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This is what I said; " Also, they have covered their bases as far as future production costs go."
kezzek, is that you buying all those shares at the ask?
:o)
I've seen nothing to indicate Homedics is paying all manufacturing costs, nor have I seen anything saying they are splitting profits 50/50. In fact, based on the 10K, it appears SPO is bearing most of the manufacturing costs and that is a drag on production.
I didn't say Homedics was paying anything. Perhaps you should read more. The following is from the 10Q:
In addition to the sports watch, we are in the final stages of developing an innovative wellness bracelet that measures the number of activities and calories burned by an individual performs on a given day. The bracelet, designed for both children and adults, features a display function to continuously measure the number of daily activities against preset recommended goals. SPO has designed and patented the functionality of the bracelet to be an affordable, simple-to-use, fashion accessory to encourage users to increase their mobility and overall wellness and to wear it with pride. We anticipate that the product should become commercially available during 2013. In December 2011, we signed an exclusive agreement with a large private time-piece manufacture to manufacture and sell our wellness bracelet to department stores, mid-tier mass-market and food & drug stores throughout North America. The agreement specifies that the manufacturer will finance all costs associated with bringing the wellness bracelet to the marketplace. We and the manufacturer have agreed to divide the profit margin from the sale of the wellness bracelet net of all costs associated with manufacturing the wellness.
I agree, it will only get better. We are starting to get bid support which will drive SPOM much higher. This low floater has the potential to explode at any given moment. Volume is ratcheting up on a daily basis. SPOM is still way undervalued and a great buy.
Flippers, LOL, LOL..
Every stock has flippers, it's called day trading. That said, what we have here is accumulation, smart people buying a very low float stock that management is smart enough to NOT borrow from banks and have to secure the loan with skin or your first born. Management has borrowed small amounts from personal share holders that know way more about this company than any of us. The total amount of money borrowed by the company from those four share holders that keeps getting posted here over and over is only $130K, not hundreds of thousands or millions which would constitute a problem. I wouldn't have some money parked here if I was worried about so-called death spirals. No such thing happening here. Our authorized shares are still 100 million. Last year, (all of 2012) the company only diluted about 18 million shares total.
This is from the latest 10K:
During the year ended December 31, 2012, we issued 18,078,234 shares of its common stock upon conversion of $94,000 in principal and accrued interest of convertible promissory notes.
As of all of 2012, they only diluted 18 million shares. That was before they had any revenue. Now they are starting produce revenue and are about to deliver new products. Also, they have covered their bases as far as future production costs go. The manufacturer of their current product has assumed all expenses to build and ship the product splitting profits (after costs) 50%. The company has reduced its expenditures to a minimum allotting time to build its business and generate new revenue.
Death spirals, LOL, LOL!!!!!
http://ih.advfn.com/p.php?pid=trades&symbol=SPOM
Death spirals, LOL,LOL,LOL!!!!!!
Boy they are really killing us. All we needed was some bid support.
Death spirals, LOL,LOL,LOL!!!!!!
Hey fellow SPOM'ers, don't you just hate how those dern death spirals have just killed us this week! So glad we have been warned so thoroughly!
:o)
Should be a nickel already. It would be if people did solid DD instead of listening to baseless gossip.
many green SPOM days ahead:)
Boy, those death spirals have been just killing us last couple days, haven't they... LOL!! :o)
Wow, that message must have hit home. Nice buys today.
I think you should just go buy some subpenny now and leave SPOM to the believers.
LOL, again, those are not death spirals. The total amount is only $130,000, not the millions associated with death spirals. If you converted $130,000 at .0183 (the average closing price last 10 days) that would only convert 7,104,000 shares. Hardly death spirals. Again, only one hundred thirty thousand dollars total. These are four individual investors not likely able to short the stock to drive the price down. Even if they could, they do not have enough fire power to hurt this stock for more than about a day or so.
This is from the latest 10K:
During the year ended December 31, 2012, we issued 18,078,234 shares of its common stock upon conversion of $94,000 in principal and accrued interest of convertible promissory notes.
As of all of 2012, they only diluted 18 million shares. That was before they had any revenue. Now they are starting produce revenue and are about to deliver new products. Also, they have covered their bases as far as future production costs go. The manufacturer of their current product has assumed all expenses to build and ship the product splitting profits (after costs) 50%. The company has reduced its expenditures to a minimum allotting time to build its business and generate new revenue.
Your claims are baseless, trivial and unsubstantiated.
Why don't you copy and paste all those supposed death spirals, and don't post the same two you have been posting for months. Even they weren't death spirals, just two small investors converting on a 50K and a 32.5K loan. Those have been converted already.
Death spirals entail shorting the stock driving the price down and then covering after converting large amounts due to the lower price. That kind of action is only associated with large loans and huge conversions with a known death spiral finance company's like Cornell. There's none of that going on here. You have posted the same two legal conversions over and over again with absolutely no proof of massive shorting or tens of millions being added to the float. The next conversion don't happen until .04 cents. The info you have been posting is unsubstantiated and repetitive.
No death spirals here, the share count proves that. Only 11.4 million shares converted last Q, we expected about that many. The death spiral thing is a plant to cause unrest. It's not working.
As stated in the pr April 11 2013,Company has a backlog of firm orders of approximately $500,000 for planned shipments through 2013. The Company anticipates this backlog to increase during fiscal year 2013 as sales continue to grow in the United States and in international markets. This is primarily attributed to the expanded distribution of its private-labeled pulse oximeter known as the HoMedics Deluxe Pulse Oximeter for non-medical consumer wellness markets.
EDITED
That backlog for $500,000 is for one shelf item only, the Deluxe Pulse Oximeter. That number constitutes known or existing orders only. That does not include any sales the date of the PR and forward. Also, that number will skyrocket when other items are released as initial order sales are always quite large to stock store shelves. This is just the beginning.
I don't agree that there is a rash of death spiral financing here. The company is not borrowing millions from a death spiral financing company that can make deals with M&M's to short the stock (at a low cost) and cover millions of shorted shares when they convert at a low price caused by shorting the stock and driving the price down. Individual investors are loaning the company $50K or less. They probably cannot or will not short the stock due to the high cost (usually $2 a share margin on a penny stock plus the bid price) so there is no death spiral crap going on here. Even if one person did short the stock it would be a small amount.
The problem we have here is weak bid support, not death spiral anything. All one has to do is look at the 10K and see that only 11.4 million shares were converted last Q. That said, we all knew conversions were taking place and I had guessed about 8 million conversions were hitting the float and I posted so on this board. If shady financing was taking place here, we would see a share base way above the current A/S of 100 million.
Everything that was to be converted under .04 cents has already been converted. If there is any left they are few.
Sales are just starting on one product. This is like lap one of the Daytona 500, stay tuned.
I wish they would promote the stock. This is different than most penny stocks. A legitimate promo of this stock would bring awareness and price explosion, they wouldn't even have to lie.
:o)
They only converted 11.456 million last Q. They have no conversions exercisable until .04 cents the way I read the 10K. If they do raise the authorized base, I expect to see no more than 150 million. They are not greedy, they are only trying to stay afloat until they break even which could be sooner than people think once new products hit the market.
During 2012, we raised $356,000 from the private placement of our convertible promissory notes and other promissory notes. These notes are scheduled to mature between February 2013 and September 2013.
So far the company has been successful in extending some notes that are due. Also, any converted shares are not exercisable until .04 cents the way I read the 10K.
I agree that the company is financially weak. But, they have had success in funding from share holders that must see value since they are privy to info we are not. Now that the company is selling product, revenue will continue to increase easing the burden. I see this company increasing sales and growing into a strong financially stable company in time. They have valuable patents and viable future products. I still think this company is undervalued even fully diluted at 100 million shares which would be a 1.29 million cap which is( with 2013 sales estimates) not much more than one times sales by end of 2013. This stock is cheap!
The 11.46 million shares that were converted are a little more than I expected. I expected about 8 million. That 11.46 million came due and was converted so that should cover dilution for the immediate future. I see no other conversions exercisable till 4 cents. The company itself sold no shares last Q. All shares diluted were from planned exercisable options. The company is not a dilution hog and does not sell directly into the market like so many other pennies do. They have had the same 100 million authorized share base since 2005 if I remember correctly.
The company has estimated sales of current product at 500K for 2013. That does not reflect any new orders, orders from new foreign markets or increased sales in the US. In other words, that estimate is only for what orders are already in the pipe. Sales and orders could increase significantly. Also, estimates do not include sales of new products.
I ask you the same question I asked Strong. Am I missing something? Why is everyone looking for the 10K? When the company filed the NT 10K they stated the revenue for all of 2012 was approximately $316,000. That was for the initial shipment of product. What else is the 10K gonna show that will excite us? What am I missing?
I'm looking for the next 10Q that show's revenues for Q-1 Jan through March. That's what will either move or kill this stock.
Looks like the 10K is taking just as long as their last 2 10K's...No surprise and very excited it'll be out by Monday's close!!
Am I missing something? Why is everyone looking for the 10K? When the company filed the NT 10K they stated the revenue for all of 2012 was approximately $316,000. That was for the initial shipment of product. What else is the 10K gonna show that will excite us?
I'm looking for the next 10Q that show's revenues for Q-1 Jan through March. That's what will either move or kill this stock.
10K to ba late..
http://ih.advfn.com/p.php?pid=nmona&article=56971114
You should buy more, it would change how you see things.
Another thing that should be pointed out to you is the fact that this stock would still be highly undervalued even if fully diluted at 100 million based on revenue and profit potential going forward. They have done everything, and I mean everything right. Sales of their current product is in the hands of a professional and well connected distribution system. Costs are fixed on the manufacturing side and new products are just around the corner. Revenue will steadily increase as time passes and growth accelerates. Wouldn't want to be short this stock.
You have been repeating the same thing over and over again, but the share price has remained stable for weeks now. Death spirals cause just that, death to share price as massive shares are added to the float and the authorized share base explodes. That is not happening here. One must remember that we are not dealing with banks or finance companies only looking to profit at any cost. We are dealing with other share holders that may have an interest in seeing the company succeed. Your arguments are baseless considering the authorized has remained at 100 million. There is no proof or even any evidence of death spirals here.
There was evidence of some conversions when VERT was on the ask a while back, but those have since dried up indicating those conversions have been cashed in. Those conversions would cover the 85K you continuously post on this board.
Have a nice Easter, I'm heading to to the bar to watch NCAA kids play.
If this company had a problem with death spiral financing, it would be trading double or triple 0's by now. The authorized share base would have been upped several times and daily trading volume would likely be in the millions, yet it remains at 100 million authorized. The financing has been by individual share holders and not banks. The two conversions or potential conversions have been rather small, under 50K each. More than likely, these individuals have a stake in seeing the company succeed. They are probably privy to info we are not. The company has been smart in their financing. No banks, no pressure.
The potential for this company to succeed is increasing daily. Although I am not quite as optimistic as some as far as the 10K showing massive revenues this past Q, I think going forward will show nice revenue growth as sales increase, potentially world wide. New products will spike revenue and this company's small debt load will be paid down over time. We (longs) are lucky to be in such a small float stock with such huge potential. Looking forward to the financials and the squirming the shorts will be doing. I don't think there is a very big short position in this stock but it won't take much to drive it way up. It is pretty thin and a two million share trading day could easily double the price.
So many? Wow..
The problem is liquidity. There are no bidders, which means there are no believers. I've seen this many times in my trading days. Sooner or later this will find buyers. In the mean time, there is no worry on my part. Eventually value and price will converge.
Right now though, a Fib .618 retracement brings us back to .0165.
If they converted everything on the books, they would still be under the current 100 million authorized, way under. The company is undervalued fully diluted. Our current market cap of 2.6 million FULLY DILUTED is an absolute joke, it should be several times higher and it eventually will be. As of the latest count, our cap is probably only about 1.56 million based on about 60 million outstanding shares. There is no toxic financing here.
With the product on shelves nation wide and about to go global with the recent HoMedics partnership and new products on the way, this stock can only go up.
The $32,500 is already converted. The $50,000 when converted will add 4,664,179 shares to the outstanding with an average conversion price of .01072 if my math is correct. They too may have already been converted, or the investor may decide to hold his shares like I and others are. No other conversions are due until .04 cents and above. If you are worried about an additional 4.6 million shares being converted, then you should buy Microsoft.
Like I said, even fully diluted, this stock is worth way more than we are trading at currently.
trying to get in a cheaper
Hello droopy, I think a lot of people are afraid of the debt here because they have not ran the numbers. The debt is far from overwhelming and is staged to cause the least amount of damage to the share structure.
One must look at what the debt holders saw and signed. If they were willing to convert at .04, then .08 and finally at .15 cents, what do they know that we don't? They have inside knowledge we don't.
As this stock moves up, more and more will jump aboard. It's all good.
kezzek, I don't know if you can call it toxic financing. Debt holders are share holders and want the same as we do.
The amount of near-term debt is low. They just converted a $32,500 loan to shares with the original maturity date of the note being July 25, 2013. Commencing January 25, 2013, the Investor was entitled to convert all or any part of the outstanding and unpaid principal amount on the note, as well as the interest accrued, into shares of common stock at a conversion rate equal to 55% of the average of the five lowest closing sale prices during the ten days preceding the conversion date. That is what VERT was doing the last month or so. I calculated 4 to 5 million shares were converted.
As far as any other debt, the next conversion doesn't happen until 4 cents as follows:
On August 23, 2012, we entered into a convertible note agreement with an investor pursuant to which we received $50,000. The original maturity date of the note is August 23, 2013 and are convertible into our common stock at a conversion rate of $0.04 per share. If converted, that equals only 1,250,000 total shares. Usually about one day's trading.
That's not that bad considering the up-tic in revenue this company is seeing. According to the 10Q, all other conversions are at .08 cents and above. By then, the company may have sales that puts those conversions at much less risk to share holders.
Debt for any company is not good just like debt for any consumer is not a good thing either. But, if a person can pay his bills, the debt isn't so bad and eventually is paid off. This company is one of the few pink or OTC company's that has real growing sales with product already on shelves, real patents and new products coming to market that will continue to boost sales. They just signed a world-wide contract with HoMedics for product distribution.
The share structure here is investor friendly. The authorized is only 100 million. But, fully diluted this company is worth more than we are trading at right now. Also, if you calculate all conversions due above .04, .08 and .15 cents, you will see that they do not even come close to eating up the authorized shares of 100 million. At .04 cents and above, the conversions are eaten up fast.
All those worried about the conversions should read the latest 10Q and do the math. You will see that those conversions do not threaten us, especially short-term. When the stock approaches .08 cents, then do the math. Even then, .08 cents will eat them up fast.
Read the 10Q, everything is there.
Is he converting notes?
Yes, but there shouldn't be a whole lot left. Most conversions are above 4 cents, sitting at 4, 8 and 15 cents.
SPOM set up for a sweet run.....looking for conformation today
The chart really has no bearing on what this stock is doing, or about to do. There's no question it is undervalued and will eventually move up. That said, VERT is the in command. As soon as he shows up, the buying stops. Until we filter through his debris, this is what we will continue to get. At least VERT is not throwing shares at us like confetti, he is using some restraint.
With only 100 million authorized, this is undervalued even fully diluted. I don't think there will be tons more from VERT, I calculated a little over 4 million a couple weeks back. We'll see..
It's just disappointing that someone would throw a thousand shares at us to make the chart look bad. Again though, it's only a thousand shares. I agree with you, up tomorrow.
Wow, can you believe that? I guess someone was really intent on breaking our chart. Whatever though, this has to run eventually, too much value not to.
That's what I have too, .014 bid showing. Hope someone slaps, otherwise the chart will look like crap.
No biggy though, bid/ask is still .014/.0148. I bet someone slaps the ask before days end.
Fat finger or bad tick.