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Never seen anyone screaming "revenues are missing" on samples placed with retailers via distributor. Who places 15,000 units and invoices retailers for such? Totally ridiculous.
If samples were requested from retailers, it is still considered an order and a P.O. issued so you are wrong.
Do you understand that buyers issue purchase orders for samples to first measure what kind of sell-through rate a product will have before moving forward with additional purchase orders that generate revenues for PLKD? It is perfectly fine that PLKD announced orders and additional orders. Forward looking statements containing expected revenues are fine as well. It is common practice to place samples with various retailers to test the market, and retailers interested in samples do place purchase orders. Geesh.
BURBANK, California, November 26, 2013 /PRNewswire via COMTEX/ -- Pleasant Kids, Inc. (otcqb:NYBD) ("AQUA" or the "Company"), is pleased to announce the execution of its first agreement with a Southern California distributor, under this agreement our Southern California distributor will place product in supermarkets such as Whole Foods, Trader Joe's, Vons and represent the company to independent distributors like Unified Grocers. This agreement is the commencement of the company's 2014 major markets national rollout campaign. The company entered into this distribution agreement on 11/20/13. As per the contractual agreement, shipment commences by first week of December 2013. Our first PO is for 15,000 units to hit supermarket shelves during December. Our projections for this market during the first quarter of 2014 are for over $250,000.
$VPOR's focus for next year ought to be on building its brand. Brand loyalty matters and will continue to matter in this sector as it does in the "cigarette" sector. We're looking at c-products where once consumers take a liking to a brand, "switching" is less likely to occur and consumption remains relatively consistent among existing customers and organic growth can be achieved through acquisition of new customers. Some larger e-cig players have paid tens of millions $$ for "brand" itself because with a strong brand comes repeat sales in this case.
And that this sector is still at its infancy and highly fragmented, we will see consolidation at some point and the player that is able to grow revenues consistently alongside its brand will get acquired hence I like you look at VPOR's potential acquisition value. It's already in the $50 million, IMHO. Grow revenues to $12 million next year with further entry into the MJ market, VPOR becomes even more attractive -- perhaps not immediately to Big Tobacco but a bigger e-cig player or two.
It's all about potential. VPOR has it for sure.
This L2 action actually does look like share buyback has commenced here. Perhaps someone convinced Rico that it's better to have a third party initiate it now at these levels vs at a higher price later. Very interesting.
Thank you for this post. I was doing a review of a company called Hardware which had a similar asset structure and even more debt than VPOR when it was acquired for a transaction value of $23.67 million. The acquirer paid $12 million towards trademark and existing customer relationships, the latter which is more important. If we were to look at VPOR's assets and liabilities together and compare them to Hardware, VPOR has considerably more overall value even now. Even with revenues of $5 million for 2014, this means that $VPOR's current acquisition value would be 2x 23.67 million or close to $50 million.
Only ignorance would scream "dilution" and ignore the overall value VPOR has now and could have next year. This is why $VPOR is exciting to own.
What is the big problem if ECIG closed red? Sometimes it closes green, sometimes it closes red. No problem. Shorts already covered if you haven't seen it. ~4 million shares on REGSHO FTD is no big deal -- this probably belongs to one of the broker/dealers.
$PLKD: "we are very close to adding a very large scale client."
Before Rico did the A/S reduction, he probably contacted LG Capital. This lender, relative to others, is on the friendlier side so if a debtor had intentions to pay off the note on the due date, they will honor it. In order to make changes to capital structures (stock splits in either direction), issuers have to notify lenders at least 30 days in advance. Since PLKD went ahead with the A/S decrease, I think there stands a very high chance of LG being paid off from $$ from the investment banking firm in the picture.
It is not "news flash". What $PKLD most likely has received from an investment banking firm is what we call a term sheet. It depends on which firm Rico is talking to. An MOU--although not common practice--can be executed especially if this transaction (yes, it's one transaction, not an agreement to do a raise up to a XXX amount of $$, hence a retainer fee/% of total transaction fee is not necessarily needed) is contingent on the broker/dealer receiving certain financials and/or proformas and dual NDAs being executed. So, sorry to correct you again.
It's just the way that this particular lender, LG Capital works. As long as there is an outstanding note out there, they require that issuers keep on reserve with the T/A an allocation due to them, marked at par as minimum allocation.
LG Capital normally does not convert, they will accept payment in lieu. Additionally, they also require a reserve be allocated for conversion. The A/S has been reduced here so I believe arrangements have been made to settle with LG.
I am merely pointing out that if PLKD had plans to truly reduce its O/S via a share repurchase program, it is better off executing an alternative strategy which is to have an ibanker do it since one is already interested in giving the cash and to execute a general tender offer. Why wait and do it over the course of one year? Do it now, do it over the next 10 sessions and be done with it. This is really the most effective way to do it and nothing says "thank you" louder to patient and loyal shareholders than this.
When considering all scenarios, and if Rico still went with a share buyback over a course of one year, that would actually raise a red flag, right? Someone is willing to give him money already for it.
This is why it is important to assess info from the shareholder update. For the most part though, it really was a very strong update.
I will agree that Rico has been doing a great job as of late. The corporate update released this week is very convincing and it appears $PLKD could be going places soon enough.
As a courtesy to $PLKD shareholders, I'd like to suggest that one of you share this post with Rico about share buyback. I'm sure he's been advised of Rules concerning a % that could be repurchased so the opinion of some that repurchases take a long time is indeed true. Since Rico is already in discussions with an investment banker to receive a portion ($400,000) of the $1,5 million in financing to be used in a buyback, it is actually more efficient to have the investment banker effect the buy back and exchange the repurchased shares for redeemable preferred stock at 2X CAP over 8 quarters. This offers the ibanker a serious incentive as well as protection. Simultaneously, this accelerates the buy back and reduction of O/S. If there is an interest on the part of the ibanker to give $400K anyways, this route is really the best way to go and such proposal should be made.
At 0,0004 range, we're looking at retiring 1 billion shares for $400K which is significant. As an additional consideration, Rico ought to pull a shareholder list and see who owns what or better yet, announce an offer to repurchase directly from existing shareholders in exchange for preferred stock -- nondilutive, redeemable and dividend paying. Open share purchase under a Share Buyback Plan sounds great but in practice, not as effective for an issuer like PLKD. If one were going to be done, now is the time to do it...
Interesting developments here for sure.
Disclosure: watching / no shares as of today
Looks like NEWS on ECIG.
ARCA is being extremely aggressive here today ahead of stated shareholder update from the company. If noteholders represented by ARCA are converting a bigger threshold that would require them to file a 13, we could see news within 4 days. I'm betting my money in the direction of news on ECIG.
FONU has a higher chance of movement up post R/S than hitting bids here at 0,0001.
It did about 3MM so far so I think it's close to being done for this session and allow the stock to breathe. Corporate update should be coming soon as per the CEO's email.
$ECIG
Looks like ARCA is done for this session. That was some serious leaning by ARCA but also serious buying. $ECIG.
[edit: spoke too soon, maybe a few more...LOL]
She might go here. VPOR -- watch it close and get ready to take VNDM out.
VNDM size showing and hits knocking it down. All dilutors back to 007 and above. $VPOR -- watch this close now.
Doesn't L2 look like stops are being taken out? What do you see?
So if MMs are manipulating ECIG, they'd do with shares--price goes down, they're introducing more supply right? I think ECIG's price depression has much to do with the dilution of the 4% notes that gave the holders a 30% discount off of VWAP and shorts taking advantage. But the tenet that charts do not matter in OTC, I disagree with.
I don't think it's a laughing matter or a bad event on FONU. In evaluating R/S, one has to look at convertible debt level which the company said is ~$50K. Most likely, the balance will convert before the R/S goes through.
Isn't supply and demand what "builds" a chart so why wouldn't a chart in this exchange be meaningless?
Not very nice at all, indeed. I think they could have financing already lined up which is why they filed the 14c. FINRA would approve the R/S only if there was a definitive plan to warrant the corporate action. In FONU's case, there is ~$50K in debt left and potential financing commitment based on some correspondences I read. Long term, this could benefit shareholders not hurt them, hence there could be a silver lining here somewhere.
I hope this to be the case for those who will choose to hold.
I gave notice to the board that I was exiting last week due to dumb trading I saw hence I do not hold a position here. This does not prevent me from providing an objective comment on what I foresee coming here.
If the O/S and float adjust to 2.5 - 3MM shares, any positive news can send the stock flying.
I don't think current shareholders are in trouble here for reasons I gave before. This is a different situation from your bag Medient/MoonRiver which still has million $$ in convertible debt which won't even get approval from FINRA because of the potential to rinse and repeat dilution and hurt shareholders further.
Why would I ask if Shapiro's shares reverse? Do you know any preferred stock that doesn't have anti-dilution protection? Sheesh. Shap's shares are locked though so no need to worry about that for now.
Gotta hand it to Roger Miguel and Shap though -- quite insensitive and careless releasing a 14 during the week of Christmas. Talk about a very misjudged move. Not a good way to gain the much needed trust that was lacking. #assholes befits their move today.
That is no one's argument. Your argument was that shares weren't being absorbed at/near these levels which I corrected. Also, kindly note that you do not call a fully reporting issuer a "pinky."
Agree 100% on all points. $ECIG. Let's have a great day.
What does the share price not being at 1c have to do with your erroneous and false statement that diluted shares have not been absorbed at/near these price levels?
Do you have proof that VPOR will never see 0,01 again based on the chart? How does one predict such? Even tripzzz without any revenues go back to a penny. oh-kaaaaaaaaaaaaaayyyyyyyy?
This thing is not absorbing dilution at current price levels.
approximately 79,000,000 (93.5% prox.) shares issued from debt conversions initiated by various holders of convertible promissory notes. Although the Increase is dilutive to our shareholders, it represents a reduction in the overall outstanding balance of the Aggregate Convertible Notes Payable of approximately $300,000 and therefore is of benefit to the Company in terms of a reduction of its debt burden.
It's not a good thing when volumes are through the roof and the price is down.
If $FONU had $1 million in convertible debt left, this would be a totally different story. No such thing here so I think this adjustment to O/S and float is actually very positive. It is my understanding that FONU has ~$50K in debt left which I think they ought to allow conversion on the rest of December. This makes FONU a very low floater to look at for 2015 and takes a lot of bidwhackers out of the equation going forward. I decided to close my position last week on FONU because of silly trading on the stock but will be returning post split.
I do think FONU will be able to uplist to the QX tier because effecting this corporate action really, really sets their books in the right direction to obtain equity financing from institutional investors.
GL, Gooddolphin and those willing to hold.
$FONU -- I generally do not like R/S announced however in this case, it could actually shake out well for existing shareholders because the company has confirmed that it only has a tiny bit of debt left for conversion which they are negotiating either conversion on or payment according to some correspondences I've read. This R/S does not seem to be the typical "rinse and repeat" to dilute more convertible debt simply because there really aren't much left to effect such.
A 400 reverse split here will adjust the pps to 4c and O/S and float to 2.5 million shares. Ahead of some potentially great news such as announcement of cast for the film, I believe $FONU could present a great risk/reward opportunity post split.
Accordingly, I will be taking a second look at $FONU post split or even consider picking up 0,0001s here if people want to sell them.
$VPOR is trading very strong here, flushing out day traders. This one is not for day trading, perhaps for skilled swing traders. This one is a "study, accumulate at a snails pace and wait" for fundamentals to confirm type of play. Slow and steady wins the race here!
This is one time it is ok to ignore the DT 1485 IMHO because there is very little wiggle room to maneuver here for a buy back in and one will end up increasing its position slightly higher than his/her buy in which actually increases risk if we have more retards not paying attention. At 2-5% gain/loss, it's like splitting hair at this point and it's really not necessary. Hold shares tight.
$ECIG.
$ECIG is trading very, very tight so unless one is a skilled trader, flipping is not recommended at this point because an update could come any time soon and those looking to get back in will end up chasing. Thanks for the 124s today though.
plenty of time left in the session for VPOR. Just needs to go through the motion here. Wondering who crushed bids.
Added 124s on ECIG.
BMAK finished and back to 0041 now ;) Keep watching L2, you can see what's going on.
I like VPOR-- it's movement is very predictable.
Take care.