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OT: Dsp, whomever did it ... was wrong. It wasn't me, that's for sure. Have you ever seen me deleting any post on my GVPB's board? On the other hand, you should have use the OT mark. Anyhow, I didn't see your post as offensive, and answering to a question SHOULD NOT be penalized. Check out the GVPB's board for my answer to your deleted reply.
Mike
Thanks "Fringe." I see some of my shares got sold. I just reduced the order, and will keep the free shares for next week, just in case. I bought my few shares as a gamble anyway, so lets gamble!
Mike
Anyone knows why the PPS jumped over the last few days? Got in @ 0.0031 average, and looking for an exit. I have a sale @ 0.01. Anyone cares for my shares? Not many, just 250K. W/o too much available info (or at least I didn't get yet the chance to get a decent DD since I bought it 3 days ago) I treated my buy as a small gamble. Am I wrong? If so, why should I push my luck?
TIA,
Mike
What you fail to understand is that increased capacity also means increase capital invesment i.e. new trucks. This one time investment will last for many years, and it will help increase (% wise) future gross revenue and operating margins. Important is that the Company is expanding its client base as demonstrated by the increased revenue.
For the skeptics:
(1) show me another subpenny company that makes $1.5 M/month.
(2) show me another pinkie that voluntarily report the results, and not on a quarterly basis, but monthly.
At this time, IMO, all CKEI has to do is go back to OTC:BB, and things will change for the better. And I won't be surprised to learn they will do just that very soon.
Mike
Re: GDVI
Something I just posted in my (not very well maintained) "GVPB's" general i-Hub board:
http://www.investorshub.com/boards/read_msg.asp?message_id=18337882
Despite my (understandable) bad mood vs solar right now, CA is the only US State that is trying its best to implement solar power. They had last year a 3.2 Billion bond that passed for encouraging solar power. As such, GDVI should look into learning to instal solar (PV, and thermal panels) onto the roofs of their structures. If they do that, they will become the first in CA to do it for these type of structures (both school, and residential), and this could become the third (and most profitable) part of their business. Next week I'm going to try contacting Phill, and suggesting him to look into it. I could help him (free of charge, of course) with the A, B, C's of how to do it. If anyone here has another phone # where Phill can be easier reached, please post it here. If not anyone who can post on RB (which I can't), please ask Climber to either post there the phone # he has, or drop me an E-mail (I used to have his, but I guess he changed it). In fact, the easiest way will be if anyone can post this Msg. on RB.
PS: After adding the second line of business, I truly believe GDVI has a good chance for growth. Let's those of us that are for a while with GDVI, those of us that still believe (as I do) in the growth potential of GDVI, and those of us that may have some good suggestions help the company (rather than continuosly scolding the CEO) pass this small accident in their history. The big mistake Phill made, I believe was that he relied to much on those "Pork" contracts. Hope he learned his lesson, and will become more engajed in putting through as many biddings as he can.
TIA,
Mike
Re: OEGY
Stocktrader,
I just came back from a business trip, that was supposed to be very good, and in fact turned out to be the same BS like many, many other meetings I had recently. So, you'll understand I'm kind of getting a bit tired expecting the solar business to start picking up here in the US (except CA - which are by far the leaders).
I checked OEGY for you. First thing I noticed is their large Price/Sales ratio. For any P/S over 2, I want to know a lot more about that company, and if over 10 (as is the case here) I usually not even look into it, and rather try my chance with companies that have a P/S <1, and which (even if not in my direct field) I consider to be undervalued. Look at GDVI, for instance: a P/S ratio of only 0.29 right now. Their last 10-Q was bad (and I think I know why), but they had before 9 (yes, nine) consecutive Q-s with a positive Net Revenue. They have right now a PPS of below 0.02, and I believe a very good growth potential.
Now, back to OEGY. Below are my related three short comments I just posted to an article related to Solar Power in California. To make my two points (just using those well known graphs), as you see I use OEGY company's description.
#1 - Today and Tomorrow:
To help my points, see:
http://www.openenergycorp.com/company/company_overview.php
Today. In regards to the last graph - See how the US PV market share has been declining since early 90's. No wonder why it is so hard to survive here and even harder for a new Company to get into the PV business. No wonder why SunPower, EverGreen Solar, Solar One have moved oversee. Hopefully, something will happen here soon, otherwise Asia will win again (the way they did in the displays, now in nanotechnologies, etc.). In time, Europe, most probably will follow in the foot steps of US; for better or worse ... which will it be? Anyone cares to anticipate?
#2 Today and Tomorrow - Cont.
Tomorrow. For those of you not really familiar with the anticipated long-term energy scenario, see the second to last figure. Renewable Energy (RE), especially solar (solar PV, solar thermal, and wind power) is going to start playing a more and more essential role; if not here, most probably in some Asian Countries. California is to be congratulated for being the #1 (by far) in the US. I'm from Ohio, and my State (like most of the other US States) is only talking about it, but doing very little to encourage solar power. One of these days solar technologies are going to be in very high demand. Despite present problems (created, of course, by the Utility Companies) California will get it through, and will get its rewards, the way they already did it in semiconductors, Internet, etc.
#3 - Not Fun Being a Start-Up Company in Solar Business
Until solar starts picking up speed, for any (small or established) solar business (both in CA, and even more so if in any of the other US States) the name of the game is SURVIVAL! For any start-up company, getting into any Solar (especially manufacturing) business is very, very hard. I know it for a fact, and getting a bit tired of it.
PS: As you'll see, right now, I'm not in the best mood as any start-up solar (including mine) goes. So, in regards to OEGY (although I have to recognize that I did not do a good DD on them), I just leave it at that.
Mike
Re: "I've tried to get hold of Phil a few times, he's unreachable."
RG, did you try this number?
PHILLIP HAMILTON: (559) 665-5800
I will not be able to call him this week, but I'm planning to call him next week. Please let me know if you reached him, and in case you have a new number, post it here.
Mike
GDVI Valuation
Re: "Mike when do you expect the .05/.06?"
Simple answer, whenever people learn to do a basic valuation. For whomever is not familiar with penny stock valuation, here you have the two main indicators you can use:
1. Price/Sales (P/S) ratio of a "real" penny company on average is between 1.5 and 2. Some penny companies can have a P/S of up to to several hunderd, even several thousand (these usually are just heavily pumped, and then dumped by the many "organized tribes" out there). It's all about how the investors perceive the future of that particular company, the field the company opperates in (way over evaluated in some cases i.e. nanotechnologies, etc). By a "real company" I mean a company that has: (i) an established business, (ii) a minimum number of employs (GDVI has 60, and planning to add more over the next 6 months), (iii) demonstrated in the near past it can conduct that line of business (excluding not frequent "growth pain" accidents), (iv) a good growth potential, etc.
Right now the P/S is just 0.29. Because of the rather poor numbers in the latest 10-Q, but taking into account that the rest of the four conditions above are met, I will not give GDVI at this time the average 1.5 to 2 P/S ratio. I only give them a P/S of 1. This means that the valuation (and therefor the PPS) should increase by a factor of 1/0.29 = 3.45. If you multiply this by EOD PPS of 0.016, you get a PPS of about 0.055.
2. Book value. For any stock, and especially for penny stocks you should look at the Book Value/Share (BVS) ratio, and compare it to the PPS.
Right now the company has a BV of 8,001,509. Dividing it by the present OS (163,410,811 shares), you get a BV/S ratio of $0.0489/share. This makes it 3.06 times higher than the PPS. As a rule, a "real" penny company always has a PPS/BVS ratio greater than unity. This (BVS) indicator also tells me the company is way undervalued at this time, and that the minimum PPS should be at least 0.0489.
While I can't (I wish I could) tell you whether or when the PPS will go back to the range it realy belongs (0.05 to 0.06, IMO), I hope the above will help you make your own valuation for this and any other "real" penny stock. All I can say is that in my experience, for "real" penny companies the PPS most of the time is following the two above indicators. Heavily undervalued penny stocks (as IMO GDVI is right now) sooner rather than later most of them will adjust their PPS to a more realistic value. Taking a guess, I feel it will happen within one or maximum 2 months (even sooner with some good PR), and then if the 10-K (due in August) shows that the last quarter was just an accident (the company has had a positive net income for the last nine Q's preceding the last two) by that time, I hope to see it go again above 0.1.
Mike
Thanks! This answered my question about the large PPS drop: "we may seek the protection of Chapter 11 of the U.S. Bankruptcy Code in an effort to reorganize the debts of the company"
I was following this Company, and close to getting my feet wet last week. Glad I didn't. No Company will dare mention the BK dirty word unless they already have decided to do just that.
Mike
Re: GDVI
Do your DD on this bottom. IMO, short-term, it will go up quite a bit from the low 0.02's it ended today b4 the 10-Q was released (after the close).
Mike
"As of January 31,2007, the company had 60 employees. The Company anticipates the number of employees will increase over the next six months."
And so will the revenue, and obviously the PPS.
Mike
The PR: Form 10QSB for GLOBAL DIVERSIFIED INDUSTRIES INC
26-Mar-2007
Quarterly Report
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE NINE MONTHS ENDED JANUARY 31, 2007
This report on Form 10-QSB contains forward-looking statements within the meaning of Rule 175 of the Securities Act of 1933, as amended, and Rule 3b-6 of the Securities Act of 1934, as amended, that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our industry, our beliefs and our assumptions. Words such as "anticipate", "expects", "intends", "plans", "believes", "seeks" and "estimates" and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Form 10-QSB. Investors should carefully consider all of such risks before making an investment decision with respect to the Company's stock. The following discussion and analysis should be read in conjunction with our financial statements and summary of selected financial data for Global Diversified Industries, Inc. Such discussion represents only the best present assessment from our Management.
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Introduction
The Company is a Nevada company with a limited operating history. On December 11, 2001, Global Diversified Industries, Inc., formerly Global Foods Online, Inc. (the "Company") acquired two wholly-owned subsidiaries, Majestic Modular Buildings, Ltd. ("Modular"), and, Lutrex Enterprises, Inc. "Lutrex", an entity controlled by the Company's President and Chief Executive Officer.
Modular was engaged in the business of designing, manufacturing and marketing re-locatable modular structures such as classrooms and office buildings and was under contract to build multiple single story classrooms for two school districts in southern California.
The Company is a holding company for two wholly owned subsidiaries, Lutrex Enterprises, Inc., an entity, which holds equipment and inventory for the registrant, and Global Modular, Inc., a sales, marketing, manufacturing and construction site work of modular type structures.
Overview
The Company's subsidiary, Global Modular, Inc. ("Global Modular") is in the business of designing, manufacturing and marketing pre-fabricated, modular type structures. Global Modular's 100,000 square foot factory is located on sixteen acres adjacent to the municipal airport at Chowchilla, California. The manufacturing facility has the capacity to produce approximately $50,000,000 of revenue per year. Its principal customer base during the current fiscal year will be educational (public and private schools, universities, etc.), child-care and municipality sectors. Its product lines consist of a variety of relocatable (portable) classroom designs, and designs used specifically for permanent modular construction, i.e., complete schools, wing additions, etc. Global Modular's capabilities include single-story "slab-on-grade" construction, where a concrete slab is poured on site, which also serves as the floor. The structures are built in our factory and shipped to the site for installation on the concrete slab. The modular division has recently secured rights to state-of-the-art two-story designs recently owned by Aurora Modular Industries, Inc. All of Global Modulars' portable/modular structures are engineered and constructed in accordance with pre-approved building plans, commonly referred to as "P.C.'s" or "pre-checked" plans that conform to structural and seismic safety specifications administered by the California Department of State Architects (DSA). The DSA regulates all California school construction on public real estate and the DSA's standards are considered to be more rigorous than the standards that typically regulate other classes of commercial portable structures.
In the quarter ending October 31, 2006, Global Modular was awarded a five year contract with Victor Valley School District that contained a "piggyback clause. This allows Global Modular to provide educational customers with product contracted under a "piggyback clause". The State of California allows school districts to canvass proposals from modular classroom vendors under a bidding process where the successful bidder can provide other public school districts and municipalities portable classrooms under a "piggyback contract" issued by the originating school district. This process saves school districts valuable time and resources from the necessity of soliciting bids. A modular vendor who possesses a "piggybackable contract" containing competitive pricing and a variety of design options may have access to future business for up to five years, depending on the term of the piggyback contract. This piggyback contract includes all appropriate pricing parameters pertinent to Global's "permanent modular construction" designs. Global Modulars' new piggyback contract provides them the flexibility to offer California public schools and municipalities an expanded variety of design and pricing alternatives to meet virtually any design request by the school district and/or architect.
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The Company was issued a Manufacturer's License by the California Department of Housing (DOH) on July 13, 2006. This opens up a new market comprising of retail, industrial and institutional (including educational institutions that reside on private property). This sector adheres to building designs and specifications administered by the Department of Housing (DOH).
Among Global Modular's asset base is its integrated, state-of-the-art, automated manufacturing process which includes equipment, raw material and marketing collateral that are specifically designed for the high capacity fabrication of modular structures. Future revenue generation and growth partially depends on the success of marketing efforts to the educational sector for single-story and two-story designs.
The Company's subsidiary Global Modular, Inc. has secured necessary architectural and engineering approvals from the State of California (Division of the State Architect) for their single story and two-story designs. The two-story design is desirable by school districts since individual two-story buildings can be installed side-by-side to form a cluster of buildings, occupying hundreds of students. The two-story design is fully equipped with easy access to the second story by stairs and balcony along with a hydraulic elevator to accommodate handicap students, teachers and visitors. School districts continue to turn to two-story portable classrooms to satisfy their space dilemma since they have little real estate to surrender. Since the recent acquisition of Aurora Modular Industries intellectual property; the promotion of single-story slab-on-grade and two-story designs will be the main focus of our sales team during the next several years. Global Modular now possesses adequate DSA approved designs that can meet virtually any type configuration and aesthetic alternatives a school district may desire.
During the remainder of FYE 2007, Global Modular will focus its attention on the new DOH market along with its sales and marketing of portable classrooms and modular buildings to the California public and private school sectors including California municipalities. During the quarter ended October 31, 2006, the Company installed an additional manufacturing line in the plant dedicated to the DOH products. Since the state of California has been experiencing an influx in student enrollment over the past several years, and the forecast for the next ten years is for continual increasing enrollments, the portable classroom manufacturing industry has become more successful. In an effort to keep up with demand for additional classroom space, modular manufactures are expecting increased production backlogs throughout the remainder of 2006 and into 2007.
The following Management Discussion and Analysis should be read in conjunction with the financial statements and accompanying notes included in this Form 10-QSB.
COMPARISON OF THE THREE MONTHS ENDED JANUARY 31, 2007 TO THE THREE MONTHS ENDED
JANUARY 31, 2006
Results of Operations
Global Modular has completed the majority of the site work on projects that was the responsibility of MBS. MBS, a wholly owned subsidiary of the Company that was sold on October 31, 2006, was responsible for all the field construction and site work. Global has focused on completing these site projects.
Total revenues from continuing operations decreased to $509,898 in the quarter ended of January 31, 2007 from $2,072,623 in the quarter ended January 31, 2006. Since taking over the site construction, Global Modular's primary focus is to complete the projects in the field to mitigate cost overruns and to maintain good client relationships. The Company reduced the manufacturing operations to a minimum until all of the projects are completed in the field.
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Cost of revenues from continuing operations was $394,067 and $1,403,442, respectively for the quarters ended January 31, 2007 and 2006. The cost of revenue from continuing operations decreased because of a 78% reduction in revenue from the quarter ended January 31, 2007 as compared to the quarter ended January 31, 2006. Gross profit from continuing operations was $115,831 and $669,181, respectively for the quarters ended January 31, 2007 and 2006. The gross profit from continuing operations decreased because of the significant reduction of revenue. The gross margin decreased from 32% for the quarter ended January 31, 2006 to 23% for the quarter ended January 31, 2007, because the Company was still involved in closing the field construction activities on projects during the quarter ended January 31, 2007.
Total operating expenses decreased to $422,153 in the three months ended January 31, 2007 from $455,903 in the three months ended January 31, 2006. The decrease in operating expense was due to general and administrative cost being closely monitored with the reduction in revenue.
COMPARISON OF THE NINE MONTHS ENDED JANUARY 31, 2007 TO THE NINE MONTHS ENDED
JANUARY 31, 2006
Results of Operations
Global Modular was assigned the responsibility for all site construction work, which now consists primarily of setting the modular buildings. Previously MBS Construction, a wholly owed subsidiary of the Company, was responsible for all field construction and site work activities. Due to cost over runs and lack of coordination on the site construction projects managed by MBS, the Company has sold its stock in MBS on October 31, 2006 and moved all of the site construction functions under the control of Global Modular. Global Modular has completed the majority of the field and site work activities for the MBS projects.
Total revenues from continuing operations decreased to $5,093,974 for the nine months ended of January 31, 2007 from $10,445,463 for the nine months ended January 31, 2006. Since taking over the site construction, Global Modular's primary focus was to complete the projects in the field to mitigate cost overruns and to maintain good client relationships. The Company reduced the manufacturing operations to a minimum until all of the projects are completed in the field.
Cost of revenues from continuing operations was $3,974,325 and $6,942,194, respectively for the nine months ended January 31, 2007 and 2006. The cost of revenue from continuing operations decreased because of a 51% reduction in revenue from the quarter ended January 31, 2007 as compared to the quarter ended January 31, 2006. Gross profit from continuing operation was 1,122,649 and $3,503,269, respectively for the nine months ended January 31, 2007 and 2006. The gross profit from continuing operations decreased due to the reduced revenue for the nine months ended January 31, 2007, as compared to the nine months ended January 31, 2006. The gross margin decreased from 34% for the nine-months ended January 31, 2006 to 22% for the nine months ended January 31, 2007, because the Company incurred cost overruns in field construction activities on three projects during the last six months ending January 31, 2007. The majority of these projects in the field are completed as of January 31, 2007, and all losses related to these projects have been reflected in the financial statements.
Total operating expenses decreased to $1,717,361 in the nine months ended January 31, 2007 from $1,792,914 in the nine months ended January 31, 2006. The operating expenses decreased due to general and administrative cost being closely monitored with the reduction of revenue.
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The Company sold their stock in MBS to a third party and recorded a gain on the sale of MBS for $328,286 on October 31, 2006
Currently, the Company has a signed backlog in excess of $6,000,000 with California school districts.
Liquidity and Capital Resources
As of January 31, 2007, the Company had a working capital surplus of $2,757,090. Net loss for the nine months ended January 31, 2007 was $451,487. The Company generated a positive cash flow from operations of $1,399,633 for the nine-month period ended January 31, 2007. The positive cash flow from operating activities for the period is primarily attributable to the Company's net loss from continuing operations adjusted for depreciation and amortization of $232,107, common stock issued and subscribed in exchange for services of $170,825, amortization and write-off of debt discount of $76,001, an increase in deferred taxes assets of $180,000, a decrease in accounts receivable of $2,830,587 an increase in inventory of $776,721, an increase in employee advances of $62,831, a increase in other assets of $143,031, and an decrease in accounts payable of $25,317.
Cash flows used in investing activities for the nine-month period ended January 31, 2007 consisted of the acquisition of $323,775 of equipment, leasehold improvements and architectural plans used in operations.
The Company disbursed cash during the nine months ended January 31, 2007 to reduce debt to lenders by $1,611,237 and proceeds, net of repayments, from related party loan in the amount of $111,000.
As a result of limited capital resources and revenues from operations, the Company has relied on the issuance of equity securities to non-employees in exchange for services. The Company's management enters into equity compensation agreements with non-employees if it is in the best interest of the Company under terms and conditions consistent with the requirements of Financial Accounting Standards No. 123 (R), "Share Based Payment" In order conserve its limited operating capital resources, the Company anticipates continuing to compensate non-employees for services during the next twelve months. This policy may have a material effect on the Company's results of operations during the next twelve months.
While the Company has raised capital to meet its working capital and financing needs in the past, additional financing is required in order to meet the Company's current and projected cash flow needs for operations and development. The Company generated a positive cash flow for the six months ended October 31, 2006. The Company is presently seeking financing in the form of debt or equity in order to provide the necessary working capital. Such financing may be upon terms that are dilutive or potentially dilutive to our stockholders. The Company currently has no commitments for financing. There are no assurances the Company will be successful in raising the funds required
By adjusting its operations and development to the level of capitalization , management belives it has suffucient capital resources to meet projected cash flow needs through the next twelve months. However, if thereafter, we are not successful in generating sufficient liquidity from operations or in raising sufficient capital resources, on terms acceptable to us, this could have a material adverse effect on our business, results of operations , liquidity and financial condition.
The effect of inflation on the Company's revenue and operating results was not significant. The Company's operations are located in North America and there are no seasonal aspects that would have a material effect on the Company's financial condition or results of operations.
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Employees
As of January 31,2007, the company had 60 employees. The Company anticipates the number of employees will increase over the next six months. The Company does not expect to have any collective bargaining agreements covering its employees.
Properties
The Company's principal executive offices are located at 1200 Airport Drive, Chowchilla California. The property consists of sixteen acres of real estate including a 100,000 square foot structure of usable space. The structure will be utilized by the Company's executive management team, as well as housing the operating entities of Lutrex and Global Modular. The Company has entered into a three-year lease (including options for renewals) for the property at a rate of $16,125 per month for the remaining of the current fiscal year with moderate increases for each year thereafter. The Company believes that the current facilities are suitable for its current needs.
Trends, Risks and Uncertainties
We have sought to identify what we believe to be the most significant risks to our business, but we cannot predict whether, or to what extent, any of such risks may be realized nor can we guarantee that we have identified all possible risks that might arise. Investors should carefully consider all of such risk factors before making an investment decision with respect to our Common Stock.
Cautionary Factors that May Affect Future Results and Market Price of Stock
Our annual report on April 30, 2006 Form 10-KSB includes a detailed list of cautionary factors that may affect future results. Management believes that there have been no material changes to those factors listed, however other factors besides those listed could adversely affect us. That annual report can be accessed on EDGAR.
LIMITED OPERATING HISTORY; ANTICIPATED LOSSES; UNCERTAINTY OF FUTURE RESULTS.
The Company has only a limited operating history upon which an evaluation of its operations and its prospects can be based. The Company's prospects must be evaluated with a view to the risks encountered by a company in an early stage of development, particularly in light of the uncertainties relating to the new and evolving manufacturing methods with which the Company intends to operate and the acceptance of the Company's business model. The Company will be incurring costs to develop, introduce and enhance its products, to establish marketing relationships, to acquire and develop product lines that will compliment each other and to build an administrative organization. To the extent that such expenses are not subsequently followed by commensurate revenues, the Company's business, results of operations and financial condition will be materially adversely affected. There can be no assurance that the Company will be able to generate sufficient revenues from the sale of their modular buildings and related products.. If cash generated by operations is insufficient to satisfy the Company's liquidity requirements, the Company may be required to sell additional equity or debt securities. The sale of additional equity or convertible debt securities would result in additional dilution to the Company's stockholders.
POTENTIAL FLUCTUATIONS IN ANNUAL OPERATING RESULTS.
The Company's annual operating results may fluctuate significantly in the future as a result of a variety of factors, most of which are outside the Company's control, including: the demand for manufactured modular buildings; seasonal trends; introduction of new government regulations and building standards; local, state and federal government procurement delays; general economic conditions, and economic conditions specific to the modular building industry. The Company's annual results may also be significantly impacted by the impact of the accounting treatment of acquisitions, financing transactions or other matters. Particularly at the Company's early stage of development, such accounting treatment can have a material impact on the results for any quarter. Due to the foregoing factors, among others, it is likely that the Company's operating results will fall below the expectations of the Company or investors in some future quarter.
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LIMITED PUBLIC MARKET, POSSIBLE VOLATILITY OF SHARE PRICE.
The Company's common stock is currently quoted on the NASD OTC Electronic Bulletin Board under the ticker symbol GDVI. As of March 22, 2007, there were approximately 163,460,811 shares of common stock outstanding, of which approximately 73,988,673 were tradable without restriction under the Securities Act. There can be no assurance that a trading market will be sustained in the future. Factors such as, but not limited to, technological innovations, new products, acquisitions or strategic alliances entered into by the Company or its competitors, failure to meet security analysts' expectations, government regulatory action, patent or proprietary rights developments, and market conditions for manufacturing stocks in general could have a material effect on the volatility of the Company's stock price.
MANAGEMENT OF GROWTH
The Company expects to experience significant growth in the number of employees and the scope of its operations. In particular, the Company intends to hire additional engineering, sales, marketing, and administrative personnel. Additionally, acquisitions could result in an increase in the number of employees and business activity. Such activities could result in increased responsibilities for management. The Company believes that its ability to increase its customer support capability and to attract, train, and retain qualified engineering, sales, marketing, and management personnel, will be a critical factor to its future success. In particular, the availability of qualified sales engineering and management personnel is quite limited, and competition among companies to attract and retain such personnel is intense. During strong business cycles, the Company may experience difficulty in filling its needs for qualified sales, engineering and other personnel.
The Company's future success will be highly dependent upon its ability to successfully manage the expansion of its operations. The Company's ability to manage and support its growth effectively will be substantially dependent on its ability to implement adequate improvements to financial and management controls, reporting and order entry systems, and other procedures and hire sufficient numbers of financial, accounting, administrative, and management personnel. The Company's expansion and the resulting growth in the number of its employees have resulted in increased responsibility for both existing and new management personnel. The Company is in the process of establishing and upgrading its financial accounting and procedures. There can be no assurance that the Company will be able to identify, attract, and retain experienced accounting and financial personnel. The Company's future operating results will depend on the ability of its management and other key employees to implement and improve its systems for operations, financial control, and information management, and to recruit, train, and manage its employee base. There can be no assurance that the Company will be able to achieve or manage any such growth successfully or to implement and maintain adequate financial and management controls and procedures, and any inability to do so would have a material adverse effect on the Company's business, results of operations, and financial condition.
The Company's future success depends upon its ability to address potential market opportunities while managing its expenses to match its ability to finance its operations. This need to manage its expenses will place a significant strain on the Company's management and operational resources. If the Company is unable to manage its expenses effectively, the Company's business, results of operations, and financial condition will be materially adversely affected.
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RISKS ASSOCIATED WITH ACQUISITIONS.
As part of its business strategy, the Company expects to acquire assets and businesses relating to or complementary to its operations. These acquisitions by the Company will involve risks commonly encountered in acquisitions of companies. These risks include, among other things, the following: the Company may be exposed to unknown liabilities of the acquired companies; the Company may incur acquisition costs and expenses higher than it anticipated; fluctuations in the Company's quarterly and annual operating results may occur due to the costs and expenses of acquiring and integrating new businesses or technologies; the Company may experience difficulties and expenses in assimilating the operations and personnel of the acquired businesses; the Company's ongoing business may be disrupted and its management's time and attention diverted; the Company may be unable to integrate successfully.
"During the remainder of FYE 2007, Global Modular will focus its attention on the new DOH (Department of Housing) market along with its sales and marketing of portable classrooms and modular buildings to the California public and private school sectors including California municipalities. During the quarter ended October 31, 2006, the Company installed an additional manufacturing line in the plant dedicated to the DOH products. Since the state of California has been experiencing an influx in student enrollment over the past several years, and the forecast for the next ten years is for continual increasing enrollments, the portable classroom manufacturing industry has become more successful. In an effort to keep up with demand for additional classroom space, modular manufactures are expecting increased production backlogs throughout the remainder of 2006 and into 2007."
I believe this 10-Q mediocre results will become a thing of the past, once the DOH market is added. Winter Q's are not good for the construction business.
Opinion:
PPS will jump tomorrow, and will continue its move toward 0.05 to 0.06, and possible much more with some good forward looking statements. The low PPS includes the many uncertainties myself (and I bet many other GDVI investors) have had over the last several months, including the possibility of: (i) bankrupcy, (ii) company going to become a pinky, etc. With all these dark thoughts out of the picture the short-term PPS direction is ONLY UP, IMO.
Mike
The 10-Q is out. Not the greatest numbers, but:
1. "Currently, the Company has a signed backlog in excess of $6,000,000 with California school districts."
2. "As of January 31, 2007, the Company had a working capital surplus of $2,757,090."
I predict this will put us to a 0.05 to 0.06 PPS range, then w/o any PR's the PPS might come back to today's level.
Mike
Re: EXVG
December,
Where did you get the numbers from? Here is the latest filling:
http://www.pinksheets.com/pdfservlet?id=9761
Plus, unless a fully reporting company (which EXVG is not), to me those numbers are meaningless. These pinkies fill those reports on a voluntarily basis, and their numbers usually are not to be trusted.
Good luck to you on this one,
Mike
Re: ONGO - Except for the red flags raised by the two previous R/S's (1:30, and 1:40), ONGO might have a chance to jump sometimes in the near future. It all depends if the ungoing dilution problem (see the SEC filling on March 20-th) stops.
Mike
Jonnyk & Jason, thanks for the info. Indeed the company is usually late in filling the 10-Q. I just checked the fillings history, and for the last 4 years they always filled the late 10-Q's within 3 days to 9 days. So, indeed we can expect it to be filled before March 26. Hope Jason's source is right.
Mike
A good read for any reasonable tech educated potential ESLR (or any other solar PV companies) investor (but not really familiar with solar PV concept, and business). Although a bit old (2005), and probably a bit one-sided, if you take it with a grain of salt, you'll get the idea what solar PV and ESLR are all about:
http://thefraserdomain.typepad.com/energy/2005/10/solar_power_as_.html
The report is rather pessimistic. If you go to page 43: "We peg the solar module market at $4 billion in 2004 (1,256MW
of cell production) growing to $5.3 billion in 2005 (1,638MW), then more than doubling to $12 billion in 2010 (4,808MW)." In 2006 the solar PV market has been over $19 billion. Other missinfo is related to way underestimated sales price of peak power Watt at the module level, etc, etc.
PS: Is this board dead? Wondering why.
Have fun,
Mike
Here's the full NCDC report:
http://www.ncdc.noaa.gov/oa/climate/research/2007/feb/feb07.html
With its colder than normal temperatures for the month of February in the North-East, the revenue for February should be very good indeed.
Mike
Can't wait for the EOM revenue report for the month of February. Expecting it to be the very best ever.
Not that we can complain with the last results.
1. Despite the fact that according to BBC: "Winter in the Northern Hemisphere this year has been the warmest since records began more than 125 years ago, a US government agency says:"
http://news.bbc.co.uk/1/hi/sci/tech/6456897.stm
2. For the same period, CKEI has recorded strong revenues:
2.1 Wed, Feb 28, 2007
• Clickable Enterprises Reports Strongest Monthly Earnings in Company History with $1.2 M in Revenue for January
Business Wire (Wed, Feb 28)
2.2 Tue, Jan 30, 2007
• Clickable Enterprises Generates Over $1M In Revenue For December
Business Wire (Tue, Jan 30)
2.3 Tue, Dec 19, 2006
• November Revenue Remains High for Clickable Enterprises Despite Unseasonably Warm Weather
Business Wire (Tue, Dec 19)
Draw your own conclusion folks. EOM could bring, IMO, many smiling faces to those that have the patience to wait.
Mike
The good news is that no NT 10-Q has been filled. Let's hope we'll hear the real good news when the 10-Q comes out, which should happen any day now.
Mike
Re: "Education is the key to success ...."
A must watch video:
http://www.investorshub.com/boards/read_msg.asp?message_id=17803069
Mike
Re: WRNW
"wrnw runing u miss the run"
Did we John?
http://www.investorshub.com/boards/read_msg.asp?message_id=17832249
This puppy deserves a small gambling, IMO. Thanks for mentioning it.
Mike
It looks like you are an old trader as I am. If so, you should just get used to it. The penny game used to be a chess game, then it became a ping-pong game, now it's simply a 25%, or 50% retrive game. From its max, this seem to be a 50% retrive gone lower due to inertia. Just got in @ 0.0031.
Mike
OT: Jim Cramer on stock manipulation - a must watch video:
http://www.stockwire.com/content/view/238/87/
Any comment?
Mike
Hope any newbies here have learned the lesson. You made a profit, take it. DO NOT be greedy! That's the golden rule of sub-penny stocks. Ride along the MM's, and (you like it or not) do not even think you'll be able to beat their cleaver machines.
It looks like I might be back sooner than I thought (after getting out my small double yesterday).
Good luck everyone!
Mike
Yes, most definitevely is that shorts started to cover. However, a continuous PPS increase w/o any type of news may also mean some friends of the company do already know the upcomming 10-Q results (due by this comming Tursday). If so, we might have here the same type of move as we saw 3 years ago: from 0.02 to 0.03's. This company has a long history of extreme PPS values. If someone else was here 4 (or could be 5?) years ago, we had a one day PPS increase of 1,600% or so.
While I hate to sound as an advice, it looks like the up trend will continue, and even the few lucky ones (including myself) that bought (added in my case) near the bottom might wish to think hard before they sell their position. I'm certainly not at these PPS levels.
Mike
Anyone has the updated OS, AS, and Float figures? All I know are the figures given in the Company Info in the Pink Sheets:
http://www.pinksheets.com/quote/company_profile.jsp?symbol=WRNW
Outstanding Shares: 202,988,000 as of 2007-03-07
Estimated Market Cap: 1.116M as of 2007-03-09 (based on Outstanding Shares as of 2007-03-07)
Authorized Shares: 500,000,000 as of 2007-03-07
Float: 100,000,000 as of 2007-03-07
TIA,
Mike
***GDVI DD
The Investor Package, posted on the web site:
http://www.gdvi.net/docs/GDVI_Investor_Packet.pdf
1. Web site:
http://www.gdvi.net/
2. Charts:
2.1 StockCharts.com
http://stockcharts.com/gallery/?GDVI
2.2. Barchart.com
http://quotes.barchart.com/texadv.asp?sym=gdvi
3. Basic DD:
3.1. Y over Y, and Q over Q financials:
http://finance.yahoo.com/q?s=gdvi.OB
3.2. Key Statistics:
http://finance.yahoo.com/q/ks?s=GDVI.OB
4. Better DD:
http://www.ddmachine.com/default.asp?s=gdvi.ob
5. Advanced DD:
http://www.finitesite.com/irishbull/
6. Maintainance-type DD:
6.1 SEC fillings:
http://www.pinksheets.com/quote/filings.jsp?symbol=gdvi
6.2 What others are saying:
http://www.boardcentral.com/
Mike
QED. Got out today with my double. The only way to "play" these subpenny stocks.
Wishing you folks all the luck! I may be back.
Mike
Good buy opp, IMO. Loaded some more today. I did the same some 2 (or 3?) years ago, when it again went to this level prior to going to 0.28, and 0.3's shortly thereafter, which made me quite happy. Hope for a repeat of that performance.
Mike
Come, come,
Stay calm, stay calm,
No need for alarm,
It only hums,
It doesn't harm.
Mike
A bright guy calld Bitter Batter
Bought some butter but, said he, the butter's bitter.
If I put it in my batter, it will make my batter bitter.
But a bit of better butter will make my bitter batter better.
So he bought some better butter, better than the bitter butter,
Put it in his bitter batter, made his bitter batter better.
So 'twas better Bitter Botter bought some better butter.
Mike
Whether the weather be fine
or whether the weather be not.
Whether the weather be cold
or whether the weather be hot.
We'll weather the weather
whether we like it or not.
Mike
"Out in the pasture the nature watcher watches the catcher. While the catcher watches the pitcher who pitches the balls. Whether the temperature's up or whether the temperature's down, the nature watcher, the catcher and the pitcher are always around. The pitcher pitches, the catcher catches and the watcher watches. So whether the temperature's rises or whether the temperature falls the nature watcher just watches the catcher who's watching the pitcher who's watching the balls."
by Sharon Johnson
OOPS! The site for the "GVPB's" site is:
http://www.investorshub.com/boards/board.asp?board_id=5444
Please take a look at it, and if you like the idea, everyone is welcomed to read or contribute to it.
Mike
I believe WallSt.net will run out today of those shares they received (they always sell them right away) for interviewing the CEO. Tomorrow the PPS will start recovering, IMO. Slowly with no news, and much faster with some news. Mark this post!
PS: Looking for experienced traders to help us identify good undervalued penny stocks candidates posted within the "Good Value Penny Bottoms site:"
http://www.investorshub.com/boards/post_new.asp?board_id=7241
Mike