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.
Low margins?, consider this:
Equally disturbing is the unfortunate margin guidance following the 1st Quarter 2012 that was published and referenced as late as June 2012. How could a competent CEO possibly blow a business prediction by such a huge percentage? Did they go into the local inventory program with absolutely no realistic idea of what margins to expect? Wallach bragged just last Spring:
Angel, as an original investor
you're posts are always welcome, interesting and informative. Your latest is a sad one but certainly understandable and spot on.
One thing you said particularly caught my eye:
O.K. I'm confused,
Do you somehow see a contradiction between your snippet of a post taken from some mystery context:
and this post which stated:
??? Seems to me that they go rather well together so what's your point?
And please verify your claim that I said "Dump the CEO, or have the decency to admit you were in error.It really cast me in a false light.
Don't agree with your current philosophy Townie!
Suggesting that others sell so you can buy cheap shares and otherwise implying that the stock is overpriced (particularly in combination with the current plunge in yearly earnings) is not in the best interests of your fellow shareholders.
On the other hand, even the possibility that the BOD could be restructured with a majority of independent directors should have a positive influence on the share price.
Not a bad analogy Bull
As falling trees go, KEI sure ain't making much noise whether or not there is anyone in the forest to hear them.
I too have been critical of their performance but lately I've begun to wonder if we are placing blame in the right place. After all, it is management that is ultimately responsible for when and what data is released. KEI's job is to present and disseminate such data it in a professional and effective manner.
Yep, I've been in contact with them too and I have to wonder how long their relationship with Capstone will last if it appears that their own reputation will suffer as a result?
The $280 worth of CAPC stock traded Thursday
On a day that the 10-k was discussed (or excused) and guidance was provided for next quarter was certainly a thunderclap slap in the face of management.
Talk about a stinging vote of "No Confidence".
They certainly do need to mend some fences by at least meeting the new predictions.
Wrong on so many fronts, Townie
CAPC would not even be trading if it wasn't for Stewart and others putting their personal monies into the Company.
Exactly what "personal money" has Stewart put into this company?
C'mon, be specific!!! Do you mean that he bought stock in the company? Well whoop-de-do! Do you mean he loaned money to the company at wonderfully favorable (to himself) rates?
C'mon Townie, you have posted this before but have never answered the specific question of that "personal money". It sounds good but it is misleading.
And how do you conclude that the company would be dead without Stewart, his wonderful salary,and his failed and failing business plans as shown, once again, in the current disastrous 10-k?
Lastly, how can you claim this?
I basically agree,Gerard
At the very least it may be time to remove Wallach from the BOD before which, as an employee of the company, he need appear only in an advisory capacity.
If you read the 10-k carefully you will note that the minor stockholders may now get that opportunity!
Even better,they might get tho opportunity to elect some competent independent directors
In my opinion, and based on my interpretation of the data,I believe he has lost the support and confidence of the two major independent shareholders thus also losing his lock on the directorship.
Update - 2012 Year End Earnings Release
As I mentioned previously, the earlier forecast date for the 10-K was subject to change and it now appears the release date will be around March 26th.
Look for confirmation in the near future.
Welcome back Network/Vorticity
Always good to read your well-reasoned posts.
I agree with you completely that the 3rd quarter has historically been the company's strongest however I believe we will see the 4th quarter becoming the star this year. This is partially because of some order and delivery delays which moved revenue accounting from the 3rd to the 4th quarter. But also, shorter lead times from the domestic shipping model may have compressed much of the Christmas traffic into the 4th and this could continue in subsequent years.
I believe you've made an accurate estimate.
I'm expecting them to announce record 4th quarter sales of perhaps 3.1M which would would result in 2012 revenues at approximately 9M or roughly a million bucks short of last years total. This agrees with your numbers.
I'm estimating that the additional start-up costs for the 2012 inventory based distribution program may contribute towards a total loss of around 200k, somewhat greater than your estimate.
2012 Year End Earnings Release?
My information indicates a strong probability the 10-K for 2012 will be released on Wednesday, March 13th.
Sorry, can't reveal my sources and can't guarantee this may not change.
To Buy, or not to Buy?
Aye, that is the question.
In my opinion, the chance to buy CAPC in this roughly .0075 to .0085 trading range should represent a potential for short term profits of as much as 100%. This is based on the anticipation of the release, in the next four to five weeks. of very good fourth quarter results.
Mitigating this scenario for a quick flip are two strong factors.
First, while the 4th quarter may be great, will it be good enough to overcome another yearly loss?
Second, the stock is so thinly traded that it might be impossible to take profits at all, let alone without dumping the price.
Also, until management shows the desire, backbone and competency to truly represent shareholders' interests, there is no certainty that they will propagandize and capitalize good news. Remember what happened following the release of profitable 2011 results? ... Nothing!
So it remains a crapshoot, Gerard. If anyone can successfully execute a quick short term flip of enough shares to be worthwhile, this might be an opportunity. But if they miss, they will morph into just another CAPC stuckholder!
In any case, I cannot see selling at these levels given the possibility of a boost from 4Q earnings looming on the near horizon.
Costco seems to have been a stalwart
(Not to be confused with a Walmart)
in the sale of Capstone's Eco-i-Lites. I have seen them consistently stocked in their stores in my area as well.
I wonder how last weeks Adairsville Tornado affected the sales of these devices up in N. Georgia?
Please allow me to help you here Townie.
You asked:
Balanced write-up, Nice find, Thanks msturgeo
Let's stick to facts.
My objection to your original statement is separate from whatever problem you have with Flp. This discussion has grown from your post #64030 which preceded any response on the subject from any other poster including Flp. You are responsible for starting this thread!
This is the exact quote from your post:
An insider certainly was selling. Whatever his reason(s) for wanting to get out of Dodge are academic; he certainly dumped a bundle. Quibbling and equivocating about how a huge insider sale to another director is not really a sale is ludicrous. These sales are documented. There is no wriggle room here, your statement was false and misleading. Continuing to tergiversate does not change the facts.
Ullmans sales of stock rendered your claim false.....end of story!
When is a sale not a sale?
In two separate posts today regarding insider sales, and more specfically Howard Ullman's sales you stated first:
And later, when it was shown that Mr. Ullman had indeed sold shares you admitted this:
I had no need to look further because as we both have stated, Ullman SOLD SHARES. If he SOLD SHARES privately did he not SELL SHARES?
By the way, if you had looked a little further at the references I gave you would have found a copy of that elusive Form 4 you think doesn't exist. Yes, they are filed on all SALES.
http://www.secform4.com/filings/814926/000093980211000187.htm
I have suggested we end this discussion because the simple fact is an insider, Ullman, did sell shares contrary to what you have repeatedly stated.
This has gone beyond the absurd!
Howard Ullman, as an insider of CHDT Corp. HAS SOLD within the past two years millions of shares of the company's stock!
http://marketbrief.com/chdo/4/insider-trading/2011/8/1/8951081
And that was not his only sale:
http://www.secform4.com/insider-trading/1277373.htm
Personally,I don't give a damn if there are supporting "4's" or not. If you are so concerned with this anomaly may I suggest you call the company, or Howard Ullman, or the SEC and inquire if these shares were sold.
Otherwise let's call this settled.
Apples and Oranges?
I agree with much of what you say relative to the fundamental change in the company's operation ....a change I feel will divert much of the revenue realization to the fourth quarter results.
I've said before that I predict Q4-2012 will show strong revenues, possibly even setting a record.
That would be a natural outgrowth of the switch to a inventory based operation and does not necessarily portend a profitable year.
And I will also predict that Q1-2013 earnings are going to be a disaster.
But my point has nothing to do with revenues or earnings. It is the dismal failure of management to support the stock price.
The stock has fallen off the radar into the doldrums of the barely Pink Sheets. This message board, which used to have dozens of posts discussing the stock each and every day now counts a half dozen posts as a good showing. And the record results of 2011? They were not promoted to even give a decent flash in the pan in the market place. (So far KEI has been a bad joke.)
I don't believe people would be selling so many shares at such distress prices if they had confidence that management is presently and sufficiently interested in supporting their shareholders
The stock keeps getting "Wallached"
CAPC opened today with 390,000 shares dumped at .075.
It's a tough job driving a stock's price this far down and holding it there but apparently somebody's got to do it - at least until the shareholders have had enough.
Or the little "Simply Comfort" boondoggle?
But my all time favorite, which I'll bet nearly all of you have forgotten, was Howard's plan for CHDT to profit from their "expertise" on dealing with the Chinese by offering a consultation service for companies interested in trading with China.
Luckily it never got off the ground .....it would have been a case of the inept leading the clueless.
Nice Find Msturgeo
Amsterdam informed me that the manufacturer is Capstone Industries ie the US branch of the company.
"Amsterdam", by the way, is in Amsterdam NY and not the Amsterdam of the Netherlands.
It appears that Amsterdam specializes in gift or giveaway promotional items strangely reminiscent of CHDT Corp's old Souvenir Direct division.
Absolutely Not!
That would be information for the iBox and much of it already exists there.
Let's not clutter up the stickies with this sort of thing.
Bull, You're saying they stopped trying?
Thanks for the reminder Flp
I forgot to include "Simply Comfort" on that list of bad management decisions I posted yesterday.
But it wasn't meant to be an all-inclusive list because there are really just too many to remember at one time.
And they just keep coming.
Surprise!!! - Surprise!!!
I too am looking forward to a strong fourth quarter.
This is based on the switch to the local delivery system which should result in Capstone enjoying their equivalent of a quarter long "Black Friday". As deliveries and billings will both likely most heavily accrue during this period it should result in the year's best revenues changing the trend from the traditional third quarter.
One cautionary note would be the accounts' receivable aging reports - let's hope their customers step up and promptly pay up.
Oh for Heaven's sake!
AS I STATED:
Townie, In answer to your request:
Townie, please enlighten me on something.
You stated relative to the failed power grab by Stewart:
Townie, Smallfish was spot-on
And I don't see why he shouldn't be allowed to answer your question relative to poor management decisions, or for that matter, why any other member of our community should be denied participation.
However, your response to Smallfish defines one of the difficulties in responding to your query. You dismissed his response as "history" and obviously any discussion of poor management decisions must and will be based on "history". We dismiss "history" at our peril
The blatant attempt by Wallach to wrest total and absolute control from the minority shareholders (now known as the B-2 Stealth Attack) involved the expenditure of thousands of dollars of those same shareholders' funds to promote a vote on this failed power grab. If successful, it would have allowed him to sell off the assets of the corporation and pocket the proceeds.
I do not know to what extent my immediate public exposure of the details of this plan openly (instead of to a select few shareholders) was responsible for the withdrawal of this abomination and its subsequent categorization as "Oops it was all just a mistake". Was it coincidence that my dragging this out from under its rock resulted in the immediate, embarrassing "whoops"?
Personally, I do not believe that anyone could possibly categorize the as anything other than a poor management decision!!!
Bull, apparently you missed the whole point
of the exchange between RVD and myself.
RVD had strongly and repeatedly suggested a viable market for Capstone products and was IGNORED. Other companies are right now capitalizing on those same type products.
What about this did you not understand?
RVD, leash lights are a hot gift idea.
As you predicted!
Of course they are not Capstone units, it appears those have disappeared from the product line. Figures!
An article in the Atlanta Journal this week proposing some out-of-the-ordinary Christmas gifts mentioned the "Dog-E-Glow" LED leashes and collars (available imprinted with your favorite college logo) as being a new gift idea.
This is the second time recently I have seen this same product recommended as a hot gift for the season.
Checking the net shows a number of other outfits offering similar lighted leashes and collars this year.
Here's the Kicker - These are not large, well known manufacturers. They are small suppliers feeding a niche market where there is little competition from the big boys. But, as you have pointed out, this market not only includes the specialty shops like Petsmart but also the Big Box stores like Target, Home Depot and Walmart; stores where Capstone already has a foot in the door.
Franky, my disgust with questionable management decisions by this company is growing every day. Most recently, I believe they wlll be stomped into the dirt by the majors if a market for LED emergency lights and door cameras for the hotel industry develops.
The pet leashes however were a market of the size and type where they could have excelled. Your promoting it was a good and timely idea that has proven to be correct ......for others Unfortunately, once again, those others stole the ball from us and ran with it.
To Review Capstone's Third Quarter Conference Call:
A telephonic replay will be available from 1:00 p.m. ET the day of the teleconference until Thursday, November 22, 2012., To listen to a replay of the call dial (858) 384-5517 and enter replay pin number 402597.
Alternatively, the archive of the webcast will be available on the Company’s website at www.capstonecompaniesinc.com
A transcript will be posted to the website, once available.
10-Q for Capstone Companies Third Quarter 2012:
(Click on the following URL or cut and paste it to your browswe)
http://www.sec.gov/Archives/edgar/data/814926/000093980212000267/form10q093012.htm
For those in the storm's path
Please remember that if this does hit as a "perfect storm" your power may be out for DAYS.
Unfortunately most of the Capstone "emergency" lights have a battery life of only 5 - 7 hours. So if it lights automatically when the power goes out at 2am, and you fail to awaken, by dawn your "emergency" light will probably be a pretty paperweight.
And you won't be able to recharge it
And you won't be able to replace its sealed battery with a fresh one.
Because It's Really, Really Dead Fred!
(Another great triumph of Capstone ergo-engineering following in the muddy footsteps of STP Tools.)
So for heaven's sake, grab some replaceable battery powered flashlights, some alkaline batteries (that last for years in storage)and be prepared to weather the storm.
We need all the CAPC stuckholders we can save.
What can I say, Adren?
You asked:
Welcome back Adrenaline
But don't be bashful - tell us what you really think.
(And don't stay away so long next time - things are getting interesting with CAPC - the plot sickens.)
Some good points, Dizzy.
I would however expand on one by slightly modifying your statement:
Suppose the goal is keeping the stock undervalued?
One hypothetical scenario would be that it would make it a little easier to justify an artificially low bid/ask. Coincidentally the move into the Pink Sheets could be seen as helpful in diminishing SEC attention to what might be perceived by some as blatant manipulation
And if an insider just might happen to buy enough stock at these bargain prices to insure management their 50.1% majority ownership, you should look for the B2 Stealth Bomber to fly free and unhindered this time.
Then Bull could get his expressed wish for the company to be sold off.
Only problem being that if La Familia takes a unique cut of the sales price, there could be precious little left for Bull, or any of the rest of us minority shareholders to pocket.
(One thing that I wonder about is what this current scenario is doing, and will do, to KEI's reputation and how long before they bail?)