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You were lied to. Convertibles were used to purchase the townhomes and marina.
Also, I'm not touching eps or Market Cap derived from eps until I see a share structure. I hope it's 815M. Don't care if it's 1.2B, 600M, 800M whatever. No sense getting people going on their predictions of O/S until we see it all for ourselves.
Don't know how to post a spreadsheet and make the columns line up. I added a column for year to year changes and it's very enlightening. If anyone has a better idea on posting columns, please let me know. Here are some thoughts based on the numbers as I see it. Keep in mind I'm certainly no CPA or FA wiz...
- Gross Margin has almost doubled year to year to 10.41%. However, General and Administrative expenses have tripled year to year. This is reflected in the smaller growth in Net Profit Margin.
- Operating Profit Margin has increased marginly to 4.14%.This identifies the recurring, core earnings of the company. EPS is often shown as operating EPS to help eliminate confusion created when non-recurring items like other income are included.
- Net Profit Margin increases by .6% to 4.87%. This is a slight improvement. Industry average for conglomerates is about 10-11% We still have work to do but this is typical of growth companies.
- Working Capital has fallen from +$10M to -$2M. This is the net difference between current assets and current liabilities. Typically a decrease in working capital can be seen as a negative, for the business has less cash on hand to meet immediate business needs. However, most businesses merely take on corporate debt to bolster the appearance of the Working Capital account. To reveal a negative number is somewhat alarming, but also speaks to transparency.
- The Current Ratio is the standard test of Working Capital. The Current Ratio has decreased year to year from 2.68 to 0.94. A decrease in the Current Ratio is representative of the decrease in Working Capital. The rule of thumb is to have twice as much in the CA account as the CL account. During a growth phase it is expected that cash and equivalents should be tighter, thus lowering the Current Ratio. I would relax a bit if I could see the specifics of the Current Liability account.
- The Quick Ratio or Acid test has decreased from 1.21 to 0.48. This is the Current Ratio with inventories removed from the Current Asset account. 1 is standard implying that a cash strong company should have $1 in cash or equivalent on hand to cover $1 of current liabilities. PBLS currently has $.48 per $1.
- Capitalization has improved from $79.6M to $92.7M, a 16.54% change year to year. This is Market Cap as defined by the total debt and equity of the corporation instead of O/S times pps. Year over year PBLS saw it's Market Cap grow by 16.54%
- Our Debt-to-Equity Ratio remains at $0 as long as $0 long term debt is shown on the balance sheet. Standard Debt-to-Equity is 2.5-3% for conglomerates. Based on GAAP, long term debt would be included in the financial statement if PBLS had incurred any. Therefore, lack of a line item for debt implies that debt remains at $0.
- Because PBLS shows no LT debt, Book Value is equal to Market Cap. Again, PBLS demonstrated a 16.54% increase in Book Value year over year. Not to shabby if you ask me and 2007 numbers are right around the corner.
- Goodwill has increased by 37.37%. Goodwill is something that PBLS incurs when it buys a company. Basically, Goodwill is equal to the amount paid for an acquisition over the book value of that acquisition. Goodwill is then depreciated over time. A 37% increase in Goodwill in light of the mulitude of acquisitions made in 2006 demonstrates that PBLS is not over-paying for companies.
- Machinery & Equipment has increased by 306.94%. Most of this is probably pit equipment at Murphy. Probably one of our safest investments right now.
- Accounts Receivable saw a 253% increase year to year. This significant increase in A/R is probably due to the large pit contracts. These type of contracts typically offer more favorable terms of payment for the buyer of the aggregate. This number should be decreased. They need to hire some no-neck Italians from Jersey to do some collecting.
- General and Administrative Expenses increased by 307.95%. Given the number of new companies purchased and the latest hirings, it was assumed that G&A expenses were going to increase dramatically. They will continue to increase during the growth phase of PBLS if they continue to hire such quality employees.
Biggest positive besides the transparency is the increase in the margins and the stability of the Goodwill account. Typically margins decrease during acquisition periods and especially when buying distressed companies. Stability in Goodwill means that they are not over-paying for the assets in the companies that they buy.
Biggest concern would be the decrease in Working Capital, the lack of line items in the Liability accounts, and the fact that $0 debt was included on the balance sheet. I was also under the impression that we took on some LT debt with the Best Jets acquisition.
Keep in mind that these numbers represent 2006 and not the last 5 months of 2007. With the new Pit contracts and jet sales, things in the Revenue and Working Capital department should have changed dramatically (hopefully for the better).
All of this makes better sense if you can see the numbers in a spreadsheet. And of course, all in MOSO. I don't know anything about financial statements.
Ren
Trust me you don't want to go there. Set up by criminals that p&d'd PBLS in late 2005 and into 2006. Gnulnx, Shiz, and FMI ran them off though. I have an "assignment" if you will to watch their posting though.
Will do. Just bear with me as this news release coincides with a ton of new business for me. Shocker.
Anyway, want the pop too but have certs and so willing to wait. Swing trading some of this keeps it fun though.
EXACTLY!!!!!
No problem. Just keep in mind that as a business man I personally like debt financing over equity financing as it is cheaper to service in the long run. So that will influence my opinions.
Hey Ted,
No time to go through the the whole post now but what are you looking for me to add specifically?
BTW Saw you were deleted on that other board. Shocker.
TO ALL LONGS...
Some of you trust me and some of you don't. For those of you who do, I will be crunching these numbers later this evening and posting some deep FA to the board. Please don't let some of these posters who are posting lies shake you on what these numbers really say. At first glance, they are VERY strong year to year. And as for the O/S which some keep crying is higher. We've heard that all before. PBLS told us late last year what to expect financially and they were 99% on the money. They told us by or before June 15th and they were on the money. They told us 815M O/S and I believe they will be 99% on the money.
Expect me to post later this evening and in the meantime ignore the jibberish on EBITDA, Other Income, eps etc.
OT-Ted...
Must have had the sheet in your pocket when it rained...hate it when that happens. ;)
No need to shut up. Just remember "Wise people treasure knowledge, but the babbling of a fool invites trouble. " What you post on these boards does have an effect, albiet a small one.
GLTY. eom.
I know that Ted. I was making a funny.
Can I get a witness up in here!?! ;)
(Please read in a Rev. Al Sharpton voice...)
Electric Kool-aid acid test? Like way back when I don't remember? ;)
Read through all your posts. Even that post was mis-information. Have you honestly ever really evaluated financials before? Are you here for the truth? Or to put negative spin on everything that comes our way? I am highly sceptical of all my pennies, but if you have bought this, why would you always be negative on a stock you just purchased in May and are already up some 50%? Seems strange to me.
Margin is improved. Working Capital has improved. Current Ratio is improved. Acid test is strong for the industry. Year over year, a CPA has said, this is the real deal, making money, great book value etc.
You are “new to PBLS.” Never have said that you bought PBLS. I am a local kool-aid drinker who is a good natured person. Please don’t make me make you my first IGGY. This is a day some of us have been waiting for many years. And Irish, you just got more truth than you’ve had in many years and you are still negative too? Come on, start being negative after they release the share structure. They've held their deadline so far. They will keep it tomorrow. There are tons of new eyes on this today (just look at the boardmarks), and you are hurting your own investment. Have a bloody mary. Be happy. It's a good day to be a long-term bag holding PBLSers...
Other Income Questions:
You guys keep in mind that when our PBLS completes an acquisition or merger, there are sometimes heavy one-time charges or gains that can occur. These are irregular and need to be set aside so that evaluating the pro-formas can be done as objectively as possible. These types of expenses do not compose part of the ongoing cost structure of the business, and therefore can unfairly weigh on short-term profit numbers. So it's good to set them apart, and tell FA folks like me that "this isn't from our normal course of business so it might not be there next time we release numbers..." Again, this is just Ren's MOSO.
http://www.investorwords.com/3522/other_income.html
Definition
Term on an earnings report used to represent income from activities other than normal business operations, such as investment interest, foreign exchange gains, rent income, and profit from the sale of non-inventory assets.
http://www.answers.com/topic/other-income
Other Income
Heading on a profit and loss statement for income from activities not in the normal course of business: sometimes called other revenue. Examples: interest on customers' notes, dividends and interest from investments, profit from the disposal of assets other than inventory, gain on foreign exchange, miscellaneous rent income. See also Extraordinary Item.
Extraordinary Item
Gains or losses included in a company's financial statements, which are infrequent and unusual in nature. These are usually explained further in the "notes to the financial statements."
"Before in the PR, the income was reported as around $7 mil. AFTER these items. Thus, 2005 will show a loss."
Not true if they had capital loss carry forwards. In 2005, EBITDA = NI because of the loss carries. That's why EBITDA could also be very close to NI in 2006 as well. That's the major perk to buying distressed companies; you also get to buy their write-offs essentially.
Agree that we still need some info, but this is a HUGE first step. "Here's some of our numbers boys and the CPA and SEC attorney say they are correct. More to follow."
Always best in the pinks to get it straight from the horses mouth IMO. No offense, but I don't trust anyone here and that's why I still have money to trade with. ;)
Allie, I do have to say that at this point this is a very good board. Good job and thanks to you and other mods for trying to be positive but also objective.
Okay, okay, I know what I should do...
Where's the financial and share structure PR? Shouldn't we be seeing that tomorrow????
(If I get what I wish for again, some of you owe me a beer. And since I have such refined tastes, make it a 12er of High Life from each of ya.)
Honestly? Still waiting on my Chicago friend to decipher what their answers mean! ;)
Again, all of this is a foreign language to me a far away from the world of Real estate investment, land development, mortgages etc that I personally live in. Earlier my friend had called Spooz' product "smoke and mirrors." The TT PR made him re-evaluate. And I do like the idea that he is not financially or emotionally involved and highly skeptical of pennies. That makes him more objective than me and I will post his response to Paul and Darryl's comments...
Their prompt response did encourage me. One of my litmus tests for investing in pennies is the management team. I had a high opinion of their resumes and experience. Now I have an even higher opinion of their transparency and follow through.
Posted by: Renavatio
In reply to: None Date:6/12/2007 9:49:04 PM
Post #of 40381
Shouldn't we expect to see volume picking up
-------------------------------------------------------------
Sometimes I hate it when I get what I wish for. Honestly though, I don't think today's type of volume is exactly what I was looking for... =
Darryl's response to the same questions:
"Mike,
SpoozToolz is connected to the TT exchange gateway for receiving exchange data (price feed). Orders entered via SpoozToolz are sent via the gateway to the TT server at the brokers back office. TT has set this relationship up with over 110 brokerage firms, it is simple and fast. >From the SpoozToolz perspective the customer can simply install SpoozToolz and log on with his brokerage account info (must be one of the 110 brokers) and be connected to his brokers back office for older entry and reporting. You should note that this is not using the TT MD Trader front end for order entry just the X_Trader fix adapter gateway for brokerage connectivity. TT charges the broker/FCM a fee of 5 cents per side for use of the gateway, Some brokers pass though the charge others simply absorb it. A list of the compatible brokers can be found at http://www.tradingtechnologies.com/ under TT Distributors. The relationship your friend is concerned about already exists and brokers do not view MD Trader, SpoozToolz, Strategy Runner, Profit X or Ninja Trader (front ends using the TT Gateway) as competitors but value added trading solutions providing them with additional transaction revenue.
SpoozToolz has also developed two add on modules of functionality for order entry that are unique and far advanced of TT’s MD trader. See the attached word doc. The Custom Pricing Module will be available for $200 per month and the Custom Auto Spreader for $400 per month, much less than the $1200 TT front end and far more functional for Depth of Market trading. Currently we are able to offer these in an always centered format that does not encroach on the TT patents for MD Trader. Additionally, we have developed highly advanced DOM trading decks that utilize features that come under the TT patents. We have a method by which we can offer these to the public under a patent license agreement with TT, however these patents may be overturned in the courts later this month. We are waiting to see which way to go on products using TT features.
Thank you,
Darryl Dennis
My email and response from Paul:
Mike,
My answers are in red below. I hope I have answered them as completely as possible, however, I would invite your trader friend to stop by the Spooz offices if he/she has additional questions.
Best Regards,
Paul
--------------------------------------------------------------------------------
From:
Sent: Tuesday, June 12, 2007 8:40 PM
To: pstrickland@spooz.com; ddennis@spooz.com
Subject: Some Investor Questions about Spooz Software & TT Relationship
Hi Paul & Darryl,
I am a new investor with SPZI and had a friend who is far more educated than me on the subject look into your products and evaluate your relationship with Trading Technologies. Please forgive me, but my friend who is a derivatives trader there in Chicago had a few questions for me to pass on to you. I bought SPZI based solely on technicals but if there is some real merit to the Spooz story, then I will switch my strategy to more of a long term hold and will acquire a larger position (probably in the 10M share range). So please do help me answer the following questions. I know you are busy, but I appreciate it very much. It also might be productive to get my friend to do the product demo at some point in the future…
Q-I was saying that routing the orders through TT is a huge improvement to the business plan. TT is the largest front-end provider of trading software for professional traders. I've used their software for years and know it inside and out. I was recently offered a position at their company. It’s rated one of the best places to work and they are one of the largest growing trading-related firms in the world. They have basically cornered the market in front-end trading execution software- its quite a feat. The only problem is that even though Spooz is teaming up with TT, they then have to make the relationship with TT an acceptable format for the brokerage firm that the end user is holding his capital with.
A-We market through brokers. The brokers are, in reality our customer, so, since TT already connects to 110 brokers, we will approach those brokers to enter into joint marketing agreements. These brokers look at SpoozToolz as a value-add. In other words it will accomplish one of two things for a broker/distributor partner; 1) It will attract new customers, 2) it will cause existing customers increase trade frequency and volume. Also, TT has to be charging a fee for this relationship. I used to pay $1200 a month to use their software as a professional trader, which is the cheapest rate a person could achieve. TT charges $ 0.05 per side for each contract traded, except in the instance of spreads, where the TT charge remains the same. The broker pays this cost. In addition, TT may, or may not, charge our customers an additional $ 0.10 per side if their patents remain in tact, but will only be the case if these4 trades are executed on our vertical depth book. The upshot is that TT makes, at most, $ 0.15 per side for outrights or spreads. All of these costs are passed on to Spooz customers.
Q-Their software is revolutionary and reliable, with access to all major futures exchanges in the world. Now the problem is, with this new relationship, what will the third party broker do to make this relationship compatible with the firm that is monitoring and controlling the risk and financial parameters of the trader.
A-This is accomplished through a TT product called X – Risk. All compatible brokers set up global, and individual, risk perameters that filter executions. This is totally controlled by the broker where the customer holds his/her account.
Q-My guess is that there is little they will do to improve compatibility, since brokers want the order routed through them and would NOT be happy to see that the order is routed through an electronic front-end platform that is the giant of the industry and directly competes with their own proprietary software. So, with this new relationship with TT, how will the third party broker respond to make this compatible with the trader's account? There has to be an approved account to trade through where the capital risk and limitations are determined before you can route orders through TT. Is that relationship in order? How is Spooz going to proceed to make that work?”
A-These relationships have already been completed. The broker does not care whether a trader is executing on X-Trader, the TT Auto-spreader, of SpoozToolz. This is transparent to the broker, and any risk profile that currently exists would not change regardless of the front-end application.
What about PBLS?
815M o/s claimed by management. $200M+ of Revenues. Naked short position estimated to be between 250M-1B shares. Full financials and share structure coming by Friday should shed some light on the subject. The darkside tried to take it down today triggering GTC sell orders before the news...tons of ugly 5000 share sells but it rebounded nicely by eod.
One to watch IMO.
Since they already have a business relationship in place with Cherokee Environmental, I would think that they have any environmental liabilities covered. After all, hedging superfund liabilities for developers/businesses/land owners is what made Cherokee billions in revenues so far.
Scottrade is showing .027/.029
Hey Paul & Ron,
Please get us off the pinks. This criminal behavior makes us sick to.
Sincerely,
PBLS Investors
With the current action, why do I suddenly hear William Wallace yelling "hold, hold, hold..." in my head? Mel Gibson in a skirt...yuk.
I need counseling...:)
Good thing for us, is that like me, your penny predictions are typically wrong! ;)
Time for another beer my friend as we continue to watch paint dry this week...
Agreed. I take doubles when I have them and move to free shares. But I'm banking on what I do know about this stock enough to not sell for the tax loss, to buy when I was down more than 75%, and to do some very creative things to be able to buy more. This is my only long hold penny. At this point, I'm either a PBLS bag holder with a cert for a souvenir or am moving at least 6 blocks closer to the ocean...
Either way, I guess I still win because I live at the beach!
And by the way, as I grew up on a farm, I appreciate the bushel analogy. My granddad used to pay me $5 to pick a bushel of peanuts...he was a wise man as it took a determined 10 year old all day and kept me out of his hair while he did all the real work...
I have no idea what that means but I will pass it on to my friend, see what his reply is, and wait as well for Paul and Darryl's response (if and when it comes though I understand they have a good history of follow up). Thank you for the time spent on the response.
Spooz has passed several of my first litmus tests but I am still not convinced that this isn't anything more than a technical play. If it is, I will move some profits over from a few of my other short term holds and move to the 1M share mark. If not, I will take profits when the double presents itself. For me, hitting a home run is easier with half a bat than with no bat at all.
Just sent some questions from my friend to Paul and Darryl about the TT relationship (this is all greek to me anyway but I might load up if there is more than a technical play here)...
I'll post some of this so the board can take a stab at it too:
"With this new relationship with TT, how will the third party broker respond to make this compatible with the trader's account? There has to be an approved account to trade through where the capital risk and limitations are determined before you can route orders through TT. Is that relationship in order? How is Spooz going to proceed to make that work?"
Okay you Spooz experts, take a free stab at it...
Maybe. I'd think that they would be telling friends and family to load up though right before the big event, if the big event comes. And sorry to sound pessimistic to the newbies, but we're all thinking it even if we don't want to admit it. After all, today, right now, this is still a non-transparent pink that has thrown us very few meaty bones in the last 12-18 months.
But here we go, PUMP (insert some overtly positive expression that is not a rhino, monkey or weeee)!
That was, um, ominous to say the least...wow. Hopefully you are referring to the Pennies of Yesteryear and not PBLS, and most of us on this board can name a few...
Shouldn't we expect to see volume picking up as "inside knowledge" buys in anticipation of coming good news?
Just a thought. If we don't see volume picking up by Thursday pre-news, I'm personally going to start getting concerned. But again, that's what the champagne of beers is for...the long, hard wait.
Very, very true, and that's why being a Scottrade guy I certed.
Agreed. That's why I am here before the MOMO really hits. How long I will stay, well we'll just see how it plays out.