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Townscapes, buddy, you're scaring me. You know, PE is price divided by EARNINGS, not sales.
But don't fret, several others I have seen on this board have also calculated share price based on some multiple of revenues. Maybe that's how it will work out.
2002....this is my point exactly. We're trying to extrapolate some numbers from what we think they were in 2002, nine years ago. $20 million in sales may be correct, who know. But, how many $20 million annual revenue companies don't have an in-house accountant/CFO?
This is why I don't think about Deaf Talk everyday. I dropped a dollar in the DT slot machine sight unseen. I won't know what the stock is worth until I see some real fundamental data.
Jaxs as far as Vegas goes - it was a blast. Not a whole lot of gambling but a lot of drinking and partying....
Hi guys. Just back from a long weekend in Las Vegas where I didn't think of Deaf Talk at all. I do have a tongue in cheek question for you all tho...fundamentals? Ummmm, what fundamentals are we talking about here? Have I missed something?
Information that would be valuable to investors would be the dollar amounts of these contracts. Do they add $10,000 per year to annual revenues or $1 million? We might have better luck figuring out the age old question....How many licks does it take to get to the Tootsie Roll center of a Tootsie Pop?
A fun link while we await financial information....
http://www.tootsie.com/gal_licks.php
Fuller11 first, there was not much volume at all so the wasn't much of a market. Second, some brainiac sold warrants for less than their intrinsic value. I believe we'll see more of this as I suspect there are quite a few clueless warrant holders out there.
Update, Ameritrade has fixed the symbol snafu and TROXW (A issue) had an opening trade of 75 and TROXG (B issue) had an opening trade of 68. Those prices seem about $5 low to me but pretty close to what I thought.
Guys, fyi, Ameritrade has assigned TROXW and you see it in the account. Unfortunately they assigned that symbol to the "B" warrants instead of the "A" warrants. I called and pointed it out to them. I don't think you can trade them yet anyway but what a mess it would be if you sold the wrong quantities of warrants...lol
Sorry, can't link directly but I did a search on the Pennsylvania Secretary of State website awhile back and then bought copies of available documents. You can easily do the same.
The plan of merger is on file with the secretary of state. I did this the same time I did a UCC search to see if I could find any recorded debt of the company. Only found a couple of small capital leases. One for their corporate phone system and one for what appears to me to be equipment they use to demo their product.
This supports my theory that they have never had an audit before because surely a large bank loan would have required audited financials. This in turn brought me to the conclusion that the Company had grossly underestimated the time it would take to complete the audit and required internal controls documentation as required by Sarbanes-Oxley.
Morgan Equities Group had the following shares outstanding at the time of the merger:
Common stock 14,367,531 (par .001)
Preferred stock 3
Warrants to purchase common at par 4,262,840
Convertible prommissory note convertible to common shares at par $1,970.09 or 1,970,090 shares
Due to registered agent 100,000 common
Total outstanding and obliged 20,700,464
Yes. Please don't take this personally okay, but you need to perhaps pay closer attention. The company said they needed to complete their audited financials before they could get listed on an exchange. So TROX trading as an OTC security is no big deal.
I have accounts at Ameritrade and use their think or swim platform. TROX is trading today. Yesterday you could see it trading on Yahoo.
Guys, this all takes some time. The new stock is out and trading now as TROX. The warrants will trade as soon as practical also. Maybe today even, I am not sure. You will be significantly better off selling the warrants as opposed to exercising them. I am sure we will see the warrants trading sometime next week. Remember the markets are closed on Monday.
correct. multiply the number of TRXAQ shares you have by those figures and you're there. you get whole warrants only, no fractionals or cash in lieu. so do the math and drop the fraction to the right of the decimal point.
donemyway, yes, I saw that on the FAQ portion of the website. It is not correct. each share gets A warrants and B warrants
My warrants have already hit my Ameritrade account although there is no symbol or description yet.
donemyway, each share of old stock, regardless of whether it was class A or B will receive BOTH A and B warrants. The description as you have it posted is not correct.
it all depends on what %volatility the market gives these things really.
natomas, i agree with your $70.
At 123 for the common i calc about $71 for the A warrant and $67 for the B warrant.
I think each share (whether A's or B's) get both of the warrants. I am trying to confirm this.
70th, yes, the financials will come. That was one of my points. Management needs the financials to be completed and published just as badly as we do. They have just horribly underestimated the time and work involved to complete them.
Okay, here's my opinion of what has happened here. Someone sold Dave et al a bill of goods with this whole reverse merger thing. They had no idea what they were getting into. No idea at all. They're not liars or stock manipulators or anything like that. They simply were clueless about many aspects of being a public company. It's just that simple in my opinion. They never should have had a press release about the reverse merger without having their house in order, financials, etc etc etc. I am convinced that they are working very hard to get their house in order. In the meantime there's not much we can do about it. I'm pretty sure that management has much more skin in this game than any of us so they are the ones who will suffer financially the most while this process plays out.
Financial statements are priority number one. Period. The financials form the basis for the valuation of the company. Without the financials we are all just putting a dollar into the slot machine and hoping for a winner.
Updating the otc pinksheet website is useless without the financials. Press releases about new contracts mean nothing without investors having the ability to quantify that information into dollars and how it would impact the company valuation.
The press release I want to see has this headline "Deaf-Talk Inc. Releases Audited Financial Statements"
If I can't get that press release then I want this headline "Deaf-Talk Inc. Updates Shareholders on Audit Status"
Until I see the financials I don't know if this thing's worth $2 or 2 cents.
Apparently I shouldn't have mentioned yesterday that the audit wasn't completed yet....
Market is down. Someone perhaps growing tired of waiting for financial info. Who really knows?
But let's put this into perspective, how many shares have traded? I see about 104,000 at about 15 cents so approximately $15,000 worth of stock. At 1x estimated $20 million or so in sales the market cap would be $20 million here. And 1x sales is probably conservative for a growing company with a great story. So, $15,000 in volume really doesn't phase me too much. With the tight float this thing's going to move up and down a lot for no good reason.
I spoke to Dave this morning just to get an update on the release of the financials. He indicated that he was going to press their auditor for a date. I am not sure if they will update us all with a press release on this next week or not but it sure would be nice.
On another good note he seemed very busy with the day to day operations of the company. I think we have a great story here that just needs some time to play out.
Snigierburger, I would certainly expect to see the financials before September. However, I do think that they've grossly underestimated the work involved by the CPA firm and the amount of time required to complete the first time audit of a public company. So, I would really expect to see something April or before.
I have mentioned this in an earlier post but I think it bears repeating. Their stock is locked up for a year. So if their intent was to sell some personal stockholdings and capitalize on their hard work over the last 10 years they're not really motivated to get the stock price moving until their lockup period is over. Combine that with the obvious fact that the're clueless with regard to many aspects of operating a publicly held company and I have come to the conclusion to simply "set my stock on a bookshelf" for awhile and wait.
I am comfortable waiting because I have called and spoken to the company on numerous occasions as well as researching public records to find out as much as I can about their ownership structure and financing.
Would I like to see the company be a little more "shareholder friendly?" LOL - indeed I would. But I think they'll come around when they want to capitalize on their hard work and the stock price isn't cooperating.
Pinky
Jaxs you are correct on all counts. I have talked to the company myself on a couple of occasions. In fact, their honesty and willingness to answer questions are the primary reasons why I am content to patiently wait for developments here.
bd I think they did lay out what their business is in the initial press release
http://finance.yahoo.com/news/DT-Interpreting-Completes-iw-19663441.html?x=0&.v=1
What we don't really know is what their balance sheet looks like. Income statement wise, we can guess at revenues based upon past news articles but we have no idea how profitable they are.
Well, the good news is that each passing day gets us closer and closer to having the controlling shareholders' shares become unrestricted. Perhaps when that day finally comes they will have more of an interest in the value of their company, i.e. the stock price.
You know, the other thing this company needs to do is a reverse stock split I think. Even though it doesn't impact the market cap of the company I don't think they're going to get many serious looks at a 50 cent or 1 dollar stock, even after the financials are out.
There are a lot of things that I don't think the company completely thought through before they went public.
70th, I completely agree with what you said. What I really need to see (along with everyone else) are the financials so I can figure out what this company is worth.
Pinky
Mr Holty, the company is leasing an Avaya IP OFFICE (IP400) system. The system was leased in August 2007 and runs thru August 2012.
BD, I think it's pretty safe to say that the Company is underestimating the work involved and the time it will take to complete an audit. We'll just have to be patient while they learn the ropes of what being a public company means.
On the bright side, since they've obviously never had an audit before, it tells me that they've never needed one before now, which tells me they don't have any debt. This I confirmed with a UCC search for the state of Pennsylvania. Only a couple of equipment leases turned up.
Ask me what kind of phone system they are leasing, LOL.
Elis good find. That explains why we haven't seen any filings and underscores my previous messages about becoming a "real" public company.
Jaxs,
You said "The answer I received was it is basically the operations of the company are at a high level right now and it is still in the plans, just is at a lower priority than other ongoing immediate concerns."
This is exactly my point in a previous post. These guys are a public company but still think they are a private company. Like I said before, when they start following the rules for a public company, wake me up. When they are real then they will have all sorts of due dates and items due to the SEC that they won't be able to put on the back burner. They may have missed SEC items already, but I'm not an expert there. I was wondering how they issued the press release back in September without the accompanying 8-k being filed. Seems like it would have been required since merger information was disseminated. Further, we'll know when they hire an auditor because an 8-k is required for that I believe. See item 4.01(b) in the link below:
"(b)If a new independent accountant has been engaged as either the principal accountant to audit the registrant’s financial statements or as an independent accountant on whom the principal accountant is expected to express reliance in its report regarding a significant subsidiary, the registrant must disclose the information required by Item 304(a)(2) of Regulation S-K (17 CFR 229.304(a)(2))."
http://www.sec.gov/about/forms/form8-k.pdf
There's a link to the SEC website on the Deaf-Talk website so I can only assume they know what they are doing. The link however doesn't go to the company's filings (probably because there aren't any), just a generic SEC link.
Ask them if the calls and emails are a distraction that takes away from their day to day running of the company. I assume that will be a yes. Then ask them why they prefer to have people call and email them when a simple PR outlining their plan for the public company and rough timing of events would allow them to focus more on the business.
Why drive to a destination for a vacation 12 hours from home and listen to the kids continually ask "are we there yet" when you can simply start out by telling them that we expect to be at grandma's at 6pm. We're going to stop for breakfast about 8am then lunch about 12:30. At 3pm or so we should be close to an outlet mall that we will stop at for awhile. That is our loose plan. Now go back to sleep and we'll wake you when we stop for breakfast.
Say, if this company ever goes public, I mean for real not this pretend public stuff we've seen over the last 3 months, would someone send me a Private Message to get my attention?
Thanks and I hope everyone has a good Christmas!
Pinky
I'm perplexed as to why they did a press release on Sept 15th. What exactly was the purpose there?
I hope that when the company does decide to enlighten us with their plans they don't end up raising more questions than we already have.
The70th, for me a press release has nothing to do with the stock reaching a new 52 week high. While the due diligence certainly looks good and I truly believe that this is a REAL company with a REAL business, it would certainly be nice to know what management intends to do with their newly public company. Did they do this RM with the intention of having a public company in place just in case they want to raise money someday for example? Might this company sit dormant on the pink sheets for years? Wouldn't you want to know these things before investing?
So in a nutshell I'd just like to know what the company plans to do. Why did they go public? Do they intend to become listed on a national stock exchange? What is their timeframe for doing this?
That would at least be a nice start. Then of course I'd like to be able to base my investment decision on the company's finances. For all I know they have a nice business but it's losing money. Maybe their finances are so poor that they cannot secure a bank loan or the bank cancelled their line of credit and they need cash. Maybe that's why they went public, to try to tap the capital markets for financing.
Bottom line here is that it's all conjecture on our part until we get some color from the company.
cbone, I seriously doubt that the company would puposely withhold information with the intent on dropping the share price for friends and family. Having said that however, any friends, family, neighbors etc etc etc who do buy based on private conversations or perhaps the old "wink and a nod" would risk scrutiny as insider trading.
"Rule 10b5-1 provides that a person trades on the basis of material nonpublic information if that person is "aware" of the material nonpublic information at the time of the purchase or sale.
Affiliates, insiders, relatives, or other persons in possession of material information should use extreme caution when buying or selling securities on the basis of material information, particularly in securities where the company is not making adequate current information publicly available as a matter of practice."
I found the posting by "smart" to be both informative yet disturbing at the same time. I am a shareholder of this company. I want to see the company make profits. Honestly, I really don't need Dave Staufer fielding endless phone calls answering the same questions over and over. If the company has a plan then the easiest way for them to execute this plan and effectively run the company would simply be to disclose this information to the shareholders. A simple pr like an "open letter to shareholders" outlining the things everyone seems to be wanting to know I think would cut down tremendously on the phone calls and emails to Dave Staufer.
"Hello valued shareholders. We completed our reverse merger on 9/15 without a hitch. We intend to become listed on the xxxx stock exchange. This requires that several items be completed which will take some time. We are working with the law firm of xxxxxx who have assisted several companies to become listed on the xxxxx exchange. Some of the things we need to complete are: 1) blah blah blah which we anticipate will be completed by xxxx, 2010, 2) blah blah blah which we expect to take anywhere from one to three months. We have engaged the firm of xxxxxx to perform this task. 3) whatever this may be. We expect the entire process to be completed in the first quarter of 2011. We will update our valued shareholders as we achieve certain milestones. We thank you for your investment in and support of Deaf-Talk Inc."
I think something simple like that would cut down on the interruptions the company is currently getting and allow them to concentrate on the important stuff.
Just my 2 cents.