Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Yea, and compare how much more it's worth than sltd.
amen!
Ok, if it's just easier to build a stock price by diluting your shares and acquiring companies, why doesn't every company do it. Remember, no one is going to sell a successful company without profiting. Everytime you buy a company, you are paying that owner a profit. So you can't just build a company by issuing shares to buy other companies, sooner or later you will run into problems with this method.
Stop saying that they are running a profit. Do they not have to pay back this money? Right now, based on the figures, they are in debt and it grows as fast as the share price rises because it was paid in shares. So if we hit a dollar, do you know how much money we will owe on this derivative liability? I really don't think you people understand this. The debt is not a fixed rate. So how is this company going to pay down that future liability, that's right, more retail investors will buy in to help pay down the debt. Do you now see why it's going to be difficult to get the price of the share up much higher?
It is hiding or tricking the investor. With this non transparent dilution method, how as an investor can I get a grasp on what this is worth if I don't even know the true amount of outstanding shares?
Why do they have to dilute in a non transparent way? If they want to grow, why not have second offerings of stock so that the entire process is transparent. Why is he doing it this way, what does he have to hide from investors?
You guys say you address the issues but you haven't. Is this not a board to talk about the good and the bad? I'm not saying the company is a scam. What I'm saying is that good ol Jim is using a model that compensates the original investors, not the retail. The insiders are killing it at our expense. This is a lot of risk, and they are blindly taking away those gains. If they were putting all this money back into the company, I would be fine, but they are not. You act like 100,000 or 200,000 at a time is nothing, but do you know how hard it is for an otc stock to attract 200,000 in investments? So I have a right to question what is going on with my money. It's my right, I should not be bashed.
That's exactly why I'm asking. Penny stocks have a habit of mugging their own investors. Sorry if I'm trying to make sure im not getting mugged.
But what happens if they don't have this technology? Where is the investor demand going to come from? Investors are going continue to buy into a company that takes their money and dilutes it to buy aquisitions and pay executives?
And look at the % of insider sales for each qt. The selling rises with each qt. You do realize that, right? Flushing sound as your money is blindly taken away from you through this dirty process. You guys keep acting like the derivative liability is nothing, that it is only so high because of the rise in share price. Do you even understand what you are saying? You act like the liability is nothing. So when those liabilities come due, you will just say they are nothing?
Can someone tell me why this company does not just have second offering? Why do they finance by diluting shares? No one has answered this and I continue to ask. I'm looking for transparency. Who decides the compensation levels for goals attained?
What I mean by this is that the CEO is in control of his own compensation. Guess what, he is highly compensated % wise if you compare it to the big boys. This means he being compensated by the retail investor. Meaning, it might look like you made gains today, but dilution over the course of the year will have destroyed your gains. It hasn't been that obvious yet, because of the growth of the stock. It's cap has increased significantly due to investors jumping on ship with the hype. What will happen to your share price once the investors stop lining up like lemmings? They will continue to dilute and the with no incoming demand on the shares, you will get slaughtered slowly but steadily.
You might want to add a big paycheck based on the company's fundamentals. You should be making a lot more, but they are diluting your money, aka non-transparent stealing. Why not have transparent funding through a second offering of stock? Why?
It's not profit yet. They owe money as of right now based on their liabilities. So don't say its profitable, when it's really not. We don't have to pay those liabilities back,
It was a joke since you guys think I'm some paid basher
That share price rose based on people on this board expecting killing #s. Isn't it obvious after the big fall that this is not coming back up to .30 anytime soon unless they release 3d cell information?
To get questions on a stock that I have no other way of getting information on. If I'm a paid basher, how come I only have 4 messages left to comment on today? Wouldn't I have a paid subscription?
I don't even know who Inorout is, but I'm thankful for him. You need some people to show you the other side of the story.
If anything, my posts have gotten rid of all the pumpers and day traders. Where is all-inn? Arent you happy he is gone since he realizes he can't make money off this now since the pumping is over.
You are crazy if you don't think the cell has been driving this price. You are lost.
It's funny. As soon as Inorout and I started bring up these red flags, the volume drys up. Interesting.
"I do believe we are about to hit an event horizon. Get ready to warp. "
A lot of growth this year was based on this cell. From the looks of it, they either got really lucky by barely spending anything on research or they are lying to attract investors. How do you only spend 500,000 in five years to come up with cutting edge technology. How does that even pay for the scientist working on it. I'm not really counting on this cell from what I see.
He's coming on here saying he expects something big. So what is it? Otherwise you are just pumping.
Did you see how much the share price has gone up in the past year? You think that will keep up? I'm asking a serious question. Not bashing. What news do you think will come that will maintain this growth?
Honestly, prob won't happen for a while. The cell is not coming out from the looks of it. Next upward swing should be when md officially joins. Boards are quiet again. Today's movement shows. The buyers and sellers are at a standstill.
How are there premarket moves being made?
I don't care where it came from. The guy brings up some good points. He's not bashing. He is bringing up question marks. Address the issues instead of attacking the messenger. He sees CEO pulling the same moves that I do. This CEO show not be in control of his own compensation if he is going to be selling shares at every opportunity he gets. Don't say that's not the truth because that is exactly what the CEO is doing, selling every share at every opportunity. I don't care if they are predetermined sales. Humans are greedy by nature, so why is he selling at every opportunity and not saving some for next year when they will be worth more? Huh? Why? Instead his greed shows that he selling it all and then reimbursing himself with more shares to sell. Wtf? Nothing wrong with that?
Do whatever you want with your own money but you people have to face some realities.
1. Stop comparing to FSLR, VSLR, SCTY. Its not a real comparison. You can #$%$ and cry about why they're valued higher while SLTD is a penny stock but all that means is that you have no idea on how to read financial statements. That's fine, not everyone has gone through finance courses or accounting but if the opportunity should arise, take the course. People are crying and wondering why there is a huge difference in share price between STLD and other companies but failed to understand that SLTD's total assets of $7m to VSLR $724m should be a dead give away that you're talking about two differently sized companies. I would even say you should check the total shares outstanding because even at this level, SLTD has more outstanding shares than VSLR does. Less shares = rise in share price.
2. SLTD is in NEGATIVE equity and not by a little bit either. Its one thing for shares to lose a bit of EPS each quarter. By owning SLTD, you literally OWE money for holding the share. With such low levels of liquidity ($1m), this company is going to start running into issues when their liabilities are due.
3. CEO is selling shares. I mean, there's really no way to defend this. If he's not happy with his current pay, that's up to him. Awarding himself and other executives shares so he can sell it on retail investors dime is just... disgusting.
4. SLTD has very very little capital. They're making these acquisitions by diluting the hell out of their shares. This company survived by diluting shares and having retail pick it up for quite some time now. You can tell by the fact that they've had 2 reverse splits to take all those diluted shares they had and combining them on a 1 for 10 split. Why is it so diluted? Well, again, CEO awards himself and executives shares, then sells it to get paid, retail picks it up. Less
From yahoo message board.
"I've said it before and I'll say it again.
I "hope" that things pick up for this company but I do not see anything above this current level of pricing. Even now, I think its a bit overvalued. You will NOT see anything close to $1 in valuation anytime soon. Trust me.
"During the nine months ended September 30, 2014, the Company did not generate significant revenues, incurred a net loss of $17,578,017 and cash provided in operations of $418,175.As of September 30, 2014, the Company had a working capital deficiency of $13,352,007 and a shareholders’ deficit of $10,681,156. These factors, among others raise substantial doubt about the Company’s ability to continue as a going concern. Management believes the existing shareholders and an increase in revenue will provide the additional cash needed to meet the Company’s obligations as they become due, and will allow the continued development of its core of business."
This is literally off their 10Q filing if you actually decided to read the damn thing. "Going concern" is an accounting term saying that its a business that will continue to operate. When its questioned whether a company will be able to sustain a going concern, you know they're in financial trouble. Less"
Fair enough. I'll stop with the questions.
No kidding. I'm just worried that they are not going to pull the rug out from underneath us. Why is this stock even experiencing growth? Due to a cell that we do not know anything about. That is the card. They don't have a cell and we are all fish out of water. So don't act like this stock can't be a pump and dump based on false expectations. The CEO selling us on a lot right now. If he can hit that's great. But you have to ask questions here.
Because the CEO continues to dump his shares. That's a FACT. If you think that's good, I have a bridge to nowhere that Jim built for me that I am selling. Interested? You can make excuses for why he is selling, but bottom line, he continues to sell his shares and reimburse himself with lots of more shares for hitting so called performance goals. Dude is getting paid a lot of money for a company just starting to generate revenue. Who is paying him, that would be us. We don't know the true amount of outstanding shares, so how the hell do we value this company. It's being financed behind the scenes. That's why I asked why he chooses to use this non-transparent financing method as opposed to a transparent second offering of shares to finance the aquisitions.
This is how I look at it, tell me if I'm wrong. IMO, this company is trying to expand with our money. Meaning their profit has not been generated over anything they have created. They just took our money and bought these companies out to show growth. Next year, they are trying to do the same thing. Two more companies on the investors dime. Why is the management team being compensated so well for basically being a real estate agent for these deals between the investor and acquisitions? 6 million shares is a lot.
I'm not paid. I don't know why you guys think like this. I'm seriously just asking questions that you should be asking. No idea why this is a bad thing. I've become public enemy #1 on here for asking questions.
Exactly, I don't want to get caught with my pants down. Thank you for bringing up serious questions instead of just thinking this is a guarantee. We all know nothing is a guarantee. Must always have your guard up. If the longs here can defend these questions we bring up, it just makes people feel that much more confident in the investment. We just don't want people that are close minded and only see one way. You have to be open minded.
The Dangers Of Share Dilution
By Matt Cavallaro
When a company issues additional shares, this reduces an existing investor's proportional ownership in that company. This often leads to a common problem called dilution. The end result is that the value of existing shares may take a hit. This is a risk of investing in stocks that investors must be aware of. Here we take a look at how dilution happens and how you can protect your portfolio.
TUTORIAL: Financial Ratio Tutorial
What Is Share Dilution?
Assume that a simple business has 10 shareholders, and that each shareholder owns one share, or 10% of the company. If each investor receives voting rights for company decisions based on share ownership, every shareholder has 10% control.
Suppose that the company then issues 10 new shares and that a single investor buys them all up. There are now 20 total shares outstanding, and the new investor owns 50% of the company. (Learn more in What is dilutive stock?)
Meanwhile, each original investor now owns just 5% of the company (1 share out of 20 outstanding), because their ownership has been diluted by the new shares.
There are several situations where shares become diluted. These include:
Conversion by holders of optionable securities.
Stock options granted to individuals, such as employees or board members, may be converted into common shares, boosting the total share count.
Secondary offerings where the firm is looking to raise additional capital.
A firm may looking to raise new capital to fund growth opportunities or to service existing debt may issue additional shares to raise the funds.
Offering new shares in exchange for acquisitions or services.
Instead of paying for an acquisition with shares, new shares might be offered to shareholders of the firm being purchased. For smaller businesses, new shares could be offered to individuals for services provided. For example, special counsel could be offered shares for representing the firm or in exchange for other legal services.
Warnings Signs Of Dilution
Because dilution can reduce the value of an individual investment, retail investors should be aware of warnings signs that may precede a potential share dilution. Basically, any emerging capital needs or growth opportunities may precipitate share dilution.
There are many scenarios in which a firm could require an equity capital infusion; funds may simply be needed to cover expenses. In a scenario where a firm does not have the capital to service current liabilities and the firm is hindered from issuing new debt due to covenants of existing debt, an equity offering of new shares may be necessary.
Growth opportunities are another indicator of a potential share dilution. Secondary offerings are commonly used to obtain investment capital that may be needed to fund large projects and new ventures.
Investors can be diluted by employees who have been granted options as well. Investors should be particularly mindful of companies that grant employees a large number of optionable securities. Executives and board members can influence the price of a stock dramatically if the number of shares upon conversion is significant compared with the total shares outstanding. (Learn more about employee stock options in our ESO Tutorial.)
If and when the individual chooses to exercise the options, common shareholders may be significantly diluted. Key personnel are often required to disclose in their contract when and how much of their optionable holdings are expected to be exercised.
http://www.investopedia.com/articles/stocks/11/dangers-of-stock-dilution.asp
Yea, but that is the thing. You didn't make a dime till you cash out. That share price can drop to nothing like it has a couple years ago. That's why I'm trying to make sure everything is ok here. The insiders can be sucking in investors for the past year by manipulating the share price, showing huge gains till they take it all away when enough people buy in. That cell doesn't happen, you can guarantee we are all screwed.
This guy makes some good points. Not bashing, just pointing out some question marks.
"That is the theory.
I personally am not impressed by the quarterly numbers as they stand now, particularly in view of the company's stated goal of growing by acquisition (using the convertible debt model outlined above).
I also am not convinced that profits from one subsidiary will not have to be spent on capital or operational expenses at another, which would stall earnings while outstanding shares continues to grow.
No one knows the future, and certainly solar power is a growth industry, but I don't feel comfortable with financing using convertible debt. If dilution is the financing path a company decides to take, I would rather see secondaries on the open market, where at least pps for newly issued shares would not be as deeply discounted as the shares SLTD has been issuing to settle its convertible notes. Less"
"More to the point, when a company offers a secondary, you see the dilution when it happens and pps reflects the new share count when the offering is announced.
With debt converted behind the scenes and reporting buried in the next 10-Q, buyers blithely pay what they believe is an undiluted pps when in fact the shares they buy are losing value and they do not even know it. Less"
I'm not advocating selling. What I want by asking these questions is an answer to calm my nerves for these red flags that im finding.
Fair enough. I will do what I did back in July and put my trust in this stock. I hope I don't get let down. I am very nervous.