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Unfortunately it's not as cut and dry as that. Bankruptcy does not necessarily mean liquidation, it depends on the type of bankruptcy filed for. Chapter 7 is liquidation, but there are other options like Chapter 11 which is a reorganization of debt essentially. Some are defined term, some are final..
A lot of businesses go into the debt reorg type, and come out the other end able to continue operations, while primarily the shareholders are the ones that suffer. This is the type that concerns me now - the default when the company supposedly has cash to cover it is one of the biggest indicators. Many people here just don't seem to understand how serious a default is, and the ramifications that ensue for a long long time following.
Your point regarding the 'communicate less yet do more' policy not being effective is certainly a valid one. Were things running smoothly, sure, it can be an effective policy, but after an unexpected default? That is definitely not the time to suddenly clam up and leave shareholders in the dark.. it does not bode well.
I am watching the pps as close as I am able, and you can bet a lot of others are too.. another panic sell could be triggered so easily right now, I'm amazed the bottom-feeding scum mm's aren't trying to trigger another dump right now.. perhaps they are waiting on word from management as well, or word on what comes out from the conference today/tomorrow (strategic financing one)..
Sadly, Chapter 11 is a fairly common business strategy, and it is always the shareholders who get screwed when that happens.
HAHA glad to hear it ;)
Oh there's definitely "more going on here than meets the eye", it's just what "it" actually is that is so concerning.. unfortunately management aren't sharing whatever "it" is with the people who pay their damn salaries.
LMAO.. you sound like one of those people who idolized Obama but could find nothing positive to say about him other than "Obama is a very good orator".. lol
I'm happy to discuss the merits of any legitimate views on the current situation, positive or negative - perhaps you should try doing the same North40000, instead of focusing on individuals who have an opinion you don't like and not actually contributing anything yourself. Fair enough?
Thanks Fairviewhill, that is probably the best and most rational action to take at this point. It means converting a lot of long-term investment into short-term if I jump back in again, and thus higher taxes if I want to pull out entirely in less than a year (depending what my end-of-year net is), so I'll have to consider that tax effect too. Will mull it over. It's going to hurt to take that loss though.. a lot.
Thanks again.
No I didn't really add anything new today, just responded to others' posts to me is all. Fern Wood makes a good point to consider though:
Damn.. good point, didn't think of that.
Wish I had some way to reassure you that I am sincere. As I said though, don't focus on me, focus at the facts, anything else is fluff and speculation. I hope like hell I am wrong about my concerns.. that hope is the only thing keeping me holding right now... but the fact of a default keeps telling me otherwise.
I have to get back to work now.
Yeah sorting the wheat from the chaff can be a problem :)
Certain posters are all too obvious (sinking ships etc), but ignoring legitimate concerns is not doing yourself any favors (directed at Guy, not Fairviewhill).
I don't know what to do. I am heavily invested in ACTC and the science and results to date appear to be excellent, but damn, it's just one thing after another with the management of this company, regardless of whom is at the helm!
I am right on the fence between dumping everything I have and taking a 25+% loss, or holding out and hoping that the current red flags aren't what they appear to be... My cold investor sense says dump, but my heart and my less pessimistic investor sense says hold. I am very torn. All I need is some explanation and reassurance from management.. the fact they are not saying anything is weighing on me more heavily than anything else. One thing I am not doing now is accumulating more.. the risk/reward ratio is tipped a little too far on the risk side for me now.
Reality is more painful at present. A simple statement from management explaining the situation could clear this up instantly, or at least ease shareholder panic. Unfortunately they are not saying anything. That is NOT a good sign. Sticking your head in the sand or ranting at shareholders like me for expressing concern instead of you considering the reality our current situation is also painful, imho..
The creditor has a right to claim assets, including IP.. it's pretty clearly stated. BUT, you are correct, $1.2m should not bankrupt ACTC, and that's my point.. it's not a huge sum for ACTC relatively speaking, and if their restated financials are correct, they have the funds, so why did they default?? I just makes no sense.. unless they are considering Chapter 11 reorg of debts... then it makes sense.
Well yeah, that's my point.. it's not a huge sum for ACTC relatively speaking, and if their restated financials are correct, they have the funds, so why did they default?? I just makes no sense.. unless they are considering Chapter 11 reorg of debts... then it makes sense.
The amount of this default is less material than the fact they have defaulted at all, as far as future financing goes.
Future financing will definitely use this default as leverage to add a few points or conditions to any agreement - after all, their business is to make money, and no financier is going to pass up an opportunity to sweeten the deal in their favor, and defaulting on a past debt is a huge and legitimate factor when it comes to negotiating terms of finance, regardless of the prospects of ACTC moving forward.
Certainly if things go as we hope with the technology, financing will be made available, but again, there is zero possibility that this default will not have an impact on the terms of any said financing, and it will be to our detriment. There is no way around that.
It is beyond explanation that ACTC would risk IP and the terms of future financing on a relatively small amount (assuming their restated financials are accurate). The facts as we know them are just not adding up. The continued silence from ACTC management is only compounding this concern. I am very very worried.
For probably the first time ever, I have to concede you make a valid point for once DDLS. Having a default on record has just made any future prospective financing much less favorable for ACTC (and shareholders by proxy). Same applies for any prospective JV; this default is very damaging and will come back to bite ACTC in the future, and I imagine more than once.
Still NOTHING from ACTC management to shareholders to offer any explanation for this default, which to me translates to nothing short of intentional negligence.
I have yet to see anyone offer any concrete upside to this default action, nor any reasonable explanation for it. Most seem to just be ignoring it.
The fact the pps appears to be holding at around $0.58 further illustrates the disconnect between share value and reality with this company.
I am extremely nervous about these recent developments, and that Lanza is still not under contract, and this default gives up full rights over IP. So many red flags.... ACTC management should have stepped up immediately after this default.. this continued silence is not a good sign at all.
As the idiom goes, "The silence is deafening".
It appears he is too emotionally involved with the stock to make rational observations. I too was over-reacting when this news first broke, but at least I am able to take a step back now and look at what's going on for what it is, not what I want it to be...
What has that got to do with what is happening with ACTC now? Seriously, you see this as some sort of epeen contest or something?
Not that it makes any difference, I first purchased ACTC in early January 2009 at just over $0.03 and I think it was a month or two later in early 2009 when it shot up to around $0.29 and I did a lot of day trading around then and made a good chunk of change out of ACTC. Other than that first couple of months, I never sold again and I have continued to accumulate. I'm averaged at a little under $0.08 with a significant amount of shares (significant to me at least)... I'm talking hundreds of thousands, not millions.
Now again I ask, what the eff has that got to do with ACTC defaulting on a payment and what I have discussed previously, and why do you keep avoiding the issue of ACTC and instead focussing on me (?why?) and pretending there is no huge wooly mammoth standing in the middle of the room virtually bashing you over the head?
I've explained myself already as to why I was venting, which I feel was legitimate, and really I don't give a rats buttooty what you think about me - all you should be concerned with are the FACTS of default and other issues I have already mentioned. If you choose to ignore them, then shame on you.
Calling out the lawyers is premature, but that is not to say I wont consider it down the line. Clearly I was overreacting, and have admitted as such to Fairviewhill. If you choose to continue to focus on me instead of what is happening with ACTC, then frankly you should rethink investing, period.
Thanks Fairviewhill, appreciate it.
As you mentioned, with no contract for Lanza and unfilled key positions and Myles stated need for a stable/high share price to maximize their relationship with Lincoln, all seems to suggest bankruptcy is realistically in the cards.
I hate having to admit that, but there is no upside for shareholders from this default, at least not that I can see. Someone said maybe ACTC wanted to 'pay' them instead of give shares (and avoid dilution in the process). That costs them 20% right up front (an additional $200k).. common sense would be for ACTC to buy back $1m of public shares and then transfer them rather than default, thereby saving a $200k penalty, so the theory someone suggested that somehow defaulting is cheaper holds no water. Recent activity demonstrates they certainly aren't adverse to diluting us shareholders anyway, regardless of their rhetoric to the contrary. Actions speak louder than words...
I think ACTC will continue on, but I am afraid it will be restructured via bankruptcy, and the biggest victims will of course be the shareholders who have supported ACTC all these years. This is what made me so angry yesterday evening. A total slap in the face. The fact ACTC management have made no comment to shareholders today only reinforces this fear. These people are vultures, just like Rabin was. I'm sure they will say "we made this sacrifice for the science and the betterment of humanity", but that is bs - they did it for themselves, their egos, and their bank accounts (you can be assured they will be well compensated in the future for any current personal losses).
I have nothing but contempt for these 'people', and I include Lanza in that grouping - his failing to renew his contract, and the big dump he did a year or two ago that killed a run and screwed shareholders.. clearly his first priority is himself, at our expense.
Hey be paranoid if you wish, but I don't work for any hedge fund or anything related to the stockmarket. I'm an individual investor who has had the same positive view about ACTC as you have for years, until this latest bombshell. Actually maybe more positive than you Fairviewhill - I've seen you flip flop a number of times over the last couple of years here.
Look, I know you don't want to face it, but forget about my ranting, just look what's right in front of your face. It's an 8K confirming default. This is shortly after ACTC issued restated financials which stated they did have the funding to cover this, so there is only three possibilities: they lied on the financials (in which case, it's definitely game over), or they intentionally defaulted, or they just didn't deliver out of extreme incompetence.
Of those three, apply occam's razor and it really only leaves you only one answer; they intentionally defaulted.
Now ask yourself; what possible reason would they have for doing that? The answer to that is not good from here on out, as far as us long term investors go. Put your emotions to the side, forget my angry outburst and forget your desire to see ACTC succeed and your portfolio to expode, and just look at the plain facts in front of you and what they infer. I cannot see a positive side to this for long term shareholders.
I challenge you to refute what I have put forward above, without reverting to ad-hominem attacks and accusations claiming that I work for some scumbag hedge fund. Just stick to the facts as they are, like them or not. You're only doing yourself a disservice by not looking at this with an unbiased lens.
Yes I'm a 'new' member, technically. Actually I'm an old member who closed my account some time ago out of disgust at how a certain individual apparently has cart blanche to write any slanderous libelous trash talk he wishes on this forum, without fear of post deletions or restrictions, while anyone who tried to respond to his outrageous claims had their posts deleted within minutes, and if they persisted, soon found themselves restricted as I did, or banned altogether from posting here. This same individual destroyed the Google Finance ACTC board years ago, which led SuperFeeeed to create a new 'private' forum. I exchanged private emails with our 'friend' back in the Google forum days after a particularly nasty exchange where I refuted with well informed dd and links to support my responses to every last libelous claim the guy made. He apologized to me in private and confirmed he was indeed on a payroll to do what he continues to do on this forum. That IHub apparently condone it is why I left here, so don't dare class me in the same cesspool as that 'person'. I spoke out because I took my blinders off and saw what was right in front of me. ACTC defaulted, and that is probably one of the worst possible things they could do right now (for us particularly), outside of declaring bankruptcy straight up.
The chances of ACTC getting financing from ANYONE after this default is almost zero. The only financiers that would even consider touching ACTC after this are the same toxic spiral financiers that ACTC just spent years and millions and millions of shareholder dollars to get away from! How stupid can you get??? This is a complete train wreck.
Considering the stage ACTC is at, I can only conclude this default is not stupid, it is intentional. It appears certain, imo, that Directors, through pure greed and total disregard for the shareholders who have paid their exorbitant salaries for years, are going to run ACTC through bankruptcy to wipe out all us 'pesky' shareholders so they can keep more for themselves. Simple as that.
These 'people' have no honor, they have no interest in helping the human species, they have no altruistic motivation... these 'people' are greed-driven, egotistical, self-serving SCUM.
I am new so only get 3 posts. By this time tomorrow I will likely have started discussions with my lawyer as to what civil actions I can take against the entire BoD of ACTC. Their recent filings say they have enough cash on hand to cover this default, so they either lied (AGAIN) on their recent filings, or they defaulted on purpose - there is no other way to explain this away. None.
Defaulting is NOT "working to resolve the matter", unless you consider a 'resolution' being the first early stages in an intentional bankruptcy and screwing of the shareholders.
I have been pro-ACTC since 2009, but this was the last straw. Can't blame Rabin for this - ACTC directors clearly have ZERO regard for the shareholders. Watch them dump the lot of us in the gutter and come out the other end extremely wealthy individuals themselves at our expense. Nothing but SCUM.
ACTC should be putting out PR's RIGHT NOW stating how they are addressing this latest slap in the face to shareholders, but no, watch while they do NOTHING and say NOTHING until the shareholder base is destroyed. Pure evil.
ACTC acting for the good of the human species? NOT BLOODY LIKELY!!!
This is GAME OVER, at least as far as shareholders are concerned.
END OF THE LINE FOR ACTC INVESTORS. TRAIN RIDE IS OVER, GET THE HELL OFF! signed, the management.
I just saw this too - http://seekingalpha.com/news/1683673-advanced-cell-defaults-on-debt
I joined back with IHub (something I thought I'd never do again) to express my utter disgust at this latest development.
I believe it only came out today because, as stated in the 8K ( http://www.sec.gov/Archives/edgar/data/1140098/000101968714001483/advancedcell_8k.htm ), it was due April 15th but with 3 days to make good, which I guess is close of business today since markets were closed Friday.
I am FURIOUS at yet another failure by ACTC. Can't blame Rabin for this one!
I expect a HUGE dump on this stock tomorrow - likely down to the lower .04's or worse.
Based on lies from Rabin, I shifted a big chunk of my portfolio into this stock, then 2 days later they announced that HUGE dilution, which was most certainly a material event that should have been disclosed in the shareholders meeting 2 days earlier.
Then Rabin gets the boot, some more rah-rah bs from the new 'honest' management, led me to believe we were finally able to move ahead, so I moved near $30,000 into this stock with a big buy (for me) at .076, then it dumps again.. bought more at .o6 last week, my daughters college money.. and now THIS BS!!!!
No wonder Lanza didn't sign a new contract!
I am going after these slime legally with what I have left if this turns out to be anything but an honest oversight, but it looks like bankruptcy might be exactly their tactic - lose all the debt and screw the shareholders, and come out the other end and make huge money for themselves at our expense. I have been in this stock since early 2009 and I WILL NOT LET THIS HAPPEN WITHOUT A FIGHT. I will go after every one of these directors personally with civil suits, including Lanza himself. I will not rest. I consider this theft, and with nothing left to lose there is no reason to just shrug and let these corporate evil slimes get away with it!!!
I just can't believe they have screwed us AGAIN!!! This is the end of my faith in Lanza and his bs biocentrism - that should have told me enough right there that this guy is full of it.
Screw you ACTC you backstabbing evil self-serving pieces of human garbage.