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I agree. The bio on him seemed more consistent with a guy who takes care of trouble. .
At the time of the Dec. 1 deadline for buying into USSE to get the SSTP spinoff 1:1 dividend there were 650 millions shares. That is equivalent to 1.3 billion shares total outstanding to existing shareholders if the dividend had gone through as promised. Now we have how many billions extra in SSTP shares? At least a dilution to a third. Some capitalization is to be expected, but for that amount of shares we should have been able to set up shop without partners.
You can't compensate USSE shareholders with SSTP stock as USSE has none to give them. The current shares of SSTP locked up in SSTP are the company's and provide the only current value to USSE. Giving them to USSE shareholders would destroy USSE and would come no where close to compensating the prior shareholders. Not to mention anyone who bought USSE in the meantime thinking there was value. They would get no SSTP shares and have a worthless USSE share on their hands.
SSTP can't just print shares and give them to USSE shareholders. They do not owe anything to USSE investors, their responsibility is to the SSTP shareholder. I say they can't, but JR did do it one time when he gave 2/3rds of the USSE company to SSTP for no compensation. I guess the only good thing in the give away is JR could have given away all the shares except one share and called it just compensation.
Since SSTP was a spinoff (for lack of calling it what it really should be called) of USSE, merging it back in would have created this whole mess for what reason? Other than make a few people very wealthy in the semi IPO that occurred. We would be back where we started but now with billions of more shares. The whole premise of SSTP's existence, green credits and government subsidy, would then prove to have been a ruse in the first place, and now abandoned as part of the on going company's plans.
In a merger you would not own any more shares than you do now. Several individuals who were gifted shares in this process would have been given these out of thin air. I bet Redwood owned the shell and got a nice windfall out of the deal for doing nothing but providing a shell. Someone had to sell those shares at .30 cents to the new investors that first week of SSTP's existence. So there would be one happy merged company with many increasing their share count and/or wealth in the merry-go-round except original shareholders still stuck at a minus.
Making SSTP a subsidiary doesn't change the above math, it would be only slightly different than what is currently in place. The only thing USSE owns at this time is the SSTP shares as JR has de facto created a new USSE in SSTP, and is letting the former whither. The whole mess makes ones head spin.
The kicker in all this is the transfer of assets into SSTP could be struck down in court as fraudulent. Then what would this mess look like?
The best thing is to let SSTP be successful and start the Olympic legal games. It is headed there one way or another.
Same here.
One has to wonder if the particular attorney just hired has more to do with your peeve (held by many shareholders, maybe even SEC), and other litigation in place or pending. His background in whistle blower defense is an odd add on for a growing biofuel company. Especially as his firm is located in California.
There is no clue how many shares JR or others "happened" into when they started SSTP. I am sure they were all compensated well for their hard work, you on the other hand got a split of USSE. So even though they locked up 340 million, they could have another billion to dump. This says nothing for the stock JR has in USSE, which would be hundreds of millions. Worst case scenario all those are unlocked around November including Stanton's shares.
You are going around in circles. What is the difference if I get a partner who takes half of the profit up front, thus only half to the shareholders or I dilute the shares by doubling them. They are exactly the same.
No one knows what the arrangement with SSTP-EU will be. Does Pemco own 90%, 50% or 10%. The remaining should be owned by SSTP even if it goes public. Will any profits be repatriated to the parent company? Or remain only on their books. NO mention of going public. The SSTP-CA arrangement as stated by SSTP PR is to be a non public venture.
Dilution for growth within reason if based on return is OK. But 3.5 billion shares in USSE/SSTP when it only had 650 million 1 year and 9 months ago borders on insanity. It has been diluted down to a third not counting the partnerships. The only way to raise decent capital at the current share price is to dump 100 million shares to get 3 million dollars. OK with you?
If so, JR will get his share. Doubt anyone else does?
All partnerships will lead to dilution of profits. Of course they have to sell something to have a profit.
I am not sure, but I bet they were not putting out PR's that were never fulfilled. They had a product they were selling. Could you direct me to the closest filling station selling JR Juice?
Trust me a biotech company who over a year and a half ago said it was going to be producing in 8 weeks, and still nothing, and no FDA approval would be crucified. HHHMMM, that is what has happened here.
Not sure how you would make projections of value without profit. Take a look at GM, nice company, at least it was, but you can only sell so many cars at a loss before bankruptcy. Basic economics win in the long run.
Since the company and stock have been out long enough, it will face scrutiny not encountered on that initial big run up. Billions of shares will not go to a dollar without some factual basis. it will have a tough time going to a dime on PR's and partnerships alone.
Wake me when they ACTUALLY sell something for a profit. zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
In JR's case he needs protection from the shareholders.
I wonder if JR's wife gets paid $100,000 a year to be the company accountant?
After all the millions spent on this company over the years, we don't have one reactor producing commercial product, so why do you think the next 2 million will be any different. If this is such good news mortgage the house and buy more, it got cheaper today after the news so it is a real bargain.
Agree! If this thing turns out to be legit, there is more than enough time with the amount of shares out there to jump on board. If most had taken this approach they would have cash ready to jump on at lower prices when it moves, and not a pile of losses.
If the market doesn't react the way common sense dictates it should, watch out.
If I am following your thought process, an investment of 2 billion US Dollars/.02 cents = 100 billion shares. So you get 100 billion shares. Current price is .018 and a discount of 25 percent for the deal would put you around 125 billion shares for your effort. Not sure what percentage of the company you would own, but would seriously dilute any other stockholder.
I doubt they do anything like this. What they do is just give50% of the profit to the group lending the money, and then split up the rest in the company. Same effect, but less messy and less likely to be had.
I think you are right on with arms length arrangements with these so called partners taking their cut upfront. They may get some shares as well, and whichever one of these guys brings big bucks will have all the hardware as collateral in case a fast one is pulled on them.
They need to hurry up and generate some revenues otherwise no point in the suit. I am sure JR's money is tucked away safely.
That is the problem with this stock. Even if it doesn't turn out to be a scam. You can't say it will just go up with revenues. If they start reporting and become compliant, then investors will know the extent of the dilution. Both the stock and the percentage of the company sold for financing, it will probably look very ugly and create a significant drop in stock price. Buy on the rumor, sell on the news.
At a minimum, there will be a lot of free trading stock at that time that people will want to sell to take home some cash.
And if not, you lose everything.
By the way, what is your percentage ownership of the company? It would be a shame if you bought the hell out of them and you now own less of the company then at the time of your original purchase. Most likely that is the case.
This is the same CEO that said we need no stinking permits. Do you want a list of other lies. HHMMMM Oh yeah, we will be shipping in 72 hours (one year ago), 8-10 weeks until we have four reactors producing and sales (one and a half years ago), need I go on. His word means nothing.
I did all those calculations over 20 months ago when we had 650 million shares and one company. I based it on the Wall Street Report with possible costs, earnings, growth and other parameters, along with the original gist of the business plan from JR. Since that point in time you can throw every type of estimation out the window since we don't know squat.
It is this type of nonsensical thinking that keeps people buying the shares and yet it keeps going down. HHHMMMM Something must be wrong with your thinking. You don't know any of the financing arrangements, the partnership arrangements, the USSE/SSTP split, the costs, the sale price, the share structure, and yet you post billions of dollars in profit. You wouldn't be JR would you?
If you buy either, just be ready to sell immediately when the price stalls. There is a reason the recent info is being put out, need the share price up for some reason. May be related to death spiral financing. If we are only 90 days away from actual sales, what is the point?
Any individual with the sums of money needed to fund this project would more likely opt against buying shares in the company and make a side deal. One that would not affect him with dilution or potential litigation. One that would pay him in advance of money reaching the USSE bank account.
For all we know, they just bought jet fuel from an airline. With JR's past history, that would be considered a partner in his mind. The PR is purposely fuzzy.
Since they are not producing anything and have no permits, not much. It is another JR PR, you figure the value of his words.
I agree, you can have a product but scam people out of their money. I predict JR will try and hang in there until another company produces his so called product. Than he can claim we were not successful due to competition and not because of his actions. Then he walks away.
The tape prints the story. Are you interested in any other?
"Now what would the Guatemalan Parliament, and Dr. John Rivera possibly have to discuss? Inquiring minds want to know."
Get out of jail free card?
Are you kidding, this is a group of investors who are bankrolling this project and will get a big cut of the upfront revenues prior to SSTP/USSE seeing any of it. Plus it will have secured notes against the property and if SSTP/USSE screws it up, they walk away with assets.
That budget is for wining, dining, hotels, and airfare. After that not much left for doing the peoples business.
Probably Redwood.
BUY BACK???? They are the ones selling! Where do you think the jet fuel money comes from to take the party flights to DR and CA?
You can still be a totally transparent and reporting company on the pinks. Once that is done you can be recommended and sponsored onto the BB via a Broker/Market Maker.
Not to mention the hovering SEC investigation.
In order to audit the companies and render a report, all assets and liabilities need to be quantified. When multiple lawsuits are in place they need to be identified and some sort of liability assessed. This may not be very easy when the SEC is investigating.
In order to produce an audit and financials, all the current partnership agreements would need to be reported and the USSE/SSTP relationship as well. I am sure that has the ability to make the stock less attractive than it already is.
I did the same projections based on the original Wall St. Report over 1.5 years ago. Based on 650 million shares and a dilution to ultimately 1 billion shares in 2 years and a completed facility of 200 reactors. These were numbers handed to us by management (JR) via his hired sham report. Problem was, none of it came true. Now we are 3.5 billion shares, and you are making the same projections others did 1.5 years ago. There is NO factual basis for any projecttions.
How much of that 4.2 billion goes to the partners before USSE/SSTP gets any? 10%? 50%? 90%? How many shares are there in USSE/SSTP, and how much dilution in 4 years. The problem with future revenue projections is worthless without the variables in place. Plus we need to actually start production to consider 1000 pods.
The share price of this stock begs to differ with your opinion.