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I keep hearing about the "buyout" potential of this company. As of now it has too small a client base for anyone to buy them for their clients. The products have not differentiated themselves sufficiently to make them a good add to another company's product mix. The volume of sales is too small to add to the bottom line of a potential suitor. As of today, there is no reason that Iceweb would be on ther radar screen of a larger company.
I spoke to John three years ago at which time he stated that his objective was to build the company and sell it in the range of $5 a share. During his last conference call he also said he wants to prepare the company to sell with the statement "you do the math." In my opinion, such statements are not helpful. He should be expousing the desire to build a great company with unique products that meet a growing market need. If he is successful, the company will sell itself.
I don't think I would look seriously at a product from a company that doesn't plan too be around in five years. The focus - and rhetoric - from management hurts the company's business plan and sales prospects. They are doing some good things with product build-outs, but need to quit the drumbeat of building the company solely to sell it for a profit.
I heard that there will less dilution as a result of the merger cancelling. They have 19 dedicated software engineers and their own patented programs. Having cash on hand may help sales to clients who were concerned about the longevity of the company. And a $20 million annual revenue rate is the level that will keep them viable - and they believe it is an attainable goal. It wasn't all bad for a small player that turned Inline into a larger enterprise.
Maybe Iceweb can get on IBM's radar screen in a couple of years when and if they gain market share. Right now, IBM can manufacture Iceweb-like products (in the volume Iceweb is selling theirs) from their spare parts bin.
I agree, and I have been trying to figure out whether the government (our primary customer) spending cuts will help or hurt Iceweb. If the cuts are significant, the government spending may come to a screeching halt. If the cuts are something less, government customers who need the capability embodied in Iceweb products may opt for the less expensive Iceweb solution rather than going to other, more expensive companies. I am just a little spooked at this point. My friends still in uniform (I'm retired now) at the Pentagon opine that Panetta is presiding over the gutting of our military. That does not bode well for future spending. For now I'm just holding my breath (and my shares).
I hope that's so, but I have been fooled before by companies that made great promises, issued preferred shares to insiders as part of the merger, and then converted those preferred shares to large numbers of common shares which leave the existing shareholders outvoted. Forgive my cynicism, but the stock market remains a rigged game. Nonetheless, I am holding long just in case this one works out.
While there is great potential for the company and its products, the stock remains low because there is no definition to the deal and how it will affect current shareholders. Will the company remain public or will it be taken private? If it goes private, how will the shareholders be compensated - or better yet, will they be compensated at all? Never underestimate the ability of companies and their financial advisors to squeeze value out of a promising company and fend off the shareholders (been there, been taken for a ride). We may not know the details until much later in the year because of the slow moving wheels of the merger process. Meanwhile, we have to keep our fingers crossed that this will be the rare penny stock that actually provides long term shareholder profits.
I was referring to the potential issuance of 175 - 200 million new shares (if I read that post correctly). With 136 million now in the float, that large number would outnumber current holders. If it's 50 million, the playing field stays pretty even.
If the number of shares issued is that high, the existing shareholders no longer have enough shares to outvote the shares held by Promark, or USI, or whoever gets those shares. As long as the company stays public we should all come out quite well on this development. But in the past I've owned shares of companies ast that show good potential only to have them taken private due to the issuance of shares to an entity that then votes to accept a buyout. We would still get a premium, but not a home run. Let's hope that is not in someone's game plan.
I'm not sure I get it. Did IWEB just buy Promark from USI? Did they do it with cash or with stock (which would dilute current shareholders)? Since the inference is that the merger would add revenue to IWEB, it sounds like IWEB now owns Promark. Is that right?
Why would any prudent company purchase an entity that has a couple dozen unit sales each year? IWEB just hasn't reached critical mass yet to be considered a viable company, and its technology is off the shelf. There's nothing unique about its products other than a reasonable price, and its list of clients is not worth the time of another company either.
It's hard to tell the rhetoric from the real news. They have an international Channel Sales Manager:
STERLING, Va. – (PR NEWSWIRE) – April 15, 2010 – IceWEB, Inc.™ (OTCBB: IWEB),www.IceWEB.com, a leading provider of Unified Data Storage and building blocks for cloud storage networks, announced that the Company has attracted potential channel partners that meet the demanding criteria to become an IceWEB Channel Partner (ICP) in Europe and Japan. John R. Signorello, IceWEB CEO, stated, “International barriers to the exploitation of technology do not exist any longer. We operate in a global eco-system and our products should be global. Expansion of our reach into international markets is a logical next step. We looked at it from a cost perspective, an engineering perspective and, most importantly, can we compete successfully. If we can win business in and ship to Alaska and California, then we can win business and ship to England, Germany and Japan.” “To be successful internationally,” Mr. Signorello added, “it is essential to have a world-class representative who knows the territory and has the experience to handle that channel. I am pleased we were able to bring in Mr. Bernard C. Girma as our first International Channel Sales Manager. His vast experience working in Europe and Japan will be invaluable in establishing IceWEB as the ‘go to’
company for unified cloud storage solutions.”
And he apparently helped them sell at least one unit in Germany:
STERLING, Va. – (PR NEWSWIRE) – May 11, 2010 – IceWEB™, Inc. (OTCBB: IWEB), www.IceWEB.com, a leading provider of Unified Data Storage and building blocks for cloud storage networks, announced today that the Company has received an initial multi-terabyte data storage order from an IceWEB International Channel Partner. This order represents the first IceWEB digital footprint in the European Union. Bernard Girma, IceWEB International Channel Manager stated, “Germany, with the largest GDP in the European Union, is a key entry point for IceWEB. We are looking forward to a rapid expansion in the EU market after this initial success.”
“This is really exciting to see our products being accepted abroad. It is the start of our International footprint in the channel and something to build momentum from. Our international partner was able to deliver a turnkey solution that met the stringent imagery demands of the German Company,” stated John R. Signorello, CEO of IceWEB. “The first order is always the toughest. Once the end customer receives the product, and is pleased with the price and performance, adding to the platform is easy.”
Beyond that, and a unit sold to support the Vancouver Oympics, their international presence is pretty close to nil.
Very doubtful there is a buyout of a fledgling, struggling little company. Maybe they are having a problem with their product line. I looked at the James River Technical site and Iceweb isn't even listed in their product mix. JRTI sold a couple ICEWEB units in the past, but not seeing IWEB listed as a partner makes me wonder what's going on.
I've been away for a while. What SEC review are you referencing and where can we find info about it. I don't see anything in the news about such a thing.
I hope you're right, but there has been no activity on the PR front lately. The company has historically issued PR's for virtually every tiny piece of information they can dig up. Silence since the 15th makes me wonder if they have hit a speed bump. There was no follow-up on the "Iceweb Express", and they apparently haven't sold a unit in a couple weeks. Is there a problem with the product or its software? Has another company undercut the initial low-cost advantage they have enjoyed? With this company, no news is bad news.
Did we sell a computer this week? The product line isn't gaining enough traction to make the stock attractive. On the one hand, the recent issue of shares was positive because they got operating capital and convinced someone (presumably an intelligent investor) that the share price could hold above 50 cents within a year. On the other hand, they had to issure shares and dilute their earnings just to keep their heads above water (and their salaries flowing). Evidently the market sees the negative side more dominant than the positive. Keep it coming Total - your comments and analysis are appreciated.
Oops. You're right. I am signed up for remedial reading class starting this afternoon. This could lead to more sales if the IWEB 5000 proves its utility with UAV's. The Air Force just announced they are starting a new career field for UAV operators, and the Air Force Academy has added courses leading to placement in that career field for graduates. The market for computers supporting UAV operations seems to be ripe for the plucking.
CLASSIFIED???!!! Read the PR release. A "contract" from a "government agency"! That could be a laptop for a county patrol car. Then they wax elequent about the military and sensors, without any indication this contract supports that kind of equipment. I applaud your optimism, but please get real and don't make things up.
Maybe so, but note that the statement about the military having increasing need to integrate sensor inputs did not say that the product they bought from ICEWEB was providing that solution. You can state all kinds of truths in your PR, but unless they are linked to your product, they mean nothing. All this release said was that ICEWEB got a contract. The rest was just smoke.
Agreed. Notice that the PR said nothing about the size of the contract or what they sold. "...the military is relying increasingly on platforms like the ICEWEB 5000..." intimates they sold another of those boxes, but doesn't really say so. And what the heck does this mean - "The key to long term scalability is to leverage multiple channel partners with a broad range of vertical skill sets." Is he trying to impress or obsfucate? Cheez - one more computer sold this week. Sigh....
Thanks for not taking it personally. We gotta have some fun somewhere because IWEB is wearing me out.
Don't faint - it could be a feint
It probably doesn't qualify as a "supplier" because they refer to the issuance as payment for services rendered by a qualified investor. This is from the September 30, 2009 10K (page 18). You can find it on the investor relations part of the Iceweb web site.
- On September 2, 2009, we issued 1,500,000 shares of our common stock valued at $120,000 IN SATISFACTION OF DEBT in the amount of $120,000, which related to SERVICES RENDERED TO US. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act.
Could it be Lucky's "bumps in the road" comment?
The huge number of shares was the 17 million they issued to employees and vendors last year in lieu of salary and payment for goods and services. Those shares were issued when the stock was trading below 10 cents, and it ran subsequently to over 40 cents. Any shares recently issued can only be a partial explanation for the drop in share price this past couple of weeks.
There aren't likely to be any earnings. They are reporting increased revenue and increased margins. To have earnings that matter you have to have profits. Absent an improvement in the bottom line, there won't be any upward movement next week in the PPS. We need another quarter or two and more traction with the IWEB product line. Shipping a unit or two a week is progress, but it won't cover costs and generate a profit. I'm hopeful long term, but don't bet the ranch on the Monday release.
Maybe so, but you have to realize just how thinly this stock is traded. It is on the OB which is like the wild west, and the company that executes the trades can have a large say in the pricing and how many shares they release. Besides which, RMLX has announced their intent to do a reverse 1 for 100 share split. That is historically bad for shareholders. And once they effect the split they can issue millions of shares to help finance their operations - which will significantly dilute shareholders value. This is a VERY risky stock, even though I like the product and believe it will be successful. Timing will be everything on this one.
The Tucker Torpedo
I can't get the link to work - the same as the first broadcast. It shows a countdown to 4:14 ET, but it is based on CT, so it is an hour off, and when I click on it the screen defaults to the Iceweb website. I sure hope their products work better than this TV site!!
I got some at .39 today. Many thanks!!
Read the press releases. It's not a 5 billion dollar contract for Iceweb.
Press Release Source: IceWEB, Inc. On Tuesday March 30, 2010, 12:22 pm EDT
STERLING, Va., March 30 /PRNewswire-FirstCall/ -- IceWEB, Inc.™ (OTC Bulletin Board:IWEB.ob - News), http://www.iceweb.com/, a leading provider of Unified Data Storage and building blocks for cloud storage networks, provided additional details today with regard to the NASA Solutions for Enterprise-wide Procurement (SEWP) IV Government-Wide Acquisition Contract # NNG07DA10B.
Although the contract for information technology equipment and services is a four-year contract that expires 4/30/2014 and has an estimated value of up to U.S. $5.6 billion, the IceWEB and James River Technical Inc. (JRTI) relationship is only targeting the data storage portion of the estimated $5.6 billion contract. The dollar amount allocated to data storage is not specified in the contract and will vary from year to year based on government demand. IceWEB would like to clarify that they are not the sole contractor being awarded a $5.6 billion contract. IceWEB and James River Technical are one of many contractors competing to win portions of the $5.6 billion dollars estimated to be awarded by the federal government for all of its Informational Technology spending over the next four years.
As a prime contract holder on NASA's SEWP IV GWAC, JRTI, Inc. works with a host of government agencies and end-users to design, deliver and support information technology solutions within the federal government market. JRTI has strategic alliances with leading IT providers like Dell, Cray, NVIDIA and others to offer the latest in technology solutions.
Look on any broker website for the share structure. Basicallly 85 million authorized; 67 million in the float.
The good news is that ICEWEB went from being a low margin reseller of the products of other companies to a high margin manufacturer of products sold by others. That puts them in a whole different class than they were two years ago. Now they need some traction to sales of their product line.
I never had that much faith in their choice of Soyster for the Board of Directors, and I doubt he contributed that much to the company. He sold all his holdings during a period of rising stock value, and now holds no shares. If he was truly an "insider" he would have held on a bit longer. It would appear that he is just getting out of the business and going to the Old Soldiers Home. What the heck - he earned it.
It's more likely they have teamed up with an existing company which has simply added ICEWEB to its stable of products.
How many times have you seen a stock spike on no news, only to see a press report after the runup? Rumors don't have to be "insider" info, and may come from some low level financial guy who signs the authorization to spend the money to buy a product or someone who just has his antenna up when some indication of a purchase comes up. There is no way to completely shield the information from folks who may have some investment savy (but aren't "insiders") and act on what they see. If everyone had access only to public info, we'd all be geniuses. That said, it looks like the company may in fact be executing its business plan and driving toward profitability. I sure hope so - it's been a long haul.
Sandhill is NOT out. Here is the quote from the 10Q:
Net cash provided by financing activities for the three months ended December 31, 2009 was $872,592 as compared to net cash provided of $856,767 for the three months ended December 31, 2008. For the three months ended December 31, 2009, net cash provided by financing activities related to proceeds received from notes payable of $337,209 which were advances under our factoring line with Sand Hill Finance LLC proceeds from the exercise of common stock options of $650,000, and proceeds from the sale of restricted stock of $190,000, offset by repayments on notes payable of $304,617 which were to pay down the balance on the Sand Hill Finance LLC factoring line. For the three months ended December 31, 2008, net cash provided by financing activities related to proceeds received from notes payable of $1,972,131 which were advances under our factoring line with Sand Hill Finance LLC, proceeds from the exercise of common stock options of $600, and the payment of notes payable with common stock of $197,275, offset by repayments on notes payable of $1,286,653 which were to pay down the balance on the Sand Hill Finance LLC factoring line, and repayments of equipment financing of $26,586.
I can't figure out why the stock is moving at all. The comments in the 10Q were not very positive, and indicated they are still using Sandhill as a source of funds - not a cheap source. I know a lot of the stuff that goes into 10Q's is lawyer-driven, but to see the stock price hold - and even go up a bit - in the wake of those statements is odd. There must be something else going on. I just wish the general public had some visibility on it so we don't have to guess why those in the know are buying.
I'm not popping champagne, but it is good to see that there is movement in the sale of their products. Every little bit helps their credibility and bottom line.
We have a while to go before the price rises appreciably. The 17 million shares paid to employees and vendors last year will be slowly fed into the market, holding the price down. All those folks were issued shares in lieu of cash, and all of them need cash to live on or pay their debts, so they are going to be selling their shares. They aren't all "investors" and probably won't hold them as long as we will. That's a lot of trading days at the current volume.
My bet is that many of the sellers are employees or companies who have been paid in stock. Over the last 15 months IWEB has issued over 17 million shares of stock in lieu of pay to their employees and to settle outstanding debts. The employees have to eat and pay rent. (quoted from 10K filing)
On October 28, 2008 we issued 3,431,680 shares of restricted common stock at a per share price of $0.07, valued at $240,218, in lieu of pay to our employees. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act.
On February 18, 2009 we issued 480,000 shares of restricted common stock at a per share price of $0.14, valued at $67,200, in lieu of pay to our employees. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act.
On March 26, 2009 we issued 6,243,581shares of restricted common stock at a per share price of $0.09, valued at $560,305, in lieu of pay to our employees. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act.
On August 19, 2009 we issued 3,000,000 shares of restricted common stock at a per share price of $0.10, valued at $300,000, in lieu of pay to our employees. The issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act.
On August 10, 2009 we sold 1,000,000 shares of common stock at a per share price of $0.08, valued at $80,000 to an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act.
On September 2, 2009, we issued 1,500,000 shares of our common stock valued at $120,000 in satisfaction of debt in the amount of $120,000, which related to services rendered to us. The recipient was an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act.
On November 2, 2009, we sold 1,500,000 shares of common stock at a per share price of $0.10, valued at $150,000 to an accredited investor and the issuance was exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2) of that act.
I see the term "paid basher' used often on these boards, but I don't understand: 1) why anyone would pay someone to bash a stock, especially a penny stock, and 2) why anyone would waste their time getting paid pennies for a click. Then again, I sometimes wonder why I waste my time on these boards also.
Does anyone have background on "bashers"?