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Can drive a truck through the bid/ask spread
Once traders get some some clue what's present in DROP, we'll have a big run. I'm surprised it hasn't already happened in anticipation of the investor event on Wednesday, but the broader markets are correcting somewhat.
Delke needs to do a better job tying Kustomeroo to DROP
I assume that process kicks into high gear starting with the investor event on Wednesday.
DROP has product overlap with Five9
Confirmed by the company on Twitter this morning. Hope to find out more on Wednesday, but at the current market cap of ~$2mm, it's a steal.
Zoom buys Five9 for $14.7bn
Five9 is a cloud-based call center technology company. Certainly seems like there could be some overlap with Kustomeroo, but I guess we'll have to wait to learn more on Wednesday.
Has GS confirmed ownership of the other two shells that most are playing?
As far as I can tell, he's only confirmed a preferred position in this one.
Extraordinarily cheap stock
I bought some more on Friday and am looking forward to the investor event this week. The company's products seem very interesting and if they are even halfway decent, merit a valuation at least an order of magnitude higher (10x return at least). Great share structure and the CEO seems to understand how the markets work (take care of public shareholders and all stakeholders benefit).
I'm looking forward to hearing about partnerships as those will be critical for driving growth.
Nothing quick here
Just keep your fingers crossed!
That you trying to pick up shares at $0.141 Bpeter?
GL. Keep your fingers crossed!
Perhaps some money rotating out of S-RNW into GOFF?
Would make sense given the valuation disparity and GS' preferred ownership position here.
Valuation
Keep in mind that Coinbase, the most visible public comp, was trading at $28.83 in the private markets as recently as Q3 2020. That equated to a private market valuation of ~$6bn on a fully diluted basis. Presently, Coinbase trades at close to a $60bn valuation on a fully-diluted basis. That's a 10x move in less than a year (and the current price is well off the 52wk high).
I raise this point as the $400mm valuation reported by Belfrics in 2019 is very much stale given crypto markets, particularly BTC and ETH, are obviously significantly higher than 2019 and trading volumes, particularly in Q1, have exploded.
Coinbase also operates in more competitive geographic markets than Belfrics. That works to the latter's advantage.
For me, it boils down to the pro forma share structure.
Very cheap relative to closest public comp N$AV
N$AV currently trades at roughly a $150mm market cap. It's primary business appears to be a yet-to-operate decentralized crypto exchange. It's share structure has roughly 6 Billion shares outstanding is close to maxed out.
UAMM, by contrast, trades at a $7mm market cap with a fraction of the shares outstanding. We don't much about their crypto exchange investment, but we do know that an NFT marketplace is also in the works. In my view, the valuation disparity is much too wide.
At $0.50, UAMM would have the same market cap as N$AV.
Surprisingly quiet on this board
Given the small OS (5.9mm) and float (~4mm), I would expect more buzz on this stock. Glad I got in relatively early.
Some are suggesting there's already a reverse merger candidate with ~$35mm in revenue. If true, this is a multi-dollar stock.
Anyone have the last share count details
I don't see the information on OTC markets. Thanks in advance.
I like the fact they post their assumptions behind projects
That level of transparency engenders confidence in the management team and its approach.
I'm still holding a big position
From my perspective, we're in a holding pattern until the platform and kiosk release. I believe those will occur this quarter and provide a big boost to sentiment and the stock price. This stock is fairly liquid, certainly relative to most OTC, so it's probably been used as a source of funds to trade other stocks. Just part of the game.
One of the many things I like about Corbett is that he doesn't promote excessively. His updates have almost always been meaningful. I think patience will be rewarded, but it is frustrating at times.
Given the relative valuation to Humb-l and other payment and digital asset stocks, I think this is at least a 10-20x return from here. In the interim, shareholders can take solace knowing that Corbett is a trustworthy CEO that should be highly motivated by his comp package with warrants that strike at $0.24. Moreover, there are institutional investors with cost bases that are at least $0.15 in most cases. That is rare for the OTC (other than the vultures holding toxic converts, which fortunately isn't the case here). The institutions certainly view this as a multi-bagger (and likely a multi-dollar stock over time).
Great song
I think Sunday Bloody Sunday might be appropriate given what's transpired since the filing in February (not to make light of what inspired that song).
You understand the situation
I would say that there were much better ways to accomplish a similar objective (ie. lower the ownership % of the shell shareholders). RS' silence on the issue leads me to believe there is no desire on his part to appease CLHI shareholders.
Lots of excuses, very little action. It will be interesting to see how this stock trades after the R/S...when/if that happens.
Happy 4th of July to you too.
Fair enough
I missed the last sentence as I was on mobile.
Regardless,it doesn't seem like RS has opened his eyes.
You might want to take a look again at how the reverse split is structured
It's designed to protect the private shareholders as they are getting post-split shares. I'm only stating a fact, not opinion.
There's a reason the stock is trading at the current level. We'll see what Stephenson has in store after the corporate actions take place.
Don't worry
RS will protect his private shareholders. Rest assured of that.
That would have been the smart thing to do
It's unfortunate that RS got bad advice and seems determined to act on it.
TDS is fairly opaque from a corporate structure perspective
We only know they have a few offices. They never updated CLHI shareholders on the acquisitions they alluded to last year. Perhaps they're part of the "corporate actions" that remain to be approved. I really have no idea.
Good question
I was going to ask PL that question too, but you beat me to it. It's a nice smokescreen for management to hide behind, but the value destruction is their fault.
What I find interesting
Is that Lazar ceded custodianship to GS. I don't know the history, but to me it seems that he did this because GS is further along in identifying a merger partner. I believe GS' decision to convert the debt owed to him into preferred further affirms this view.
If there are additional thoughts, whether confirmatory or disputing this view, please let me know.
I find the valuation disconnect versus $RNW puzzling, but great for those ready to capitalize.
I'd say...
Given the R/S hasn't been removed, we've ended up in a good place. It could have been worse, but the stock price reaction reaffirmed the view that the R/S has been imputed in the price. The upside from here? That depends on our CEO telling a good story.
Was it really a disaster?
Gave a chance for suffering longs (due mostly to management ineptitude) to get out and we retraced to where we started. Presumably it's a better shareholder base (full of long term HODLers) and IF/WHEN good news arrives, the stock will reach a higher peak.
I think it was a win/win for all concerned.
Thanks
Followed GS for a while and think this one has the best opportunity for appreciation, particularly given the valuation discount and other factors (that I and others have mentioned). I hope his target turns out to be more shareholder friendly than the one you alluded to, but that one was still quite profitable. I'm really intrigued that GS kept a preferred position in this stock. That's a great leading indicator in my view.
Been accumulating as well
The risk reward is highly favorable particularly given the valuation discount (and better share structure) vs GV$I and $RNW. I also like the fact that Sharp took preferred as compensation. In my view, he sees a lot of upside here and wanted skin in the game.
Trading yesterday was interesting. Profit taking took it down a bit (to be expected) and then there were some big orders at the end of the day. I thought the finish was great to see in terms of setting up for next week.
Let's hope GS finds a great target.
Presumably when the "official" merger 8-k is released
CLHI shareholders will get additional information about the TDS private placement, but with this company, who knows. Transparency, at least when it comes to the merger process, has been poor IMO. I know the public defenders will disagree with my statement, but I stand by it.
At the very least, we'll see capital contributed in TDS' shareholder equity section. All of the filings, to this point, have just pertained to the shell with nothing disclosed concerning TDS' operations.
Tough end of day bid whack huh Pro?
Stephenson has the power to put an end to the shenanigans.
Comparison to consider
This stock reminds me of GNU-S. That stock is also in the content creation business albeit with a different target market (kids). GNU-S had a similar share structure prior to its run last year (to over $2bn market cap at one point) and still maintains a market cap over $600mm.
I believe with BSEG's favorable share structure, there is potential for a significant re-rating of the shares to $1+. Many catalysts ahead and very little downside given no discernible convertible debt (as of last filing).
I'd say the market has basically walked away already
The volume is pathetic at this point and there is very little enthusiasm for the company. That's not necessarily bad. Expectations are incredibly low at this point, so there is room for them to surprise to the upside. When does that happen? Keep your fingers crossed:)
It's a start
Not exactly what I envisioned in terms of an esport acquisition, but it's a start. The e-fitness market is certainly a big one. Current market cap is absurdly low, but I guess we'll have to learn more after the deal closes.
Chain of events
TDS didn't officially have control until after the shareholder vote in December 2020. The capital raise I'm referring to presumably took place in the summer of 2020 BEFORE the merger was official. I say presumably as TDS hasn't released an official PR (to the best of my knowledge), but was advertising an offering on its website to accredited investors up until August 2020. The offering section of their website was taken down after that. We also know from the one investor meeting they did with the guy from Twitter that they had to increase the OS to issue shares to private placement investors. Unfortunately, the Twitter guy didn't explore the offering more to determine how much was raised and at what valuation.
As to what Ben knew and didn't know, I can't say.
Did you read Stephenson's last tweet?
Apparently there's enough institutional interest to hold a SEPARATE investor call once all of the "building blocks" are in place.
In fairness, we believe they completed a private placement last summer with institutional investors, presumably all in the UK.
IR team needs to do a much better job
Where are the UK Institutional buyers? This is one of the most puzzling stocks I can find.
And keeping your fingers crossed?
Because that's all we can do apparently since no one has any clue about the impact of the "corporate actions".
Those numbers are laughable
I'm pro Hemp for a variety of uses, but to think this company is being valued at over $1.5bn (current price based on pre-market) is absurd. The Hempacco guys botched the share structure and will have to do a reverse split to get the share count under control.
The opportunity to gain share vs. traditional cigarettes is big, but it's unclear to me that nicotine users will find hemp a suitable substitute. Perhaps if delta-8 avoids DEA scheduling, but that's uncertain at this point.
On my watch list, but this share structure is awful and I would wait if I were a prospective buyer. Might be some trading opportunities, but the value isn't there.
Absolutely correct
There is a lot more happening behind the scenes. I think they are holding back on some announcements until Q3.
Corbett's warrants strike at $0.24 and given they're cashless exercise, he should have a lot of motivation to get the stock price well above that level. It's not hard to envision the stock in the multiple dollar range given public comparable valuations, but the market needs more information.
It was basically the same presentation
As the one given at the HCW conference in late April. I would say, Corbett suggested that the plan is to uplist to Nasdaq by year end.
Based on my conversations with IR, they know the market cap ideally needs to be a lot higher, but are working on the paperwork and other items to effect the uplist anyways. Presumably they believe the market cap will increase significantly the rest of the year as developments regarding the following become apparent (not exhaustive list):
- app availability (ie. IPSIpay)
- kiosks
- more payroll customers (and possible conversions from beta to paying)
- stablecoin usage
I don't know what else is in store on the news front the rest of this quarter, but I think Q3 will see a lot of news flow.