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I'm sorry you took it on the chin, Whatsup. So my understanding, and correct me if I'm wrong, but you are saying you bought 200,000 at around $2.00?
That's a lot of money. I don't like predatory lenders. To me, that's what it's about here more than anything. And not just HLIX. It doesn't matter how savvy one is. Behavioral finance is a real science. People like high prices and they don't like low prices. As illogical as it is.
I truly hope a good firm is in the cards. Just one big loan. I keep coming back to NROM because they got financing, and they had the money to pay off the subordinate notes that were due last December. But they couldn't pay anyone off until the senior note was in paid in full. So, the senior was holding us hostage. Finally, a firm to the rescue. And everything was refinanced. Just simple. And the subordinates that didn't want to be paid off agreed to extend their due dates.
It also took a lot of dilution off the table for them. Because they had convertibles at .50. Now they have one loan of $8M. Why can't HLIX get a good $8M? Their sales have now exceeded NROM. In the cannabis industry, a sin stock. That's good. Pay off all loans. It could be a fixed rate of say 8% plus LIBOR and in NROM's case, they tacked on PIK interest of 3% on top of that. Which improves cash flow, is an option to pay off early, but good for lender if you can't pay at end of note. So they can take some ownership.
Anyway, do that here. Even with a PIK, it owuld be real good for HLIX I think. Take all this dilution off. Have the remaining capital left over, and they son't have a big cash burn. And let them have warrants priced significantly hire. 3 tranches if goals are met, which would be cash in our coffers and stock holder appreciation for us. That's what I want to see. Something big and substantial. And if NROM can get it, I think HLIX can get it.
And then KERN can come down to meet us. We can flip them off as we pass them up, and one day you can recoup your investment. And I'll be sitting pretty with free shares again, my MO. :) And then Mr. loud mouth down there, Mr. Big D, the not so *steady* stable one, can vanish into the woodwork. As they all do. They come out of the woodwork at times like this, only to mysteriously vanish. Like that delusional character dressed in tights and a cape here, once upon a time.
I'm Back
Buy 3000 MMNT Executed @ $0.2689
May 21, 2020
11:17 AM ET
Just as I said here in the post I'm referring to: "I would be back in at 25 cents or anything lower ONLY because there is that loan that converts at .25."
I tried for 10,000 at .22. Then somebody rudely put 10,000 bid above my head at .24. RUDE! So, I took all the ask at .2689. In fact, I'm going to put 5000 bid over his head right now. Just to make him bid higher. Rude ##$@!!
That's my concern, Emerald. That's what I mean by toxic financing in my eyes, which doesn't clear up until next year.
IFFF they can consolidate all of that, it would be great. I mentioned in some posts back to look at NROM and the financing they got from Corbel Capital. Very simple. Simple financing, simple pizza.
This one, however, is very convuluted. And very toxic to my understanding, for precisely the reasons you note. In the conference call, they implied they have better prospects for better financing and hope to shed light on that in the next conference call. At least as I read between the lines here:
the market was even tighter than for capital than it is now. And we didn't want to make any substantial sales of equity at a very low or very tight price. And so, we did just the bare minimum to keep operations going, so we can continue to do the turnaround and produce the results that we just produced over the last two quarters. And we're already seeing substantially improved offerings of finance that we hope to report positively on in the Q2 call.
As I interpret that, it wasn't a lot of capital they got. But now at such a low stock price, the conversion is highly dilutive. That 30% discount is very toxic as I see it. And it remains so all through next year. That's what I've been saying! It's like a toxic death spiral financing. Basically, converts short the stock. By at 30% discount, sell at market, put downward pressure on the stock. They get 30% regardless, we get diluted. I call that TOXIC.
Now, IFFF they do get a 'substantially improved offering" I'm hoping somebody like a Corbel Capital (venture capital) will give them a few million, and they can consolidate all of those converts. Get one long term loan, improve working capital substantially, and take all the dilution off the table. And they are going to want to see numbers. And itis true our numbers are good. They don't have to go to market much if this trend continues as they are almost near cash neutrality. I'm not crazy about the idea of another acqusition, and that was intendted to be in my question(s) if I could have found my dang virtual number pad to dial #2, gosh darnit.
But IFFF such a thing happens, it would be very good I think. They do cherry pick, but they don't lie. And they do answer questions. I can't falsify their explanation of Vincente Fox. In the conference call, they did say they have plans still for that. And IFF it's announced he is on officially, that would slam our theories down. And there are competing theories here.
So, I'm liking this price. Even with all that dilution, I've rounded up to 100M OS for my market cap just to mamke things simple math. So thi is still a decent price for all that dilution which I definitely hope they can consolidate. And again, I'm not seeing the point of an acquision at this time, but that's just me. Unless they see a big capital raise on the horizon, but that wouldn't conform to the *price ceiling raise on the authorized shares. So, I kinda disregard that theory.
I'm Hewlett Ignorant. BUT:
HPE is a multi-billion dollar company. So, I guess this is a big deal. According to an article written by a bull in early April from Seeking Alpha, he said this:
HPE's Aruba mobility controller allows a user to power on their machine remotely, and have it access applications as if they were in the workplace... ...This is an example of where COVID-19 catalyzes a change that could become permanent. As businesses weigh the effects of working remotely, or extending their network, they may find it beneficial to make some changes permanent.
I don't really understand, but seems like a micro-cap company liked by a big-cap company is a good endorsement and may be able to ride on their coatails while giving them a needed boost. All I know is HPE has been losing sales on a glance, but increasing margins and profitability the last few quarters and pays a hefty dividend yield.
I don't know if this is overvalued or undervalued. I don't know how to value this. But I do know a backdoor way in here. Fineqia owns over 200,000 shares of PHUN, as shown on these sedar filings:
https://www.sedar.com/DisplayCompanyDocuments.do?lang=EN&issuerNo=00025560
Just click the latest interim documents dated March 2, 2020. On Page 24, it's listed as one of 5 startup fintech investments. I thought this was the only dog of the bunch, but maybe the are all rising stars. Potential unicorns? Fineqia is only 7M, tiny sub-penny microcap stock. Right now, at this time PHUN is sitting on a liquid value of over $400K for them. I don't know where this stock is going, but I know Fineqia is real too and you can read their story in those documents.
CORRECTION: I meant to say more shares traded so far today than the entire OS. Not the float, but the entire outstanding share count as I understand it. Over 45 million shares traded at 3 hours into the trading day. The OS is only a little over 40M I believe.
In theory, every single share out there could potentially trade two times over. And that's only in theory because you know not every one of them would trade. For example, my pidly 2,000 shares have not traded yet. That is definitely a combination of a short squeeze, perhaps more shorts (or not), and bulls charging. And a fight over value between bulls and bears, fighting over the float (freely tradeable shares).
I can only conclude that the news is very significant. Over my head, but significant. I don't know how to value this at this time.
Over 42M shares traded now. That's more shares than the entire float of 40M to my understanding. That means a serious bear/bull fight going on in the float. Perhaps some short covering happening too. I think it's safe to say the stock will remain over $1.00 now. I don't understand the deal. I'd need a good 48 hours to figure out wha tit all means, exactly.
I timed the last trading burst. It lasted only 4 minutes and 23 seconds. This stock spends a whole lot more time in traded halted status than in trading status. That is ANNOYING! Let it trade FREELY! There is a point to them to stop panic selling and/or to allow investors time to absorb what's going on. But it's been 2 hours now. And I think the stock has actually traded less than 20 minutes in all that time so far. That's no fair either.
I don't understand your question, Whatsup.
Are you saying you have 100,000 shares of HLIX at $2.25? I have 20,000 shares of HLIX at an avg. price of .4715 according to Etrade as I'm looking at it now.
Stock Keeps Getting HALTED. Halt on the Halting!
This is very annoying. The stock spends more time in halted trading than in free trading. I understand circuit breakers, but let this thing trade freely.
I'm lucky I had a foot in the door with 2,000 shares prior, but my avg. cost is $2.09 per share. I didn't see this coming. Nor do I understand the significance of the Hewlet Packard deal. Which is why they have circuit breakers to let people get a grasp on what's going on, but it's been an hour now. Let this stock trade freely!!!!!
There is a backdoor way into this stock that most people don't know about . If you look at the Sedar filings (Canadian filings) of Fineqia (FNQQF on the american otc stock echange and FNQ on the canadian stock exchange), they have a sizable amount of PHUN shares in their fintech investments. One of 6 investments they own. You can see it clearly on their filings. at Sedar.com
That's a microcap company at 7M market cap, sub penny and doesn't trade. But it's real. I don't know how big this deal is. It's over my head at this time. But if it's as huge as the market seems to perceive, there is another back door way in that isn't getting halted and tripping circuit breakers constantly.
The Beauty of this Chart:
Speaking of charts that don't predict, I've compared PHUN here too because their annual sales are going backwards and fast approaching ours. We are moving up in sales whereas PHUN is getting close to crossing our paths...
UNTIL THIS MORNING. This is why it's good to have a foot in the door. I have 2,000 shares there at an avg. price of $2.09. Their chart is uglier than HLIX. And similar to KERN in its early days.
Well, they made a deal with Hewlitt Packard, announced today. I don't know what that means. I can't understand the significance of it, but the market loves it. PHUN just tripped the circuit wires and trading was temporarily halted. It traded over 6M shares in the first 4 minutes of pre-market trading. I'm writing you 10 minutes into pre-market trading. And it's already up 85%. I don't know what to expect today, but I'm glad to have a foot in the door. 6M shares traded in the first 4 minutes of a stock that trades an avg. 800k shares in one full day?
See, let htis be a lesson. You never know what could happen here at HLIX. Do you want a foot in the door at least? I think it's wise to at least have a foot in the door in things you like. I made $8000 net profit in PHUNW warrants, btw, on the record. So my shares were free. And that was playing with fire on those warrants too. KERN, same warrant deal. A Spac like PHUN. There is usually more than what meets the eyes on your charts. Fundamental analysis will always trump tech analysis.
Points and Counter-points:
Venegas has no history as an operator
He knows how to scam and bully folks with bravado and BS but his substance as well as his background are fake.
I'm not seeing any bullying by Venegas. But his accusers are acting immaturely and bullying here. The same culprits are making irrelevant points about someone's appearance. Again, insulting onlookers and not the target. This is not how to behave. Why don't you try to help people and build them up? That would be something a bully wouldn't do. It's a repetitive behavior by the same culprits. That says more about you than the people you are bullying.
I lost 50 lbs in 5 months once. Something finally clicked. Just one lightbulb moment. For me, it was learning that 3,500 calories need to be burned to burn one pound of fat. And from there, all the math fell into place. There is a sweet spot. All the pieces fell in place. I could show anybody. They would just have to listen. It's not about working hard. It's about working smart. These guys knows finance. Things that are over your head. You'd be suprised at what's up ahead if you could put the pieces together. It requires knowledge. Most things are very easy once something finally clicks. If it's hard, you're probably doing it wrong. And if you're acting up as you are, you are probably having a hard time with things. And you are releasing all your pent-up negative energy here.
I don't know if you ever heard the saying that the loudest man in the room is the weakest man in the room? There is more truth in that statement than you know. All these immature rants are saying more about you than your target.
Its why the loser tried posting here because he has no record.
I don't follow. Who do you allege is Zac posting here? Are you saying I'm Zac? How are you supposed to convince me of your accusations if you accuse me of something I know is false? That means I can't believe anything you say. IFF, I were the type to accept hearsay without supporting evidence, of course.
Do dilly, check out references of places he worked and what they say about him - LAUGHABLE
Why don't you provide us your due dilligence? If you are trying to convince us, provide some supporting evidence please. What are your references? Where are your links? The burden of proof is yours. Not mine. I'm not the one making your case.
Biotrack is not discussed as an industry leader anymore because it has a joke owner. At one point it could have been a unicorn then Venegas' mounted it killing it.
This is your interpretation. Assuming this is true, why would I want other investors to have a unicorn and me have nothing? Now I have a horse with broken wings? But I'd be better off if private investors were flying above my head on Pegasus? I like the idea of shooting their flying horse, takign ownership of it myself. Now we are more equal! :) We have a huge health and income disparity int his county. I like to be an equalizer! :)
You know, Jessica Billingsly over at Kern, their CEO, is HOT. If this is a valuation for you, you should go to KERN. They priced much higher than us. I predicted next year sometime that HLIX's stock will be priced higher than KERN. You should take Jessica's great body over my valuation of HLIX. It would probably bring you peace! At least, for a good year or so.
By what standard do you destroy that much valuation in the fastest growing industry and try to brag about success
I can't speak for others, but at no time on the record did I say HLIX was a good value above $1.00. You can't destroy a bad valuation. I think it was mispriced then and it's mispriced now. But that's all subjective. What my recrod speaks of is buying $1,000 shares to salute Vincente Fox. And you can look it up. And I had a few thousand shares because I said the entire industry is overvalued, and thre is no guarantee that things will ever be undervalued. I said I wanted a foot in the door.
I think this company would have a good valuation at 50 cents right now. I think that would be fair in a normal economy. But because of COVID, I think it's fairly priced now jsut because of all the comparative valuations out there right now. Like banks. Like fast food restaurants, etc. etc. The only time I said I liked a fair valuation for Helix was in the 20s. And I said 10 cents was a good margin of safety. The stock market is a voting machine. It's not the company. I think a lot of people sold that were bougth by HLIX. Some perhaps to others during a lockout period for a discount, knowing things were overvalued. A chicken in the hand is better than one inthe whatever that saying was... Demand just wasn't there to meet the selling.
I liked his answers in the conference call. My only concern is the financing. I do like having 20,000 shares more than I liked having 3,000 shares. If things go my way, one of my stocks is going to have a huge break out before this one and I'll buy another 10,000 here. Or, maybe this one will be the one that breaks out. I have an average cost of .52 cents if memory serves correct. I'm happy with tha as I think that's a fair value for HLIX right now.
*2 - Thank you, Helix
I knew that Hyper sounded familiar, Global. I couldn't put my finger on it. I do remember them from BLPG. That's interesting! I am on the record over there warning them when HLIX was but a little acorn.
Anyway, I was on the call. I was at work and multi-tasking. I don't like these Eastern times. They cut into my work hours. But I wanted to speak up with *2. I'm working from home and never have to use the headset that way. Most of my calls are internal company calls. I closed the box with the dial numbers. And then I couldn't find it again. That was frustrating. I didn't know it was going to hide from me if I closed the box. Now I finally figured out how to get it back.
Awe, I appreciated the call. I just wanted dial in to say, THANK YOU, HELIX. I appreciate y'all! They don't have to do that. Zac is no bully. He's just not a doormat. He speaks his truth. He gets pushback 24/7. I like him. I like them all.
He has conviction and I accept his answers on Vicente Fox. I don't think the first caller was professional and I like how Zac responded. Firm, professionally, and truthfully. I know I vent on the boards, but in person, I'm more respectful and I wanted to come across that way but I couldn't find virtual keyboard. I have headset, so it wasn't my phone.
I liked the answer about the convertibles. What happened is all spilled milk. Sounded to me they have a Corbel Capital type in their sights. It's going to get good.
I am certain KERN doesn't count about its price. That is low float on a SPAC. It hasn't had true price discovery. I am soo confident HLIX will pass them up, and it's going to be a combination of HLIX rising and KERN falling more. Eventually over several months.
I was just also going to ask about Americanex and how that is separated out and ask for some more explanation on it. Whatever. I'm looking towards the future. I have to cut this short and run...
*2 - Thank you, Helix
I knew that Hyper sounded familiar, Global. I couldn't put my finger on it. I do remember them from BLPG. That's interesting! I am on the record over there warning them when HLIX was but a little acorn.
Anyway, I was on the call. I was at work and multi-tasking. I don't like these Eastern times. They cut into my work hours. But I wanted to speak up with *2. I'm working from home and never have to use the headset that way. Most of my calls are internal company calls. I closed the box with the dial numbers. And then I couldn't find it again. That was frustrating. I didn't know it was going to hide from me if I closed the box. Now I finally figured out how to get it back.
Awe, I appreciated the call. I just wanted dial in to say, THANK YOU, HELIX. I appreciate y'all! They don't have to do that. Zac is no bully. He's just not a doormat. He speaks his truth. He gets pushback 24/7. I like him. I like them all.
He has conviction and I accept his answers on Vicente Fox. I don't think the first caller was professional and I like how Zac responded. Firm, professionally, and truthfully. I know I vent on the boards, but in person, I'm more respectful and I wanted to come across that way but I couldn't find virtual keyboard. I have headset, so it wasn't my phone.
I liked the answer about the convertibles. What happened is all spilled milk. Sounded to me they have a Corbel Capital type in their sights. It's going to get good.
I am certain KERN doesn't count about its price. That is low float on a SPAC. It hasn't had true price discovery. I am soo confident HLIX will pass them up, and it's going to be a combination of HLIX rising and KERN falling more. Eventually over several months.
I was just also going to ask about Americanex and how that is separated out and ask for some more explanation on it. Whatever. I'm looking towards the future. I have to cut this short and run...
KERN is going to join HLIX for a New Years Eve Celebration.
Oh yeah, KERN is going to fall for sure. I never looked at KERN so close before. They have a deceptively strong stock price. They don't have 12M shares outstanding. The AMPLE purchase includes 32M shares which will hit the market as restricted shares for now soon, so they have half our shares already. They paid 5 times Amples revenue and will only get an immediate $8M for that. Ample has some problems.
Plus, 3M shares become unrestricted at the end of June, next month. Yep, I'm certain they are going to come down to join us. We only have about twice their OS in actuality. They are going to have to do another capital raise for sure. Hopefully at a lower stock price, but dilution is in the cards for them too. They'll be out of cash completely by end of the year. No way those warrants will exercise at $11.50. Another SPAC dream up in smoke, and that I'm very confident about.
HLIX is a better buy. I may actually buy another 10,000 shares here at this price IFF it stays here before some great other bargains out there. So many cheap things right now.
I predict at this time next year, HLIX will be more expensive than KERN. The truth is going to come out of the shake. We are at a p/s of close to .5 for my reasonable 2020 $20M sales. Not out of ballpark with KERN's unrealistic expectation of $27M. With their true 50M plus OS count, it's safe to say they should be priced at 24 cents right now if the market were to value us together properly, but they have a low float right now. Price discovery isn't actually happening over there yet. That's another part of its illusion. Just watch. HLIX is going to surpass KERN.
HLIX might know more than we give them credit for. Not crazy about the financing, but I do like this price more today than last week, that's for sure.
Another Factor Helping our Competitor:
KERN is our easiest comparison in our industry because they are the only other seed-to-sale public company. And they are running close to us in annual sales, so it's a great comparison.
There is actually an article here that compares HLIX to KERN head to head in many categories as I have done earlier.
https://seekingalpha.com/article/4331445-akerna-strong-buy-opportunity-in-growing-cannabis-industry
You have to have a membership to view it all, however, which I have. For those on good behavior, I have connections to the unofficial HLIX site that has excerpts here:
https://www.facebook.com/groups/967490723380506
In fact, I just presented a rebuttal to it based on the two 10Qs that came shortly after this article. A lot more clarity emerges. But again, viewable only to country club members of one private pool or another.
But I won't reveal all because those authors deserve their dues for their work product. I'll only give relevant excerpts.
KERN also has another advantage working in favor of their share price. Besides the better balance sheet. The same advantage HLIX used to have. KERN still has a low float. Since they went public through a SPAC, they still have a lot of outstanding shares that haven't come to market yet. And many shares from acqusitions not freely tradeable yet. That's how our stock traded high before by lower float. So, that could be another downward pressure on KERN if things don't work out as planned. Especially if there is a cashless exchange of all those warrants at $11.50, which have not yet been exercisable. That would be a PHUN rerun, but I couldn't see it being near as bad as that.
Future Acquisition Pressures:
This is how KERN feels about future acquisitions, which is probably a pressure on HLIX and the reasons HLIX wants to make another acquisition:
From our perspective, there has never been a better time to be in our position, as many smaller players in the space are finding limited access to capital, driving opportunities for us to pick and choose complimentary assets at prices far below what it would take to build internally... ...And as a NASDAQ listed public company, we have unique access to capital and the opportunity to use our public currency in accretive acquisitions.
Source: https://seekingalpha.com/article/4347209-akerna-corp-kern-ceo-jessica-billingsley-on-q3-2020-results-earnings-call-transcript
She also talks about $3M in reduced costs for next year in the best case scenario from synergies. Roth Capital asks her to expand on that in the Q&A, but that still puts them far away from us as far as breakeven goes. But she makes a good point about having access to capital on better terms, which obviously we are not getting. So they are a threat and probably the heat on HLIX to want to stay relevant through the same aggressive means of strategic acquisitions. But for us, the dilution is much greater due to this low price. I still prefer to watch KERN crash and burn as I don't feel her best-case situations are going to materialize. There are a lot of best-case situations in her forecasts.
KERN also had guidance for about $27M in revenue for 2020 based on it acquisitions. That would be $7M more than what HLIX seems to be on trajectory for, but how much cash will they have at this time next year? They'll have to dilute too, but at a better price so less dilutive as I see it. I still think HLIX should form good partnerships and focus on what it has. Become very attractive themselves to be bought or let others crash and burn around them.
It's not an easy call. I just don't like our options for capital. And as KERN noted in their own conference call, the cannabis industry has been resilient in this Covid19 crisis, all things considered.
I don't see any Cannalytics information. I see it in there as a source of revenue, but it doesn't say what, if any, revenue comes from Toler's Cannalytics. Where would that be??
Also, this massive black hole expired in March. It seems like a farce. Rose Capital is basically our CFO, so he basically bent shareholders over as I see it:
On March 1, 2019, the Company entered into a $1,500,000 Secured Convertible Promissory Note (“Note Nine”) with Rose Capital Fund I, LP (the Related Party Holder”). A Managing Member of the Related Party Holder is also a Director of the Company. The Related Party Holder provided the Company with $1,475,000 in cash proceeds, which was received by the Company during the period ended September 30, 2019. The additional $25,000 was retained by the Related Party Holder for legal bills for the transaction. Note Nine will mature on March 1, 2020 and bear interest at a rate of 25% per annum, payable by the Company half in cash and half in kind on a quarterly basis. The principal balance of Note Nine is convertible at the election of the Related Party Holder, in whole or in part, at any time or from time to time, into the Company’s common stock at the lower of $0.90 per share or a 30% discount to the Company’s 30-day weighted average listed price per share immediately before the date of conversion
That's a big one! So basically, buy newly issued stock at a 30% discount to whatever it is at any given day, and sell it at market. So it dilutes shareholders, and the lower the price falls, the more it dilutes. That is TOXIC. No matter what spin they want to put on it. That big screwing is over I think ,but there are others for at least another year. But that was a big one. What would have been fair would have been something like what NROM got from Corbel Capital. Probably a conflict of interest for the CFO to lend his own company capital and approve of the terms himself. That seems like Helix Security monitoring Helix Bank Robbers Incorporated. Which is very similar in what you see in the Golden State Seriel killer that eluded investigators for over 50 years. But was finally caught through genetic profiling last year or so. And it turns out, he was a police officer investigating his own crimes back in the '70s.
These kinds of things Shouldn't even be legal if you ask me. But here we are, and this is probably the best explanation right there.
The rest of the financing is a big convuluted mess that just needs to be consolidated and simplified with no more death spiral toxic stipulations. I wouldn't say Scott Ogur or Zac should have gained anyone's trust here. I don't feel like they shoot straight, as in the case of Vincente Fox. But I'm here for the ride and the adventure nonetheless with my 20,000 shares. We'll see how the dust settles.
There are also these subsequent events
On April 13, 2020, the Company executed a settlement agreement in the matter of Baker and Gill v. Helix TCS et. al. whereby the Company will pay $400,000 plus interest to the named plaintiffs, the class members, and the counsel of the named plaintiffs. Such payments will be made on the later of (1) Sixty days after Exhaustion of the Federal Appeal or (2) Sixty days after court approval of the settlement agreement.
I htink that's the class action labor dispute alleging unpaid overtime. Just be honest and pay your people. This isn't Texas with bad labor laws. And even if it was, do what's right. Glad that's behind them and over and done with. You can drop cash down to $200,000 now.
On April 3, 2020, April 13, 2020, April 23, 2020, April 29, 2020, and May 12, 2020, the holder of a 12% convertible promissory note issued by the Company elected its option to partially convert $25,000, $30,000, $30,000 , $30,000, and $35,000 in principal of the convertible note into 316,857, 395,778, 395,778, 360,577, and 409,836 shares of the Company’s common stock.
Oh, that's swell. With such a low stock price, it takes a lot of shares to convert. Add another 1.5M shares of dilution. Those are all being dumped on our heads, all the time. So, are legitimate gripes here. You would feel right about wanting to string them up. I wouldn't run to their defense. And what they've done to you, they've done to everybody they acquired. And they've all been dumping too, except for the guys at Amercanex I think because those were restricted shares if I recall ccorrectly. So, Steve Janec can be mad with y'all. It is time to have insiders in there angry on the board.
And then on April 22nd, they authorized more shares which we already discussed for future acquisitions.
There is still one pending case left out there to my recall. And that was an alleged partner of Greenway Tree Whatever it was called incorporated. That is basically Amercanex, and somebody claiming to have been a partner that got cheated out of the deal. Steve Janec can be even that more mad.
So, anyway, there's that.
He doesn't seem like a bully to me. I like listening to him. He's interesting to listen to. All of them are. I appreciate that he does give conference calls and some great illustrations.
Trump, on the other hand, is a true bonified narcissist. He is a bully and I'd go as far to say as mentally ill. Everyhing is about him. Yet, he's our President. So, until we have an example of good leadership, it's hard to call any bully wrong for following our leader's example. And I use that word "leader" very loosely. He's not my leader.
Could you elaborate on your meetings and why you feel that way? Some people could definitely need some education if they aren't acting right. I know Mark Yankee, whom I think is still President of the Houstonian in Houston, once told me to not take crap from anyone. And he said, "if I ever give you crap or act inappropritely, you put me in my place! You don't take crap from me, from a guest, the chef, or anyone." And that's a true story.
Why are you so angry? As your therapist, I can't help you if you don't open up to me and hoenstly tell me what is making you so angry. If it's because you bought high, well, I did too. But I bought more and don't risk more than you can lose. This isn't the casino we are playing against. And we never have to take our money off the table. We can just keep adding to the pile and rolling the loaded dice! :)
HLIX Reports!
That's not so bad. This still feels better than KERN to me. I don't have visibility on Amercanex or what exactly they conribute. But apparently:
" Amercanex is a business to business wholesale marketplace that leverages blockchain technology and is capable of facilitating wholesale cannabis and hemp transactions between licensed businesses on a global scale. The Company has integrated Amercanex’s technology with BioTrackTHC’s software platforms
I'll take their word for it though. It's all enterprise is complicated and I can't navigate their websites.
Interesting, KERN reported today too and it's interesting to compare the two. Looking at both side by side, I see KERN burning it's cash and HLIX moving to positive cash flow. I say don't acquire anybody and let KERN crash and burn. More partnerships.
We have $600,000 in cash, and KERN has $14M. Down from $29M last year. So KERN still has good working capital of $13M. For now, that is. We have negative working capital of almost a $3M deficit. That probably hurts our share price, but I think KERN is going to blow through its cash. If we could get to the point of funding all our needs through OCF alone, and we are getting close, that would be great because this company finds capital and can extend those short term obligations. They seem to like to live life on the edge.
HLIX is on sale for $11M Market cap (assuming no future dilution the company wants to do) and KERN is on sale for $91M today. I still think HLIX is a better deal for reasons below:
Our quarterly revenue is at $4.5M. KERN's is at $3M. We have them beat by a full 1.5M. And if you back our our security business of $1.7M, we still have them beat on a software to software comparison. We have Biotrack's $2.8M compared to their $2.3M. Which is MJ Freeway and whatever other non-organic growth they got from burning cash.
HLIX has a gross margin 51% of whereas KERN has a slightly insignificantly higher gross profit margin of 53%. Yet, HLIX is the one with the lower-margin security business.
HLIX grew its revenue significantly across all sectors for a net $1.2 million increase. KERN had a net increase of $700,000, but from software alone it was only a $200,000 increase whereas Biotrack (HLIX) had a $700,000 increase. Most of KERN's increase comes from consulting services, which doesn't seem like much of a moat that HLIX couldn't cross into if it so desired. To my understanding...
And then my BEST PARTS:
KERN widens its net loss from to $5.4M from $2.4M last year. HLIX, on the other hand, narrows its net loss to $3M from $10M. However, more importantly, the cash flows from operatons below:
The cash flow from operations is the most important number here in my opinion (OCF). We only lost $362,000 in cash, down from $1.1M last year. That's getting close to cash neutrality from operations alone. And I don't want to purchase anything else! But that's just me and it's not a bad cash burn here for the direction we are moving in. If we can sustain it.
And then KERN over there burned through $11.6M in cash. I mean, God #$@!! And they burned $6M the year prior. They are increasing their cash burn. I know they are flush with cash now, and maybe they acquired a lot of cash positive deals, but that remains to be seen. They received over $4M in cash from the exercise of warrants. Which, we have those too. And if we get a strong stock price someday, we too could have cash from the exercise of our warrants, which are all above our heads and that's a good thing.
I'm just skimming, but I don't see those words of "doubtful" of retaitaining positive cash flow you see in the mandatory statements of a lot of our penny stock friends out there. And this one, btw, is in penny stock "exempt" status because it is a real micro cap company. Instead, we have this language: "The Company plans to generate positive cash flow from its Colorado and California security operations and BioTrackTHC to address some of the liquidity concerns..."
So, I know there were some lawsuits from memory and I haven't read that far yet. But on a surface reading, I still like HLIX better. The debt, however, a convuluted mess and kinda toxic to my understanding for another year still. But a lot better value than KERN I think if you disregard their strong cash position which I'm not so sure will be there next year at this time. We'll see...
They are priced to what would be if we were a dollar.
I really look forward to the conference call on Monday!! And I hope we get a transcript unlike NROM. They had a great conference call 2 days ago on an 80's party line type situation. Adn I got disconnected but got most of it while multi-tasking. And I was hoping to read what I half-way heard. And I'm hoping there is a transcriptionist out there still working on it, trying to turn it in...
And then you have PHUN over there, unrelated indusry, going backwards. They reported today too! And they lost 50% of their sales. I think I know who's smoking the cannabis, and it's not HLIX.
Although while this is my favorite part of the PR:
"FPWM expects to share additional announcements in the coming weeks."
That's not going to do anything if they keep shooting blanks. Nobody is listening, Charlestowne. You have to get somebody with a following. You have to spend money to make money. You can't just get a twitter account and hire the cheapest amateurs in town.
Such great physics, such poor communication. I don't know what's so hard to understand about hiring a competent marketer.
There was no dilution yet in that filing as I recall. Those are authorized shares. As I explained earlier, this low price is good in the fact that it limits their ability to acquire other companies. I want them to form strategic partnerships and focus on what they have. They want to buy more with money they don't have. So they want to use shares. Hence, they want to raise their ceiling.
That would come with more dilution but still not dilution for nothing. But so far, they haven't shown what Americanex is about. On the last filing, I saw zero sales. What the heck? How about show us what the Helix Exchange is all about tomorrow and quit cherry picking.
They said they could move the ceiling down if the stock stays above .20 for over 20 days. Or they could move it up even higher if it drops to 7 cents, which is precisely where I said I'd double down. Because they would have even less leverage to acquire someone. It would take that much more. It's not good to buy like that unless you have a very strong stock price. But it's not dilution YET.
I don't approve of that strategy. They must feel pressured by Kern's acqusitions to stay relevant, but Kern has a high stock price and a lot of cash. Let them burn their cash because it's hard to integrate. Digesting companies is not easy. But that's just my feelings. I'd still double down at 7 cents, and I'm happy with what I have here.
I'm not sure why some non-shareholders here that wanted to buy lower at 35 cents, then changed their mind to 10 cents, and then changed their mind again or so angry. I can only assume they must be experiencing losses on something they "didn't buy." It's better just to be honest. Honesty, of course, doesn't mean following bad orders. It just means being honest. Like, honestly flippping off corrupt enforcers of bad laws.
Will be interesting tomorrow. And if you can't fund operations through operating cash flow alone, you have no business buying anything else right now, Helix. What you need to do is consolidate all your toxic funding somehow. Once again, look to Noble Roman's (NROM) for guidance on how to consolidate everything into one simple loan. By diluting shareholders, they could still be more expensive than NROM, but NROM is now a higher stock price and rightly so. Just pizza and simple. Keep it simple. These guys are like what Warren Buffett says about people: That people have a perversion to make things unnecessarily complicated.
The House of Representatives has included the cannabis industry in the their proposal of the next round of stimulus if there is to be one. But I call that very slim chance of happening. But it would be so great for Helix if that were to happen. They need that. NROM got their payroll grant. Like many others. This industry, of course, the persecuted ones. At least sales should be good tomorrow I think in this CV19 situation. Cannabis and liquor, the dependable sin indulgences in times of crisis.
All very good points and very good questions. I don't think the Vincent Fox explanation makes any sense either.
I am happy that they are reporting tomorrow in a timely fashion. And I'm happy to have a conference call that participatory on Monday.
Thank you, Big Brother. That was luck. I have no crystal ball. I would be back in at 25 cents or anything lower ONLY because there is that loan that converts at .25. I want to be those guys. Loan money at high interest rates, and then buy at .25 whenever I want to and sell at market price. Which could be 40 cents. Or 85 cents. Or $5.00. I don't think those deals are fair. I want to be at a price where everybody loses or everybody wins. That being said, it may never see that price and I do believe those guys in the UK are decent people. That doesn't mean they'll succeed but these are good times for selling alcohol. I like them as people and like their green ideas.
I don't believe predatory lendors or lawyers that help along the way. They help themselves.
Golden Cross, I got your email. I can't tell you what it is yet. It's hard for me to get in. I have only 200,000 shares so far. Slowly squeeezing in. I want at least another 200,000, and I have a little lower price for that. I see it coming. There is one guy involved that never fails. He will make money. :)
BTW, Golden Cross, I keep running into your name. I just saw you at the Rave board the other day. I just bought 2,000 shares of that stock before seeing your post too. I bought 2,000 shares at .82. That's interesting that you once thought of buying a Pie 5 franchise. I love their new CEO Solano. He was involved in the Dominoes turnaround as well as others. He knows the pizza business. I like the concept of Pie 5. It's like MOD Pizza to my understanding. So it's not the concept of Pie 5 that's flaweed. It must be operational issues and/or site selection and/or MOD was better navigating a tight labor market with their "Mod Squad", etc. I don't know. I haven't eaten at either one. Just like Solano. I'm going to buy more if it falls or just ride on instant gratification.
BTW, y'all, there is another vodka-selling public startup similar to this one in story. FPWM just released a PR today of their plans. Cannabis infused vodka and other alcohol. This company has plans of cannabis infused vodka as well.
It's easier to get shares here, but I like the physics better at FPWM at this time because the float is so low. That means high spread too. But I think this company is much farther along and I believe in this company's motives and ability to reach their goals more. But as far as stock rewards go, I'm liking the "physics" of FPWM better at this time just because of the alignment of interests right now. Don't have any convertibles yet that have liquidity at their disposal. So I that's a positive AT THIS TIME to me. They'll probably be more PR happy I'm guessing in the next few weeks. But I would come back to this one for a better successs story. But stocks and companies are two different things. These guys here might be great at managing a company but may not be good at creating shareholder value. We shall see... I want everybody to make money. But that's never possible because the stock market is merely a tool for transferring wealth around. Always winners are losers. Unless you jsut stick to an index fund and walk away. But that's no fun. :)
This is my favorite part:
"As business operations resume, FPWM expects to share additional announcements in the coming weeks."
I hope that's true. We have a very low float here. And there was a filing a few days ago as they get closer to finalizing all their compliance issues I think. I'd like to see this shoot to $3.00 soon. One of the few rising stocks in the world.
No CARE for Cannabis
I guess it was just wishful thinking according to this article.
https://mjbizdaily.com/what-cannabis-companies-need-to-know-about-the-cares-act-paycheck-protection-program/
The new law specifically prohibits businesses that are illegal at the federal level – and companies that get revenue from such businesses – from accessing CARES Act money.
Well, shoot. That makes perfect legal sense actually.
But maybe there is home for the near future on that front since "lobbying is underway to expand the program."
PHUN just announced their participation in the program.
Phunware (PHUN-OLD) has received a $2,850,336 PPP loan through JPMorgan Chase Bank (JPKCZ). The two-year, SBA administered PPP loan has an interest rate of 1.0% Per Annum, with initial payments deferred for six months. PPP loan proceeds will primarily be used for payroll costs and to retain workers.
1% interest. This is discrimination. Prohibition Part 2.
"Legal and illegal cannabis sales have spiked, even though doctors warn that smoking and vaping worsen symptoms and spread. These businesses face a new problem: keeping employees safe."
Source: https://www.nytimes.com/2020/04/10/us/weed-cannabis-delivery-coronavirus.html
That's a legitimate source. And it does not surprise me at all that people would be doing what's bad for them. But this is playing out according to Prohibition 2 theory.
It seems like HLIX should be able to take advantage of the CARES Act. They are tiny. And Ruth Chris's Steakhouse just took a $20M loan. They even did debt swap, with the majority going to retain their payroll. That's a forgivable loan. For all practical purposes, it's a grant, as long as they abide by the rules, which is the majority go payroll.
Why can't we do this? Our big expense is payroll. Let the govt. pay for it. And let's get a 1% interest loan under the Cares Act and use a lot of it to swap out this toxic debt we have. And get a long runway and consoidate it all! I Scott Ogur is looking into that. And corporate lawyers, rather than wasting time on class action labor suits against us.
There was also this little article of no credibility:
https://technical420.com/cannabis-article/3-ancillary-cannabis-companies-that-are-flying-under-the-radar/
Tech 420 is not credible to me. And the author: "Anthony Varrell is Managing Director of StoneBridge Partners LLC"
StoneBridge is Technical 420 for all practical purposes. That doesn't mean their argument isn't valid. It does mirror mine in some ways. However, they would be perfect for some scam stocks of mine. If people would get with the program. I'm invested with amateur cons at the moment.
Helix is not a con, but they never get credible endorsements. Vincente Fox was a credible endorsement, but -- well, he is but he isn't. So he endorsed, but didn't.
I just hope somebody is looking into the CARES ACT.
That's all for now.
Another Seed-To-Sale is coming
I just discovered a con man I know very well. He has a long history of cons, but no rap sheet. He is the ultimate long con. And is coming through a an empty shell, another reverse merger, with another seed-to-sale cannabis company. While HLIX and KERN are legit, nothign this guy does is legit. But he MAKES MONEY! Ironically, he rewards his shareholdres. LOL Well, the first stoaways, anyway. Maybe not the ones that buy first-class tickets. It will take patience, of course.
Mr. Z, thanks for the nice personal letter. I can't respond privately. I'd say zero chance that PHUN ever buys HLIX. Completely different area. KERN, I'd never say never. There will be a lot more consolidation. But getting eaten is always a possibility from a bigger fish, which is also nice. It always comes at a premium to the current price when the deal happens, if ever.
KERN just bought a little company with shares only called Telis or something. Yet, another seed-to-sale cannabis company. Which I'm sure is legit if KERN bought them. Tiny at 1M sales compared to us. Interestingly, KERN paid 1.8 times their revenue, close to 2M for the company. And we are trading at something like 1 times sales. KERN allegedly believes they will be cash flow positive, however.
Cons always like hot markets. So, I'm glad a well-known con is trying to come in on this narrative. That's a shell with much less volume than we have and currently at a fraction of a penny, so I need to try to squeeze myself in as a stoaway before he starts to do his deed. He is so dependable! Deregulation is good! Good at fleecing sheep. If you can't beat them due to politics, beat their prey so they learn to vote correctly and think right in the long term.
Thanks, Golden. The volume has stayed strong here. It's going to be an interesting story.
I just ran into your moniker on another penny. You are oging to make a lot of money on it if you stick with it. I want a position. This one has integrity. The one you are in, and there are many, has a really good con man. A long history of cons, and he is the ultimate long con. I have to get a position there.
A nice reverse merger there. You'll know the meaning of this riddle when the time is right on this reverse play of my original moniker: "Nice return GreenGenie."
Although, one of the good things about a 10-cent stock price is that it limits HLIX's power to pursue future acquisitions. It's like a built-in brake on Garvis Toler. I think Garvis is 5 steps ahead of himself. First, he was talking about Vincente Fox doing great and big things on the board when he isn't even on the board yet.
Now he's talking about partnerships and acquisitions. How about just partnerships? A rising stock price gives HLIX purchasing power. It is seductive and illusory. A falling price would require too much dilution to persuade their prey to be eaten. Hence, get the fundamentals to where they need to be first.
Partnerships sound much better to me.
Also, PHUN fell to 54 cents, a greater fall in price. A fall in revenue and a fall to a market cap of 27M. KERN has a lot of cash for now. They are making an acquisition. I'd rather watch them burn through their cash and we continue to move towards cash neutrality. A 500K improvement is hardly a dent. An improvement, yes, but not as good as the tone of voice would suggest when communicating that.
There is only one company below making money. And he's the cheapest guy in town.
NROM 6M
HLIX 11M
PHUN 27M
KERN 66M
I'd say HLIX is worth more than #3, at least a much as KERN (#4), and definitely worth less than NROM at this time. So, HLIX at 5 cents will be equal to NROM's price at 35 cents. And NROM actually took future dilution off the table whereas HLIX is talking about more acquisitions and continually going tot he market for money as they try to be cash neutral. Which is more dilution, which is closer to cash neutral, yet the need for more money, which is more dilution, which is a push towards cash neutral, which -- sounds like an 80's commercial of an egg and a frying pan.
We need to focus on what we just bought and integrate. Canalytics sounds like a great idea! Toler still haven't even talked about revenues there. I'm glad there is growth, it's a great idea. But what are people paying us for this data? I'm sure it is valuable. And I'm sure this industry is going to do good over the years. But we need to focus on partnerships only now in my not so humble opinion. And get Vicente Fox over here and let him plug us into his political network and make the lies told so far the truth.
HLIX Won't do an RV or go Private
First, doing a reverse split is not logical. There is no board to fall off of. HLIX is in compliance. This is a penny stock and always has been. Reverse Splits are done to stay in compliance with higher exchanges.
Going private doesn't make sense either. Being public is their source of capital. It is liquidity. Some of the financing is toxic, yet liquid and not toxic to its financier. Things have a year to wash out.
I do like some forward looking plans in this Toler interview this week:
The reason your order is not showing on the bid is because you have some kind of contingency turned on. I'm guessing probably AON, an "all or nothing order." Go in there and change your order, turn off all contingencies, and I'm sure you'll see your bid show. You unintentially turned on a little known secret to go "invisible."
Updates from CEO Coming Soon?
Hello, Abbas. You said, "alked to CEO 2 times already and he seems to be a good guy.. He said, updates coming soon.. patience will pay off soon."
Could you elaborate on that please? What CEO are you talking about? This is just a shell so far. Do you see a company coming through? If so, which one? What is this CEO's contact information and how did you get it if I may ask?
At least HLIX is competent in compliance and rhetoric. Good skills to have. I came here to vent a little about a woman that can't give birth. One thing Zac and Scott can do well is go public in a speedy, efficient way. They've acquired a few companies, grown to 16M in sales, all in the same time frame as a Chinese woman that can't give birth to save her life!
Just yesterday, after my postings, I get an update on AVNI in a 10k
https://www.otcmarkets.com/filing/html?id=14048406&guid=f8ZWUePo6Ptadth
Pardon if I vent.
On March 17, 2016, the Company entered into a non-binding Memorandum of Understanding (“MOU”) with CaiE Food Partnership Ltd. (“CaiE”) for the purpose of acquiring CaiE as a wholly-owned subsidiary
That's over 4 years ago now. Zac should open a 5th business line with HLIX called M&A. Help idiots go public! Sorry. I feel better now . A little bit.
Due to delays in obtaining CaiE’s business and financial information, the terms of the MOU will change in the event that the parties determine to move forward with the transaction. The delays have caused CaiE to make additional loans to the Company. CaiE has loaned the Company $169,610 as of the filing date of this report.
I don't remember Zac jacking around. I was actually in this company before it was a company. It was an empty shell. Zac came out, gave birth in less than one year, 6 months of silence, and then came out of a cacoon sprinting with his first acquisition of Cannabase. Meanwhile, back in AVNI, they have loaned $169K due to delays. Where as Zac created 16M in annual sales. Have to give some credit to Zac here.
In the event that the Company does not complete the acquisition of CaiE, its intention is to identify and evaluate alternative business opportunities that might be a good match for the Company. Towards this end, the Company has entered into a consulting agreement with an expert in strategic business alliances, business combinations, mergers and acquisitions to procure an alternative to the CaiE transaction in the event that the parties to the MOU do not reach an agreement.
OHHHHHHH, so I'm not the only getting irritated at this lady and her inability to close a deal. The shell itself is about to look elsewhere. Get your #$#@ together, Caie!
Management continues to pursue financing from CaiE to maintain operations while a determination of the likelihood of concluding a transaction based on the MOU remains uncertain.
And I am certain that they HLIX should be paid $160K for their knowledge and just pull this idiot through the portal and get it done!
(a) On March 3, 2020, the Company entered into a Debt Settlement Agreement with Olga Volger, an assignee of a debt due to AG Consultants, Inc., to settle in full $14,883 in principal and interest due on loans made to the Company for 148,830 shares of its common stock valued at $0.10 a share.
(b) On March 4, 2020, the Company entered into a Debt Settlement Agreement with Conrad Swanson to settle in full $39,592 in principal and interest due on loans made to the Company for 395,920 shares of its common stock valued at $0.10 a share.
(c) On March 4,2020, the Company entered into a Debt Settlement Agreement with Raymond Wicki to settle $42,629 in principal and interest due on loans made to th Company for 426,290 shares of its common stock valued at $0.10 a share.
(d) On March 17, 2020, the Company received an additional loan from CaiE in the amount of $25,000 with terms and conditions of this loan to be finalized at a latter date.
That's all very recent. I remember the process HLIX went through when it was a former shell of the deceased Spicy Pickle, and they took care of this #$#@ at the very start. No jacking around at HLIX when it comes to compliance. They don't tweet stupid politics all day either like this lady and her right-wing zealousness. Which is a reflection of her ignorance of how the world works. Which is why she can't give birth!
Whew! I needed to punch a hole in the wall. Thank you. I feel better now.
And I'm very serious about this being a 5th business line for HLIX. They are very good at it. Why not? That's in the realm of compliance. And there are many idiots out there that obviously need help!
4 Good Pennies
What was I thinking. I'm not exiting all pennies but 3. All but 4! How I can forget NROM, one of my favorite penny stocks.
I am exiting all penny stocks in this great environment. Except for these 4. And this is the order in which I like them. I love them all, but I love some more than others. From best to least best.
FNQQF -- 3,549,000 shares (Disruptor and Fintech fund)
NROM -- 70,300 shares (Pizza)
HLIX -- 20,000 shares (Prohibition 2 Infrastructure)
AVNI -- 31,550 shares (the lady that can't give birth)
Luby's doesn't really count at .65, even though I have 12,000 shares there. They are there cause of CV19. They are a victim of circumstance. So they are my 5th penny that is a penny but isn't. Kinda like Vincente Fox. He is but he isn't. If you understand Fox, you can understand Luby's.
All other penny stocks, I'm trying to exit at profit and ready for an even worse situation this Summer. I think the real estate marketis going to crash. I am lucky I'm homeless now an sold all my properties. That's a true story because I think it's better to rent than own these days. Or at least, as of last year. Now I want my favorite property back at a 50% discount with free upgrades.
I'd call that a very good LONG position for penny stocks.
Now, if anyone would like to start a rumor for me at E N C W about aliens or gold found in some hills. Anything, that would be great! They seem to have given up and run out of breath right now... I hope they are just resting. They need to regroup and charge as a unified legion!
Going long on those 4 above -- let's look at this post in 5 years from today. I'm going to mark this post on a post-it-note. I've been doing a lot of cleaning while quarantined. This is place empty of post-it-notes these days.
Vincente Fox Update
In this post I'm referring to, I said the following:
The latest statement on the record that I can find comes in October from Garvis Toler in this audio:
https://seekingalpha.com/article/4296194-fueling-growth-through-infrastructure-garvis-toler-helix-tcs
Started at 10:25, Garvis unequivocally states he is there and they have big expectations. That's on the record 3 months ago. So something happened in that time it appears. There is nothing on the record anywhere after that date that I can find.
So that's the most recent statement on the record, besides yesterday's conference call. Garvis specifically said this:
The interviewer specifically says, "I know Vicente Fox is on your board now..."
Garvis answers, quoted verbatim:
"...We're very excited to have him as part of the team... ...very few people more esteemed and connected internationally like Mr. Fox. Very well proud to have him as part of the team..."
He doesn't say, "No, he's not actually on board yet." He just goes along with her. See, that kinda pisses me off. Their aren't straight shooters. Let's just put it out there. But I'm staying in at this price nonetheless. And the unequivocally said on the record, again yesterday, that he is there but isn't. So, that's a lawsuit right there. Open and shut case if that never happens. I hope it never has to go down that path. Let's hope yesterday's statement was true. Because you can't take them at their word, I'm sad to say. I wish could say otherwise, but these are facts.
There is an element of truth to it. There is a spin to things. There is filtering of information. They didn't volunteer any lawsuits information in their PR. They are only highlighting the positives, which is spin. It's Fox News. No pun intended. But be that as it may, the conference call and questions were good and I think it's a good price all things considered. It's an ugly price, but there is a lot of guly in everything. Not just here. In Blackberry, and in the world at large. especially right now.
++++++++++++++++++++++++++++++++++++++++++++++++++++
So just to recap quickly. Juxtapose those two quotes:
Garvis Toler 6 months ago:
The interviewer specifically says, "I know Vicente Fox is on your board now..."
Garvis answers, quoted verbatim:
"...We're very excited to have him as part of the team... ...very few people more esteemed and connected internationally like Mr. Fox. Very well proud to have him as part of the team..."
Zac yesterday on conference call:
"So Mr. Fox has agreed to be on our Board, but we haven’t empanelled him as yet because Mexico's cannabis program has slowed down significantly and we don't want to essentially get ahead of the curve by focusing a lot time and resources in Mexico when it's not quite ready for market development. So when that changes, we will make the appropriate entitlements. So there is that."
You can draw your own conclusions.
Momentous Opportunity:
I sold out of MMNT today. I compared that stock to this one in earlier posts. Also a startup offering cananbis infused alcohol:
03/31/20 12:33PM EDT Sell 1600 MMNT Executed @ $0.61
03/31/20 12:33PM EDT Sell 1500 MMNT Executed @ $0.61
03/31/20 12:31PM EDT Sell 8450 MMNT Executed @ $0.61
03/31/20 12:31PM EDT Sell 1550 MMNT Executed @ $0.6101
They had a really good PR today. The volume was high for that stock, over 130k shares. I left only 1,000 on the table and exited with a $2,500 profit approximately. I wanted to make so much more, but their float is just too high these days. If we had news like they get, we'd fly I think. I only exited because the stock market is crashing and there is so much competing value out there. Banks, everybody. Only the "sin stocks" like this one not getting clobbered, but even they are takign a beating. Our good physics I'm hoping can really do something in this dark world.
Look at at their PR today and take some notes. Let this be our blueprint. And look, there they have cannabis infused drinks in their plans, like us.
https://www.globenewswire.com/news-release/2020/03/31/2009178/0/en/Momentous-Holdings-Corp-Provides-March-Update.html
EXCERPT:
March 31, 2020 09:00 ET | Source: Momentous Holdings Corp
Momentous Holdings Corp. (Ticker: MMNT) herein after “Momentous” and/or “the Company”) is pleased to provide an update with regards to its development strategy and planned operational activity during the global pandemic.
Following the merger to become a publicly traded company, the Company has subsequently completed its first annual audit as a combined entity. The audit entailed the adoption of several new accounting practices including reverse merger and predecessor/successor accounting.
The Company is now focused on meeting our set objectives for 2020. Predominantly, we plan to continue with an up-scaled version of our current business model, which has allowed us to generate growing revenues over the years since our inception. With the global spirits market valued at $617.8 billion*, we believe that we will be able to increase our share of the sector over the coming months and years.
Andrew Eddy, CEO, noted “I am pleased to have completed the audit process, the vast scale of the requirements for the audit work exceeded the total staffing at the Company, due to the large number of transactions from the distillery prior to our merger. Going forwards, I am pleased to say that the process will not be as onerous and we have strengthened our internal accounting, compliance and reporting departments. Thankfully our capital raising efforts have been met with success during the past few months which gives us added confidence that investors and consumers see real value in our product line.”
The Company is also taking operational considerations during this period as a result of the COVID-19 derived restrictions. Max Chater, our Chief Distiller, is currently in a personal isolation phase which is to enable him to continue to run operations and the distillery at a minimally reduced capacity. The distillery has undergone an additional deep clean and all other workers have been sent home - with the cessation of all tours and masterclasses at our distillery for the time being. Sales are directed through both online and contactless transactions, with deliveries setup to allow for non-contact collections.
Max Chater, Chief Distiller, said “These are unprecedented times for the Company. We do however have infrastructure in place to provide our products through safe online delivery which is allowing our customers to continue to enjoy our products at their homes. We have also created our own hand sanitizers and hand balm which we supply free of charge to our customers as our little part in the effort against COVID-19.”
To date, the product range consists of Victory Gin, Victory Bitter, Victory Vodka, Victory Pink and Victory Negroni (Ready-To-Drink Cocktail). Outlined below are some strategies that Management wish to implement in order to boost shareholder value for the coming fiscal year.
• Product expansion of additional cold distilled eco-friendly alcoholic beverages and Ready-To-Drink cocktails, and alternate recyclable packaging options.
• Key industry appointments to Management and Advisory team.
• Redevelopment of our websites with an up-scaled online store, and subsequently opening a tap room or bar.
• Further improve our branding and product design in conjunction with readily identified and costed facilities improvements to production equipment.
• Expansion into alternative flavors of vodka and gin.
• Foreign and domestic sales and distribution network expansion.
• Pop up bars and events.
• Submission of new and existing products for beverage awards to bolster our existing International Wine and Spirit Competition "IWSC" results.
• Name and symbol change to better reflect the business, followed by up-listing to the OTCQB or beyond.
• Production of CBD infused alcoholic products that have been developed in house during the past two quarters.
• Initiate a sales force in North America and commence marketing program within the territory.
• Execute contracts to have our spirit lines supplied at high-profile events such as major sporting fixtures, and to continue to grow our sideline business of distillery tours and cocktail masterclasses.
• Partnership with a strategic airline, or other travel destination or operator.
• Promote brand awareness through celebrity endorsements.
• Expanding sales force to other European countries with an existing market for our products, and sign strategic partnerships to help increase our global presence.
I'm 90% Cashed Out:
03/31/20 12:33PM EDT Sell 1600 MMNT Executed @ $0.61
03/31/20 12:33PM EDT Sell 1500 MMNT Executed @ $0.61
03/31/20 12:31PM EDT Sell 8450 MMNT Executed @ $0.61
03/31/20 12:31PM EDT Sell 1550 MMNT Executed @ $0.6101
That was a great PR today, and I took the opportunity. It's not that I don't like this company. They seem sincere and it's a nice little company. It's just seems to be too much float for me now. I don't like the conversion rate on the convertible note, and there is just a lot of good value out there now.
So, I'm leaving with $2,500 profit. Much less than what I had wanted. But happy to make a profit in times like this when the world is on its knees due to CV19. Big companies are at huge bargains now and could get worse.
So best of luck to all. Again, great PR and great plans. I hope my 1,000 shares become a few thousand one day.
I may move lower. Or higher. Or sideways.
I really don't know. There is a lot of value out there. I'm trying to get out of my penny stocks, like this one today:
03/31/20 12:33PM EDT Sell 1600 MMNT Executed @ $0.61
03/31/20 12:33PM EDT Sell 1500 MMNT Executed @ $0.61
03/31/20 12:31PM EDT Sell 8450 MMNT Executed @ $0.61
03/31/20 12:31PM EDT Sell 1550 MMNT Executed @ $0.6101
Finally, some good PR came out today, letting me out for a $2,500 profit and 1,000 free shares left on the table. I'm just glad to make profit in times like this.
That doesn't mean I'm moving it to HLIX. I'm trying to hold cash. Blackberry over there, also struggling, is at a p/s a little under 2, and they are cash flow positive. And they have gross margins of 77%. That's much better than our good margins. You have TAST, Burger King's largest franchisee, at like a p/s of .1 right now. Although, Enterprise value about equal value at a p/ev of 1. That's highly leveraged, but cheap.
I think things are going to get worse. I think HLIX is in a good industry, all tihngs considered. There is so much competition for value now and people are having margin calls, trying to keep their job if they have one left. Hopefully they turn to booze and cannabis like they did in Prohibition 1.
I don't think these are times to worry about HLIX. This and Fineqia are my only penny stocks of pride. And AVNI, that Chinese lady that can't give birth. Another interesting filing this week. She's trying. She's trying hard. This is probably not the best time to give birth, but who knows. Soon to her can mean something like "Jesus is coming soon." Time has no meaning over there.
That's all I can say about that. Those 3. I'm trying to get rid of everythign else. Too much good value out there!!!! And things could drop much lower, Whatsup. I don't think people are going to be too focused on HLIX right now. That volume started higher than PHUN this morning, but PHUN ended the day with even more volume. And a greater fall in price.
Although the gap remains, those are two interesting gaps to watch. As PHUN loses sales and HLIX ramps up sales. A lot will happen in one year. I know you wanted 25 cents at one time. Now you want 7 cents. I hope you get the absolute bottom. Wherever it may be. Personally, I think this is a good price if things work out for HLIX or if someone eventually buys us.
Transcribor is definitely not understanding what he/she is hearing.
I wrote this on this link:
https://seekingalpha.com/article/4335101-helix-tcs-inc-s-hlix-ceo-zachary-venegas-on-q4-2019-earnings-call-transcript?part=single
Racer-X
Comments2909 | Following
Very good conference call. For new readers, the Q&A is transcribed wrong. "CRON" actually should be KERN. Zac is pronouncing a ticker symbol that the transcriber is guessing at, and most likely doesn't realize is a ticker symbol. The audio can be referenced on HLIX's website.
I think the translation "Or Cronos" should probaby read: Akerna. Which is KERN. Which is a SPAC that acquired MJ Freeway, Biotrack's direct competitor. I don't think the transcriptionist understands.
Thanks, Emerald, for submitting those good questions.
Here's the New Filing I saw:
https://backend.otcmarkets.com/otcapi/company/financial-report/242659/content
It's back. This shows work and preparations, which I like. This stock has been very resilient as the world crumbled because of the extremely low float. I define the float as others here defined it at 2M or whatnot. But this filing defines it as about 160K shares. It depends on how one defines the float. I prefer our definition. At the same time, their definition is more about what they decide to do with the shares, and that's a good thing. As in, hold or sell.
2M *freely tradeable* shares went to a "Wellesley Holdings" which is someone behind a name. And if anybody is going to own 2M of our float, I want it be in someone's hands hiding behind a name. That's a strong poker player, and I want to know who's at the poker table with the other 160K weak hands. Good.
Then this note explains what those mystery 2M shares were for, which we were speculating about before. I would have preferred they went to a competent marketer, but I guess this explain why we haven't seen competent marketing yet:
On October 3, 2019 the Company approved the issuance of 2,500,000 shares of its common shares in exchange for a reduction from principal on a Note payable. The shares were subsequently issued on December 18, 2019.
That shows planning and preparation. The tweets, however, just jacking around and not accomplishing anything. I do like the previous press release. That was real good. I like the planned laid out and things like "soon." So, soon, I'd like to see something professional roll out. That's a lot of shares, so we deserve a professional show with professional actors. Not what we've been seeing lately. So far, their methods are not turning heads. Find head turners!
Then it says this:
On September 1, 2019, the company filed with the State of Nevada for a name change to Charlestowne Premium Beverages Inc.
Formal closure of said name change is pending and expected imminently. Thereafter, the company will pursue the follow-on name
change process with FINRA. At such time, the company will change its CUSIP number and SIC code to reflect this.
That sounds like a ticker change to me, so I'm confused when the comopany said they won't change their ticker. When a CUSIP number changes, that means our ticker will vanish and be replaced with a CUSIP number temporarily, and then change back to a ticker. Usually when that happens, it comes with a ticker change as well. So, why not just change the ticker too? I don't understand, but be that as it may be. That means nothing dramatic should really happen until this event happens, as I understand it. The final process of all of that still pending.
I think there are 2.5 M shares I still haven't accounted for, and I do hope those, at least, are in the hands of a professional marketer. Or a partner, or something to materialize in the form of WORK. All these vested interests can't sell because there is no liquidity. And the liquid float as I see it is 160K shares. And that's real good physics at this time.