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SEC seems to have a problem with how the insiders are accounting for the interest they are forgiving. In my opinion this is a domino effect of someone doing a full forensic accounting of insider or former insider. For instance if During the divorce proceedings for Mr. Stanton a forensic accountant pulled apart all of his dealings, and the SEC caught wind of it, they would launch this type of investigation.
Well this is probably not the good news everyone was looking for. The SEC has now gone after the most current annual report. I don't think I have seen a pink sheet get this much flack from the SEC before. I have never seen a pink sheet stock have to restate 6 years worth of financials.
So to say that IWDM is not on the SEC radar is delusional.
This has to be a major cash drain on IWDM. We know they have already had to borrow from the board of directors, and paying for all this additional accounting work cannot be good for cash flow.
That would be selective disclosure by an insider if he spoke about IWDM on the air. That worked for the pump and dump since Bubba was not a board member of director of IWDM when he spoke about it and pumped it before.
Since the SEC is now aware of IWDM, and has taken a very close look at their filings, you will not hear a peep about the share price, or anything else about IWDM that has not been released through the proper channels first.
Stanton and entities controlled by Stanton have received well over 30 million shares in the past 24 months. That is easily found in the IWDM 10-k for 2010 and 2011. So if this is the case, there is a lot more dumping about to hit IWDM.
But IWDM was down 50% last week.
They are certainly looking into them. The company tells us that.
What does "drop got of the weak" mean?
Is this a fact, opinion, best guess or other?
By unpleasantness do you mean the fact that the share price has gone down consistently for 18 months?
What is meant by the "stock is going to grow"? Is the outstanding float going to grow? Is the share price going to grow?
What new investors are coming to IWDM? What is the right track for IWDM?
If they could they would have already done it.
The insiders have no desire to build IWDM into a legitimate business, it is only there to line their pockets and when that stops, well the game is over and everyone moves on.
The lucky shareholders got to finance the insiders whimsy and hobbies all while watching the value of their IWDM holdings tank. IWDM has not had a sustained uptrend ever. It ran to .68 but that was done in a few days.
Seriously look at the monthly chart for IWDM, since 2010 there has only been 3 months where the PPS was positive. 3 months out of 18...What real business owner or CEO or management team would let a company flounder like this.
I think the wealth destruction and PPS slide for IWDM is DD enough. Also common sense and basic arithmetic skills are more important in evaluating IWDM than any quasi partnership with Sony or Unation or Randy Michaels, or whatever is thrown out there next.
When does averaging down become throwing money away? Averaging down works when the investment vehicle you are averaging down on plans to be a multi year or decade holding and has a successful track record. You can average down to $0.00 and you still are left holding an empty bag.
Serious disconnect between investing reality and this IWDM fantasy land that so many are stuck in.
What does UNATION Have to do with IWDM's share price? How does UNATION generate revenue for IWDM? Does UNATION even have a functioning website to lead people to IWDM?
Theory....
The fund that wants to buy Stantons preferred shares, is also buying the scraps of stock down here as well. They are accumulating shares for the votes, and the preferred for the liquidation rights. Vote for the liquidation, get what they can from it, and use the IWDM platform to reverse merge another firm and start the cycle again.
When was the judge supposed to clear or deny the Stanton liquidation?
How is Kevin going to help get IWDM investors money back?
Highly unlikely...
Now that the company admitted the SEC is looking into their financials, IWDM is not going to risk charges to run another fraudulent pump and dump. The FBI and SEC are making a point to start cracking down, and that is evident from the numerous arrests recently in Florida alone.
This is the slow motion unwinding of IWDM. The lower it goes the harder it is to exit a position.
Ouch...I guess the 800,000 shares picked up last week were dumped. Quick flipper wanted out.
Just think about what the bag holders could be doing with the cash they put into IWDM when it was above .10.
IWDM destroyed the fans pockets. Especially the ones who are willing to go down with the ship.
This was the name of the game going into it. IWDM always has been and always will be an insiders piggy bank, funded by unsuspecting fans. My guess is they wanted to run another pump, but with all the attention some former insiders are getting from the legal system, the fact that one of the current insiders has a radio program and the amount of disgruntled bag holders who some I am sure made complaints, made it impossible and they have the regulators attention.
IWDM is not paying any chop shop to promote the stock, they even stopped paying for the bots that search Ihub and post to twitter. All these little things show there is no commitment to even run another pump.
What is the end game? How long does the board of directors keep funneling cash into IWDM? Some men will spend their entire fortune on hobbies so it could go on for sometime. Only time will tell.
IWDM is at a point that expenses may not be the problem. Having the SEC actively monitoring IWDM would be more worrisome to me. The SEC forced IWDM to re issue and correct financial statements for a large chunk of time. IWDM will have to be by the book from here on out, so any sort of artificial pump is not in the cards. Only thing that is going to increase the PPS is growth of revenue, and building a business. Two things that the insiders obviously have no desire to accomplish.
What does IWDM pay BRN for use of the studio? I gurantee you it's not free. Unfortunately IWDM does not give investors insight into the expenses. I am sure even the biggest fan of Bubba and IWDM would be sick. Imagine what all the bag holders could have done with the cash that IWDM siphoned away from them. There was some serious wealth destruction from .68 to now.
It is funny!
Per 10k
"This amendment is in response to comments from the SEC. The changes to this amendment from the Annual Report filed April 18, 2011 are to provide more detailed and thorough disclosure to current and prospective shareholders."
Really? I am guessing you did not read the amended 10k. It is for the years 2005, 2006, 2007, 2008, 2009, and 2010.
More importantly read why IWDM had to file these amended statements. They filed because of an inquiry from the SEC. Now that IWDM is on the SEC radar, pretty much all hope of another pump and dump is over.
Truth is no one knows. IWDM will not release detailed accounting of anything.
From the beginning IWDM has always been a pocket lining operation for a few individuals. Now that the PPS is down in the low single digits, I don't think the insiders are going to expend the energy to try and build real value.
Is IWDM putting out the best product they can afford to put out? From what I gather they cannot get their star talent, and one of the only 2 board members to do a full week of shows. How can an investor find value in a company where the top guy does not bother to show up for work.
I fear that if your cost basis is over .10 you will never see break-even, let along profits. Maybe someone steps in a pumps this, but there is going to be a tremendous rush to the exits, and with all of the outstanding shares it will be short lived.
That is really nice...What good things are coming soon for IWDM?
Someone is always the last to leave the party, and usually they are left with nothing. IWDM has a lot of shareholders with large positions who have been burned and the party is really starting to wind down now.
WOW! 2 full trading days and a total of $4 worth of IWDM stock has traded.
Liquidity is gone for sure. One position being liquidated will take this to .01 and below.
All depends on how much they paid for the stake.
There are tax carry forwards and other balance sheet items that may have value.
Zanett wanted to liquidate so did the CEO. Possibly Zanet had the same preferred share position and wanted a piece of the $13 mill in cash.
In regards to IWDM I do not know what assets there are besides another year and a half on Bubbas contract. So if IWDM does liquidate what is in it for Zanett? Prefered hardly appreciates so what are the planning?
Actually the CEO backed the plan by Zanett to liquidate, but the company and the board went another way.
Ask yourself the same question, what does an investor want with preferred shares? No matter who it is. What benefit does preferred have over common. Preferred can not vote so control is not what they are after. IWDM does not really have enough cash to pay a good dividend on the preferred shares, and with expenses only in a few million a year you know they are not paying off big dividends. So the only reason I see is to be first in line during a liquidation.
Now you can do some real DD, and find out who Zanett is and what it is they do.
Maybe look into the year 2009 and Math Star Inc...
So this is preferred stock, and can not be sold on the open market. The trustee has already negotiated with the Zanett Opportunity Fund based in Bermuda. We will have no idea of what the transaction price is until it is completed.
So why would someone buy a chunk of preferred? There are a couple of reasons, one is the regular dividend payment. We have no idea what that is, but if they miss a payment this just keeps accruing and the preferred holders are always paid before anything could be distributed to common holders. What I think the most important reason an opportunity fund would buy a chunk of preferred would be first in line during a liquidation. This fund most likely sees more value in liquidating IWDM then actually working to make it grow. In bankruptcy preferred holders are first in line for distribution of assets.
Let me guess....This is the method to the madness. IWDM has a plan but they wont tell anyone, but if you pick up the phone and use google it is all very clear.
Found an ugly number...Accounts payable and accrued expenses is over $700,000 to go a long with the over $168,000 owed to an insider who is owed money.
Here is my dissection of the 10Q.
Someone loaned IWDM a lot of money: On various dates in the fourth quarter of 2011 and in the first quarter, 2012, a related party shareholder advanced the Company funds, aggregating to a total $168,196 at March 31, 2012 and $12,000 at December 31, 2011. The advances are non-interest bearing and due on demand.
Between December and March someone loaned IWDM over $150,000 payable on demand. There is now only $30,000 or so left of that cash.
IO for business is growing, but at a very slow pace: ioBusinessMusic continued to sell to new clients, which resulted in the continued growth of subscribers and increased subscription service revenue by $7,310, or 3.9%.
Subscription and Ad revenue dropped. Which is very scary since they are now on a fully ad supported model: Radioio subscription revenue decreased $11,570, or 47.8% in the first quarter of 2012 compared to the corresponding period in 2011, while advertising revenue decreased $12,305, or 35.1% in 2012 compared to 2011.
Expense are up: The Company incurred $183,219 and $155,398 in cost of sales attributable to the services performed through ioWorldMedia and its Subsidiaries for the quarters ended March 31, 2012 and 2011, respectively. Cost of sales for the first three months of 2012 increased by $27,821, or 17.9% as compared to the same period of 2011.
Now a bright spot - Gross Profit is up, not enough to keep up with the rise in expenses but it is up, maybe on air talent is working for free: Gross profit was $218,560 and $137,754 for the quarters ended March 31, 2012 and March 31, 2011 respectively, an increase of $80,806 or 58.7%. This increase resulted from the $107,588 increase in gross profit generated by Radioio Live along with the increase of $2,760 from ioBusinessMusic offset by the decrease of $18,964 from Radioio.
IWDM shareholders cannot get rid of 140,000 shares with out dropping the price 20%. What happens if they need to get a rid of 1,000,000 or 5,000,000?
Sure if they were interested in becoming a growth company. But this is the tried and true path that most pink sheet stocks take. Issue shares to insiders and friends, and use them as a piggy bank. Run a pump or two, but not too many as to not draw attention to yourself and then pocket a little cash.
Problem is it takes money to make money, and it seems IWDM is refusing to spend on things such as Marketing, and promotion. Has anyone ever seen a mainstream advertisement for IWDM?
Currently their marketing is whatever they spend to be a part of the playstation console, and what is said on their own airwaves.
In my opinion they went into the IWDM venture with a flawed business plan, they thought the following from Sirius would be much larger than the 2800 early enlisters and whatever month to month people they had who now listen for free. They greatly overestimated the actual following willing to pay for IWDM services.
July 1st in the new deadline. 15 days from the last day to file.
I was wrong before.
The good old NT filing...IWDM not able to file the quarterly report on time.
I will speak positively about IWDM when they make steps towards increasing shareholder value. If they announced Howard Stern was coming to IWDM, then I would have plenty of positive things to say.
However you can not invest on assumptions and guesses. Facts and figures can be forgotten when a good salesman has a captive audience.
To only post positive things about IWDM while the PPS is in free fall, is a disservice to the investment community.
I know hard earned money has been saved by multiple people seeing IWDM for what it really is, not nearly as much as has been lost on IWDM, but something is better than nothing.
Econ 101....
Limit the supply of an item that is in demand and you can raise the price and in turn the margin made on said item.
Flood the market with supply and you lose pricing power.
Bubba's show on another IWDM competitor will flood the market and reduce the value of the show as a whole.
Not to mention it is a complete breach of fiduciary duty for the Board of Directors of IWDM to be out trying to promote competitors (Cox), who air competing shows with the IWDM line up.