById.pdf?id=9374
400M shares
Thanks for the DD Ryoko. Looks like 400M shares of EXPH is what D&D received. Additionally someone received about 70M shares to cover a promissory note. No mention of any restrictions. The seller could be either one.
10 for one split... 40M = 400M!
Low float?
700M shares (estimate) is a VERY LARGE float.
I'm still hoping to get some more discussion on the post on selling theories. Thanks to those that chose to add their thoughts, but I would also like to hear from some of the more frequent board posters.
The source of the high volume of shares being traded below bid is absolutely paramount to understanding how EXPH will do as an investment. If it is a seller that has another 100M shares to go, any rally will be immediately squashed.
Bulldoughzer asked "If the large seller wants above .013 why wait till now ?? He could of sold much higher weeks ago?"
- Ever try to sell 100M shares at market :)
Ryoko said "It also doesn't make sense that if it's a retail seller looking to dump large quantities of shares at a limit price that the best bids are getting skipped."
- Good point. However, with large blocks it can be a negotiated swap outside of the bid/ask at a discount. I think this is what it is, IMHO.
Churn
So let's explore the assertion that the volume and large blocks are MM churn. What do they gain by it? Why do they always do it below bid vs. at bid? What do they gain by walking the shares down? Why do they not take it below the current support area?
Let's explore the assertion that the volume is MMs or someone else shorting. If they know the company is about to hit some awesome PRs, what is their goal? What is their exit strategy? Why do they think the shares are headed lower?
It seems to me that the most logical explanation for what we are seeing is that there is a large seller who wants $.013 or better for their shares.
Intelligent defenses of the assertions expected...
The massive selling
Because of the large amount of shares being sold, I am still convinced that JD knows who is selling, because only a few people could possibly own that many shares. The seller must certainly be connected to the company in some way to have acquired that many shares.
But most importantly... why are they selling now? The public has been told about all the wonderful stuff coming in the next 2 weeks... why sell 100M shares now? The feared answer is that they know something that the public does not. I hope that is not true.
rseil
Unfortunately, you really have no legal argument, the trade was an error. If you read your original agreement with them, there is probably something in the fine print about that. However, if you are a large customer, or are at least very vocal, they may make a settlement with you. Either way, I genuinely wish you the best of luck.
All the talk of shorting is just talk
There is no evidence, only conjecture of any shorting going on at all. I personally do not believe that what you are seeing is anything other than massive selling and the MM doing his job.
Click on the "short interest" tab.
http://www.pinksheets.com/pink/quote/quote.jsp?symbol=exph
Shares short:
Aug 14, 2009 3,000
Jul 31, 2009 294,445
Jul 15, 2009 5,000
Patent clarification
"Prior Art is the event of a person introducing a working process or product via an identifiable venue before anyone else."
- No, that is called public disclosure.
You have one year from public disclosure to file an actual patent and still retain all rights to the invention. This is espercially relevant to EXPH, because lack of a patent filing IS NOT a reason not to unveil the product.
"IF the the developer of the process or product does NOT have a patent or patent pending then there is the potential for an infringement lawsuit by the developer"
- Of course. That is why companies should file patents. However, if the original company has publicly disclosed the product, even if they have not yet filed a patent, they retain all rights... providing that they do file the patent within one year.
In the The RIMM case it was $612.5M, and they lost because NTP had a patent. RIMM unsuccessfully argued that there was prior art to NTP's patent and that it was invalid.
Start with SEC compliance
It would be nice if they could just file current audited SEC reports. Getting rid of the yield sign alone gives them more credibility.
Being on the OTCBB alone will not move the stock up. Don't bank on it for a bump.
You are mostly correct 5star
I would not use the phrase "greatly discounted prices". I have never done one at a 50-70% price level. Real companies (in my experience) do it in the 10-30% discount level. I have heard of companies doing PPs at the 50-70% level of discount, but I have never seen one that didn't HAVE to do that to get investment dollars. If what you believe is true about EXPH, they wouldn't have to either.
Still, the money does go directly to the company, buying the stock on the open market does nothing for the company... except maybe help the share price.
"I doubt you could show me one PP facilitated at current share prices in any of the OTC(BB) markets.."
- No, I can't. I wasn't suggesting that was ever the case at all.
Private Placements
I have taken an ownership stake in several companies, but I did it through private placements, not by buying open market shares. The company gets nothing from an investor buying open market shares, while they get 100% of the cash from a PP for working capital. If you are going to make a serious cash investment in a company, this is how it is done.
I said before that I wondered why JD didn't go the PP route if he really has the goods?
Renee,
I hold a dozen patents myself and am intimately familiar with patents and the patent process. That said... I have NO idea what you are talking about here.
"ANY company that establishes PRIOR ART simultaneously to a patent application has all rights to enforcing the patent against patent infringement , even a few years later upon patent approval . Patent Pending status is powerful just because of the international regard for PRIOR ART."
"Prior art" is just previous public information that is used to get a patent or claims disallowed by the patent office. Are you misusing the term? No disrespect intended, I have respect for your posts. I'm just trying to understand what it is you are trying to say.
Counting Chickens
What is the use of cheering foreign licensing revenue for a product that has never been seen, has not sold a single unit, does not even have a retailer signed on, and has not, and will not, receive a patent for years?
REALITY:
IF the product sells
IF the company gets a patent
IF the patent actually is granted solid claims preventing knockoffs
IF some foreign companies want to license the product
THEN Expo may make a few bucks a couple of years down the road.
JD knows, he has to!
He knows EXACTLY who holds the big blocks of EXPH shares. It isn't like someone is short 75M shares. The flood of shares is coming from somewhere, and the seller(s) is not a bunch of retail people dumping a million shares here and there. Someone is liquidating a mountain of shares... there can only be a few possibilities... all of which would be known to JD.
JD Knows
"Selling sure. Who? Who knows."
DD
"and what is your suggestion specifically re: dd where expo is concerned"
Well, if I was going to put any real money into EXPH, I'd fly out to NC and meet JD and hit him with REAL questions, not softballs. If I didn't know what I was looking at (I would), I'd bring along someone who did (paid consultant if need be). I'd meet all key players in his organization and talk to them 1 on 1 to determine their qualifications. I would ask the CFO to provide me the same credit references that he uses when applying for credit from a bank. I'd demand to know the REAL status of the 982M shares. Who owns them, how many are restricted, etc. I'd pull a D&B on EXPO and D&D. I'd do criminal background checks on all key people.
If I was putting a few dollars into the stock like a lottery ticket, I'd listen to the CC, read the PRs, read any SEC filings, and maybe call the company.
You lost me 4k
Please just answer the question if you know the answer.
You are saying that the explanation of "targeted" in yesterday's PR was explained in the CC a month earlier? Do you at least have a link?
Doesn't that also mean that after a month there has been no change in status, and they STILL have no one to retail the product?
What does targeted mean?
"The company has initially targeted Lowe's Companies with whom we have a long and storied relationship."
I missed that. "Targeted" is certainly not the same as having an agreement with Lowes to sell the product!
So they do not even have a retailer signed on? And they're launching the product in 2 weeks? No wonder the shareprice is falling!
10,000 piece order?
Wasn't that supposed to be announced by now? Wasn't it supposed to be a "done deal" just waiting for lifting of the NDA, or was it contingent on something?
On the pink sheets, CEO credibility is everything.
Need to update your list
"2)NEW PRODUCT REVEALING,SEP.15TH.AND WHO WILL BE THE RETAILER CARRYING IT"
Half of #2 is known... Lowes.
Yes. Targets like $100M in sales would take many years to achieve (assuming it is possible, which I highly highly doubt). The rest of the business won't even hit $20M in a year per existing plans. A $.05/share price values the company at $50M, which is more than generous.
Just the FACTS
I stick to facts, and believe that educated investors need to be aware of the pros and cons of an EXPH investment. EXPH has very little factual information available on which to do DD. DD is not just reading a company's PRs, and listening to their CCs. That is only a small part of DD! Using just those for DD is blindly believing something you are being told by someone who is financially incented to make you see things only positively.