Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
With all due respect I keep asking supporters of this company to point to 1, just 1 success this management has achieved the last 3 yars. Never get an answer.So it is not unobjective to wonder why they support this management ?
Let's look at the amazing financials. Bad Debt reserve in excess of bad debts, negative assets in total. You cant have negative fixed assets.Then look at equity, all sorts of non GAAP categories. No evidence of any revenue or even regular expenses for even running a pink sheet company. And this is sign of an experienced and capable CEO ? This is basic accounting 101 and supposedly CEO has an MBA, presumably not from diploma mill.
CEO may have some technical experience and ability but after 3 years even the CEO must question whether he is in right position.
Mortgage lead business- what is happening there ? What is happening with mining business ? Since Rodney supposed to bring in $5 million though it would be easier for him to start new company, then where are these funds ?
This cant be a scam IMO as it is too inept, actually seems CEO believes his own press releases and thinks acceptable to put out press releases but never follows-up.
I think we all realize that payment wasnt made and maybe renegotiated, but if this company wishes to build credibility this doesnt seem to be the way to do it.
My opinion that IR needs to be addressed now rather than just waiting on the mill permit reflects concerns about the type of IR strategy and extreme lack of transparency, and addressing legitamate investor questions.
The company needs to address credibiity and building up credibility, it doesnt happen overnight.
1.Transparency- The company doesnt appear driven by transparency, for example not filing within 4 days an 8k on what was supposed to transpire March 6. Releaing tidbits of information such as $9 million in orders without any details- this just encourages concerns there is something wrong.
2. Management Ability to Meet Objectives- Without judging the past I think pretty fair to say management hasnt met objecives of buiding shareholder the last few years, and since management has an entrenched position in terms of voting shares and lien on the mill, even more important for management to be able to present a plan and meet objectives.
3. Type of IR- It is rather obvious whomever has been doing IR not familiar with the industry, nor of thinking ahead. Implying mine will be operating at a 37% gross profit percentage without any idea of capital requirements, terms of orders, or even if there is sufficient mill feed avoids key questions and what is frustrating according to their press releases they have done the preliminary economic assessments.
The idea of not release information as part of some strategy certainly doesnt appear to be working.Does anyone say it is working ?
Not releasing an 8k since March 6 I really think proves the point that this company needs a different attutude to shareholders IMO.
I believe I have tried to be objective and give company the benefit of the doubt, and some of my concerns the followers of the stock ( who seem to resent any questions raised) dislike. whether one believes they will meet their projections according to their stated timetable or not, control of the mill is a valuable asset.Whether one accepts there are no problems or not ultimately their needs to be more demand for the stock- that is as much management's hob as operations or finance. I guess where I differ from some is that even with mill operating if management doesnt have a better IR ability demand for stock may not occur.
I am assuming CEO's years of experience will allow him to hire competent people to run operations, and that CFO having a diverse background will be creative at meeting financial challenges though challenegs seem to be huge. IMO the IR is biggest issue as long as CFO can bring in cash every quarter.
Funny biggest red flag I see is one that no one seems concerned about, that CFO has so little faith in getting paid that he has a second position on the mill. I think larger investors would question this and be uncomfortabe with one person having voting control.
But heck we are all speculators looking at this stock, just trying to develop better understanding to speculate in the stock.I want the stock to go up as much as anyone, I just think it will take much longer than this year.Operating and permitted mills are not a dime a dozen Forget idea they will be mining in the short term as the company clearly doesnt have the capital to develop a mine and get permits to do so overnight. This is just fluff for the future, it does show some potential. They have hung their hat on an operating mill custom milling ore- more confidence CFO can bring to the table on this the better.
so where is 8k on March 6 requirements ? Or am I wrong that this was a material event ?
I agree that all the comments about a declining pps surprising since what else would someone expect of this stock until it (a) goes into production (b) is able to convince investors management can meet its plan,and this means increasing demand for the stock.
As far as communications two issues - IR strategy and minimum disclosure requirements. As far as IR strategy objective is to create more demand than supply. Fairly simple - is it working ?
For disclosure Federal system unlike that of some states or Canada, it is not a "merit" system but a discloure system.It isnt SEC job to monitor whether management is good or not, is simply if they disclose material information especially considering SEC rules and regulations, in this case SEC Guide 7.Common sense indicates if one sends out a press release discussing $200 million value properties with a payment due March 6, that it is material if on March 6 one made payment, re-negotiated payment, or didnt make the payment.
They seem to have quite a bit of legal talent according to depth of their risk factors on the 10k , though maybe not lawywers familiar with junior mining companies. SEC Guide 7 only a few pages, I dont really see that either their press releases or filings follow the type of disclosure SEC recommends.Making announcements of $200 million plus values is quite aggressive for a company with no established reserves and a declining stock price.
You are correct all a speculation and hopefully we can all arrive at a better projection through discussion and analysis. I have doubts that an operating mill will require less of a bond than one that is not operating, but certainly I do not know enough about this particular case and Colorado requirements tomake a definitive judgement.
As far as funds raised last few months based on increased outstanding shares , all I would have to go by is that (a) several people posted that company having a DTC chill is issuing shares for expenses (b) it appears that arrangement with converible note investors indicates there may have been room for another $200,000+ in convertible notes. So this shows they may have had some room to raise cash ( otherwise new convertible note swould requie an 8k filing) though I doubt was $500,000.
My projection of 150 to 200 million shares outstanding based on (a) prior use of convertible arrangements eventually resulting in more shares especially as price drops (b) minimum cash needed will be more in a year they are planning to re-open the mill than in a year the mill wasnt as close to re-opening.(c) based on their 10k disclosure re forecast cash requirements , which I didnt see where there disclosed working capital for mill.
As far as strategy issue more shares now at lower price I see this more as necessity than a strategy. All financing will be dependent onshare price and the more shares outstanding makes it more difficult to raise funds in the future. Just my opinion.
Next 10q should be interesting how much cash raised vs increased shares issued.
I really dont understand your point. First what "lie" did I post ? Second is there something wrong with posting opinions and questions ? How else does one learn ? For example I had many questions about permit process, and learnt a lot from the various answers.I hadnt a clue how one could meet permit conditions without any money, yet several supporters of stock explained based on their experience with this company that they could issue stock even with a DTC chill that vendors would accept.
I am not one creating doubts, they already exist by the company not providing information so that investors can make better informed decisions.
With those timetables, which do give them some cushion as one just doesnt flick on a switch and all bugs worked out, this implies they might not have positive cash flow until end of year- which means they need working capital to cover salaries, material costs, property and mill payments, administrative payments etc.
They will spend at least $50,000 on maintaining reporting status. they will need salaries covered, workmen's compensation insurance, any funds for increased bonding requirements, supplies for mill,whatever cash payments for mill and/or properties. They will IMO have to rely on equity financing at a discount.
I still figure they will need at least same funding as last year, 400,000+, though they may have received some in the form of using prior convertible arrangments.
If I understand situation we are 3 months into year and already over 100 million, I still project the company ends up at least in 150 to 200 million share range this year. On worst case I have nothing to go on except looking at stated capital requirements (on 10k) and the balance sheet, and at say a price of $.01, I easily could imagine company ending at 250 to 300 million shares.
If they meet the timetable and the selected financial numbers they have projected, at $.01 that would be $1 to $3 million market cap which of course seems way too low for a producing and profitable mining company.Hope you are correct they can meet their financial projections !
You are correct fact sheet updated last month shows management projecting June date for beginning mill operation. Guess with all the unanswered questions in particular funding, it just seems a bit aggressive timetable.
I also not claiming that I distrust these people, but as managers I am not sure if they can meet their projections without funding.
I dont know how I could do math on projections for the mill without estimated CAPEX, terms or orders and operating costs- they project a gross profit percentage it is true but I admit with lack of transparency hard to get comfortable with that percentage for custom milling.
Having said that if they receive a permit, if there is ore available to process through the mill, at these gold prices one has to assume mill would be profitable.
Isnt there a payment due on the mill soon ?
what is "manageable" dilution in your opinion ?
I will admit having a hard time imagining all this can be done with no funds, and that inspections won't turn up further work required etc etc, but let us assume that the permit without conditions or further delay can be granted. There is still problem of working capital to operate and administer the company, and also how to make signficiant payments due in June.
Hopefully an update will put everyone's mind at ease, but as I posted if no update and no information on what happened March 6, then it would seem there are some undisclosed problems
There are many credit-worthy companies with sound balance sheets and income statements that cant get credit these days. Generally mining companies can go to specialized banks that require bankable feasibilities studies usually. There is a reason why junior mining cmpanies typically rely on equity financing. Looking at this company's balance sheet and track record, what bank would lend to them pre-cash flow ? All I am saying is that prior to having positive cash flow this company needs additional equity or quasi-equity financing.
IMO no way CFO would take company private at this stage, as he needs equity financing to achieve business plan.
I am not stating company cant meet its challenges, but getting permit approved isnt the only issue.I agree CFO controlling voting power and having a second lien on the mill doesnt look good, but everyone know this buying these days.
I fully agree that an update is necessary. Getting mill permit without conditions would be great. However idea that banker will lend money to this company is really far-fetched IMO, credit is tight even in normal times for junior mining companies without reserves or cash flow, in particular with this balance sheet. However if they can operate mill at a profit perhaps they can get some sort of factorting or advance payment from sale of product. But lots of things have to happen before first, getting mill permit, re-negotiating liabilities, working capital and any remaining CAPEX, lots of challenges to be sure !
Incredible how low HL price is, great management but maybe time to replace IR department, or et more aggressive on acquisitions beyond current attempt. Maybe start accumulating a silver stock again, either buy company or make money on shares. This should e $7 to $10 stock IMO.
Talking about another reverse seems to get on everyone's nerves as I found out. Supporters get very annoyed, and that other website then acuses one of being the CFO ( why CFO would want to to bring up idea of another reverse is beyond me)!. I have never understood how anyone could think with a DTC chill and stock price under $.05 how "conventional" financing would be available prior to positive cash flow.
Maybe I am in down mood today, so perhaps CFO will pull rabbit out of the hat very soon !
Fair enough. It is not my intention to slam anyone, and I do try to give company benefit of the doubt. There are just so many questions that are unanswered, but this is pretty clear- March 6 was a key date for payments due and while I think pretty obvious company will have to re-negotiate terms, as a public company material events need to be reported.
I realize all stockholders would like to maintain hope and belief in the company.I sympathize that some would like to see no dilution but that is unrealistic, also that some wish to hang on to belief company can get a mill up and running, and maintain control of mill,with little cash. However we are now into March, some update is needed ! (a) what is status of deals that required payments by March 6 (b) to meet payments due in June, and funds required to stay in business and get mil up and running what are company's plan ? (c) does company still forecast a start date by September ?. These are not unreasonable questions. The concept that company cant make forward looking statements doesnt hold water since the company has already made forward looking statements to investors.
Why the silence ? It just feeds perception that maybe something is wrong.
Something wrong here , why no 8k on the March 6 projected transaction ? While I have posted it is overly-promotional IMO to claim hundreds of millions of dollars value based on potential metal in the ground without counting extraction costs and capital requirements, it is quite another for public company to not report material events. Why no news ?
Price is still very weak, does anyone have access to recent 144 filings ?
looking good !
Yes I understand you may not have all the answeres but for quite some time you have been positive on this stock in the face of continued lack of results.Since you cant provide one single initiative that has gone well, but every time a new press release is out you indicate things will get better, objectively it is
not unfair to ask why you would be positive on this stock ? Even if this Hip Hop deal were real, why would you think CEO could implement a deal ?
This company releases strange financial statements, and strange press releases on deals that never work. I like to think I am objective, again please point out something that indicates this company will prosper ?
I dont see anyway this company will go private - as a private company who would lend them money to settle the current liabilities plus projected funding requirements ( of which we can only estimate at this point) ? There is no conventional financing I know of that would be available to a company in this position.
Why would CFO go private ? He already controls voting shares, has a second position on the mill.I dont know Colorado law but I suspect CFO couldnt use his own voting shares to go private.
The March 6 date has passed, and considering the value of assets mentioned in press releases, it is certainly very material whether company met the payments required or re-negotiated them. material events are supposed to be reported 4 days after they occurred- so today there should be an 8k being filed.
I do not know whether management is honest or not,but it can be taken as very worrisome and potential indicator of problems the lack of information during this critical period.Wasn't March 6 a key date for payments ? The CFO has enormous challenges to meet and a dropping share price just make sit all the more difficult. If everything o.k. why not a general update toanswer key questions ? If this silence is a strategy it clearly isnt working.
Just my opinion that for a penny stock without positive cash flow and needs to rely on some form of equity financing that IR is very important. If story is good and stock declining - while it is a challenging time for all mining equities- then why wouldnt IR be important ? Then I look at their IR ( my numerous questions of course I have already posted) , and walk away trying to imagine even when operational and financial challenges met, do they have IR savvy to build a proper market cap.
How many junior companies have a mill that is close to being operational + custom milling possibilities + nearby exploraton properties ? Not that many. But their lack of disclosure and transparency doesn't breed confidence especially after a 5000 to 1 reverse split.
I do agree that in this market , and their DTC chill, IR can't completely turn around the situation- but certainly could improve it ! Most mining capital is via Toronto, just compare this company's press releases related to "NI43-101 reports" to those released in canada, there is quite a difference. I am conevrsant with different disclosure requirements, but this company's press releases really are so limited. I know several investors I have mentioned this stock to, most of them cringe when reading their press releases- but at least are keeping an eye out on the stock.
If he makes money from share issuances, and has more shares, obviously he has incentive for now and the future as long as people keep buying the stock, but at some point that can dry up. I have never spoken to the man so I cant hazard a guess as to his motivations except celarly he wil protect himself as he has in voting control and a seocnd on the mill.
My opinion i have expressed which is besides the huge financial challenges, the achilles heel of this company I believe is a misguided marketing strategy and implementation. time will tell.
I will take that as an answer then that CEO has achieved nothing yet for some reason that qualifies him as a good CEO.I do appreciate you providing your answer.
Ok then your reasoning is filings indicate larger players may be involved, ok then, why has there been since that announcement no investment at all incompany ? it takes several months if not a year to do necessary audits of company like BTDG - if rodney has access to funds would he not have put in $20,000 to $30,000 to get ball rollig ?
As usual with BTDG one can just look closely at press release :
Mr. Rodney P. Hunt, Chairman of B2 Digital Inc. received confirmation of the first ($5,000,000.00) in Debt financing for BTDG's re-launch and re-organization. Mr. Hunt will be securing this financing through a Standby Letter of Credit through a top bank to fund BTDG's subsidiaries and launch on a major exchange.
--so he has received debt financing to be secured by a standby letter of credit.so the press release itself states it hasnt been secured. Has it been now ?
Mr. Hunt hopes for a repeat of his previous success with his company RSI Systems, Inc. "I am working to strengthen BTDG's capital reserves," says Hunt.
--oh come on, not even $20,000 has been put in company since may 2012 press release.
"He plans on using his considerable resources in the debt and equity markets to reposition the stock from a pink sheet company to a fully reporting public company, listed on a major exchange. BTDG is poised to be strong firm," says Atonn F. Muhammad, the company President.
--BTDG has no audit nor any indication any sec reporting experience in preparing financial statements has been employed. How many years do you think is needed to start this ?
B2 Digital will be preparing for a secondary offering and use proceeds to build a strong portfolio of brands in Television, Entertainment, Digital Media and IT
--is tehre any indications CEO has the ability to turn these "brands' into profitable businesses ?
-you seem a reasonable person and I admire your continued optimism. but again i amjust asking simple questions which never get answered about this company.
How long do you think mergers take ? 1 year ?2 years ?
However you stil avoid answering 2 questions :
1.name 1 single initiative the last three years that the CEO has implemented that has brought in cash and revenue to the company ?
2. why on earth would someone merge with BTDG instead of just registering a new company , or buying a shell without all the problems ?
Who knows what is in his head. Probably he wants business to proceed,why wouldn't he, and probably he wants to make money at the same time. I just have issues with lack of transparency, and marketing strategy that almost seems designed to generate more questions than perhaps necessary from invetsors.
I am trying to be objective here , again please tell me 1 single initiative CEO has sucessfully achieved the last 3 years
Also, Rodney financing announced some ago, if this is the case why hasnt BTDG receive any money, even $50,000 for operating expenses and starting the audits ?
Let just be realistic, anything tangible I woudl appreciate knowing. The CEO probably has some technical ability, but ther eis nothing to indicate busisness management ability- or he is just confused. How in your opinion can one run a mining,mortgage lead generation, HIP HOP, and whatever else with no capital and expect sharehodlers to believe in this company ?
What do you mean funding in place ? as far as filings indicate BTDG hasnt received any funds. My question on Direct TV judgement why would Rodney invest in company with this liability when he could simply register new company and not have this liability ?
Audit will be expensive and time-consuming as they will have to go back quite a few years, and existing financial statements certainly are not US GAAP for the last several years.
There have been all sorts of annoucnements last few years regarding financing, new business ideas, etc etc etc. They never fall into place. Can you tell me if Rodney financing in place why BTDG has not received any money ?
Highly doubt company will be taken private, in the junior mining business rarely makes sense as public market pays a premium for company once production is steady, and certainly for discovery success.
As fas as SEC , what possible benefit could that bring to the table ? Company cant afford legal expense of such an action. Keep in mind SE usually has stadard review of company filings every 3 to 5 years, you can be sure when they review this company and their press releases their will be some amended filings or retractions.
As a pratical matter as shareholders we cant influence the hoops CFO has to go through to finance the company but a higher stock price will help- so IMO this is why why marketing and IR a key issue right now.
It has been a very very difficult market for junior mining stocks the past 18 months, and for a stock relying on convertible financing, with a DTC chill, there are huge difficulties getting financing these days. So on one hand I am not sure price decline is an indication of "semi-serious" management. On other hand management should be held accountable for performance- in this case the CFO ends up controlling voting stock, and having a second on the mill, so I can undestand some people questioning management.How long is reasonable for him to perform ? But shareholders stuck- whether he performs or not he controls the show.
Marketing is equally important as operations and finance, if anything price drop represents a lack of belief in management ability to meet objecives. Owning a mill that can be permitted, in an era of high gold prcies, and nearby mines, should be a story that attracts speculators- I like the story. So how does management convince market they are able to meet their own projections ?
So basically your answer is that CEO hasnt been successful in any initiative in 3 years - so only speculative reason for this stock is the potential for this Rodney fellow to actually invest the previously announced sum ? Why would he invest in BTDG if it would probaly costs less just to register a new company- can you imagine audit fees to get BTDG in order ? The Direct TV judgment ? Why would Rodney take that on ?
I hope you appreciate I am trying to think of any conceivable reason to give CEO benefit of the doubt- but as you are a supporter and cant think of any success of CEO last three year,I am still wondering how is he considered a good CO ?
Investors always tend to buy high and sell low, a dropping price is often not seen as time to accumulate more. no surprise though IMO considering the situation.
We can agree to disagree about the lack of news. I believe the SEC standard is 4 days after a material event is when an 8k is to be filed, though of course what is a material event to a degree can be subjective. To use your example- if the liability had been paid that implies (a) sufficient financing to do so which is certainly is material (b) certainly any penny stock would announce
such a financing ! If not paid, then certainly it could be construed as misleading anyone who has purchase stock on strength of those deals that they havent been paid. I suspect simply they will be re-negotiated, but it is surprising no announcement this week.
I wish CFO would have guts to believe in merits of the company to present updates whether they include some negative news or not, that alone IMO would develop credibility by answering key questions. It just feeds doubt the lack of news.OR find an IR/PR professional to take over shareholder communications. Looking at the press releases back to when cfo was appointed is quite an interesting exercise.
Goodpoint, if one believes in the management and the company why would a stock price decline in the short term be a concern ?
What is status of mill, is it now paid off ? Does CFO still have a personal second placed on the mill ?
Thanks, interesting article but really these discussions of shorting the stock seem to not take into account how market makers seem to work acording to market makers.
First, no one can show as far as I know any retail brokerage that will allow naked short selling of a sub penny stock.
Second, even if market maker shorts stock for 1 to 3 days during the settlement period, there is a limit how long they can keep a short position- and any such short sale goes against their net working capital postion analysis thereby reducing their trading ability. Most market makers I have spoken to freely admit shorting such stocks during a 1 day period, but that it is unusual for them to take a risk in shorting much longer or for larger amounts, especially for a low price stock and even more with a stock with a DTC chill.That is what market makers have told me-consistently.
The article you sent indicates the compound effect of selling on thinly-traded shares, but the reverse momentum can also be created.
IMO I cant say that some shorting doesnt on occassion occur, but I suspect in CGFI's case just a question of lack of demand for the stock over those who need to sell to raise cash.Anyway CGFI could look at DTC positions by broker, DTC totals and transfer agent totals and detemrine very quickly if there are any shorts- and eliminate the problem administratively, the fact that companies like CGFI dont do this is perhaps simply they are aware there are no net shorts.But it always sounds great to say they shorts are out there to explain a stock price decline !
Again my opinion is that it is entirely understandable why price is dropping, and that until we have more updated information hard to judge in the short term which way company is going.
yes they have 45 days after end of the quarter, plus a 5 day extension possibility.
i do find it curious the thought the reason for lack of updates, especially considering all the questions, is part of a marketing strategy. guess time will tell.
do you think they will be updating the previously announced march 6 transaction now (it would seem to meet criteria of a material event)?
With all due respect, on what basis is the CEO a good CEO ? ( besides your comment he is a nice guy).
Has ANY initiative last three years brought in revenue or positive cash flow ?
Have financial reports indicated someone conversant with modern financial reporting standards ?
Have press releases indicated a CEO who wisely chooses what business initiatives to enter into, and then can execute to meet objectives ? Do press releases appear to be overly-promotional ?
Is it a good CEO strategy to enter into what 10 business lines with no capital ?
I would like to give anyone the benefit of the doubt, so would appreciate someone who supports the company indicating 1, just 1 initiative of BTDG the last three years which has produced sales or positive cash flow ?
Or do you have other criteria of what a good CEO is ?
On the permit I had asked what were costs to meet conditions and time frame, and several people posted that costs were not that high, just "paperwork", and that many contractors could be paid in shares. It is very normal in this industry to have delays in permitting but it seems there is a strong belief that the permit without conditions wil be granted in time for the projected September re-opening date. An update certainly would be comforting !I have no way of judging the actual current status, IMO an update is long overdue, especially on the finances of the company. For me also a surprise that it seems expected that the amount of bond required for an operating facility will decline thus would free up cash for the company.
Hopefully you are correct the recent share activity and increase in authorised shares last few months provided sufficient funds for company to meet its own projections. Guess without an 8k or 10q or press release we have to wait to see.