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I think the CEO would climb a mountain to avoid a RS at this point.
Those bids can stack up in a flash when it counts. You're right as long as your buy orders get filled. Hard to accumulate that way. I usually stack out a position then from time to time add or reduce as indicated by the price, volume, and other indicators.
The green uptick on opening held for a whole hour before that 100 share downtick. That's progress I suppose.
I agree with one caveat. Based on the stock price of common shares, RNVA is undervalued, but the common share equivalency of preferred shares unrealistically overvalues the company. If one or more of the preferred shareholders intend to cash in on the run, no way does the run hold. It will balloon the OS. I think the company will have to clean up its internal financial structure in some manner first. Is that consistent with your thinking?
Nothing at the moment. Though the P/L has vastly improved over the last year or so, the stock is not a buy until we hear some news from the CEO explaining how the company plans to clean up the financial structure..., and the news better be good. Another RS could bring the company down, not just the shareholders.
You'll see in the last 10-K, the preferred shareholders need to formally, officially, and publicly eat some dilution common shareholders have already eaten. No one is buying now for fear that would only help preferred shareholders convert undiluted preferred shares to common shares and dump them, all the time adding to the OS.
That said, some of us think some sort of deal that will clean up the share structure might be in the works, so RNVA is worth placing on your watchlist.
The 30 billion OS is not what weighs on the stock. It's the common share equivalency of the preferred shares. You were right to raise the alarm about that. It got me thinking about what sort of conversations have taken place internally. The preferred shareholders and CEO should have renegotiated those agreements months ago. They need to take a haircut in the short run for all to gain in the long run. We have all had to do that at one time or another. Anything less is downright dysfunctional.
The consensus of small investors:
Preferred shareholders enjoy equity protections common shareholders don't. "Preferred" shares, however, do not mean "risk-free" shares. For the privilege, preferred shareholders (in theory) take on an insider's responsibility to act in the best interest of the company and its common shareholders. RNVA is a classic example of that principle put to the test. The CEO has obviously put in the work to create the rare opportunity a turnaround brings, but the turnaround is not complete until the principal investors do their part.
OTC Market conditions have not been kind to RNVA, but the rain falls on both the common and the preferred shareholder. The principal investors, and only the principal investors, can make the turnaround sustainable. The bulls think (or hope) the principals are smart enough to recognize market conditions as they are, not as we all wish they were. The bears don't think so, or they have grave doubts. That's the only real difference of opinion here.
The ball is in the court of the CEO and principal investors.
I hope the company insiders read my posts today. You probably get my drift.
jmoney, the bulls appreciate your enthusiasm, BUT all the regulars on this board, bull or bear, recognize the stock price is in a holding pattern until we see some good news on the financial side. The bulls all agree the CEO is doing a great job on the P/L, and most bears wouldn't disagree. But bulls are holding, not adding and not encouraging others to buy at this time. I may add when the right time comes.
Plenty of traders have RNVA on their watchlists. My advice, kick back and chill while all wait to see what the company does to get its financial house in order. The sample on this board indicates RNVA has a fair number of shareholders who see it as a great long-term investment potentially, but the company needs to make the financials work for shareholders.
I think the bulls are all fine with low or no volume for the time being, except for maybe jmoney.
That's pretty much my thinking too, or something else that cleans up the financial structure. The preferred shareholders have to take a haircut either way. I'm still a hold as well.
No kidding. If the preferred shareholders would just take their medicine and cut a realistic deal to take the weight off the share structure, the stock will fly.
The Q1 10-K shows the CEO is doing a great job with operations. Now he needs to clean up the financial structure (no RS) and show some improvement in the balance sheet. Preferred shareholders need to cooperate for the benefit of all shareholders, or they will bring down the house and face dilution the hard way. Push has come to shove.
It will if the CEO and other preferred shareholders would reach agreement to formally eat most of the dilution to date, either among themselves or with an institutional investor or new principal investor(s). They'll never be able to convert and cash in at the common share equivalency, and the company can't fix that with another RS. The common share equivalency of preferred shares needs to be more like two times the OS instead of two times the AS. I have to believe the CEO is working on that.
No doubt, the principal investment (preferred share structure) in RNVA needs a reset. An institutional investor or new principal investors will expect preferred shareholders to eat the lion's share of past dilution. That said, if the principals are realistic (and I think they are), some sort of deal is in the works. That would be the best news common shareholders could get.
We're all altruists here.
The big boards keep hitting new highs. That should lead some bargain hunters back into pink sheets. The OTC market has been depressed for a couple of years. In better conditions RNVA would not have been driven down to 000s, and the revenue and P/L trends would have definitely drawn more street trading by now. RNVA is oversold and undervalued.
The OS is 30 billion. The AS is 250 billion. The 500 billion common share equivalency is the equity position of preferred shareholders, two-thirds basically. Any of them can convert to common shares and loose their equity position, but their principal investments only convert to a few billion shares. The equivalency is the preferred shareholders' cost basis, not the number of shares they hold warrants for, which have been diluted down to a small fraction of the equivalency.
Wrong. The cash payout is roughly equivalent to 500 billion shares at the market price, but the conversions would only amount to a few billion. You can go through the text of the 10-K and add them up if you want, but there are not many. I've reviewed that section several times. Dilution affected preferred shareholders the same as, if not worse than, common shareholders.
You can call me a pumper if you want. It's false, but that's your thing. At least my statements here are truthful.
I read about a CEO who has a lawsuit pending that will require social media like IHub to reveal user information for defamation cases. I'm pulling for him. That way people will have to quit calling companies and CEOs with current, audited, fully SEC compliant filings "scams." The legal standard for defamation is knowingly false or "willful disregard" for the truth. If they prove malice, they get punitive damages.
The institutional investors are in a bit of a conundrum however. If you follow the Q1 10-K filing, the cash payoff of all preferred shareholders (and small amount of direct convertible debt) would be equal to roughly 500 billion common shares at .0001. But the preferred shares and debentures only convert to a small fraction of that many common shares.
You can go through the text in the 10-K and add the conversions up for yourself. If you do, let us know. I just scanned through them and was satisfied that it's not many. In other words, conversions at this level are great for common shareholders. Sure, it adds a very few billion shares to the OS, but the liabilities are cleared at a huge discount. Dilution hurt the preferred shareholders too.
I still think it will take an institutional investor to move on common shares (including the Sabby prospectus) to initiate breakout, but the street could take over with enough volume. Conversions don't amount to nearly as much resistance as some seem to think.
They aren't called "preferred shares" for nothing. LOL For institutional investors, it may all come down to the Myrtle Recovery Centers piece. Does anyone posting on this board live near Oneida? It would be nice to keep an eye on the patient count.
Actually, "the market" knows very little about RNVA. It's on the watch lists of a lot of 000 lotto traders, but they are just a small part of the OTC market and a minuscule portion of the stock market as a whole. RNVA will move on a few decisions by institutional investors and the occasional large investor gone bargain hunting.
He is bullish on the company which is ultimately what it is all about. You always refer to RNVA as a "ticker" which isn't really anything, bull or bear.
Whatever Q3 earnings say. What else? 2022 10-Ks and Q1 2023 exceeded my expectations. I posted early today what I expect to see through the rest of the year. The trend lines for current operations and the Old Fork Medical Center expansion are fairly predictable. I'll be looking closely at the Myrtle Recovery Center numbers, less predictable from where I sit, but the fact that those services are Medicare and Medicaid bodes well.
You only know (for sure) that Jolly holds RNVA shares because he disclosed it. If he didn't disclose it, you would have a legit complaint. He publishes CEO interviews as a PR service. There's no conspiracy.
I've gone through Jolly's stuff on RNVA in past years. The CEO's forward statements were all about plans and progress implementing plans, not much about short-term revenue impacts and nothing suggesting earnings in the near term, not even before Q1 2023 10-K was filed. Jolly was optimistic in the past, but his comments only recently characterized RNVA as the "most undervalued stock" and "turnaround story" of the year.
I posted here that the stock was "way undervalued" and called the company's earnings reports a "turnaround" months before Jolly ever said it.
Newswires will distribute anything a CEO says in a press release as long as the company pays for it. I fail to see the difference. When the publisher says he holds shares, that's called full disclosure. You made my point.
I don't care if it's biased. I only care if it's true. RNVA does not have to file 8-Ks on its PR, but it does anyway. That says to everybody the CEO is happy to make it as easy as a single click for the SEC review the veracity of his public statements. RNVA is the most SEC compliant OTC stock on the board.
Also, do not include me among "the rest of us" who have "gotten screwed." I'm in since the CAH designation, averaged only slightly above .0001. I'm not sure why anyone would have bought two or three years ago, but it sounds like you are arguing with yourself.
So, RNVA is still a turnaround story and certainly the "turnaround story of 2023" for companies with stock trading OTC. Actually, it's the only turnaround story for any 000 I have seen this year.
By the way, these newswires charge a fee for PR too, so using Stock Day Media to offer guidance via interviews makes sense. Stock Day Media usually follows by releasing a summary of the interview over the newswires, and RNVA typically files an 8-K for the summary with the SEC. No good reason to read anything nefarious into it.
RNVA should show continued revenue growth in Q2 with some cost of services increase due to staffing up the Oneida Myrtle Recovery Center. Revenue from new billings and payments from Myrtle Recovery will lag 30 to 60 days, so don't be alarmed if the Q2 P/L is not quite as good as Q1. The Big South Medical Center swing bed operational expansion will be more turnkey, meaning the positive impact of revenues on the P/L will be near immediate (as indicated by the press release). All that adds up to huge revenue and earnings increases in Q3 and Q4 (year over year and quarter to quarter).
RNVA is on track for a profitable 2023. To the extent RNVA manages to reduce debt on favorable terms, thereby showing a profit smaller than the EBIDTA, all the better..., though the bears will complain either way.
"Turnaround Story of 2023" - https://stockdaymedia.com
That's dilution already on the books. Some are principal investors who are in all the way. Growing revenues and earnings can be used to settle the rest for pennies on the dollar gradually. Sustainable earnings also make it feasible to replace convertible debt at a discount with conventional debt. Then there are MA possibilities that could restructure all, again at a discount.
One convertible debt holder might, and I said might, have been converting and selling in small quantities well below .0001 over the last several weeks (shifting their ownership to common shareholders at a major discount). We'll see what the Q2 balance sheet shows on that.
The point is earnings open the door to all sorts of possibilities. Earnings make the world go around. CAH has pretty much assured the sustainability of current EBITDA, and earnings should grow in coming quarters. I don't know of another 000 company even reporting earnings. I've only spotted three or four 000 stock companies over the last 20 years or so that were reporting earnings, and they all broke out of the 000s, even without much assurance the earnings were sustainable.
Not for me. I make money on my subpenny picks. I rarely join in with the gang traders. I find value the market overlooks and remain patient enough to wait for the price to catch up. I'm not a frequent trader, much less a day trader. I agree that in the end it is always the same for those who chase momentum, but my attention span is a bit longer than that. I buy low and sell high. I never buy high expecting to sell higher.
Nobody is overlooking anything. The bulls like what the current, SEC compliant earnings reports have shown over the past year. Of course, the company has had a difficult history. All 000s have. Rennova revenue and P/L trends are now very clear.
This is not the same business model the company was operating under two, three, or four years ago. What the bears overlook is the enormous, game changing value the federal CAH designation has brought to the company. The RNVA stock price is due a correction. Forget about what day traders, momentum chasers, chart readers, and Twitter followers do. Health care sector investors (who don't typically mess with 000 stocks) will take over soon.
RNVA does not belong in the 000s.
A lot of would be resistance has cleared. P/E ratio coming into play. RNVA does not belong in the 000s. At worst, it should have only tested the high 000s after the RS. Breakout imminent. Oversold, undervalued, our gain!
Considering the course RNVA's P/L statements are on, not for a long while if at all. Earnings make the company a MA target of other companies with greater economies of scale. IMO, that is more likely to happen in the foreseeable future than a RS.
Typically thin holiday week trading. The volume seemed to be picking up last week. I'm thinking next week's volume will pick back up where it left off last week. On the other hand, sometimes trading can get interesting during the 4th of July holiday week in isolated instances. You just never know.
Totally, fundamentally wrong. If the OS goes up on a conversion, the liability (outstanding debt) comes off the balance sheet, no dilution of shareholder value. I know 000 traders are used to seeing increases OS due to dilution, but those are all companies that are losing money. RNVA had earnings, good earnings, in Q1, and guess what, no dilution in Q!. RNVA had about $300,000 cash on hand going into Q2.
If you are right that the below .0001 exchanges are conversion related, the institutional creditor/investor must be experiencing quite a liquidity crisis (meaning they must sell at any price). I haven't scoured through the schedules to say you are wrong or right about those trades being conversion related, but if so, I'm delighted to see the debt removed from the balance sheet so cheaply. You are, however, right that patterned street trading won't initiate a breakout. It rarely does when it comes to 000s.
That said, RNVA bears all the signs of an inevitable breakout. The smart money "privy to more info" moves when it's ready. At some point, as many as half the common shares will change hands over a short period of time on volume at a scale with that seen in October. That's my prediction. I wish I could say when exactly, but I know major improvements in the P/L in recent quarters have brought us closer to that date.