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Is it just me or does Eagle Energy feel like the real potential star of the new INMG...if I had more time I could write a long thesis on its potential just from the hour or so I’ve spent looking into it, but it will only take 1 winner from the 11 business lines to make us all some nice money.
Great DD LittleBambi! This has me thinking my $1M revenue guess is way too low!
Plus they’re doing “extreme” athlete sponsorship type things and positioning themselves as an alternative to dangerous energy drinks...my guess is Eagle Energy conservatively is $1.2m revenue (120,000 units at $10 a piece), Weedies is at $500k (guess) and the other 3 businesses total to $500k per year (infusional, popcorn, forget the 3rd...).
If $2m revenue we hit .02 no problem (possibly .04)...we just need to establish those revenue amounts.
Volume is pathetic, but it seems more indicative of a locked float (no one buying, no one selling)...otherwise my .054 and .050 orders would fill (which I would love).
So Weedies is CBD products?? Because everything I’ve seen on their swag and products makes it look like good old THC pot...
Riding a close to 50% loss here but I don’t take the price as gospel when the volume is this low...it will have its day, so I’ll wait with you.
Yes trash volume...only two options at this point...1) patience and wait or 2) sell...
Otherwise not worth getting frustrated over...good things will come in the next 6-12 months.
The company is great: growing sales, slick website, professional approach, but the stock “got out over its ski’s”...
I’d love to buy back in, would just like to see it in that 18-20 cent range...afraid to buy here after its recently touched 20...
So little to actually talk about at this point and just speculation both for and against the stock...yet there’s hundreds of posts a day...
I just picture a bunch of grown men across the country typing away as they sit on the dumper...I know that’s the only time I check this thing.
Deals are often announced when their closing is just a formality but the binding aspects of the deal have been inked...I believe you may not have experience with business transactions or how they work in practice but this is quite normal.
There are some very helpful resources on the internet that might help you understand mergers and acquisitions and the basics of how they and other business transactions work.
No you’re correct, there won’t be that stampede...without further PR to shed more light on the deal, it appears the market is placing a value of $0 on this transaction...(price and volume pre and post transaction are identical).
That leaves investors to make a decision: is the present value of all future cash flows from Demand Brand product lines and the enhancements to the enterprise that will come from the management, audit, potential uplisting and board positions = $0? If so, the price already reflects this. If there is some future value > $0, then the price is artificially low and this is where buying opportunities exist.
Markets are typically rational in the long term but can be irrational in the short term...I (and others you can see on this board) believe the market is being irrationally pessimistic in the short term (which may be for months) and this presents a buying opportunity.
The response I would expect
Here’s a total guess on my part (speculation)...basically you’re asking what did Demand Brands get as compensation as part of the acquisition:
1). Preferred shares (stated in PR)...I will assume it converts to 90 million shares equal to Tom’s ownership (my guess)
2). They get to take DB public for “free”...this can otherwise be a costly and lengthy process if DB tried to do it itself
3). I am guessing that some of the non-core assets sold will be from INMG with a commitment that they be reinvested into the 6 DB businesses
4). Access to the LocalCannibisDispensary client list where they will make a pitch to start selling DB company products
5). Instant access to capital markets (see #2)
6). Access to Tom Coleman’s connections, experience and resources
7). They will be part owners now so if they see INMG as an underutilized set of assets (because we know Tom has his faults), they now have ownership in underperforming assets which they (as better operators) can rehabilitate and share the upside in.
8). Possible succession planning...I think Tom’s in his 70’s and he may step out of the way soon and leave them to run the whole company while he just stays on as a shareholder and board member (?)
Anyways that’s a scenario in answer to your question...they didn’t just “give away” the company...I view this in practice as behaving more like a mutually beneficial merger (though named acquisition because the non-public company needed to fold into the public company)...
Either way they stated that its non-dilutive in the short term (and the authorized share structure even shrunk 40 million shares after the announcement) so the shares we held prior to the acquisition have to be worth more than those pre-acquisition because of the value of those 6 entities (IMHO)...
Excellent DD...makes sense!
They mentioned selling non-core assets...of their 11 business lines any thoughts on which ones those might be (if any)...I’m thinking they sell Lux Digital Pictures
Oh cool the world’s first trillion dollar stock valuation...who knew ANDI would be the most valuable stock in the world, think I’ll quit my job, sell my house and buy ANDI stock
Buying is only coming on financial results...which will come...but in the meantime its just nice buying opportunities for those that believe...
Too bad they spelled visit as “vistit”...someone may have been on the product when they made the video.
I agree with a previous post, a big part of this deal is the strength of the management team coming on board
https://www.demandbrandsinc.com/our-team/
I’m invested in another stock with no product but its got a really strong team of advisors and it was valued at $100 million at one point on the hype...
True, sell the popcorn for the munchies and the Eagle Energy with its “vape” angle would probably sell well there also.
And Infusionals, Weedies and Oil of Sunshine can be sold, distributed to the 500 or so dispensaries listed on local cannibis dispensary...
Exactly...and if each revenue stream only produced $200,000 in revenue on average, that’s $2.2 million in revenue annually and we’re then trading at 1.0x revenue multiple...
They don’t have to do much of anything given this product line for the numbers to start supporting just how cheap this stock is.
No but investing in it will cause clinically diagnosed wealth creation and jubilation...
We just in the last few days got the biggest news since I’ve been invested!!! He just gave us a huge gift! Eagle Energy has sales, product on Amazon, a NHL hockey player promoting it, cult following and unique product...
Hit the reset button...today is a new day at INMG
No way...this stock has one of if not THE cleanest share structure on the OTC and NO DEBT...
Tom Coleman, CEO, owns 90 million shares, he is not going to go out and “screw the shareholders” (aka screw himself)...he collects no salary, his incentives and the shareholders are aligned.
This is really great and makes a lot of sense...Question...access to capital...there’s only 100 million shares left of unissued common stock...is this all of their “gun powder” they have left in terms of getting capital or what are their other options?
Per the 10Q, as of May 7, 500M authorized and 291M outstanding, float 172M...as of July 20, 460M authorized, 360M outstanding, float 172M...
Was the new issued shares tied to: a) paying down the small debt (didn’t PR say debt was paid down), b) issuance tied to the old deals like Kush/Night Flight/etc?....
This here is a total guess...could they have issued Preferreds that convert to the same 90 million that Tom owns and then lowered the authorized so that no more shares could be issued?
What’s people’s read on Note 6 of the financials?
From the Eagle Energy Twitter:
Due to cont'd demand for Eagle swag (thanks @BizNasty2point0) the t-shirts (white and black, $35) and hats (black, $25) are available for sale until next Friday ONLY. Please email your payment info (CC # & Expiry) as well as your desired item/size to info@eagle.energy.
We’re going to make so much money on INMG!
Whoa they sell from THC cereal bars to vapes to backpacks and socks...Weedies is a legit business...their website has a phone number...does someone mind calling them to ask where their products can be found? Maybe we can get some sales info off them?
Can you provide the link to their Twitter? I don’t see it...
Nope
Ok so assume Eagle Energy only did that...sell 10 $26 packs a day on Amazon...that’s another $100,000 in annual revenue for INMG, increasing its existing revenue by 50%...from just that one item but there’s numerous other revenue streams and distribution channels...but yet the stock price remains flat...
Ultra-ultra conservative we would see revenue double to $400k per year (though it will be much more) and the stock is valued around $1.6m depending on the day, so trading at a multiple of 4x revenue under extremely conservative estimates...
The few faithful longs here are sitting on a goldmine, just be patient.
No its appears its actually a new way to cause wealth creation and stock appreciation.
I bought 50k more today and will continue to buy if it drops more...ready to buy another 800k shares at the right price so there’s SOME buyers out there.
I celebrated this Amazon find by buying 50,000 more shares for .0058 today...I guess I’m just a sucker for a really good deal!
Will probably take two quarters to see the impact (since acquisition happened after 6/30/18, but nonetheless this is a hidden gem and I’m buying more...I have no time agenda and others longs, if patient, will be very happy.
Yes I wold be shocked if the people didn’t come along it’s the company...like any consulting type company, the people ARE the company...
Excellent credentials by the WEWI team...they wouldn’t allow themselves to be acquired by a “OTC Pink Scam” as some claim ANDI is...they must have seen synergistic possibilities in this acquisition...WEWI is a big wildcard here, but the list of clients, employees and areas of research are major league....I’d say that’s worth a flier for $.0044 per share.
The press release says they’ve engaged an audit firm, you have no basis in fact to assert that they will not be audited. This assertion is unsubstantiated speculation.
Perfect! If it tanks lower I can buy up to my goal of 1% of the float on the cheap! What do I care, I’m not selling and the float is not being diluted and they’re going to be audited and now have all those brands with Demand Brands...great!
Fine with me Harry! Why would a long term investor with vision for what they’re doing here care about short term daily movements like “weak bids” and “lots of selling”...a year from now those so called concerns will be irrelevant.