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OK A/S nervous nellies time to explain exactly why you feel the authorized share increase was not due to a requirement for collateral by either Magna or the auditor. You guys keep saying the A/S increase is because there is way way more debt left then everyone thought. I personally think there is maybe 400 K left now BTW. You guys say that is the only reason there would be such a large raise in A/S. Not so fast my friends. Explain to me the case of another vape OTC stock I trade (Vapor Hub, VHUB). This is a company who a few months ago had to raise authorized shares 8 fold. That company only has 68 million shares outstanding but had to raise authorized to 1 billion. The debt that they owe to their lender (Typenex) was and is only a few hundred thousand dollars. There is absolutely no way on Earth that it would take over 900 million shares of VHUB (currently about 3 cents) to pay off a few hundred K of conversions. Then add to that, that the company maintained for months that they would pay the loan off in monthly installments (that is how the convertible loan is written) once monthly payments began to be due. Then add to that, that starting this month payments now have to be paid and they did pay the May payment in cash and re-iterated that they will continue monthly cash payments. Explain to me why it is needed that they have 1 billion in authorized shares if not for the very simple fact that it is used as collateral against the loan because they sure as heck have not been diluting/converting. If the lender wants an absurd amount of authorized shares as collateral then the company has to abide by that. They have no choice, they are the one that owes the money. They have no rights concerning that. If the auditor wants the company to have a ridiculous amount of authorized shares then if the company wants to keep that auditor then they have to abide or else get kicked to the curb and find another auditor. Long story short, absolutely authorized shares get used as collateral and to an absurd degree. Reserved Risk posted a very good pie chart that showed usage of the authorized shares. Folks should take a look at it because it looks as though it is probably very close to being accurate. BTW, I made very good money buying VHUB at 1.5 cents when A/S nervous nellies were panicking after the A/S increase. Guess what? It recently hit 4 cents before cooling off :)
It is pretty obvious that it was the Magna debt that was "miscalculated". Besides Magna all notes have been paid off. Exception being that modest one coming in a couple of weeks. Magna has been getting paid off and on through conversions for how long now? Many months, it stated last year right? Whatever the "miscalculation" of the Magna debt no matter how you slice it the Magna debt has been reduced significantly since the conversions started back last November is what I remember them starting anyway.
No problem. I agree with you though they need to make a seafood link or something on the new lattenofoodcorp.com website. Seems that they are updating it and adding things the last couple of weeks. It would make it easier for people to know LATF still has Mekonza.
Recent quarterly report lists Mekonza as did the annual report. It is in there, read the reports. No need to speculate on that. It is in the reports.
Nice post. Overall I agree with your assessment. A lot of what is being posted is way over-blown, not nearly as dire as some make it sound like. Anyway people can have their opinions and that is fine. I loaded a lot of shares today myself.
What are you talking about? Share structure is one metric. Profitability is another metric. Share structure has nothing to do with profitability. A company can have one share outstanding and be losing money. Even with only one share outstanding if they are not profitable then they are simply not profitable. On the other hand a company can have a massive amount of shares outstanding but if they are profitable then they are profitable.
The stock is under valued. I agree with you that it is.
Yea, that's what I'm saying. Some lenders and auditors want an even more extreme number. Also the 200k came from this MB, never the company. When folks were saying 200K I thought there was still more like 500-600K left. Anyway people can bet which ever way they want to. I'm going to bet that the math for conversions was a little bit screwed up and there is a little more debt left then the company thought. Not a massive amount, but maybe a couple hundred K difference. Anyway no one including the company wants another A/S increase so it got raised to an amount that is extreme. I'm betting in the end O/S will be somewhere between 4-5 billion. I'm betting that debt is around 75-80% done. What I'm saying is the doom and gloom here is exaggerated. It's my bet though and I like rolling dice. It is why I play this market place.
Not everyone. I bought 8s to re-enter. Everyone is pretty panicked, guess I see why. The way I see it is the math for the convertibles was not completely accurate. That being said when you get a loan for a certain amount that number does not change. All the loans were added up and that number was the number. There is no way that number got screwed up. 5 year olds can do that math. The actual conversion math is what seems to have been somewhat messed up. Maybe at this point in time only 200k was left but now it really is 500k or whatever. I don't think it will be a massive difference. I really don't see how. Why did he raise authorized so much? It seems as though he is sick of raising it and never wants to do it again so he is raising it a lot passed what it really needs to be to clear out the remaining debt. He's making sure that no circumstances will make him raise it again. Also some converters demand an absurd amount of authorized as collateral. Some auditors do as well. I have another stock that I trade that had to increase their authorized 8 fold for a loan that is only a couple hundred K. On that company I did the math and if the loan was converted the authorized in reality would only need to be raised X 2, not X 8, but the lender required the X 8 for collateral and so the company had to do it.
Thanks for the input Bernard. Those are some possibilities. Sometimes it is something no one is even thinking of though. I had a hunch about something and looked into it and I found that there a quite a few companies that are late in this sector. Kind of weird, maybe just maybe something tied to the sector in general?
It is when the 50 day moving average crosses above the 200 day moving average. It is a technical indicator that is bullish. The opposite is a death cross. This is when the 50 day moving average crosses below the 200 day moving average. A death cross is a bearish indicator. As is the same with all indicators do not buy/sell/hold just off of those indicators. The fundamental metrics of a stock along with chart indicators (technicals) along with sentiment all need to be factors in regards to the decision of whether to buy/sell/hold. Some people only use fundamentals, some only use charts, some only play sentiment (those are called momentum traders). It is best if you use everything. I for instance like to use fundamentals to find WHAT to buy but I use chart indicators to show me WHEN to execute.
Golden Cross has formed.
I got back in late last week. Buying 8s worked for me last time. Will probably work again for me. I like seeing EYE here. Smart person and a very good chart reader. Good luck to both you and EYE.
Looks like the top line will be similar to last quarter. I can live with that. PR awhile back stated they had cut costs a good bit. Once the quarterly is reported I'm thinking it shows a better bottom line then last quarter. Cost cutting however can slow revenue growth which is what I bet happened and why the top line probably didn't grow this past quarter. If it makes a difference to the bottom line though then I will say it was a good give and take. To grow the top line the best way VHUB needs to ink a nice size distribution deal. I have a hunch this will indeed happen. They kind of hinted at it in that PR about the vape show. Overall, I am very confident about VHUB.
You expect a pink sheet to have audited fins? Well, if you do you will be disappointed 90% of the time. Boy that's halarious, expecting a pink to have audited financials.
3.2 million in revs 250k in net profit. This is what LATF did in the first quarter. This is a pink sheet. Those numbers are about the best you will find of a pink sheet company. If anyone knows of a pink sheet that brings in better then 3.2 million in revenue and 250K in net profits in a quarter please let me know because I'd like to throw some money at it.
Recent T trades was a note converter converting shares. People need to learn this market place. There is a lot of ignorance and untruths. OTC companies raise capital by getting a loan not by dumping shares. The loans are almost always convertible into shares after a certain period of time. The dumpage comes from the note converters. It is common business in the OTC. T trades are regularly used by MMs when note conversions are happening but it isn't the only reason that an OTC dealer might use a T trade. Anyway, it looks to me that a note has been converting the last 3 weeks or so. You can tell by which MMs are on the ask, T trades, amount of volume, among other things. Today the stock appeared to trade "clean". No major dumping into the bid, I didn't see a T trade and volume wasn't indicative of note conversions. If the conversion is over with there will probably be a pop as is normal after note conversions end. Now if you think I'm full of it regarding note conversions in the OTC then feel free to read this Bloomberg article that discusses it in length and interviews the owner of one of these loan companies.
http://www.bloomberg.com/news/articles/2015-03-12/josh-sason-made-millions-from-penny-stock-financing?cmpid=yhoo
You know how penny stocks get a 3 day run and then crash? We did not see that here. We saw a big candle the other day that was caused by fundamentals. I expect VHUB will climb up over time. It isn't going to do one of those infamous penny stock super-nova parabolic moves and crash. The stock will act more like a Nasdaq stock. To me that means to get the most gain here is to actually play it long. Very rare for an OTC stock, but that's what we have.
Wow, sold out of their entire inventory at the show. Folks really like VHUB's products. Things looking good here. I myself am staying long with VHUB. I have a very sizable unrealized profit here but I'm not going to sell. I'm doing something that I never do and that is play a penny stock long. I made the decision a couple of months ago and I feel even more comfortable with it as time moves forward. Current market cap should be 10 million to 25 million dollars. Current cap is about 2 million. This will be rectified.
No one is too late here. This is why.
I tell it like it is. I use charts and numbers.
Fundamentals - The current market cap of VHUB is now just over 2 million dollars. It is the cheapest vape/ecig stock. A PR put out a couple of weeks ago stated they made 1.5 million in revenue off of just one product (limitless mod) in just 5 months. The management states that they make very good margins on it. That is just one product. It is their best product but it is only one. They sell numerous products. Math shows without any growth factored in that just the one product is on pace for 3.6 million in revenue in a calendar year (1.5 million / 5 months = .3 million a month X 12 months = 3.6 million). This is not factoring in growth or any sales of any other products. Another PR said that in just two days they sold over 60k of products at a vape show. Also they met some overseas distributors. Is an overseas distribution contract/s coming? Maybe, have to wait on that. Then today they held to what they said an did make a cash payment on the loan that they owe. They said awhile back they intend to pay the loan back with cash and again today they said that they intend to keep paying the loan back in cash. They are honoring their intent. Now we know at a show what they sold in two days. We know one product is selling at a pace of 3.6 million annually. We know the market cap is just over 2 million dollars. We know it is the cheapest stock of the whole sector and now we know they are paying their loan back with cash. Also from past filings one can see that what they actually owed on the loan was a couple hundred K, nothing massive. With those kinds of sales and the fact that they have the ability to pay this loan back in cash it seems very likely that fundamentally they are getting strong and are very under-valued.
Charts - VHUB was rolling along at the beginning of the year. Then panic and worry struck about paying back the loan. Shares or cash was the question. Most bet they would do it with shares. At the beginning of February you see this fear in the chart. VHUB was trying to push past 5 cents but then the panic hit and VHUB sold off to under two cents. After that VHUB was stuck in a channel. It tried several times but it could not breach the 2.5 cent level. Today it broke that level easily and on volume of over 6 times the 10 day average. It is over the 50 day moving average. It is over the 200 day 100 day and 10 day moving averages. The 50 day is moving up and will punch through the 200 day soon which will form a golden cross. The PAR/SAR is giving upward pressure. On and on. Bottom line is that technically this stock is as appealing as it gets and should reach beast mode soon.
VHUB, chart = very bullish
VHUB, fundamentals = very bullish
VHUB market cap = 2.2 million = very cheap = not too late at all to get in.
I like you, you are smart. You keep your eyes on VHUB and seems that you were first to pounce on this news. I believe your quickness will be rewarded. VHUB is not widely known so effects of this news will be a multi-day event.
Whoever sold/is selling you are making a terrible mistake IMO. Can you read a chart? It moved past .024 and then past .026, it broke out. Chart shows minimum resistance all the way up to 5 cents. Why sell now? Also lets look at what we know. They are paying the loan back with cash. They have made 1.5 million in revenue from just one product (limitless mod) in just 5 months. Also they made over 60,000 in revs in just one weekend at a show. With that said will upcoming financials probably be good or bad? Look folks, this really isn't very hard. Be a little smarter and think. Good day here and congrats to those like me who held and bought low while everyone else was being chicken little about dilution which never actually happened.
Well guess I was right. Now watch what happens because the fear that they would not pay back in cash is pretty much the only reason VHUB's pps was down here. Remember VHUB is the cheapest stock in the entire sector. This will be rectified.
On Friday is my guess.
Ched you get it. Anyway you slice it and even using conservative numbers as I do the remaining debt just got a beat down. 20-25% if not more of it was removed today alone.
?What?
Hey, I just try to go conservative. I get 580 mil X 0007 then X .4 (percentage of volume) although today it certainly looks as though conversions were well over half of the volume. At any rate a substantial amount of debt was paid just today alone.
580 million in volume today. That paid off, let's see roughly 150k or so of debt just today. Somewhere in that neighborhood. No R/S this year and no conversions of preferred shares this year. Stock is at PAR value. No new "toxic" debt taken this year, as I have not seen any filings showing it. Hmmm, yep risk is pretty much as low as it can go right here. Standing in the way of a very big run are note converters but they will be out soon and especially with this volume. Once that happens VPOR can trade clean and that's when these penny stocks can get on a roll. If the next quarterly shows good revs all is set for a big run once converters are done. If in the chance they show a profit (it would be a nice surprise) then this has a monster run once converters are done. BTW, I currently calculate debt now being about 550K after today. Didn't Dror say something about one more CASH debt payment? Yes he did. I wonder how much he has planned to slap on the debt. Maybe 200K cash payment? I'd be happy with that. He used the word "substantial" so I guess we'll find out what he considers that to be.
You are correct about the actual dollar amount. Was every trade here today a buy? Am I seeing that right and on pretty decent volume. Well if that continues that "wall" should have a short life span.
VHUB is looking to breakout. It looks ready. No dilution has been happening and I mean zero. The PAR/SAR is pushing up. It is above the 50 day moving avg. The key for it is too break above .024. Someone knows this and has a wall set around that pps for weeks. Bust through that wall and up it goes.
Vapor Hub International Reports Successes At Las Vegas Vape Show
8:40 AM ET 5/6/15 | PR Newswire
"Vapor Hub International Inc. (OTC: VHUB) (www.vapor-hub.com) is pleased to announce that it sold $62,000 worth of product at the recent Vape Summit Show in Las Vegas, the largest Vape convention in America.
"We are proud that Vapor Hub had one of the largest and best booths at the show. It was an excellent opportunity to make contact with U.S. distributors and we also met a number of international distributors who we will follow up with in Europe this week," said Kyle Winther, VHUB CEO.
"We also are very proud about how well our products are selling in the Vape community," Mr. Winther said. "This has now become a multi-billion dollar sector."
Well the way I see it that right there, just those two days alone could be a very nice debt payment. Things are looking really good here right now.
An update would be nice. The 4th was two trading days ago. Looking at volume there is zero dilution.
You didn't read the PR
"After a lot of shareholder inquiries Latteno Food Corp. wants to reassure shareholders it has no plans for a reverse split. Company is in the process of exploring ways to maximize shareholder value."
Mr. YWC, don't you love the number 11? I know I love it. That's two in a row.
Insiders were buying shares right around when those numbers were released to the public as well. The author also doesn't mention that either. I've never heard of the Street Authority Network BTW, who the author writes for. I'll be nice and just say that his write up could have been much better.
That info isn't really new or anything. The author is using the filings released in early March. Anything from that was factored in a long time ago. Just because someone decides to write about it now doesn't make it new info. The author fails to talk about Swift's book value which shows to be 18 dollars a share and also does not discuss Swift's cost cutting measures and does not talk about their assets and properties. Swift knows how to survive and with WTI oil now up trending and touching $60 the worst days are probably behind. When those numbers were actually new info Swift's pps went down to 2 dollars. The author should have written what they wrote back in March, too late now. Almost makes me think he missed the buy in at the low 2s.
I agree. I have my ticket choo choo
Yup, bought a good chunk today myself.
This is why I am in this stock. It is a very legitimate OTC stock and has good products and good management for an OTC company. They are fully reporting and file to the SEC. The share structure is miniscule. The market cap is miniscule. This company made 1.5 million in revenue from just one product in just 5 months. That 1.5 million in revenue from just that one product in just 5 months equals the 1.5 million market cap. That product is the limitless mod. The CEO says that margins on that product are very good. When I look around at other vape companies I see market caps of 8 million, 12 million, 4 million, 18 million, some even higher yet VHUB is 1.5 million and yet has better metrics then peers.
The balance sheet of VHUB isn't beautiful but it isn't ugly. It actually has one of the better balance sheets of the sector. Many expect dilution to come. First though VHUB has expressed in the past that they intend to make cash payments. Along with that we now know revenues from just one product in just 5 months with good margins was 1.5 million so I don't think it is too much of a reach to think they could make cash payments. Second they don't owe nearly as much as some act like they do. If the notes convert we are looking at a few hundred K of dilution. That is not massive, it would be modest and although people fear it, it does not justify a paltry 1.5 million dollar market cap. At worst case by my math if they made no cash payments at all and dilution occurred to pay off all debt then the O/S would maybe double. That would leave the market cap at 3 million dollars at this pps. Well the sells of just one product (limitless mod) without even factoring in growth is on pace for 3.6 million in revenues on a yearly basis. Therefore, at a worst case dilution scenario at this pps the market cap would be 3 million for a company generating yearly sales of just one product of 3.6 million. The stock is the cheapest in the entire sector. If O/S double then the stock would still be the cheapest in the sector.
I wanted to buy a vape stock. I wanted in on this new growth sector. VHUB to me is clearly the best deal. I went through all of the vape companies and this is top dog considering all metrics combined. Others like ecig have much more revenue but they have tens of millions of debt and can't turn a profit. Companies like VAPE that many think are questionable and have sells much much smaller then VHUB have much larger market caps. The closest company to VHUB in this sector is VPOR. IMO VPOR is good. Has similar sales numbers and also has really good products. The metrics between VHUB and VPOR are very close but VPOR still has much more convertible debt then VHUB and yet has a market cap more then double of VHUB. Look at their filings and their balance sheets. Compare VHUB to VPOR. Very similar metrics but VHUB is far cheaper. I will add that I also think VPOR is under-valued and I owe some of it too.
My conclusion is that dilution fears ran out of control here. It got too far carried away. The pps suffered as though massive dilution of several million dollars is coming. The problem with fear is that it prevents some from seizing opportunity. If there is dilution there is no massive multi-million dollar debt that VHUB owes. They actually owe a few hundred thousand. It would be mild or modest dilution. I would expect that the share structure and market cap could swallow it without much pain. Then there is the revelation that the revenue coming in from just one product might be able to allow VHUB to make cash payments whereby limiting or even eliminating possible dilution. I believe my math is correct on this and I believe this company is severely under-valued. I believe that soon people will come to realize that the fear of massive dilution is incorrect and over-blown. During the next month I believe that people will watch and to the surprise of many will see that dilution if it even comes at all is very mild. This sector is too new and has too much potential. VHUB with it's products is a top dog in the sector and yet the cheapest stock in the sector. I see great opportunity here.
A "T" trade is an after hours trade however there is no after hours on the OTC. This means that the market makers are showing settled trades from the trading day after hours. That is all it is. Some will say it is dilution but they really have no clue if it is or isn't. I have seen many many OTC stocks have "T" trades and much of the time the company was not diluting. It is very common to see "T" trades on the OTC even though there is no after market trading. What this means is that market makers like to play a lot of games with these stocks. The "T" trades could be the market makers shorting the stock and then using a "T" trade to cover or it could be them hiding trades throughout the day or it could be dilution. There is absolutely no way at all to know why the market maker is using a "T" trade on a stock on the OTC. Only the market maker knows why the "T" trade was used (because they are the ones that did it) and for what purpose.