Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I shared the link
Don't understand your question. Just do a search under Wetouch, but I provided the link in a prior message.
Read the 10-12G
You'll understand what happened since you obviously didn't grasp my explanation.
https://www.streetinsider.com/dr/news.php?id=17471582&gfv=1
Shares went to Wetouch
Shell (ie. GLFWD) retained ~10% of the shares outstanding and the surviving company, Wetouch, got 90%. Fairly standard for this type of RM.
The float is going to be extremely thin with only ~700k shares available, so any positive news will get magnified. Hopefully Wetouch has some positive information ready to be released.
Financials, excluding revenue growth which seems to have been hit by Covid, were fairly impressive. Great net margins of 37% in the most recent quarter.
Nice buys
Picked up another 70k shares myself in the $0.12-$0.13 range. Frustrated with management and the approach to informing the markets, but this will pass.
Valuation perspective
At the current price, CLHI/TDS is valued at ~$6.25mm. Apply a 10x multiple to that to be conservative to get to the implied value once TDS officially takes over (ie. additional shares issued to TDS to obtain a 90% pro forma ownership) and it's still only a $62.5mm market cap. The post-money value for the funding round in August likely was at least $200mm if not significantly higher given ZoomInfo's comparable valuation (and TDS does more than ZoomInfo given its various data management businesses). This also ignores the US B2B acquisition (seems like a game changer) and the other one announced on Twitter (which could generate up to $80mm of revenue by the end of the first year according to management).
Profit taking is just a natural consequence of the recent move and the lack of a PR that explains the company and its plans. Perhaps they're waiting not just on OTC markets, but to close the second acquisition before opening the curtain and unveiling the story in greater detail. I can only speculate like everyone else. Holding patterns are frustrating, but the fundamentals only continue to improve.
I owned a lot prior to yesterday and was fortunate to buy a little more sub $0.20 thanks to gift prices from sloppy trading (and the flash crash that seemed to occur).
Flash crash HH?
The trading today is mind boggling, even for the OTC.
Market waiting...
For the axe, HH, to raise his price target on CLHI. Need a catalyst!
It is well timed in one respect
Anshu won't be doing another earnings call until February at the earliest. Gives him more time to try to manufacture a recovery in the split adjusted share price before the disgruntled shareholders can have at him again.
It may be standard wording
But responsible management teams reduce the AS in a proportional manner. Seen it many times with other reverse splits. Provides additional evidence that Anshu doesn't care about shareholders and value creation.
No decreases in the authorized shares either
If you're considering being a hero and buying here, plenty of time to wait. See if Anshu can at least deliver something close to his very aggressive gross margin target.
The revenue target is on a "run-rate" basis, so the implication is that he will deliver $12.5mm in revenue in Q4 2021. Certainly possible if he has enough working capital, but the gross margin target seems way too high. We shall see.
Authorized Shares of Common Stock
The Reverse Stock Split will not change the number of authorized shares of the Company’s Common Stock under the Company’s Certificate of Incorporation. Because the number of issued and outstanding shares of Common Stock will decrease, the number of shares of Common Stock remaining available for issuance will increase. Currently, under our Certificate of Incorporation, our authorized capital stock consists of 7,500,000,000 shares of Common Stock. The Company intends to use its authorized but unissued shares of Common Stock to comply with conversions pursuant to its outstanding convertible notes and preferred stock together with the exercises of its outstanding warrants. In addition, the Company may use its authorized but unissued shares of Common Stock for future financings, investment opportunities, acquisitions, or other distributions and stock splits (including splits effected through the declaration of stock dividends).
Valuation is absurdly cheap
Currently, the stock is trading at ~3.4x run-rate (ie. last quarter annualized) earnings. That's earnings, not revenue. For a company that likely will grow revenue at least at 50-100% for the next couple of years, that's incredibly cheap. Put a 15x multiple on earnings and the stock is $0.12-$0.15 and that's arguably much too low of a multiple.
I'll let others speculate on the reasons for the stock reaction in the last couple of days. It's unjustified, but it happens a lot on the OTC (unfortunately). On the positive side, it represents a great opportunity if you can take a view of as little as a few weeks (or perhaps days with the right PRs).
Explicit acknowledgment of CLHI being the underlying ticker
I do like that they did that again. Need a PR to get the algos and perhaps some micro-cap investors interested. Won't take much buying power for the stock to re-rate to much higher levels.
Thanks for sharing.
5x run-rate earnings
Flippers are so short-sighted. 20x multiple results in a $0.17-$0.20 stock.
Catalysts
Too many to enumerate (and probably not an exhaustive list and not in order), but here goes:
1. PR acknowledging TDS "owning" the CLHI ticker and being the underlying company. Perhaps a moot point for some, but I think there are many OTC traders that need to see it to believe it (sorry for the cliche).
2. TA verification of share structure.
3. 8k making ownership of the CLHI corporate entity official.
4. PR or presentation highlighting the exceptional opportunity for the company and the company's current business fundamentals. It should also discuss the recent acquisitions, which have largely been underappreciated in terms of the stock price. Details of the previously executed capital raise would help a lot too as it should set a much higher baseline for valuation. I also hope they include a comp table comparing the relative valuation disparity versus ZoomInfo, DataDog, Snowflake etc.
Like I said, not an exhaustive list, but events and information that I'm looking forward to hopefully very soon.
Hoke needs to raise his valuation target:)
Updated details of the companies various data sources demand it!
Good catch
That's certainly a new section with great stats on the various data sources. More support for the legitimacy of TDS as a competitor in this space versus ZoomInfo, DataDog, Snowflake and others.
Looking forward to PRs soon now that they have access to the TA and other necessary areas.
Thanks for confirming the hypothesis
From our perspective as current CLHI holders, we're in a win-win situation. That said, I think Synergy is pursuing something that ultimately has no relevance to current CLHI shareholders.
The more I think about it
The more I'm convinced that the Synergy update has nothing to do with the current CLHI. Seems like former shareholders are trying to get Synergy to see if there's any recovery from the former company that existed prior to dissolution.
Agreed
In my view, this is a Synergy issue given the transfer to TDS already took place.
Thanks
The update should have been more clear with respect to current CLHI shareholders. I hope Synergy issues a clarification.
If the old CLST was dissolved, I'm not sure what claim prior shareholders have at this point. It seems this investigation really shouldn't have any bearing on the "new" CLHI, but this isn't my area of expertise.
Perhaps this was the snag that TDS was referring to and let's hope it's cleared up from their perspective.
Can you explain the significance?
Trying to understand if this is actually a positive for CLHI shareholders to the extent there is a potential distribution. If not, there shouldn't be any impediments for TDS, correct?
Order update
Orders up 6.5% w/w to 231. That's just the "core" business and obviously excludes Creditsafe and the upcoming US B2B business.
We need a PR to tie this all together and formally make an association with CLHI (which they've acknowledged in multiple tweets).
GNU$, granted an unrelated business, saw it's stock run from ~$0.30 to $11+ in a matter of weeks (equated to a $2bn+ market cap) based largely on PRs with minimal substance (or at least evidence of traction). TDS' one acquisition, Creditsafe, is apparently generating $40mm in revenue with a path to doubling in a year.
To make this all work, TDS has to get get the stock price a lot higher. Let's see the plan!
Management liked this tweet
Progress? Close to the long sought after PR?
Really like the strategic acquisitions, but the company needs to tie them to the stock listing with a PR. Incredibly frustrating for shareholders.
2:46 PM · Sep 29, 2020·Twitter Web App
Some thoughts
The $250mm market cap seems low (perhaps very low) given the recent developments. I believe the post-money value on the private raise was most likely already in that neighborhood. Given the US B2B database acquisition and the announcement yesterday, I believe the valuation should be in the $500mm-$1bn range given comparable multiples. That said, there's a lot we don't know and valuation is a lot more art than science at this point, but it all points to a lot more upside.
If they're going to issue stock to do part of these deals, one would assume they are going to get very active "selling" the company to the markets to get a much higher valuation (and minimize share issuance). I think there's a lot to look forward to in the month of October (finally!).
Did they tweet something?
Where's the evidence of a PR coming?
US-based income..
Can take advantage of the NOL now too!
Doesn't mean the "deal" is delayed
Highly certain it's tied up in OTC Markets hands. They said they submitted what they needed to a few weeks ago. Moreover, if the deal were delayed, they certainly wouldn't be interacting with tweets. They'd be radio silent.
I disagree with your conclusion as the evidence doesn't support it.
UK company is probably being overly conservative
They're getting advice from someone that is probably overly conservative and they don't want to run afoul. Not saying I agree with them (I don't), but they're in control.
I am encouraged that they're acknowledging the relationship with the stock and investor frustration. That's a good sign at least, even if it's not helping the stock price near term.
Takedowns are the product of low volume manipulation. Frustrating for sure.
Check out this thread
In particular, the two most recent tweets. You will see that the company "liked" the tweets, despite their obvious signs of frustration.
TDS Update - All is good & progressing, a bitter pill to swallow but please just be patient! Sorry we can’t say more but we really can’t, as it will effect things in the future. Stay positive and think of the rewards. This is a great journey we are on.
— Argentum Data (@ArgentumData) September 23, 2020
More interaction on Twitter
Definitely paying attention to shareholders concerns. Just a matter of time, but I said that last week too:)
End game has only gotten better even though the path is taking longer.
If it's any consolation
The company continues to "like" tweets that express frustration with the process and the undervaluation of the stock (ie. CLHI). I suppose that at this point, we have to assume that whatever is holding them back from a PR is important in their eyes.
Keeping the pressure up is fine by me, but there is a strong indication they're frustrated by something as well.
Certainly seems that when the substantive updates drop, there will be many of them to share.
Power of the PR when it arrives
$PI puts out a PR that it's entering the EV space (no specifics, just the intention to enter) and the stock explodes (perhaps the biggest one day move I've ever seen in my 20+ years including the first dot com bubble).
I mention this because once the substantive PRs start flowing here, we're going to be set. This is a fast-paced industry and there should be lots of strategic developments to talk about.
Fair summary
I haven't been involved in the stock since early 2020, but I have followed the company since Anshu's first earnings call in 2017 (back when there were 5 posters on this board). Without rehashing the obviously troubled history of this company, I would say that it really all started going downhill in late 2017 when he started taking VCD to fund the operations. He explicitly said that he wouldn't allow any notes to convert (go back and review the earnings call in September 2017 to confirm), but obviously that didn't happen. In fact, there's been multiple instances of over promising and under delivering, but that's partly to be expected with what effectively was a startup and given the difficult relationship with Monaker.
One of the key issues I would have as a shareholder is Anshu's complete disregard for cost of capital and the dilution at all costs to drive growth mentality that has destroyed a lot of shareholder value. Listening to the call yesterday, I don't believe they've learned their lesson and still adhere to that mentality. In fact, they seemed to have doubled down on that mentality as the only way to meaningfully grow the share price. I think that's dangerous, but if they execute, perhaps a good return from these low levels can follow.
The incremental transparency in financials was good to see, but it was a necessity to appease US lenders. I would add that the gross margins for the US business were below 10% in the quarter (if you assume that the ROW earned the same gross margin as Q2), so he diluted to fulfill the gown order to generate a rather paltry margin. Was that a good deal for shareholders? At least he's seemingly de-emphasizing PPE as a growth driver so we'll see if he's right that the remainder of the oncoming US businesses have better margins.
My final bit of advice to a prospective investor (not you obviously) is pay attention to gross margins, not revenue. To this point, this has been effectively a distribution story and there's been very little evidence of first-party brand development or the creation of higher margin sources of revenue. If you believe the comments from yesterday, we'll see some evidence of improved gross margins in Q4, but those results won't be released until late January or early February.
GLTA.
Great message Hoke
Been offline a bit due to a loss in my family, but this message should go on the other board where I've been posting about CLHI as well.
This situation does seem like a matter of "anyday now". A flurry of updates should hit within a relatively short period of time once OTC Markets gets through their process.
CLHI: Cheap way to play the highly valued data management business
I think at this point, most are familiar with Snowflake and the incredible reception it received after going public. Well, if you're looking for the next great data play, look at CLHI. The Data Source (TDS) is merging into this shell and several important announcements should be coming as early as next week.
TDS is in several high growth, high margin businesses: lead generation, data management, AI. Competitors including Snowflake, ZoomInfo, Datadog are valued anywhere from $15bn-$70bn. CLHI? Currently valued at $4mm. Moreover, TDS completed a capital raise which based on reasonable assumptions, likely put a post-money value of at least $150mm. Keep in mind, this offering was completed in early August and valuations in this sector have only gone much higher.
A couple of TDS officers are already listed on CLHI's profile page on OTC Markets (Robert Stephenson, CEO, and one of their compliance officers). More updates are sure to follow soon. TDS management is active on Twitter and has been "liking" several tweets that tie the company to CLHI and suggest the valuation is absurdly low in relation to the sector.
TDS has a high quality management team and Board already assembled and will surely be looking to uplist to the Nasdaq as quickly as possible. In particular, the company has an accomplished CFO who is well-prepared to take the company to the public markets.
What's interesting to me..
Is that they are again acknowledging CLHI being the stock that represents the company and they are agreeing with a view that the valuation is absurdly cheap.
Why this is ok during a "quiet" period and releasing a PR is not ok escapes me, but I hope we can stop asking these questions soon.
Probably waiting for audited financials
The CEO has repeatedly said they're working on audited financials, which is very important. I imagine there's foreign investors like his partners in Turkey that need to see those before buying stock.
As far as a RS, it doesn't make sense at anything close to the current price. There's only 65mm shares outstanding and the company doesn't need capital for its current operations (it is cash rich with no debt). I'm sure they'd like to raise some capital to do more deals (would be accretive to the share price), but not at the current valuation. If the stock trades at $2-$3 (one could easily argue for that price NOW based on PE multiple of 6-10x), then a RS might make some sense to enable an uplisting.
This stock is plagued by poor IR, but the company has been more communicative in the past couple of months. I've also noticed a change in tone as they are less combative with investors and more conciliatory. That said, they need to get the audit done and produce more detailed financial statements.
More interaction with tweets today
Suggesting that we could be close to at least some of the substantive updates we've been waiting for. I'm optimistic that we'll see a slew of substantive updates before the end of the month.
If they're going to interact with tweets
Why not just release a PR? Very little difference in substance IMO. Let's get on with it!
I assume the compliance guy they hired signs off on all external communication, so I have to believe some meaningful updates are imminent.
Management interacting on Twitter
Liked at least one shareholder frustration post. Perhaps we're close to a substantive update?