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Do you realize that 0.28 with current share structure will price USGIF less than cash on hand they have? You really need to start talking in terms of market cap. "Lots of better companys out there to choose from...." I agree with this and own some of them.
0.28 pre-split is 1.40 after split and 2.1 after merger. Looks like you missed the boat already.
Anybody who follows USGIF insider trades reported by tmxmoney.com noticed those almost daily small sales (55K, 3.5K, 4K, etc.) for a couple of weeks before the annual results were posted. Not sure who was selling. Canadian Insider doesn't show any insiders sales, so in my conspiracy oriented mind it was some institution (Sprott) trying to keep the share price down... which is easy with our light trading Anyway, for the first time insiders buys were reported yesterday: 7 transactions, 11,800 shares at average buying price 1.183 CAD :
http://www.tmxmoney.com/HttpController?GetPage=SearchInsiderTrade&Language=en&Submit=Submit&QuerySymbol=usa&x=37&y=16
FYI.
PMX Communities Inc. (OTC:PMXO) Have a Maverick Idea
http://www.hotstocked.com/article/49592/pmx-communities-inc-otc-pmxo-have-a-maverick.html
Moody's assigns Hecla B1 CFR; outlook stable
"New York, April 02, 2013 -- Moody's Investors Service assigned a B1 corporate family rating and B1-PD probability of default rating to Hecla Mining Company ("Hecla"). At the same time, Moody's assigned a B2 rating to the company's proposed offering of senior unsecured notes due April 2021 and an SGL-2 Speculative Grade Liquidity Rating. The outlook is stable..."
Details: http://www.moodys.com/research/Moody%27s+assigns+Hecla+B1+CFR%3B+outlook+stable--PR_269302
I don't know how reliable this data is, but Yahoo Finance shows the pay for Mr. Steven M. Long (Sr. VP of Mine Operations) as 340K (probably Canadian dollars). I guess the CEO is paid more than this...
http://finance.yahoo.com/q/pr?s=USGIF
Didn't you just tell NYBob what to do? And yes, now I see you are not English teacher - different vocabulary.
Sorry Cork. I am a cheap member now :) and don't have PM privileges. This is a very good board with quality posters and interesting discussions. I don't post often but read literally every post here.
EBay. On related topic: I've tried to contact my buyer regarding completing transaction directly through PayPal (used to do this before). It seems eBay has significantly improved its email filtering software. I was unable to pass my email address to the buyer. Spaces, asterisks, "dot/at" tricks don't work anymore. Has anybody tried this recently? Any suggestions? Thanks.
Very insightful posts, but... can you turn off the "Bold" mode? It makes it hard to read and understand the deapness of your thought. Go PMXO!!!
I would agree, this is probably one of those "consultants" that accumulated millions of actually free shares for their promotional work. The problem with this: they are not interested in higher price. All they want is a big bidding volume that would allow them to unload shares. Just look at today's trades: a couple of "encouraging" buys at high ask, then massive dump at the bid:
Time Price Volume Exchange
15:07:44 0.051 796 OBB
15:07:44 0.051 24204 OBB
15:00:47 0.055 5796 OBB
14:59:05 0.06 5000 OBB
14:59:04 0.052 24204 OBB
14:53:39 0.06 10000 OBB
14:53:39 0.06 10000 OBB
14:52:49 0.06 15000 OBB
14:47:59 0.06 4900 OBB
14:38:45 0.05 60682 OBB
14:38:28 0.05 23116 OBB
14:37:48 0.0503 10000 OBB
13:03:45 0.08 6400 OBB
12:54:39 0.08 184 OBB
12:12:10 0.059 10000 OBB
11:42:15 0.059 4000 OBB
11:41:13 0.059 1000 OBB
11:25:22 0.055 20000 OBB
11:23:20 0.059 5000 OBB
11:00:48 0.059 10000 OBB
10:52:49 0.06 2150 OBB
10:52:44 0.065 15300 OBB
09:30:10 0.09 500 OBB
And don't be surprised to see Sprott as one of these "guys". Why not? It would be pretty smart - first dump on them (us) accumulated debt and mine that requires significant cash investments, then "help" them (us) with the loan to resolve those financial problems.
Maybe we can sell them Drumlummon Mine for $50 mln?
I just find it a little disingenuous to cite the entire article but drop the last paragraph that tells about the source. I personally was under impression that the World has finally discovered PMXO... until I saw a disclosure. There is nothing wrong with steps taken by the company to promote its business. Of course, if it was an independent analysis (how it looked from that post) it would be even more powerful. IMO.
Disclosure: The subject security (PMXO) is a client of Emerging Growth, LLC. On 2/1/2013 PMX Communities Inc. paid $2,500 in cash to Emerging Growth, LLC for this kind of Marketing Services.
http://secfilings.com/Disclaimer.aspx
"On February 15, 2013, the registrant dismissed Lake & Associates CPA’s LLC (“Lake”) of Boca Raton, Florida, as their registered independent public accountant. On the same day, the registrant engaged Liggett, Vogt & Webb, P.A. (“Liggett”) as its new registered independent public accountant."
(See PMXO filings 8-K and 8-K/A from 2/20/2013 and 2/22/2013)
So, PMXO actually fired the company's accountant (with some vague mentioning of their handling of 2010 and 2011 financial reports) just several weeks before the annual report is due. Kind of strange...
Just noticed new sign "Amended Filing" attached to the management December options transactions:
http://canadianinsider.com/node/7?menu_tickersearch=usa
I wonder what exactly was modified in those filings? Hopefully it's not the exercise price (1.8+) which may look too high to our beloved leaders now.
Premiums on those coins are about 15-20% (which is high, I never pay more than 5% for bullion items), but never 50-60% like you know where. :)
Selling close to spot price is not a purpose. Silver spot price moves violently in both directions. The problem is to sell higher than you bought it.
The cheapest 1oz silver bullion at the moment:
http://www.providentmetals.com/ohio-precious-metals-opm-1-oz-999-fine-silver-bullion-round-iso-9001.html
Do you see anything better?
US Silver Corp Now Covered by Analysts at Octagon Capital (USA)
Octagon Capital assumed coverage on shares of US Silver Corp (CVE: USA) in a report released on Wednesday. The firm issued a buy rating and a $2.80 target price on the stock.
US Silver Corp traded down 2.73% on Wednesday, hitting $1.78. US Silver Corp has a 52-week low of $1.10 and a 52-week high of $2.74. The stock’s 50-day moving average is currently $1.9.
U.S. Silver & Gold Inc., formerly U.S. Silver Corporation, is principally engaged in the production, exploration and development of silver resources in northern Idaho, United States.
http://www.americanbankingnews.com/2013/02/13/us-silver-corp-now-covered-by-octagon-capital-usa/
http://www.jagsreport.com/2013/02/us-silver-corp-now-covered-by-analysts-at-octagon-capital-usa/
http://www.i3investor.com/servlets/fdnews/121185.jsp
Congratulations. You moved SPRL to the #6 in iHUB breakout boards. Keep working.
Actually iHub pump crews can revive any dead stock for a short rally. But this one (SPRL) was played so many times that probably no fools left to play. Besides, this attempt looks very amateurish - a couple of lonely "enthusiasts" can't even sell pre-loaded shares because nobody wants to help them so far.
OTC Markets has discontinued the display of quotes on www.otcmarkets.com for this security because it has been labeled Caveat Emptor (Buyer Beware) and because adequate current information has not been made available by the issuer of the securities. It has been labeled Caveat Emptor for one of the following reasons:
Questionable Promotion — The security is being promoted to the public, but adequate current information about the issuer has not been made available to the public.
Spam — The security is the subject of spam promotion having the effect of encouraging trading of the issuer's securities.
Investigation of Fraud — There is a known investigation of fraudulent activity involving the company, its securities or insiders.
Suspension/Halt — A Regulatory Authority has halted or suspended trading for public interest concerns (i.e. not a news or earning halt).
Disruptive Corporate Actions — The security or issuer is the subject of corporate actions, such as reverse mergers or serial stocks splits and name changes, without adequate current information being publicly available.
Unsolicited Quotes — The security has only been quoted on an unsolicited basis since it entered the public markets and the issuer has not made adequate current information available to the public.
Other Public Interest Concern — There is, in OTC Markets' view, a public interest concern.
Consequently, OTC Markets has removed the quotes from this website until adequate current information is made available by the issuer pursuant to the OTC Pink Basic Disclosure Guidelines (DOC) and until OTC Markets believes there is no longer a public interest concern. Investors are encouraged to use care and due diligence in their investment decisions. Please read our Investor Protection page for more information.
http://www.otcmarkets.com/stock/SPRL/quote
Here my suggestions to PMXO management (assuming they read this board):
1. Cancel "Money back guarantee" policy. No solid dealer offers this kind of privilege. Price of gold is very volatile and can change dramatically during 14-day period. The company will get a lot of returns. Let investors buy items at their own risk or, at least, introduce 5% "processing fee" on returned items.
2. I understand that at this point you have to sell gold products with significant premium (which can be reduced later, when big network of gold ATMs is installed). To justify these premiums the company needs to promote not just vending machines, but gold bars/coins that are sold. Pay more attention to introducing to the public high quality gold products. Investors need to realize that those are unique, highly collectible items produced by respectable mint, and they can't buy them anywhere else:
a. Design a special page on company's website with pictures of items and detailed description.
b. If you can't afford selling these items online (at higher than ATM prices, of course) at least open eBay account where people around the World can see them and buy (again at higher premium). That's how many PM startups made their first steps. Even APMEX is now trading on eBAY. As a result, people will get familiar with your product, start calling their relatives and friends in Florida asking to buy a couple of items, beg you to install machines in their area.
3. Unfortunately, selling gold products, even through beautiful terminals, is not very exciting business. OTOH, PMX Mining is the branch that can move the stock price. It would be nice to publish some information about negotiations with potential JV partners that could be particularly interested in PMX future distribution chain.
Just random thoughts...
Featured in "The OTC Investor" yesterday:
"Capitalize on the Growing Retail Appetite for Gold...
Bringing Gold Retail to Market
PMX Communities Inc. is an incubator for the precious metals and mining industries, with a subsidiary called PMX Gold Bullion Sales Inc. that manufactures and sells custom gold dispensing terminals designed for retail markets in the U.S. Produced in Illinois via an exclusive manufacturing agreement, these machines are the first of their kind, creating an interesting opportunity.
Recently, the company opened its first such credit card operated gold vending machine that dispenses custom coins certified by a mint in the Town Center Mall in Boca Raton. With prices ranging from $99 to $799, the machine regularly attracts crowds and reportedly sees approximately 20 customers per day since it was installed in the mall.
Revenues from this machine is expected to be seen in this quarter’s financial results, while gross margins are typically in the 20% to 25% range for gold sales. With demand appearing to be quite robust, the company plans to place additional already-manufactured machines into retail markets throughout the United States in a prudent manner.
Potential Investment Opportunity
Investors looking for a play outside of traditional gold ETFs and mining companies may want to consider PMX Communities Inc. (OTCBB: PMXO). With a market capitalization of just $5.3 million, the company could prove to be a bargain, if its gold bullion retail strategy pays off as suggested by its early successes in Boca Raton, Florida."
http://theotcinvestor.com/capitalize-on-the-growing-retail-appetite-for-gold-3462/
Actually, all-time low was 0.04 (last May).
Today's trades:
15:27:57 0.06 4000 OBB
15:27:09 0.06 5000 OBB
15:26:02 0.06 5000 OBB
13:33:59 0.06 10000 OBB
13:33:57 0.06 60000 OBB
13:33:47 0.062 20000 OBB
Australian amateur prospector finds massive gold nugget
http://www.bbc.co.uk/news/world-asia-21055206
" Item 2. Unregistered Sales Of Equity Securities and Use of Proceeds
On May 24, 2012, the registrant issued 1,000,000 shares of stock to a consultant for marketing services. The stock had a market value of $60,000 at the date of issuance and this was charged to the registrant’s operations in the 2nd quarter. "
(from latest 10Q)
the rest of the shares could be awarded or bought by consultant earlier or later (as "units", for example). The point is that WallStreetSearch (= consultant) owns millions of shares that they received earlier "for marketing services". This particular lot of 1 mln shares was for share price of 0.06. They may want to cash them now and this is an obvious "conflict of interest" by their own words.
Edit: From 2011 10K:
"On December 6, 2010 the Company issued 50,000 shares of common stock in exchange for services to a consultant for a value of $3,000... In 2011, the Company issued 13,050,000 shares for services representing $1,054,960, which was reflected on the 2011 Statement of Operations."
Actually, this "Specific Compensation Disclosure" from http://www.wallstreetprofitsearch.com/important/
may explain the recent selling pressure:
"... PMX has not compensated Wall Street Profit Search (WSPS) or any other individual or entity for the production of the newsletter or other communications as detailed above, and has neither endorsed nor been involved in its production. Wall Street Profit Search is scheduled to be compensated up to $50,000.00 and reimbursed for all expenses associated with publishing and disseminating of the November newsletter by a third party, non-affiliated shareholder of PMX during the 3 month term that this newsletter may be in circulation. The owner of WSPS advises that it has previously performed consulting services unrelated to Wall Street Profit Search for and on behalf of PMX and was compensated for those services, but is not now currently employed by or under any contract to perform consulting services for PMX either now or in the future, and is not receiving any further compensation from PMX for any other services. The owner of WSPS claims beneficial ownership of approximately 2.5 million shares of PMX stock previously acquired unrelated to the production of this newsletter. Some or all of these shares, shares owned by the third party non-affiliate shareholder contracted to pay WSPS and/or shares owned by other present shareholders of PMX may be sold at any time without notice (including during the term that this newsletter may be circulated or any period thereafter). This compensation and share ownership constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled company. Because of this conflict, individuals are strongly encouraged to not use this newsletter as the basis for any investment decision."
You are probably right about share structure, and the management states the same: "There is no emergency on funding and we are in fine shape with our investors." We will see 10K soon... Still, it does look like someone has been selling a bunch of shares during this "PRs period". One question that I have: Why did they go public and get listed on OTC in the first place? Many well known companies in PMX business are very successful staying private. And, assuming that this was their way to get initial financing, why would they need to share the success with retail investors now, when they are on track to success, and everything is fine with financing sources? Is not this in insiders best interest to take the company and get rid of unnecessary partners while the share price is low?
...and today's trading:
15:51:28 0.075 2000 OBB
15:51:24 0.075 23000 OBB
14:07:41 0.08 501 OBB
13:09:24 0.08 500 OBB
Yesterday's PMXO Time & Sales:
15:24:06 0.0701 10000 OBB
14:54:04 0.085 10000 OBB
14:52:05 0.085 7000 OBB
13:48:20 0.085 1500 OBB
13:07:45 0.085 1000 OBB
09:46:10 0.075 1200 OBB
There is a link "Report TOS Violation" at the bottom of each message. Don't hesitate to use it if you find a post to be offensive. You don't need board moderators to do this, it's handled by iHUB admin.
What I was saying is that after initial spike there are usually less buyers willing to pay high premium. I can find you some links to articles about Vegas or Abu Dhabi practice but you can always call it irrelevant to our "special" case. So, I won't even try. Going to work now...
BTW, I also don't like that 14 days return policy that PMXO provides. Of course, it's very kind and good for customers but that's not how it works in PM business. They risk to face a lot of returns if the price of gold suddenly drops dramatically, or if buyers realize that being drunk or overexcited they overpaid for the items. :)
Hi one4theroad. Nice to see you here. :) Actually your post (and recent foodcourt's responses) was kind of messages I'm trying to digest:
" prototype: $230k roughly for less than 3 months";
"1 machine $50,000.00, $100,000 in sales monthly(based on machine in 2010), %5 premium(overhead, packaging etc,that was the figure PMXO stated in 2010), leasing the spot in the mall, etc. A machine could be profitable(PAID FOR !) within 24 months.";
"After 40 the revenue should be enough to service debt, pay salaries, and then ka-ching...profit."
I tend to agree with the last statement: the company becomes profitable after 40 ATMs are installed. Not that I checked the numbers, but this is just in line with numbers that you can find researching "vending machine" business. The average number of machines to get profitable is around 15. Of course, everything depends on location. That's why first US machines were installed in Las Vegas and Atlantic City, where people spend money "for fun" and buy "stuff" w/o looking at the price tag. The World practice shows that after initial spike in sales "of curiosity" the numbers go down, so PMXO will have to lower premiums to keep sales going. So far, looking into recent 10Q, I see net sales in 9 months of 2011 are $157,200 and cost of sales is $162,140. And this doesn't include research, etc.
Another thing that I leave out of equation: good business vs. good stock. As a stock PMXO can rally hard on good news, but the success of start-up businesses like this is often built on bones of the first generation of investors. For example, current 71 mln shares outstanding vs. 100 mln authorized looks kind of shaky to me. Anyway, as you understand I am watching this stock closely and may join you sometime in future. :)
Here is an example of online price:
http://www.monarchpreciousmetals.com/index.php?page=shop.product_details&flypage=flypage.tpl&product_id=37&category_id=24&option=com_virtuemart&Itemid=53
Of course, they can significantly lower the premium when they have a big network of ATMs. But reading the users comments on this kind of business around the World (Europe, China, Japan, etc.)... buyers actually complain about high premiums even when it's 20% (like in Great Britain) not 60%. Besides, as I see from the press, big purchases require scanning buyers ID to avoid money laundering. Don't know how it's handled by PMXO. It's IRS requirement to report cash purchases more than $10,000. How will the company comply if I buy dozens of small bars and pay more than that? They would need my SSN for IRS reporting. So, there are a lot of questions, but it's very interesting to watch for sure.
IMO: To make this business profitable they would need to combine ATM sales with some kind of derivatives business (hedge the inventory, buy during the dips and sell during the rallies, etc.) Of course, this will add a lot of risk too.
As far as the premium well I'm afraid your going to be hard pressed to find it differently anyplace else
$99 for 1 G bar, $189 for 2 G bar... It's not outrageous but it's a highest level of "Buy it now" offers on eBay which rare accepted (mostly by novices or gift seekers who ignore the price). You can easily buy beautiful 1G coins/bars at $65-70 now.
I really like the idea of gold vending machines and I like reading this board and the way Navyvet moderates it, but... nobody discusses the economic side of this business. I personally doubt that PMXO will be profitable... ever. This is very tough business even if you sell chocolate bars. IMO.
Was not the first one launched in 2010?
Can you tell us what kind of bar you bought (weight and brand) and what price did you pay? Thanks.
Edit: Actually, I am wondering what kind of premium over spot they charge.
"They are trying to gain voting control of this company with themselves and the insiders like Sprott that are no doubt adding to their share count ,quietly."
USGIF ownership:
http://investors.morningstar.com/ownership/shareholders-overview.html?t=USGIF®ion=USA&culture=en-US
Heartland Advisors sold 1 mln shares. IPConcept (Luxemburg) S.A. bought 3.5 mln shares. Sprott probably moved his position from one pocket to another (currently owns ~ 8.5 mln). Total ownership by funds and institutions is 29+%. Of course, the data could be outdated, but even now insiders and big institutions probably have enough votes to overturn any shareholders revolt that requires 2/3 voting shares.