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He assured me that O/S are less than 40 million. Come one people, do you really think that he would blatantly lie about this
GASP!
Someone is suspicions of lying when there's money involved?
Who the heck would lie when there's money involved! Geeze no one does that anymore, it's so 1998!
the worlds a much better place than that.
People lying for money! What a gas! You must be one jaded person, to think that would really happen.
Bash?
I wish you people would just think about what you're reading.
Grifco stock since the first of the year
05/31/06 0.2600 0.2600 0.0500 0.1200 -0.1150 14,509,605
04/28/06 0.2850 0.3350 0.2050 0.2350 -0.0450 26,348,585
03/31/06 0.1870 0.2900 0.1150 0.2800 +0.0930 27,578,909
02/28/06 0.2900 0.2900 0.1800 0.1870 -0.0930 12,484,452
01/31/06 0.2400 0.3600 0.2400 0.2800 +0.0300 11,539,783
roughly 94 million shares traded.
If someone wanted the company, they could buy 19 million shares for 6 million dollars and then elect themselves as CHIEF OF THE BOAT, and then authorize selling themselves the remaining shares at a 20% premium.
One could have bought 40 million shares easily for under 30 and got the whole company in the last 6 months. Yet some mystery buyer is coming in and offering 5 times that to go through the dialer to get the company. Yeah right.
Yet Jim expects us to believe that someone is tendering an offer for three or four times that right out of the blue. More than one someone.
IT'S OFFICIAL!
Jim Dial has lost every shred of credibility he ever had, if he ever had any, it's gone now.
A PR about how they're being targeted for acqusition, for 50MM and that's suppsedly $1.20-$1.50 a share and the stock cannot break 20 cents meaningfully.
Sad
two separate external IR firms have BEGGED the dialer to get out the share count, just authorize the TA to say a number. NOPE, neither one was succesful- --strike one-- - he won't even tell the people that are supposed to be representing him WHY he won't let it out
NOTHING the company has put out is verifiable. Absolutely nothing. They hire one person firms one at a time for their bookwork. One time the dialer did a conference call. someone asked him who the auditor was, he said "kovitz". now that was either a retard moment if there ever was one- ive been in business 15 years, and can stil recite the names and proper spelling of all of my 5 different accountants and their assistants names- or he was being evasive. the name was koblenz, and I called him and asked if he was doing an audit for SEC filings. He laughed and said, no we're not going to do any filings. They replaced him about two months later after I challenged the dialer on it by telephone. --strike two--
company's website doesn't work. links are not updated. phone tree doesn't work, cannot leave a message. most of the time when I call I cannot get an answer at all, and from what I can tell dialer dont return shareholder phone calls, or e-mails --ball-- they might just be sloppy people- won't go there about sloppy people stewarding monmey for the masses
despite promises to the contrary, NOTHING has been filed with the signature of JIM DIAL with the SEC. There was promised an update if they didn't file the 10q's for the old company and get caught up. No filings, no updates. and just when the die hard cool aid drinking longs are lighting torches and drafting a community demand letter to show them the books the dialer releases a nebulous pr about some outrageous tender offer that has no way of being verified. -- steeerike three and you're out--
no way that timing was coincidental, which shows me, IMO, that there's not going to be any filings for ctbg none for gfci, and no dividend shares. it's a shell game. There for the sole purpose of the management to print shares, IMO and sell them, and for people to trade. Heck I've caught the ride up a few times myself. Paid for a nice week at the beach with the grifters (thanks for the PR about the dividend dialer) but IMO it is NOT an investment, NOT any place to keep money that you actually want to grow. Each rally need to go a few less cents for the PD'ers to double their money, while the people who actually believe the bullshit these guys are feeding them see their money get pissed away one rally at a time. Look at the year chart, it's like a picture of pump dump defined.
Look at it this way: If dialer were actually trying to make this stock grow, he wouldn't be playing into the hands of the "shorts" as he likes to claim. He'd release the TA to give a share count. He'd hire a real auditor and stop talking about SEC attorneys.
Hey clever! If you visited the company and got good news, why wouldn't you put it to the public? Everyone knowing good news would be a GOOD thing for your money and investment here, not a bad thing. Keeping the good news secret just cause you want people who bankrolled your trip to be the only one's knowing the great stuff you learned seems counter productive to your overall goal of havng the great news get to the world about grifco, doesn't it? just curious and never understood that myself.
this is all my uninformed opinion.
peeker, no I'm out completely. I wish I could short it. Easy money, IMO.
ALSO IMO, this thing gets above 20 sell like crazy and count your blessings that you got out somewhat intact. 10 is just around the corner again.
strongus
I wish I could short gfci because a short here is about as sure a thing as comes in this market. An EASY 30-40 % drop coming up.
IMO dialer saw the crap about a lawsuit/demand letter, and oh let's say thought of a crafty way to take their eyes off the ball. He knows when the filings a'hem cough cough will (or not) get done he knows if there's any perayer of a dividend in July, and what become of that?
Grifco gets outrageaoulsy priced buyout offer from mystery guests from around the world. news to come!
Just when I thought the ol' pump and dump game was played out.
Here comes the dialer with another trick up his sleeve.
Geeze
Looking for CTBG's financials? We'll throw them another curveball.
Hey John, call me up in ten minutes and ask me if I want to sell the company for $100 million. No better make it more believeable. try $50 million. Thanks a bunch I'll give ya 20,000 shares into your account this morning.
(5 minutes later)
Hey Jim? yeah this is John in Libya. I'll give you 50 million for Grifco! Oh, you got a call coming in from Sam in Britain? I guess he's offering to buy the company too, eh? Ok you'll get back to me on that? Thanks. Have a good one.
HOUSTON, TX -- (MARKET WIRE) -- 06/08/2006 -- Grifco International, Inc. ("Grifco" or the "Company") (PINKSHEETS: GFCI) announces that it is reviewing several offers to merge or to be acquired. Current offers originating from the United Kingdom, the United States and Libya range from GBP 28 Million British Pounds (USD $49 Million equivalent) to GBP 36 Million British Pounds (USD $59 Million equivalent).
LOL, unreal
My repsect for certain people here notwithstanding, anyone still telling people anything other than RUN FOR YOUR LIVES ought to be ashamed of themselves.
There is not one reason for anyone to trust management or pumpers currently.
I'm going on record as saying that there won't be any dividend. Not on July 1, 2006, anyways......
I thought it was about putting on a tuxedo and going to breakfast.
now you say it's about being shelled in the face by a mortar round?
Is that before or after the eggs benedict?
Do I get my tuxedo rental back if a mortar gets blood on it? O' wait, if I still look good I guess my face didn't bleed?
Sheesh, I'm really confused.
to quote:
Man, you have got to either be joking (please say you are) or else you are so grasping at straws that nothing you say can be considered to have any validity beyond this date or you are trying to convince the woefully ignorant and you know better. And, even if that is true, then nothing you say can be considered to have any validity beyond this date!
Len,
it's a joke all right
a great big joke
I'm wondering if anyone still thinks they'll get shares of CTBG at all, much less on the 1st of July.....
CREDIBILITY!
10Bag
Just another pinkie
pump pump pump pump
with a bunch of forward looking statement, a bunch of PR's about what "hopefully" will happen, what "might" be coming down the line,
Parody of management:
Hopefully, we'll be able to pay a dividend of shares of this company we bought. Maybe it will come out in July, IF we get our filings done, which we HOPE to do by the end of May, and we MIGHT even let you know why, if they don't, but probably we will just keep our months shut and let you wonder, while we DON'T answer our phones and DON'T return phone calls. but BY ALL MEANS keep holding our stock because wwhile we won't tell you if you selling stock still gets you the hypothetical dividend or not, but if you sell, you might risk not getting it.......
I cannot believe anyone is even the slightest bit surprised.
This is just another par for the course. What's the next play?
no Dividend on the first of July. That's m.o.
Are we having fun yet?
This is unbelieveable!
Spinoff by end of May. Reports at edgar.com by end of may and we'll report if they're not.
This stock IMO is going to less than one cent per share......soon.
About the time that no one gets their shares in their account on July1.
Gotta hand it to the Dialer though, he really roped people into holding on for a really long time with that dividend story...
LOL
He's got gumption that boy
the brainpower necessary to do math/statistical analysis is considerably different from the organizational power and leadership ability to get a public company up and running.
Scrushy was a great leader and salesman.
You're argument about Dial "not caring" (my words) about the stock price until he can sell his shares, if true in sentiment, says a lot about who is running this ship.
Although that information about Dial does give him a little more credibility in my mind. Why won't he tell the TA to open the books?
Remember, smart people can see the thin line between using the law and breaking it..........
Clever,
I been there and done that and got the little shot glass to prove it. I think that if you were sitting neutral you would see so much more clearly about what could be going on.
The PR said, "CTT anticipates that all deficient reports will be filed with the SEC by month's end. The Company will update shareholders should this deadline be extended due to constraints in completing the historical filings for IPMC."
Not only have we not seen "all" we haven't even seen "one". Ane based on my experience with BLTI, who had a real team of auditors on the task, they won't be filed concurrently. IMO.
Grifco states "it is expected to launch periodic quarterly financial reporting to align it with SEC reprting requirements for small business issuers. The company's new qurterly reporting is expected to be issued at the end of the first quarter and to coincide with the start of its fiscal year month of July, 2006."
So what does that really mean?
Well IMO they're going to start in July, and the qurter ends Sept 30. Then they've got 45 days, to even be compliant in filing. You're looking at at least Next Jan until the SEC let's them stick those CTBG shares in your account. IMO of course , but that's why I said there's nothing to this stock.
This stock is worthless, IMO because they will NEVER get those filings caught up, and then, also IMO IMO, you'll find out they've sold 250M shares or whatever and have to do a R/S into another shell or into the same shell to get it back down again.
The oddds IMO are so far stacked against this one, and I don't think Dial has the mental cpacity to get it done. He certainly hasn't shown capability in any department I've seen, but maybe he keeps the shop clean and the welders busy.......
Think of it this way, if they're spending 24/7 or 80% of their time trying to get this thing done, where is all the money coming from for accountants, counsel, etc.
They almost have to be selling shares out of treasury to pay for all this, which IMO is the reason for the delay, they are stringing it along hoping to get it done before the truth comes out.
Jim Dial not authorizing anyone to see the TA books is key to this whole thing, IMO. There's no good reason for that. It's a race against time, IMO and he cannot pump the stock up with a bogus, "WE'RE IN LIBYA" PR anymore so he can shell out another 2MM shares at .20 to pay that 400,000 lawyer fee he's got this quarter. I am not saying that's what is going on, but lots of pinks try the long shot at getting legitimate doing so. Miss, turn around and do it again.
Trim a Lawn anyone?
There's a reason why they didn't IPO in the first place
There's a reason why Dialer won't authorize that TA to show the real story. What is it? He's too busy?
at .11 on June 1 2006 would you still have bought, back in June 2005?
This is in no way insinutating that they are crooks or criminals, or lying. They're just trying to "get it done" and doing ebverything that they can to do so.
maniac trader- please no pumping on this board- especially penny stocks
Thanks
yse I would guess that would show up in the books somewhere
I thought it was posted here at one time, BC I thought I commented on it, but I can't find it and won't spend any time looking. Whoever posted it at RB will remember where they found it, and can probably do it again.....
Hank someone cross posted the statue verbatim a few months ago, about how a shareholder has the right to see the books, all of them, from management.
FOr the life of me I cannot understand why anyone who has more than a few bucks in this doesn't pay $400 and get a round trip ticket to Dials office and tell him "i want to see those freaking books, all of them"
They seem too afraid to make the man angry.
My deep down feeling is that they are really afraid of what they'd find, or the Dialer would simply say "no" and face any lawsuits.
I would guess by now, Jimmy has the wherewithall and financial ability to surround himself with a pretty good team of attorneys. I still cannot believe that it has gone on this long, but all the longs here seem to be happy holding out hope that with all the crappy PR's, all the deadlines, or whatever, missed, and with all the runaround, that somehow DIal and company are going to be able to manage the stock split/dividend without the help of a transfer agent,
yeah right
they've got such an impeccable record at getting things done, the right way, the first time
I just don't know why I doubt........
It's sad, but I get more and more convinced that everyone is going to lose all their money by buying either stock. Or rather holding, in the face of all the mounting evidence that there is absolutely nothing to this company, or rather it's stock.
All IMO< but longs should sell and run from this one. It's not going anywhere imo imo imo
management missed another deadline
with no updates as to why
no filings on edgar
and yet the people here expect them to be able to manage some screwball shortselling inspired stock dividend without an ex-dividend date, without a transfer agent to handle the transaction?
This missed deadline, if it happens, will likely send the stock below .10.
SAD
all dial has had to do for the last year is authorize the transfer agent to release shares outstanding and shares floating, and he hasn't been able to find time to do that.
I wonder why
could it be that they're printing shares like a freeaking mint and the SOS are going to be close to 200M?
YES IMO that's why Dial won't do it. He's printing shares and selling them as fast as he can pump them.
Anyone else got a plausible idea why he won't do it?
didn't think so
All those worried about a pump and dump surrounding any "dividend" or anything like that, not to worry, you'll have plenty of time to buy, BEFORE any payment date, and therefore the ex-dividend date is made.
The NASD/SEC will NOT IMO allow them to arbitrarily set their own "record" date without financial information being available to evaluate. Information about Grifco's ever mysterious share count will need to be made available from the transfer agent, and the process of when the shares go ex-dividend, ie when they start trading without the CTBG dividend will again IMO HAVE to be known.
Otherwise the fleecing of individual investors would be just too blatant, and easy.
IMO, you're still trading away shares of CTBG when you're selling GFCI, and you're still buying the right to recieve any theoretical dividend shares of CTBG when you're buying GFCI stock today, tomorrow and probably through next Oct.
All IMO of course.
For the full year ended December 31, 2006, CTT forecasts revenues in the amount of $3,615,000, with over 50% associated with the Jet Motor.
============================================================
OK we went from $2 Million per month per 50 and we were supposed to have two sets out there last I heard, 4 $$M per month, as 12 months is $48 MM, right?
Now we're getting a line about 3.6 million FY, and only half as the Jet Motor, so about, 150,000 per month...........
and people still believe the line of bullshit that Jim Dial is throwing off?
This man, well, I guess there's people still lining up to buy his shit, isn't there?
Unbelieveble
48 Million a year from the Jet Motor
1.8 Million a year from the Jet motor
37.5 Million shares outstanding
_____ Million shares outstanding
Our SEC attorney is working on the problem as we speak
what the hell is an SEC attorney? The SEC is a government agency, and their attorney's certainly don't work for Grifco. Unless it's a sting op, we should be so lucky. Jarvis is behind all of this I am of that firm opinion. He's printing a mint of shares I'll bet my bottom dollar.
My analogy was actually meant to compare the acquisition of CTT to eating breakfast and putting on a tuxedo.
enuff said, BBB
enuff said
"You make the common mistake of actually believing that their full intention is to have an Ex-Div Date at all. So what if there isn't one? What if an Ex-Div Date NEVER gets assigned, given the atypical method that is likely being followed?
==============================================================
I just came to an important realization
"When you stand on a corner arguing with an idiot, people passing by cannot tell the difference of who is who"
"What if there isn't a ex-dividend date?"
"It's not like eating breakfast, it's like putting on a tuxedo!"
I seriously hope no one had made any financial decisions based on one single word you have posted about any stock, ever.
BTW if you're correct about the never getting absorbed thing, then the share price of CTBG is going to be divided by 8 when they SEC/NASD declares those shares effective. These people will be PISSED!
THAT IS ALL
What is fair, here? That "Record Date" PR couldn't have been written any clearer -- you HAD to be a shareholder on record AS OF CLOSE OF TRADING ON MONDAY, MAY 1, 2006, to participate in the spin-off and receive a dividend.
Fair?
Fair is to allow people the opportunity to investigate easily and in common format what they are indeed buying. For example,
what are the current revenues?
What is the revenue growth?
What is the capital allocation structure, plant, materials, inventory, purchaser profile (does GFCI/CTBG) recieve most of their orders from one entity?
What is the compensation package and who sits on the various committees?
How many shares are there outstanding, and how many shareholders, how many votes does management have vs other common shareholders.
Is there Debt? How much?
Will the company need to go to the capital markets to fuel growth, or are they cash flow positive enough to grow organically?
Fair? Fair isn't to say, "We've got this awesome dividend dude, and you gotta buy before we tell you anything else! If you don't trust us, you don't get the dough, dude. We told you we're going to Libya, and that's enough!"
or worse yet, fair isn't "well we've got this dividend but only people who live close, or know someone who knows someone and can get the CEO's cell phone number is going to cash in on this dividend"
That's why the SEC will NEVER imo, OK a past ex-dividend date without at least haivng the shares trade a few days minimum after pertinent information is available to ALL interested parties.
Personally, the more I see the value of the two companies, I don't think that the SEC/NASD will allow GFCI to spin out CTBG, it's too much of the value of GFCI, and not "fair" to all the shareholders of GFCI. And if they do, it's going to be well after the financials and 10 sb or 10q are filed for both companies. Also I think that Lyamec is going to pull out of the project, along with the Libya connections, and Jerry and Jerry are going to get pissed at Jim and stop doing business with him entirely, and a huge legal battle will ensue. That's how I see it going down.
But that's my opinion.
Thoughts on the "fair" statements?
BBB you skipped over the last part of my question entirely:
2)You do realize that this isn't fair to anyone wanting to do things the "right" way don't you?
BBB you stated that you "know" their true intention. I take to mean that "their" intention being Grifco management, and the intention to have only people who held overnight, from May1, to May2 to get the dividend shares. Or maybe from April 27th to May2.
1)am I wrong in this assumption?
2)You do realize that this isn't fair to anyone wanting to do things the "right" way don't you?
I eagerly await your answer.....
Lyamec bought 6 Million shares of GFCI at $.50
$3 Million dollars worth
current worth of that speculative investment?
$8 hundred ten thousand
OUCH
$3,000,000
to $810,000
I bet they are all huge Jim Dial fans right about now.....
BBB, it is not even close to the remotest possiblity.
sorry
and, I hope no one's actually taking that load of bullshit you're throwing off
"sliver of truth" is a great line, though, for you to use
very apropos
RE : 10 bagger: Incorrigible child!
BBB, I think that you should seriously re-evalute the maturity of implying that your pet machine shop stock/company is going to go from being worth 10 million to worth $2 Billion, when they cannot even operate a friggin phone answering system with 3 users, or get the simplest grasp on their financials enough to give some guidance of how things went during the last two years they have been in operation,
before you go calling other people "child" "incorrigible" or other names
stockpeeker I am trying to be rational with you, so bear with me.
1)Even the most proliferative pumpers here agree that the Record date is meaningless when it comes to this kind of stock dividend. The shares bought now, come with a "dividend due". The shares sold now come with a "dividend payable".
I do not have time to go into the SEC rules bearing such a clause, nor do I have the time and or inclination to explain the rationale behind the rules, other than to say, that the people getting the dividend in your fantasyland of hold overnight May1-2 and recieve the div, would be doing so at the direct detriment to people who want to wait until they can actually see what they're buying. It has to do with the transparency laws protecting people from a shady management (no terms necessarily apply to this management team) telling stockholdrs yeah you're going to get this HUGE dividend, trust us, without having the burden of filings anything substantial. however I can understand that Jim Dial et al have been such stalwarts for the force of truth in disclosure, such champions for the old fashioned values embodied in things like fiduciary responsibility and such that you would have a hard time NOT believeing him at this juncture, so maybe simple math will do it for you:
2)when a stock goes ex-dividend, the value of the asset leaving, is subtracted from the remaining value and the stock price instantly trades, on open reflecting the new value. It does not trade "towards" that new value, it is instantly repriced. One reason (among many many) is that the ex-div is announced so that all market makers of a security can know where to open it, and as such not get taken in an arbitrage scheme.
since grifco closed, and opened at the same price or within a penny or two from May1, to May2, there CANNOT have been any meaningful subtraction of any asset from their corporate hoard. Unless 85,000,000 shares went for .000000000000000000001 each, that is.
Leaving the ONLY possibility remaining, that the PR's are deliberately or ignorantly obfuscating the truth.
I hope you understand this now. Sincerely, because you stand to lose a LOT of money if this basic concept escapes you for long......
don't forget that GFCI is worth 1.89 times CTBG plus the intrinsic value of GFCI!
2 * 1.89 = 3.78 billion for grifco !!!!
plus libya of course
3,782,000,000!
wooooohooooooooooo
or I should say
silver and gold silver and gold
E.I.E.I.O
Mr. Bill, I see no reason to debate you at all.
of course not. There's nothing to debate. The stock did NOT go ex-dividend on May2 because the open price was exactly equal to the price on the close the day before. No one can possibly make any argument to the contrary.
One may buy the same dividend today for .15 that he would have bought in the low 20's last week, believing what the company said.
As for how you address me, it's either "Bill" "Billy" if you want to sound like my 4th grade girlfriend, or "Dr Bill". Any other title you assign me is a blatant attempt to belittle me.
stockpeeker, once again I say a mind is a terrible thing to waste.
If you cannot debate me on the issue and be somewhat knowledgeable, then you can once again cry to the powers that be, that I'm not being nice to you. Have my posts removed because you don't like to be reminded of how wrong you are.
This post is on topic because you refuse to look into the facts at all, and are misleading people into thinking that the exdividend has passed, when it in fact cannot CANNOT be so.
Please keep your posts to the relevant point, that a)the ex-dividend date cannot have been met and passed due to the closing and opening prices on GFCI stock, and b)that you really don't know what you're talking about and just talking, well maybe to pump your own position, I guess that's all
I am not a moderator of GFCI board any longer
I can also assure you that I am not looking to either sell, or buy, GFCI stock in the near future.
I'll go on recrod as saying that I am VERY disapointed that they have yet again delayed the filings. We were suposed to get filings for grifco last September for gosh sakes. Now, we're supposed to have filings to get CTBG up to date by April 30. Well folks, it's way after april 30 and we've got "ok wait another month"
meanwhile there's no update for the ex-div date, so people who bought shares at 30 wanting to get the dividend, are now watching people get the same dividend for half the price!
Personally, and this is only my opinion, I don't think that the dividend is going to happen at all.
CTBG is supposedly going to be spun out of GFCI, right? well, now, that means that the company being spun out is going to be worth more than the whole company that's spinning it out in the first place. How can you spin a 17 MIKKION DOLLAR COMPANY (85 MM *.20/sh)out of a six million dollar company (37.5MM share *.16/sh)???
the answer is you can't. And the SEC is around to protect the people who own GFPI from that happening. So what gives? It is my opinion that we will be informed that we will have to wait until the Grifcol filings get done, so investors can properly value the entire company, before spinning out such a large portion of the whole. And we all know how great J is at meeting those pesky deadlines. July? Sure thing boys. We'll get you those filings in July. Check back then. Meanwhile the pumping keeps right on trucking.
Thanks!
Welcome!
I e-mailed ernie (ehwest) and told him
hopefully he'll find his way over here
he's a hoot and occasionally finds a real winner of a stock!
(just kidding ehwest, you da man)
one tidbit is that qquantrx (?) just filed to go public for 300MM, and they listed RPRX (then zona) as one of their main competitors in the field of uterine fibroid treatment, and that rprx is ahead of them in the game.
RPRX has a value of just under 111 M, with cash about 15 so the enterprise value is 90 some million.
If the investment community is placing an IPO value on quantrx of 300 that makes rprx (gotta get used to typing that now) easily worth 300 because they've got 2 drugs with 3 applications, androxal for testosterone deficiency, and proellex for both endometriosis and uterine fibroids. Each of these applications is easily worth 1B sales.
Stock is worth 40 going into time when they are anticipating results from the PIII and filing of the NDA for androxal, IMO.
One hedge fund I spoke with told me with a straight face thathe could see the company getting bought for $100 in a year......
I'll send you more DD by e-mail
--------------------------------------
silver and gold, silver and gold, E.I.E.I.O.
letter to shareholders
May 3, 2006
Dear Fellow Shareholders:
As I write this letter to accompany the 2005 Annual Report, I believe that the fruits of our labor through a difficult 2005 are now starting to appear. We spent much of 2005 reducing our expenditures and costs waiting for the reimbursement initiatives to finally be put in place to accelerate our business. The 2005 calendar year started out with The Centers for Medicare and Medicaid Services (CMS) approving broad reimbursement coverage for Implantable Cardioverter Defibrillators (ICDs) for primary prevention patients (no prior arrhythmic issues) based solely on a measure of the heart’s pumping efficiency, ejection fraction. The year ended on a high note, with CMS issuing a draft coverage policy allowing for broad coverage for Microvolt T-Wave Alternans Testing (MTWA) in individuals at risk of sudden cardiac death.
While we were applying for the National Coverage Decision from CMS, we faced several challenges. Total revenue for 2005 declined almost 18% to $4.2 million. Facing a revenue shortfall, we eliminated $1.3 million of operating expense, a reduction of 20% from the previous year. We reduced expenses at all levels of the organization and eliminated sales territories that were unsuccessful due largely to limited reimbursement for our important diagnostic test.
To close out 2005, let me review some of the challenges and achievements since my letter to you last year.
http://secfilings.nasdaq.com/filingFrameset.asp?FileName=0001193125%2D06%2D096947%2Etxt&FilePath...
REIMBURSEMENT – CMS NATIONAL COVERAGE DETERMINATION
I have often discussed the changing landscape in which we operate. Following the two landmark ICD studies, MADIT II and SCD-HeFT, CMS approved reimbursement of ICDs in patients with an ejection fraction less than or equal to 35%. The January 2005 decision by CMS was quite broad, and while CMS did not require any risk stratification other than ejection fraction, they strongly encouraged further use and study of MTWA. In May 2005, we applied to CMS for a National Coverage Determination specifically for Microvolt T-Wave Alternans. Our efforts were rewarded with a draft decision in December, which became final at the end of the first quarter of 2006. This National Coverage Determination states, “Microvolt T-Wave Alternans diagnostic testing is covered for the evaluation of patients at risk of sudden cardiac death only when the spectral analytic method is used.” Dr. Mark McClellan, the Administrator of CMS, said in a press release issued by CMS, “By expanding access to MTWA, we are making it possible to improve treatment decisions and so improve the health of many Medicare Beneficiaries.”
In addition to the very broad reimbursement coverage given by Medicare, the National Coverage Determination also recognized the importance of Cambridge Heart’s proprietary method of analysis. Medicare included this recognition as part of the decision. We believe that Medicare took this bold step in recognition of the many peer-reviewed clinical studies that have been published about our patented algorithm.
Medicare covers approximately one-half of the population at risk while private insurance companies cover the other one-half of this population. We now hope that the strength of a Medicare National Coverage Determination will serve to encourage private insurance companies to issue coverage policies of their own. The importance of the NCD is clear and may become one of the most significant events in our history.
PRIVATE INSURANCE COVERAGE
One of our highest priorities has been the establishment of reimbursement from the private insurance companies. It is vital to the success of an office-based product that the physician can obtain payment for the tests he performs. While progress has been made, the progress has been slower than we would like. Coverage decisions are typically based on clinical proof of the efficacy of the product/test. The same information that Medicare has reviewed and felt is sufficient to improve net health outcomes has often not been enough to convince some of the private insurance companies. We have achieved reimbursement from Blue Cross/Blue Shield companies in approximately 12 states, including New York, New Jersey, Maryland, Delaware and Michigan. Blue Cross/Blue Shield companies are often dominant in their geographies, and, as such, we are highly focused on gaining reimbursement from them and other large, multi-state carriers such as Wellpoint and HCSC. Large national insurance companies are also very important to our efforts. Recently, Aetna issued a broad coverage policy for MTWA, also including the requirement for the spectral analysis method. Obtaining coverage from other large national insurers such as United and Cigna will be important to our ability to get our physicians paid.
SALES AND MARKETING
In early 2005, it became apparent to us that with very few private insurance companies paying for a MTWA test, and only local Medicare policies in place, often with limited coverage scope, we could not afford a national direct field sales effort. While covering most of the country enabled us to more efficiently follow-up customer leads, wherever they might be, the reality was that many of the territories were unproductive. As a result, we decided to eliminate much of the direct sales force. Now, with a broad National Coverage Determination by Medicare, a new coverage policy by Aetna, and hopefully more private carriers on the way, we will build out our direct sales force once again supported by a team of clinical specialists. We anticipate adding approximately three new territories per quarter utilizing insurance coverage to help guide the placement of these representatives.
CLINICAL STUDIES AND VALIDATION
Virtually every year, the clinical history for MTWA grows! In 2005, we announced that we had completed enrollment for The Refine Study from Calgary, Canada, The ABCD Study sponsored by St. Jude Medical, and The MASTER Study sponsored by Medtronic. Each of these three separate clinical studies is completing follow-up periods and should be available for presentation and/or publication in the fourth quarter of 2006 or first quarter of 2007. Each study, while unique, will continue to further define the role of MTWA in at-risk patient populations.
In addition to many presentations at medical meetings, MTWA has continued to benefit from numerous publications. In December 2005, multi-center, heart failure study was published under expedited review in the online edition of the Journal of the American College of Cardiology (JACC) . This 549-patient study led by Dr. Daniel Bloomfield of Columbia University concluded, “Amongst patients with heart disease and LVEF less than or equal to 40%, MTWA can identify not only a high-risk group, but also a low risk group unlikely to benefit from ICD prophylaxis.”
Just last month, also in JACC , was an original publication from Dr. Theodore Chow using MTWA in the private practice environment. The study representing 768 consecutive patients, with ischemic heart disease and LVEF less than or equal to 35%, concluded that MTWA is a strong and independent predictor of all-cause and arrhythmic mortality in patients with ischemic cardiomyopathy.
Two Meta analyses were also published in 2005, as well as a prestigious State of the Art paper in JACC . Great attention is being paid to our important test.
DIRECTIONS FOR 2006
Many of the initiatives that we have put into place have finally started to bear fruit. We have two main priorities in 2006. The first is to use the momentum created by the National Coverage Decision to reestablish our sales growth through the redeployment of a direct national sales force. To help make these territories productive, we will continue our efforts working with many different individuals and organizations to make further gains with the private insurance industry.
The recognition by CMS of our technology lays the foundation to re-approach the various private insurance carriers with both new clinical studies as well as the validation from Medicare’s analysis of our information.
Often it takes longer to achieve our goals than we would like it to. All of us at Cambridge Heart remain energized that success in within our sights. We will work to capitalize on the momentum and high profile as of late.
From all of us here at the company, I would like to express our appreciation for the continued support and encouragement.
Respectfully,
May 2, 2006 conference call discussing earnings of 1Q'06
Financial results
rev 1.4M up 41%
seq 330K up 30%
alternans sales 77% v 68% strong increase in demand
59% increase q-q
GM 67.8%v 62.5 last year
higher sales volume
loss 645K down 62%
includes 73k of non-cash options chgs
loss of 13c includes chhg in warrants
no further chgs from series b warrants, all been exercised
9.1 cash and equ
4.1cah in from warrants
329K cash burn excluding,
cash enough for well into 2007
plan to file shelf up to $20MM, up to 10% dilution
60.7 mm SOS
8.4 in warrants
Business:
Heightened profile bringing in warrants. 1Q felt long while waiting for CMS. Broad indication, importance of proprietary, solely from spectral analytic method d/t all the tests being done with their equip, no one can bill that unless using MWTA cpt 93025.
Aenta was first private payor, now with CMS decision, they have all been recontacted with the specifics. Will update on more provate payors.
3 reps per Q adding. buildling to 24 reps next year. Target medicare dense areas. Clinical specialists 1 per 2 sales reps. Unsolicited lead generation increasing d/t medicare decision.
ACC meeting with key presentations, often with standing room only. Paul Shannon presented risk stratification strategy which won first prize. "using ICD for only appropriate cndidates saves $$"
Also a presentation on the first large private population study vs all before on academic settings. "Strong and independant predictor".
Thoughts: 2 priorities
1)private insurance industry
2)growing sales force sensibly
Q&A
1)ray meyers emerging growth equity
detail on plans for reps. How many reps have hired? Review sales territories. 5 reps in 1Q. added 3 clinical, now adding 3 at a time. focusing on large medicare states. double sales force 2007, 24 territories.
Now fla texas california. 2 reps in those states. (vague)Ohio, NC, GA are the first swipe of terrirtoreis to ramp. NY, Boston Michican now. Now, there are 5 reps with one in process. hiring a 6th.
list in penetration the most? 30% or private payor coverage aetna 14.8 MM covered lives across the country. he's listing covered lives in various states.
2)lynn yappie total capital(?)
any change in insurers attitudes about reimbursement from the news about CMS? Too early to tell. Physicians will have a grass roots effect but it's too early to tell if insurers will adopt coverage voluntarily.
3)more reps last year?
yes. we pared down due to low sales. Reps were causing cash burn when they had a difficult time getting sales to Dr's in non-reimburseable testing
might have missed a question
4)don perzont bluegrass
gross marginfrom all of the products?
lead revenue will be heartwave, above 60%, sensors are above 70%
can you give a mix going forward? no too early to tell.
any change in intitial response from dr's on initial contact?
yes- increase in unsolicited leads. Standoffish Dr's from the past are now having the conversation
5)Larry with HMPC
metrics-placement of boxes and utilization of boxes?
now box sale 30K sensors $75. Box sales will drive revenue first.
strategy to place boxes or to sell sensors? Both can be maximized. Clinical specialist will increase util of sensors thru education
cash needs are well under control? yes shelf use is "just in case"
end of call
missed some because I forgot the forward pause revers commands but that's the gist. Any additional or corrections welcome.
yes I know my typing sucks! sorry for typos.
thalio
i was prepared to compose a lengthy response to your criticism, but it's just not worth my time.
You are wrong. Well, I may be a moron, but still, your post about the stock going ex-dividend today is simply not true.
have a nice day