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I have been invested in CYBL for a long time now and have posted on RB. I, like a Dumbazz, didn't think of coming here to see what is being said. I don't understand the drop with news over the past several weeks. I will have to go back through some your posts to see what I've missed. I will visit more often now.
Sloth
Off topic but I won tickets to see The Who in concert tomorrow night at the Hollywood Bowl. I was pretty excited all week. This morning I got a call from the radio station promoting it and the lady said I won the grand prize of a "meet and greet" with the band. I get to meet the Who tomorrow. Pretty amazing. I've never really won anything before or even tried to win. This should be fun. I'll give them the heads up on S3 also while we're doing the meet and greet.
Sloth
They're definitely a competent group of people with lots of respect for each other. Andrew was not only informed about S3 but excited about them. S3 has a competent team around them. There are many factors that are complicated with S3. I know Jim wanted to speak freely about many more things but deferred to Andrew as to what could be said and not said in the realm of public information. I knew Mr. Bickel trusted and respected Andrew with that type of expertise.
During those meetings, they were concerned about getting the filing done on time. They knew it was a huge task to combine all the Chinese and American accounting to report in correctly. I think even then they knew they were not going to be able to report on time and would need an extension. I'm personally not worried about the tardiness. I just want to see it like everyone else.
We wait and speculate,
Sloth
Andrew is a great guy. I sat and spoke with him for over an hour after the last meeting.
Picked up 3M today at .009. Got lucky I guess.
Sloth
Of course that was sarcasm. I have always been and always will be straight forward on these boards. It's interesting to see the reaction to such a post though. People are very vulnerable to negative posts on these message boards since these penny stocks are very vulnerable and speculative in nature. It's tough to be an investor in these new and/or little companies. There's so many things that can stir up controversy, anxiety and doubt that makes it hard to stay positive.
Another interesting thing about my sarcastic post is that if I were to become a basher of a stock, I would spend months creating the illusion that I was knowledgeable and encouraged by the stock before I slowly turned the corner to become critical and manipulative of it.
There's tons of psychology involved in investing and bashers can really test that with a few choice words. The poster, Mostly, on the RB board is one I am always trying to understand. He really has no reason to post, yet consistently seems to somewhat support S3 only to throw some big stones at it to give others that psychological test.
One thing that interested me lately was hearing someone talk about that list of the richest people in the U.S. There is nobody on that list that made that kind of money buying and selling stocks on speculation alone. The people who made that kind of money on that list are long time investors like Buffet who invest in very small companies for decades to reap the rewards. He always visits the company and gets a first hand view of them before investing. He's not buying a stock symbol. He's buying the company, which includes employees, directors, assets and everything else for the long term. That's why I attend those S3 meetings out in Temecula. I believe in that kind of investing but I also believe in humor and sarcasm.
Sloth
This is still a scam! Sell while you can.
Hoping for many good days to come.
Sloth
I don't even know if tomorrow is the deadline. I think they still have a couple of weeks to file. I've never heard what the deadline actually is. I know at the meeting they said around the end of September but I don't know if the last day of September is the deadline. They could still have days or weeks to file on time. Does anyone know for sure the date?
Sloth
S3 should get a refund or claim the lemon law on Equiti-Trend's services.
I have no idea what those guys did except send me a postcard saying it was important for me to call them.
Hopefully, S3 has eliminated their services or the lack of their service.
Sloth
I'm very curious as to what is being referred to as "significant milestones" in the PR:
"The ability to show the increasing value of our subsidiaries is a critical element in the growth strategy of S3 Investment Company. It is our intent to build S3 well beyond its current status, and to achieve our long-term goals, we expect to utilize the expanding operations of our subsidiary companies to raise S3's profile both in China and in the U.S. capital markets. This process is currently underway, and we hope to share several significant milestones in the very near future. Until then, we can all look forward to the release of our annual report and the first consolidated financial statements for S3," added Mr. Bickel.
I think things are shaping up nicely. I know some won't agree with me but all of this is happening very quickly considering where we were as a company a year ago. This next year should show some serious growth. Hopefully, the pps mirrors that growth.
Sloth
RRM & GBP- I would like to get back to the Yahoo board. I believe I was taken off because I rarely post. I do read the posts but haven't had much to say lately that hasn't already been said.
Let me know,
Sloth
Lumik,
I think also that people have unrealistic expectations of these penny stocks. There are only a few companies among hundreds of thousands that do anything and it takes some time for them to do it. If you look at companies like Microsoft that was tiny and made people millionaires including the secretaries of the company, this didn't happen in a year or two. These companies had difficulties establishing their business and were probably considered failures at the early part of their existence. S3 is similar. We can all pick out failures of theirs and things that have not or are not going as planned. It’s part of building a business. The people that invested in Microsoft at the early stages are probably considered investing geniuses today but were called idiots at the time they initially invested. They didn’t even think computers were going to be around very long. Imagine that. S3 has a possibility to be big. We are trying to get into a company at the ground floor and unfortunately, you have to suffer the growing pains with them. It may payoff handsomely in the end. I am here because I think it does.
Sloth
I really don't worry that S3 will grow their business tremendously. The only thing that can keep the pps down is dilution. I think there are already too many shares outstanding at this point and would hope somewhere down the road that the BOD will decide or investors can convince them to reduce the O/S. This would really ignite the pps but it won't happen until we are very profitable and have some serious cash in reserve. It could also never happen. I will push that issue when the time is right.
Sloth
I'll fly you all to Vegas at .09!
I'm drunk just thinking about it.
Sloth
Lumik,
I don't care at all that you re-post my RB post here. Everything I post is for anyone to see. Holter had wanted my opinion because he thinks I am closer with Mr. Bickel. Well, this is not really true. I went to the two meetings because I live relatively close to Temecula (2hours close). I wasn't really too motivated to go to the last one because of the long, hot drive. California has had a pretty good heat wave. I go to these meetings for myself but also for the other S3 investors on these boards. I know if someone lived nearby a company in which I invested that was outside California, I would hope they would attend and report back.
I don’t know Mr. Bickel well but since meeting with him on those two occasions, I really feel he is a man of good character. I questioned him and the others persistently about difficult issues and he was honest. He was upfront about Redwood not performing as well as he had wished and that things were going to change. He couldn’t talk about it at that time but now we know Redwood has hired new, improved personnel.
Anyway, my point is that I am not tight with management yet I get a good read from them. It seems the volume has been fairly light lately so hopefully, we have secured a line of credit with a Chinese bank. That would be great. I think if we can achieve the line of credit without diluting too much, we will be set.
See ya,
Sloth
P.S. send me your email if you don’t mind. Scoobey has mine if you need it.
Let's face it. We're not going to rocket upwards quickly but this little company is doing the required things to make it much bigger in the future. These new guys are sharp and, in time, are going to accumulate assets for S3 when S3 receives stock in the RTOs.
Scoobey,
What's your email?
Thanks,
Sloth
Scoobey,
I read your message about whether Gemini shares common office space with S3I and CLX. They do. One of the benefits that S3 has is a very low overhead. They really only need a couple of people to field phone calls here in the states. In China, that's another question. That's where it all happens. I emailed Gemini and got this response from Andrew. The first part is my question and then the response:
Q: I see that CLXN has the same address and Suite number as SEIH, but a
> different telephone number. Gemini has the same address also if I'm not
> mistaken. I've been asked on the message boards why that is. I assume
> because S3I has no reason to have a separate office since they only really
> have a need to take phone calls. Of course, the conspiracy theorists
> claim the worst. Can you give me your answer so that I can better explain
> it to other investors?
A: Yes, to assist in managing our clients, several consulting entities maintain
common office space with some of our clients. It all relates back to the
compliance and turn-around work done by Javelin.
To your point about S3 and CLX, I will copy you on a response I gave to one
of the RB posters earlier this morning. It was a bit more pointed because
he was flirting with the idea that there was something improper about the
relationship between S3 and CLX. Of course he could not say what that was,
since there is nothing. As you know, incomplete information, insinuation
and exaggeration is what posters often like to term "due diligence" on RB
and other boards. I don't know if you should waste your time addressing it.
The simple fact, as stated below, is that there are obvious synergies with
Zonda and SINO UJE and management of both of these separate companies would
be idiots not to take advantage of them for the benefit of their
shareholders. Unless, of course, SINO UJE does not want more products to
distribute in China for some reason or CLX does not want an immense new
market in which to sell its products. Makes sense, doesn't it? I know you
understand all of this.
Sloth
The concept of Sino has been around for at least a century. Companies have aided other companies in bringing products into China for a long time. Most companies, unless very large, don't want to bother going through all the loops to get into it. I'm not sure how many competitors Sino has but we're way past the point of this being a new business idea.
Sino is building itself as a reputable company to which to go when entering the Chinese market. At this point in time, I believe their potential for growth is limited by Financing & Personnel and not by losing clients to competitors. This is the early stages of a large increase in foreign companies exporting their products into China. China is becoming more and more assessible to foreign companies. The potential is enormous.
Sloth
Additional meeting stuff:
At the meeting, shareholders received the agenda for the meeting that consisted of the introduction of the directors and officers and the presentment of business (the items being voted upon).
The first was the 10B authorized shares. I spent about 30 or 40 minutes elaborating how doing this has caused some long time shareholders to sell out of the company. They wanted to place emphasis that the shares are only authorized and not outstanding. I tried to voice concern that most investors when doing DD on a company look not only at the O/S but the A/S as well and this may cause S3 to be less attractive to new investors. I definitely got the point across that shareholders are not happy about the share increase and that is what many are focusing on at this point.
S3 has a long-term vision for this company. I do believe they are attempting to raise the PPS and are focusing on shareholder value. Unfortunately for short-term traders, their idea of increasing shareholder value stems from increasing revenues and assets which takes some time. Fortunately for long-term investors, their idea of increasing share value is on a much larger scale than most are thinking. They are looking for big, long-time investors. This is one of the things Equiti-Trend is doing. I asked how they thought Equiti-Trend was doing. I didn’t get the feeling that they were completely satisfied at this point and were still evaluating their performance.
The directors indicated that the deal with La Jolla is essential and the terms were very good. As I said before it’s to secure lines of credit. Just as an individual must have collateral to secure a loan for such things as buying a home, S3 must have the collateral to secure a loan through a Chinese bank. This is where La Jolla is essential. From what I’ve gathered, most financing deals allow the shares to be sold 40%, 60% and sometimes 80% below current market value. The La Jolla deal is for 20% below current market value.
Sino is doing great which is why they need the line of credit from a Chinese bank. If they can secure a line of credit, revenues from Sino will be big and dilution should be minimal. As we have the FDA (Food & Drug Administration), China has the SFDA (State Food & Drug Administration). Products such as For Life’s Stomocur 2 piece colostomy product need to be approved by the SFDA before being sold to the Chinese. There is a 90-day waiting period to get paid once these approved products are sold into the Chinese market. Another thing to consider is that Sino is paid in a “net” fashion. I don’t know if that’s for everything but the revenue received will be net. This is different from the U.S. principles, which receive everything as gross. These are only parts of the considerations facing S3 when consolidating the financials from the Chinese. I’ve only taken one accounting class in my life so I don’t know accounting but they seem to have a lot of work ahead to consolidate the financials by the end of September.
Erebusant had asked whether they would replace the accountants if they did not produce the financial reports on time. The accounting firm is Chisholm, Bierwolf & Nilson. I don’t remember exactly what was said but something to the effect that they are very suited to consolidate the companies and are very familiar with the Chinese principles.
The Parson Law Firm that was approved has been our legal counsel. We just had to approve them for the annual meeting. We will have to approve them next year as well. I asked them what would happen if shareholders voted no for the Accounting Firm or legal counsel. If we had voted no, then they would have had to have another vote. If that didn’t pass then they would have had to get feedback from shareholders who they wanted and then vote on that. This is possibly a long, costly process.
The board of directors is also all the same people we’ve had.
All of the directors are great people. Not that this makes a company but when speaking with them you know they are not some corporate suits that are going through the motions. These guys are diligent and personable. I know that they are working hard for the shareholders and that business is shaping up very nicely. Mr. Bickel is working his tail off. I believe that Sino is growing at a quick rate and Redwood will have many more companies to bring to the U.S. markets as soon as they are able to audit more companies and get them into the pipeline. As I said, Mr. Bickel is looking for 30 or 40 companies to be in the pipeline at any given time.
There were also things regarding Redwood that could not be discussed until the news is released.
The way things stand; S3 will be very strong with revenues from Sino and assets from Redwood. As soon as we are consolidated, we should be getting much more financial info and on a timelier basis.
I was going to post this on Raging Bull also but it's down for maintenance. There are still a couple of people on that board that I would like to keep informed about S3I so feel free to post this there if you would like.
See ya,
Sloth
Meeting stuff:
I didn’t get to ask all the questions that I wanted but I did get to voice our concerns about the 10B authorized shares. The main reason for the share increase is so they can secure lines of credit in China. They cannot get a line of credit in China because they do not have the assets yet to guarantee payment. By securing the La Jolla financing, they can secure a line of credit with a Chinese bank. They don’t plan on issuing all the shares but they didn’t want to have to return to the investors at a later date. I spent a lot of time telling them that they lost many long time shareholders with this increase of authorized shares. They tried to emphasize that the shares were only authorized and not outstanding. The financing deal with La Jolla is very respectable since La Jolla can sell the shares at a 20% discount to the share price. If they can secure the Chinese line of credit then the affect from La Jolla will be minimized.
I had posted that I wanted them to grow the company slower and use the revenue created from previous Sino deals to fund the newer deals. This only allows them a 1:1 ratio so business would not actually grow. The financing allows them to fund these Sino deals so that they can get multiple deals going. There is a 90-day period before S3 actually gets paid. S3 has to buy the products from these European companies and then sell them to the Chinese. This takes a great deal of money to keep the products flowing into China.
Mr. Bickel was very honest about everything. He said that Redwood would probably only close one client before years end. There are others but he is very conservative when estimating. The thing about Redwood is that we send auditors over there to audit these prospective Chinese companies to see if they are good RTO candidates and the approval process is demanding. We have 7 or 8 companies in the pipeline but only a small percentage pass the approval process. Mr. Bickel said he plans to get around 30 or 40 companies in the pipeline. Many companies in China are also controlled by the government so that is another factor. Even if the Chinese government only owns 5% of the company, they make the decisions. If we want to do an RTO with one of these companies, we must buy out the government’s interest, which again take financing.
The consolidated financial will be at the very end of September and they still have tons of work to get it done. It may be an option in the future to get numbers in between quarterly reports to show the company’s progress on a timelier basis.
The dividend thing on the website that Scoobey asked about is old. This was for the BDC status.
There are no intentions of a reverse split. A reverse split does nothing positive for the company at this time. If it was to uplist to the Amex or Nasdaq and it served the company’s interests, then it would be considered. It’s a non-issue at this time but I know it will continue to live on these message boards.
They hadn’t really thought about canceling extra-authorized shares by the company.
I know this is all over the board but I’m trying to rush to get some stuff out to all of you ASAP. I know I forgot much of it but I will add more later and answer additional questions that I can.
Sloth
Hey all,
The meeting was good. They are trying to secure financing through a Chinese bank but cannot do so unless they have a guarantee that they can pay. This is where La Jolla comes in. This is the only way S3 can secure a line of credit as it would be for anyone that is trying to get a loan.
I am at work. I am trying to type up a more detailed account of the meeting. I will post it later. The other items voted were already things we had. You just have to vote those items every annual meeting. The auditor, law firm and BOD are all the same as we had. Next year, we will have to vote on them again.
I will post more later if I can. Sorry, but I'm pretty busy. The overall outlook for S3 seems very promising. Obviously, they aren't going to make the shareholders feel bad about their investment but the company is performing quite well.
Sloth
I have questions from erebusant, Lumik and Scoobey. I have also made note of some of the gripes and complaints I've read that I think are relevent. I'm not planning on being as protaganistic as I was last time. I think they need to know that shareholders are happy with the progress of business but not necessarily with the expense at which it comes.
I will be nice and polite but Jim needs to know that many are not happy and want to see S3's intention to help shareholders build share value in the future.
They better have some snacks too, damn it!
Sloth
It's a go for me tomorrow.
So get your last questions in today if you have any.
Off to beautiful Temecula tomorrow,
Sloth
Scoobey/Lumik,
I got your questions. I have not been cleared to take off from work yet but I'm almost sure I will be able to. The meeting is at 1pm which means I won't get back until nighttime because I will hit late traffic. It takes me about 2 hours to get there without traffic.
I will try to type something up about the meeting that night and post it for everyone either late Thursday or early Friday.
Sloth
Homework,
I need some questions from longs early next week.
Sloth
Erebusant,
I have noted your question and will ask it if I can attend and if time permits during the meeting. I have asked for next Thursday off so I will find out soon if I can attend.
Anyone else who has question should submit them ASAP since the meeting is next week.
Give me your reasoning behind the question if it's not obvious. I haven't been keeping up with S3 much lately so questions regarding company structuring, share structuring, financing, etc. needs some supporting info so that I can understand the question and be able to respond to their answer.
I want to grill them a bit on the dilution. I want to know how they intend to eventually bring more value to us since they have been offsetting any company growth and possible share appreciation by diluting the share's value.
Let me know.
Sloth
Hey everyone,
Unfortunately, I think this La Jolla thing is going to make pps appreciation something for the future (post 10k/September). I'm not going anywhere so the timeline isn't a really a big thing to me. I sure hope the financing will do wonders with growing the business. Only time will tell. As of now, has there been additional dilution? I would imagine that everyone is still voting no on the increase. Where are the shares coming from for the La Jolla deal? Are these shares part of the current A/S or are they needing the increase for the La Jolla deal?
Hope all is well with everyone. I am not 100% sure I can attend the meeting but I will do everything I can to be there. I will keep you posted. It depends on my new employer. I think I can miss that day. What's the date of it? July 13th?
Sloth
Scoobey, you are part of the reason why enjoy these stock boards. I, like many of you know, am a working stiff in printing. Not the most prestigious industry but I enjoy working with graphics and being creative. The same is true with investing. I enjoy investing. It's challenging and sometimes rewarding.
S3I, like Lumik said, is having growing pains. They're growing too fast. Maybe the Bickels are in a bit over their head with all that's happening and they are panicking a bit about how to get it all done. I think most have had too many things to do and anxiety over how to do them all. The Bickels want more shares to fund these business deals immediately. I have been invested in S3I for a while and knew it was a long-term investment since they were a mess in late 2004. No company goes from near bankruptcy to a well oiled, profitable machine in a couple of years although people on these stock boards think this is commonplace I guess.
I think these boards are used more by people trying to make people feel bad about their investment than in discussing them. I used to own Sirius but sold last year. I have no reason to visit that board anymore and talk smack about the stock and tell people they should sell. Why? The only motivation would be to make people upset and feel bad about their investment. That is what is happening on all these boards. It's not only S3's board, it's every one that I see. I guess people are just miserable and would like others to feel the same. I can't explain it. Psychologists say that people speak poorly of others in order to compliment themselves. I think that's part of it on these boards but it goes deeper than that as we all know. I sometimes feel like I'm reading posts of 12 or 13 year olds. The name-calling and rumor mongering is out of control.
My point is I will continue to read and post on these boards as long as I am speaking with fellow investors. It' just getting harder and harder to sift through the trash to find them. This board is far better than RB. I am holding all my shares for the long haul. If we can get past this increase in authorized shares thing, the pps should make us all very happy. The potential is enormous. Hopefully my portfolio balance will mirror that potential sometime over the next couple of years. I do think that somewhere down the road that S3 will be acquired. The Bickels want their time freed up and that would be a reasonable outlet. Whoever buys them will probably be much more capable of handling the huge business growth that is to come. This should make for a good shareholder payday. Of course, this is my speculation as to what will happen a year or two from now with this company.
Keep up the good work longs,
Sloth
I am as excited about S3I as I have ever been. I just don't post on these boards too much any more for a couple of reasons. One is that I'm pretty busy as of late. Two, I think these boards are used as a limelight for the handicapped. Most of the people who post continually don't even own any stock. Then you have the people that think they are daytraders and are informing everyone of their trigger prices for which they will trade. Jesus Christ, there are thousands of stocks to trade and you would think there were only two or three based on how some people treat S3I. Helpmeout or Anytimetrader must be brain damaged. The guy acts like he must invest in S3I because there are no other choices out there. I'm not a violent person but these people need to be smacked. Mostly is the same. What is he? Dudley Dogood. He posts day and night about a stock he doesn't own or did own for a short time. He always takes pieces of other people's posts and analyzes them. Don't people have something better to do with their time than this. If you're paid to post that would explain some to me but I think most have the retarded gene swimming with them.
Anyway, I am venting because I think RB and Ihub are great in that they are places where investors can share ideas. I think, unfortunately, that it's used for reasons that are useless most of the time.
Thanks Lumik for your info. I appreciate the real posts. I'm sorry about RJ. Scoobey, if you speak to him, let him know that he is missed by me. I will try to attend the annual meeting since I want to drill them a little harder than last time. Get your questions ready for me like last time. Jim won't enjoy my attendance as much this time.
Sloth
If anyone believes that there is balance between the positive posts and negative posts during the last two weeks you are crazy. I have read nothing but whining and complaining about 3S.
Anytime, you should read a book about R/S v. increasing the o/s. A reverse split does nothing to raise capital for a company. If you do a 1:2 R/S then the o/s is cut in half while the pps is doubled. The market cap is still the same. It raises no money whatsoever. If you add additional shares then you raise capital but dilute shareholder value.
An R/S in only negative in the sense that historically the pps tends to decline afterwards just like the price tends to increase after a forward split.
This whole R/S talk is either to negatively influence the stock since a reverse split is considered negative by investors or you simply are throwing out terms you don't understand.
To simply base the Bickels performance over the last year on the fact that they are asking for an increase in A/S is like saying Barry Bonds is a terrible hitter because he struck out his last at bat. Over the last year this company has gone from almost BK to profitable. The Bickels have worked their azzes off to get it here and their performance evaluation is limited to this latest proxy request. This whole 3B increase in A/S is ridiculous for shareholders but so is saying that the Bickels are morons, incompetent or whatever adolescent insults you want to tag them with because they are asking for it.
They've made some great choices over the last year to save and grow the business but this share increase in a very bad one. It doesn't affect the business but it affects the pps which is bad for us. Am I disappointed? Absolutely! Do I think the Bickels are doing a bad job? Absolutely not!
Everyone is entitled to their opinion but back it up with reasons. Reasons more in depth than the facts that they want us to vote for an increase in A/S. If you say that the Bickels have screwed shareholders then how did they do that? The screwed is past tense and most everything the Bickels have done is pretty positive for our future shareholder value. The increase has yet to happen and is up to us to decide.
Sloth
Scoobey,
Everything is looking really nice. Especially for a scam. LOL
We will weather all this nonsense and get back to business soon.
Take care,
Sloth
Can anyone tell me how to ignore people here on IHUB as you can on RB?
TIA
Sloth
Hey all,
I've been out of the loop lately. I got layed off work last Friday so I took a little time off. Since I worked swing shift, I usually posted from work. I don't spend too much time at home on the internet. We were pretty slow so I spent a good amount of time reading the boards and posting my nonsense. I will start looking again next week. I'm in printing so there should be some jobs out there.
Anyway, still not worrying about any of this. I am waiting and wish I extra money to increase my position but oh well.
Talk to everyone soon.
Sloth
Anytime, glad you made some profit. A reverse split serves absolutely no purpose. It doesn't raise capital and capital is what S3 needs right now. In fact, an R/S usually reduces the pps after the split making it more difficult to raise capital. I don't know if you're pisssed off right now at the Bickels but I think you know that an R/S serves no purpose. You should be a gentleman and leave the longs to discuss our investment. I know you always try to abstain from arguing with OTC and his many aliases so I know you don't want to sink to lower levels here. Please don't regress on this board and become a negative influence for whatever reasons you have.
Good luck with your next stock pick. Hopefully, you will be happier with it. S3 has a bit more waiting to endure but it will do excellent in the long run.
See ya,
Sloth
The Bickels have taken a company that in all honesty shouldn't have survived from late 2004 through the first half of 2005. It is impressive to me that you can go from a company that has nothing or actually less than nothing with the issues they had to a prospering company that doesn't know how to exactly handle the quantities on new business in front of them.
There still are the remnants who will try to pull S3I back to the grave but we are far past that point and it's only the early part of 2006. So in 16 months, the Bickels have brought us 180 degrees from near death to a life where our problems are now how to fund all the new business. That's a pretty good dilemma to be in considering the previous alternatives.
I am not happy about additional shares being added to the O/S but it is very understandable. S3I has pretty low overhead but the upfront fees for the subsidiaries are fairly substantial. Where should they get the money? I don't know. I would do the same thing as Mr. Bickel is doing. I would think that I would try to schmooze the shareholders before asking them for the money but IR hasn't really been an exact strong point for S3I in the past. Hopefully, EquitiTrend will improve that. We are already getting better PRs although some people, and you know who I'm referring to, are too bitter to acknowledge the improvement and spin it to a negative.
Mr. Bickel is not getting my vote for 3B shares nor is he getting my vote for CEO of the year. Not yet anyway. He still has all my respect and confidence going forward. Anyone who can do what he and his son have done in 16 months are doing an absolute fantastic job. The IR part of the report card is not so great. They have done a poor job keeping us updated with the business's developments. I know this was not their main concern over the past year since the company was being resuscitated. If you don't have a company to promote, why bother promoting it. This is 2006 and things are different now. Now, I expect them to be more interactive with the shareholders since business in not just surviving, it's thriving.
For anyone to say the negative things about S3I could only be because they don't know the past and how quickly S3I has turned the business around or they are just bashing this sub-penny stock for employment, bitterness, revenge, jealousy or a combination of them.
I know most true longs are very happy where the company is right now. Of course, complete happiness is not really attainable with shareholders because they always want more. Of course, we shareholders wish S3I had all the money they're owed instead of asking for it from us but those are their options. Our options as shareholders is which proposals do we vote for and how do we vote them.
I don't see the O/S increasing so that would be a NO but I do see promise of a legal counsel and directors being elected. So that's 2 out of 3.
If they do get a quorum then questions can be asked at the shareholder meeting to address their lack of funding. Personally, I just don't see what S3I could say to make the shareholders agree to the issuance of 3B more shares. It just will not pass unless the payoff is impassable.
It is shortsighted and unreasonable for shareholder to doubt S3I's business at this point but it's not to doubt the means at which they are trying to attain funding for new business. The business is stronger than ever so if you liked S3I in the past, you should love it now. Their image and rapport in China is better than ever so again you should love them even more. Everything is better than it was 6 months ago. So why the doubt and uncertainty among shareholders? One reason is the lack of detailed information which is no reason to lose confidence in the company. The pps dropping the last week or so is another. S3 is not selling the shares. The uncertain shareholders are selling them. This is partly due to the large amount of bashing of this stock.
Weaker hands don't monitor the progress of the company's business, they monitor the pps to flip the stock and make a couple of bucks. This causes price swings. When we finally looking to add the last piece of the puzzle which is a consistent revenue stream to fund operations and new operations, these price swings will eventually become less and less when these receivables become received. S3 will pop up quickly to pass the .0039 intraday high that we recently saw and continue to steadily rise as the business grows and becomes more and more transparent.
That's my take on it,
Sloth
More WOFE stuff:
This is a combination of two sites. The link I've posted indicates 1,000,000 RMB being $120,500 and the below link says $140,000. It changes with the currency exchange. Today 1,000,000 (RMB) Yuan is $125,000 U.S. dollars according to Yahoos currency converter.
What is a China Wofe Company?
A wholly foreign-owned enterprise is a business entity formed in China entirely with foreign capital. It is totally under foreign control and does not have any formal Chinese ownership participation. For a foreign company to be able to issue receipts and export goods from China, it must be able to legally registered as a local company or a WOFE. A WOFE is set up as limited liability entity and represents separate legal persons and is taxed according to local legislation.
WOFE's can generally control their own governance through the articles of association and the normal minimum paid up share capital starts from 1 million RMB (approximately US$140,000), however some provinces offer lower capital requirements in order to attract more foreign investment. Many foreign investors find this type of company attractive because of the full control and 100 percent ownership.
On average, most WOFE's are set up within two to four months
http://www.bycpa.com.hk/e/info/china/WFOE.htm
Sloth
A WOFE needs to be formed because that is the only way which the Chinese will do business. If the Chinese buy something like high tech medical devices they will not deal with a company that is located in Germany. Therefore, S3I and the subsidiary company set that German company up in China to market the product from there. The products most often are not manufactured in China but assembled in China. The parts are manufactured in Germany and then shipped to China for assembly. That way the products are considered to be made in China and companies will do business with them. Otherwise, China is closed. It's similar to how products here say made in the U.S.A. when in actuality they are made elsewhere and just assembled here. Many people here want to buy only American and people in China want things made in China. They're much more particular in China and will not do business if they have to call another country to get assisstance on some device they bought. They want everything in house there. I don't know if it's a Chinese thing, a communist thing or both.
Also, Lucyinthesky made a good point about exporting which I had not thought of.
This makes the WOFE essential to business.
I'll check in later.
Sloth
Give the BOHICA pipe a rest would ya.
I wish I could talk directly to Jim. I would love to know his thinking as to what S3I could do with this additional money. I would imagine there's a lot of things at their fingertips right now but since the Chinese payment process is drawn out, they can't fund all the necessary expenses to process multiple new Sino clients and assist in reversing Chinese companies to the U.S. They are cash strapped I'm sure but to dilute the shares by 250% is not worth it. If it is worth it, they are doing a very bad job of selling me (us) on it at this stage. I am planning on calling EquitiTrend in the morning to see if I can find out anything. This is really bad timing on their part.
Sloth