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Which conference call is it going to play out to? The first one that talked of the meger between three entities of Kelly Corp or this conference call which seems to say it will be CareDecision and Futurecom Global? I didn't hear this cc nor the questions and answers, and wonder if anything else was said that addresses this change.
Best of luck to all.
I don't think the merger will be quite what was originally announced. If you read Mr. Berman's opening from the cc "We had ORIGINALLY planned on a merger between CareDecision and three Kelley Company entities. However, after much discussion, we determined that the dilution to our current shareholders necessary to complete the merger, coupled with the complexity of the acquisition plan which included acquiring three stand-alone entities was not in the best interests of our shareholders......"
I take from this we are going to a merger with CareDecision and one of the entities of Kelly Company. Hence the larger portion of the new company being held by CareDecision.
Was anything said in the cc to further explain this?
It will be interesting to see how this plays out.
Best of luck to all.
I have to apologize. I was in a rush and my math is off a bit.
Actually, if they do it the way I assume, and just an assumption on my part, it will give us after merger outstanding shares of 650 million. I am judging the after the merger pps on the value they stated they thought the company would have of $65 million shares. At that point the pps would equate to $0.10 per share. $65 million divided by 650 million shares. I think the company will continue to establish business and news will be forthcoming as progress is made. I don't believe we will see the past proliferation of news releases though. From the transcript, it looks like they will be concentrating of the prescription business and that they are probably working on it together right now. I would still like to see the DataFuzion deal done before the merger. That would benefit present shareholders the most. Best of luck.
It has always seemed that the DataFuzion deal was a licensing agreement and not a purchase. That's what seems to be going on. I read the transcripts of the CC and have a few items to bring up. At one point Kelly mentioned that the resulting company can have "increased shareholder value despite the dilution the merger requires." In another area they talk about CDED issuing Treasury stock to complete the deal. If we use 250 million CDED shares outstanding and assume based on past statements that they will represent 38% of the company, then the total shares outstanding will be 950 million. Based on a $65 million dollar anticipated value that makes our shares worth about 6.8 cents per share. The other concern is if the DataFuzion deal doesn't go through before the merger, the DataFuzion dividend will be split amongst 950 million shares vs the current 250 million. Which will not get us much per share. I will hold, but not accumulate anymore. Best of luck.
Chucker - I guess I would be curious as to when he anticipates the deal closing. That would be it. Terms etc., may not be able to be disclosed as of yet. Thanks -
I noticed in the 8K that was filed yesterday that terms of the merger were based on the "recent CareDecision counter proposal." Something I haven't picked up before. Not that it wasn't out there, but I just noticed it. It also sounds like Kelly has a lot of ducks in a row and wants to get rolling with this stuff ASAP. The game plan for the future sounds good. They should have enough capital to get this going and seem to have the contacts in place. Now we need the details of how we'll be treated in all of this. We'll have to wait for the preliminary filing I guess. Best of luck.
Al - I wasn't able to listen to the CC, but from your comments and the action on the price I assume it wasn't the best CC in stock market history. Did they mention anything of the DataFuzion deal? Seems like they just gave an overview of the companies with not of hint of how the deal is going to be done. That again would add more confusion to the mix.
What are you thoughts on how the principals came across? Were they articulate and seemed to know what they were talking about?
Hope we can get some better information in the days ahead.
I wouldn't mind if this happened. The new company would have 13 million shares issued. 5 million for CDED shareholders and 8 million for Mr. Kelly. That would mean about a 50 for 1 reverse split for CDED shares. If the market value of the company would be $65 million, that would mean we would be at $5 per share. Which would also mean a possibble NASDAQ listing that would catch the attention of bigger investors. Also, I would imagine Mr.'s Kelly, Cox, Berman, etc. would have restricted shares which would mean very little float. As sales increase, the price would appreciate quickly from the $5 range.
Again, this is just what I'd wouldn't mind seeing and it is based on nothing I heard or read. Just my assumptions and you know what happens when you assume. Best of luck.
I think next Wednesday will be quite interesting. I'm hoping to see the DataFuzion deal be a dividend prior to the merger. But all is just conjecture right now.
Boy, Frances looks to be a real mule. Hope your spared the trouble of going through it. Best of luck and look forward to Wednesdays information.
I had gotten a communication in early July from Mr. Berman and he mentioned that the DataFuzion deal was still on. I agree that we all have to "hurry up and wait" for the details next week.
I was thinking of this and thought I would run it past you guys. The new company is going to be a listed company but is not now. In order not to go through the registration mess, I'm wondering if we'll see a reverse merger here. Where the smaller company takes over the larger company, then restructures so the larger would have control. Any thoughts? I'm hoping that we see CDED holders get a 38% stake in the new company. I am basing the 38% stake on the fact that they said the new company would have a market value of $65 million and that we get a value for CDED of $25 million. Not going to have the time to watch much today. Hope things start turning in our favor soon. Best of luck.
Hopefully today we'll get a few more details or at least an idea of when the conference call will be. I agree that CDED needed cash and/or a partner to get these things going. Maybe now they do have one, but to what extent the shareholders are involved is still to be determined. Sorry if I confused people with my 740 million share example, I was trying to say that the market is treating us like there were 740 million shares issued by pricing us at $.035/share. If the deal is as we were led to believe, we should be around $.10. If the DataFuzion deal is still viable, that should add another $.025. It starting to look like a shoulda/coulda thing. As I stated before, I am confused and awaiting more information. It would be nice to get some good news. Best of luck.
I am as confused as anyone with what's going on. I also found it interesting that Mr. Cox's name was not mentioned. Maybe he is not on board with this. Seems funny that they say they wanted a $25 million vaulation, and from the sounds of it they must have got close, and the stock ends at this price. Let's see, to have a value of $25 milliion at $.035 you'd have to have almost 740 million shares issued. I guess we will have to see the details.
I also find it strange that none of the details have been issued. I will hold on because I still believe there is value with the products. Just have to see how this all works out. Maybe we will get some more info tomorrow. Best to all.
So much for my thinking. We can't make anything of the merger because the terms haven't been announced yet. The only thing we could use are previously mentioned numbers. CDED's board wanted a valuation of $25 million and that's why the countered. Total estimated initial valuation of the new company is $65 million. That would make it look like CDED shareholders would have about 38% of the new company. But as you know, I've been wrong before. We'll have to wait for the details, but I agree, it isn't worth selling at this point.
Yes I do. Read the CDED Reg FD Disclosures from 3/12/04 and 4/20/04. They show DataFuzion's interest in CDED medical applications. Also, the "partnership" was set on the back burner while DataFuzion made another acquisition. Most likely to compliment CDED's medical application. I believe in one of the press releases Mr. Cox mentioned that DataFuzion would be valued around $75 million and that was prior to the acquistion. I would think with the acquisition we are now looking at a $100 + million dollar company with several divisions. Fits into the recent statements. Also look at DataFuzion's partners. Very good companies. The new company would be poised to succeed and we would all benefit.
I don't believe DataFuzion is a publicly traded company as of yet. But we would become stockholders in the new company that eventually would go public. Which could mean very substantial benefits.
I think they are looking at the WIFI medical technologies portion of CDED only.
Look at the old press releases concerning this. I think DataFuzion has completed their other acquisition and is ready to finish the deal.
I believe management of CDED is truly positioning the company for success and that will ultimately mean success for shareholders.
Best of luck.
So here is how I read it. From previous PR's we know:
1) DataFuzion is buying into the Medical part. It has taken longer because they are have another acquisistion going which needs to be completed first. Gee, that would make another division of DataFuzion. CareDecision stockholders would most likely recieve restricted stock in DataFuzion.
2) CareGeneration, Inc., a distributor of pharmaceutical products and a division of Kelly Co. World Group, Inc. and CareDecision have come to agreement for the implementation and on-going support of the patent pending MD@Rx, MD@Desktop, MD@Practice-Probe and MD@Server products and technologies.
OK, those are your possible suitors. I pick #1 for the initial move. Why? Because they wanted to buy it ealier but our Board wanted $0.12/share they didn't want to pay that much for the whole thing. They then were set to buy in as a partner but wanted to make an acquisition first. Now, after their other acquisition, they want the whole thing. Probably offered $.09 per share. Board still thinks that portion is worth $.12 and I agree.
We will have ownership in the DataFuzion part along with the ResidenceWare and MD@Rx products. Who knows, maybe Kelly Companies is looking at buying the MD@Rx line in the future also. That deal or others may come down the pike. ResidenceWare is beginning to be an accepted product and should become a huge income producer.
Also remember that the Board is limited by regulation as to what and when they can discuss things publicly. Even to shareholders.
I'll stay long.
From an article in CNN's Health section today.
"The U.S. government said it is trying to spearhead a move to get hospitals and clinics to use electronic databases and prescribing methods. The Institute of Medicine report said many deaths were due to medication prescribing errors or to errors in delivering medications."
Patience is a virtue and often rewarded highly.
It is quiet. No news releases and no trading in Berlin shut things down quickly. I'm interested as to how the Florida people are doing with sales and installations. Funny that we haven't heard more on that. I like CDED products and believe there is a good niche for them. Maybe we'll get some info in the next few weeks.
The DataFuzion dividend may spark some interest. Still waiting to hear on the satellite provider. A little news would be nice.
Have a good evening.
Go to the CDED website and look at the new posting "Testimonials". I think good things are on the way.
I too think it's a bargin at these prices. We all have to keep in mind that this is a development stage company. If the ResidenceWare produces good income we will see a pop in the price. When ResidenceWare becomes popular, it will be a cash machine for CDED.
The dividend from DataFuzion will come. It takes a while to go through all the steps they need to complete. That dividend should come by the end of summer.
It would be nice to hear some more developments from the satellite company. It would also be nice to hear more information about Florida and Texas.
The dice are rolling. Will they come up 7 or 2 is the question.