says, "Companies that trade on the OTCBB will require Cash/Cheque. "
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Clay Roof Tiles, Generators, Propane Delivery, STP Tools, Simply Comfort Foam Pillows, Secret Diary, CPC Bulb, Peep Hole Monitor
You should look those up. Big Fanfare, no follow through. Big losses.
CAPC/CHDO/CHDT Was good at selling LED lighting, although they never generated $40 million in one year. False claim.
Regardless, they walked away from LED lighting sales, and put all their chips on Smart Mirrors.
How's that working out for you, Stewart?
Stewart Wallach has a 15 year record of failed product launches.
Smart Mirrors fits right in with that legacy.
2ABNT is the ID for Shenzhen Synergy Digital Co. Ltd.
Do we know which Chinese company is doing the circuit board/RF build for the new mirror? Wouldn't it make sense to use the same company? Maybe.
Anyway, the Thai company is just an assembler/tester of the final product, from what I've seen.
Just checked fcc.gov with the 'mirror' filter. No new approved certifications.
I'd guess no Stewart webcast today - what would be the point? "Hey, we still are not certified, so we haven't started building mirrors. But, any day now, for sure!"
They've also used 2ABNT (on the first mirror design from 2019).
2ABNT-CAP001M
That's a 3rd party site. If you want the straight dope, right from FCC.gov
https://apps.fcc.gov/oetcf/eas/reports/GenericSearch.cfm
Fill in a date range and click Start Search.
You can narrow it down if you know the company's Grantee Code or Product Code, but we don't know that for this mirror product.
I've been searching with Product Description of 'mirror' and a date range of 9/1/2021 to 11/30/2021.
I get 8 hits. Check out 2A3II-VIM2011 for a typical smart mirror testing/certification.
Tested Oct. 09, 2021 to Oct. 28, 2021, Test Report Issued 11/10/2021. FCC Certification granted 11/15/2021
Wallach knows what he told the Shareholders
But he forgets so easily. Ample evidence of that. This from the last PR:
You're actually sticking with that?
Hey, it's your link. Consumers want voice activated tech, confirmed.
That rules out CAPC's current design. Maybe they'll take another stab at it in 2022. They can take the opportunity to move manufacturing to Mexico too.
What do you find particularly 'Smart' about CAPC's mirror?
You have to cast your phone to it to get the 'Smarts'.
I've seen TVs behind upscale hotel mirrors; stayed in a hotel like that last year in Vegas.
Does CAPC's mirror have a TV/Cable Tuner? Some 'Smart' mirrors do. Amazon has a selection of them, I believe.
https://www.amazon.com/TV-Mirror/s?k=TV+Mirror
The mirror doesn't free you from your cell phone.
That was the original design objective 2 or 3 years ago; Stewart said something to that effect - to free you from your cell phone at home.
Ironic that they ultimately came up with a (second) design that requires you to tether your phone to the mirror to give it some 'Smarts'. Smarts are on the phone; mirror is a dumb $800 dim display device.
they are almost completely out of shares
We'll know that when the short position goes back to where it was at the end of March, and the Restricted / Unrestricted share count goes to 22.4M Restricted / 27.2M Unrestricted. Not before.
The last readings showed about 9% of the short or 50K shares were covered, and 15K shares made the switch from Restricted to Unrestricted.
Echo is not even a mirror.
Exactly. Echo Show 15 doesn't waste half its luminance hiding the screen behind a mirror. Side by side, the image quality difference would be shocking.
Echo Show 15 has a microphone and a voice assistant, Alexa. CAPC's mirror has no microphone or voice assistant.
Echo Show 15 has a video camera w/ privacy shutter, so you can make video calls to all your family and friends. CAPC's mirror has no camera.
Echo Show 15 is backed by a trillion dollar company. CAPC has to dilute and borrow to keep the lights on.
Amazon's first Smart Home Product, the Echo, was introduced in March 2014. They've built up an impressive infrastructure/community behind it.
CAPC first announced a prototype in Nov. 2017, first launched a product in January 2019. Got that product FCC EMC certified in December 2019. Re-launched the product in January 2020. Started redesigning the product in January 2020. First showed the new design in January 2021. Talked about getting the new design certified in March, April, May, June, July, August, September 2021. Claim to have gotten FCC EMC testing done in October 2021.
Still waiting on the certification to be posted in November 2021. Are we caught up now?
Echo Show 15 is available for pre-order
Just ordered one. $249. Delivery on Dec. 9th.
Will Amazon beat CAPC to first delivery to customers?
All 2.5 million shares?
Not enough volume. I think we have more to go.
Let's see today, for example.
Another smart mirror FCC cert.
Product Name :Flat Panel Vanity Mirror with Bluetooth Mono
Speaker and removable 3 Spot Mirror
Model Number :iCVBT22, iCVBT22W, iCVBT22X, iCVBT2,
iCVBT2W, iCVBT2X (X could be single or
multiple digits by any alphabets denote
different cabinet color)
FCC ID :EMOICVBT22A
Prepared for : SDI Technologies Inc.
Address : 1299, Main Street, Rahway, NJ 07065, U.S.A.
Prepared by : EMTEK (DONGGUAN) CO., LTD. Address : -1&2/F.,Building 2, Zone A, Zhongda Marine Biotechnology
Reserch and Development Base, No.9, Xincheng Avenue,
Songshanhu High-technology Industrial Development Zone,
Dongguan, Guangdong, China
TEL: +86-0769-22807078
FAX: +86-0769-22807079
Report Number : EDG2110200044E00201R
Date(s) of Tests : October 20, 2021 to November 08, 2021
Date of issue : November 08, 2021
So, the testing took around 3 weeks, the EMC test completed on Nov. 8th, and was posted at FCC.gov on Nov. 17th.
Capstone sold a total of 2,496,667 shares of its common stock in the private offering. Littlebanc Advisors, LLC, through Wilmington Capital Securities, LLC acted as the sole selling agent for the private placement.
Wilmington Capital got ~200K warrants at 66 cents as part of their compensation for setting up the PIPE sale.
No one got shares. Well, except for the PIPE investors. They got ~2.5 million shares at 60 cents. Their 6 month holding period expired the first week of October. They are free to request the restricted legend be removed from their shares, so that the shares can be sold into the market, or used to cover short positions.
We'll know if/when Wilmington exercises their 66 cent warrants; the O/S will increase by ~200K shares (it hasn't yet).
They are free to short the stock, and use the warrants as a backstop, should the price go against them.
The warrants are good for 5 years.
I think you agree he meant the Oct. 13th PR
not Oct. 11th.
Is this company 'all there'?
Did they bother to proofread their Press Release?
Huge difference between 1,000 and 3,000 mirrors for $700K. It's kinda important.
Most all companies farm out their testing to 3rd party testing facilities.
That's what CAPC did for their 2ABNT-CAP001M design. They didn't have an issue getting that certification on Dec. 19, 2019.
You'd hope CAPC used the appropriate testing facility, near their manufacturing sites.
Here's another example of a Smart Mirror manufacturer managing to get EMC testing done in a timely fashion:
FCC ID 2A3II-VIM2011
Sample Received Date: Oct. 09, 2021
Sample tested Date: Oct. 09, 2021 to Oct. 28, 2021
TEST REPORT
Product : Intelligent Fitness Mirror
Trade mark :
Model/Type reference : vimbod hub1, vimbod hub2,
vimbod hub3
Serial Number : N/A
Report Number : EED32N80955401
FCC ID : 2A3II-VIM2011
Date of Issue : Nov. 10, 2021
Test Standards : 47 CFR Part 15 Subpart C
Test result : PASS
Published on fcc.gov on November 15, 2021.
Occam's Razor
Who can dump 200K shares at a profit at 90ish cents? Who just got done with a 6 month holding period?
Who invested back in April, with the understanding their money was going to inventory build, and that shipments would begin by the end of April?
If you've got a different scenario, let's hear it, U.
Also, watch the Market Participant that grabs the inside bid/ask, and then moves a large block of shares.
Canaccord Genuity, Paulson <-- two I watched dump shares, either into the bid, or constantly refilling the ask when hit.
Some have. Some are being. Some will be.
It doesn't all happen at the same time. It's up to the individual investor and the company and the transfer agent.
Do you think the 200K that was dumped today in 5 minutes was delegended back on Oct. 6th, and they waited until today to dump?
PIPE shares re-legend after 90 days, if they don't sell the shares.
Have you not researched this?
The act of getting the legends removed from the restricted shares doesn't cause the dump; the desire to make a profit on their 60 cent shares causes the dump.
The de-legending is not automatic. The holder has to request, the company has to provide a legal opinion that it is OK, then the transfer agent has to allow it.
At that point, they have shares they can sell into the market (or use to cover a previous short position), and the 90 day clock starts.
Field of Screams
If you Bid it, they will Dump
I imagine the PIPE holders are currently getting their shares de-legended, and looking for Bidders.
90 cents still represents a 50% return on their 6 month old investment at 60 cents per share. Not as good as shorting the stock above $1.20 for a quick double or more, but still good.
Want Shares?
Put in your block Bids; I think they get filled.
Couple of take-aways from the 10Q
They did find some stock of LED lighting to sell internationally (Asia?) for $44K. My full year revenue/loss prediction remains unchanged. $625K revenue/$2.2 million loss.
Enough cash to operate for 12 months, because of dilution and debt. We're just now seeing the effect of the dilution, as the PIPE shares come off the 6 month holding restriction. $1.20 was the floor, then $1.05, now $0.90.
The claim that 3,000 mirrors would be complete, just needing FCC stickers, by the end of Sept. 30, 2021? False. Inventory of just $25K at 3Q end shows this. You can have pretty good confidence that they bought parts and sub-assemblies to make 3,000 mirrors; prepaid expense of $750K probably accounts for that.
Just noticed they decided in January 2020 (just after CES) to stop using Max Borges for marketing. This tells me they already knew the first design (the 8 inch tablet that plugs into the back of the mirror) was a dud. They spent all 2020 redesigning the smart mirror, with the first prototypes coming out in January 2021 (when the first short video clips were posted on Youtube). Covid Excuses during 2020 covered management on this misstep.
They've rehired Max Borges from Oct. 18th for 60 days. My guess is the agency will re-do all the marketing material using the new design (most of the marketing material on capstoneconnected.com still shows the old design). No ongoing marketing of the Smart Mirror at this time. Not a sign of sales confidence, in my opinion.
They already got a substantial payout. I think there might be $200K or so left to draw, if I recall correctly.
It's in the 10Q filings if you're interested.
It's like spending a year talking about what resistors or capacitors you've decided to use in your design.
Yes, you have to use resistors and capacitors in most electronic designs, but the stockholders and the end users don't need to know about that.
You design a product that has an RF component (wifi and bluetooth), you know you have to get FCC certs. You get them.
You don't use the certs as an excuse to show zero revenue for consecutive quarters.
Capstone had ALREADY HAD certs for the Smart mirror design they re-launched at CES 2020.
Here we are, gearing up for CES 2022, and we're still talking about getting FCC certification.
When we finally get the FCC documents, do you believe they'll show that the mirror went in for testing back in March?
Because, that's what CAPC is asking you to believe. I don't believe it.
Only CAPC would make such a big deal about the normal course of business.
Typically, companies don't talk about products until they've received certification. How long has Capstone used the cert as an elusive carrot?
It's like the first hurdle of a 110 meter high hurdle race.
Glad to hear we have a definitive sale date.
Definitive? We've had dozens of definitive dates. They get replaced by new definitive dates. Have you not been following along?
Capstone Smart Mirror in my living room!
Still in the chair? It just occurred to me, you're beta testing how well these mirrors would fly in an airplane seat, aren't you?
Shipping by sea won't get the mirrors here until 1Q2022. And at $190/mirror, why not buy them airplane seats?
Good Show, testing that out for CAPC!
We've been 'days away' from shipping since 1Q2019
In January 2022, CAPC will re-launch their Smart Mirror for the third time at the CES show. That seems to be their focus now, not on making sales in 4Q2021.
Jan 2019. Launch of the Smart Mirror (discussed since Nov. 2017 -> by management). Shipments to begin by end of 1Q2019.
Jan 2020. Re-launch of the same Smart mirror. Shipments imminent; date slips a month every month.
Sometime in 2020, they realized their first design was a dud, so they came up with a new design, first seen in January 2021.
Next up, January 2022 at CES: This Time We Really Mean It!
New Date, New Price
November 22, $799
Guess they finally got around to calculating what the shipping was going to cost them...
They are offering $100 off special introductory pricing, though. Not sure how long that will last... Get Your Orders In NOW to Save!
Or, wait until these things show up on eBay for 300 bucks.
Speaking of Costs
Are they really going to be shipping 5 mirrors to a pallet? (See latest photos from the company on Twitter).
That's about 100 mirrors per 40 foot container.
Currently it costs $18K ~ $19K to ship a container from East Asia to the US.
That's $180-$190 shipping cost PER mirror. Ouch. That really eats into the gross margin!
It was less than $40 million. Not 40 mill+.
2017. $36.7 million revenue, $2.08 million net income.
The stock traded as high as 73.5 cents per share, and as low as 25 cents per share.
Based on 47,046,364 shares in the O/S, that was a market cap of between $11.7 million and $34.6 million.
P/E ranged between 5.6 and 16.6
P/S ranged between 0.32 and 0.94
In 2021, CAPC will do less than a million in sales, and book more than $2 million in losses.
No P/E.
P/S north of 50.0 currently.
It was beautiful Support, until it wasn't.
Mathematical mumbo-jumbo.
It has hit both in less than a year.
At some point, the meaningless charts go out the window, and fundamental valuation takes over.
This stock is fundamentally overvalued, even though it's down from 3 bucks a share.
Price to Sales is over 50, where average price to sales for Russell 2000 stocks is about 1.
That's not sustainable.
It was last December when it was 3 cents.
By March, it had ballooned to 3 bucks.