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Your assessment of the current situation is spot on correct. However, you neglect to acknowledge that the company is also pursuing refinancing of the convertible debt with traditional asset based financing. If they are successful, then the RS and expectation for further dilution will be out weighed by positive developments (e.g., cost cutting, debt reduction).
It is such a joke to have sarcastic bashers as moderators now. IMO it is a positive indicator that these types are trying so hard to destroy investor confidence. They are truly desperate for whatever reason?
Were on the same page here. The positive developments continue to roll in!
Cost cutting and debt reduction continue.
http://ir.intercloudsys.com/press-releases/detail/895/intercloud-sells-its-training-division-for-1-4-million-and
This is a positive development no matter how you try to spin it. You may miss the boat with your "wait for the RS strategy" Good luck with that!
This is not appropriate for a sticky since it is just an opinion. The poster assumes it is a certainty that either a .01 PPS or RS will occur. We all know no one can predict a bottom price, and the timing for the RS is not yet confirmed.
Your confused. The 10Q states:
"A 1:4 reverse stock-split of the Company’s common stock was approved by the Company’s stockholders on August 29, 2016 at the 2016 Annual Meeting of stockholders and by the Company’s board of directors in April 2017. The Company has requested the required regulatory approval from FINRA (Financial Industry Regulatory Authority) in order to effect the reverse stock-split. To date, the Company has not received the approval and the reverse stock-split has not been effected."
The extension date relates to a warrant expiration. That is stated in the 10Q just above what you pasted in your post.
That said, I do believe they are doing things behind the scenes to delay the RS and that is why the FINRA approval is taking much longer that the lenders expected.
What new service brand are you referring to in your post?
Your point of view is well stated and risk adverse. The counter point is that you assume either .01 pr an RS will occur BEFORE the next spike. Knowing that the FINRA approval can take several months means the company may have one or more positive developments in Q2 that can move the PPS much higher making today's price the bottom. Bottom line is no one here has a crystal ball!
I agree they are due for a news release (e.g., contracts, financing updates, asset sales, layoffs, etc.)
Sorry, but I would hardly call the last rise to .03 a pump. It was just anticipation of ER. That is normal for any stock. Now, if it spiked to .10 or more it would be a pump!
Are you just speculating that a press release is on the way?
Many here are watching carefully and hoping for an RS so they can buy much lower. Personally, I don't think it will work out that way. The RS will only occur after the PPS is pusher up much higher than it is today IMO. Place your bets!
Just so you know, lsands is not the CEO. His is a VP for IR.
What is the date of this email from the CEO if I can ask?
You seem very anxious for the RS to occur...hmmm!
#UlteriorMotives
They need is more cost cutting (e.g., layoffs) combined with refinancing for toxic loans to turn the table here. The cost cutting is on-track. The big ??? is when and how will they resolve the debt issue. They are delaying the RS for a reason. That is why they moved to OTC. It must be annoying the f**k out of the loan holders that want more dilution to occur.
Gee, I'm convinced and will write this off too....LOL
I know. WTF. Moderators and hedge funds are one and the same. Too funny!
It already did. LOL
But, its will not touch .01 and will go much higher before the RS. Your advice only helps the lenders.
#NotFooled
I feel so dumb for selling at .019...NOT!!! LMFAO
Plus, it's Munro moron, not Munroe LOL
And he very well could be working with the shorts. Auerbach associates. Dump, then pump, then repeat! He is not a saint! LOL
MMs trying to get retail to sell before they pump the f**K out of this! Dump, then pump, then repeat!
Idiots selling now like they did before the run in mid-March.
It's not scheduled.
#Shorts_R_Trapped
It's actually worth .05
RS and dilution are great for short sellers (e.g. Lenders w hedge)
And after RS you have 1/4 the shares you have now. So in REAL terms 1.00 after RS is 8X today's market cap. It's simple math!!!
1.00 after RS equates to .25 which is 8x today's price. Not 40x as you state.
The 10Q also states:
As of March 31, 2017, the Company did not have sufficient authorized shares for the remaining equity warrants to qualify as equity. Per ASC 815-40-35-9, the Company reclassified these warrants to a derivative liability at their fair value as of March 31, 2017. Based on a warrant to purchase up to a total of 2,500,000 shares of common stock and an underlying price of $0.03 per share, the Company recorded these warrants at fair value of $75 on the unaudited condensed consolidated balance sheet as of March 31, 2017.
On March 31, 2017 and December 31, 2016, the Company used a binomial lattice model to value the warrant derivative and determined the fair value to be $189 and $152, respectively. The Company recorded a gain on fair value of derivative instruments of $37 for the three months ended March 31, 2017 on the unaudited condensed consolidated statement of operations.
On April 1, 2017, the expiration date was extended until the Company’s proposed reverse-stock split is effected (refer to Note 16, Subsequent Events, for further detail).
All this means is the lenders are giving them some slack on when the note has to be paid until such time the RS is approved by FINRA. Translation: The RS can happen at any time from now until Aug 29th.
The 10Q states: Reverse Stock-Split
A 1:4 reverse stock-split of the Company’s common stock was approved by the Company’s stockholders on August 29, 2016 at the 2016 Annual Meeting of stockholders and by the Company’s board of directors in April 2017. The Company has requested the required regulatory approval from FINRA (Financial Industry Regulatory Authority) in order to effect the reverse stock-split. To date, the Company has not received the approval and the reverse stock-split has not been effected.
Where does this state an extension date has been requested? Why do you think that is the case?
Why do you think shorts need to cover now?
Hate to say it, but it's almost like they are working with the short sellers. Isn't munro part of the company w/shooker the crook? I believe it is caller auerback
http://auerbachacq.com/who_we_are.html
SELL before RS
companies don't release "good" reports on Fridays after market
So, it will drop back to .02 on Monday. Then what? They RS it to .08 so it can be pushed back down to .02. Then sell 375M shares to make 7M just to keep the lights on. Makes no sense at all. They need to layoff 1/2 of the company and focus only on the things that are profitable.
The last 2 asset sales only reduced the debt by ONLY 2mil and they have 48mil in debt. I don't see anything that can save them realistically. I get the feeling they are just hanging on to draw their $1m salaries. Even if they do care, how can they possibly pay down the enormous debt with falling revenue?
It not you. Their business is horrible and is run by morons. They are losing money in the cloud computing sector...wtf