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To own 12 million shares and open the latest financials could not have felt good. I only owned one million and I was ready to strangle Ballas. Hopefully it will work out fine, I was more angry than anything.
I would probably be on Ballas' doorstep if it cost me 50k in profits. If you have that much invested, you should strongly consider printing out the fins and really going through them top to bottom until you understand every single line.
That's a lot of money to have on the line when Ballas "might" pull the company out of this hole.
NP.
Yeah, the cheaper the conversion, the more shares hit the market. Because of that, as their market cap grows, rather than it being reflected in the stock price, it is reflected in the available shares. This makes it almost impossible for the share price to go up. And since the rate at which they are issuing shares outpaces the rate they are growing, the share price drops.
One of the only good things about penny stocks though is that lots of investors don't even care about the fundamentals. So even if the numbers don't look good, you could easily get a nice pop on news or any other catalyst. I know a lot of people are holding long so I really hope everything settles with the April release. If so, I will be right back in. And probably kicking myself for getting out at all.
I should also add that we have no idea how they will handle the new debt. There are many ways they could do it besides paying it with shares, all of which would be good for the bottom line here.
The "possibility" that it will be converted to shares is no need to panic. And with the profits being raked in, maybe even paying it in shares won't be as bad as it sounds. We really won't know anythng until Apr. 15th.
No problem.
Authorized is what UBQU was given in total. As of Nov. 30 2018, 900m.
Issued is what they have used. Paid debt, sold to market, whatever.
Outstanding is what's in between. They are authorized to have them, but haven't done anything with them yet. In ubqu case, they will (already have) use them to pay those debts. They will receive .001 credit toward their debt for the shares. The lender (Common sense Holdings for example) can sell them (Convert them) to market for market price.
So they had 185m, convertible to pay 185k in debt at .001. Yet they had way more debt than that.
Initially, they had just enough shares to cover their debt. That was the case right up until they borrowed more money from the same people with the same lousy terms.
With almost 450k in inventory and showing profits like they are, a bank would have loaned them the money. But then how would they move 3 million dollars of investor (you and me) money from a publicly traded company to a private one without it being illegal?
Yes, if you look at note 11 it actually tells you who shares are issued to and at what price. The balance sheet says they had 185.3m left outstanding (715m issued out of 900m authorized) as of Nov 30 2017.
So just the new debt adds up to 300m shares, and they only had 185m left 5 months ago. The options for ubqu are limited.
Note 10 says:
"The notes contain a conversion feature whereby the notes are convertible in whole or in part, at the sole discretion of the holder, into shares of common stock at a conversion price of $.001 per share or the company "par" value."
I took that to mean that basically their 300k loan for cryptobuy will be paid back @ .001 per share. Meaning Common Sense Holdings will, with the stock price being .01, receive 3m dollars worth of shares for the 300k loan.
When this concept is applied to previous debt and converted shares, it breaks down to be correct.
MAYBE CHS would only loan the money if they got the same deal, but Ballas is confident he can pay it in cash. If that's the case, ubqu will be fine. We will find out at or about April 15th.
The real question is why did they do it this time? The initial debt could at least be explained by needing capital to create this profitable company. The most recent 300k with .001 convertibles can't be explained away so easily. I hope they come out and say they paid it in cash. If they do, I'll be right back in.
"Most Independent and Liberal senators generally support the bill, and together they hold 54 of the chamber's 93 occupied seats."
They added a lot of scare to it with reasons it could fail, but that's a lot of support statistically. I guess we will find out today!
I saw the downward trend on the monthly chart too. I checked it out of habit while doing some DD on this company. Then I remembered it's a penny stock and the chart is about as useful as flipping a coin to predict future movements. If you did want to use a chart though, .018 would be a resistance that we need to break through, which will probably happen today. Although like I said, I believe charts to be useless in this particular situation.
If so they could have used it to secure a traditional loan, which would have been nice for their bottom line.
Gotcha. I misunderstood the post. Good luck!
I can't read it all because I'm not a member, but the part I can read says you were supposed to sell on 3/14 and should now stay in cash. I don't see anything about it being a bottom. May be because I can only see parts of it though.
Shhhh..The guys that are 100% technical traders do not like to hear that, lol.
Wait for the next fins. Due in mid April.
Any other ETrade users showing zero volume on some stocks, even though my other platforms show volume?
So you said...
Based on what we know so far, it does seem as if they are funneling the money to a non publicly traded company. And I was panicking when I was still in, but now that I'm out I can see a few ways this could be overcome. Not to the point where I would still be invested, but enough that I will continue to follow it just in case.
Yeah, they said that. It will all parse out with the next fins. For the sake of those still invested I hope they address it. If they pay it in cash I will jump back in immediately. The business is sound. The income is right on time. It's just the odd financing decisions that scare me.
They have enough income and assets that they could have borrowed that 300k from a bank at a normal interest rate and their valuation would have skyrocketed.
I'm assuming the 300k was for cryptobuy. They could also announce a new investment, although that still wouldn't explain the .001 conversion terms of the loan.
It's likely going to just come down to that new debt. Speaking for myself, paying it in cash instead of getting new shares to convert would be the only acceptable action. Acquiring 300k in new debt to be paid with 3 million dollars worth of shares doesn't work for me.
At least the original 900k paid back with over 9 million dollars worth of shares was speculative on the lenders part. The new debt is basically just guaranteed free money for the lenders. To say it's sketchy is an understatement. If I could get ahold of anyone at the SEC that gives a damn we would find out if it's even legal.
The way I see it right now, they are spending 3 million dollars on cryptobuy.com, a $300,000.00 website.
Sorry, I hit private reply on my phone by accident.
It decreased a lot. Then they borrowed more, with the same terrible terms. They did it in such a way that without digging into the fins it just looked like less debt was paid than expected.
Not really anything new in it, but it's from this morning.
http://mmjreporter.com/ubiquitech-software-corp-otcmktsubqu-reports-jump-in-gross-annual-revenue-35379.html
This showed up in my email from my google alerts I have set.
Are you still in it? I am not, which is why I haven't said much one way or the other. My choice to exit could be wrong so I'm definitely not gonna come here and bash it.
Doesn't look like many are too concerned about it so it may be fine.
Note 10, notes payable.
It's been like that for months I believe.
I did sell. I'm sticking around to see what happens. I still own just enough to follow the movements through my portfolio.
If it drops low enough, and they explain why they did what they did I would probably get back in. But no way I'd buy back in without some explanations.
He will be back to singing their praises again tomorrow.
What's the imminent good news?
Yes, they are owned by ubqu. But I somehow in the past missed this tidbit:
"The company is based in Kaohsiung City, Taiwan. ".
This article from November mentions 5000 kg/year.
http://www.supreme.ca/news/press-release-details/2017/Supreme-Commences-Production-in-New-Flowering-Rooms/default.aspx
And this more recent one says their goal is 50 million grams (50,000 kg).
https://www.newcannabisventures.com/supreme-cannabis-pursues-premium-cannabis-b2b-model/
If I was their CEO I'd probably have the munchies all the time too.
Is it possible someone wants to make sure the shorts can't drop it to cover?
I did it too. The immaturity of the posts is too much. It would be fine if he just posted the facts, but throwing in the bashing opinions every time just got to be too much.
Great tip! Thanks
This was in my email today. Requires a subscription to read it, which I don't have, but the headline is good anyway.
It came from my google news alerts.
https://insiderfinancial.com/ubiquitech-software-corp-otcmktsubqu-due-for-a-bounce-as-revenue-growth-exceed-expectations
Maybe so, maybe someone wants 100m all at once.
Mine shows 716k. I suspect, since the volume doesn't indicate 40 million sold from the 111 mil you saw reducing to 71 mil, that Etrade is more accurate on this one.