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I think the program is to enlist shareholders of record to play this winter on the Aurus hockey team in the Russian miner league.
What I would like it to mean is that current shareholders, or shareholders of record, will be eligible to receive a cash dividend. New investors buying shares after the list is compiled will not be eligible to receive the cash dividend.
Current investors will be rewarded in proportion to the shares they held as of the date of record.
Call it wishful thinking, but that's my translation.
Would be nice to see this close above .003 after the recent slide. Any official word from the Company will do the trick.
With the shareholder list and their bill with Transfer Online paid off, they are free to issue a cash dividend. That would take the share price back to where it belongs. Thanks, Moldy.
Thanks Buddy. What kind of special protection do you think they are referring to?
Would anyone like to try to explain this statement from the website found under Investor Relations?
"After publication of the financial reporting company Aurus Corp. Inc. will submit to shareholders the Program of attraction, protection and increase of investments.
By the current moment Company has settled relations with the transfer agent and has possibility operatively to receive the register of shareholders. For date which the company will define and will get across to shareholders, the register will be generated and the right of priority of participation in the program operating shareholders will receive. Only after that, access for participation in the program will be received by outside investors."
This will start to turnaround as soon as we get some news from the CEO in relation to sales in China. If the product is selling well, that means there is a market, and we are exploiting that market.
Shareholders have so many questions that it will take a while for them to all be answered. I think it would be a sign of great transparency if D. Silvas were to explain the purpose of increasing the number of authorized shares.
With a couple of phone calls this morning, I was able to find out that shipping one forty foot container by rail from Montreal to Vancouver would cost $2,500 Canadian. That comes to less than .06 per bottle. That may seem high, but it is offset by the cheaper rate of shipping from Vancouver to Shanghai as opposed to shipping from Montreal to Shanghai.
You're right, AP. Anyone buying at .0025 yesterday is already ahead of the game. Now that D. Silvas has returned from China and is settled back into the driver's seat, we should be hearing from him soon.
I spoke to someone from the Company yesterday, and all I can say is, he sounded rather enthusiastic. He hinted that we could see something on the blog before we see a press release.
The product has been on the shelves now for one month. Very soon, we should be getting a report mentioning how sales are going. Is an Aquagold spring water buying spree underway, or are the bottles moving slowly? Are people buying the water by the case, or are they using smaller packaging? How is the sample tasting project progressing? Is the fifty man sales force making new customers? Are there repeat sales, and are stores reordering?
I'm sure the CEO will inform us shortly about the recent success of Aquagold in China.
Obviously, you don't agree with the whole concept of selling Canadian bottled spring water to China. So why are you here?
Crow, do you know the cost of shipping a container across Canada by rail? If you don't know, how can you say it is not cost effective?
Let's be clear on one thing: the demand in China is not for Australian spring water. The demand is for Canadian spring water, and that is why it was brought into China during the Olympic Games.
If you want to be even more cost effective, why don't you suggest to Aquagold to just bottle Chinese spring water? You know they have spring water there too, right?
The market targeted by Aquagold is the ever-growing affluent Chinese community. I don't think they will mind paying two or three pennies more to get their favorite premium bottled spring water from Canada.
Look for news on the Aquagold blog before a PR comes out.
You'd still have to pierce your ear to wear it.
You read my mind.
Very good news, DOS. Time to buy, if you've got the powder.
It is quite common that a Company will pay for professional services with shares of the Company's stock, for example, legal fees or accounting fees. That may be one reason why the Company increased its authorized shares.
Let's take the hypothetical scenario of a buyout offer. You would probably take that as good news. But the Company will have huge professional fees to pay with little cash available, so they issue shares to pay those fees in lieu of cash.
It's like wearing a diamond earring. First you have to suffer a little pinprick when your ear is pierced, but then you can wear the diamond. Similarly, an increase in authorized shares may sound threatening, but it is a means to an end, the end being the growth of the Company or, under the above scenario, the sale of it.
But let's not make this a one-sided presentation. Take the scenario where the Company is being sued. To defend itself, they hire a team of attorneys who agree to work in exchange for shares of AQUI. Aquagold then has to increase the number of shares authorized so they can pay the attorneys to defend them in court. Aquagold wins the court case and its share price explodes. So you win again.
There are a million scenarios you could visualize, so why dwell on the negative side. Because there is no certainty at this point as to what is taking place, one is advised to not be over-invested in risky pinksheet stocks. You risk what you can afford to lose, but don't be upset if the Company whose stock you purchased does not release information when you want it to because of its sensitivity, because the timing is not right or for some other reason.
I don't think we can say with certainty what was the exact purpose of increasing the authorized shares. There are probably many factors that would justify their decision to do so. In general, companies need to have some breathing space between the number of shares authorized and shares outstanding.
Of course, there is no dilution until authorized shares become issued and outstanding, and it is true that once issued, they can be bought back by the company and even retired.
With a Company like Aquagold, based on the proven integrity of its management team, we can safely say this is not a typical pinksheet move to cheat shareholders out of their money. For all we know, they could be negotiating the acquisition of another business in exchange for AQUI shares. Or, as you said, they could be acquiring short-term funds
to finance operations until payments start rolling in from China. What we know is that they are doing what they have to do to accelerate growth of the business.
If every time someone sees an increase in authorized shares they panic, they should not be in the stock market. The capital structure of every company is dynamic, not static, and a growing company has to make use of all of the resources it has to stay ahead of its competition and take advantage of business opportunities when they arise.
Contact page on their website is also open but doesn't seem to be working yet. I could not transmit my message.
See message 86655 for link to State of Nevada website. It shows increase in Authorized Shares by 250M. Dilution does not occur until the number of issued and outstanding shares increases. That information should be available from the Transfer Agent when it occurs.
With a developing business as young as AQUI, there could be many reasons why PR's slow down or stop for a while, especially since the release of news requires the undivided attention of the CEO before it can hit the wires.
On one hand, new growth opportunities may be taking up his full attention: working on new contracts, training an expanding sales force, negotiating with shipping companies that are making bids for AQUI's business, etc. On the other hand, there may be problems that need to be resolved which also require his full attention. Present challenges could include, for example, obtaining financing, dealing with the Chinese government, problems with production, legal issues, and so on.
Then, there is the possibility they have decided that releasing news at this moment is not in their best interest, either because it would not be the best use of limited funds, or because the information to be released is sensitive. For example, quarterly financial results and contract terms may still need to be checked by their legal team and approved by the Board of Directors or other third parties before being released.
Whatever the reason, I hope we hear shortly, and I hope it is overwhelmingly positive news. If we find out that the Company is facing unexpected challenges, we should follow closely to see how the situation is handled.
Financials from the third quarter and other news in the pipeline may not "catapult" AQUI into the stratosphere, but if we can continue to inch up through the end of 2009, I think shareholders who are long will be happy with that. The big jump will come when trading volume multiplies and is sustained. One really never knows when that will happen, and that's why I wouldn't plan to leave now and come back later.
Well done, DOS. Some third party confirmation of new information posted on the website will be a real shot in the arm for AURC, especially if it concerns a joint venture.
I couldn't find out anything online about Geosphere prospecting. Maybe that's not the correct translation of the Russian name. Or perhaps they are just not well known outside of their particular region.
I may be mistaken, but I believe Zoloto means gold. HaydenZoloto may not be related to Zoloto Ventures from the Hilbroy Advisory newsletter.
Anybody else able to find out anything about the other joint venturers mentioned on the website?
Nice bounce here this morning. Must be big news in the pipeline.
York Tang may have advanced some of the money. The purpose of the 504, at least in part, was to repay him about $100,000 for promotional expenses.
Domingo Silvas is expected back in the office today, from what I read here. I'm sure we will hear from the Company this week.
Thanks, AP, for hanging in there through thick and thin.
Your best post in quite a while, DOS. Actually, the company has promised a cash dividend in the past, but only came up with a stock dividend which didn't help the share price at all. At least Aurus let us know they are able to work with their transfer agent. Now, it's time for them to reward the loyal owners of their company, the shareholders, with a dividend payout.
Money talks, nobody walks. Let's keep them to their promise. In reciprocation, I will promise to reinvest half of the dividend in AURC stock.
There are pelnty of Australian companies selling bottled spring water, but the Chinese don't want to get their premium bottled spring water from Australia. It is not true that all spring water is the same. Canadian spring water is know the world over for its superior quality. That's what the affluent Chinese people are looking for. And that's why the organizers of the 2008 Olympics arranged to get their bottled water from Canada. Too bad Aquagold was not ready to handle that contract, but we are now.
I agree with you Grant. A Canadian company selling premium Canadian spring water is an excellent business concept. Posters who really don't know anything about running an international business should forget about suggesting deceptive practices to save a few pennies on shipping. It's all about supply and demand. The Chinese upper class wants the best product and will pay a little more for it. Aquagold has the goods and knows how to get it to the consumer. Go Aquagold!
I didn't know this PR had appeared in Medical News:
http://www.news-medical.net/news/20090919/Reality-television-series-helps-to-increase-AQUAGOLD-Internationals-brand-awareness.aspx
Aquagold has to meet some critical challenges. One of them is to obtain major financing to alleviate their short term illiquidity and overcome the limitations arising from undercapitalization. They also must continue to promote their product by educating the Chinese public as to the health benefits of pure Canadian spring water. The third thing they must work on is to fine tune operations to make the business more profitable.
One thing they don't need to do is change their water source. Why get your water from down under when you are already getting it from up above?
I'm looking forward to an important news release after the boss returns from China this week. I've sent him a couple of emails to express my concerns as a shareholder and I hope he addresses at least some of them in upcoming PR's.
I hear your concern, AP. A start-up enterprise like Aquagold is too risky an investment for 99% of regulars in the stock market. The other 1% has about 10,000 choices where they can put their money.
I believe this is a situation where you can get in on the ground floor, buying at the same price as the company founders, and reap huge rewards over time. Important strides will be announced over the next few months concerning contracts, financing, product placement, promotion and, yes, revenues. Aquagold is on the right path and simply has to keep pushing forward.
Plant an acorn in the ground and a big oak tree grows out of it. It could take years to make a fortune, but all we have to do is sit back and watch it grow. Domingo and York Tang and Company will do the rest.
I know. The short term chart is horrendous, but hopefully we have hit bottom and that will attract buyers.
I wonder if that $15,000 in income was a partial prepayment on the first container to be shipped -- 1/3 in advance, 1/3 on delivery, 1/3 after 30 days -- something like that. Otherwise, I have no idea what that $15K in sales could represent.
A year from now we'll be laughing at how everybody was so concerned about the first $15K in revenues that appeared on the financial statements. We could easily see 4th Qtr sales revenues approaching one million dollars, but not if it's taking 90 days from the date of delivery to get paid. In that case, it will be only a few $100,000, representing the invoiced value of shipments delivered by Sept. 30.
As far as I am aware, the Company hasn't really announced the terms of payment (30 days, 60 days or 90 days) except that payment is guarantee by an irrevocable letter of credit. Many companies exporting water to China make deliveries on consignment, but Aquagold has arranged much more favorable terms. Their revenues from five containers carrying a total of 216,000 500ml bottles of pure Aquagold Canadian spring water will be reflected in the fourth quarter, if not partially in the third. Either way, total revenues will be a lot more than $15K.
With the passage of time, each quarter will show increasing revenues, and I still predict that total revenues from 7/1/09 through 6/30/10 could surpass $10M.
It would be thoughtful of them to include in a PR an announcement of the first payment received, just as they announced the arrival of the first container shipped to China. It is an important detail in building shareholder confidence. I don't think it is a good idea for them to withhold that kind of valuable information until they post the next quarter's financials. I will mention this to Domingo.
If they are reporting financials on a cash basis, they will not show accounts receivable, only actual revenues from sales,
which won't amount to much for the third quarter.
They must be working on something huge in China. Any possibility a PR could come out before they return on the 26th? Would certainly be nice to get some fresh information sooner rather than later.
Okay, I'll look for your analysis later on. I'm just trying to stay on top of the game and ahead of the crowd.
Also, EVRM's stake in STS is 80% which means first of all that financials must be consolidated. It also means only 80% of the total value of STS will be our basis. There must be other assets besides the STS acquisition that will show up on the balance sheet of EVRM. I just don't have any idea what they might be.
In the Sept. 11 PR, the Company said they would post strong
consolidated third quarter financial statements that would reflect the revenues of STS. IMHO, if these are audited financials, they should be out no later than mid-November. If not, they should be posted much sooner. I would expect them to be carefully determining the value of STS assets so as not to overstate them on the balance sheet.
I believe we could see a PR within a week to announce plans to expand under the new management structure, but that may just be wishful thinking on my part.
Duelittle - I just wanted to ask you if I have the right understanding of the financial arrangement with STS, based on recent PR's:
The value of STS is $80-100M. The price of EVRM's recent acquisition of STS was $15M. Class B shares were issued to purchase 75% of the $15M acquisition, or $11.25M. The remainder of the purchase price, or $3.75M, was paid for with mostly Class A common shares (like the shares we hold) and some cash.
Let's say the cash amount paid was $250,000. That would leave
$3,500,000 paid for with 124M shares of Class A common stock.
That would come to .028 per share, which was just about the low for the day on Tuesday.
However, the market value of the shares should really be calculated on the basis of the value of STS, or $80-100M,
about six times the purchase value, or about .17 per share.
Does this calculation make sense to you?
Share price held up well today. I'm hoping for it to bounce back shortly. A juicy PR would help.