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There is one poster on Twitter that has renewed faith
Not sure what justifies that, but I hope it proves warranted.
If there's real institutional interest
As management seems to suggest, shouldn't be a problem to take it out.
Well said
Illustrates the problems with the way this company communicates. Somewhat tantalizing, but mostly vague and useless.
Blame Stephenson
It's up to him and the management team to rectify the share price decline and dissuade shareholders from selling down here. Total flop on the IR front to this point.
Gas fee is nowhere near that high
Read the Medium article Microbuddies wrote. They discuss that the gas fee suggested by Metamask is too high. It shows up as being high IF you don't have ETH existing in your wallet. Deposit some ETH and it will come down dramatically.
The total cost should be no more than 0.06 ETH. It's up to the buyer to specify gas fees.
One of the deficiencies of Ethereum
Will hopefully get addressed when they release the next major upgrade with Proof of Stake, but it's the platform of choice for most NFTs.
If you own the stock
Worth it to buy at least one token if you can. Just be careful with the gas fees as the suggested ones in Metamask can be ridiculously high. Specify a lower amount if necessary. May take longer to process, but more sensible.
If that's your thought process
Then you're best off waiting until after the corporate action(s) are announced. I don't agree with your line of thinking in certain respects, but you're certainly entitled to that view. I don't think anything anyone says on this board will ease your concerns at this point. It's a waiting game unless you have faith in management or have an existing position and have ridden it down to this point.
Many of us got in when this was basically still a shell so we're still sitting on gains. Given the shell is clean and actually has over $120mm in NOLs, there is value that goes well beyond the typical shell.
I don't agree with your assumptions
1. They won't give up the shell. That deal is done.
2. Why would abandoning the RS result in a class action lawsuit? Who would sue them? They could cancel the RS and follow the HUMB-L approach by issuing convertible preferred stock to existing TDS shareholders (ie. shareholders of the private company and management) and continue with the plan to issue shares to whatever merger counterparties they've lined up. The RS was principally a way to boost the stock price to meet NASDAQ-listing standards (if you communicate with the IR person, this will become evident). It was also a way to lower the shell ownership %, but that can be accomplished in much more shareholder friendly ways (like I described). I'm not saying that they will cancel the RS (though I firmly believe it's the best alternative), but they could at least reduce the ratio, which would be positive for all stakeholders.
I would argue the stock price move pre-RS bomb was completely justified based on the information communicated and the valuation of the public comps (major ones trading at valuations ranging from $15bn to $80bn). They told us about two huge deals (US B2B database, Creditsafe) and we knew they were raising private capital presumably at a valuation above $150mm prior to even announcing those deals. Investors buying the stock had no reasonable way of knowing they'd do a RS, particularly given the small SS and float. It made no sense and was obviously value destructive. Even their favorite shareholder (guy on twitter that did the investor call) was buying stock at $1.75 and had to average down.
I don't know how they resolve this, but there are much more shareholder friendly ways than you suggest. We'll see if they get proper advice and act on it.
Stock needs your support BPeter
We aren't getting any support from management, so it's up to you!
I say that in jest and out of disgust towards the stewards of the company.
It's a forgotten stock at this point until management reveals its plans
Not necessarily a bad thing. I just don't see the grand manipulation scheme that you do. Traders grew impatient and left for other stocks and there's holders waiting for some positive signs. The problem is that management let issues fester instead of tackling them quickly and head-on.
Let's see what they do...hopefully soon.
We have different views
No need for this to turn into some sort of civil war. That said, until actions, whatever they are, are processed and finalized, I see no issue in expressing constructive criticism. It's part of being a public company. I see much worse on other boards and Twitter feeds.
Remember, it's management that caused this issue, not shareholders. It will also be management that will fix the issue.
I disagree in some important respects
Your assumption is that the CA is not an iterative process. Do you know that for certain? All we know is that TDS supposedly can't comment on certain matters (though unlike most quiet periods that I've seen, they seem more than willing to provide "business" updates on their main Twitter feed). We don't know whether they've been making changes along the way based on comments here and elsewhere and that's why it's taking so long. If that assumption is true, then maybe the constructive negative feedback will ultimately have a positive impact on the stock price (dare to dream). We don't know.
Anyways, I don't subscribe to the view that providing constructive criticism isn't helpful. S&P 500 companies are frequently targeted by activist investors with suggestions on how to improve their business and capital structure to boost stock prices. RS doesn't have the track record of a S&P 500 CEO, so he is not beyond reproach. He needs all the help and advice he can get IMO.
It's in the company's hands now. Any criticism on this board isn't going to affect the stock price much at this stage.
Let's hope your confidence is proven justified
I think that's the problem here. Very few share your confidence and it's difficult to find reasons to feel as you apparently do.
For me it's hope that sanity will prevail and RS got better advice from someone other than the clown IR guy and whomever else has been advising him.
Let's be honest here too. The company doesn't stick to targeted dates on deliverables. They blame everyone else, but never admit fault. It doesn't take months to process corporate actions if everything was lined up properly. This means something changed. What? Presumably we'll hear at some point.
I hope the critics (myself included) are silenced with a round of extremely shareholder-friendly updates. It's the least they can do after the self-inflicted damage.
I'm with you HV:) Disgruntled shareholder trying to look for positives.
I want to believe you're correct
Unfortunately, RS has been vague about practically every step of this process. No definitive statements in support of shareholders, which is disappointing given the decline in the stock price. I'm not a fan of the IR guy either, but others might have had more favorable exchanges.
It's mind boggling to me that they haven't been more active in supporting the stock. I don't think whatever CA is in store constitutes an appropriate excuse for the lack of forceful defense.
My opinion of RS
Is negative at this point, BUT it's shaped by his actions towards CLHI shareholders. It is NOT a reflection of his understanding of the data management industry.
I would like to believe that he acted on bad advice and was naive. If that is the case, I would hope that he has some level of humility and has the courage to take corrective action. Unfortunately, he hasn't exhibited humility to a significant extent to this point. There have been sporadic indications that he understands the key issues related to the stock, but the time lag to provide a definitive response has obviously had a very negative effect on the stock.
Thanks for the compliments
I would say, I really want to be positive on management and talk about the operating fundamentals of the company rather than issues like share structure. It's unfortunate that management made share structure the focal point for most shareholders. It's their fault.
I cling to the belief that it will be very hard for management to have calls with investors if they don't address share structure in a shareholder friendly manner. Reducing the ratio would help some, but there will still be many angry shareholders on calls. They can't hide from these types of shareholders forever.
Hard to believe it's been almost a year since we learned about TDS taking over CLHI.
Great points
We've obviously debated the R/S on this forum quite a bit, but I wanted to make another point. The company was focused, IMO, on the wrong goals. The primary objective should have always been to grow the market cap as much as possible. Their actions ran counter to this objective.
The company also needs retail investors to support the stock and drive appreciation. They were a long way from uplisting and needed to build up a supportive shareholder base first. Worry about the numerical share price later. Adjust the share ownership through convertible preferred stock (like HUMB-L), but don't punish shell shareholders.
If anyone has communicated with the outsourced IR firm, you'll quickly realize at least one source of bad advice. At this point, I still believe there isn't much downside (of course, I thought that at $0.25 and was proven wrong to a certain extent). I just don't know how to assess the upside until we get more information.
Mark it up Bpeter
We need you to rescue the stock at the end of the day.
None of that matters
Until we get some certainty around the OS and get some numbers to back up the qualitative bullish commentary. They need to build up confidence in the company, which is obviously lacking at this point given RS' prior missteps.
HODL and hope.
C'Mon RS
Cancel the R/S and do the right thing for once!
Been buying more
I'm disappointed like everyone else that at least one deal hasn't closed yet. That said, having done M&A, I do realize that it is complicated to get some deals done (particularly cross-border). Expectations were improperly set, but what's done is done.
The current valuation is close to empty shell level (particularly given the small OS). I do agree with Tilton that positive news will get amplified by the low float and OS. We just need substantive news to hit.
On the positive side, most of the comps have held up well despite the sell-off in the Nasdaq and small-caps. That's a testament to the strong underlying sector fundamentals.
To those that got blocked on Twitter, I can sympathize. I was also blocked from another company's main Twitter feed presumably because I was too vocal in my criticism (I know that wasn't the case for some on here). It's not the right approach and I hope the company reconsiders at some point (or sets up another Twitter handle to disseminate information to all shareholders).
In the interim, we wait...and hopefully get paid well in the end to do so.
Sounds typically cryptic
There are many problems with how the company has acted and communicated, but the veil of secrecy on many issues has hurt shareholders tremendously. I certainly hope it all works out and believe the stock has meaningful upside, but it should have been a much better outcome for all CLHI shareholders. Waiting three months and counting to properly respond to shareholder concerns is unacceptable IMO.
Not for me to answer
Just clarifying an important distinction.
I would say that the principals probably want stock as currency to do deals. I would imagine there's a lot to this story that will be revealed.
It's a merchant bank, not a depository institution
It's not regulated like a depository institution. One should think of it being more like a private equity fund.
Book equity is still a reasonable way to think about valuing the company assuming assets are marked-to-market.
Could be creditors buying up the equity
They obviously have knowledge of the proceedings and can amplify their returns by owning the equity.
Took a position
I view this as a very cheap call option on the restructuring. I don't think the Thai government, particularly given its existing equity stake, wants to let this company fail. The fact that the union is supporting a restructuring helps too.
It will be an interesting week. I wouldn't advocate a big position, but the risk/reward is highly favorable and could pay off handsomely.
Let's hope
The market believes otherwise I would say (and obviously dislikes uncertainty). Management hasn't earned the benefit of the doubt, but I hope they prove the market wrong and make some positive changes for shareholders. We deserve it AND it's in the company's best interest to have supportive shareholders.
I do question why they suggested it would take a small number of weeks in the last update. What gave them confidence to say that? Did they make additional changes to the CA?
Unfortunately, we only end up with more questions than answers with these updates.
Multiple problems I would say
The RS is a problem. I do believe the worst is discounted at current levels, but the upside is difficult to ascertain without knowing the pro forma ownership for shell holders. The delay, as you suggest, is also a problem. I would add that communication from management is too often vague with little substance. There are multiple items that deserved updating long ago- the acquisitions they highlighted last year being one of them.
They botched the process. My hope is that the delays in processing corporate actions are indicative of changes to the RS (or perhaps FINRA doesn't agree to process it, which would be great). There were much better ways to manage the capital structure and better serve all stakeholders.
Stock would have doubled if RS quit
LOL. Been three months since RS dropped the RS bomb and no concrete resolution. Unbelievable.
I agree
I'm pleased that the target is a North American company. I was on a Virtual seminar last week on esports and most of the presenting companies were Canadian. They've really taken a lead in this area.
OTC traders will wait for the news to actually hit, but then the stock will re-rate a lot higher quickly. I believe patience will be greatly rewarded.
Got some additional information today
Target is a Canadian esport company and they're negotiating for an 80% stake. Glad to see it's a North American company that they're targeting, which improves the legitimacy of the acquisition in my view. Guess we wait now, but they seem to be moving in the right direction.
My thoughts
It's obvious Silverbear, Tilton etc. have been focused on N-SAV this week given that company's update call today. I hope once that's over (10am Eastern time), they'll shift the focus to CHIF. Our share structure is much better and sets the stock up for a huge run, but we need the M&A catalysts to get fickle OTC investors to bite.
Comparable valuation
Just to clarify, Humbl's valuation is actually over $9bn if you factor in the convertible preferreds issued to management and other insiders. Not saying whether that is reasonable or not, but IPSI's valuation discount is absurd. IPSI is currently trading at a valuation of ~$45mm.
What about Creditsafe?
Another acquisition target mentioned last year that they haven't talked about. We have numbers on a Powerpoint slide and a row with the number of acquisitions they intend to complete, but no useful information.
Certainly hoping May is the illuminating month they've intimated it will be.
As usual, it comes across as a great story
Up to Corbett, IR and HCW to figure out a strategy to get the market more excited and promote a higher valuation. Corbett said "We're pretty confident it will work out for shareholders".
Paid to wait here in my view.
Found a floor
As I and others have stated, the stock found a floor in the mid $0.20s. Shouldn't have gotten down to this level, but let's be forward looking.
1. The 15-1 R/S is discounted in the stock in my view. Any changes will be a net positive.
2. I think the delay in the corporate action filing (to end of March apparently versus the originally indicated timeframe of mid-February to early March) should be perceived as a positive. Something changed (we can all hope a certain provision) and required a delay.
3. We need to hear about the acquisitions they lined up last year, more explanation of the projections etc. If they can credibly lay out the case for the strong revenue ramp, the stock will react favorably. Hopefully we get a good chunk of the company post CA to make it matter.
Waiting and hoping at this point. Not much reason to sell, but I can understand the hesitation from buyers too.
Implication
So it really wasn't the pandemic that caused the delay, it was a change to some aspect of what they were trying to do. They were talking about pushing through corporate actions in February and early March.
Oh well, we're all left to speculate until they clarify what's happened.
Interesting on one of the comps
GMBL
HC Wainwright & Co. Initiates Coverage On Esports Entertainment with Buy Rating, Announces Price Target of $20
6:26 am ET April 27, 2021 (Benzinga) Print
HC Wainwright & Co. analyst Scott Buck initiates coverage on Esports Entertainment (NASDAQ:GMBL) with a Buy rating and announces Price Target of $20.
At $20, GMBL would have a $400mm market cap (not fully diluted). Similar shares outstanding as CHIF.
Fair enough
The lack of transparency (and trust in management) is reflected in the stock price and implied valuation at this point. Assessing the upside is difficult given the variables, particularly share count and shell ownership %, that are unknown.
I would suspect that some sort of "peace offering" will be given to CLHI shareholders before they do the investor call in May (assuming that goes ahead as planned). Otherwise, the call will devolve quickly and be counterproductive.
I'm just puzzled by the length of time to effect the CA. Blaming it on the pandemic, as some on this board have done, is nonsense. There must be something else going on behind the scenes. I hope it's ultimately to all shareholders' benefit.