says, "Companies that trade on the OTCBB will require Cash/Cheque. "
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DD, you have a good grasp on the PP
Except I think they are 5 year warrants. Check me on that.
Expanded book light revenue guesses? No clue. However, I think the new business will have two dimensions: Increased revenue, decreased margins.
Capstone pulls down a gross margin in the mid 40s percent today. Private label sales and the use of rep firms will lower the GM, my guess, while raising overall sales.
What's the bottom line? We need to wait and see; give it 6 months.
Break even revenue calculations today: Figure $500K operating expenses. Figure 45% GM. Break even revenue = $500K/.45 ~ $1.1M per quarter or around $4.5M for the year. Anything less, and they make losses.
With the new rep firms, and the private label deals, figure lower blended margins and higher revenue.
Bottom line is anyone's guess. We need to wait to see. I think Howard did a good job selling the future. Stock prices certainly recovered. STP is still an unknown. It would help to know what they intend to sell and where.
Regards
An outstanding PIPE offering
is a great time to ratchet up the PR.
They've done precisely that, and did a pretty good job for a few days last week.
Was it enough to sell all 29M shares? We'll find out eventually.
Good Job, Howard!
Please, Steve, no one is short this stock
That's just a lie you pumpers tell. It's the Evil Shorts that hold down this great performing company!
Weeeeeeeeeeeeeeeeee!
Regards
Weeeeeeeeeeeeee, Steve
Let's hear it.
Regards
Why would the Promissory Note
be dated August 19/20, 2007?
Unless that's a typo (in at least two places), it looks like another small loan from Howard.
The only thing I can find about the $250K Promissory Note was one owed Dato. Maybe Howard ended up holding that after all the CPS stuff was unwound.
Regards
OK, I guess it was not a typo
The PR and the SEC filing both mention a promissory note dated August 19/20, 2007, for $50K.
Howard lent another $50K to the company, unless I misunderstand.
Also, from the amount of shares he converted, he would maintain a 50+% majority up to an O/S of around 585M shares (someone should check the math, and confirm/refute).
I take these data points to mean the PP has not been fully subscribed yet.
Hope they touch on this tomorrow.
Regards
American Bulls says
on the confirmation question:
"Reminding briefly; a white candlestick with an upward gap, a white candlestick closing above previous close and a long white candlestick with a big downward gap is sufficient to confirm the BUY-IF alert though with a one day delay. Go long in any of these cases by respecting the benchmarks. In any other case, simply ignore the BUY-IF alert. The next session is the last chance we allow for confirmation. A confirmation failure renders the assumed bullish pattern totally invalid and starts the process of searching for a new pattern."
Since there was no gap up or down, you're looking for a close today at .014 or greater.
I think candlesticks are a bunch of hooey, by the way, at least with respect to CHDO. What Howard has to say tomorrow trumps anything the candlestick nonsense has to say.
Regards
Yeah, the capstone convertible was 9 cents right?
So, he retired $250K of that, then there's the $575K loan he just made that converts at 2 cents. $50K of that appears retired now.
Regards
Conversion at 9 cents is great too
Even the $50K conversion at 2 cents! I think I predicted some debt to share conversion, because Howard will want to keep 50+% of the outstanding shares.
Minor quibble with the PR. They make it seem that they eliminated all the insider debt, but Howard is still owed more than the $300K he retired, right? $50K off the 2 cent convertible still leaves $525K, right?
Regards
Hey, that IS good news!
September launch? That's quite a change from a November 1 introduction.
If the products are in the stores in September, that should mean tomorrow Howard can tell us all about the product line. That will be good information to digest.
Well done, Howard!
Regards
Regurgitated is a fine word
And an apt description of what you did.
You took in information that you did not understand, and did not notice was for Friday's close.
You then posted it here, without attribution.
I call that regurgitation.
And now American Bulls has updated their analysis:
"Today a White Opening Marubozu was formed. This shows that the day opened and then the prices continued to go up all day long without coming below the opening level thus forming a long white body, however prices did not close at the high of the day and thus they created an upper shadow. "
and:
"The BUY-IF alert is still valid. A confirmation today however is denied. The pattern is not rejected yet since the day was not a long black candlestick one. The market is currently testing your patience. Continue to do your homework by digesting all available information around."
You regurgitated that from American Bulls
http://www.americanbulls.com/StockPage.asp?CompanyTicker=CHDO&MarketTicker=OTC&Typ=S
One problem. That was for yesterday. Today was the confirmation day.
As you can see from this chart, there was no confirmation of reversal:
http://app.quotemedia.com/quotetools/getChart?symbol=CHDO&chscale=1m"eBox=true&chtyp...
Doh!
756,150 shares traded .0125 x .0130 .013 last
290K shares went near the close at the ask; someone must think Howard might say something good on Wednesday.
Regards
W%R -85.71 50 day MA
slips a tick to .018.
I guess the upside to that is it's an easier target to hit now, right?
Regards
I get the feeling it was a special item
bought for that Father's Day promotion. As we saw, that deal fell through for some reason, and B&N substituted a competitor's book light.
Maybe they never intended to carry the new book light as a regular item; they certainly don't at this point.
They also certainly do carry at least 3 Capstone book lights still, per the website.
Regards
.0125 x .0130 .0130 last 466K shares
And, Lucy, he's been right
more than wrong. When your opinions turn out to be right, is it still bashing?
Is it possible to be negative on a bad investment/gamble without being labeled?
Regards
Odd, it was featured on their site as of August 6th
and now it's a special order. Hey, maybe they're selling like hotcakes!
http://64.233.169.104/search?q=cache:qJQFu1KiMuYJ:www.barnesandnoble.com/home-office/home-office.asp...
Never mind
That's where you got the Add it to your Cart button.
Available or not? Not available, special order, ships 3 to 5 weeks, but not sure how to special order!
Wonder if they're available in other stores...
Regards
It's a special order product
Add it to your wish list and get this page:
Description Availability Cart Remove
* Black 2 LED Travel Flipneck Booklight
*
* Price: $9.95
Special Order: Ships 3-5 weeks
Regards
If you search Barnes and Noble's web site
You'll find it turns up 3 book lights under the Capstone name, out of 26 book light hits. Crowded market.
Their newest book light shows as out of stock for me:
http://gifts.barnesandnoble.com/search/product.asp?z=y&ean=9780641809293
Regards
Book lights are a stable to slightly declining business
with $600K in sales through 6 months. Because of overhead, it's not enough to show a profit.
STP and Sound Body/whatever they end up calling it are the proposed future revenue/profit drivers.
Howard says they won't tip their hand on the new products, because competitors are watching.
You either buy that and the shares, or sell.
Your call.
Regards
Probably someone reapportioning their hurricane money
Had Dean gone to the north, it might have been different this morning.
Howard and/or Stewart better bring the meat on Wednesday. I think everyone has had their fill of STP fluff by now.
Good luck, DD!
Regards
Yes, the 211 is filed by a market maker
But if the financials are done, why not let everyone see them?
File them on Pinksheets and remove the Stop Sign.
Regards
Here's a Wild Idea
If they have the financials ready for the lawyer on Monday, why not file those with Pinksheets.com (or, dare to dream, the SEC)?
That way, everyone is dealing with the same information. It would also remove the Stop Sign on the pinksheets web page.
We can hope, right?
And given the projected revenues for the CPS business
it was trading about 5 or 6 times projected revenue.
Today, given a $1.9M 2007 revenue figure, it trades roughly 5 times revenue.
Funny how that works out.
Wait for the CC. Maybe they have some magic to share.
Regards
Under promise and over deliver
"Hopefully produce acceptable results in the next 6 months"?
That's a long time to wait for STP to pan out. Maybe he's setting the bar intentionally low. After the "Over promise and Under deliver" OBS tile sales, that might be a welcome change.
Still, I wouldn't count on any STP revenue this year. Losses in 3Q should increase ***my guess warning*** as some of those executives joined about half way through 2Q.
I would put revenues for 3Q for about the same as 2Q, with expenses (full quarter salaries) rising about $30~40K. That makes the loss for 3Q about $300K ***in case you missed it, entirely my speculative calculations warning***.
In the 4Q, even with the Christmas season, and revenue rising to $800~900K, I still show a loss for the quarter. Gross margins are in the mid 40s percent for Capstone, so gross profit of around $400K still won't cover quarterly opex. I guess at the loss for 4Q being $100K or a bit less.
For the year, it adds up to a loss of between $900~1000K ***again, my guess warning***.
Regards
Oh, from the He Got It Wrong Dept.: I think I predicted they'd increase the A/S by the time the earnings came out. Obviously, I blew that one.
Still think it's coming, though.
That may be
but before they become a shell again, they would have to clean up their balance sheet (liquidate assets and discharge debt).
Might want to get an accountant to ball park that for you.
Regards
They lose money, Lucy
Color me not impressed.
Show me the STP products and the revenue projections.
I'll reserve judgment until then.
Regards
Lucy,
You have no idea how successful the PP is yet.
Wait until they tell us it has sold out.
Would you pay them .017 for shares today, that you couldn't resell until they register them?
I wouldn't.
Topic suggestions:
1) It's not a shell. No R/M.
2) Still no revenue. Since inception.
3) $4M impairment charge on their main asset, the music library.
4) After the asset impairment, Liabilities exceed Assets by a wide margin.
Discuss.
No rush, DD
The discount was fixed when they did the PPM, 15% to then prevailing bid price of 2 cents per share, or 1.7 cents.
The size of the PP is fixed at $500K, so, fully subscribed, it will mean about 29.4M shares get sold (with restrictive legends) at .017.
Along with those 29.4M shares, will go warrants to buy 29.4M shares at .017 per share, within a 5 year period (expires sometime in 2012).
When exercised, it will mean another $500K for CHDT, and another 29.4M shares in the O/S.
Salve was right about the warrants, by the way. It's a way to entice accredited investors to buy your PP. Otherwise, why would you pay .017 for a stock that's been trading between .013 and .019 since the PP was announced? Remember, the PP shares will be restricted until registered.
I'm not totally sure the PP has sold out yet. They will tell us if and when it does.
Regards
10KSB out
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
The issuer's revenues for the year ended April 30, 2007 were $0.00.
The aggregate market value of the 1,008,117 registrant's common stock held by non-affiliates as of August 31, 2007 was approximately $30,244.
State the number of shares outstanding of each of the issuer's classes of equity securities, as of the latest practicable date: 11,547,522, shares of Common Stock, $0.001 par value per share, outstanding as of April 30, 2007.
The PP info is in Exibit 4.1 and 4.2
http://www.sec.gov/Archives/edgar/data/814926/000093980207000236/0000939802-07-000236-index.htm
Looks like the sale price was .017 per share, and an equal number of 5 year warrants go along with that at .017 per share.
Someone want to check my read of Exhibit 4?
$500,000/.017 = 29.4M shares
Regards
10QSB out
389,436 revenue
(271,394) net income (loss)
I could help you with the math, Lucy
No notice of CC yet. Isn't that odd?
Perhaps another 12b25 is on the way. Can't see why one would be necessary, though.
Regards
Look for a CC announcement this morning
10QSB for 2Q2007 due today. If that's going to happen on time, they'll want to discuss the results tomorrow, right?
Regards
Is that a Fact?
Got that in writing? If he was able to sell today, wouldn't he have a few days to file the Form 4?
How are you so sure that he didn't sell today?
(I don't think he did sell, but I'm not the one claiming it as Fact).
Think Bart Fisher is gearing up to sell? He dropped 2M shares last earnings report, right?
Regards
What kind of nice coins?
Dimes? Each will bag you around 7 shares of CHDO.OB currently.
Load em up!
Regards