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What?
Proceeds from Loans and proceeds from equity effect cash-flow...
Take the time to know the right people?
That is too funny...
Also, being cash-flow positive from Debt proceeds (loans) or from Equity proceeds (issuing shares, warrants, etc.) is not something that should be deemed as positive.
I am interested in positive cash-flows from operations and we are a long long way from that...
Are we really close to being cash-flow positive? I have seen a few posts that have stated that, but I wonder what the basis of those claims is?
Q1 for this year shows we are not even close to being cash-flow positive, so in absence of new information being released what do you know that I do not?
Sounds good.
Beer still on me if you can get me an address :)
I have read the financials and I am also a CPA. I am confident I have a solid understanding of what impacts their cash-flow...
Explain to me how penalty shares and issuing warrants impacted their cash-flow negatively?
You tell me the address or addresses of their Canadian offices and I will buy you a beer the next time you are in Calgary! I will buy you as many beer as you can drink...
The SEC is 100% independent from all 13 Provincial and Territorial Commissions here in Canada. That is a fact!
The SEC working with Canadian Commissions and the RCMP is one thing. They have direct bilateral agreements with many other countries' securities commissions to deal with cross-border misconduct in securities markets, but that does not mean they have offices in those countries...LOL
Other than interest, what were the costs of the toxic debt?
The convertible debt was paid off with other debt (the $41M), so even though we get a reprieve from making payments until Oct. 2016 we still incur/accrue interest on all debt.
The convertible debt, while horrific for the pps, actual saved the company on interest because the principle was converted into shares...
So interest payments will be down this year due to the reprieve, but the debt level overall has not gone down.
Bottom line is for this company to be cash flow positive they need to:
1. Eliminate debt
2. Cut operating costs and increase gross profits
3. Significantly reduce SG&A expenses
You also said the SEC has had offices in Canada for over a decade, which is not factual either...
The SEC does not have any offices outside of the US.
Quebec and Manitoba commissions issued CTOs as well (on June 10th) and I am in Alberta and not able to trade the security.
Doesn't help when a whole country is locked out from buying....
Not sure how many SKUs they have, but I assumed when I read that part of the statement that those 75 SKUs related to obsolete or non-
moving inventory. I wouldn't underestimate this as SKU management can result in significant savings.
I took the acquisition synergies comment as truly merging the acquired companies into one entity. This is where we should see staffing reductions, costs savings due to economies of scale (better pricing from suppliers), and potentially utilizing and rolling out acquired tech (supply management system, payroll/HR software, etc.).
In my mind, the reduction from 10 to 7 suppliers change isn't really about reducing ECIG staff, but getting a better price (due to higher volume and shipping/transportation costs) and also maybe getting rid of some suppliers that had quality concerns.
I don't think transferring refill production from China to the USA and UK increases overheads. Based on the fact that there was/is serious concerns over quality control in China I fully support this move.
I agree that most of the items noted are not SG&A related and for ECIG SG&A is a massive expense that I cannot comprehend (nothing in the reports provides me with enough details to know what these costs really are and why they are so high relative to revenues).
Something doesn't add up when your SG&A expense is higher than your total revenue...and not a little higher, but materially higher (Q1 2015: Revenues $11.1M & SG&A expense $19.5M, 2014: Revenues $43.5M & SG&A expense $56.5M).
SG&A needs to be cut 10 fold IMO.
I just emailed Phil and Dan.
Interested to see if I get a response and what they have to say.
I tried again today and still get the same "Order failed" message.
Message says, "The order was rejected. A cease trade order has been issued on this security."
I see that yesterday the Quebec and Manitoba commissions issued CTOs on ECIG for the same reason as BC.
I am indifferent now though as I am not selling at these levels and not going to buy over $0.30. Disappointed I missed $0.28 again though...
LOL, there was no cease order on an MM.
There is a ban on trading the stock in Canada (started with a CTO in British Columbia), but CTOs have been issued in Quebec and Manitoba because ECIG is delinquent in filing their Financial Report and MD&A to the appropriate securities commissions.
http://cto-iov.csa-acvm.ca/SearchArticles.asp?Instance=101&Form=1&Attr3=1&Attr1=1&Attr1=2&Attr1=3&Attr1=4&Attr1=5&AttrSet4=1
That is interesting. Mine was later in the day, but I had some open (GTC) orders in place that I see were cancelled as well.
Was it in the morning?
I tried in the afternoon when it dipped below $0.30.
My brokerage is based out of Toronto so maybe that is why I cannot trade today and someone else in AB can...
Well the facts are the CTO relates to missed filings not an SEC investigation and it pisses me off...
I am an example of a shareholder whose hands have been effectively tied because this company cannot get their shit together.
I was basically told to contract the company and find out what they are doing to address the cease trade order...
I couldn't and I am in Alberta as well....
The SEC didn't enforce a cease trade on ECIG.
The British Columbia Securities Commission did because the company is delinquent in their filings.
So as soon as ECIG files the required records the Executive Director (of the BC Securities Commission) will revoke the cease trade order.
Your making the cease trade out to be related to an SEC investigation (due to investor and company complaints), when that is not the facts at all.
Totally agree.
I thought after the Q1 we would see $0.20s, but when it held in the $0.30s I thought that was where the support was.
Should have went with my instincts and waited for the $0.20s to average down.
I think I should just look away for a few months now because these red days after red days are depressing....
No offence taken.
I didn't want to come off as defensive either, lol, so hope you didn't think that was the case.
Just wanted to throw out that everyone needs to take everything said on message boards with a grain of salt. People, regardless of whether they make positive or negative comments, could have a hidden agenda. That is why I posted the SEC note.
For me personally, I feel I can be critical but that doesn't mean I am not holding long. It is just me being realistic/pragmatic.
I still think I am going to make some $s here, but not life changing $s and not on the timeline I originally thought.
Again, no offence was taken from your post.
No, I don't believe this is just a pump and dump because the individual who brought this stock to my attention is a very good friend of mine and has 5 times more invested than I do. As well, he knows 2 individuals who are heavily invested who he gets his info. from.
Basically I have been told this is going to be a longer play than originally anticipated.
However, with that said, I can still be long and also still believe that people who want to flip can participate in pumping and dumping (short term).
There are people who have posted that they have flipped this stock multiple times and the way the stock has traded over the past 6 months makes it believable.
From the SEC:
"There also may be instances where a company insider or paid promoter provides false and misleading excuses for why a company’s stock price has recently decreased. For instance, these individuals may claim that the price decrease is a temporary condition resulting from the activities of “naked” short sellers. The insiders or promoters may hope to use this misinformation to move the price back up so they can dump their own stock at higher prices. Often, the price decrease is a result of the company’s poor financial situation rather than the reasons provided by the insiders or promoters."
Food for thought....
The thing is, he almost pulled it off.
Had the NASDAQ up-listing gone through, they would have received $150M in the IPO. That would have paid off all debt and they would have had cash to fund operations and further expansion.
It was an "all eggs in one basket" risk that was very close to playing out favorably.
My issue with Brent was not his aggressive/risky tactics or how much he paid for the acquisitions, but his overly optimistic/misleading sales numbers that were quoted. That was the reason I got in. Last year at this time I thought I had missed the boat, so understanding why the pps went to where it was once the up-listing was postponed (desperately needing cash and therefore entering toxic convertible debt), I thought it was a great buying opportunity when the stock went under $0.10. A company projecting upwards of $80M in 2014 revenue, meant upwards of $50M in Q4 Rev, which meant $200M+ in 2015 revenue.
$200M in revenues equates to a money making company, not a money bleeding company.
So I got sold on the revenue quote, but that is on me...
Now, with Dan at the helm I think costs will be reigned in and revenues will grow over time. I just think this is going to be a much longer hold than I originally anticipated (but so are all my oil & gas plays)...
There are no preferred shares.
I am not aware of any lock-up provision related to the shares that Mansour was given (not saying there isn't a lock-up period, but nothing was communicated to that affect). Mansour, in absence of a lock-up period, could be dumping their shares that were given to them because it is free money...
I know some investors got in on an offering back in 2013 (or early 2014) at $0.25 per share, but this was pre R/S so that equates to $3.75 today and their lock-up period expired long ago. Those investors are not selling today (no way).
Does anybody know the restrictions on the employees holding shares?
Basically, in absence of more information, the float is equal to the O/S...
Look at the Vapestick AVS and V-Liquids.
Look at the VIP tank kits and e-liquids.
Look at the FIN AVS and Cartomizer Vaping Kit.
ECIG's Brands have a wide range of products, not just the cigalites.
I hope this is the bottom.
Got my average more in line with Dan's Options/Warrants/Convertible Note, so feel better about my position now moving forward.
Just not willing to put anymore $s into this, so would like to see us move above $0.45, then above the $0.75 level, then back above $2.00 (back to the price when the R/S took place).
Have a good weekend all.
Mansour was GIVEN 19,666,667 shares as an "inducement" to to loan ECIG $1M (plus 3,828,059 warrants with an exercise price of $0.45).
So maybe they are selling right now. $19,666,667 at $0.35 equals almost $7M. maybe this is a way for them to recoup some of their original $20M investment and then the $0.45 warrants become their long position.
I don't know, was thinking the pps would get into the $0.20s after the last Q report, but then thought $0.37 was going to be the bottom (prior to the last 3 trading days).
Could have saved a few hundred $s (and subsequently got more shares) had I waited a little longer to average down...
$0.02 (pre split equiv.) is a new low since I got in this stock, but I have seen it go from ~$0.03 to ~0.18 in a few weeks so hopefully we see something like that over the next few months.
$500M Valuation
70.5M O/S (May 19, 2015)
= ~$7.00 pps
So if you put a value (future value) on ECIG with a Market Cap of $500M then you can put a projected pps of $7.00.
This assumes no change to the O/S.
Pretty optimistic projection in my mind.
LOL - had just figured that out a few minutes ago.
Not a holiday here in Canada...
Anybody having issues with orders?
I am sure this is already in consideration.
You are absolutely right. I have no inside information, so my analysis is solely based on what the company releases in the quarterly reporting and my own DD.
Maybe (hopefully) the next 2 Q reports will shock me in a good way....
My preference would be for operations to evolve enough that they do not need to go into further debt and do not need to increase the A/S.
I just do not see them having enough time given their current finances...
I would love that to be the case.
Problem is, they will need the cash sooner than when we see a $2 pps...
You must know something I do not...I wish I had your optimism.
From my perspective, especially at this current pps, this is still a good investment...just a much longer term play than I had originally anticipated.