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Fitting new symbol.....simply HORrID
It is not an opinion - it is straight out of the latest financials:
3rd quarter Sales = $ 5,692
Cost of sales = $ 13,988
Gross deficit = $ (8,296)
Nine Months Sales = $ 34,860
Cost of sales = $ 34,861
Gross deficit = $ (1)
http://quote.morningstar.com/stock-filing/Quarterly-Report/2014/9/30/t.aspx?t=PINX:OWOO&ft=10-Q&d=b0e285cf60d7f316922545c57ed08e0c
Nope - nice try though. The R&D component of the loss was relatively small ($93k for the quarter). The $1.5 million operating loss for the quarter comes primarily from G&A, interest expense, and dealing with the toxic notes - these are not "onetime expenses" and are ongoing in nature.
The negative margins are a result of selling the dolls at a price that is less than what it cost to make them. Selling more ($1.1 million) at a negative margin will not help "balance out" the proportionate increase in G&A, interest expense, and even more convertible notes.
Yes...firm grip of the wheel... http://cdn1.bigcommerce.com/server4100/sjl48p9/product_images/uploaded_images/kids-carnival-train-activity.jpg
How do you reconcile their "selling success" at a negative margin while racking up several million in overhead, G&A, interest expense, etc?
The release this morning states that company anticipates $1.1 million in sales this year - just in time for the Christmas 2013...er....2014....er....2015 season! The elephant in the room is how much will the cost of sales be to achieve that lofty target? Also, with the most recent quarterly loss of $1.5 million on sales of a meager few thousand dollars, what will be the exponential growth in operating costs with the corresponding sales of $1.1 million???
Nice day here!~.....for a haircut.....
Renee - thanks - as always you are right on top of things....unfortunately, nothing but crickets here....chirp....chirp.....
"Shock and Awe" turning into "Shuck and Owe".....
Ka-Rap...Ka-Ka...Ka-Fizzle...ayeeee Ka-Rumba
More on Carolyn Austin and her buddy Andrew Farmer: http://blog.rexsecuritieslaw.com/2014/08/28/sec-charges-andrew-farmer-in-connection-with-chimera-energy-fraud/
All Caps and in Bold (twice!)...it must be true (I read it on the internet....)!
Thank you for the acknowledgment. I landed here originally based on two long time scammers being associated with the company. The first being Carolyn Austin. Ms. Austin, and her husband Eddie Austin Jr. are long time SEC recividists who have been involved in a number of penny stock scams including SSLR that was suspended by the SEC: http://www.sec.gov/litigation/litreleases/2012/lr22501.htm
Carolyn was originally listed as one of the early beneficial shareholders of OWOO.
The other person that brought me to this stock is OWOO's current Director, Robert Hines. He has a long history of joining the Austin's in their scams, most notably as CEO with SEC suspended EVSO: http://www.sec.gov/news/press/2011/2011-120.htm
It comes as no surprise that after I followed those two miscreants to their connection to OWOO, that they have associated themselves with like minded individuals - notably convicted felon, Trent Daniel and his prior antics: http://www.ripoffreport.com/r/trent-daniel-and-imagine-international/houston-texas-/trent-daniel-and-imagine-international-engenyx-software-corporation-does-not-pay-vendors-h-524771
The only "Huge Developments" anticipated this coming week (Feb 23) is whether "Hot" Charlie F. Potter (reference: http://ih.advfn.com/p.php?pid=nmona&article=64821054 ) will have sold enough OWOO shares at a profit in the recent run up to dismiss the tax evasion/foreclosure suit pending with Harris County (Case # 201416895- 7: DEUTSCHE BANK NATIONAL TRUST COMPANY vs. POTTER, CHARLES FRANKLIN (AKA CHARLES F))
Just curious....do you also believe in Russian Mail-Order brides?
Looks like you followed the ole' "Buy the Rumor" (Oprah!) and "Sell on the News" (No Oprah!).....
I like this pic from ToyFair.....time to hire a world class photographer: http://ow.ly/i/8FAal
The Five Stages of OWOO's Marketing Strategy:
Stage 1: Excitement, Euphoria
Stage 2: Disenchantment
Stage 3: Witch hunt for the Guilty (evil shorters, bashers)
Stage 4: Punishment of the Innocent (new shareholders)
Stage 5: Distinction for the Uninvolved (World Class Management gets a bonus and more Preferred Shares)
Reverse Split, lather, rinse, repeat....
Congrats - good trade! Best of luck to you.
Please share with us the math on margin requirements that would lead you to conclude that OWOO is profitable or even rational to short at this price level. Here is a hint.... http://investorshub.advfn.com/boards/read_msg.aspx?message_id=109286418
Since it is "so obvious", please also share with us your rational on claiming there is "no resistance til .05".
Blakechaos - the Company publicly stated in September/October 2014 that they were receiving $800k to pay down 1/2 the debt and to eliminate/reduce the toxic convertibles by the end of the 3rd quarter. http://www.investorideas.com/news/2014/toy/10151.asp
This is the same type of promise they made a year earlier with third party funding out of New Mexico for about $500k - we found out that was a lie too.
Both objectives they promised simply didn't happen.
In fact, the lawsuit with Darling shows that in this same time period they signed a negotiated settlement agreement to do away with their convertible note at a nice discounted rate. Literally days later, they defaulted on that deal which resulted in the lawsuit shown as still pending with the NY courts.
OWOO came out later with yet another promise saying that they have already begun plans to reduce the debt and the convertible notes. We will not be able to see how successful they have been on that venture until Mid-May when the 10K comes out, but why should we believe them a 3rd time??
The O/S shares are being printed at a blistering pace:
8/14/14: O/S = 25.8 million
11/12/14: O/S = 48.9 million
12/15/14: O/S = 151.4 million
2/13/15: O/S = 205.5 million
Regarding the doll sales....the 1st nine months showed a paltry $35k in doll sales after getting into HEB, Walmart.com, dollgenie.com, etc... These "sales" were offset by cost of sales that resulted in a negative $1 gross margin. This is before the $6.2 million loss in operating costs, G&A, interest expense to get to that point. The point being is that it doesn't matter how many dolls they sell - if you can't sell them at a positive margin, the company will never dig itself out of the hole. As you say, "it has never been about the dolls".
That pretty much sums it up...rare earths, gold mining in Alaska, computer recycling in Chile, cannibis....what is next?....3D printing.... oil & gas fracking....telemedicine.....iphone apps.....??
Just another Kathleen Delaney, Robert Federowicz, Thomas Cloud, Eddie Austin scam for the next sucker....er....bag holder....to come along on this POS.
If the Company cannot sell the dolls at a positive margin, what good does volume get you??
Also - as a footnote - Quality Stocks was hired by OWOO back around 9/15/14 for a 150 promotional effort. That 150 days is/has come to an end this week, marking the likelihood they will begin to cash out....just my observation/opinion.
Long enough to make a negative margin in the 3rd quarter on sales:
http://quote.morningstar.com/stock-filing/Quarterly-Report/2014/9/30/t.aspx?t=PINX:OWOO&ft=10-Q&d=b0e285cf60d7f316922545c57ed08e0c
Gross Sales = $5,692
Cost of Sales = $13,988
Gross Margin = ($8,296)**
**Before incurring a net loss of $1.5+ million for the quarter on operating costs, interest expense, G&A, etc.
sampa - unfortunately, your comments will go unnoticed by the euphoric rah rah posts here claiming the stock is "undervalued" (based on what - negative gross sales margins, expanding interest expenses and top heavy G&A??). The reality is that despite claims to the contrary, the company is clearly entering into more convertible debt as evidence from the 2/13/15 sc 13g filing which shows the latest 15 million shares spewed out brings the O/S shares up to about 205.5 million. What is lost in that filing is the fact that the previous sc 13g filing on 12/15/14 showed "only" 151.4 million shares. So if you take into account this latest 15 million, there is yet another 39.1 million shares that slipped into the piggy bank since December. We will have to wait long after this current run is over (mid May) until the next 10K comes out to sort thru the (new) mess they have created. I am sure the carnage of new bag holders will be scratching their heads as to why the few who day traded this into a nice tidy profit are no longer around to post....
The lender situation sampa is referring to are the two pending lawsuits in New York State against One World Holdings. It has been rumored/reported on this forum that these suits have been settled, but according to the website they are still pending/active:
https://iapps.courts.state.ny.us/nyscef/CaseSearch?TAB=name
(search under "Name" for "One World Holdings" for the Business/Organization
The two financiers sued OWOO for breach of contract - namely not paying them the shares they are due under the terms of the conversion. OWOO has not filed a response that is recorded, but stated in their last financials they intended to do so and further admitted they were delinquent on a number of notes.
These two suits do not include the pending Alief School District tax evasion suit against Trent and Sarah Daniel, and Elizabeth Melton - pretrial conference is set for May 15 in 133rd (Harris County) District Court: http://www.hcdistrictclerk.com/eDocs/Public/Search.aspx?Tab=tabCivil (search Daniel, Trent).
The $16 million debt number being thrown around is more accurately the accumulated deficit: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=109158000
Regarding deficits, as of 3rd quarter, their immediate needs showed they were $5.4 million in the hole to cover working capital needs - this was the immediate cash needed to fund ongoing operations, sales, G&A, promotional activities, interest expense, etc....
Regarding Eastmore....they are another toxic convertible financier. According to the filings, with their 15 million note, they hold 7.3% - this translates into an updated O/S of about 205.5 million shares - up from 151.4 million (an increase of 36%) since Dec. 15.
good news - the most recent lawsuits for breach of contract apparently did not scare off more convertible notes
bad news - the most recent lawsuits for breach of contract apparently did not scare off more convertible notes
HotCharlie - perhaps you missed my previous post on the logic/math behind shorting penny stocks and why your statement is simply fantasy: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=109286418
Yes - no one doubts the Company can sell dolls....but again, the issue is making a margin. The Company made a NEGATIVE $1 gross margin for the 1st 3 quarters of 2014. The most recent (3rd) quarter showed the company was getting further in the red - the cost of sales greatly exceeded the gross sales. This is before factoring in the operating costs, interest expense, G&A, and payback of convertible loans (or litigation costs to forego repayment).
More on the CEO -
Robert Wilson – VP of Finance at BFLS:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=38914886
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=110071201
Robert Wilson – CFO at SSLR:
http://www.mysanantonio.com/business/article/SEC-sues-Sunrise-Solar-3913787.php
Robert Wilson, former Board of Director at SEC suspended Gulf Ethanol (GAEC/GFET) - as you say...."do the math"....
https://www.sec.gov/litigation/suspensions/2009/34-60410.pdf
http://www.marketwired.com/press-release/gulf-ethanol-welcomes-robert-wilson-to-board-of-directors-862305.htm
Robert Wilson and FINRA: http://www.finra.org/Industry/Regulation/Notices/1996/P004935
Harris Webb & Garrison, Inc. (Houston, Texas) and Robert J. Wilson (Registered Principal, Sugar Land, Texas) submitted a Letter of Acceptance, Waiver and Consent pursuant to which they were fined $10,000, jointly and severally. The firm also must hire a full-time financial and operations principal and Wilson must requalify by examination as a financial and operations principal. Without admitting or denying the allegations, the respondents consented to the described sanctions and to the entry of findings that the firm, acting through Wilson, failed to comply with the (k)(2)(ii) exemption under Rule 15c3-3 under the Securities and Exchange Act of 1934, as amended. The findings also stated that the firm, acting through Wilson, engaged in a securities business while failing to maintain its minimum required net capital.
An Oklahoma Bar: http://tx.findacase.com/research/wfrmDocViewer.aspx/xq/fac.19950320_0000033.SCT.htm/qx
D-1521 IN THE MATTER OF DISBARRMENT OF ROBERT J. WILSON
It is ordered that Robert J. Wilson, of Ardmore, Oklahoma, be suspended from the practice of law in this Court and that a rule issue, returnable within forty days, requiring him to show cause why he should not be disbarred from the practice of law in this Court.
Their auditor was noted here in this SEC release: http://www.sec.gov/news/pressrelease/2015-9.html#.VNjDsPnF8b0
"The price point is inline with the market." - so how do you reconcile that the dolls are selling at a loss - the latest financials prove this point: http://ih.advfn.com/p.php?pid=nmona&article=64388840
3rd quarter gross sales = $5,692
3rd quarter cost of sales = $13,988
Gross margin = ($8,296)
1st nine months 2014 gross sales = $34,860
1st nine months 2014 cost of sales = $34,861
Gross margin = ($1)
The above negative margins are before the $6.2 million net loss before taxes for the 1st 3 quarters.
Yes...let's revisit the "ton" the company has done:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=109158000
O/S 500% +increase since last quarterly report - definitely more tons of shares.
Accumulated deficit = $16 million tons
Sales increased to $34k on a ton of dolls resulting in a negative $1 gross margin.
$911k in a ton of operating expenses for the most recent quarter
A ton of Working Capital Deficit = $5.4 million
A ton of $544k advances made
20,000 shares of Series AA Preferred Stock were issued to each of the four members of the Company’s Board of Directors - resulting in a ton (actually a LOT of tons) of voting rights = 800 million shares
A ton of potential 2014 Stock Options - Bonus plan for the World Class Management Team
A ton of caveats (like "We do not have sufficient cash at September 30, 2014 to fund future operations ").
Having "tons" of endorsements, TV appearances, ToysRUs, Walmart, etc....will never amount to anything if they cannot sell their product for a profit.
Regarding ToyFair 2014 - history appears to be repeating itself for 2015...there was lots of PR from the company about 2014 being the breakout year, getting out of the "dilution zone", bringing new products to market, cartoon series, etc, etc....
If you pull up the chart (http://www.google.com/finance?q=OTCMKTS:OWOO) for February 2014, you will notice a slight bump from $0.20 to $0.275 (for one day the week after ToyFair on minimal volume) and then it falls off the cliff unabated for the remainder of the year dropping 99.3% of its value.
I see the same thing happening this year - lots of euphoria about a few more square feet of booth space, new line of accessories, even a cameo by Vivica Fox....all followed by the realization that the company gave away its inventory at cost, making negative $1 gross margin while carrying a bloated G&A to support the must-have world class management.
Again...this was never about the dolls...it is all about selling shares.
Yup - Michael's brother is Timothy....they even recorded music together: http://michaelfranklin.com/bio.html
VMRI smells like a rat trap to me.....
The O/S shares continue at a runaway pace....simply breathtaking when you look at history:
8/13/13 - 0.337 million (post split adjusted)
11/18/13 - 1.098 million (post split adjusted)
4/14/14 - 21.857 million (aftermath of the R/S - a 1891% increase was snuck in there)
8/14/14 - 25.880 million
11/12/14 - 48.870 million
12/15/14 - 151.433 million (as shown in SC 13g filing - tripling what was shown a month earlier)
Those in the know have reported here the number is now approaching +/-200 million - a 4 fold increase since the most recent 10Q.
For the highly anticipated robust Christmas sales, these will not be reported until the next annual report - due May 1 (assuming no extension).
Regarding your sales prediction, it really doesn't matter if you are right or not if the margins continue to be negative....
I am not overly optimistic, since the 3rd quarter sales were only $5692 - this was at a time when the big box retailers would have been loading up, no?
Maybe they can hold a garage sale too....
About 8 total trades for the day resulting in about $1600 trading hands....the Vivica Fox PR effect was absolutely breathtaking today......at least they made back yesterday's haircut....
BMA Securities - more on them here: http://www.pumpsanddumps.com/2013/08/a-closer-look-at-awesome-penny-stocks.html