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Oh please. The company does NOT have its shareholders in mind when they made the decisions that they have. The company is looking out for numero uno, themselves. The fact that it helps shareholders if they succeed is only a side effect. Just keeping it in focus and all my opinion.
Kudos to those that have the cajones to buy here when the issue of the AS post-RS is still up in the air. If the AS has not tracked with OS...I shudder at the thought.
Thanks for putting it into perspective.
Has anyone analyzed the latest financials and combined it with the information we got from the Fox interview (baseball urns booking 2000-2500 orders - we found out this was for the 4th Q ONLY -- yet another misdirection by the company) to come up with an estimate for how much EI would need to sell (in MLB urns only) to break even per Q?
I just did, again, using the following assumptions:
- 20% margin
- $550k total quarterly operating expenses (semi-intelligent number summed from the my guesses of the individual items of the operating expenses section of the Statement of Operations)
I came up with 4000 MLB urns per Q.
I would like to hear some other semi-intelligent guesses, if you're so inclined.
Take into account that the company has other products for sale that will add to the revenue stream, I think this is completely doable, imo, but not before needing to raise funds based on the latest financials.
If the company was telling the truth about sales in the recent 4th Q, then they have solid evidence to take to the banks and collateral (preferred shares) that they can use to obtain a line of credit. Who knows, perhaps this RS served this purpose as well among other purposes.
While I have no trust in management to be straight forward in their communications to investors, I do think there is a definite potential for money to be made here. It all depends on what information is revealed in the upcoming PRs. You should all be very very careful about how you interpret what they state. Like I said in earlier posts, they've never lied, but they didn't stop you from assuming more than there was.
Regarding preferreds, I think they would not be excluded from the RS. The preferreds carry 10:1 voting rights so using the excuse that the same number of preferreds is required to prevent a hostile takeover is unjustified.
Good luck with whichever way you decide to place your bet.
EI is a company trying to stay alive. If you're gonna invest or stand by them, be sure you understand that they haven't lied, but have LET YOU SEE WHAT YOU WANTED TO SEE. See my post:
http://investorshub.advfn.com/boards/read_msg.asp?message_id=26008564
I say if your timeline is 1 year or longer, you've got a good shot at reaping your rewards. Good, not great....based on the information we have now as opposed to speculation.
Isn't that a bad thing? Tells me smart money is getting out.
Unfortunately, you are correct. RS in pink land is a really really bad thing. Its usually done in an effort to raise more cash for operations via more dilution. I'd rather sit this out and wait to see what the company is doing.
Saved me from typing out a long post.
I would be surprised if I don't see the PPS below .001 by Friday.
Isn't there a minimum market cap they have to maintain as well?
See the last 2 entries in the statement of cash flows.
If there was any cash raised from these last 2 entries, they should've appeared the previous section.
That's cause the information about the RS is not PR'd. Unless you read this board or unless you have friends that read this board, you don't know that a RS is coming!
From the July 23rd PR:
"The infusion of more than $1.2 million means we can accelerate our production and fill a growing backlog of orders, and we can continue to work to add new licenses to our roster," said Clint Mytych, CEO Eternal Image. "In addition, we will now be able to meet the next phase of forecasted demand."
Check the wording. Never in this PR is it ever specifically mentioned that the infusion was CASH. In fact, it was an all EQUITY infusion.
Basic Accounting Lesson: Assets = Liabilities + OE.
The 1.2m shows up in OE, but where is it balanced in the equation above? See below.
In summary:
1. $1,267,000 million REAL dollars were NOT infused into the company. That was the value of the shares when they were distributed to the private investors. It clearly states in the financials that the shares were given in exchange for debt incurred in 2007 totalling $465,000 (150,000 + 315,000).
2. The abhorringly high salary expense comes again from the statement of operations: Salaries expense of $763,360. This is where I believe most of the $802,000 in missing shareholder's equity is booked.
3. The equity raised by the distribution of 1,925,000,000 shares to Clint was just $100,000. This transaction did not generate any real dollars for EI either as the $100,000 was expensed as payment to Clint in exchange for services. This would put Clint's salary at least $175,000 ($100,000 + $75,000). I say at least because this figure does not include the missing equity in item 2 above!
So why did I continue to have confidence in EI, even enough to keep adding? Because I convinced myself that EI had hired NAR to buy back enough shares to retire the preferreds (and possibly more) since they were given shares so ***damn cheap.
Go ahead, feel free to digest this information. Ask me any questions and I will try to explain it as best as possible.
EI screwed us all over like any other damn pinky!
I am so pissed as I'm sure many of you are. Since I sold, I have realized real losses. I will probably not invest in EI again, at least for a long while, but before I go, I will let you know all my DD and the reason why I held on and even ADDED. *&^*&%&^%^&*
I am out too. I've got a PPS bomb that I've been sitting on because I chose to see the better of two scenarios. With this R/S, the worse of the two scenario is coming. I will share my bomb with you later when I've calmed down a bit.
OK, I am officially angry at being hoodwinked twice by EI. They are no longer, imo, a legitimate pinky play. I am almost certain that the reason for the RS is so that they can raise the A/S so they can sell shares to raise funds.
what exactly does this mean?
I've bought into Bee's understanding that the reason why they're taking so long to FILE for uplisting is that they're working with the SEC to make sure that all the i's are dotted and t's crossed. Hence, if and when EI PRs that the paperwork has been filed, it can be assumed that it will be approved after a much shorter review -- probably just have to make the rounds to all the players at the SEC involved and get their signatures. So, my hope is that we keep the base here at .002 and blast off with the PR that the paperwork has been filed.
Why buy bling water for $50 a bottle when you can drink tap for free?
I believe Remiere was going to finance the expansion of EI's products into Europe and take a cut of sales in exchange. They probably have it structured so that they take most of the profits to get their money back so I doubt EI will gain much in terms of income for a few years. However, with increased volume, EI should be able to get better terms from manufacturers.
I'm thinking mainly the vatican and pet urns (Europeans love their pets). JMHO.
What doesn't work for some works for others. Personally, I like the way they talk. It has a calming effect.
Think of it as an advertisement, not an interview for investors. I'm sure there are many people out there who would find the whole concept of licensed funerary products distasteful at first, but then are curious about whether a company that deals in it is actually able to be successful. The more people that EI can get to think about it, the more people there will be like us who may decide to roll the dice and make an investment in a far out idea that isn't so on second thought.
Not in my opinion. That is a niche market. EI needs to focus on broader markets right now.
OT: Check it. EI not the only one to use a countdown clock.
http://www.thefightchannel.com/
I will not lie. I expected the paperwork to be filed by the EOY 2007. I am disappointed that it hasn't and am getting less patient day by day. Come on team EI. The holidays are over. Time to whip those lawyers and accountants into doing their work faster!!
Thanks for the analysis, which just confirms the conclusion I've come to. IMO, the seller is NAR and/or MM taking the share price down each for their own, but similar purposes -- pick up an equivalent or more number of shares than it takes to drop the PPS to .001 OR LOWER at a lower cost basis. At least another buying opportunity should present itself soon. This scenario is also good for my theory that NAR has been contracted by EI to help collect shares for retirement. Time to empty out the piggy bank for another chance at buying shares cheap and lowering my cost basis!
NAR is doing the buyback for EI, imo...they had better be.
Yes, but I expect the PR to state that 1.9B shares are retired. I will accept nothing less!
Retirement of shares....a whole lotta shares to get to .50. .50 is the target set by the company. Personally, I think it is a very poor goal since its not achievable in the time frame stated. Thus, I'm interpreting it as a symbol of management's expectations that there will be significant growth in the PPS this year. Now, if only they would hurry up and get the uplist paperwork filed....
IMO, I am absolutely right there there is NO GOOD REASON TO RS PRIOR TO UPLISTING TO THE OTCBB. If they do it, regardless of the "nice" news they couple it with, I will be making a full on sprint for the exit doors.
Yes, an uplist to a big exchange, not the OTCBB. THERE IS NO GOOD REASON TO RS PRIOR TO THE UPLIST TO THE OTCBB.
No reason to RS in advance of the uplist.
Well, if that is the process for filing for uplisting, then it seems to me that a PR stating that the paperwork has been submitted has almost more significance than the actual PR stating an uplist. In other words, filing should add confidence to investors and cause a big run. The actual uplist PR should have a much more dampened effect. I am looking forward even more for the uplist PR.
MKA, I would really appreciate an update on your chart. Early on after the run, I felt it was flipping. Now, it feels like someone is selling again. I believe its NAR selling it down using profits made from last run in order to buy back more. And this cycle will continue. Also, ETIM will not put out any substantial PRs until NAR has fulfilled its obligations to ETIM. JMHO.
How many of you are expecting uplist filing to be PR'd within:
A - 2 weeks
B - End of January
C - Later
?
Personally, I was expecting to see it before the EOY 2007 and am a bit disappointed.
NAR imho.
Anybody else getting antsy about EI not yet PRing that they've filed the paperwork for the uplist? Or is that something that they are not planning on PRing? TIA.
If the company plans to retire the 1.9b shares that are preferred, they need to buy back 900m common shares so that they maintain 51%+.
My thinking is that retiring the preferred shares is a significant part of their plan to get the PPS moving toward $0.50.
Happy New Year everybody!
Ok, there seems to be some confusion here so let me try to clarify.
The company issued 1.9b shares (preferred) with 10:1 voting rights to fend off any potential hostile takeovers.
In order to maintain control without fear of a hostile takeover, the company needs to purchase ~900m shares in addition to the 700m shares they've already bought back. Once that is done, they will be able to retire the preferred shares and significantly improve the share structure.
Good start today. I would sure like to see MKA's latest read of the charts.