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The Mutt Bros want the SEC to revoke. Then they can blame it on them. Then they cut a deal with Rosen, that's where Pike comes into play.
Then they start cutting deals with all the lawsuits. Downsize the company to a level that meets "cash-flow" requirements. Then they build the company as their "Cash-Flow" allows. After 3/4 years, maybe a Banker will provide a proper "financing package" and off they go.
They just want their "Private Company" status to become offical and "down the road" will offer an amount to the remaing retail shareholders in a "Take it or leave it" deal. Cut out retail players and SEC reporting goes away too.
A very nice "Pension Plan" for family and friends. Maybe worth $10-20 Million yearly to each Mutt Brother.
And then they can blame the SEC/Wells Notice/bashers/NY Post and whatever.
WOW a Brooklyn Mall attracting 100,000 shoppers a day. Only problem, its a Street mall. Its the future. No Kisoks, No mall rats and a place adults feel safe.
Fulton Street Mall:
Fulton Street Mall is considered one of the most successful shopping districts in the New York City metropolitan area, attracting 100,000 shoppers a day.
A day in Brooklyn wouldn't be complete without spending SPNG profits.
You just don't get it!!!!
Sales could be very nice, even profitable. But if the Mall owner doesn't like it, SPNG is gone.
Now all you have to show me Chirby is another Sponge Kisok doing a business on a permanent basis. Use anything thats closely related. ANYTHING
Huge Loser. They come and they go. Malls are in the CAN.
I forgot about this, but Brooklyn has a Street Mall!!!!!! I wonder Why???? No Mall rats.
Huge contest every weekend. And they don't care what the product is.
Mall rats are also what keep adults out of the Malls. Thats why Street Malls became the thing over the past 15 years. Adults don't have to worry about BS from Kids and the individual stores have more control over who enters their store.
And that SPNG "Christmas Kisok" is an easy target. LOLOLOL
LOL but a "Christmas Kisok" is a temporary one, usually (as you stated) used during the Nov. 1st to Jan 15th period. Most malls own several of these Kisoks.
You can't see it from the picture, and thus you don't know the difference between a "temporay one" and a permenant kisok. I can. Permanent kisoks are much different. But you knew that right???? And the reason they're different, you know that too I guess.
Your "Revenue per square foot" comment, I have only mentioned at least 3 times today. Its the key, but only from the mall's operator's perspective. And its the reason this is a HUGE Loser.
From the retailer's perspective, its the reason major tements are cutting back mall locations.
Overall, malls are DOGS.
Clearly you do not understand the dynamics of the retail mall operator and the individual business operators.
The mall operator always wins, much to the regret of the business operator.
Sales volume drives the bus. Profits are not an issue, until you have to sign a new lease. The mall operators get you coming and going.
BTW can you name any new indoor malls in the last 5 years, make it 10 if you like.
No, they're two completely different retail situations.
If your business is the retail sector then you know that Kisok is a joke.
Its all about "the number of transactions" and the average sale.
That kisok is a "Christmas Kisok", not a 12 month one. Of course you knew that RIGHT????
So you have more that 3 clients, then why just post those numbers????
Malls want sales volume, thats how they set SF rates. Sponges just don't cut it, Sorry.
If you noticed C-man, nothing was said about the lease. And its all about that little minor detail.
Proof, No problem. Whats the favorite past-time of mall rats?????
They're hurting because of mall traffic. Thats why major tenents leave.
Thats why Chirby does his audits on sales numbers. These sales numbers determine the SF rental amount for the mall.
How many people will buy a sponge for a GF/BF or spouse. NO ONE thats who. These indoor malls are getting killed.
Proof - How many malls have been built in the last 5 years in the US??? Street malls yes, but not indoor. Just walk thru any mall and there's plenty of space available.
And its all about Christmas. Sponges and Christmas don't fly.
That kisok is a joke. A major loser. Just look at it and you can see a HUGE problem.
Why???? Whats the favorite past-time of "mall rats". LOLOLOL but what a joke.
The averge customer in a mall is between 13 and 24. No way these customers buy sponges.
Phones, jewelry, food, Holiday gifts; Yes, but not sponges. Huge loser.
Very stupid business plan.
Just a wee bit off here Ckirby. Without providing "average sale per Transaction", these numbers are meaningless.
And if your client is the mall operator, then you're way off.
This particular mall must really be hurting, to allow SPNG there.
But malls are hurting all over. Major tenents are pulling out left and right. The main reason is the internet. The big thing now are the street malls.
reporting AND trading is the issue.
Ask management
Going Private. Just waiting for SEC revocation, so they can blame them. The game plan, as outlined 15 months ago.
What you don't understand MOJO, is that factoring is a never ending battle. Metter just borrowed June and July's cash flow. So when June and July come around, Metter has to do it again. And again, and again, and again. And the factor guys know it. Metter is chasing his tail, or the "float", if you like.
He's probably telling himself, "If I could just catch-up, I could release the filings, and everyone would love me." As a shareholder, I'm just so excited about this "Catch-up" cash flow game.
And the SEC is knocking on the door, the lawyers need to be paid and the payroll, suppliers and whatever.
And this "cash flow" game needs to be explained in the 10K. It's a requirement. Cash flow is very important to Wall Street.
It appears so, and so were other entities/employees. Evidence of this are the lawsuits, BS cash flow excuses, no Bank financing and the resulting factor deal.
Really start to pile up MOJO. Now if we were to hear from Metter, these appearences could go away. But thats all we have at the moment. And that is, seemingly independent parties acting in a very strange way toward Metter. Very strange indeed. And those factor guys are so sweet.
WOW MOJO, NY Banks are lending money NOW. And have been for awhile. Thats why they're in business. Read any bank's Annual Report. They're always looking for great commerical accounts.
Blunder - his $800,000 employment contract.
I have this Really funny feeling, he wanted to get paid. I know its a minor detail, but when services are rendered and there's a signed contract, one expects that its a "two-way" street.
The "one-way" dead ends are starting to pile a wee bit. Money TALKS, BS walks. It appears Wayne did some walking.
Sorry, SPNG is paying credit card interest rates. So we have that going for us.
Just some reading material. Just something where an Excel spreadsheet would come in handy in my SPNG investment stuff, or just a simple adding machine calculation.
Just give me $.06, the filings and some resignations; and my life would be complete.
Is that to much to ask, Metter is holding my cold cash.
It just seems everthing SPNG touches, turns to crap. Our buddy Wayne, D&T, the Audit Committee, website Guy, Mets, Yankees, Knicks, CBS, Gaints, SEC, the SEC investigators, 10K release dates, promises about "it's coming real soon shareholders.", and just everything in general.
When is the BS going to STOP. Just a simple shareholder letter would be nice. But NOOOOOOO, we get nothing but "Happy Horsechit".
They are Guilty as sin, yet don't want to do anything about IT. And every day just makes it worse.
And all the NY banks are stupid for not giving SPNG a financing package.
And Wayne is stupid too, I guess. And the SEC investigators, and the Knicks, Mets, CBS, Gaints, Yankees and whatever.
Thank God the 10K will be arriving any day now.
I wonder why Wells Fargo walked away from this GOLD MINE. Warren's favorite Bank, they had to have inside information. But maybe Warren is FOS, and WF are a bunch of dummies. Yeah that's the ticket, the WF bankers are stupid.
Losing money BIG TIME. That's why Wells Fargo (Wachovia Bank) wanted OUT. Metter indicated that Dicon was making 1.5 Mil annually on 10 Mil. sales. But it didn't take into consideration expenses incurred by the Holding Company.
Thats why everyone said "Keep your SPNG stock Metter, we want CASH."
Now we have Celia waking up and smelling the coffee. Helloooooo retirement.
10 4999 trades = 10k this afternoon
4999 = old naval number for "heads-up matey", Big Storm a brewing.
Break out the 4999 Rum.
Mr Celia would not walk away from a $800,000 plus comp agreement under any circumstances. Maybe he joined the Mets, Knicks, Giants, Rangers, CBS and SEC in Lawsuit City. At $30,000 per month, maybe he got tired of a Mosky DEFERRED Comp plan. "Sorry Wayne Baby, no money in the bank, maybe next month. How about some SPNG stock Big Guy. As Good as GOLD Brother."
The only decent guy in the organization. IMHO
I'll bet almost as SUPER ANGRY and EXTREMELY FRUSTRATED as his creditors in his personal bankruptcy case.
I'm sure all those creditors, when they left the Courthouse, were saying to themselves, "O well, no big deal, I guess I'm even with Metter now".
Yeah, I'll bet they were SUPER HAPPY. And still are today.
Under GAAP, one could handle it two different ways. The sale # would be 1,152,000, OR the Cost of goods would be increased a similiar amount. The gross profit would still net out the same. The discount, or interest, would effect gross profit after Cost of Goods Sold, and not a G&A expense. (full absorption inventory costing)
Be that as it may, the key is a line of credit would only cost 14,000, (7% X 200,000) a savings of $34,000. Which reperesents 2.8% hit to the bottom line. HUGE for a manufacturing company.
So take 2.8% of your likely SPNG sales and you do the math. It's not chump change
At mt my limit Morgan, but the true interest rate (48%, 36% 24% or whatever) is solely dependent on the "AR turnover days" assuming your dicount remains constant.
Never heard of "5/30 net 60", but it would be HUGE, assuming the buyer got an "arms-length" price. For 100,000 invoice, that would be 5,000, with associated cost of (100,000 X credit line 7% rate x 30 days) $583. Printing money baby.
So by paying on the 30th day, he saves $4,417.
The 4,000 is a constant. (4% of 100,000)
The item that does change is the AR turnover days. The shorter the turnover the more the factor makes. So in Month 3 the Factor is giving Mosky 100,000 for sales, and at the same time collecting 100,000 (Month 1 sales) from the SPNG customers. The net effect to him is $4,000 per month profit (assuming he's using his own capital). Its fairly simple.
They are paying 48,000 on the average OS AR balance. Assuming a 60 day AR Turnover, one gets the following:
Month #1 Sales 100,000 AR 100,000 cost 4,000
Month #2 Sales 100,000 AR 200,000 Cost 4,000
Month #3 Sales 100,000 Cash paid 100,000 AR 200,000 Cost 4,000
Month #4 Sales 100,000 Cash paid 100,000 AR 200,000 Cost4,000
and so on and so on
So its costing SPNG 48,000 per year to finance 200,000 in AR. I thinks thats 24%.
By calling it discount, its just a sneaky way of getting around various state banking rules. Tony S would be proud.
So the factoring Company is holding 200,000 in paper, and getting 48,000 on their investment. They are just middle men, because they are financing this with their own 200,000 7% credit line. Nice work if you can get it.
I see just the opposite. The banks said "No Thank You". Two years is a long time trying to chase down bankers. The Balance Sheet has to be completely unacceptable.
Wells Fargo wanted no action either. More than a little strange.
Couple it with no/missing filings and no shareholder letter, and the Big Picture is coming into focus.
Still waiting for $.06
I'll bet the articles were written, or paid for, by the factoring companies promoting their own companies.
You have to compare it to a good old fashion credit line. And there's no comparison.
The reality is the credit line is way better, easy admin, lower cost and you don't lose your "opportunity cost".
And they have a HUGE industry providing these commerical financing packages, most have a department solely concentrating on the manufacturing sector.
But paying 4 each month, depending on the AR turnover days, the interest rate could be as high as 48% for a 30 day turnover, and as low as 16% for a 90 day turnover rate.
last time I checked, 16% is credit card territory.
You still have to compare the cost, (even your net number), to a a cost via a normal asset based credit line.
Its not even close.
Lets used 60 and 90 day AR turnover
60 day @ 7% = 200,000 times 7% = $14,000; 90 day $21,000
WOW this is getting better and better all the time.
$48,000 vs $7,000, or 14,000 or 21,000; depending on the collection time
Wow what a great deal. Gotta send this to P&G right away.
Wow its truly amazing the calculations. We have an average AR balance each month of $100,000, and which we are paying $48,000 per year to finance. If we had a normal CL interest rate of 7%, it would cost us $7,000 per year, or about $583 per month.
48,000 vs 7,000 per year
or
4,000 vs 583 per month
Metter just made a super business move. Mosky I'm sure, as the CFO, had a helping hand in this move.
The only reason it's not a certainty, is because there are no publicly traded manufacturing companies that has this long a "cash flow" cycle and get it done with NO DEBT. NO ONE
Maybe Metter can be the first. P&G would hire him in a second.