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There are two ways to look at dilution at this point. One, it means that we have not yet reached the 200 million cap, which in turn means that there is more value here then originally assessed. The second way to look at it is that if Dennis has sold a few million shares over the past few days then he go about $0.004 or $0.005 per share. Today he can buy them back for about $0.003 per share. Probably after taxes and fees though this wouldn't be much profit.
Could also be daytraders or flippers that thought they would pick up a few extra shares on Friday that are dumping their shares since they didn't get the pop they were looking for. I'd even bet that some of the people on this board who previously said that this one will run as soon as we get news are giving away shares to get some money out. Personally I am not one of them YET. I'm going to give them six months to complete the Ambrose project and show us what they can do with the new furniture line and tv shows. But then again I am willing to lose it all to ride out the storm, just for the chance of this one to run.
I don't carwhat anyone says, you CAN short a pennystock. Is that what is going on here, who knows. Could be an increase in shorts that anticipate that Dennis is on the verge or is now diluting the market. Could be Dennis raised $30,000 today by selling 10 million shares to anyone with an open purchase order. Could be a few longs with over a million shares are just fed up with waiting this one out and dumped their shares at whatever they can get. They walked the price down a bit so whatever is going on the MM are trying to entice more buyers to enter. That points towards dilution or someone who put in a market sale AON order that the MM want to fill. You are correct that Dennis would be crazy to sell at these levels, but a guy like him doesn't appear to care too much for share price at this point in the game. He probably needed X ammount of dollars to pay bills and said to seel whatever it takes to raise that amount. The dilution idea could be supported by the fact that two PR's were released in the last few days. Company pumps the stock to raise some funds. Either way you peal this banana I still see value. Even with all 200 million shares on the market this one is worth over $0.005. With one project coming to a close Dennis needed to raise fund to start a few more projects so the likelihood that he is selling shares is high.
matt, The trading range has not really been $0.003-$0.006. It appears more like the ask (price we would have to pay) was around $0.006, while the bid (price we would have to sell at) was around $0.003. Seems like the MM are getting rich on this one. We have had a few situations where the spread closed or came close to it. By each of us posting when we get fill orders eitehr buy or sell (to each his own) we can better determine what this thing is actually trading at.
I'm not denying that dilution could be occurring, but I would hope that Dennis at least set a minimum (say $0.005) to sell at.
Question 1. Does a pinkie have to announce when they change the number of authorized shares? I think this is something that needs to be approved by shareholders, but when the CEO controls so many shares one would think that he might have the power to do that himself.
Question 2. If a company implements a RSS does that also split the number of authorized shares? This is not a way to dilute the heck out of a stock wihtout shareholder approval is it?
I highly doubt that many people actually bought on the IEEE award anyways and I don't think we experienced much of a price movement on that event. So this whole IEEE award is really a non-issue to most of us. I don't know for sure if this some type of scam or what, so I choose not to comment on what I don't know. A previous post accurately mentioned the two possible explanations to the situation and that is where we stand on that. The thing is that there are alot of people crying wolf about things that just cannot seem to be proven and then when some of them are refuted with facts they just create another "wolf" out of a piece of a PR or a rumor. I still feel the potential outweighs the risk on this one so I am staying, but thanks to the bashers for trying to save the world from risky investments (also referred to as scams).
Tried to search for all listings today and the results came up in less then 20 seconds. That is definitely an improvement over the same 3-5 minutes that it used to take over the same network. With dialup this might take twice as long, but still less then a minute is good to present 565,500 ads.
The value here is the growth potential and the chance that we may someday compete side by side with the likes of eBay, Autotrader.com, Expedia.com, etc...
I'm sure it took all of these companies more then just a few months to build the operations that we see today. Does anyone know the average time it took a "successful" dotcom to stand up operations that run smoothly? I'd also be interested in the average time it take for a dotcom to determine that they are "unsuccessful". TIA.
"no money coming in at all."
This seems to be refuted by the initial payment from ProSec which will be used to start production on the big order from awhile back. To me this all makes good business sense for a small startup like HISC. Why should they go deep into debt and take on that much more risk just to manufacture a large enough quantity of TRACKERS to meet the demand. We are only on like version 3 of the product. This initial influx of money will produce a small quantity of the product to be sent to ProSec for field testing. Then ProSec will come back with adjustment requests to the product and will pay for the upgrades themselves.
I realize that everyone wants orders right now, but I feel that HISC is still within the development stage for almost all of their internal products. The Sniffer might be a different story but HISC is simply a distributer of this product. I see HISC acquiring more products for the next few months and when they have several products that multiple parties are interested in then they will make the move to the OTCBB.
I am not scared at all about the financials. Of course I have realistic expectations that do not have the words Profitable or Free Cash Flow in there. If you are a true "Investor" in this company then you must still realize that we are still a pennystock and have a long ways to go, but yet we dream of the days when we may move to the big boards and be listed at far north of $1. If you are a "flipper" then any news is good news I guess. Of course you demand a quick overnight pop that will allow you to cash out. I just don't think HISC will run as fast as most think. Next year around this time we will be able to take a step back and see which direction we are truly moving in. Until then we look for short term targets, which as far as I am concerned HISC has hit every one so far.
Seems like MM want to avoid the daytrader effect or something. We still have some selling into news as people without patience exit. We still have plenty of buy orders sitting out there. Seems like people want to pick up as many cheap shares as possible but they do not want to walk up the bid. Once a few more big fish find the value that we have here then we will move north. Still shaking the weak hands right now. Get them while they're cheap.
Did anyone notice that we made it to 8th on the most active board list today? All that and no basher nonsense yet. Don't worry they will come as soon as we get a little momentum. I already know what they will pick at. With only a few PR's it will be hard to refute anything on either side.
Yeh, amazing was probably not the right word. I was just happy about the volume for the day. Close could have been better, but the PR has only been out for like two hours. More people will see it this weekend and the stock should respond on Monday. Slow and steady.
You know looking back over the 15c211 one could have guessed this announcement was coming. On June 23rd they announced that they intended to begin a project on a doctors building that would be converted into 50 units with ground floor commercial units. They announced that terms would be determined within the next 6 months (June 23rd to December 23rd).
That was an amazing close. I saw it at just under 6 million and like ten minutes later it was over 8 million. That is a big volume day for us. WOW!!! Over $41,000 traded. I hope that poor guy that dumped a million a few days ago found his way back in. That would suck to have sold a few days before the run. We will likely gap up Monday morning. Any guess how far? I'd say this news was good enough to keep us over $0.005 for some time. I'm keeping my bid in at $0.0035 though. If they want to give them away I will be there to take them.
Did we get over 6 million in volume? At an average price of $0.005 that's $30,000 of LFWK traded in one day. Good things are just around the corner, I can feel it. Volume over 6 million on Monday will confirm it.
It's the old adage of selling into news. Those who were fed up with waiting are bailing. I have a few friends with bids in around $0.0035 so hopefully we will all be happy by the end of the day. As far as I am concerned all of these jokers can dump there shares cause in a few months we will be laughing our way to the bank. Keep accumulating boys. No worries here.
Timmage, sorry I misunderstood your question. Private Placement Funding Agreement could mean many things. Could mean the same of preferred stock, warrants or options to buy the stock, or stock backed notes. Either way in the game of real estate it takes capital to be successful. This enables us to launch our next project or two. I spoek of the domino effect before. Good things coming to those who wait. Clearly things are moving in the right direction right now. We are in at the ground level of this one.
There are just way to many potential PR's out there for this not to continue. Why wouldn't Dennis want to spread the word?
-Ambrose Project moving along successfully. Over half of the units sold or under contract. All commercial units occupied.
-Second pilot for Loft-Wise complete and gaining support from national television companies. Advertisement spots filling up quickly. First episode set to air by maybe the end of the year?
-New line of furniture and housing decor completely designed. Catalog production underway. Manufacturing agreements ready to be signed. Link to products on Loftwerks.com website. This would be great to launch now before Christmas.
-Updates on how quickly the Detroit lofts are moving. Landberg Lofts North, Milwaukee Junction Lofts, and Jamieson Lofts. Potentially more revenue streams here.
Payments would come from the loft sales from the Ambrose building as well as future sales from the other two buildings. Another source of income would be the rent from the commercial units in the Ambrose building. Of course there is still a chance that the company will continue to raise captial through the sale of shares.
AAA, man you should stop hanging your neck out there like that by picking which day this one will move. At the rate that chart appears to be moving it will be a month or so before it gets to where you want it. And CMBV may not be a very good comparison to LFWK considering the two different business models. In mid October CMBV announced approved funding and then followed that up with a LOI to acquire a Canadian medical company. I do agree that with big news this one could run.
A couple months from now when we are north of $0.01 we will all be looking back at this time wondering why we didn't buy more. That is as long as the Ambrose project continues to succeed. On the other hand if the tv show flops then I guess we will be happy we didn't buy more. Good luck either way.
What date are we tracking as the date the business started operations? The June 23rd PR announces the IPO, but if unclear as far as if the IPO was complete or ongoing. Or is the IPO opening just the 392,000 shares that were sold? But when I look at a chart I don't see much trading until the end of August. If we assume July 1st is the start of business then the end of the quarter would be October 1st and the financial results are past due. If it is more like August 1st then we are due any time now for results to be released. I know this is a pinkie and there is not requirement to file yet (not enough shareholders), but I'm thinking that Dennis might just be waiting for the quarter to end to release any information.
I'm struggling with the June 23rd PR. There are a few things in there that bug me. It says the estimated value of the property is $40M for the Ambrose Building. I just don't see how that is possible. Even at an average price of $200,000 per loft and there are 22 lofts I think, so that comes to $4.4M. There are four large commercial spaces on the first floor. At most I would that each of those would be worth $1 million. So that comes to $8.4M, far short of the $40M project. I think we are looking at a $4.7M purchase price plus construction costs based on the vague PR. Which equates to over a million profits for LFWK after taxes (40% ownership). Not a bad start. By my estimates the project should be completed around February or March. So I guess we would have to knock off a year of interest on the $3.5M loan for the property.
Anyone care to venture how much effect the huricane season had on the company's bottomline. I read in money magazine that lumber prices went up like 30%. I would venture that we will see at least a 10-20% increase in material costs.
Shadow, they got you pretty good there. You do waste alot of our time making us reread all the press releases thinking that you are making a good point.
I will admit that I was wrong about the TA. It appears that they were gagged for a short period, but we have clearly set the record straight that it was a misunderstanding between Downs and the TA.
Now that I have admitted that I was wrong, can't some of you just admit that you were caught in several lies and fabrications.
Data has done a pretty good job of assessing the situation from an outside perspective. When she gets something wrong it is understandable. Compared to how many times bashers have been wrong on this board, I would say she has done very well.
Go ahead and piece meal this post cause I know you are going to. I may have even mispelled a word for you so have fun.
I had my buy in for over two weeks at this level so what I think we have here is a backlog of buy orders. Those of us that are confident are just waiting for the weak hands to let go. Today we got a few. We will get some more in a few weeks. I'm still accumulating. Today allowed me to average down to around $0.004 and I am tickled. I agree we will definitely see north of $0.01 soon. I am guessing at the end of the quarter when the company releases results. I've got some more DD to do though and will post when I finish. If the company won't tell us then I guess it is up to us to dig it out and assess it.
Do any of you even know the background into the supposed felony convictions? The guy got off with probation so my assessment is that it is not that big of a deal. Probably a valuable lesson learned if you trust at all in our legal system.
You are all missing the fact that the TA could not legally release the number of shares until the count was completed. As I remember that is what we were waiting on for the dividend. The fact that today we had a few people call and confirm the number means we are very close to the dividend date. Today was an amazing buying opportunity. I wish I was quicker on the trigger. I'm hoping for some cash and some stock in the deal. Only time will tell, but there is one thing for certain. When the deal goes through the bashers won't be happy. Even if it is 99% cash and 1% stock they will cry about that 1%. Thus is the current state this board is in.
ground fog, I agree, just trying to present a worse case scenario and show that it isn't that bad. Didn't mean to excite anyone. Sorry.
According to a PR Autotrader.com did over $100 million in revenues for 2003. They were responsible for over $50 billion of used car transactions. So from that I figure calling them a billion dollar company is fair.
Imagine if www.995ad.com can capture just 10% of Autotrader.com's business. Or if they can manage to get to 10% of Autotraders value. That would be at least $10 million in revenues. Tack on the additional revenues from vacations and property and other items and we are looking at a profitable company. I'd say Downs is doing a decent job of building shareholder value despite his past.
What is the sentiment around here? Are we going to see actual financials filed or just another nonreporting pinkie? This business is much easier to file reports versus other product oriented businesses.
IMO, we are experiencing some dilution here, but I think it is within reason. Dennis made it clear early on in a few email reponses before he clammed up that the company would definitely use this instrument to raise capital. I can't understand why any business would go public unless they intend to raise money this way. Here are a few figures, correct me if I am wrong.
According to the 15c211 Dennis issued 392,000 shares during the first two months. I assumed that these types of costs would continue. I also assumed that the IPO price was about $0.25 which equates to $98,000 before fees. So for a ballpark I am going to say $50,000 per month of expenses. At the current price (let's say $0.004) we are looking at 12.5 million shares to completely cover expenses. I believe the smaller loft buildings in Detroit are ownd by the company and currently used to secure commercial loans for future projects.
Dennis spoke early about the tv show pilots and new furniture line so it is likely that funds are being raised for those ventures as well. Just to round to a nice figure I am going to say another 7.5 million shares per month for those operations ($30,000 a month). So that comes to 20 million shares dilution per month.
At the start of July there were 21 million shares. We are now approaching five months later which brings us to about 121 million shares. Seeing now that half of the Ambrose building has been sold and all of the commerical slots are occupied and 40% of that is owned by LFWK, plus whoever owns the other 60% has got to be paying LFWK for the renovation of the lofts, one would speculate that the company's cash flow is not zero. So I am going to go out on a limb and say we will have less then 100 million outstanding shares December 1st.
By December 1st I am going to guess that we will be about 3/4 of the way through the Ambrose project. With a start date of about 1 July on that project one could guess that the project will be complete February or March. By that time we will be knee deep in a second project. The need to raise capital through sale of shares may be eliminated about that time. If not then I think we will reach the max 200 million by April.
Please feel free to refute my figures. I have thick skin. Thanks.
Great buying opportunity for long term believers. Only one of my orders left at $0.0025. Think I'll get it today? If he really is dumping a million shares then I just might. Only thing is that I us AON orders so maybe not if someone beat me to the punch. If you have held this one for less then three months and are dumping to get out now, then I suggest that you never invest in real estate again. It pays off in the long run, but it takes patience and the nutz to put up the money. I know this sounds bad but I am looking at this one as not only a gamble but an actual long term investment. I know that is not smart in pinkie land, but I think we have value here. Only time, financials and press releases will tell.
You should probably do a little DD before posting but as far as I can tell Autotrader.com is a private company. So no, they do not file financials and yes, I guess you could say that their TA is gagged since I can't seem to get them to answer the phone. That is how we play ball around here right?
When did this happen? Did my order execute (well not all that is mine)? Bid/Ask anyone? TIA.
This just in...
Autotrader.com MUST be a scam as well. I just checked their website for press releases and all over the place they claim to have 40,000 dealers in their "network" BUT in actuality if you do some digging you will find out that only 12,000 of those are paying dealers. Wow, what a piece of work. I can't believe a billion dollar company can turn out to be such a huge scam. I guess we shouldn't believe a single PR from them from now on. AND, I bet someone in their organization got a speeding ticket or maybe even a drug bust more then a decade ago. Look out, the sky is falling. LMAO.
It appears HISC is currently focusing on building its product line before making a heavy push to marketing and distribution. From reading thru recent PR's it would appear that they are working on some distribution agreements with some firms, but internally they are sticking to expos and individual one on one sales pitches to large organizations. This is probably a smart tactic for now since I do not think they can handle mass orders. I know we all fear dilution but at this level it would seem to be a smart long term approach to raise a little capital and possibly buy another competitor. I'd personally like to see them purchase DDSI before moving off the pinks and then make the move. I do not yet own DDSI but I believe that they have a nice proeduct line that would benefit HISC. Bring on the contracts baby!!!
Don't get me wrong, I totally agree with most of you here. The ONLY thing that will move this stock right now is news. For now we just wait. Value is just one of many factors that I consider before opening a position. I see a potential value play in this one once the news begins to flow. The company is still very new and needs time to complete the Ambrose project. Once that is successful it will pave the road for future operations. Matt's DD from yesterday was awesome. Looks like half of the lofts have been sold already. I am not sure, but this property has only been on the market for a couple months now. It looks like LFWK is renovating two lofts at a time. Two are pending close and two are listed with prices while the rest are TBA.
I'm not really that crazy about the tv show and new furniture line yet. Once LFWK can establish themselves as an coast to coast provier of quality lofts, I don't see the power behind the name. Real Estate investing is like dominos. You first need one success sale that funds two more acquisitions. These two acquisitions determine if the company will be a long term success or not. So in my opinion this is a solid company with an experienced leadership with decent connections. The successful smaller lofts could be considered the base, the Ambrose building is one of their two starters. By my calculation June 30th was the approval of the funding which means the purchase or service agreement probably finalized in early July. Renovation on the first two probably began in mid July. So about 4 months for half the units means this project will probably close by March 2006.
There are definitely some downsides to LFWK. The CEO is busy with the renovation plans and I guess with the tv show and furniture line to inform the investment community of the company's progress. So instead of a slow and steady pps climb we will be on a crazy rollercoaster ride. If you ask me Dennis is not that great of a CEO, but I do believe in his real estate connections. If LFWK could just get a PR person on the inside to manage investor relations we would be somewhere above $0.02 in a short time and we could stay there. Right now dilution is not even an option. He would be crazy to let millions of shares go at this level just to raise a few thousand bucks. OR...raise a few thousand and invest it in a PR person. It would really only take one guy or gal. No daily PR needed just once a month.
Prove to us that the award was fake? Don't show me an award from a few years ago and say "look it is different" so this must be a fake. Of course they update the appearance of the award and the seal from time to time. Don't just call an IEEE secretary and say that she denies all claims of this award. The stuff you guys come up with just baffles me. Stop guessing and show us some facts.
I was able to find about 8 buildings in downtown Nashville with lofts for sale. Here were my average prices:
Studio $106,500
1 Bedroon $174,500
2 Bedroom $236,000
3 Bedroom $321,225
That boils down to:
$110-$115/sq ft for lower end
$120-$130/sq ft for average
$140-$200/sq ft for high end
Rentals range from:
Studio $500-$800
1 Bedroom $700-$1000
2 Bedroom $850-$1500
3 Bedroom ????
Can anyone refute or confirm these figures? I don't live near there so the only info I could find was through the internet and sometimes the figures posted there are a few years old.
Thanks.
Matt, while I agree that LFWK is undervalued I don't necessarily agree with the $0.02 current value. I could see it getting there, but basing a company's value on only its total assets might be a recipe for disaster. Based on the initial estimates the assets minus liabilities created about $3.4M in shareholders equity.
Then I always factor in the issue that there are always a percentage of receivables that fall thru the cracks. I like to say 10% for large companies and 20% for smaller companies just to be safe. In some situations where each sale is a huge percentage of the total I dip into 30%. Since we don't know let's use 20%. So that drops us to $2.6M.
Then I look at the bottom few assets (typically goodwill) and I like to subtract those since in the case of bankruptcy the company will only see pennies on the dollar. Thankfully there is no goodwill yet, so we will just take away about $60,000 for now (round up to $100,000). That leaves us with $2.5M.
Lastly I like to factor in the reality that no matter what happens the banks will get their interest payments and the G&A expenses will have to be paid. This is a fudge factor of sorts. We were looking at $560,000 of debt. Without digging further for a rate I assume 10%. The G&A comes to about $140,000 so I rounded up to another mil which leaves us with a pretty solid $1.5M. Dividing that by the full 200 million (which is unlikely but a good safe estimate) comes up with $0.0075. So I can see why we are trading in this region.
BUT, I consider that our downside risk, which in this case is practically nil. The upside case include possibly half the number of outstanding shares as well as the chance to recoupe all receivables. I would not be ashamed to say that the upside is more like $0.02 which would be 4 times my accumulation level.
Ok, please don't label me a basher for asking questions but in the original PR it stated that the Ambrose building was 4 stories, but in that picture, which pretty clearly shows the address the building is only 3 stories. I only see two stories of lofts (21 possibly 22) for sale while the PR mentions over 30 lofts. The average sale price appears to be somewhat inline with the $130K to $275K from the PR. This is some great info but it is throwing my value calculations into a mess. The original PR mentions that the company will put is $4.7M of repairs to the lofts, but at an average price of about $150,000 each the difference between 22 lofts ($3.3M before closing costs) and 33 lofts ($4.95M before closing costs) is the difference between a profitable venture and a loss.
You know wiritng PR's for this company would be such a simple task. I'm not sure of the legality of these releases, but I wonder if Dennis would accept an offer to allow me (or my own company) to produce PR's. Heck even something simple about loft sales would educate investors as well as serve as a form of advertisement to move the lofts. Anyone know the costs to a company to actually issue the PR? I'm going to do some research.
"IDS announces that the sky is blue and the world is round."
Clearly a complete lie! I just looked outside and the sky is grey. So who does Downs think he is? In fact, he got a C in his 6th grade geography class so there is no way he can tell the weather or even tell what shape the earth is. I bet he isn't even from this planet, nor has he even been here to see that it is round. Clearly this company is nothing but a scam.
LMAO
Excellent DD Matt, thanks.
Can anyone answer these questions?
1. How much does it cost (legal and accounting fees) to create all the required financials for a multinational corporation for a year?
2. Does it cost extra to have the TA openly discuss the number of shares with shareholders?
3. Does a company use a typical brokerage firm to buy back its shares or is there a special process involved?
TIA
OT: All I can say is HUAHHH!!! From one grunt to another thanks for your service.
I use bases to determine value. The stock was trading consistently between $0.10 and $0.20 and now the stock is trading between $0.20 and $0.30. Last time I checked that was just about double the value. I'm sorry if anyone bought at the top of recent runup. I'm not sure why investors do that. Now would be a much better time to get in at anything below $0.25 and hold off for the divy and the spin off of www.995ad.com. Way too much potential for this one not to run again.