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Yeah Mike
Where was the need to hurry up with the RS news. They should have at least let the market soak in the good news about the MDA Phase II award.
You can bank on our media and marketing folks to screw up things. Look at the pps and the volume today.
Hey Yip,
Good to see you posting and back in action. Hope you have settled down by now with internet access and all.
I guess in the current world internet access has become more critical than all other needs.
Next in line would be DNA Marking I guess. LOL.
The GE deal has nothing to do with FCEL. They talk of having their own technology. The FCEL news is about a grant that they received from Germany.
Read the news Sam. GE is getting into Fuel Cells. News on their page and elsewhere.
Why has the volume dried up all of a sudden.
Normally with the MDA Phase II award news, this thing should have been flying but the news about the Reverse Split has investors confused.
It has taken the momentum out of the stock. There is better volume but a decrease in the pps. They could have announced the RS after the quarterly results. Allowed the pps to rise a bit on the MDA news. That way they could have managed with a lower ratio.
Wonder whether all this is intentional and the management a part of it?
By the way I liked how you spelt board as bored at one place.
I hope it was not an intended pun when compared to the slam bang action on Yahoo.
LOL.
I completely agree with you. Out there folks are just getting at each other's throats.
We have more constructive posters out here. We may have differing opinions but there is degree of decency out here.
Hope it stays this way.
Mike,
My explanation - May or may not be right.
Any company will have an Authorized Share Capital and an Outstanding Share Capital. In the case of APDN, their Authorized Share Capital is currently about 1.35 billion and their Outstanding Shares ( shares which have been issued ) are approximately 800+ million.
The Authorized Shares gives the company the liberty to issue additional shares if required.
With a RS of 1:40, the Outstanding Shares will reduce to about 20+ million and correspondingly APDN intends to reduce the Authorized share capital to 500 million.
No two opinions about that Pasta.
APDN in particular has traded awfully on the OTC board.
Also, one thing is pretty certain that the RS is being thought of with the intention of improving their ability to get funds and possibly rope in some larger funds.
Hence like it or not there will be some dilution post a RS.
Their burn rate is pretty high. Right now they are losing about $5 mill per quarter after removing the non-cash loss.
Hence I would guess that in order to sustain their operations, they would need at least 10-15 mill per year, assuming some revenue growth and control over expenses.
Given their precarious financial situation, they would like to secure themselves for at least 2 years instead of looking for funds quarter on quarter.
Getting up listed allows them to do that with a lower number of shares though it will be interesting to see who would be willing to pay the, 4.8 per share. Maybe some big fund will agree, based on the future potential that they see.
Either way it is not as straightforward as it appears. There are the advantages and the risks associated with this RS. My main concern being, do they have the revenues to sustain a $4.8 pps for long. Current revenue growth compared to expense growth has been pathetic
The rate at which the pps is falling, we will need 1: 100 to up list
They should have waited for the quarterly results to be announced and then declared their RS intentions.
Yes Mike
Just saw that mail. Thanks for copying me on it. Hope Karol replies.
Let's hope for the best.
Why not start sending in mails to Debbie, expressing our concerns.
Why not wait for the pps to rise a bit and then go in for a RS. Do it after the quarterly results. Are they confident of showing a better quarter this time.
What if the results are bad and the pps falls further?. Then even 1:40/60 may not help.
The ratio of 1:40 or 1:60 is being based on the current share price of .12+
What if this price goes up in the coming month to say .2. Will they still use the same ratios to get listed?
In other words, are they not expecting any price rise till the RS happens. Sounds crappy to me.
In fact even the deal with Pillar looked good. I just feel that Pillar could be a potential candidate for acquisition of APDN.
You have a point Pasta.
I get a feeling that something is compelling them to consider this. Either a demand from some potential high profile investor or some positive news that APDN is aware off or expecting in the next few months.
I am looking at this positively from an up listing point of view. Will get us the attention that we need from the bigger players. My only concern is are we ready for a Nasdaq listing.
Mike.
One of the things we need to worry about is whether APDN can sustain a price of over $5 for long, to remain listed on Nasdaq.
It may be easy to reverse split and get there but will they have the financials to keep the price above the required norms and meet all other conditions.
What is going to change all of a sudden is what we need to ask. The quarterly results over the last few quarters have shown marginal revenue growth but awful control over expenses. Can they generate a positive bottom line?
Investors on Nasdaq will not tolerate poor performance and it will be terrible if we start drifting lower below $5.
Had this happened after a few quarters of sustained high revenues and lower expenses, it would have been more acceptable.
Having said this, do we common investors have any control over the situation? How much will our vote count? Will someone like Crede object?
Reasons for the split.
Although the good Dr was against a reverse split, some big time investors could have forced this upon him.
Large investors maybe impressed with the technology but would not be interested in investing or financing a penny stock. So they could have laid a condition to get up listed in return for money.
Given their precarious financial situation, I guess the Dr would have had no choice.
Either way I hope it works for all of us.
Hi Mike,
You have summed it up well.
The RS removes the possibility of a 10 or 100 bagger but it helps us get out of this neighborhood onto Nasdaq or NYSE. Further, $5 going to $50 is still a possibility if the market eventually sees this as a path breaking technology solution.
Cheers. You might still be able to pay for the cruise.
Hi WT,
Further to the response you got from Debbie, which I had also received, I had asked her to clarify the confusion in the ratios.
Here is her reply.
Quote
There are two distinct proposals. The reverse split of between 1:40 and 1:60 and the reduction in authorized shared from 1.35 billion to 500 million.
The reverse split is being proposed to increase the per share price of our common stock to meet the listing requirements of either the NASDAQ Capital Market (“NASDAQ”) or the NYSE MKT (“NYSE MKT”).
NASDAQ requires a minimum bid price of $4.00 or a minimum closing price of $2.00 or $3.00 per share (depending upon the applicable listing standard) in connection with the initial listing application while the NYSE MKT requires a minimum price of $2.00 or $3.00 per share in connection with the initial listing application.
With respect to the decrease in authorized shares, the language below is taken from the proxy statement as well.
We are currently authorized to issue 1,350,000,000 shares of common stock. Although the proposed reverse stock split described in this Proposal No. 2 will not affect the rights of stockholders or any stockholders’ proportionate equity interest in the Company (except to the extent of a cash-out or rounding up of fractional share interests as further described below), the number of authorized shares of common stock will not be reduced proportionately to the ratio in the reverse stock split. Accordingly, if the Board of Directors implements the reverse stock split, there will be a significant number of authorized but unissued shares of our common stock available as compared to the number of shares of common stock then issued and outstanding. For example, if a 1-for-50 reverse stock split is implemented, we would have approximately 16,548,446 shares of common stock issued and outstanding (based on the number of shares issued and outstanding on July 11, 2014, the record date), with 1,333,451,554 shares of common stock available for issuance. Because the Board is mindful about the potential dilutive effect on existing stockholders, and because the approved and recommended range of exchange ratios would result in more shares becoming available than the Board believes are necessary for reasonably foreseeable future needs, the Board of Directors has also approved and recommended an amendment to our certificate of incorporation to decrease, subject to stockholder approval and implementation of the reverse stock split, the authorized number of shares of our common stock from 1,350,000,000 to 500,000,000. Our Board of Directors believes this number of authorized shares of common stock will provide the Company sufficient shares of authorized capital available to be issued for any proper corporate purpose without further stockholder action.
I hope that this helps.
Unquote.
In short, the 1:40 or 1:60 ratio is for the outstanding share capital and the authorized share capital is being reduced in relation to the revised outstanding shares.
Yes that's amazing. Has been months or more than a year since we saw this kind of volume in the first half hour.
Hope something is cooking.
Kbar44,
Will react in two ways.
On one hand there are many on this board including myself who have held this share for more than 6-8 years. That is a reasonable period to expect some handsome returns. Not exactly the get-rich-quick types. With RS, our share count will come down significantly and the hopes of a multi-bagger will be thin. That is the whole point in investing in a penny stock.
On the other hand I agree that a share price above 5 dollars could get us more attention from Institutional investors as that is generally their thumb rule. Also a possible listing on Nasdaq.
Either way there must have been some reasons compelling APDN to think of a reverse split.
Count me in Guys. I will provide the company.
A Strong Buy recommendation from an Analyst, Phase II award from MDA, coverage on TV in Sweeden all in the past 2 days.
Any other penny stock would have shot thru the roof by now and here we are going down over the past two days.
God knows what more does APDN need to do. Is this being held down for a reason??
I hope that analyst is not one of us.
Forever hopeful. High time we see some jump in the pps.
Cheers!
A1- isn't it just amazing that APDN after such good news shows no movement in its pps.
Have seen lousier penny stocks move up and down by 10 to 15 % on just some crappy news.
Beats me. Who is holding down this stock. Why is there no volume all of a sudden. Where are those 10/20 million days.
Hey Yip,
Good to hear from you. Oh yes, Now that you mention, I forgot that you were relocating. Good to know that you are settling down.
Look forward to your getting active on the board. Till then, enjoy the new settings and locale.
Great news for all of us.
Good point WT.
Wonder why this was not released earlier if the dam deal was announced in March. God knows what games are being played. Someone could in fact shoot out a question to Debbie.
About the field scanner, I am sure they will figure out a way soon because Phase III would mean a lot more in terms of funding and commercialization. There is a lot at stake for APDN.
But this whole delay in announcing this news has me wondering why???
Yep that's true.
Of all the days where is Yip. Not seen his post for a while now.
WT are you aware?
122K per quarter to be precise A1.
But more than the revenue it is the endorsement by the MDA that really matters Mike. Also means that DOD has not given up on DNA Marking. Mandate expansion by the DLA should also follow.
I hope this time the pps rises to the mountains of Switzerland like someone just posted.
High time.
Unbelievable. Can you give any logical explanation for the pps performance after this news.
How much are we going to get manipulated by these MMs. Why can't they let this fly.
Hi A1,
At long last. Hope this news at least triggers a nice rise in the pps.
Hope the DLA mandate expansion follows soon.
Cheers!!!
Thank you for a great post early morning.
This was something that we were all eagerly awaiting. Next in line should be the DLA expansion of the mandate.
Cheers and Good Luck to all.
Congratulations A1 on your new arrival.
I am pretty sure that your younger son will bring us a lot of luck.
Cheers and a Happy 4th of July to all.
Agree with your assessment JLH2.
The DLA mandate serves more like a validation of our technology. The recent private partnerships auger well for us but my concern is the time that it is taking for the revenues to build up.
We have a number of great partnerships but I have not seen a commensurate increase in APDN revenues. Hope we begin to see that sooner.
Another quarter is over and I don't expect some fascinating results. APDN will for sure come up with reasons but it is high tine we see a spectacular quarter.
I have always had this feeling that APDN's partners gain more out of the partnerships than APDN themselves.
Probably APDN under sells itself.
Yeah WT,
The post regarding UL seems very interesting. If APDN can tie up with UL, that can be huge.
Also, the whole Defence business seems to have lost steam.
APDN is also now publicizing more of its private partnerships. No talk about the DLA or the MDA Phase II or the DFARS