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Wheels10bagger...
Thanks! Heck, I will definitely add to my agenda going back to research some previous filings.
Because of the elimination of non profitable units, the consolidation of the Company’s operations, and the restructuring of their base of operations to eliminate certain costs to outsourcing as mentioned for being the primary reasons why the encountered increases in the past for their "Operational" Expenses, those days could be right around the corner.
I'm a little tired right now, but I will definitely go back and do some digging. Thanks for the potential lead.
v/r
Sterling
Iwantmoney, about your thoughts...
Respectfully, I do hope you are wrong although I do see how you are looking at things. I did take how you are looking at things under consideration which was how I viewed things initially. The logic I gathered from the $7.8 million in Debt Forgiveness was that it had to be applied to a fixed variable with that fixed variable being “Expenses” as how it was indicated within the 10K.
I think the way you are looking at the $7.8 million in Debt Forgiveness is as if it was applied to the variable of Income (or the total figure). I was initially too which might be the correct way for interpreting. Since Revenues minus Expenses equates to Income, I saw the $7.8 million Debt Forgiveness as being only directly relational to Expenses, but indirectly relational to Revenues.
Since the $7.8 million was to be logged under Expenses and since “Expenses” is one of the variables to derive Income, it has to be non-inclusive with the variable of Revenues. I could no doubt be looking at this wrong as would be revealed in the upcoming 10Q. That’s kind of why I mentioned that "even if I was half correct" of the .47 per share figure I posted to have a more conservative view.
My initial thoughts were from page 28 within their 10K where the $7.8 Debt Forgiveness is reflected under the overall section of Expenses in direct proportion. The Revenues listed in the section above the Expenses listed Revenues as $8,532,953. I was banking that they will make at least that same amount of Revenues with the $950,000 per quarter in Expenses as we agreed upon to support my initial thoughts and your current thoughts which would justify us trading at half of the .47 per share figure I posted earlier.
Either thought looks to be a safe and profitable situation for those at these levels. Again, with all due respect, I do hope that the second way I was looking at things is correct for share appreciation reasons. LOL
Thanks for sharing your thoughts!
v/r
Sterling
Brackep...
Below is a post I responded to someone by the name of "Kickyourace3" within my forum on RB concerning WNSH back on 2 May 07. I'm a little tired so I will only cut & paste the WNSH portion to keep from re-typing.
*********************** ****************************
http://ragingbull.quote.com/mboard/boards.cgi?board=CLB01219&read=340213
Kickyourace3 (& ALL), with those stocks...
Those companies all supposed to have some kind of running business, product, or service that are either generating Revenues or are getting ready to generate some Revenues.
I did speak to Mark Ellis, the CEO of WNSH, a few days ago. He did confirm with me that the deal they are supposed to have with BUGS is real. News should have been out already from when he told me to expect it.
There is a history of reverse splits with WNSH, but I was told all is different now and that the Float has been in the process of being bought up. I last spoke to Mark around last Thursday. He informed me that they are trying to buy up as many shares as possible so that they can maintain better control to fight off any selling pressure into the expected price increases in the future. He told me that there are about 500 million shares remaining in the Float to be bought by the public from what has already been accumulated. Again, this was as of last Thursday so by his numbers of what the OS is (I think he mentioned 1.6 billion), the Float should be gone. Look at the volume since 23 Apr 07. Some serious accumulation definitely has been going on.
Mark has a history with the SEC in which I spoke with him about from a post/article I had seen on IHUB from PENNYBUSTER. Mark explained the negative article that was out there to me. He asked me if I had read the entire article. I told him no. He said that if I would have read the entire article, I would have come to the latter portion where it explained that the subpoena was for him to come provide testimony for the Brokerage Company that they use and not for him. He informed me that he was forgiven for the payroll accusations as that was resolved to the SEC likings. He said he was considered clean with the SEC with no blemishes or WNSH would not have been allowed to continue trading as he assured me.
Many are waiting to see what news is going to be released because BUGS is a credible OTCBB company if everything pans out as he told me. He seemed very sincere during our conversation, but heck, everyone sounds sincere to me (LOL). He does have a bad history within the investing community eyes from older affiliations when the stock existed as different tickers before previous reverse splits. Some might be willing to forgive him if the BUGS deal is true and can show how it will greatly benefit shareholders. Heck, as for me, I just threw a bit of lunch money into it because of the volume and the price. Again, I would treat all of those stocks as a trade until or unless the company "legitimately" confirms that it's worth being treated like an investment.
v/r
Sterling
TRENDmendouns (& All), about your SFNN thoughts...
You have the Outstanding Shares (OS) listed to be 301,565,417 shares per the 10K which is fair. I believe the OS to be a little higher, but nothing significant to worry about since the Authorized Shares (AS) is 500,000,000. I think we should wait and see what comes out in the upcoming 10Q to confirm any of my thoughts. I’m bringing this point out because I think the OS that was used to derive the .02 Earnings Per Share (EPS) in the 10K is what’s confusing some people as to why we are fundamentally still at these price levels.
Unless certain news is released, or confirmation from the upcoming 10Q, some people will not be confident that SFNN will have consistent growth. Personally, I am confident that SFNN will have consistent growth and do very well, but I am just one man.
I think what temporarily spooked some people was that the recently announced .02 EPS for the year per their 10K was derived from using the OS of 138,718,185 shares for the denominator as of 31 Dec 06. While as of 28 Feb 07 the OS was 301,565,417 shares per 10K. I think people want to know “the now” for the EPS and not “the then” for the EPS. Hopefully the upcoming 10Q will confirm what us who are pro SFNN believes.
The .02 EPS was derived by using the below numbers from their 10K:
Income ÷ OS = EPS
$2,757,432 ÷ 138,718,185 = 0.0198 EPS
Rounded = .02 EPS
Multiplied by a 16.5 P/E Ratio x .02 = .33 per share
The Price to Earnings (P/E) ratio is the current growth rate for the Industry that SFNN trades within as indicated in the link below:
http://biz.yahoo.com/p/447conameu.html#sfnn.ob
(It was 15.6 a few days ago, but now is 16.50 as of 3 May 07.)
The above is why people think SFNN should be trading in the .30+ per share range or so. I think the same information exists somewhat differently from some of the same given facts, but it has to be derived a little differently. This is how I see it from what was not directly revealed.
There was an increase in Revenues that took SFNN from an $11 million loss to $2.8 in profits. That’s a difference of $13.8 million in Revenues growth over the past year ending 31 Dec 06. Quarterly, that would reflect …
$13,800,000 ÷ 4 Qtrs = $3,450,000 Per Qtr for Revenues
In “quotes” and bold below is what was directly from the SFNN 10K filed on 11 Apr 07 to reflect what I think will be upcoming Expenses for SFNN in their 10Q:
http://knobias.10kwizard.com/filing.php?repo=tenk&ipage=4805966&doc=1&total=&back=2&...
…”Shearson Financial Network had a loss from operations of $3.8 million for the year ended December 31, 2006…” That was…
$3,800,000 ÷ 4 Qtrs = $950,000 Per Qtr for Expenses
This means that SFNN had $950,000 per quarter in Expenses which means that SFNN needs to make more than the $950,000 per quarter to be profitable per quarter. It appears that apparently such would be the case from reading within the 10K how they have generated Revenues from having $11 million in losses to $2.8 million in profits.
The explanation filed by SFNN below in their 10K could lead one to think that they have even further reduced the Expenses of $3,800,000 per year (or $950,000 per quarter).
…”The loss in the prior year related to the costs associated with the consolidation of the Company’s operations and by eliminating non profitable units and restructuring the Company’s base of operations to eliminate certain costs to outsourcing.”…
Remember too from what I posted earlier, the $7.8 million Debt Forgiveness was not a debt that came from operations and will not be a recurring debt. It was a one-time debt elimination deal which is really what catapulted SFNN into a profitable state so fast. This accelerated profitability by two or three quarters ahead of time. It explains it in the filing, but I had to be told how to interpret such.
Now from combining the two thoughts together through logical deduction, and using the basic formula to derive an EPS, this is how I derived what I think could closely mirror the upcoming 10Q we all so anxiously await:
Revenues – Expenses = Income
Income ÷ Outstanding Shares (OS) = EPS
So…
$3,800,000 (Revenues) – $950,000 (Expenses) = $2,850,000 (Income per Qtr)
Now here’s the tricky part to derive an EPS. I am confident that the OS is more than 301,565,417 shares. I did confirm that the Authorized Shares (AS) is still 500,000,000 shares which is a “very very very” positive thing. I believe the OS is somewhere under 400,000,000 shares, but unsure of the amount. Because of such, I will use an OS of 400,000,000 shares for a worse case scenario below. So…
$2,850,000 (Income) ÷ 400,000,000 (OS) = .007125 EPS per Qtr
Considering if all growth remains stable at such point for the year, then…
.007125 x 4 Qtrs = .0285 EPS per year
That would mean that given today’s P/E Ratio from where I derived such above:
.0285 EPS x 16.5 P/E Ratio = .47 per share
This is why some people are figuring that SFNN should fundamentally be trading at much higher prices than where it’s at now. To take an even greater conservative view, consider me being only half correct. Then I think maybe you can see why I think SFNN should be at much higher levels too.
I am just a shareholder doing nothing more than sharing thoughts. There is a good chance that what I post could turn out to be incorrect for the worse. This is still the penny stock world, but I like our chances considering SFNN is an OTCBB stock instead of a pink sheets stock. I only shared my thoughts to explain my rational as to how I see SFNN as being significantly undervalued at these levels. It is up to the company to confirm any positive info or occurrences as official substance. I hope this helps though.
v/r
Sterling
Gambler50569, in my previous post...
The word "reach" should have been "reached" and most importantly, the Debt Forgiveness was for "$7.8" million and not "$7.5" million. Heck, my bad.
v/r
Sterling
Gambler50569, about the $7.5 Mil Debt Forgiveness...
I did manage to get through to someone from SFNN. I spoke to someone on their legal team. The $7.5 million of Debt Forgiveness will not be a recurring debt. It was a one-time debt elimination deal which is really what catapulted SFNN into a profitable state so fast.
They would have reach such profitable state eventually, but because of not having to pay the $7.5 million, it created SFNN profitable state about two to three quarters earlier. The fundamental growth of SFNN has been accelerated because of such.
The $7.5 million Debt Forgiveness was not a debt that came from operations. I think this is what people are not seeing. Heck, I didn't either. I think people will see this within SFNN's next filing when it is not present.
This means that those extra Revenues that would of been applied towards Expenses will now be applied towards increasing the bottom line profits that much more. IMHO
v/r
Sterling
TheExpert...
Thanks for your Technical Analysis on SFNN. I use to be a big fan of TA, but have mixed feelings about using TA on certain penny stocks; preferably pink sheets. Since SFNN is an OTCBB stock, it's a little different as more known variables exist.
I've learned though that it doesn't matter what I think, but rather what the market thinks. I say this because many wise investors live and die by TA. A friend of mines when I was in Japan years proved me wrong by showing me that TA works. That's when I realized that it's another tool that all should have in their toolbox to at least be ready to use if ever needed. Thanks again!
v/r
Sterling
With the MPWE (OTCBB) SB-2 just filed...
It looks as though MPWE confirmed that the raising of the $10 million as mentioned in their 10K previously filed and this SB-2 recently filed will actually be going through some Investment Bankers. I’m guessing that maybe through some type of loan or something, but not through the dilution of $10 million worth of shares. I think this is what scared a few people with MPWE.
If their intentions were to sell shares to raise the $10 million, I think they would have indicated such within this SB-2 filing or a Form S-8 would have been filed. I think this is a positive thing which shows that they have a plan that will not dilute the stock to oblivion as we see with other penny stocks. They only mention the issuing of 52,511,728 shares and the conversion for $165,000.
As for the conversion for the $165,000 within the SB-2, it states...
"Conversion Limitation. The Investors have contractually agreed to restrict their ability to convert the Notes and receive shares of our common stock such that the number of shares of our common stock held by them and their affiliates after such conversion does not exceed 4.99% of the then issued and outstanding shares of our common stock."
This is also another positive sign that they are not going to allow significant dilution to enter. The issuing of shares to dilute their stock by 52,511,728 shares reads below:
"The number of shares being registered for the conversion of the callable secured convertible notes is 52,511,728 representing approximately 1/3 of our 157,535,186 non-affiliate outstanding common shares issued and outstanding as of March 30, 2007."
Since from when I first spoke to their Transfer Agent, I was told that their OS was 182 million in which at such time some of the 52,511,728 shares had already been released. So I take such to mean that the above numbers should be added to get their new OS of 52,511,728 + 157,535,186 = 210,046,914 (OS)
Now 210,046,914 shares is an awesome amount of shares for an OS after it has been diluted. I say "after" because if you look at the volume from when those 52,511,728 shares were issued back on 30 Mar 07, it looks like they have been put into the market already at much higher prices from what was originally agreed.
Now taking from the filing the “Conversion Limitation” of allowance of only 4.99% of the then issued and outstanding shares of MPWE’s common stock, I don’t think MPWE will be experiencing any significant dilution problem. If I am viewing these things wrong, please feel free to correct me.
The ball is now in their court for their recently hired IR Firm to market MPWE’s product/business/service and for MPWE to launch their product/business/service as expected to generate the Revenues as they mentioned. According to their 10K and SB-2 recently filed, things should start getting very interesting for the better very soon. I still believe in the thoughts I shared in the post below:
http://www.investorshub.com/boards/read_msg.asp?message_id=18867790
As MPWE still sleeps for now, I think MPWE will prove to be a very solid trade and investment in the near future. IMHO
v/r
Sterling
An old investor, very wise thoughts!(EOM)
Lucyinthesky...
Hello Lucyinthesky! I hope all have been well with you. SFNN is very undervalued at these levels. I think once investors due the math for current, potential, and future valuations, they will see that SFNN should be fundamentally trading at levels much higher than this. IMHO
I just researched the PE ratio for the Industry it's in and it's at 15.80.
v/r
Sterling
Stockdummy10...
Heck, sometimes I feel like your name! LOL
It caught me by surprise when I picked mines up from the mail lady. I had no idea what they heck it was. I was numb for a second in trying to figure why would I be doing this if I was Megas.
PS-Thanks for reminding me of some other responses that I must go to generate.
v/r
Sterling
To Fix BCIT and Naked Shorted Stocks...
If Megas really is trying to get this to where it turns into a major hearing with 1,000+ BCIT fans there after being subpoenaed, then I think the SEC should be able to see that BCIT and its shareholders were wronged after everything is properly laid out. The SEC should be able to see who the guilty parties are.
Then the judge should allow for an agreed resolution from all parties to exist. The judge should make the guilty parties an offer they can’t refuse. One where the SEC judge grants BCIT the right to issue whatever amount of shares needed to cover the naked shorted or fictitious positions.
Then the judge informs the guilty parties that they have X-amount of days to buy these false shares from the open market to give back to BCIT so that BCIT can receive and retire these shares back to their Treasury to get BCIT back to their original share structure before any of the false shares were released into the market.
The SEC judge also warns to the guilty parties that if they do not conform, the matter would be turned over to the Department of Justice (DOJ). Then this matter would no longer be considered a “civil” matter where fees are involved, but instead a “criminal” matter where jail time will be given for not conforming.
I know there’s a little wishful thinking in there, but this could be an example for many other companies to do if this is actually the plan. IMHO
v/r
Sterling
Latestart...
I think you might be correct "subliminally" in Megas' intent for who the company is suing, but I think that Janice is correct "actually" since it was the individuals/accounts that received the Summons and not the system.
I think whoever the company is suing might not matter in the big picture if Megas' really is trying to create an official battlefield to be able to officially explain the situation. IMHO
v/r
Sterling
Retireat40, I agree 100%!(EOM)
Janice...
Not anymore! I've been home for a little over a week or so. I'm happy as heck my one year is up over there!
v/r
Sterling
Latestart...
Thanks, I'll consider that. Much of what I posted probably was already mentioned and discussed. I'm not sure as I was a little lazy to not go back and read many of the posts to see what was discussed already.
v/r
Sterling
Hello Janice!I hope you've been fine!(EOM)
With the BCIT Summons…
It appears that Megas has forgotten something that I mentioned to all of you the last time I was battling the good and the bad in this forum… we are all on the same TEAM! Or wait, maybe he hasn’t!
One would have to think that he has forgotten such because he is going after us as if we are the enemies. I don’t think many if any of us shareholders listed on that Summons delivered or accepted delivery of BCIT false certificates to sell them in Oklahoma, or anywhere for that matter. Heck, I never even been or had anything to do with Oklahoma. Well, maybe Megas knows that we are not the enemies, but must paint that picture to be able to create an “official” battlefield to capture the enemies.
Let’s see…
** It would appear that Megas is getting us mixed up and thinks we are the Market Makers… or the DTC… or a brokerage company… because we BCIT shareholders have no authority to place such false certificates into our accounts especially if we never received any of these false certificates since our shares were obtained through regular/normal electronic purchasing processes in which we have no authority for delivery.
** Megas is accusing 1,272 shareholders/accounts for having the same regulatory authority to generate transactions for actually placing BCIT false certificates into 1,272 different accounts.
** Megas is also stating that he has proof that 1,272 individuals/accounts had accepted BCIT false certificates and knowingly, placed them into our accounts.
The only thing I can think of is that Megas is doing this knowing that out of the 1,272 people/accounts, many will not respond which would force a subpoena to be generated for all parties whom did not respond to come to a court hearing to be heard to explain their stance. This is especially after they realize they are not going to get a minimum of $10,000 per individual/account for damages that did not occur from the Defendants.
Looking at it from that perspective, having over 1,000+ shareholders show up at a hearing to explain how they were wrongfully accuse will get the matter in front of a SEC judge to hear ALL of the facts from all parties. This could be what Megas is doing.
** Maybe this is the only way that he could get this whole fiasco into a legitimate court hearing to be heard by the regulatory authorities in front of 1,000+ Defendants which would actually be there providing indirect support as Witnesses.
** It seems like some easy exoneration could take place for the 1,272 BCIT shareholders/accounts by simply proving that your BCIT shares are sitting in your brokerage account(s) because of an electronic transaction done in good faith between you and your brokerage company and not by your brokerage company receiving false certificates from you to be deposited.
** Now if it is any other guilty parties within the 1,272 who did receive stock certificates from Mario Pino, then they will be revealed just as easy too. This could be what Megas is trying to find out too to have revealed right there in front of the SEC authorities.
** A part of me thinks none of us whom are innocent should respond. Look at it like this, what’s stopping anybody from generating such a blatantly false accusation to so many people? Is it fair to have to be out of money for legal fees to defend yourself when the accusation is so blatantly incorrect and wrong?
Something else to consider, on the single/separate sheet that came with our Summons packet, the “Date of Service” for the Summons and the “Signature of person serving the Summons” are blank.
Maybe this is the loophole Megas generated to protect us knowing we shareholders are innocent. After all, on that same sheet it states to respond to “the Court of the address above” (in which there is no full address for the Court) within 20 days of the after the service of this Summons. Since there is no service date on the sheet, we theoretically will never reach the 20 day expiration date.
It doesn’t seem like the courts would honor pressing the case for damages against the 1,272 shareholders/accounts after all the facts have been brought out. What if every stock in the market that has been naked shorted took these actions whether their stock was actually naked shorted or not actually naked shorted? That would mean that darn near everyone in the market would need to spend funds getting a lawyer to defend themselves against something that is so blatantly incorrect.
Now if BCIT is as serious about this as some might think, then I think maybe we should consider uniting under a single lawyer and file a countersuit for such blatantly incorrect and wrongful accusation. Maybe we should sit tight and not respond to let things unfold to see what’s really going on.
It’s my personal nature to be “proactive” instead of being “reactive” so I’m probably going to write a letter responding to their parties explaining my innocence since we don’t really know what is happening. I think those not responding will do well because of what will be done from the masses. Enough will do something to generate what I really think Megas is trying to do. Please chime in and share your thoughts.
PS -- For those of you still hating me from our last debates within this forum, if you could remove your emotions for a while and get back to hating me later instead of now for the sake of discussing BCIT, I would greatly appreciate it.
v/r
Sterling
MPWE, from its 10K filed on 2 Apr 07…
Below are some things that caught my attention when I researched and scanned the MPWE 10K…
http://www.pinksheets.com/quote/print_filings.jsp?url=%2Fredirect.asp%3Ffilename%3D0001377742%252D07...
(Pay particular attention to what’s in bold below.)
** Trades on the OTCBB with consistent SEC filings.
** The Outstanding Shares (OS) = 182,424,688 Shares (From TA)
** The Authorized Shares (AS) = 250,000,000 Shares (From TA)
** It’s Market Capital at its opening price of .0008 per share today = .0008 x 182,424,688 = $145,939
** Working prototype of eDOORWAYS ready for demonstration in June, 2007
** eDOORWAYS ready to serve the public to generate Revenues in August, 2007
** Private investors issued seven year warrants to purchase 30,000,000 common shares at an exercise price of $0.10 per share.
~ In addition, M Power periodically issues warrants to purchase common stock as an incentive, as compensation for services or settlement of debt to officers, directors, employees, and consultants.
~ M Power has warrants outstanding to purchase 46,666,667 shares that were issued in connection with financing transactions. All of these warrants are currently exercisable. These warrants have an exercise price of $0.10 and expire in 2009.
** This means that they feel that .10 cents is a discount and fair price to pay for shares of MPWE at some point in the future considering MPWE implement their business plan as it appears they are doing.
** This means that for MPWE to give their employees warrants to purchase shares at .10 per share for their services rendered is a huge sign of support that their employees must be very confident in the future of MPWE. The best thing to do to help see the possible magnitude of something like this is to ask yourself: What would you have to know to feel confident that such a deal to purchase shares at .10 per share was presented to you as a discount?
~ Equity compensation plans approved by security holders to exercise options to purchase 39,321,747 at .2402 per share.
** Mr. Kimmons, the CEO, new employment agreement, since 3 years after 1 Feb 03, automatically renews at the end of each term for consecutive one-year terms, provides for an annual base compensation of $240,000 and non-qualified stock options to purchase 3,000,000 shares of Common Stock under the Company's 2003 Stock Option Plan, at a purchase price of $0.18 per share.
** Mr. Kimmon has part of his salary, $20,000 of which was paid through the issuance of warrants to acquire 80,000 shares of common stock exercisable at $0.35 per share until December 31, 2007.
** Mr. Meador, a member of the Board of Directors, received a warrant on December 31, 2005 to purchase up to 300,000 shares of unregistered common stock exercisable at $0.08 per share until December 31, 2011. (a little DD on Mr. Meador)
http://www.zoominfo.com/search/PersonDetail.aspx?PersonID=338397227
** Mr. Kimmons received a warrant to purchase up to 2,600 shares at the exercise price of $70.00 per share exercisable until December 31, 2007, which represented part of Mr. Kimmons' compensation for 2002; (b) a warrant to purchase up to 400 shares at the exercise price of $70.00 per share exercisable until December 31, 2007; and (c) an option to purchase up to 15,000 shares at the exercise price of $36.00 per share.
** As for their IR Firm, the contract with Booke and Company Inc. has recently been extended an additional 6 months at the rate of $6,000 per month. According to the 10K, this new period would begin 1 Apr 07. Booke will perform services for MPWE in all areas generally considered to be investor relations.
**Since we have not seen any announcements of developments and other news through Newswire, Businesswire, etc., I’m thinking they re-hired them because the time must be near for them to begin their marketing campaign or they would have allowed their elapsed time to pass.
~ MPWE was incorporated in Delaware.
** Financed from private investors $2,000,000 in which repayment will be in the form of secured convertible debentures in which the earliest maturity date for conversion into common shares is 18 Apr 09 with a 6 percent interest rate.
** Secure short-term financing from Investment Bankers of at least $10 million.
Now this is kind of tricky because you got to wonder how they are planning on doing this. First understand that any stock you buy is eventually going to sell shares into the market to finance their product, service, or business. That’s why any stock trades in the market. The key is to know and understand the “how, what, and when” and at what prices that this selling will more than likely take place. Those are some of the key unknown variables especially within the pink sheets. Since MPWE has a consistent history of filing with the SEC and trades on the OTCBB, their transparency is more believable than your average pink sheet stock.
* The $10 million in financing is a large amount if they are planning on doing this through Convertible Debentures (CDs). The good news is that if they do use CDs to finance, then you know that the conversion date for those CDs would probably be no earlier than 2009 which would give any investor more than enough time to see if their business plan will be implemented. However, as another piece of thought, read and consider the piece below from the MPWE 10K verbatim as to where the $10 million is coming from…
M Power is working with investment bankers to raise $10,000,000 in 2007 to facilitate the implementation of our business plan for the next 12 months. Our business plan assumes that the $10,000,000 of funding will be received by mid-year, 2007. In summary, this funding will be used for:
* $1,000,000 in computer purchases and facility construction
* $3,000,000 to retire existing debt
* $6,000,000 as working capital and to launch the product successfully into the marketplace
Revenues:
Over the next 12 months, M Power anticipates generating a minimum of $2,500,000 in revenues from our e-Commerce platform, advertising , distance learning, consultative services and marketing services.
** The above leads me to think that they will receive some funds/loan from a bank very soon and will be allowed to pay the $10 million back in installments over a period of time as they generate Revenue from them proving their business plan to the bank to receive their support. Also, although I’m not sure just yet how they are going to obtain the $10 million, $3,000,000 of that will be used to retire their debt to make them debt free. I do not think that we will see any kind of “significant” to “if any” dilution from MPWE to implement their business plan.
From checking out the MPWE team of professionals, which is an award-winning Smart One teaching technology and marketing expertise team, I can see how raising $10 million is very doable while still obtaining the necessary support for the share price to continue appreciating:
~ Carmel Consulting - a seasoned Silicon Valley development firm specializing in developing collaborative web platforms. Check out their clients list.
http://www.digitalcarmel.net/clients.html
~ Technical Objectives, Inc. - an artificial intelligence scientist from AT&T research labs; a proven computer based training expert.
~ Marty Lobkowitz - the former VP Mktg. for Office Depot; a channel marketing consultant to top retailers including Home Depot, Comp USA, Best Buy and others.
~ Graj & Gustavsen - highly touted NYC branding consultants (branders of Oshkosh; Tommy Hilfiger; Target; many others). Click on portfolio and click on clients to see who all they support.
http://ggny.com/flash/index.html
~ Telcordia - an innovative NJ based government contractor specializing in advanced software technology and network design. Check out their current 31 partners to include Nokia, IBM, HP, SUN, Swisscom IT, and more.
http://www.telcordia.com/partners/profiles/
Please understand that the above thoughts are some things that I had gotten from a quick scan of condensing 40 pages of information down to 4 pages. Please read the 10K yourself and make your own investing decision based on what you gather from your due diligence (DD). Believe me, I’ve had my share of seeing things correctly and incorrectly and I’m sure I will see things on each side again too. I have only shared why I see MPWE as a good trading and investing opportunity as a solid penny stock with some nice potential that’s on the OTCBB for a change with a decent share structure and not the pink sheets.
v/r
Sterling
Investwise4858, about the share structure...
I think your OS number is correct compared to the number I posted within my forum. I think when I called their TA the other day, the lady was a little tired as she just rounded the number off. Thanks for posting your OS number.
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Fingers, about the eDoorways product...
I agree with you 100%. I'm breaking down the 10K into pieces. I'll post a few of those pieces that really caught my attention here to maybe help some people see MPWE's potential. This seems to be a real OTCBB company at its bottom.
Their eDoorways product could be very useful for everyone. Here is one piece I got from the 10K verbatim to explain how it works...
...an example of how the eDOORWAYS portal might work, imagine that your hot water heater in your home is not working correctly. Unfortunately, troubleshooting malfunctioning hot water heaters is not your area of expertise. To garner the information you need, you enter the eDOORWAYS web portal on your laptop computer. In eDOORWAYS , you are escorted to the Home Improvement lifestyle area, where subject matter experts representing home improvement product and service vendors offer to lend a hand. You select a local vendor who introduces John, the hot water heater troubleshooting expert. With John's knowledgeable guidance and support, you gain the expertise necessary to diagnose the nature of the problem - a worn out coil. John offers to have a new one sent over immediately from their store down the street, or they can have it waiting for you to pick up. However, you decide that maybe its time for a new and larger 75 gallon heater. John points you to their water heater manufacturer's representative, who assists you in making a purchase choice. Shortly thereafter, the new heater is on its way to your home.
While this is an example of how eDOORWAYS might help solve a home improvement problem, the concept of "lending a helping expert hand" to assist you in your moment of need is potentially applicable to all lifestyles and avocations. In each case, the service will be entirely free to consumers - we will be paid by vendors in the form of a percentage of each sales transaction.
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Cargo_hauler, MPWE=No Brainer!Read 10K!(EOM)
Old Investor...
Your thoughts are very logical, cut and dry. My thoughts are mutual. We are on DANS clock and not DANS being on our clock. I am willing to wait as long as it will take.
I feel comfortable in thinking that it might be any day under another 30 days or another filing would have been done already to indicate more time requested for the DANS name change as was originally filed. I'm guessing another week or two at most.
I'm sure DANS understand that since they have waited this long, another week or two won't matter to make sure things are done correctly.
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Jtomm, about your thoughts...
I am not telling you that the way I worded the $15 million was correct. You were correct in how you mentioned it from the Conference Call when I went back to listen to it, but I got that piece of information from the ICON PR below in which I think I was correct in how I mentioned it from the ICON PR below:
http://biz.yahoo.com/ap/070312/iconix_acquisition.html?.v=1
My apology if I had interpreted incorrectly, but I think you can see why from how it is worded in the ICON PR link above. I’m thinking your interpretation from the Conference Call is probably correct, but still it works out for the same consideration when you do the math as ICON explained the amounts as Royalty Revenues in the Conference Call. Royalty Revenues are still Revenues as far as I am concerned and will be reflected within the financials as such to go towards increasing the profit margin having a better EPS considering me believing that DANS is profitable.
The Expenses we do not know, but I believe and I am willing to chance that their Expenses have been drastically reduced and that DANS is profitable from my DD. In the DANS PR below, Donald Schupak, Danskin's Chairman, said that the deal with ICON will create opportunities to increase shareholder value. To increase shareholder value, the profit margin has to increase usually by increasing Revenues and reducing Expenses. Now that the deal with ICON has been closed, I think such increasing of shareholder value have been put in place.
http://biz.yahoo.com/prnews/070222/nyth093.html?.v=87
In the ICON 8K below it’s stated that ICON will assume certain liabilities:
http://biz.yahoo.com/e/070227/icon8-k.html
As far as my assumptions, until we have certain facts officially released, that's all I can do. That’s the norm for most penny stocks. Still, enough facts have been brought out to make me feel very comfortable with my risk in DANS.
As for the preferred shares, they did issue more preferred shares as I had mentioned. They increased them to 7,190 shares. I think they did so for some positive reasons, but ICON and DANS must do the further explaining to confirm my thoughts.
I do understand your concern about referencing old filings, but I was told by both ICON and DANS to go to those old filings for current information. I didn’t like being told that because of how old the filings were, but I felt better after I started going through them.
Try to block out the incorrect reading of the $15 million from the post you were referring and re-read the post below again. If your feelings are the same, I would understand.
http://www.investorshub.com/boards/read_msg.asp?message_id=18651958
My bottom line thought was that with DANS being at least a $60 million company, I’m risking that DANS is very profitable because of a huge reduction in their Expenses due to the support from ICON.
Please see my thoughts I share as speculative in nature and not as a recommendation or persuasion to buy or sell. I only share with my posts what I see as a positive investing/trading opportunity and why. If I am wrong, I have no problem in standing corrected.
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Jtomm, to better put DANS…
To better put DANS in perspective, let me explain it like this. I believe this would word things better. Thanks for sharing your thoughts. My beliefs about DANS remain the same regardless to how the $15 million is considered. Hopefully this is the proper order for consideration.
The $15 million in Royalty Revenues to ICON from DANS is 20% of the total amount made in Royalty Revenues since ICON stated that DANS is a $60 million company ($60 million + $15 million=$75 million).
This means that out of the $75 million in Royalty Revenues made by DANS, $15 million goes to ICON and the other $60 million must go to DANS since ICON stated that DANS is a $60 million company. My apology if it causes any confusion for you. Let me explain why some other points should be considered too.
One point I was trying to make was that with DANS generating at least $60 million per year in Royalty Revenues (some have confirmation of $100 million per year in Revenues) and that from my DD, their profit margin should bring greater than the $17,500,000 that was used in the ibox.
Another point I was trying to make was about the $4.00 bid requirement being maintained for 90 days for initial listing NASDAQ stocks. Regardless to how we do the numbers and to what's the actual amount of Revenues remaining as Income after the deduction of Expenses, it will have to be high enough for DANS to fundamentally support submission of a NASDAQ application. Now we must wait to see if a NASDAQ application will be submitted, but from my due diligence (DD), I think that DANS is preparing for such from reading their old filings.
Within the DANS old filings that I have been referring to in my previous posts, the preferred shares of DANS were issued under the presumption that DANS was ready to be listed on the NASDAQ as stated in the DANS old filings. DANS had 18 calendar months after the fifth anniversary of the date of issue of their preferred shares to get listed on the NASDAQ or they would be required to pay dividends accrued at a rate of 14% per year on those preferred shares. The payments are only in cash which was good to not allow for any dilution. These preferred shares are also referred to as Series E Stock in the filings.
The effective date for being 18 calendar months after the fifth anniversary of the date of issuance for the preferred shares is June 8, 2001. This means that since June 8, 2001, DANS have been paying 14% in dividends on the preferred shares. June 8, 2001 is also a reset date as mentioned in the filings too which leads me to think that the increase in preferred shares from 3,042 to 7,190 is due to the fact that DANS is now ready to go to the NASDAQ to further solidify why the initial preferred shares were issued.
The goal was for the preferred shareholders to be put in a position to where they would want to provide support for DANS to where the growth of DANS would be instrumental for the benefit of all parties. This is why the preferred shares deal was set up under a reset provision to where the "Reset Period" was kicked in at the 18 month anniversary of the date of issuance of the preferred shares. It was also filed that the Conversion Price of the preferred shares is .31 per share.
However, it was filed too that if the average closing price of the Common Stock for the twenty day period prior to the “Reset Period” (the Market Price) is less than the Conversion Price of .31 per share, then the Conversion Price will be reset to the Market Price. It was filed that during the Reset Period, the Market Price of DANS was .18 Per Share which means that the official bottom price for shares in DANS is .18 per share. Because of this reset provision, the conversion rate for the preferred shares were adjusted from 16,129 shares of Common Stock to 27,778 shares of Common Stock for each preferred share converted.
We can expect for the preferred shares to not get converted. Here’s why. At least 2,484 preferred shares would need to be kept to ensure a controlling interest is always maintained. With the increase in preferred shares to 7,190 preferred shares, that leaves a difference of 4,706 preferred shares available to logically convert.
When you convert 4,706 preferred shares x 27,778 Common Stock = 130,723,268 Common Stock
Consider now 130,723,268 shares x .18 Conversion Price = $23,530,188.24
Now keep in mind that the $23,530,188.24 would be a one-time award. Now keep in mind that if DANS has been making $60 to $100 million per year, then the preferred shares have been receiving a 14% dividend since June 8, 2001 since DANS did not get listed on the NASDAQ 18 calendar months after the fifth anniversary of the date of issue of their preferred shares (June 8, 2001).
This means that the preferred shares have been getting paid accrued dividends somewhere in the amount of $8.4 to $14 million per year since June 8, 2001. That far exceeds getting paid $23,530,188.24 once. This is why we won’t have to ever worry about the preferred shares getting converted and also why DANS has more of a vested interest to live up to its deal of getting on the NASDAQ to complete their terms as stated in their previous filings with the SEC. These are only my thoughts as to how I see things why DANS might have more potential than your average penny stock.
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Balamidas...
Sorry for taking so long to respond. This message almost got by me as I have been a little busy since my recent return from Iraq. My one year tour is up.
To answer your question, I am guessing that with the CUSIP# and name change that an accounting of shares should take place. We have seen in the past though when nothing had happen after certain stocks made such changes. This could have been because of many different reasons.
No matter how much I like CHNW, the increase in the Authorized Shares (AS) was not a positive thing for them to do as it normally signifies dilution no matter what a company says. Although we believe there is a naked short in CHNW, maybe there isn't if there is no affect from the changes. We have to keep it real and consider such an increase in the AS if the price does not reflect a covering after such changes has been made. This is why transparency in a stock is very important.
However, other things could take place if no dumping of shares transpires. More fictitious shares could be created as an inventory within the custodian of accounts within the brokerage companies and the MMs to mask the naked short positions. This would be like a covering of the truth, but this is often done with pink sheet stocks within a League higher than what your average shareholder like you or I deal with.
If CHNW could get out of the pink sheets and further prove its legitimacy with some solid valuation or potential growth or significant support, then the naked shorting should cease. A covering should then take place to remove the masking of shares created to hide the naked short position. This is also why you hear people talk about issuing a cash dividend to force a covering of a naked short position; because the MMs (or guilty party) would be more willing to create fictitious shares to hide a naked short position than to pay cash for each legit and illegit position since you can’t fictitiously create cash.
Again, all of this is assuming that there actually is a naked short position in CHNW. Still, the actual inventory is what’s really important in my opinion. Once the inventory of shares reaches zero for a stock, it should trade as if there is a naked short even if it never was one. There are many more thoughts that could be discussed as I will reserve for maybe later until CHNW confirms the direction it really wants to head as a company. Getting out of the pink sheets to have regular transparency would be a huge step in the right direction to confirm how serious they are about their business plan. I do believe in CHNW, but it’s ultimately up to them.
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1cashkill, thanks for sharing your thoughts & info.(EOM)
Jtomm, to answer your DANS questions…
The information in the ibox was generated by me to explain the potential I believe exists given the occurrences between DANS and ICON. The $3.00 per share was derived from what I believed to be a very conservative guess from a .25 EPS given if DANS made a final Income amount of $17,500,000 as I used in the ibox. Still, I believe to be a fairly conservative amount of recurring annual profit for DANS. Let me further explain why.
The bulk of DANS’ Expenses were eliminated or absorbed by ICON as stated by ICON. DANS will make $15 million in royalties alone from ICON as stated by ICON. DANS is generating $60 million in Revenues a year as stated by ICON. DANS has their products in 4000 Walmart stores as stated by ICON (and many other stores to include the Target stores). DANS has the license to sell wholesale as stated by ICON. DANS’ line of products will grow hence the reason for the name change; to reflect and capture expansion as I explained a little in the link below:
http://www.investorshub.com/boards/read_msg.asp?message_id=18460243
This leaves me to think DANS’ bottom line amount for Income to be divided by an OS in the area of 69 million shares would reflect from a fundamentally generated equation that $3.00 per share is very conservative.
If the OS was going to be increased, it would have happened already, but instead, ICON filed an 8K with the SEC stating that the OS is the same at nearly 69 million shares and that the preferred shares were increased in which I think were for going to the NASDAQ reasons as I posted in the links below as stated in the DANS old SEC filings that I was told by the company to reference:
http://www.investorshub.com/boards/read_msg.asp?message_id=18205345
http://www.investorshub.com/boards/read_msg.asp?message_id=18460243
The “p/e” that you are referring to is the “Price to Earnings” multiple that exists as a growth rate for your OTCBB and higher stocks trading in their particular market. This growth rate or multiple or “p/e” ratio is used to determine how a stock should trade given its growth or Earnings Per Share (EPS) from supply and demand variables and principles already established for that particular market. There is no way around the existence of this fundamental consideration.
DANS would probably trade within either the “Textile - Apparel Clothing” or the “Textile - Apparel Footwear & Accessories” market as I had indicated in the Yahoo link within the post/link below:
http://www.investorshub.com/boards/read_msg.asp?message_id=17497702
As you can see, using 12 as P/E ratio is very very conservative given its support and the growth for the stocks trading in its market at 20+ as reflected in the above link. This is a supply and demand principle that neither you nor I created for the DANS market, but it fundamentally exists. With the marketing strategy that I suspect that ICON will implement with DANS, I see DANS reaching at or near its market’s growth rate or P/E ratio as did the other stocks within its market to generate that rate.
Again, if this was a pink sheet stock providing support to another pink sheet stock then I would consider the risks to be much greater. However, with the support coming from ICON which is a NASDAQ stock trading near or over $20.00+ per share, I think we are dealing with some experts within their industry that knows what they are doing to make both ICON and DANS succeed. These are only my opinions as to how I see things. I hope this helps a little more.
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Stanly01...
I suspected that, but thanks again for further confirmation!
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Stanley01, from your info...
This means that if Insiders own at least 80% of the OS with the OS being 69 million, then there is only 13.8 million shares out there in the Float for the public to buy. This could get very interesting very fast. IMHO
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Stanley01, thanks for sharing!(EOM)
Churak, to further add about DANS…
To further add, with the name change happening around the 9 Apr 07 time frame and the confirmation by DANS and ICON that DANS is not going anywhere, the name change is a huge sign that DANS is heading in the “same” and “additional” directions for what they are going to be offering to the public with a newly added business, product, or service or ICON would have allowed the name to remain the same. I'm guessing they are going to want to hit the market with a huge positive impact and not release significant news until the new name has taken place.
I'm thinking that with the Revenues and Profits that I suspect DANS to be making, ICON is doing this to roll DANS into one of their subsidiaries as a NASDAQ trading entity to further enhance their financials/valuation. Personally, I think that there is too much money and support from ICON floating around to be doing all of this for the OTCBB. ICON growing DANS will be like growing ICON twice and paying themselves twice from the growth of both.
I still think that once the time is right, DANS will begin to be bought by some of the same and different Institutions that support ICON. We won’t see it just yet because it could be considered Insider trading which too is why DANS and ICON employees and Insiders have not been buying shares. The Insiders rewarded themselves already through the legal way of issuing preferred shares to where they can’t be accused of manipulating the share price of DANS.
About going private; the option of going private leads me to think that DANS is considering going private due to a phone call I had with the company a few weeks back. I think that DANS is profitable and have increased its preferred shares amount to give key players a 51% controlling interest in DANS to have voting rights. This is why we were "NOT" asked if we wanted to sell the DANS intellectual property to ICON, it was approved by the majority vote from the increase and/or designation of the preferred shares that were given special voting rights. Reference the link within the link below about preferred shares:
http://www.investorshub.com/boards/read_msg.asp?message_id=18205345
I think ICON and DANS implemented a "poison pill" technique to write what is called a "blank check" to assign the 51% majority stake to Insiders. This is why the preferred was increased as per the old DANS filing as I was told to reference for information on DANS and what is transpiring.
http://www.akllp.com/Page.aspx?Doc_ID=2217
One could reference the link above about going private. It simply means no longer being registered as a public company with the SEC and no longer being actively traded. Since DANS has less than 250 shareholders, as I was told, it probably wouldn't cost them much to buy out the remaining shares in the Float. It appears that DANS is positioning itself to go to the NASDAQ in my opinion which would require them to maintain a minimum bid price of $4.00 per share for 90 days.
This is why I think we could see a Tender Offer in the area of the $3.00 price range. They know the offer has to be somewhere fair for shareholders since the deal will be scrutinized by the SEC who will be given the fair value of DANS. I think DANS is going to want to act fast knowing that the DANS potential will be well over $4.00 per share. If they wait too long, the SEC will make them pay shareholders the fair value of DANS under their scrutiny.
I think at least 75% to 80% of the DANS outstanding shares (OS) are owned by Insiders, but we do at least know for fact that the Insiders own at least 51% of the OS. This means that making a Tender Offer would in essence be like them paying themselves too.
It appears that ICON could be teaming up with DANS as their money source to buy the DANS shares held by the public soon after the name change… or … if DANS go straight NASDAQ, then I expect for DANS to reveal valuation that would publicly show why Institutional buying justifies at least a $4.00 bid for 90 days.
I don’t remember the ticker, but another stock I know of first went OTCBB for about 2 to 3 weeks and then went NASDAQ. Either way, we should do well with DANS in my opinion.
For more info about going private, these two links might help out a bit more:
http://www.fatpitchfinancials.com/188/phases-of-going-private-transactions/
http://www.altassets.com/knowledgebank/learningcurve/2003/nz2621.php
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Churak, about DANS going NASDAQ thoughts...
Please read all of the post/link below:
http://www.investorshub.com/boards/read_msg.asp?message_id=18205345
Hopefully that will explain why I think that DANS will be going NASDAQ (or going private with making us a tender offer before going NASDAQ).
I'll talk about them both as soon as I am available, but I have only 4 minutes remaining on the computer I am using at a certain location before they kick me off (HECK!).
I will try to come back when this particular location is not so crowded. Hopefully that post helps.
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Surfkast, about your thoughts...
My thoughts are very mutual. I think DANS have the potential you mentioned and more. From reading through the ICON and DANS filings, it looks like DANS will be going to the NASDAQ as stated in their filings or making us a Tender Offer for a few dollars to first buy us out then come back public on the NASDAQ.
There are a lot of wise investors within these forums and I am very surprised many have not seen this yet (unless it’s me just seeing things). It appears that there's nothing to speculate about because it's all there. ICON is a legit company trading over $20.00+ per share on the NASDAQ providing support to the tune of millions. It's just a matter of time before the market absorbs what is happening here in my opinion. I am expecting to see the "ask" chase the "bid" in price where the "bid" will be higher than the "ask" for a bit.
Because of insider trading rules, I think that certain Institutions will be buying up huge positions in DANS once certain info is released. Believe me, I am sure they are aware of what’s happening with DANS. The $2.00 to $2.50 price range you mentioned would still be considered a discount in my opinion.
I think we are nearing that time for answers to be brought to the public for what's really happening. These are my opinions.
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Concerning my previous post...
The previous post was a rush job to share information about DANS. I will be back in a few days to discuss your thoughts.
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The DANS Future to Consider…
From doing my DD, I just have not seen a penny stock out there right now that has this kind of “legitimate” hidden potential from “legitimate” support through some already revealed due diligence (DD). Please share your thoughts on what I might not be seeing to “constructively” discuss DANS. DANS current price of .08 per share is an awesome deal in my opinion.
ICON has come on board to provide substantial support to DANS. ICON trades on the NASDAQ at $20.00+ per share. They have filed an 8K with the SEC stating the $70 million deal closed with DANS on 9 Mar 07.
** With the deal already confirmed by ICON as being completed and filed with the SEC, it is safe to assume that 51% of the outstanding shares (OS) are owned by the company/Insiders since proxies were not sent out for us shareholders to vote.
I was told by the company, when I called them, to reference DANS old filings as the place to go for information that’s available for all shareholders. So I referenced DANS last 10Q and also the ICON 8K filed with the SEC. Below are the links and the info I retrieved about DANS:
DANS 10Q filed 12 Nov 02
http://www.sec.gov/Archives/edgar/data/889299/000091205702042023/0000912057-02-042023.txt
ICON 8K filed 15 Mar 07
(Date of earliest event reported is March 9, 2007)
http://www.nasdaq.com/asp/quotes_sec.asp?mode=&kind=&timeframe=&intraday=&charttype=...
From DANS 10Q and/or ICON 8K
** Per DANS 10Q and ICON 8K, DANS Outstanding Shares (OS) appears to be 68,946,537 shares.
Directly from the DANS 10Q verbatim…
In any such vote, each share of issued and outstanding Series E Stock shall entitle the holder thereof to one vote per share for each share of Common Stock that would be obtained upon conversion of all of the outstanding shares of Series E Stock held by such holder, rounded up to the next one-tenth of a share. …
… Until the fifth anniversary of the date of its issuance, the Series E Stock has a 9% annual dividend rate, provided that the Company may, at its sole option, pay a portion of such dividend, equal to up to 2% per annum, in shares of common stock of the Company; provided however, that the Company has an obligation, with respect to the holders of the Series E Stock, to cause the common stock of the Company to be listed on the Nasdaq Small Cap Market or the Nasdaq National Market as promptly as feasible following the issuance of the Series E Stock. If the Company does not achieve such listing within eighteen (18) calendar months following the issuance date of the Series E Stock, dividends shall accrue prospectively at a rate of 14% per annum, payable in cash only, until such time such listing is effected. Notwithstanding the foregoing, from and after the fifth anniversary of the date of issuance, dividends accrue on the Series E Stock at a rate of 14% per annum, payable only in cash. The Common Stock is not presently listed as required by the terms of the Series E Stock. Therefore effective June 8, 2001, dividends on the Series E Stock are accruing at a rate of 14% per annum. If the Series E Stock is converted, accumulated but unpaid dividends are payable in cash upon conversion. As such, the accumulated dividends have been recognized as a liability on the accompanying consolidated balance sheets.
** Per ICON 8K, the above means that DANS is being positioned to go to the NASDAQ Small Cap or the NASDAQ National Market which is mainly why the Preferred Shares for DANS has increased to 7,190 shares of Preferred Stock (in my opinion) per the ICON 8K.
** I think too the Preferred Shares were given special voting rights to approve certain extraordinary events as stated in the link below. Sometimes corporations contain provisions in their charters that authorize the issuance of preferred stock with terms and conditions determined by the board of directors when issued. These are known as “blank check” preferred shares and are often used as a takeover defense. This is also what many know as the “poison pill.” See link below for reference:
http://en.wikipedia.org/wiki/Preferred_stock
** Per DANS 10Q, DANS also has a deal with the Target Stores too.
** Per ICON 8K, for ICON to have requested the financials over the past 3 years for DANS is a huge hint in my opinion to confirm that DANS has financially turned around to position itself for going to a higher market. That request for them was proof that they are worthy of their support.
** Per the ICON 8K, DANS Outstanding Shares structure is confirmed to be 68,946,537 shares.
** Per ICON 8K, three years worth of DANS financials were given to ICON which is usually a strong sign of meeting requirements to go to a higher exchange.
** Going NASDAQ means that they must maintain at least a $4.00 per share bid for at least 30 days as indicated in the NASDAQ link below:
http://www.nasdaq.com/about/nasdaq_listing_req_fees.pdf
Key Thoughts on DANS to Know
** Look at the dollar volume that goes into ICON (especially over the past few days). If you think that investors either don’t know or won’t know the new potential of DANS, then I think one might be misinterpreting some things.
** “As part of the transaction, Danskin will enter into a license agreement with Iconix to continue to operate the Danskin® wholesale business, including its freestanding retail stores and its internet merchant site, Danskin.com.” (Per PR below)
http://biz.yahoo.com/prnews/070222/nyth093.html?.v=87
Further illumination is explained in the post below by “Cautionupahead:”
http://www.investorshub.com/boards/read_msg.asp?message_id=17778066
** Dolans own a stake as well (cablevision)
http://www.investorshub.com/boards/read_msg.asp?message_id=17715161
http://www.investorshub.com/boards/read_msg.asp?message_id=17714907
** From a discussion with John A. Sarto, who the Executive Vice-President and Chief Financial Officer for DANS, I was kind of thinking that they might be trying to take DANS private, but from further reading their 10Q, I think they couls be planning on going to the NASDAQ.
** This is not a “buyout” so this means that DANS will continue to exist as a viable entity as stated in the ICON Conference Call, the ICON 8K, and the PRs.
The ICON Conference Call – What I Gathered:
http://biz.yahoo.com/cc/8/78178.html
http://www.iconixbrand.com/invest_cal.html
*** ICON stated that DANS will make $15 million off of the royalties this year.
*** ICON stated that the $15 million is 20% of the total amount made in royalties. From this piece of info, $15 million is 20% of $75 million. This could be considered that ICON will receive $75 million in royalties this year from their DANS products since it was stated that $15 million will go to DANS.
** ICON stated that DANS is a $60 million company. I couldn’t tell if the $15 million stated to be made from royalties was in addition to the $60 million or included within the $60 million.
*** DANS has their products in 4000 Walmart stores and many other stores.
*** DANS has the license to sell wholesale.
*** DANS line of products will grow by adding healthy lifestyle products such as nutrition bars, water, and also light work out equipment, and those products will be sold in Walmart also.
** I am guessing that there debt and liabilities have been reduced from what was said to have been stated in the Hoovers report. See both links below:
Reference Post from HOOVERS hinting about DANS debt:
http://www.investorshub.com/boards/read_msg.asp?message_id=17825898
My post from an email I got from Hoovers asking how up to date the Hoover update is:
http://www.investorshub.com/boards/read_msg.asp?message_id=17459731
** Because of those links with Hoovers. I think there is no debt. They are definitely cashflow positive in my opinion considering the $60 million in Revenues.
** If this was a pink sheets providing support in the millions to another pink sheets company, then much more reservation would be in order for consideration. Instead, this is a NASDAQ company (ICON), providing support in the millions and filing this support with the SEC.
DANS is not a MOMO play. I see DANS as an investment. It will move due to its already revealed market potential sooner or later in my opinion.
To all reading this post, please use the thoughts I shared only as a prelude to you doing your own research. Do your complete research of what I posted then please feel free to discuss your thoughts.
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Varok, a quick question...
Is CIVX a pink sheet stock or an OTCBB stock? Level II and the Quotes are showing CIVX as an OTCBB stock in the AlphaTrade data base. Before the halt, I thought it was a pink sheet stock.
I have not had the time to do much DD on it, but I will in the near future. Thanks for posting/bringing CIVX to my attention.
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Nsomniyak and 1cashkill...
It would not surprise me to have movement in DANS before any news is released. I think it's just a matter of time before others start to see why I think they have been extremely conservative/quiet. I think we have a few more days. I'll try to share some organized thoughts this weekend depending on a few things here at the job.
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Sterling
Cautionupahead...
I do think that you are correct in your thoughts. DANS will be either going private or going to a higher exchange. There is much more that is hidden that I think I have found to prove that.
Either going private or to a higher exchange means that DANS should be going much higher in the near future. I think that news won't matter and I explain that too.
I should have some time in the next few days to organize my thoughts to post. We still should have a few more days if I had to guess. Heck, I'm up to 7 pages of research. I will try to get it down to about 2 or 3 pages and make a few partial posts. I'm reading through some recent posts to make sure some of my research have not already been discussed in detail since my absence away from the board. I think DANS is going to be worth the wait. DANS is an investment and not a quick trade in my opinion.
v/r
Sterling
With DANS...
I think a tender offer is going to be made from doing some earlier DD to take DANS private. I will try to post some research I have, but I'm too tired to organize right now. DANS will be forced to give us current shareholders a fair value or legal authorities will get involved to make sure such happen. If I am correct in my thoughts, I think DANS would not mind doing so because it would be like them mostly paying themselves. Also, with the known potential for growth, paying us a fair value would be nothing compared to where DANS could be heading. IMHO
v/r
Sterling