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I don’t see failure happening at all. If revenue doesn’t pick up at a pace they require to meet operational expenses, then 1) they’ll simply have to take on more financing, debt or dilution or 2) they seek to be acquired at a price that isn’t the premium they originally sought. IMO the company does well. They will probably need some new financing in the near future while they work to penetrate the market though. As long as they get this in Big Box, increase their marketing and e-commerce exposure, decrease their manufacturing costs and work towards a line of Smart Home products, I believe they will have substantial growth and sustainability. As I said a few months ago, this is a 12-18 month hold.
They should’ve been securing the Big Box deals earlier. They initially put all their eggs in selling the mirror online. It’s definitely a product that you have to see and touch to fully grasp. Big Box is must for entry into the market. Once people see it, online sales will definitely follow.
Anyone curious to why we are not in Big Box yet? The displays should be done. He barely touched it in his conference call. I think they anticipated it to be an easier sell than it’s turning out to be. I’d love a Costco PR soon!
I’m very curious to see what they have in development to expand their Smart Home line.
A lot of it is standard verbiage. The conference call with Wallach will tell us everything! I’m looking forward to it
That took me an hour to go through. It was very honest, but very dooms dayish IMO. Not much of a positive outlook for the future. Hopefully, they are able to secure some conventional funding moving forward. You can tell they are hopeful, but nervous at the same time. We will have to wait and see.
Honestly, I want to believe that too. The CES / Big Box bump happened when CAPC investors were engaged and excited. That’s the exact thing I thing they need to work on building again. The OTC is built 100% on hype and excitement. I wish it were metrics, but it’s not. I’m a CAPC long and will remain that way. I’ve also been doing this 20+ years and if we want to see huge bumps, excitement for the company is pivotal in the OTC. It can make the difference between a 25% bump and a 500% bump.
I wish it would, but with no reason be watching this stock anymore and Big Box announcement will fall on def ears. They need to figure a way to build excitement for the company first and then make the announcement. Doing it now will probably have no affect on the SP. We need new investors…They need to promote the stock.
Are you saying the manipulation is shorting? That’s occurring, but as for any other manipulation I don’t see it or understand why anyone would waste their energy on it. Not enough volume to make any real money from it. That’s not the issue. This issue is simply no volume which is what allowed this stock and its “locked” float to fall 95%. It’s an issue that needs more attention. Capstone is a small company on no one’s radar. Without new eyes on this to generate new investors, the stock is stuck. I know Wallach is against promoting the stock, but something needs to be done.
I love that they are hitting the Asian markets. I’d like to see them hit the UAE countries as well, but this is huge!
Question becomes…what specifically is the company doing to increase sales and break into the market space? CES is in the past, Amazon and Wayfair have horrible SEO and no big box has been locked down yet. I’m sure big big will materialize, but they need more. I’m all for social media influencers, but Carlos Boozer?! You need women who are in their prime. You also need the social media posts to be longer than 15 seconds. The influencers should be demonstrating several uses, not just glossing over them in a blink of an eye. I am very hopeful…I just think without much experience in social media and the smart home sector, we will see some stumbling out of the gate before we finally get into a dead sprint!
I don’t know if there is a lot of manipulation right now. I think the spiral went like this 1) the typical sell off on news of certification 2) LittleBanc selling their shares from financing 3) this was compounded by more selling from investors looking for their 2021 tax loss to protect other profits 4) these triggered stop loss sales and 5) which ended with panic selling. In all reality it was the perfect storm. Now we just need to get new buyers to come in and hope longs actually hold strong until $3-$5 per share.
What price is your target price?
With the price at a 25 cents, where do you guys see it at the end of 2022? You swore $5-$10 just months ago and you swore there would be a short squeeze as the float was locked up and shorts were trapped. Please explain your thoughts. I’m not belittling you, I truly would like to hear your take. LittleBanc still owns shares and people who came in at a sub-dollar price can easily flip on the way up slowing down any gains. Trust me I want to see $5+ dollars, but no one has been able to deliver a roadmap to how this happens. What needs to happen? If it’s simply sales, what ballpark are you thinking? Full disclosure: I’m holding for a minimum of 1-2 years because I believe in management and the product.
The margins are the gross profit the retailer received for selling the product. When Capstone sells straight to consumer they can charge less and/or take a higher percentage of profit because they cutout the retailer. If a retailer is to let your product in a store, they usually demand a minimum margin so they can make profit from selling your product. If they were to sell it for the same price as Capstone does online, Capstone would make no money cause their profits would go to the retailer. That is why they need to increase the margins so they both profit.
That was the only reason they didn’t try to go to Big Box initially…margins are too high. That’s not an issue with cheaper lighting equipment, but when you get into this price point it has a bigger impact on price.
The stock needs 2 things 1) consistent high daily volume and 2) respectable sales. If if gets those the squeeze will be fast, but the question becomes how do we get those? Sales will take a while as it’s a new product and sales do not necessarily translate to volume in the OTC. The need to find a way to build excitement with a new investor base to truly increase volume. One tweet a day by a long won’t generate the hype. Hopefully, nice they get in big box it will begin to generate some interest. The only issue there becomes price. To get the margins big box demands, the price will have to significantly increase in a time we are seeing record high inflation. Let’s hope they move manufacturing to Mexico sooner than we think. It comes down to patience.
2 questions that no one wants to touch, so let’s discuss: 1) How does the company generate substantial trading volume? 2) What do they need to do (in your opinion) to get the share price back above $3? They seem to be trying
So I still think LittleBanc has shares as they were issued at .60. What type of revenues does everyone think we need to see by the end of the 1st year to be back over $3?
For clarification, what is different now than from when we thought this would happen at the $2-$3 range?
Anyone have a link to a recording of the webinar?
I love what the company did getting that social media influencer. I just wish it wasn’t released on a Friday be for a 3 day weekend. Still a move in the right direction. Hopefully, it gives a boost to sales
Anyone know who is selling? Its not LittleBanc
I think Lululemon saw it’s peak with their mirror during Covid like Peloton. I would like to see the Smart Mirror marketed to a larger audience outside of, but also including fitness. I think it has the potential to be in way more households that way. Imagine the possibilities: it can be used to show advertisements in restrooms and lobbies; it can be used for daily traffic, weather and news in homes; hairdressers can use them so clients can watch shows as their hair gets cut; it can be used as a fitness tool; it’s compatibility with Alexa is a huge benefit; and it can be used as a sales tool to show tutorials for companies. The possibilities are countless. It just takes a while to gain traction especially with the cost of marketing.
It doesn’t fit their business model. They purchased a subscription service with paying members in the fitness industry. The Smart Mirror has a much broader market and it would be a much better play to be picked up by a tech company.
I’m not sure. I hope they go all in. This is their flagship product and it’s a new technology, even though the smart home devices are well established. I think it would be best to get it out there every which way they can. They should concentrate on several forms of marketing as the demographics this product is targeted for is huge and spread worldwide. From my knowledge, they are establishing a nice game plan!
It’s all coming down to how they finance their marketing campaign. Hopefully, the financing is favorable to both the company and the financier. If they make more deals like LittleBanc with dilution and short timelines on share restrictions, it could hurt the company. Let’s really hope they acquire financing from investors with a vested interest in the company’s big picture!
The company is very aware that sales don’t happen over night, especially with a new product. Their current attention is 100% dedicated to both marketing the product and educating the public on its abilities and usefulness. Let’s see how this plan comes together over the next several months. Give them time to develop and execute it. This is the type of product that crawls and then goes to a dead sprint overnight. That’s expected with new technologies in the smart home connective surfaces field. This is a hold stock. It’s not a short flip and burn. Be patient.
Unfortunately, oversold means nothing. This stock does not follow charts or technical analysis….never has. The only thing it needs is momentum and excitement which requires a catalyst and news to piggyback off that catalyst. Instead, the company is MIA. Some insider buys followed by substantial sales figures would be the spark we need. The fact the Smart Mirror has no social influencers as brand ambassadors astounds me!!!! It would be an easy, low cost marketing blitz that potentially reaches millions of potential buyers. Additionally, the Smart Mirror should be donated for use on every HGTV and other tv home improvement shows. So many low cost, effective ways to market this product. Many products do that! All these tech blogs that are publishing articles on the mirror will do nothing to generate sales
The proof that Sarna purposely avoided going current to assist his plan to make the company private is this…the company was making $370,000 in monthly revenue or $4 million annually. The audit to make them current would’ve only cost $225,000. Everything was calculated and done on purpose. Sarna needs to be sued and place in prison! Call Mark Sarna and ask him
(201) 681-8639
(201) 816-1200
I have spoken to Sarna in the last. He purposely sabotaged PZOO so he could take full ownership and make it a private company. He did not want the company to be public so he could maintain all profits to himself. He purposely held funding for the company and it’s filings, blocked potential acquisitions and partnerships that would’ve led to a flourishing company, and even refused additional angel investors. He needs to be sued as he did not act in the best interest of his investors which was the company’s fiduciary duty.
I agree with you on transparency! Still, the product has only had approval for several weeks. We have to give them time to make sales. I just wish we knew what they were doing. A simple tweet here and there will suffice. An investor conference call without substantial news could backfire and lower the stock more. Just give us some tweets, Brotha!
I strongly believe in this product, but the last few months took its toll on many. O can’t blame them. There is a Twitter group that I believe has members that manipulate the stock a bit. Either way, I wish there was more communication with investors. In all honesty, I do see every bathroom mirror having this technology one day…question is how long till we get there? Smart home technology has taken over. Ponder this…10 years ago none of us had smart tv’s, ring doorbells, Alexis, smart thermostats and bluetooth home speakers. The Smart Mirrors day s coming!
Peloton is not the same company: 1) Their mirror is one dimensional and only displays their content 2) Users must pay for a subscription 3) the mirror is not designed for normal bathroom or living spaces 4) their mirror cannot mirror your smart phone or tablet and 5) their sales are limited to the fitness industry. Hence they are seeing a large decline in sales post Covid lockdown as gyms have reopened. Whereas the Smart Mirror can be applied to any setting, no subscription, content is unlimited and can be used literally across all industries. The potential is extremely high. Unfortunately, people link it to Peloton and my belief is this is a partial reason the share price is falling. In all reality, Peloton is not Capstone’s competitor!
Damn! Where is all this dumping coming from? It’s below LittleBanc’s price point and it’s not tax loss selling. This is simply retailers selling. I wish Wallach wouldn’t go dark like he has.
I think Capstone can definitely pull it off, but I’d really like to see them put emphasis on international sales where luxury real estate development trumps American and because consumer tech at the retail level is more prosperous in places like the EU and Asia. Wallach may be doing that, but I don’t know. We really don’t know a thing about their sales plan moving forward. He definitely has the connections for big box retail, but then they’d have to increase the price to meet the margins required by the Costco’s of the world. I wouldn’t use Amazon sales as our barometer either. Those individual retail sales will end up being a small piece of the pie in the early stages. Pelaton is a great product, but it’s absolutely one dimensional. Not a great comparison, but in reality we have nothing else to compare it to so it has become our go to. I think they really need to focus on hitting every consumer electronics expo they can domestically and internationally. CES was limited from Covid. These expos are the ticket to creating buzz and sales! They need to hit the road hard!
Pelaton is just correcting after its phenomenal year from the Covid lockdown. They actually sold way more than expected.
Question #1: Why did volume tank after certification was achieved?
Question #2: How do we get it back?
Question #3: When is Capstone going to do something about it?
I strongly hope Capstone is focusing on huge contracts and are not relying on retail sales through Amazon and their website. They need to focus sales towards large development companies, especially international. Focusing on booming economies that have money and large developments, like Dubai, would be smart. This is an item that needs to 1) gain attention and 2) gain traction. Hotels are pivotal towards this. Visitors get a free demo of the mirror in their room and then they purchase it personally. This way the company starts with huge contracts, the mirror gains attention from vacationers and then traction as these vacationers buy the mirror and share it with friends and family.
The savings is appropriated for the cost of shipping. So as sales pick up, the cost will be offset on the balance sheet from the difference. No, not Aimee. I actually spoke to Wallach weeks ago.