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Mat, QSGI is worth .04-.08 per share. this is irrefutable, as you say.
Spy clearly laid out why. just in case you forgot:
Fact 1: KruseCom revenue for 2009 was $537,803 and not $5,000,000.
Fact 2: KruseCom revenue for 2010 was $3,013,184 and not over $100,000,000.
Fact 3: The audited financial statements for KruseCom for 2009 and 2010 showed revenue from inception was approximately $3.5 from inception thru 2010, just as the RP stated and were not sandbag and understated in the RP by a significant amount.
Fact 4: KruseCom revenue for Q1 2011 was 2010 was $834,408 and not at a rate of over $25 million for 2011.
Fact 5: The revenue forecast for the 12 months following the RM and effective date of the RP (both occurring on 6/17/2011) was prepared at the end of January 2011 and filed with the Court soon after as part of the DS. Marc Sherman attested to the properness of those forecast in an Affidavit filed in mid March 2011.
Fact 6: The R/M called for in the RP was executed on 6/17/2011 and resulted in the issuance of 190,000,000 shares of QSGI common stock to the KruseCom shareholders. Those shares are Rule 144 shares and can be sold after 6 months, subject to quarterly volume restrictions on each shareholder.
Fact 7: Per the RP, QSGI is now suppose to be issuing 10.5 million unrestricted shares as soon as practical, to unsecured creditors and preferred shareholders.
Fact 8: After items 7 and 8, QSGI has over 230 million shares O/S and has obligations to issue over 3.5 million more and a stated intent to issue a couple million more and to issue shares to raise $1,000,000.
Fact 9: At least 2 of the KruseCom shareholders have shares of QSGI stock and options under 3 cents per share (Sherman has such options and it is believed Saracino still has similar ones). They can sale legacy shares and shares from any option exercise as soon as QSGI gets current on their late SEC filings. Thus the Rule 144 restrictions on the shares they get in the RM is somewhat moot.
Fact 10: There is no evidence that any of the executives or management of QSGI or KruseCom or the prior shareholders of KruseCom executed any “lock-up agreements” to bar or restrict any stock sales. No such agreements were part of the RM agreement.
Fact 11: The prior operating segments of QSGI were either sold in 2009 or returned to John Riconda and QSGI was a shell company with no operations since then.
Fact 12: The RM with KruseCom resulted in the KruseCom shareholders owning over 50% of QSGI common stock. IRS Section 382 addresses the loss of NOL’s in a change of control and the annual limitation on the remaining NOL’s.
Fact 13: KruseCom did not report in a PR in March 2011 that it was awarded any or multiple government contracts. It issued a PR that stated it prevailed in an auction of a lot of surplus equipment from one government entity and location (of unknown size).
Fact 14: KruseCom did not report in a PR in June 2011 that it was awarded a contract that included the remarketing and resale of 500 high-end servers. It issued a PR that stated it signed a contract to perform certain services related to a company de-installing 500 servers. KruseCom is not involved in the remarketing and resale.
Fact 15: There is no difference in how one would view, assess or otherwise value QSGI based on whether it decides to be an operating company with subsidiaries just like it had been before BK or if it choices to be a non-operating company with subsidiaries.
Fact 16: QSGI’s stock has not traded at $2.75 upon approval of the RP or completion of the R/M.
Fact 17: If QSGI traded today at $0.30 cents a share, that would be a market capitalization of over $70 million dollars. This would be for a company forecasting forward 12-month revenue of approximately $8 million.
Fact 18: “Cheap Refurbished Computers” is not a wholly owned subsidiary of QSGI. It is part of KruseCom that operates under the “assumed name” of “Cheap Refurbished Computers”. The business operation entails selling used computers and related equipment on the internet. They have virtually no inventory for sale through this web portal. This sales channel competes with untold hundreds of other similar web portals offering similar products for sale.
Fact 19: “Joe's Scrap” is not a wholly owned subsidiary of QSGI. It is part of KruseCom that operates under the “assumed name” of “Joe's Scrap”. The business operation entails soliciting and picking up scrap IT equipment from companies. This also entails cold call telemarketing operations as evidenced by this solicitation for a part time employee to perform such tasks:
“This is an outbound telemarketer job, setting appointments. We call on large companies across the US, and ask them if they are interested in our services. Hiring Organization: www.JoesScrap.com”
”Location: Palm Beach Compensation: $10 per hour plus performance bonuses This is a part-time job.”
Fact 20: It is not known how many insiders of QSGI/KruseCom will sell shares, at what times or in what amounts. It is known what restrictions related to shares held by these parties and it is known that there has not been any “lock-up agreements” disclosed. It is known that a poster stated something to the effect that insider shareholders would be expected to sell some of their shares. This one is included to make it clear that nobody has knowledge of what will happen and claims that shares will be sold or claims that shares will not be sold are pure speculation.
Fact 21: A company is valued on the O/S shares of the company, without regard to who holds them and without regard to how many shares can be sold on a given day. A company with a billion shares O/S and a “public float” of 10 shares has the same market capitalization as a company with 1 billion shares O/S and a “public float” of 995,000,000 shares.
Fact 22: Marc Sherman and the CFO of QSGI obtained 5 year rolling contracts from KruseCom right before the R/M with QSGI.
“Term. Company's employment of Employee under this Agreement shall be for a term (the "Employment Term") of five years commencing on June 16, 2011 and ending on June 15, 2016. The Employment Term shall automatically be renewed for successive additional one year terms on each anniversary of the commencement of Executive's employment under this Agreement, beginning with the June 15, 2016 anniversary date, each of which terms shall be added at the end of the then existing term”
Marc Sherman still has an employment contract with QSGI as well. Per the RP, that will expire in mid August. It is unknown what if any contract Marc Sherman and the CFO will have with QSGI going forward.
Fact 23: Marc Sherman, his long time associate Carl Saracino (KruseCom management) and David Meynarez (CFO of QSGI and KruseCom) control over 60% of QSGI’s common stock. QSGI/Kruse can use “written shareholder consents” to effect almost any change that requires shareholder approval. This includes making any changes to the AS count or classes of preferred stock, etc. These three persons have total control of everything from who will serve on the BOD to who will be officers of the company.
Editorial comment: Practically speaking, they control their own employment, compensation (including bonuses), stock and stock option grants, etc. If they want or feel they need more shares for any reason (like keeping 50% control), they effectively have the power to have them granted to them.
Fact 24: Marc Sherman and David Meynarez make up 40% of the BOD. A 3rd BOD member is David Waldman, a person who has handled QSGI’s IR activities for years.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=64959874
You are 100% correct.
Don't forget, if the CEO is ALLOWED to sell at least 3.5M shares of stock per quarter. This does not include his legacy shares.
So, if he sells at an average price of .10, his 3 month bonus will be 350K. Not bad.
He won't do this some naive investors think. Oh no? This is the guy who took a 4K advance.
I want to see how this company pans out.
S4, ain't nothing wrong with putting beautiful ,positive thoughts out there wrapped in a whole lot of love for LBSR!
Exactly. He needs cash. What does that mean in less than 3-6 months when he and his group begin dumping 3.5 million shares per quarter?
Tell it like it is bluebird!
By the time the creditors start selling their shares, this will be back to .04.
Once the shares are not restricted anymore, everyone sells for free money, 190M shares worth of free money.
This is a tragedy and most people here have not done any research past this board. And they are loud as if volume was any indication of intelligence.
Chris, do you mean the music of the slow squeaky decline of an old rail car full of junk?
Yeah, no, they can't face that...
"190 Million shares that will probably be used for acquisitions"
Or they could be dumped.
"and a share count of 72 Million...would put the PPS in the 1.74 range"
Or you could use the real number of shares, which would include the 190 Million. What would the PPS be then?
"We heard 2011 revenues will be in the $20 Million range"
Really? Where did you hear that a message board! lol!
People don't get your research from a message board.
Revenues are projected to be $8 Million. Don't be misled.
king, i love your posts! awesome attitude! i bet you are a great dad!
Tuesday, July 19, 2011 11:04:16 AM
that's the date of the post i'm responding to. try again bud.
"Float only 14 million and more than half have traded or have been soaked up"
That is a pure misinformation. Provide a link to where that will be the case come the date you quote of sept 21st.
That day the share price will be near .04 and you know it.
i hear you and understand your frustration, however it's no easy task to get as far as LBSR has. patience is needed friend. GL
you can put gold in your ira, which is held in a depository. if the future turns out the way gold is indicating, everyone might want to own some gold nuggets. that's why lbsr is a sleeping giant. i'm comfortable with money here.
See what I'm talkin bout Pec?
It's the selfish CEO who rewards himself before shareholders story.
What happens to companies like that? Anyone?
Excellent article. I like this last line:
“Men who can be both right and sit tight are uncommon. I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make the big money.”
Thank you Hammer!
Some people have a lot of time or plenty of negative energy to give. I could understand if this was a POS, but this is a company well worth the wait.
Ignorance is bliss, LBSR is golden.
JMHO. this is common in pennyland not just LBSR. that is fact, not just my opinion.
that's a lil dramatic big. i'm comfortable with my money here.
i wish. however i doubt that will happen. green finish today.
that's very interesting. thank you ratto. they don't mention albania unfortunately, but good none-the-less
Gomez, now that it is an intelligent post with answers. I can't argue with that because you provided what i asked for and in the specifics you noted, you are correct.
I'm still a little uneasy about a few things. But thank you for your response.
please explain to me what the Q coming off is going to do to the share price?
not one person here can justify the valuation of this POS. seriously. kindly explain how the value of this company is more than .04 a share. thanks in advance.
Are you "suspecting" or "doubting" PSPW?
I respect your opinion, however it is important to note that in most of these "proposed" deals, dates for completion are almost always pushed back for many reason. Also important to note that the "partners" that PSPW contracts with are often Global Companies that have more than one deal going on, in different geographical locations. So, while 3 years is given in just about every deal, it is more likely that they will take longer for the obvious reasons.
THANKS tiso!
ORDER GRANTING CONFIDENTIAL TREATMENT
The only reason the SEC would grant this is because there is MATERIAL information "in play" here.
IMO this means that the finalization of the 'MATERIAL" is underway, OR that the "MATERIAL" has lead to another, completely foreseeable development that could have been inferred if the "MATERIAL" info was released before finalization of the deal.
I see this as a formality as well; a necessary, but very important formality that will signal to the markets today, that news is imminent.
Today, I add more.
THAT"S B/C YOU ARE A REALLY INTELLIGENT PERSON WHO UNDERSTANDS MORE THAN MOST!!!!
LBSR is GREAT! READ THE DD!!!
Just a note to all new posters here, there has been an incredible amount of DD here posted up top by the great Mods. If you take the time to go thru what has been compiled over the course of years, it would indicate that you are serious about LBSR. Those who wish to be spoon fed information should take it upon themselves to do the reading of the material that has ALREADY been provided.
If you are serious, READ and learn. If not, then at least don't ask to be spoon fed.
Good News Spy! LOL!
Nothing new, there are 300 million shares of junk right?
looks like more than just us picked up on that.
Amigo!!! if we get valued at anywhere near GORO (1.3B), i think all our heads will be spinning!
Good thing we have auto pilot on the Pirate Ship!
My Pirate friends, we sit pretty with LBSR!!!
MASSIVE DILUTION ALREADY
Verifiable Proof, already provided by Spy:
“The close of the Exchange Agreement transaction (the “Closing”) took place June 17, 2011 (the Closing Date”). On the Closing Date, pursuant to the terms of the Exchange Agreement, QSGI acquired all of the outstanding ownership interests of KruseCom (the “Interests”) from KruseCom in exchange for 190,000,000 shares of QSGI common stock.”. These are Rule 144 shares and available for sale after 6 months, based on volume limitations on each shareholder.”
Regarding your other claim that the attorney can't sell his shares....ever, thank you Spy!
Better do more homework ...the attorney shares are restricted for one year...as for the 190 million those may be trickled in as the company grows ...there will be no "dumping" ....
sure the attorney has a sideline deal ...so what? means nothing
more meaningless diatribe ....without factual support
S4! My man! King!
Yes, that article opened my eyes about valuations. The mgmt of the company was ripping investors where it hurts!! I feel bad for those poor folk. They invested into the ground, literally; and started digging. They are wildcats. At least we got ZTEM!!!!
Back to the 4th, have a great one!!
Mat, FACTUALLY INCORRECT.
Attorney can sell his shares at ANYTIME, NOT if ever.
As for the 190M shares, dumping can begin after 6 months, again NOT if ever.
So this will NOT have an effect on the tradable float?
Really, Let me ask you then, what will happen when 3.5M shares hit the market? Average volume has been real thin. Add 3.5M to a daily average of 250K.
Just the attorney dumping could bring this back to .04 people. His cost is .04 if you would call it that.
Happy 4th Pirates! LBSR vs GORO
This is VERY relevant to LBSR so Mods please don't delete the comparison of LBSR and GORO.
There is a very interesting article in Barron's this week about a company called Gold Resources (GORO). This company has not verified ANYTHING using ZTEM. Although they recently hired a firm to a 43-101 for "indicated and measured" mineral resources. Valuation for the company is $1.3B; stock price $20+
Now here is the beauty of it, LBSR arguably has more data pointing to "indicated deposits" than GORO does, and GORO trades at $20+....at least until tuesdays when the market gets wind of this article and the hefty compensation management is getting.
I mention GORO here so that readers can research the company, the games they play with compensation, projections, dividends and then look at LBSR and the management team we have. They make the GORO look like a bunch of hoodlums writing themselves blank checks.
The take away here fellas is that once the reports come back, we will be at .20 again. There are too many dishonest companies out there.
Spy, your DD on this Board is the most honest
I need your take on what will happen when the attorney begins to dump his shares. 3.5M shares right? He can dump at any time? Please correct me if i am wrong but if someone dumps just 1M shares, which he got at .04 on to the market, where should we expect to see the stock?
So, if the attorney dumps 3.5M shares at .15 he makes $525,000. That's a nice chunk of change.
Seems as though Sherman has this down pat.
Thanks in advance for your response and honesty.
Dilution it seems has turned into Delusion.
Lmhu, what's your opinion on the massive dilution about to take place?
I trust you recognize the over valuation here; explained in detail by Spy.
This board is tops. If u been here a while u appreciate HKipp, S2, Dragon, King, learning, and who can forget SGR. There are more of course. It is important to recognize these individuals for their merit here.
Many thanks to you all!
KING! how the hell are you Sir!
LBSR is looking real good man!
That's not what he is saying at all. My interpretation of the 8k was impending dilution. I did not buy yesterday, so I'm not emotionally attached. Seems like a good product, but dilution also seems imminent. Market is not stupid. I really didn't like he 10M "Blank Check" Preferred Shares. That means they will be the ones with the high value. Who knows, this could turn out to be a really good one.
Just my thoughts. Please don't get pissed at me. I bite. Lol!
I have the right like you and everyone else to say it as many times as i want. You do have the luxury of ignoring me. My words are for new investors. Just because i made some change doesn't mean i don't have an obligation to warn the next investor of the things that i missed on my initial investment.
You don't decide when i stop typing. Understand kid?