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db - totally disagree. it actually angered me to read:
1) he contradicted himself on a number of points. example: the otc bb apparently doesnt value companies properly (according to our braintrust) yet they are trying to raise 50mm using the supposed undervalued shares on that exact exchange. if they expect a better valuation on the AIM, why not wait to raise money until then.
2) they've been saying the same things over and over with nothing to show
3) he brags about "only" spending $5mm a year in expenses for a shell company and brags about their "streamlined" operations....hahaha wow
4) we have no expertise and bring nothing to the table for any new acquisitions...anyone can outsource.
5) americans see things differently and that's why we arent investing more money????? give me a break. i guess this goes back to the joneses comments?
6) the aim will magically make things better? sorry peter, p*ss-poor management and business plans on one exchange is the same as p*ss-poor management and business plans on another exchange.
a) i dont have 20% of my net worth tied up in this (its less than 1%)
b) i expect to earn income every year
c) i dont have a fiduciary duty to anyone but myself (its my PA, i am not a public entity with public shareholders) and this investment will not put my financial health in jeopardy whatsoever if it goes bust.
so...your analogy is apples to machine guns.
actually i think he knows alot more than you do...JMHO. hes much more realistic than most here with their "imminent buyouts", secret deals and grand jdz conspiracies.
with tax loss season coming, i'm guessing we go well into the teens. JMHO
ntephe
hey peter!
Obviously you couldn't answer the question and therefore deflected...haha
pepsi - simple question, if someone came to you and asked you to invest ~20% of your net worth, knowing you would not be earning another penny for at least 5 years in an investment that was paying 2.5 times greater than what you could get anywhere else, would you seriously do it without an afterthought (because other people were doing )?
if you can seriously answer "yes" without thinking there might be some problems, well...then there's no sense in arguing with you as you clearly are at an extreme in terms of investment risk.
EDIT for Krom (as i am out of posts): you are missing the point...i dont have 20% of my net worth tied up in ERHC (actually its less than 1%) and i do not have a fiduciary duty to anyone but myself....
hindsight is one thing and i agree its easy to look back and say it was dumb. having foresight is another...and what executives are paid to have and exercise. this is a public corp with limited cash...a little due dilligence (not, "hey everyone else was doing it") would cause most people in that position to question something paying 2.5 times the current market.
i can understand it from an individual person's PA, but not from a public company with relatively little cash.
nope i never called it before because i didnt know about it...im sure if this board knew beforehand, someone would've raised the red flag. and again (and again and again)....these guys are paid to avoid this stuff. putting the only, limited cash we have in what is a very risky investment is very dumb...and thats my point.
im gonna stop with this thread because you obviously dont get it and im done beating a dead horse. i will end with this:
considering the assets were high profile real estate etc
a public entity should never put there money in that type of investment
the fund was never garanteed and the rates were not much higher than a regular bank CD
again, a public company would never invest in that type of thing with their cash on hand. and AGAIN, the rates were 2.5 times above the average - THATS SUPER HIGH FOR A CD (that is straight out of a businessweek article)
Keep in mind this was a speculative long stable performing investment fund
and for the 3rd time, A PUBLIC COMPANY WOULD NEVER INVEST THEIR CASH ON HAND IN SUCH A SPECULATIVE INVESTMENT
Their track record was impressive as was the entire organization.
so was bernie maddoff's.
IT WAS A FREAKIN PONZI SCHEME
5 year rate was >7%...no, no red flags at all.
sorry i was a little off... based on some basic searches, they were charging over 2.5 times the average rate....yeah, no one saw that coming...hahahah.
and bernie madoff's split strike strategy was consistently returning 20% a year...hey at least we didnt put money there. go management
most people do not make investment decisions based on message boards. if you do, then i feel very bad for you. and the real money (instutions) that would actually move the stock....messages boards are looked upon as a joke.
talking to yourself is a sign of old age...just saying...
to me, he is one of the few realistic people on this board. the share price seems to support his arguements over yours (and no i dont think anyone on this board can influence the stock price). if things were so great and a deal was about to be done, we would NOT be at .22.
no he's saying if its too good to be true, it usually is. a CD rate close to double digits at time what you were lucky to get over 2%???? come on...and the excuse that "alot" of other people did the same is so lame. management is paid to avoid crap like this. oh wow, johnny damon had money there! well then it must have been full-proof....good lord.
taking investment advice from lawyers is about the worst thing you could do...i sure hope the story isnt true as it will just lend more credence to how dumb our management is.
actually i would've been very surprised if a deal this small (cash-wise) would've gone to more than one institution...but hey, it makes for more fun dots doesnt it?!!! :)
did you and balance get deprived of "connect the dot" games in your childhood days?
Is seek the light "off" today?
our good buddy robjer got banned...feel really bad for the guy </end sarcasm>
your posts are increasingly about being "right" or "wrong"...why is that? hmmm
yep because a deal is imminent while we flirt with the teens. for our sake, i hope to GOD there isnt a deal because we will all be screwed.
Yes the reason is because it is boilerplate. But let's not let facts get in the way of dreamy dots.
strass that's also alot of hearsay. many have speculated here that he is not worth anything even close to those figures.
that's in nigerian currency. look at the fx rate. not a billionaire by any means whatsoever
lol - thanks king. i want a buyout as much as anyone but sometimes you need to let facts get in the way of made up dots.
That is pure bs as are most of your recent posts.
A) the sp was around .40 when the deal was done. In the real world, that's a horrible deal
B) I have seen plenty of secondaries done when things are going great. That's actually the whole point...so you are negotiating from a position of power and getting the most money for as little dilution as possible.
C) our crack management team knew we wouldn't have cash flow for a number of years. They could've raised the cash at much higher prices. Its called being prudent and visionary and is what a real ceo/cfo is supposed to do.
"the new york boys" make money off the desparate ALL....THE....TIME. this type of deal is the exact blueprint on how to make money risk-free from the desparate or idiotic (or both). youre so naive, uncreative and inexperienced with finance its not even funny. actually it is funny because you speak in a position as if you know.
"there are those that dont know and those that dont know they dont know" :)
absolutely - the secondary wiped 10's of millions off our market cap for 2mm in cash. i call that giving away shares.
why didnt they act when the share price was the opposite of all time lows?
wow so we shouldnt post what the PR guy tells us??? lol! another gem from you.
addtional edit: this stuff shouldnt be censored, no matter how asasine it may make dk and the company look. these guys need to be called out
the way it happened is EXTREMELY common. i have seen it many times. a company raises money and then the bank/institution who helped facilitate the transaction will have the company present at an upcoming conference. happens 95% of the time....once again, you maxine, are clueless.
hahahah maxine!
these guys are in so far over their heads its pathetic. My guess is David Bovell and Peter carry around a "finance 101" cheat-sheet when they attend meetings about this stuff...and i can gaurantee the people at places like rodman and renshaw absolutely love these guys. talk about your proveriable sharks circling the waters. nothing like working with clueless executives who will give money and shares away without even knowing it.
sorry but i find it a sad existence when the most fulfillment you can get out of life is attention on internet message boards...
dont forget that the short figures are only a snapshot on one date (a month behind). the short figures don't capture shares that were shorted and then covered intra-month. these guys could be shorting and covering and we'd never know it. for the most part, especially in penny land, deals like this will be shorted by the buyer to remove any risk and lock in the spread. hope im wrong but its strange how we have been magically sucked back to the PIPE price.
that's how these things work. it sucks for us but that's the price the idiots running this company agreed to.
you're misreading the filing:
In addition, the Company will issue to the investor warrants to
purchase shares of common stock, which, if fully exercised, would
provide an additional $1.9 million in gross proceeds to the Company.
The warrants have an exercise price of $0.28 per share and are
exercisable for a five (5) year period commencing on the closing
date.
notice the IF. if they exercise, the company gets the 1.9mm which is equal to the strike price.