says, "Companies that trade on the OTCBB will require Cash/Cheque. "
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CAPC added 2.5 million shares to the O/S when the stock was 2 bucks.
Those are still hitting the float. Still 1.5 million shares yet to hit as of the last count (May 2nd).
We'll get an update in June. I expect a few more have hit the float.
I'm watching Level 3. No manipulation confirmed.
Just a failure of CAPC to launch its Smart Mirror program, after 6 years of work. It will cost shareholders dearly. I'm expecting a return to 3 cents per share, as end of year tax loss selling kicks into high gear.
What a wild ride!
You're not uncomfortable that they don't have 3200 mirrors in their distribution warehouse?
Like they said they would?
You're not uncomfortable that they originally they said 100 out of 200 air-shipped mirrors were lost/broken, but today we learn it was actually 175 mirrors that were lost?
Manipulation has persisted from January 2021
and it worked amazingly well, delivering a 100x increase, from 3 cents to 3 dollars.
Unfortunately, the company has failed to deliver on their promises again and again.
Gravity pulls down manipulated, inflated stocks. That's still going on today.
The latest news out of the company is they're spending $20K on developing new media for marketing. The existing media *still* shows the old design that never was sold. They did photoshop out the LED lighting that isn't present on the new design.
They spent 2020, not selling the old design, but rather replacing it with the new design. They didn't think to develop new media for marketing campaigns back then, but here we are 2 years later, and they're finally getting around to it by going with a crowd-sourced video production.
The new media should be ready by early August. So, everyone get comfortable...it's going to be a long summer.
They've been working on the mirror since 2016
Just now they're getting serious about marketing it?
With a crowd-sourcing media company? I don't call that serious, and it's way late in the product cycle.
Why does the number of mirrors shipped keep changing? First it was 3200, then 2200, now it's 1100 (with 175 mirrors lost/damaged in air shipping).
Can't Stewart stick to one story please?
Near zero revenues, and mounting losses.
It's not a good path they're on. Smart Mirrors flopped. The sooner they accept that, the sooner they can get back on a path to being a going concern.
Right now, they're not.
There will be dilution to re-tool.
“We currently have an estimated $1.4 million of retail inventory available for customer shipments
At an average selling price of $999 per mirror, that's 1400 mirrors.
We know they shipped 2200 (200 by air, and 2000 by boat). We know 100 of the air shipped mirrors were broken in transit. That's 2100 mirrors left.
We know they sold 5 mirrors in December. We know they sold 20 mirrors in Jan, Feb, Mar. That's 25 mirrors sold.
Just how many mirrors broke on the boat ride over here? 600? 700?
I'm predicting a vigorous tax loss selling season later this year.
Failure to Launch. 6 years in the making, CAPC's biggest mistake yet.
Looks like 20 mirrors were sold in 1Q2022
$16K in mirror sales.
They borrowed another $600K as of May 1st.
They burned $654K in cash in the first quarter. The latest borrowing should get them 3 months of operating cash, if they tighten their belts a bit.
Manipulator's time ended April 2021
When CAPC sold 2.5 million shares at 60 cents. PIPE holders turned right around and sold half a million shares short, killing the manipulator's pump that started in January 2021.
It's been dumping ever since. Check the charts.
Odd no announcement/8K for 1Q2022 earnings and conference call.
Earnings should be out on Monday, May 16th. Conference call typically is the next day, May 17th.
My Android phone (Moto G Power) had a security Update this morning.
The buzz woke me up. The phone was updated to the April 2022 Security patch for Android 11.
The phone originally came with Android 10, but a free update to 11 came last year. This is a budget Android phone (I paid 50 bucks for it), so I was pleased with the ongoing O/S support.
Any of the half dozen people that bought the mirror, let me ask you this: Are you getting security updates to Android? Are you still on Android 10?
They're beta testing Android 13 right now; Android 12 has the most market share in the US. Android 10 is pretty old by now.
Are you getting Security Updates, Capstone Mirror buyers?
Manipulators are stuck in a Meme stock that's lost all its MoMo
because the company finally shipped their flagship product after 4+ years of development and it sank.
PIPE holders still have over 1.5 million 60 cent shares. That's gotta sting a bit!
Where will CAPC raise the $1 million they need to keep the lights on through the end of the year?
It is strange and is not a coincidence.
They had negative Gross Margin in 4Q2021
Booked $202,791 in Revenue. That Revenue cost $296,691 to produce.
-46.3% Gross Margin
When they were just selling LED lights, they typically made +20% to +25% Gross Margins.
It is strange and is not a coincidence.
Hey, U
Yeah, let's revisit that...
5 double boxed mirrors per pallet, 20 pallets per 40 foot container still gives 100 mirrors per $20,000 container.
The mirrors they double boxed (5 to a pallet) and sent to CES in Vegas by plane all arrived safely.
The 200 mirrors they packed more tightly for air travel (no double boxing?), well, half of those were broken in shipment. Guess the double boxed/5 to a pallet was important, no?
How many you figure got broken on the sea voyage? Half of 2000? Yikes!
But he sold it to a Municipal Solid waste/recycling co.
He didn't sell Jack to John. JBII never owned the recycling center. They leased it for 20 years, then paid to back out of that lease.
Sheesh! Bordynuik sure knew how to find the best rubes!
you don't know how to read live action.
LMAO. The stock regularly trades an insignificant dollar amount daily. You're better off reading what your dog dumped on the neighbor's yard.
CAPC is returning to a fundamental valuation, after 2021's MOMO-MEMEr pump fest. 100x from 0.03 to 3.00 on nothing but hot air, wash trading, and painting the close?
Yeah, that needs to unwind. And it is unwinding. From 3 bucks to 20 cents.
Russell 2000 stocks have an average P/S of 1.41.
49,643,031 shares outstanding * 0.20 / 686,000 = 14.47 P/S ratio.
Yeah, the price needs to come down another 90% to have an average P/S ratio.
But, but, but, the Mirror! They'll sell millions of them!
No they won't. It's a flop. A failure. A blackhole 4+ years in the making. May 16th you'll get the bad news. This was all predicted, if you just would have listened.
Actually, the 1Q2022 financial report isn't what you need to dread. It's the re-capitalization of CAPC that will really hurt your wallet (if you're still holding on to shares at this point).
I figure they need about $1 million in new money to keep the lights on through 12/31/2022.
In my opinion, they have nothing left to sell to PIPE investors, except the Preferred B-1. Those have a nice $1/share liquidation preference. Isn't that what you'd want, as an investor in CAPC, given their current struggles? You'll hear more about their financial situation on May16th, less than 3 weeks away.
Preferred B-1 have a conversion ratio of 66.66 to 1 for common shares. 1 million Preferred B-1 would convert to 66.66 million new common shares. Yeah, they'd have to raise the A/S to cover that at some point.
Maybe no investor will bite on the B-1 shares. Liquidation preference doesn't mean you get your money back, just that you're early in the line to get your money back. Can't get money from a broken mirror.
But, then what? More loans from Stewart&Co.? Maybe. Maybe Stewart has a hidden gold mine down there in Florida.
I'd be curious as to the "off the record" dialogue. :)
I'm sure they laugh about the rubes that got taken by Bordynuik. Imagine losing money to that grifter!
Zero volume means no one wants to pay the ask, or accept the bid for their shares.
Blocking? Hardly. Hit that ask.
How is that product selling?
They bet the company on the mirror. They sold 5 in December.
I figure maybe 10 more in 1Q.
This is a recipe for failure. They need to raise another $1-1.2 million to be able to last out the year. By their own words, they have enough money to get through 1H2022.
Need financing. I don't see them selling common shares to raise 1 million; not enough shares.
The 60 cent holders are still stuck with 1.5 million shares they couldn't dump - can't realistically go back to them for more, can they?
Only thing I think they can sell is the Preferred B-1. A million of those at $1/share, with $1 in liquidation preference might entice the financing. Let's see what they come up with. About 2 months to get it done.
Mirror prices raised another $100
Standard mirror: $899
Full length mirror: $1099
https://capstoneconnected.com/product/smart-mirror/
A “group” is defined in Rule 13d-5 as “two or more persons [that] agree to act together for the purpose of acquiring, holding, voting or disposing of equity securities of an issuer.” See, for example, the persons described above in Reporting Obligations of “Control Persons”. An agreement to act together does not need to be in writing and may be inferred by the SEC or a court from the concerted actions or common objective of the group members. .
Maybe you should contact your securities lawyer, if you have one.
Didn't someone claim to hold 10M shares themselves?
Bollox.
Also, the SEC takes a very dim view of Float Lock Down plays. There was a guy on iHub that created the theory. Ran his own Monkinars.
He was a scammer. He got locked down by the SEC.
https://www.sec.gov/litigation/complaints/2012/comp22420.pdf
Individual shareholders are free to buy and sell at their discretion.
Anyone who comes here claiming 75% of the float is locked and 'we're not selling' absent SEC filings detailing the group's holdings, well, you should view that with a jaundiced eye.
It doesn't pass the sniff test.
The man claiming they've locked down 75% of the float says it's a group.
Ask him if his group has filed. I don't see any 13d or 13g filings, do you?
Could be individual shareholders with 4.9% or less that add up to those numbers without filing
Nope. Check with the SEC. Any group that's acting in concert needs to file when their collective holdings exceed 5%.
If the large "Diamond Hand" shareholders hold just ~10mm shares
Any shareholder (or group of shareholders) that hold 10 million shares would have to file a 13d or 13g when they exceeded 5% of the OS. 10 million would be over 20%.
Absent the filings showing 5% holdings, it's all message board lies.
Biggest Asset here is the NOL carryforwards
Biggest Problem is how to deal with 35% tax rates.
That really doesn't answer the cost of shipping, though, and how many mirrors are on a 40 foot container.
It says nothing about gross margins on the mirror, just an unverifiable bit about how much Amazon is charging to take orders.
Cost of shipping the container from Thailand is a part of COGS, and affects gross margin.
Sales fees from Amazon are most likely part of SG&A.
Of course, we have to wait until mid-May to see what Gross Margins are, and how many mirrors they sold in 1Q.
Was that straight from Aimee?
Getting a discount on Amazon's selling fees really doesn't reduce the cost of shipping a container from Thailand.
That part of the cost is fixed (subject to prevailing shipper rates) and is paid by Capstone, not Amazon.
Amazon is not shipping or warehousing the mirrors at this point (maybe ever).
Did Aimee verify the number of mirrors on a pallet and in a 40 foot container?
Were the pictures posted by Capstone accurate: 5 mirrors/pallet?
Ships from
Capstone Industries, Inc.
Sold by
Capstone Industries, Inc.
Not sure why a category change should affect Amazon's cut of the sale.
In any event, Amazon never sees the mirror; they're just an order taker at this point.
Also, none of this has anything to do with the cost of getting a container from Thailand to the USA. That comes out of the gross margin, and is borne by Capstone alone.
I've just checked and they do make double wide pallets that could accommodate the Wardrobe mirror.
In the picture provided by the company showing mirrors boxed up for CES, the Wardrobe mirrors appear to be straddling two pallets. Of course, that would be a hassle to move about.
But they do make double (sorta) wide pallets, 72" by 48":
https://shop.snydernet.com/plastic-printing-converting-pallets/72-x-48-inch-blue-double-sided-heavy-duty-plastic-pallet-with-steel-and-wide-fork-holes-stratis-p7248ds72up-hdwf.asp
That would fit the double boxed Wardrobe mirror's length just fine.
You could get 10 of those in a 40 foot container. Stacked 5 high on each pallet, you could get 50 Wardrobe mirrors in a 40 foot container.
At $20,000 per container (pandemic pricing), that's $400 per mirror.
I suggest the company hold off on pushing the Wardrobe mirror until they set up their Mexico plant.
The stock is still grossly overpriced from a fundamental standpoint.
Eventually, stocks revert to classic valuations, irrespective of stock manipulation and promotion.
We've got about 18 weeks until we get some new revenue/loss data to digest.
FY2021 will be a dismal report, so it's the mid-May report we have to see.
Twenty standard sized pallets fit in a 40 foot container.
A simple google search should confirm.
CAPC still working on absorbing last year's dilution.
Only about 1/3 of the Littlebanc investor shares have hit the float so far.
Last year's swan dive to .411 was mainly driven by tax loss selling, though. Only a couple hundred thousand shares out of millions sold came from Littlebanc investors at the end of 2021. Most of their 700+K shares were used to cover the short hedges they entered in April and during the summer.
I think we'll have another tax loss event at the end of this year, going lower than .411.
I see CAPC selling more shares this year, as they'll need more capital to advance their plans (move to Mexico for manufacturing, for example).
CAPC really shot themselves in the foot creating a tech device glued to the back of a bulky, fragile mirror, and setting up manufacturing in Thailand, half a world away.
They did get screwed by the pandemic increasing shipping container costs by 10x, but what really kills them is how few mirrors they can get in a 40 footer. If we believe the pictures of the pallets shipped for CES, 5 double boxed standard mirrors per pallet gives you around 100 mirrors per 40 foot container. At $20,000 per container, that adds ~$200 per mirror.
To see why this matters, consider that Samsung projector I posted about, the Freestyle. They can pack ~5300 of the devices in a 40 foot container. That $20,000 charge amounts to about $4 per product on the $899 device.
They got out of the low margin LED light business in pursuit of the fatter margins of tech.
They have failed to achieve this goal. Margins will still be thin.
Before you drop $899 on the wardrobe mirror
maybe see what Samsung has cooking in terms of a smart display/projector:
https://hothardware.com/news/samsung-freestyle-portable-projector-neat-tricks
(You can cast your phone to it, or use it as a smart device).
Go to Samsung's site and check out the specs. Really impressive engineering and features.
Are you sure anyone will drop $899 on a dim 18.5 inch mirror display, when they can get a 100 inch wall/ceiling projector display?
And! You can talk to the Samsung Freestyle. CAPC's product, not so much.
This year, you'll have to deal with the product actually being for sale.
Stock currently selling for ~80 times sales. Typical Russell 2000 stock trades around ~1 times sales.
Poor results will keep the lid on the stock price.
Did you see they already extended the $100 price drop past 12/31? Poor sales?
Clearly, you have no way of knowing any of that.
Check OTCmarkets at the beginning of every month. That will tell you how many have been de-legended in the prior month.
Watch which market participants grab the inside ask. That will tell you if it's retail selling or not.
'Diamond hands' sold this one down to .411 last year. More like Rhinestone hands from my point of view.