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The litigation team has now been engaged. I understand RedHawk is filing the 8K announcement this week and I understand the targets now extend beyond the clear pseudonym players. Looks like more than 4th of July fireworks coming soon
Don't know numbers but it sounds like the Texas School Nurses Conference and New Orleans Pharmacy Conferences went VERY WELL
Klug is definitely leaning towards the leasing model for the Pro. Staying with sales model for the mini
The team is apparently heading to Washington DC next week for presentations - interesting. Very tight lipped on who they are meeting with....
I was at the office today - very active
June 1 "in person" conventions started again - been shut down for past 2 years
School nurse convention last week in West Texas they say went very well
New school budgets start July 1, some Aug 1
Next week they are heading to New Orleans for a big Medical Convention
Hospitals lost $200 billion in 2020
Another $50 - $100 billion in 2021
Hospital focus is probably the previously announced leasing model
Leasing model will take a lot of Capex to build rental fleet
Team is very familiar with leasing model - model used by the oilfield
Pharmacies are flush with cash from vaccinations - look for sale model there
Klug is very excited about results from new sales team and SANDD Pro in-field performance
Samples of new RedHawk private label examination gloves ship from Malaysia tomorrow
They push through price increase on SANDD without any market pushback - top SANDD mini now about $295; SANDD Pro now $1,250 and almost $2,000 with training and extended warranties
So, you want Klug to write "divy" checks for approx $5.6 million for no reason other than to reward "loyal" shareholders? Wishful thinking but if he was simply going to write $5.6 million of checks (which I doubt he is going to do) for something other than continuing to build the Company, perhaps that money may be better spent buying back shares. Just my opinion.
Cow, there is no "If." Klug has made it clear in a previous 8K, those that outright lie, including those that help those that lie, in order to adversely influence the stock price for personal gain, they're coming to a Louisiana courtroom to answer allegations of securities fraud
Based on today's 8K, its clear he is focused on bigger crawfish right now
Accounting 101 = Revenues are recorded in the period in which they are earned
Recurring revenues will be well above $0 (IMO).
Klug speaks very highly of the Texas-based distributor and their connections with major heathcare providers. And the new products offered (especially vacuum tubes) and examination gloves are in tremendous demand, strong backlogs and should remain in demand for a long time.
Now, I asked about the softening in demand for the COVID-19 home test but he remains upbeat about a new, simple pediatric test that is perfect for schools. Currently it is CE marked and hoping to get FDA authorization shortly. He is convinced COVID is here to stay and we simply need to learn how to live with it.
We don't have enough information (IMO) at this point to determine a fair valuation. Company valuations are a very simple - sometimes a multiple of revenues but generally a industry multiple of recurring EBITDA.
So, let's say a Company's EBITDA is $1,000 and comparable industry companies are trading at 10 times trailing EBITDA (forward EBITDA's are generally discounted a bit), that places the Enterprise Value of the Company at $10,000. From the EV you subtract the amount of the Company's long-term (including preferred stock) and that gives you the Market Cap of the Company.
In this example, let's say the Company has $1,500 of long-term debt and preferred stock, then the MC of the Company is $8,500. From there you simply divide the MC by the number of outstanding shares and there is your theoretical trading price per share.
Klug was very specific in that he didn't yet know the amount of recurring revenues in the $950+ mil because of the product mix. Again, I think this next 8K may shed some light on Klug's expectations on forward recurring revenues.
Let's make sure we are comparing apples to apples when we talk about FYE 2020 revenues. Only about 6 months of that year was from recurring SANDD revenues. The last quarter of FYE 2020 was from PPE during the lockdown. RedHawk doesn't even offer some of those PPE products any more. This next 8K will tell us a lot about the future direction of the company.
Klug won't order a RS until he is comfortable with a correct valuation. That's what Investment Bankers and Market Makers are for.......If he can't get satisfied with a proper valuation with a single uplist, he won't do it......
The issue with going to Pinks and then an uplist is time and $$$........you're dealing with regulators and they operate at their own speed.........and the hourly rates for SEC counsel and investment bankers are not cheap......
Klug wants out of the OTC Pink - "if any" simple means if he can leverage his current financials to complete an one step uplist immediately, that's what he wants to do rather than a two stage process of going back to the PINK and then going through the uplist process from the PINK
I called the office and spoke with Klug. He confirmed the revenue number and emphasized the $950 mill number is revenues under contract. Company legal would not allow him to project additional revenues not yet under contract even if they are highly probable. He also said some of the FYE 2022 revenues may be non-recurring revenues as they involved some of the Company's new product lines and currently, it is not clear how much, if any, will be non-recurring.
He also said another 8K will be issued soon and it will talk about SANDD discussions currently in process.
On trading, he said he wants to get these few 8K's into the marketplace, determine future recurring vs. non-recurring revenues and then sit down and discuss with his legal and investment bankers current market listing options, if any.
The Board Members are listed on the Company's "Verified Profile" shown in OTC Markets
Klug and his team have been traveling lately. Things are opening again so it sounds like they may be making needle presentations. Top investors and some board members are in and out of the office. Something is going on but honestly not sure what it is. Everybody is tight lipped again. I did hear they are working on another 8K.
Sorry for the venting - beautiful day here but had appointments so I could not play golf today
I should not have said "no one reads" the financial statements and footnotes.
Better said would have been "few read" the financial statements and footnotes
Not sure everyone understands the impact the last 24 pandemic months had on RedHawk.
Literally in one 24 hour period this Company's customer base for its SANDD mini (i.e. School Nurses and Law Enforcement) disappeared. Fortunately because of the sales incompetence of Schreiber, RedHawk was left with an inventory on non-contact thermometers remaining from the 2014 Ebola outbreak. Additionally, the Company's primary oversea's supplier of the SANDD mini is an FDA approved thermometer company. So, over a weekend, RedHawk pivoted from a rapidly growing needle incineration business into the world of PPE which at the time being underwritten financially by the US Government.
Fast forward to the beginning of 2021. Schools were flush with cash but no one understood the $$$ needed to reopen safely. So, school spending was halted. The hospital industry lost over $200 billion in 2020 and $100 billion in 2021 primarily due to pandemic shutdowns with of elective surgeries. Law Enforcement budgets were being de-funded.
But everyone wants financial statements - WHY? Most of the people on this board don't know how to read them or asks questions about them. They certainly don't read or understand the footnotes. Klug lays out the strategic plans in the footnotes and in the 8Ks. Instead of investing $$ to build a business, everyone wants RedHawk to spend $150,000 to $200,000 a year to publish financial statements that no one reads or asks questions about them.
Now, for the business model (and this is just IMO).
First, rid the Company of past scum investors and lenders.
1. In the 8K re the new distributor, future emphasis is on international health care - the US healthcare system is broke. And when Biden shuts down COVID funding, more domestic healthcare $$ problems are coming. Why are there so many COVID related ventilation and death, its because the government pays the medical profession additional $$$ for COVID related treatments and deaths
2. In the 8K - future focus is on leasing SANDD product, not selling product domestically, because hospitals don't have the $$$ to buy. Oilfield philosophy, don't buy it if you can lease it. Also, only the USA considers SANDD a medical device. The rest of the world correctly considers it a waste disposal device - so much fewer regulations
3. Adding products, don't be a one-trick pony. We are going to need to live with COVID - i.e. home testing and blood testing. Waiting period for manufactured blood tubes in now 6 months.
4. Don't be surprised if more products are announced, manufacturing is moved offshore to reduce cost and have better access to labor
5. Building a lease fleet will take major $$$ so don't be surprised if RedHawk establishes collaborations with major healthcare players
Klug has told me several times - there are only 2 days the stock price matters, the day you BUY and the day you SELL. The days in between those 2 days are just wallpaper.
READ THE 8Ks and ask if you don't understand
Definitely by the number of posts.....
Just facts, please
If you have a question and don't want to call the company, just ask and I will try to get an answer - but no promises.
And its golf season so the response time might take a bit longer
As I said before, Klug and the team have been very tight lipped and only releasing info via 8Ks. If you need an explanation on the 8K after it is released, just ask and I will share with you what I think the impact will be on the future financial statements.
I wouldn't focus too much on old financial statements as with the move to the Expert Market, to me Klug has sent the message he is not coming out with financial statements until he has finished "taking names" and has the balance sheet about where he wants it.
And here I thought you being an IH Premium Member allowed you unlimited posts, Fish
Do you have a posting quota or is it by the post?
Hmmmmm......Interesting posting history, Fish
Thanks for the PM, Bull. Rest assured, IH does not blanket immunity, especially in Louisiana, if litigation counsel finds they also dirty hands by wearing a blindfold
The Hawaii property is not currently listed for sale to my knowledge. The value of all commercial Hawaii hospitality properties were depressed because of the pandemic and are trying to return to pre-pandemic valuation levels. I doubt Klug would sell this investment at this time
Klug has an investment in a second Hawaii property on the island of Kauai but I am not sure of his plans with that property. He took a few of his golfing buddies from the club there a few years back before renovations started and I understand that the finished property is spectacular
Like Jane and John Doe, at some time in the future, someone will need to explain their actions.
Why were some people were banned for challenging falsehoods while others were allowed to knowingly and deliberately spread unchallenged falsehoods. Even becoming a moderator.
Woe to anyone who posted these falsehoods while trading in RedHawk stock or assisted others trading in RedHawk stock.
As I posted earlier. Klug is not finished "taking names"
They also predicted but never proved outstanding shares would increase to 3 billion
They also predicted but never proved bankruptcy
They also predicted but never proved multiple lawsuits
They also predicted but never proved horrible "Pinsky" dilution
They also predicted but never proved coming 3a10 loans
They also claimed but never proved "interest free insider loans with 25% warrants"
They also claimed but never proved the Company was selling stock everyday
John and Jane Doe's day is coming soon and they will have the opportunity to "prove" all of their statements and claims. One has already sent Klug a Mea Culpa message but I doubt that will help him/her
I understand Klug has identified and is about to name the pseudonym litigation counsel.
People's memory should be complete and not selective. It also should be longer than their manhood
Not sure, Klug has been very tight lipped and very focused on business at hand, but I don't believe he is finished "taking names"
Not exactly. The 2020 Fixed Rate Notes were used to pay Variable Rate (toxic) Notes.
So, "assuming" Klug is not going to sue Dr. Drew for his COVID debacle and "assuming" Drew has 'earned' the shares, as you say, Drew would be the owner of about 140 million shares of an Expert Market stock that doesn't trade, is worth only about $25,000 and his only other liquidity outlet is a deal with someone's Boys and Girls who talked with Drew.
Hmmmm, I wonder if that's the tortious interference mentioned in the John and Jane Doe 8K filed a while back.
Schreiber was settled a month ago
The only one riding a "roller coaster" are people that don't understand Finance 101 - "You fall in love with the numbers, not the assets"
Signals of rising interest rates (especially on real estate) have been in the market for a year or so. People should focus more on market conditions and less on bs message boards where everyone has an agenda
Klug doesn't get onto roller coasters, he simply plays the cards he is dealt and then moves forward. Clearly he is focused on reducing debt and stopping dilution while building this company.
Its not about liquidating assets. Its about maximizing investment return, reducing debt and deployment of capital into more profitable business sectors. People really should read the 8Ks and then call the Company if you don't understand what the Company is saying to you.
There is a lot of activity in the office. Reading today's 8K, clearly some of the activity related to last week's real estate closing. RedHawk announced a while back that it would be exiting its real estate investments. Market is very good in Lafayette so the timing makes sense to take some $$ off of the table.
Klug is focused on eliminating possible dilution so I would expect targeting Ramson would be the next thing we hear about.
There was a lot of activity in the office and no one was "hanging" their heads, but as soon as someone from outside the office comes in, everyone shuts up - Klug has his team trained very well re public vs non-public information
Facebook and Instagram
I checked with Klug (in fact I was at the office today) and to the best of his and his team's knowledge, no one has sent the Company an email to which the Company has not responded UNLESS the requested information was not available to the public.
Regarding Twitter posting, they don't see this site being very productive so they have focused their time on other social media sites
The public generally likes and trusts Dr. Drew.
Drew's peers in the medical community, not so much.
Marketing of the SANDD Mini focuses on the general public. Marketing of the SANDD Pro is focused mostly to the medical community and not so much the general public.
So, it will be interesting to see how RedHawk and their Distributor unfolds their marketing strategy for the SANDD mini and the SANDD Pro.
If I recall correctly, an earlier press release said they were initially focused on international targets.
I would expect there will be a settlement with Dr. Drew in time but I wouldn't expect it to be in the form of shares. Klug likes Dr. Drew and has a great deal of respect for Dr. Drew.
Dr. Drew took a lot of criticism in the medical community in the early stages of the pandemic when he stated the COVID-19 media coverage was overblown because the virus wasn't much more serious than the flu.
My understanding is that the settlement terms are already agreed upon and the parties are waiting on the attorneys to finish the paperwork.
Over the next few weeks. He said on legal matters, he's focused on finishing with Ramson right now
The address is coming soon enough. Klug has now decided on the John and Jane Doe litigation counsel
Ramson admitted his partner's securities license had been previously suspended by FINRA but had never disclosed it to the Company
In the negotiations, Ramson admitted he was working with Schreiber
That's when Klug pulled the gloves off and Klug went for the jugular - conversion rights are going away or licenses are coming off of the wall
They were supposed to provide Investor Relations Support but never did...except collect fees and stock awards
They loaned the Company about $600,000 to payoff certain variable interest debt. After funding, they were supposed to schedule road show presentations for the Company, but never did.....
In fact, without notice, they defaulted on one funding commitment which resulted in variable interest conversions....
Klug doesn't want any more lawsuits but he does want the score evened for the shareholders