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This. No rush on this one.
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The nice thing is that the market cap is low, based on the share structure, giving this room to run once the stop sign comes off (putting it on the radar of other traders).
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Agreed. December should be a nice month.
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I have a feeling this thing can run to 0.25 once more PRs hit the wire.
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This is huge news. TradeStation is legit.
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The wall has been eaten.
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Good find. Also on the website.
https://quantgatesystems.com/press.html
https://quantgatesystems.com/team.html
Impressive resume on CEO (QuantGate already added to 'Experience' section)
https://www.linkedin.com/in/leocardoso
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It does seem that way. Excited about how active they have been on the new website recently.
Website does look great. Seems to be associated with BridgeRock Technologies as well.
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Too real.
This ticker will be a harsh reality for many.
The best thing anyone could have done was call IR. You can sniff the snake oil right through the phone.
You know what that means? Either they're waiting for the other 42% to sign on, or that $30mil in revs becomes $17.4mil in a hurry. Considering we've seen the 58% number before (see below, per 10Q filed 2018-11-19), I'm not too confident in the former. And given the misguided 19% profit margin..uh oh.
ROFL i know right..one of the top posts of the weekend for sure.
Total stockholder equity = $38.5 million
$$$
Showing some strength
Try >500 million shares at current share prices. Queue more dilution.
I wonder what will happen to the A/S.
Good day today, excited for next week
:D
Yes, I saw that, but they didn't issue a PR about Crown Bridge.
What's more interesting to me in the 10Q is the math and reasoning for issuing the shares "As part of settlement...".
$200,000 / 31,133,333 shares = 0.006 conversion rate, not 0.15
This is very different than what is stated in the PR.
How about you take out a calculator and push some buttons to figure out the conversion rate for Crown Bridge? Hint: it's lower than the lowest PPS that VYST hit.
The bigger issue here is it "behooved" them to reduce the O/S, but they did the complete opposite, most likely knowing the whole time that the O/S increase would happen.
Again, you're arguing a completely different point.
And this is gross speculation.
I'm not disputing what their salaries should be. Only pointing out how misleading it is for GR to say "so he does not benefit unless all shareholders do".
LUL. Why is GR even acknowledging iHub chatter? As an aside, Nathaniel Hughes passed away in 2014. Why mention something they tried to do 5+ years ago?
More importantly, the last paragraph is misleading. They do not get rewarded the same as all shareholders. Each one of their common shares, however, is worth the same as a shareholders..just as it is with stock in another company. VYST can do poorly, and the CEO (and Jamie and GR) arguably can make more $$. Straight from the 10K -- the Rotmans are compensated with more shares the lower the PPS goes. Unlike a fixed conversion rate, the market-price based conversion rates are what the SEC acknowledges as "floorless". So no, they still benefit even if shareholders do not.
They are..in the form of commissions LOL
It's funny how many turn a blind eye to this very fact.
And, hey, maybe long-term (1-2+ years, which I'm assuming most won't still be here), VYST's financials will greatly improve and sales will increase. These technologies are the "hope and dream", per my conversations with GR. But all this moon-boy talk about organic growth to the Naz (with no R/S) by this fall/winter seems extremely far-fetched and misguiding. That's the issue going on right now. Oh, and the disproportionate dilution will need to stop at some point.
Very interested in seeing VYST's Q1 2019 financials.
We know that it's 30mil+ in revs. The profit margin is TBD, but GR said he never said 19% profit margin. So you're right, we don't know that number for sure.
Yup. But that's once the consolidation is formally announced. Once the details of the consolidation are released, the PPS will most likely decline, as it's already been confirmed per GR that the deal will be half stock. And this is all assuming that 35mil in revs at 10% profit margin is correct. And also ignoring the underwhelming balance sheet of VYST that will be combined with and somewhat negatively offset Rotmans financials.
A deal with a big name would be ideal to propel the PPS. Or a share buyback will actually need to happen to reduce the damning O/S increase announced in the 10K. But what's the risk/reward on those?
A change to the incentive-lacking, bloated compensation structure of management would be a good start.
They do. So does everyone holding shares. At least we don't disagree on this.
What? That the compensation structure is set to benefit ownership more if the share price declines?
What's worrisome to me is the lack of incentive for the Rotmans to do right to their shareholders.
See below excerpt from the 10K, Note 10 - RELATED PARTY TRANSACTIONS. Based on the per monthly payment plans, the Rotmans will receive more shares the lower the price per share goes. It's a win-win. Share price decreases, Rotmans get more shares. Share price then increases (say based on a PR), Rotmans have significantly more $$, even if the share price does not necessarily recover to previous highs.
An example to illustrate my point for the "long-term" shareholder.
- Rotmans have 1,000,000 shares for simplicity sake.
- Shareholder buys 1,000,000 shares at 0.1 = $100,000 invested.
- Share price increases to 0.15. Rotmans now have $150,000, and shareholder also has $150,000.
- 10K is released which outlines per month payment plan.
- Due to dilution, share price drops to an average of 0.05 for 6 months.
- Rotmans receive 7,203,960 more shares over that 6 month time frame, based on the per monthly payments in the 10K (see below).
- Rotmans now have 8,203,960 shares in total.
- Shareholder averaged down and bought another 1,000,000 shares at an average of 0.05. Shareholder now has 2,000,000 shares in total. Invested $150,000.
- VYST releases PR and share price increases to 0.1.
- Rotmans 8,203,960 shares are now worth $820,396 after only 6 months.
- Shareholder's 2,000,000 shares are now worth $200,000. The investor is "long-term" as mentioned above, and doesn't sell any shares.
- However, after the price spike, the price begins to decline after poor financials, never fully recovering to its previous highs.
- Share price sinks back down to 0.05. Shareholder's 2,000,000 shares are now worth $100,000. Overall, down $50,000.
- During this price decline, Rotmans accumulate even more shares and wealth.
- Rinse, repeat.
Keep in mind that the above calculations are conservative as they don't include any of the bonuses (quarterly, etc.) mentioned below in the 10K, for simplicity sake.
**Now, lets imagine that the share price never declined from 0.15 to 0.05 (a 3x decrease) for 6 months, and instead increased to an average of 0.45 (or a 3x increase) for 6 months. The shareholder is happy that his 1,000,000 shares are now worth $450,000, so he sells. On the other hand, the Rotmans acquire only 800,430 additional shares at the 0.45 conversion rate over 6 months, and thus have a total of 1,800,430 shares, which is worth $810,193. This is less than the $820,396 that they would have if the share price declined to 0.05 for 6 months, and subsequently increased to 0.1.**
The above example illustrates that the share price never needs to reach new highs or maintain an upward trend for the Rotmans to profit greatly. In fact, one can argue the opposite. And this example is only over a 6 month time frame and uses share prices that we are familiar with (excluding the increase to 0.45c). Imagine using more extreme share prices over a 1-2 year time frame in the above calculations. So, again, where is the incentive to do right to their shareholders?
Have you read the 10K?
I have. How about you be more specific?
LUL. In fact, the O/S is currently the most important thing going on with VYST. It's also one of the few verifiable facts. No frills, no speculation.
I'd rather not speculate on a day for fins to drop. That just creates unnecessary expectation, which can lead to disappointment. What I do like is the volume spike yesterday and today's churning. Especially considering yesterday's PR.
Monday's just another name for the next trading day. ;)