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Vigo, my friend, nice to see your reply. I watch and listen but don't post often but I recall sharing Valcom information in the sub-penny range last Spring. I think you are the reason I look at GEMZ now and then, and perhaps why I picked up a little NXOI.
OK, DIAAF is not as transparent as I'd like it to be and I'm still digging. I suggest you look at my posts in DIAAF. There are liquidity issues and DTC Chill issues so it's part "gut". Some brokers (like TD Ameritrade) will not allow buying now but others (like Fidelity) allow full order flow.
They reported O/S shares of 304,015,000 on 8/31/11. Information is not readily available for current A/S and Float. But I can't ignore their financials.
Good to hear from you!
TD Ameritrade doesn't manipulate stock price, why would they? They get paid for order flow and commissions - they are not market makers.
I confirmed again today that DIAFF is still on TDA's Chill list. (explained below).
Point is that at least one of the top online brokers is still blocking buy orders while others allow orders to flow. This just injects uncertainty about the equity and also sends up red flags to other potential buyers regardless of who they use for a broker. It impacts buy side liquidity.
I'm still digging:
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In further pursuit I emailed DIAFF's transfer service and received this response from Select Fidelity Transfer Services, LTD (Ontario):
"we are not aware of any chill at DTC. Please contact your broker for more information.
Regards,
(name withheld)
Administrator
Select Fidelity Transfer Services Ltd."
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So I called DTCC and they would not disclose any information to me since I am not their direct customer. They were sorry they could not discuss it. I was advised to speak to my broker which prompted another call to TDA.
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One email response from TD Ameritrade:
"... the DTC Chill means that the firm has a lot of uncertainty and risk with clearing these trades. We will generally only allow purchases and sales on a stock that we can be certain to clear electronically through the DTCC. So, when a stock goes on a Chill, we only allow clients to sell any position they already hold. If it goes on a DTC Global lock, then we don't allow either.
Other brokerages may be allowing trades on these securities- looking at the volume, there is clearly at least one out there doing so. However, TD Ameritrade made a business decision some time ago to not allowing buy trades on a DTC Chilled stock. We apologize for the inconvenience, but we also really believe that it helps to protect both our clients and the firm. Please reply if you have any further questions.
Sincerely,
(name withheld)
Trade Resolution, TD Ameritrade
Division of TD Ameritrade, Inc. "
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On the recommendation of Southgas (thanks my friend) I opened and funded a Fidelity account. Thanks to Fidelity Customer Service I was able to place a DIAAF limit "buy" order with no problem even though I am waiting for funds to be available for online trading.
In summary, I think Diamant reported with a best effort to reflect earnings, assets, liabilities and the state of the business. I also trust TD Ameritrade as a broker. Do I suspect price manipulation? (I'll let you know.) I'm very patient and accumulating.
DIAAF (Canadian) may fit your criteria as mid term value play. They reported last weekend and then pushed over .003 - pulled back closing around .0015 today due to a DTC Chill (I think).
Some brokers including TD Ameritrade will not allow new positions during the chill. Apparently DIAAF continues to trade freely with other brokers including Fidelity and Schwab.
Reported earnings of .005 for the Qtr; http://www.otcmarkets.com/financialReportViewer?symbol=DIAAF&id=62951 And > .02/share over the last three quarters and doubled revenues. Nice balance sheet for a micro. I think it's worth a look.
Here's a recent post about their last three quarters: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=68248705
I look at GEMZ now and then and appreciate your ideas! Just wanted to share this with you. Thanks.
My guess is a DTC Chill sent up some red flags and some brokers turned off buying. So far the best I came up with is that there are many reasons why this happens. I'd guess that the huge volume on Monday and Tuesday on a foreign company (5th symbol character = F) flagged it as suspicious activity but there could be a host of other reasons.
Come on, DIAAF is Canadian! So much for NAFTA and free markets. The SEC and DTCC are trying to prevent fraud but in doing so they can screw with any microcap and never disclose why - so much for transparency. If you have about 3 hours this is worth a look especially if you trade microcaps: http://www.sec.gov/news/otherwebcasts/2011/microcaproundtable101711.shtml
These are just my thoughts and inferences from digging around. I may be missing something but DIAAF looks way undervalued and will find a fair share price in time. So for now, I'm going to let this play out another quarter.
BTW, 10/24, an Attorney Letter with respect to current information was posted from a Maryland attorney. I was glad to see it: http://www.otcmarkets.com/financialReportViewer?symbol=DIAAF&id=62994 It provides some support for DIAAF and their filings.
Southgas, thanks for your email earlier about brokers (I was unable to reply. I'm making a few broker changes).
DIAAF buy freeze at TD Ameritrade (and maybe elsewhere) stalled buyers today IMHO. I talked to a TD rep and they were a bit vague but thought is was a DTC Chill. TD Ameritrade ranks #3 in online brokers - following Fidelity (#1) and Schwab (#2). I opened a Fidelity account today.
What doesn't make sense is that other brokers apparently processed buy orders with no problem. I noticed the same problem with another stock that up-ticked but I couldn't buy it. I've been a TD fan for many years (since the early days of Datek) but I don't understand this.
I'm still pursing "why" but moving at least half of my accounts to Fidelity or Schwab.
I hope I'm not too far off topic but I think this issue materially affected share price today. I'd appreciate any thoughts.
Very interesting quarterly report! We earned over 2c per share in just 3 quarters. Let's assume we match the .005/share earnings next quarter and our annual earnings are .025 per share. What's a reasonable share price considering income and growth? We more than doubled net income in 6 months but at the same time we increased O/S shares. The balance sheet puts us at about $2.4 MM in net assets yet market cap is about $274K at the .0009 close on
Friday (hmmm?). OK, a little DD follows:
Net per Common Share:
Qtr Ending...Common Shares...Net Inc...Net Inc/Sh
2/28/2011.... 102,068,870....... 724,387.... 0.0071
5/31/2011.... 124,014,843.... 1,054,732.... 0.0085
8/31/2011.... 304,015,000.... 1,506,909.... 0.005
Net Assets: 8/31/2011
Assets less Liabilities = Net Assets
8,861,651.... 6,471,420.... 2,390,231
Oh yeah, all this in Canadian dollars so multiply by .98 for U.S currency.
http://www.otcmarkets.com/financialReportViewer?symbol=DIAAF&id=62951
So now, what's a reasonable target for Diamant with about .025 earnings in 2011? You be the judge. Perhaps 4 times forward earnings? But I'm a realist and not expecting to see dime for quite some time. I'm willing to let this play out over the next few quarters.
It's beyond my comprehension why DIAAF closed at .0009 on Friday. I must be simple minded. Help me understand - I must be missing something.
DIAAF now appears to be a value play after falling out of favor. Some crap about DTCC and trade-for-trade? I suppose it impacts liquidity so traders beware.
Overhead from here appears thin so I think the float is still modest (last report was under 200 MM). I don't think there are any serious market makers's here.
Information is a bit sparse but looking at last quarter it appears that DIAAF is profitable (almost a penny in the last quarter alone). Check out T&R. Check out the income statement last quarter. The balance sheet also looks good. I was encouraged to see the late filing notice after months of silence. Next week should shed more light.
I won't try to recount all that I've read so DD is up to you. No doubt some of our friends are just waiting to sell into strength - perhaps me too.
My sentiment is to hold and accumulate from here and let this play out for the next few quarters. Just thoughts - what am I missing?
GLTA
We should hear something next week. Late filing notice on Oct 16: http://www.otcmarkets.com/financialReportViewer?symbol=DIAAF&id=62681
I see. I'm curious? Did SKTO turn the lights off for a long summer vacation? One would conclude that the OTC "Stop" warning doesn't concern management: http://www.otcmarkets.com/stock/SKTO/quote
At least their website and phone lines still work.
Due diligence is a difficult. Any ideas?
I see. I'm curious? Did SKTO turn the lights off for a long summer vacation? One would conclude that the OTC "Stop" warning doesn't concern management: http://www.otcmarkets.com/stock/SKTO/quote
At least their website and phone lines still work.
Due diligence is a difficult. Any ideas?
Compelling article by Mega Deal (translated to English). Nice dd and conclusions by the author. Thanks for sharing!
Is Mega Deal widely followed in Germany?
No 1 on IHUB Most Active at this wee hour of the morning. It will be interesting to see what 9:30 brings...
Response from IR on Audio Library:
I asked this question to clarify the audio assets: "... accordingly, is the "Audio Library" to be another addition to the library assets to be reported in the next 10Q filing that is due in August?
A timely and profession response from IR:
"...With regards to your question, you are correct… the appraisal for $41 Million is for the Film Library, as we are currently working on the Audio Library. There will be an update on the next 10Q. ..."
(Sorry if this is redundant.)
I think so too. Looks like some shorts were in play yesterday and today. Yesterday's run from .016 to .062 was begging for short plays. Guess some may have profited. I see no other explanation for the volume. I guess they'll respect us in the morning after today's strong close.
Yes. Also notice the careful wording in the 10Q that states "film" library. In April DOS Appraisers estimated $80 MM in "audio" assets which has yet to be reported. I would think we'll see this in the next 10Q around mid-August.
From the 10Q:
NOTE 7. AUDIO AND FILM LIBRARY
An independent appraisal service has prepared a valuation on the Company’s film library. The library is composed of a large collection of videos, movies and TV shows. The appraisers considered multiple factors in determining fair market value of $23,206,942 and a net present value of $161,572,209. These factors used in the valuation process were as follows:
Cost - $18,275,150. Cost has been calculated by the appraiser and confirmed by an independent certified public accountant working with the appraiser. The film library inventory was adjusted accordingly resulting in a gain on the Statement of Operations.
Yes Gregg, it is nice to have some more good company here, my Florida friend. Congrats! This volume nuts.
I think so too Mikie as more buyers discover the value. Net assets near $20 MM - Valcom looks like a rare gift now and still undervalued at .07 - .10. I expect long term shareholders will be well rewarded.
Yes, but the assets appear to include an adjustment for the "film library" only but not the "music." Recall, the music appraisal was announced in April. I think we won't see a full valuation until after the next 10Q (mid August).
Quote from 10Q (I added the bold letters):
NOTE 7. AUDIO AND FILM LIBRARY
An independent appraisal service has prepared a valuation on the Company’s film library. The library is composed of a large collection of videos, movies and TV shows. The appraisers considered multiple factors in determining fair market value of $23,206,942 and a net present value of $161,572,209. These factors used in the valuation process were as follows:
Cost - $18,275,150. Cost has been calculated by the appraiser and confirmed by an independent certified public accountant working with the appraiser. The film library inventory was adjusted accordingly resulting in a gain on the Statement of Operations.
Re late filing: I don't know but I think 10Q was due 45 days after the quarter ended; add extension of 5 business days. My guess is it needs to be submitted in the next day or so, like 5/22 +/-.
Late filing notice is dated 5/13, received 5/16, but I didn't see it on OTC Markets until 5/21.
Anyone else know?
Late filing: I kinda' expected the 10Q might be delayed possibly due to accounting decisions involving inventory assets.
"The Company intends to file its Form 10-Q within the 5-day extension period afforded by SEC Rule 12b-25 ...": http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=7934886
Perhaps the pps will languish a little while longer. Next week just might provide another buying opportunity. Any thoughts?
Good Stuff! Thanks for posting. It sounds like the meeting was right on target for what shareholders' needed to know. It opens up more questions but the notes are very positive. It appears like there's a methodical and thoughtful sequence to releasing information - I like that. Or, perhaps it's just simply that we're in middle of the processes churning. The inventory piece is so overwhelming that I image many folks are skeptical. It's a lot to digest and will take time.
I am delighted to read that broadcasting is now profitable. I'm awaiting the 1Q results. I imagine that the accountants have been scratching their heads on this one.
Curious about Greg Manning Auctions and it's history (triggered by your discussions) I found this article ...
http://spectator.org/archives/2009/08/14/sold-short/print
Wow! It sure reads as credible and shows why the SEC had to get its head out its ass and do something about naked short selling.
Here are a few highlights from the article but it's worth reading the entire article for continuity:
"two financial publications published false, negative stories on Escala Group, driving the shares down 25%. Based on our research, the implied allegations in the stories are false."
"But suddenly May (06) trading volume in Escala shares exploded to 97 million shares, up from 2.7 million the previous month. Most of the volume was traded over the course of 11 days, meaning every single share would have turned over multiple times in this period -- a virtual impossibility -- and failure to deliver transactions rose to 57.2% of the May shorts. With millions of shares not delivered, significant evidence existed that short sellers were not borrowing for legitimate delivery and were manipulating the stock price downward. The practice also created "phantom shares" of stock, which artificially increased the public float and put further downward pressure on the share prices."
"Greg Manning may be one of those final victims of the old naked short regime. Unlike the larger companies that survived the bear raids, Manning's story is a sad one about the American dream crushed. I hope it one day involves a tale of redemption as well."
On a personal note, I wish Greg and his family success and prosperity. I am delighted they've joined the Valcom team.
And the winner is ... (drum roll) Mrs. April Lufriu from my home state of Florida (Tampa). That was news from Greenbrier on Mother's Day (5/8) and brought to you by Valcom's My Family TV and others:
http://www.mrsamerica.com/
Sorry if that sounded a bit cocky. It's the wine.
The silence is deafening - like a game of Texas Poker. Missed the .014 opportunity to add more today but that's OK since I added at .012 on Friday. Just averaging up now and guess I'll pay .02+ on my next add. My average cost keeps increasing. I'm patient and my open buy orders are waiting for anyone willing to sell. Hit me up.
I agree, no news is good news until after the 10Q and Shareholders' Meeting. Patience prevails. This will be an interesting month.
For now I'd guess that most of the float is now in the hands of long-term folks like us which doesn't take very many of us.
Yes, I agree but it may take many months to play out. We had "news" on the appraisals in the form of a "PRs" but nothing is official. Most agree that that Valcom is extraordinary undervalued based the PR - including me. It's pretty simply to approximate a Future Net Asset Value based on the news.
But the market needs to see it reported. I hope to see the $40M movie inventory in 1Q results later this month. Then perhaps the $80M in 2Q results in late August. And in the pinksheets we'll still be off the radar of mainstream traders. I wouldn't even guess at a Nasdaq re-listing time frame but would like to think it can happen this year.
Oh yeah, then there's that little thing called broadcasting revenues over the next several quarters which will be interesting to see. That's the reason I bought in originally I sometimes forget that. ("My memory is the second thing to go.")
So today and perhaps until May 11 or beyond it looks like buying opportunities abound. But time will tell.
Do you think someone is manipulating the pps this week? Ideas why?
Thanks for you posts!
Patience needs to prevail. We don't need more news now - we have more than the market can digest and believe. We'll eventually find equilibrium and drive toward a reasonable value. After a 300% run a retracement to about .02 (+/-) is healthy, expected, and offers the next buying opportunity. But since there's only about 17M in the float we could run higher anytime.
Next milestone is 1Q filing that might actually book the movie asset value. Perhaps we'll need to wait another quarter to see the music inventory booked since the appraisal was in April. The key is to get it booked.
May 11 meeting will also be interesting and I'm actually thinking about taking a day off and attending since Orlando is only 100 miles away.
My rough back of the envelope scratch pad has us at a net asset value of over a buck. (1.05 +/-). Even a liquidation sale would probably bring 20c or more. So what's a reasonable 12 month target? Perhaps .50 - .75? (of course adjusted for a R/S). Just a stab at May 2012.
So do you think we might be an acquisition target? If so what would Disney or Universal offer? How much would we accept? (Food for thought and comment.)
Obviously I think we're way undervalued. I've alerted a few friends and family just to take a look. I don't often do that.
Time will tell and please don't base your decisions on my thoughts. I've been known to be wrong and I've had few glasses of wine tonight.
Yes that's true my friend, you could give back perhaps up to half to the tax men depending on where you live and your tax bracket if sell Short-term.
Fed Long-term Cap Gain rates increase from 15% to 20% in 2013 for most folks. Also add in State Cap Gain Tax where applicable.
Wikipedia has a nice table: http://en.wikipedia.org/wiki/Capital_gains_tax_in_the_United_States
The point being is that if you profit in long term you'll keep more in your pocket if you hold at least a year.
A swing trader might book more upside profits by buying and selling repeatedly with S/T trades but will likely give a bigger piece of it back to the IRS.
I'm patient and expect to hold L/T. I might pay back my initial costs S/T but right now I'm looking for more buy opportunities.
I think VLCO is a rare gift but I'm often wrong. We'll see.
Thought provoking question! I'm also thinking about my strategy now that I have more shares than I ever expected to own. I ended up just adding, then adding more and more ... (for months). I broke my rule by adding to a losing position - just didn't believe VLCO should be a sub-penny stock - also followed the insiders. My Family TV accomplishments and expansion plans were my incentives and I never factored in the library inventory in my dd until the movies were appraised in March. I was amazed that didn't bring in buyers back then (except us perhaps).
Now that this is starting to look like it could be a life changer it does pose the question of "how long / when to sell." I have no clue. For now I'm staying with my original plan to hold long term with expectations that ValCom will become profitable with broadcast revenues. Now with an unanticipated $120M+ in library value - I'm staying away from the sell button.
One should consider capital gains tax - perhaps another reason to hold for a year or more unless you're in a Roth. Also consider that L/T tax rates will increase in 2013. So I'm thinking of a nice Xmas in 2012. Short term traders making upside profits are gonna' get a larger tax smack. (I don't think the downside traders need to worry about gains.) Of course this assumes we're right about the rising pps.
As long as we trade on the pink sheets we're out of the mainstream. When (or "if") we get to the Nasdaq we'll be on everybody's radar then perhaps we'll see a fair market value. Vince and the gang are taking the steps to see that this happens. I expect to vote FOR the R/S and the directors.
So my questions is: are you buying/adding long at .03?
BTW, this is my first post on IHUB but I've been looking in from time to time. Thanks to all for your thoughts and diligence.
Vince, if you're reading this - I'm glad you're with us here in Florida! And Vince, I enjoyed the Tampa Bay Media Talk back in '08. A belated "Welcome home!"
Best wishes to all.