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The PLNI posts I am posting are not intended to be negative. They are intended to make others on this board aware of what I see in PLNI's financials at this time. If you remember, I always asked for visibility. Now that we have some, we need to use it to our best advantage.
I have no idea what alternative financing might become available to PLNI. Perhaps some investor group might want to get into this program and see an opportunity.
I worked for a pipe manufacturing company in 1970's that was supported by a Japanese steel company (both financially and managerially) for almost 2 years in order to prevent it's demise because the potential for steel sales was apparent. The company still produces steel pipe today but has been purchased by other manufacturers.
Please don't think I am degrading PLNI.
I think that, at this time, I would not buy in myself at .004. I see the MM's increasing their working spread to .0005 which tells me that they are becoming more cautious. That's why I think we are not yet at the bottom. Also, I see the need for PLNI to obtain additional capital (my last post).
Anyway, I hope we all get to make some money here. I would love to have this stock take off. I just think that it will take time if they follow through with their plans and I still don't feel that, without additional acquisitions (which I don't see in the immediate future) that PLNI will be more than a small company trading in the pennies. I just hope that it gets to trade at enough pennies that every single small investor here gets a few bucks extra.
Just my opinion.
PLNI's write-off of the tax reserve was openly apparent when I opened my eyes and read what I wrote and re-reviewed the financials.
JT has transferred over 50% of the ownership of PLNI to LexReal (his limited liability corporation) by virtue of the 7.3 billion shares for the series B convertible preferred stock (note 1 after officers and directors list) recorded as committed but not issued. Conversion will be just a note (henceforth) since the commitment has already been recorded.
That’s a bit humorous too since he boldly proclaims in the Management’s Discussion that they have a $12,821,185 (asset) loss carry forward to write off future profits against and yet, has reserved a write-off for it that claims that it may not be available (8 Income Taxes, continued - see notes about the tax reform act of 1986)
Let's talk a moment about working capital and financial needs of PLNI.
Working Capital is defined as current assets minus current liabilities. Working capital measures how much in liquid assets a company has available to build its business. The number can be positive or negative, depending on how much debt the company is carrying. In general, companies that have a lot of working capital will be more successful since they can expand and improve their operations. Companies with negative working capital may lack the funds necessary for growth. -also called net current assets or current capital (definition source – Investorswords.com).
Current assets = $1,336,253 (12-31-05 unaudited statements)
Current Liabilities = $4,045,939 (after forgiven debt)
Working Capital = -$2,709,686. Let's remove related parties debt and we have a working capital deficit of -$1,644,971. This is from the pro-forma consolidated '05 financials.
At a Profit Before Tax of 15% (which is very good), PLNI would need to do about $11 million in sales plus enough to pay Semco 50% of Semco's profit (Note 11 - Subsequent events) just to cover the deficit which doesn't include manufacturing costs, wages, and operating expenses and assumes the related parties forego debt.
So, if we go back to the 2003 statement, we see under Item 6, Management's discussion and analysis,(page 10)as of 12-31-04, they say that they need to obtain additional funding through debt or follow on stock offering or their business plan will fail.
Since their working capital has deteriorated dramatically since then, I would expect additional stock offerings unless JT has some more cash to infuse into the business. But, if he had more cash, why would he have taken a reorganization Ch 11?
My opinion is that low cost financing will be difficult at best.
Risk capital is sometimes available but the cost is high.
Nope, looks like more stock offering to me.
NITE & UBSS seem to be doing a good job of holding at .004.
Just my opinion.
Except for the numbers and references made directly to the financial statements that were published by PLNI, this posting is my opinion and none of this posting is intended to influence anyone in their decision making for any business transactions of any type with any company for any reason.
PLNI's par value change could also be in response to the downward pressure on the shares since a corporation cannot sell their stock for less than par. Here is a link that helps explain par value a bit more in lay terms that doesn't involve accounting to understand.http://thismatter.com/Money/Stocks/Legal-Capital.htm
rrm, PLNI's par value change only has meaning if you have committed conversions or are planning to make future arrangements.
Implied in my last post was one in many reasons to reduce par value, the opportunity for JT II & Bonn to covert their notes at par, dollar for dollar with a 1 share kicker per 3 shares converted. If the market is anywhere above the par value, you are offering a good deal to anyone you offer a "par" value stock purchase without spending a dime of your working capital and, at the same time, divesting yourself of an obligation (or purchasing an asset, even to the extent of additional incentive in an acqisition).
If the par value remained at .05, what incentive would there be for either of them to convert their notes with a market value of .004 + or -? In other words, why would I pay (convert) $0.15 for 4 shares with a market value of .016?
You can set the par value at anythng you wish. Other than I described above (in general terms), par value has no meaning.
I hope this helps your understanding of par value and some of the things you can do with it.
RRM, re PLNI's beneficial interest in SG&A. Look at the common stock (item 10). 2,277,253,729 shares were issued to JT (majority stockholder) & 10 million shares to an investor. These transactions were recorded at the fair market value on the issue date. That's your $27.6 million SG&A beneficial interest. They are worth about $9.15 million at Friday's PPS.
The account could be named "Owner's Equity" or something easier to understand than "Beneficial Interest" but that’s usually reserved for sole proprietorships and S-Corps.
Be aware of the conversion of the Class B Preferred Stock that JT has which is recorded at a conversion of 7.3 billion shares of common, which is accounted for in the '05 beneficial interest. He loaned PLNI $6 million and gave himself the preferred stock through LexReal LLC (see '05 notes 1 & 2 at the bottom of the page after the Executive officers and Directors list). This is also recorded at the fair market at the time it was committed.
It is committed but not issued. It is recorded when committed the same as a dividend. At Fridays PPS of .004 it's worth about $29.2 million instead of the recorded $71,850,000 that's recorded in the P&L. Still not too bad for a $6 mill loan. If any of this stock goes anywhere, it will mean dilution. Perhaps, not immediately if the stock moves as restricted.
Interesting to note on item 10 of the '05 statement that PLNI (or Wicklund) was delisted from the OTC:BB. Doesn't say why. I also tried to look up a proceeding in the SEC files but I couldn't find one. I know one must exist because JT said he was delisted. The article below says that at June 19, 2004 they were OTC-BB but in the article it says OTC Pink Sheets..
This article might be interesting. I was looking through some PLNI history today and ran across this piece from June 19, 2004. WKDH is Wicklund and was doing some promotion at that time. Might sound familiar?
Oh, by the way, if you look up the current PPS on the other hot pinkies listed in this promo for PLNI (Wicklund), or just look at the Friday last sale I posted behind each one, you will see why I learned not to hold long on a pink sheet stock.
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Date: Sat, 19 Jun 2004 16:49:15 +0100
Message-Id: <1736771169802.51130@lvcckefvznjim@aaiworldmarket.com>
From: Candy Jaramillo <lvcckefvznjim@aaiworldmarket.com>
Subject:
****WKDH****WKDH****WKDH****WKDH****WKDH****WKDH****WKDH***WKDH***
New York Times Financial Digest
Investor Alert on New Hot Issue
Take a look at our some of our most recent Strong Buy recommendations...
November GDVI at 0.04 High 0.29...625% Gain! (last-.07)
December HTSC at 0.70 High 2.95...329% Gain! (last-.065)
March/April DMTY at 0.30 High 0.90...300%Gain! Registration revoked sec 12(j)-Failure to file. No longer traded.
April IPYS at 0.38 High 1.10...189%Gain in two days! (last-.001)
May/June WKDH at .02 Don't Miss Out! (last-.004)
(OTC-BB: WKDH) is an environmentally friendly plastic infused construction supplies and accessories manufacturer who has an exclusive distribution agreement with Georgia Pacific which will allow the Company to emerge as a clear leader in the 1 billon US market for construction rebar support. With revenue expected to exceed $20M from this one contract alone and the publicity that the company is gaining from this relationship WKDH is on its way to small cap NASDAQ. Investors now have the chance to get in on this deal before much of the news hits the street. Don't miss out on this opportunity to see quick trading profits!!
SPECIAL INVESTMENT ALERT
Wicklund Holding Company (OTC Pink Sheets: WKDH)
Current Price: $0.02
Shares Outstanding: 50 Million
Market Capitalization: $4 Million
Short Term Target: $0.50
12 month Target: $6.00
A Few Reasons to Own WKDH:
1. Wicklund derives significant advantages from its developed strategic relationship with Georgia Pacific Corporation, a major building products distributor and the 2nd largest reseller of rebar in the US. Through this relationship, the Company has obtained an exclusive US marketing and distribution agreement and a significant order commitment which will drive revenues over the near term.
2. The Company has developed a leading position in the rapidly expanding US market for plastic lumber products with introduction of its DURALAST line of plastic and plastic composite lumber products. Offering a number of advantages compared to conventional pressure treated lumber, plastic and composite lumber are highly durable, do not rot, crack, splinter, or decompose, and require almost no maintenance; increasingly plastic lumber is becoming the product of choice for a number of new construction and building applications. Sales of plastic lumber are growing at over 40% per year, and the US market is expected to reach $1.5 billion by 2006
3. Wicklund's patented line of rebar supports are the most durable and high quality product currently on the market, and have been validated through successful use in a number of major, high profile construction projects including Boston's "Big Dig" transportation project, Cleveland's Rock 'n' Roll Hall of Fame, the Tennessee Aquarium, the Nuclear Regulatory Facility at Los Alamos, NM, and the Toronto Skydome. Wicklund's plastic rebar supports are widely regarded as the highest quality in the industry and in testing at the University of Kentucky have demonstrated superior strength, resistance to water, and ionization, all of which contribute to concrete deterioration and spalling. Moreover, relative to the closest competitive products manufactured by Aztec, the market leader (a division of Dayton Superior), Wicklund's products are available at superior pricing levels
4. Wicklund is well situated to benefit from an upturn in transportation infrastructure spending provided by recent passage of the Safe, Accountable, Flexible, and Efficient Transportation Equity Act of 2003. The signature of this bill, an improvement over 1998's $218 billion TEA-21, will authorize $275 billion in transportation spending over the next six years to maintain and repair the nation's aging transportation grid.
5. The Company has created a strong and experienced management team, who has been successful in establishing Wicklund's strong product offering and negotiating critical distribution relationships, and brings unique industry experience and knowledge. CEO James Turek has an extensive experience in the plastics industry, with past positions including President of International Plastics Corporation, a distributor of consumer recycled plastic products, and has played an instrumental role in the R&D efforts of the Company.
This stock will see major upward movement in the next several weeks. Right now, WKDH is one of the Street's best kept secrets, but it will not remain that way for long. This is a unique opportunity to get in while trading levels are still low. As the Company goes forward with its business plan and signs major new contracts, this stock will move quickly. This is your last chance to invest before WKDH begins major price appreciation. This stock could reach $0.50 in the next five trading days!
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HYPE!
In spite of all of this, I still think that PLNI might eventually be a good small company. I'm not sure who will own it when it becomes a good small company but it could be good for the stockholders if someone large does buy it.
Just my opinion, if I were going to sell a company, I would position myself with the stock ownership in a similar manner to Turek.
I did find it amusing that the notes indicated a huge increase in the net assets (which are defined by the SEC as assets minus depreciation & liabilities) when the assets are owned by the creditors.
And, no cash! How does a corporation run with no cash? I can't.
JT took a lot of his debt away by forgiving himself the obligation to pay himself (take out of one pocket and put in the other one). He also converted some notes payable to himself into stock. Makes the financials look better.
Turek II & Mr. Bonn have notes that are convertible in dollar per dollar of the company stock at par value (.001) and receive a forth share for each 3 they buy. So, for each dollar they convert, they get 1333 shares (1000 + 333 @ .001). At Fridays PPS, that's about $5.33 per dollar loaned. Not a bad return. The problem arises in that the sale of the securities by any of the parties causes a dilution. The good part is, if the company continues with their intent to report, any sales of shares by close parties (close party transactions) must be reported in advance of the sale so at least you get some visibility. Watch Edgar closely! Also, unless JT dumps a ton, the few hundred million that JT II & J. Bonn would drop shouldn't make a great difference in the longer run, assuming the company fulfills its plan and is successful.
Always goods and bads. But, as one poster said, I do that. Maybe I need to see both sides myself.
I have no stock in PLNI right now because I am with TDAmeritrade and I don't think we've seen the end of the slide yet.
One last bothersome thing to me (see: 8. Income Taxes, continued) that I will mention here. I have other concerns but if I express too many I will be called a basher again and I am certainly not one of those.
The net operating loss carryover has been written of to a reserve and the notes state why. I think everyone should read this part. It speaks of limitations due to cumulative ownership change of more than 50% over 3 years. It further talks about issuance of additional equity securities. If they haven't been determined, then why would I want to write off a tax benefit? Oh well, guess we'll have to wait and see.
I also have no agenda, good or bad. Just want to make a few bucks in the market but not at any small investor’s expense. Wouldn't mind hitting the MM's for a few bucks but they have the trump card - money.
I do intend to buy back into PLNI when I feel the time is appropriate. I think that there is still money to be made in this stock but, as usual, I won't be holding long. It's not the way to get rich but it's my methodology. Take a couple bucks and hide until the next opportunity presents itself.
I will be happy to discuss anything anyone else feels is incorrect about anything I say. I will answer if the other person makes a specific point that can be discussed and/or gives their point of view. Just making derogatory remarks won't make it. I am prone to error the same as anyone. I do not pretend to be the last word and I sure don't know more than everyone else. Maybe I should have posted under "Fallible Jim". I stay on this board because I do believe it is a great source of information. And, I thank all of you who have posted up-to-date things on PLNI. I've acted on some of the info posted here before.
Good luck to everyone and do your own due diligence, both the good and bad side. Every company has a skeleton or two. Find it so you can make wise decisions on your investments.
Information included in this posting is from the '04 & '05 financials and an article posted by the New York Times Financial Digest. Any reference to anything else is my opinion and is not intended to persuade anyone to make any decisions about any investment of any type. This is only my opinion.
I said I was through posting but I decided, after reading all of the speculation on why the PPS is staying down, just read the notes to the financials. The answer is there.
Read about what JT says they have to do to continue their plan. Also, in the financials, the company is borrowed to the max (assets VS liabilities - published fact). JT just went through bankruptcy (published fact). So, where will the money come from?
He tells you in the notes.
OT-Hey Lookin, please give me an example of one of my posts that bashed PLNI. I have said that market makers seem to be manipulating the PPS which happens with most pinkies. I said that PLNI looks like a good company that is going in the right direction; that JT has a great bunch of managers with good credentials, that the company was a shell prior to the acquisitions. I said that I believe that the compnay will be a better company to hold long as time goes by but I, personally am using it as a channel company (get in low and out higher and take a few bucks). I've said that the current financials suck, which they do, and I am looking forward to the consolidated financials. In the meantime, I am trying to get more visibility into the company. I will buy in again when I see a resolution and adjustment to the current PPS valuation.
I have been bashed by a lot of folks who seem to read more into my posts than I write. If you are happy directing comments toward me instead of attempting to share information, please do so. I suppose everyone needs an outlet to vent right now.
Well, everyone is entitled to their own opinion.
Since you all seem to be interested in justifying your positions and decrying the truth, I shall make you all happy by no longer posting on this board.
I wish you all a lot of good fortune and hope that you will look at others who try to enter the truth as they see it, with more acceptance and less animosity.
My only suggestion to the last messages I read this morning is that you, as the individual who wrote the three cutsie posts to me, open your eyes, use your brain, and think before you type.
Responses will not be answered.
Goodbye and good luck.
As I told you in my only post after calling Ameritrade, I have no idea why they won't trade. I just repeated what the guy said as closely as I could since we talked for about 10-15 minutes while I was on hold several times while he checked.
OT-I spoke with the Portland Office of Ameritrade. The 1-800 number is available on Ameritrade. Sorry, but I didn't write down the dudes name. I was on the phone with him, on and off of hold, for about 10-15 minutes.
You said you were an Ameritrade customer so just go to the "locate a branch" and call the Portland Branch. If you can't get the number, I'll look it up for you. Let me know.
Thanks gopack. They told me that I couldn't get anyone to tell me more and they never mentoned the compliance department. Glad you had greater temerity. Looking forward to what you find out.
Other Topic -BigInvestor I'm 70 years old, retired, and I applaud you for getting your education. I know that it is a hard road. Been there, done that. Even taught Cost Accounting at a Jr. College.
Please accept my apologies for reacting too harshly. I assure you that I have only tried to be helpful. I don't know what goes on behind the doors at PLNI but I can read financials.
I neither support nor intend to degrade PLNI. It has made me money and I want it to make me more. Therefore, I want it to succeed.
I honestly would like to see every investor here make money. The market makers have so much to work with that it's hard to hold a pinkie-long.
I think JT is a very smart business man who has surrounded himself with some impressively credentialed managers. I also think that the company will be successful but it might take awhile. My questions to the SEC will be about reporting requirements and if the stock is oversold. I am not on a crusade nor, as I said before, have I an axe to grind. I am just seeking truth here. It might end up going nowhere.
Anyway, best of luck in all your endeavors and get your education. It's your gateway to a better future.
Ameritrade told me that the reorganization department has pulled the stock (PLNI) from sale to protect their customers from a possible impending problem that might make the stock untradeable.
This is a business decision based on information they have received about the stock that they are unwilling to share with me or any other members.
I am paraphrasing as closely as I can.
Please notice the words "possible" and "might" in the first sentence.
I will not give examples of reasons (that were told to me) that they stop the sale of stock because it could be misleading and none of the examples he gave me might apply to PLNI.
Sorry I couldn't get more difinitive information. I tried but that's the best I could do.
Nothing new at Big Apple yet.
OT - I have no conspiracy theory. I have said before that I feel the company is going in the right direction. I have been in and out of PLNI several times and will continue to do so. But, I felt the stock was going to drop on the strength of what has been issued from PLNI.
I have simply stated my beliefs and am going to find out truths. Why is anyone against asking outside of the company?
I have been in contact with these folks too. I've heard answers to my questions. I just spoke with Rodney at BA and he is trying to find out why the stock was stopped at TDAmeritrade.
I don,t want PLNI to fail. I just don't believe that I want to hold long at this time.
Man, why is everyone so edgy and feel a need to justify a position or a small company?
As I also said before, they will tell you all of the good points. It's up to the smart investor to determine the other half of the story.
I could care if you put me on IGGY. I have no axe to grind.
I have answered questions from other people and I have done so to the best of my knowledge, which is extensive.
Obviously, I wasn't too far off because the PPS has done what I predicted it would do.
I would hope that everyone here gets rich. I will look out for myself.
So, good luck and if you want to be a little bit more informative, tell everyone what you heard from Mr. Howe or their stock attorney, Mr. Bua. Let everyone know what you know about new acquisitions and any new plans. That's why folks post here. More positive info and less derogatory language might be better.
biginvestor and gopacker, here's your chance to give some info to the board.
Maybe you could call your friend "HOWE" or the attorney "Bua" and find out for us what's happening.
I got the feeling from your posts that you guys were on the in here so do some meaningful posting. Get some info!
Your chance to shine!
Other Topic - fynley, I could care about what the idiot says. PLNI needs some boosters. Obviously, a lot of other investors in PLNI aren't buying the stuff that's being promoted. I'm ignoring him completely. He can think what he wishes. He obviously feels he knows something we don't but he says nothing.
Anyway, I am going to file an inquiry tomorrow, even if I don't hear from Pink Sheets by then because I spoke with Jennifer at B.A. and she said that the shareholders are greater than 5000 but she doesn't know exactly how many more. As a representative of PLNI, that's good enough to submit the question to the SEC.
So, I will ask the question and see what transpires. I suppose it will take awhile. It took a week for the call from my first contact (e-mail) to the SEC.
I'll post any response I get.
My opinion.
OT gopack, first, it doesn't make any difference what their last statements of 05 were. As soon as they fulfill the requirements to be an SEC registered reporting company, they must do so.
Next, Sherlock, your comments were so wrong they didn't justify an answer. You are stuck on the 05 financials and they are not as important as the SEC requirements and subsequent events. Wake up and pull you head out and see the light.
Third, if you are an accountant and have any experience, as you claim, you certainly don't show it.
So, Dude, we don't see eye to eye. I could care. The investigation will happen and you can insult and exercise you fingers as much as you wish.
Since I see no intelligent reasoning behind any of your statements (except that you say they now have 3 new molds which would certainly make them SEC registry eligible), I see no reason to answer any more of your insults or idiotic short-sightedness.
Think what you wish. It doesn't cost me a cent. Invest as you wish. It's your money. Write what you wish. It's an amendment right. I will do the same and I am filing an investigation request.
Good fortune in your investments and I hope your 50 million shares (u-bet) make you rich.
OT Spencer, I am not playing or threatening or trying to do anything except see what is happening. As soon as I get a verification of 500 stockholders, I'm there.
This is not an accusation of wrongdoing by me against PLNI; it is just a question, submitted on an SEC form, inquiring if PLNI is required to be an SEC registered company or not.
The SEC (representative) has assured me that if I do this, they will investigate and see if the company does qualify. They will inform me of their decision as soon as possible after any notification is given (if any) to PLNI. It will be public record by then and will already be published on the SEC site.
I will forward any info I receive to everyone as soon as I receive it.
This may do something and it may go nowhere but I will continue to follow up with the SEC. If it gets bogged down. I'll send a note to our U.S. District Representatve to see if it can be helped.
I'm just doing what I think is right to try and get visibility into this company for my own investment purposes.
Other Topic -Not PLNI; DTL, your question is very broad and not easy to answer. Currently, public reporting companies are allowed to report earnings two ways. They may leave out extra-ordinary charges (Goowill write-offs, accellerated depreciation, one time write offs, etc., but, must now also report their financials under Generally Accepted Accounting Principals (GAAP) and explain the differences.
Under GAAP, however, there are also differences that are reported. For example, you can use two different kinds of depreciation, one for books and one for reporting. Accelerated depreciation reduces your income, straight line (in comparison) would increase your income) Both will get an unqualified audit statement and are very permissable. You can choose to capitalize an asset(increase profit) or expense it as "Research & Development" (decrease in profit).
Reserves are a huge item. They can (if you can justify your reasoning to an auditor which any good accountant should be able to to the extent needed for small manipulations) be a charge or a credit (decrease or increase) to your P&L and an increase or decrease in your balance sheet. A reserve for inventory shrinkage or obsolete inventory is a reduction in income and an off-set to your inventory balance. The idea is to take the reserves to the P&L as you use the inventory.
I guess the best way to answer you is that the P&L is not a fixed, one number thing. The Balance Sheet is also not a fixed thing.
The last thing I might mention is the possibility of companies held by the same ownership, but not part of the same corporation, can intership, loan & borrow money, and do all sorts of devious little things to change what is reported. They can pay interest for "Other Income" (profit increase) to one company and report "Income Expense" (profit decrease)in a different company.
I am not saying that anyone is doing ay of this. I am simply pointing out a few things that could be done by anyone if they so wished. If your caught doing bad things, there are consequences.
Also, I am trying to find out how long PLNI will have to publish audited statements if the are required to do so with the SEC.
This is a general answer to a general question about some ways profit might be reported and is not directed toward or an accusation of any wrong doing by any business whatsoever.
Spencer, if PLNI has assets worth $10 million or more and has 500 or more stockholders and has issued common stock for sale to the public, they are required to be an SEC registered company. That means they must then issue quarterly and annual audited statements and all close-party transactions will be public. No more guessing about what PLNI is doing or not doing.
That's why I'm filing a request to have the SEC find out for us all.
gopacker, wrong again.
They listed the assets at 7 mill without the Pro-Mold's new 1.5 million injection machine(plus transportation and put in place costs (wiring etc), & dies and 1.2 million for the patents. These are both costs they published (the agreement is public record and available to you). That's over 9.7 million without cost of inventorey or fixtures at either of those locations. They have increased production=(inventory materials, A/R, Cash)=assets. At least they have claimed that production is up and they have done more (sales) in the first quarter than in the previous year (which wouldn't take much).
Man, have a look. They are worth more than $10,000,000 and need to be registered.
If they show the SEC that they aren't, then that tells us more about their PPS value. If they are worth less than $10 million, then the stock value should be down around .0005 or less. See if you can do the math with 13.5 billion shares dilution or more if JT wishes. I guess, they are A/S & not all O/S. But, no one knows how many stock are out. We will when they are registered. Every time they increase A/S or do a related party transaction, or sell stock (8K) and their business will be our (stock owners) business (10K & 10Q).
If they are worth more than $10 million, then we will get the visibility that we need to make invesstment decisions. This will say a lot either way.
I am going to proceed with the SEC request and everyone will benefit one way or another.
From your posting, do you have any other interest in PLNI except as a stockholder? If you don't then you should be very happy for me to be doing this.
If your more than a stockholder, then I could understand your reluctance to have them asked by the SEC.
I hope you too will benefit from thisaction I am undertaking.
gopack, obviously you misread the post and the financial statements.
The assets are in the patents and machinery that were purchased with Pro-Mold & Semco and is now part of PLNI. They were not reflected in the numbers but are now there.
LEXINGTON, KY -- (MARKET WIRE) -- 04/25/2006 -- Plasticon International, Inc. (OTC: PLNI) is pleased to announce that the company has posted unaudited 2005 and 2004 financial statements and a full disclosure statement on www.pinksheets.com, with audited financial statements to follow.
Plasticon's financial statements do not include results of operations from the SEMCO Manufacturing and Pro Mold acquisitions and back orders from their exclusive distribution contract with the nation's largest distributor of building materials. Additionally, the financial statements do not reflect patent and mold valuations, which are footnoted in the financial statements. At present, an independent appraisal of the Company's patents and molds is in excess of $20,000,000.00. For more information regarding the independent appraisal, please see supporting documents attached to financial statements.
Obviously, you neglected to read the notes to the financials.
Secondly, the number of stockholders is what I'm asking to be verified by Pink Sheets. PLNI should have supplied that information to Pink Sheets.
Third, If you have been following PLNI's acquisitoins, your response makes absolutely no sense.
Fourth, AICPA & FASB regs cover all financial statements as well as GAP! Asset value for SEC filing is the purchased value of the assets or basis. Man, do a little research before you expound in brown.
Fifth, what I said is factual. The SEC rep suggested that I inform the enforcement division and they would look into why PLNI is not filing audited financials with them since, according to all of the information PLNI has released, they do qualify as an SEC filing Corporation.
Finally, a public company cannot legally issue any public release that is misleading and could influence an investor to buy their stock. Dude, that is called fraud.
I do like your reference to FASB though. You must have read something somewhere to give you all that insight. I worked with them as an accountant, CFO, auditor and business owner for over 30 years. The Financial Accounting Standards Board was initiated during my undergraduate training and during my CPA training, I memorized every release they let. I taught them as a member of the NAA. And, valuation was in one of the sections of my certification exam in the AICPA & APICS. I also wrote many long dissertations on pronouncements during my university graduate program.
You need to get more education before you issue a note like you did. It's too ludicrous to be funny and it could be misleading to other investors.
E-mail from SEC - additional info.
Thank you for speaking with me today regarding periodic reporting requirements. Here is the additional information I said I would send you regarding reporting requirements of individuals:
When a person or group of persons acquires beneficial ownership of more than 5% of a class of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934, they must file a Schedule 13D with the SEC. The term "beneficial owner" is defined under SEC rules. It includes any person who directly or indirectly shares voting power or investment power (the power to sell the security). For additional information, please see our "fast answer" at: http://www.sec.gov/answers/sched13.htm.
In addition, every officer, director, and beneficial owner of more than ten percent of a class of equity securities registered under Section 12 of the Securities Exchange Act of 1934 must file with the SEC a statement of ownership regarding such security. These reports are made on our Forms 3, 4, and 5. Additional information about these reports is available on our web site at: http://www.sec.gov/answers/form345.htm. Since June 30, 2003, electronic filing of these forms is mandatory. Electronic versions of these reports are available on our EDGAR database at: http://www.sec.gov/edgar/searchedgar/companysearch.html
I hope this information is helpful.
Sincerely,
Steven G. Johnston
Special Counsel
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549
I have also sent an e-mail to pink sheets asking for corroboration of their info no the 5000 shareholders at 12-7-05
Spoke with SEC. I just spoke with an SEC rep. who told me (in answer to an e-mail I sent a week ago) that any public company who has 500 shareholders and assets worth $10,000,000.00 (regardless of the liabilities against the assets) MUST become an SEC (audited) filing corporation. He said that, based on PLNI's own statements indicating (on pinksheets) that they had 5000 stockholders, that according to their most recent statement (published financials) that they have purchased patents and equipment appraised at over $20,000,000.00, that they should be required to be an SEC registered filing corporation.
Given this information that was published by PLNI, he suggested that I send an E-Mail to the enforcement division of the SEC and ask them to look into it.
I am going to send an e-mail inquiry to "enforcement@SEC.gov" as soon as I verify with pink sheets that the information about the number of stockholders was given to them by PLNI.
I asked about the timeframe they had to begin their filing but he didn't know. He said that the enforcement division would know
I will write more when I know more.
OT. OK Starboy. Thanks for your nice note about my post. I believe you are right about putting an OT in front. I shall do that henceforth in the event I answer another question.
Your note was pleasant and quite correct. I shall try to do better henceforth.
And I do mean that I like this board and everyone on it, including shorts. It was really fun watching the banter between him and various others during the past few weeks.
I do wish you would publish some better looking graphs though. These are not currently inspiring. LOL
Once again, the best to you in all you do, especially making money in the market.
Starboy, it was an answer to a question and I am a free subscriber and if I weren't, nobody would hear any of my answers. I am considering subscribing so my answers will all be private and those who wish any input from me can ask.
I suggest strongly that if you don't like my exposition that you put me on ignore or simply, don't read what I write.
Sorry you have a problem but it's your problem, not mine.
Also, please note a comparison with PLNI in the text.
I also noticed you indicated a "we know" in your note. Are you pretending to speak for everyone or do you have a mouse in your pocket?
I wish you the best of everything.
Zion, I just looked at IIP. According to what I saw, the company looks basically like another growing company that's a bit farther(on the edge)into being a viable corporation. With their cost cutting in SG&A and a promise of .05 to .06 EPS in the first quarter (their first profitable quarter, the company looks pretty good. I didn't do any work on ratio analysis but they are in a market that is cutting edge. They appear to have a good customer base and some large accounts already established.
Since they are releasing their next financials in 4 days, this is a critical time for you as a small investor. The PPS has already climbed (in anticipation of profit and the coverage news)and if the financials aren't as expected, the stock might drop significantly. Even if it does come in at .058, there might be a small surge and then a drawback from profit taking. It might also take off and go up some more. at .058 and a PPS of 1.37, the PE ration is a little over 23.6. That's not bad but I would prefer 16 or less. If the PPS goes up much, your P/E ratio gets too large for a small company. I think you have time to buy in after the 5th of May but be cautious. The company itself, from what little I've seen, looks pretty good. BUT, I qualify my opinion because it is only based on their press releases and one financial statement. If you love risk and want to take a chance on the PPS going up a lot, buy a few shares. If it goes up, don't hold it trying to make a bundle. Make a profit and get out before the rest of the profit takers drive the PPS back down. If not, you have to hold it longer, hoping for a new breakthout.
I have done no DD about the company so you need to see what is really going on. Do your own due diligence (investigate the heck out of the company) before you buy.
This company looks a lot like PXLW who went up but, more recently, is having growing and competition pains and their stock has dropped a lot in the past year. They seem to be having a problem generatng a profit after their initial surge.
Just look at IIP and make your own decision.
On what I see (just to me) of the company, it seems like a better place to have a few bucks - long, than PLNI.
Anyway, do your research (4 days is a short time) and make your own decision. Good luck in whatever way you go.
This is all just my thoughts and opinions and should not be used as a decision to buy or sell any stock or do business of any kind with any company for any reason whatsoever.
Zion, rrm has the best idea. I just post to try to get my ideas out so others can also get theirs out. rrm said it very well. Do your own Due Diligence. Look up the company. See what they do and ask them questions. There has been a lot posted here and a number of good sources to get good information.
It's a darn small company but they seem to be heading in the right direction if their word is good, which so far has seemed to be less than accurate on occasion.
I hope I am really wrong about the short term prospects for this company. I hope that the PPS takes off and everyone gets big bucks. I personally don't see it happening in the short term. No money in the corporation yet. These are the very first financials I have ever seen that had no cash and a negative Owners Equity besides.
I said before that either the company will grow or JT will sell to a larger company. Either way, it should be good for investors.
I am not a believer in striking gold in the pinkies. It has been done but you usually have to have a leading edge company and not just another start-up manufacturing company with billions of shares floating.
Right now, there are medical companies that will hit, fuel cells that are hot, and other corporations that could shoot off like a rocket. New technologies are happening and some of them are going from .0001 to a buck or more. Once again, in a specialized market, they have hit a niche. The gas prices could cause a new energy start-up company to jump enough to make good bucks if you don't hold too long.
Also, as I have said before, I have made money with PLNI. I buy when I think its low enough and I sell when I either double my money or the MACD and Stochastic crosses and heads for the basement. I'm also not greedy. My biggest hit on PLNI was buying in at .0074 and selling just less than .018. My last sell was at .0056 when I took a hit of about $1.2K. The best shot I had after it dropped so fast was at .007 and I held. I wasn't watching UBSS & NITE manipulating the PPS. After that, I watched my charts and the MM's. I've made about $12K on PLNI stock up to now.
I had already read a lot about PLNI (Wicklund if you want to look up much about them in Wyoming) or Turek in Florida bankruptcy. Also, Kentucky. You can get other companies that Turek owns from other postings. To me, they are of little importance if they are a reporting company (except for related party transactions, the balance sheet, and notes that would tell about other transactions between PLNI & them) and of no importance if they are a pink sheet company. Just more conjecture.
Of course, Pro-Mold and Semco are part of the new package so you can try to get what you can but they aren't too wordy.
As I told rrm before, I look for the bad things in a company. The company will loudly proclaim their benefits.
rrm is wrong about nobody here having any knowledge about the numbers. It was apparent from his questions to a previous posting that he doesn't see what I see in a set of financials. Right now, without anything else except what was published, and, the PPS heading south, PLNI can use some boosters who seem to feel a need to justify their position. I am not trying to justify anything. I just post what I think and rrm is entitled to do the same.
I love this board and have come to feel close to the folks who post here. I have been chastised thoroughly and told that I knew nothing and guys like me would end up broke and lose by not buying and holding PLNI. To all of my detractors, I say thank you and it is really fun reading their posts. Fortunately, I haven’t listened to them but I have enjoyed them.
So, good luck and I will repeat one more piece of advice I have given before. Don’t put you eggs in one basket. Losing your eggs is bad enough but you might lose your basket too! LOL!
This is all conjecture and just my opinion. I own no PLNI stock at this time and am waiting to see how the company PPS goes. None of the statements made here by me are intended to influence anyone who reads my opinion now or in the future in their decision to buy, sell or trade any stock or deal with any company for any reason.
fynley, I thought about the same thing; that maybe JT was putting out this set of financials, thinking that the next financials would show a major improvement and for those who really don't know the ins and outs of reading them, it might shove the PPS up. And no, I don't think for one second that James Turek is a dumb person. I think he is quite brilliant and, given his background, is neither new to business nor the accounting game. Based on some of the expenses reported in the bankruptcy, his life style seems to be right up close to the hog's ear.
I think that too much credence is given to a very small company and too many people (maybe 8-10 billion shares worth) are looking for PLNI to be a gold mine. It's a small corporation that is struggling to get out of the gate. As published, JT bought the patents, the DOT approvals that were with them, the right to manufacture and own the business established by GP for $1.2 Million with an agreement with GP to distribute. It seems to me to be a good purchase. Semco also seems to be a good acquisiton, especially if they can get the bonding characteristics of the polymer to get the plastic re-bar to hold in concrete. Pro-Mold is a natural if you are building a business and you want to vertically integrate (do it all yourself). You make a larger profit. First on the manufacturing (Pro-Mold) then as the jobber (PLNI) and then as the distributer (TBLU) et al.
I also think that there might be some share selling going on but I can't say for sure. I see no other reason for the PPS to drop as it has except that maybe there is a huge investor that's jumping out; unlikely, but not impossible. Another reason could be that other readers of the financials might have seen them in the same light that I did but I don't know what others think either. I do see the MM's working on a bigger spread since the financials. Does that say anything about where the PPS seems to be heading?
Anyway, I changed some of my thinking because it shouldn't make sense to issue poor financials to drive the PPS down further while you're trying to sell more stock. This is somewhat confusing to me. Perhaps an error in judgement? The psychology of the pink sheet investor clashing with professional MM's? I honestly don't know.
Also, the increase in A/S is a very big issue. Given the asset of the company, currently owned by creditors, even with the other two subsidiaries (Pro-Mold & Semco) valued at $20 million + or -, the share value (to me) is as I have maintained before, about .001 to .002 (divide $20 million by 13.5 billion)assuming that neither of those companies have large debt on their books. Then, the company might be worth less.
More on your question:
Usually, in a consolidated statement, intercompany transactions are "eliminated" on an eliminations worksheet by an internal accountant (monthly) and checked by an auditor for correctness (when audited statements are issued). However, you will need to also study TBLU's financials to determine if there is a shift in the inventory from PLNI to TBLU, thus recording sales at PLNI, increasing profit and Accounts Receivable while increasing inventory and Accounts Payable (or L.T.Notes Payable-net of the current portion [12 months], if they want it out of working capital) at the other corporation.
I'm not saying this is happening or will happen. If I wanted to show a large sales and profit increase, I might do this with unaudited statements. It's legit unless it can be shown that it was done to influence the stock price or misrepresent the financial position of the company to investors. It's undoubtedly going to happen to some extent because TBLU is a distributor for PLNI and must carry inventory and PLNI needs to fill the pipelines of it's distributors (establish a working inventory) If audited, an auditor should catch any irregularities, if there are any, in their tests of the A/R &/or Sales because it would show TBLU as a huge purchaser and they would be subject to closer scrutiny than the smaller % of sales companies (the top 10 sales companies are usually reviewed and confirmations are sent for their A/R at a specific date-usually the fiscal year end).
Anyway, if JT and Big Apple are correct, there could be a profit on the next (consolidated) financials. Then, the questions will be: how much has the cash(any would be an improvement here), near cash, and working capital improved; how much debt has been reduced; how much has the deficit in the owner's equity account been improved, as well as, how much stock is in the float, and how many total shares are outstanding (if increased, were they sold to increase fixed assets [good] or to improve the balance sheet [not as good].? The balance sheet improvements should come from profits.
Is PLNI going to increase the A/S & O/S to 20 Billion? More? I believe that it's entirely up to JT.
I would like to see a debt to equity improvement (without dilution), a PE improvement (even if still negative), Current Ratio eventually growing toward 2, and, of course, profit as a percentage of Sales & gross margin. I won't even bother with some of the other items I look at (LT debt/equity, Mfg. Efficiency , production per employee, SG&A expense as a % of sales, inventory turns, COGS % of Gross Sales, Gross Margin % of Sales, etc., etc.,etc.).
I must admit that I was too disappointed in these first statements to do much in-depth analysis. I will do much more when I have a comparison between first 10K on the consolidated company VS the second 10K. I will also watch the 8K releases very closely if PLNI becomes a reporting company. Then changes in stock and related party transactions are easy to see.
This is all conjecture (except what has been published and is on public record which has been here-in stated to the best of my recollection) and just my opinion. I own no PLNI stock at this time and am waiting to see how the company PPS goes. None of the statements made here by me are intended to influence anyone who reads my opinion now or in the future in their decision to buy, sell or trade any stock or deal with any company for any reason.
Very possible to see the PPS in the .003x's Monday. Right now, unless we get a great PR, I see nothing for the MM's to work with except continuing to work on the widest spread they can.
UBSS & NITE are now bucking ETRD who has been selling like an agent for the past few days (best efforts dilution). They (ETRD) aren't buying at a .0006+ spread but they've been selling-a lot!
Just my opinion.
rrm, when you look at the assets, you need to look at the liability section. The company owns none of these assets. They are owned by creditors and related parties. There is a 1.5 million dollar deficit in stockholders equity. That alone says to me he will be selling more stock.
I am not trying to give lessons on how to look at financials. I am just saying that the company is, at this point, according to the financials, not one I feel good about.
I will just hang out and watch. If I see something good, I will buy in again. Until then, I will just watch.
Just my opinion.
rrm, you are probably right except Wicklund was a shell corporation.
How the money came to be, I really don't see anything that leads me to believe that the other corporations had anything to do with it. I see no outstanding loans from them and each corporation is a separate entity. Notes to the financials must list related party transactions. You intermingle funds and you lose your corporate veil.
Anyway, I just won't buy in yet. I think others see what I see in PLNI. The proof is in the PPS. PLNI is dropping and the trend is continuing even with the financials. It just hit .0045.
I also think, as I said, that the sale of stock for expansion isn't bad. It also seems that JT is trying to take the company in a better direction. I don't feel that secrecy is a very good way to do it and I also feel that we have had less than the complete truth for the last couple years.
Anyway, I just stated what my opinion was and you are certainly welcome to have yours as well. That's what makes life, and this board, very interesting for me.
One more thing; I never look for a possible, maybe, could be, perhaps, if this or that happens to invest in a corporation. I look for all of the bad things that are either apparent or could happen. They will boast about the good things.
Thanks for your ideas and good luck with your investing.
yafu, look at the company. It was a shell, not a corporation. It had no money and no assets.
Look at the acquisitoins. They were purchased with stock snd debt.
Look at JT's bankruptcy. He has listed stock as collateral and his homes, which were already mortgaged, for more cash to get by, plus stock to guarantee his personal guarantees..
There has never been an operating corporation except TBLU. How the money got from one corporations stock sale to another could happen through wages paid to JT from stock sales. 6 billion shares over two years, plus TBLU stock and whatever other stock that was sold before the other shells were taken into PLNI.
I guess that what I believe is that the sale of stock has been the sole source of capital for JT.
My opinion.
fynley, I use TDAmeritrade and I've been with them since they were Datek. You have access to all of your trades at any time by looking at your history. You probably have the same thing there.
TD Waterhouse just merged with Ameritrade and lowered their unlimited trade rate back to $9.99. That's good for limit and all other stock trades. Options are also reasonable. They also have no minimum and no service charges.
There may be better but I have been very satisfied here for a number of years.
I also like their streamer, charts and resources. Their charts aren't as flexible as they were but adequate for my purposes. As long as I can watch the MACD and Stochastic, I can verify my thinking on when to buy and when to sell. I rely on my brain more than the charts. Maybe that's why I do so poorly in the market. LOL!
Anyway, UBSS & NITE seem to be trying to hold the PPS up on PLNI with almost no volume. This looks very suspicious to me again. That's what they did before at around .0055.
Good luck and best of everything.
Check the volume - 2 hours in, a low of .0045 and less than 3 million sold. Might have been better without the (crummy) financials??
I bet Green Bear and Willy Wonka still pump the stock. They never quit, even when they (should) know how pinks work. Piggy Back Qualified’s are just more overt. It's easier to see the manipulation than it is when the stock is just plain being shorted or diluted.
I still think that in the long run, this stock might be pretty good. Not huge because the company will never be huge but the stock could rise somewhat with decent financials-as the company really grows. I assume that JT will either grow the company or sell it. Either way, it should eventually be better.
Right now, the short term looks pretty glum to me.
Once again, this is just my opinion.
So, to all the folks I have had the privilege to banter with, good luck and I'll be watching the board and PLNI for future events.
Fynley, maybe, when they fill their short position, they'll (the MM's) run it up to about .007 in order to sell another short position. I hope so. Then, a lot of folks can jump out and watch it in order to get in as a short term profit taker or day trader. I would liked to have purchased a million at .004 and sold at .005 but I never saw the release coming and I didn't want to get back in at .005.
As I've said all along, pinkies are for small profits that add up to a fair amount and I never buy a stock with the idea of getting rich. Just want a few bucks from each one and I watch for quite awhile before I buy in.
As a wise man once said, "If you want to double your money, fold it in half and stick it in your pocket".
I made most of what money I have from buying and selling bank forclosures (real estate). My cash money is safely invested in CD's which are currently drawing an effective interest rate of 5.15%. Not huge but no chance of a loss. It's better than I usually do in stocks - overall.
Just my opinion.
Good luck.
finley, you are making too much sense to be in pink sheets. LOL!
Great thoughts big_investor. However, on the PPS currently. If you had shorted a ton of(millions)shares at somewhere about .0055 and you wanted to fill your short position, you would run the PPS down to fill and make money. I really think they are in that position. Otherwise, they would let the PPS run up, sell a ton short and then run the price back down to fill.
The main reason I still feel this way is because at a volume of over 117 million shares yesterday, the PPS was held down, not to buy shares to sell later, but to fill their previous short positions.
BUT, your ideas are just as valid as mine. I'm not saying you're wrong but it looks like they were shorting a long time at .0055 plus.
Anyway, nice post and thanks for the ideas.
Great luck and good planning.
I'm watching the PPS dropping and the news on the financials was less than glorious.
Just my opinions.
Nice post 1776. I think you have it pretty well in hand. Good thoughts and I probably fumble fingered the 50 employess. Still, very small business. I was in a very small corporation that did about $50 million gross sales at a 16% GP and we had almost 500 employees. We were small.
GL to you
To all questions (These are just my thoughts as I read the financials) - everyone needs to read the notes to the financials carefully as well as the debt to equity and share structures.
look at the ability of the company to finance it's operations. The 106 million shares of preferred stock is to be issued in 06 to JT.
30 total employees (this is no Microsoft).
Right about Semco and Promold not being in the statements. The acquisitions were not expensive. See the debt in PLNI. The new mold was, for me, a possible clue to the condition of the existing company. It takes one person to run an extrusion or vacuum mold. The dies are the biggest cost (after the initial outlay for the machine.
No cash on balance sheet. Where does operating capital come from? When you buy a corporation, you don't buy their cash. That would be stupid.
Count the shares that are currently out. They are just under 6 Billion. There has been a dilution.
I don't care if any company buys shares back if they are going to issue 10 times what they bought. I buy 200k and issue 2 billion. Where's the buyback. It's a joke.
I still have two big questions that I need to answer to buy and hold PLNI for myself.
1. Where is the operating capital coming from? Expansion is VERY expensive!
2. Obvious dilution currently happening. Where will the money come for a buyback? There isn't enough to operate without stock sales.
One additional thought about the PPS - why isn't it skyrocketing? If informed readers would find this attractive (not just those who read Red Baron or Willy Wizard), this stock should have shot to over a penny immediately. UBSS and NITE aren't letting that happen. They would have to chance shorting at a high price. I believe they have already dumped their buys and had a very small short position at .0042 where they held the PPS.
Just one other note - PLNI said it was profitable in 2005. This company has been a shell corporation for many years. It had no revenue in 05 and has a very large accumulated loss. It is also carrying over $400K in Goodwill on the balance sheet. That is the amount in excess of value received for something they purchased. That should be written off. That will be a one time charge against profit, if any, in the year to come.
I'm personally going to remain cautious.
I think that the PPS will go up until the volume settles and then go down again.
No one could consider this a breakout, YET. It could still happen.
This is only my thoughts and my personal opinion on PLNI at this time. Perhaps, and I hope so, time will change my mind. Maybe, the next (consolidated) financials will be better and PLNI can show a profit. I sincerely hope so.
One suggestion, don't try to justify either the companies actions or your own stock positions. Look at all public companies with the idea that you are the last in line for any consideration. The company and close owners will think of themselves first, not you.
All my opinion and should not be used to buy or sell anything. These thoughts are my interpretation of what I see and what I've heard in the past from JT and are not the only way to interpret these financials.
I hope everyone makes bucks from PLNI! Good luck to all. I will be back in when I see what it is worth to me.