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Agreed. Carden was probably overwhelmed trying to run a publicly traded company such as Alyn. Makes perfect sense to get back to his strength, and that is engineering. They actually said they are continuing to improve Talbor.
When you look at the history of Boralyn/Talbor, the ramifications of the technology are huge. The risk of ruining this process vs. the reward of dissolving some debt don't make sense. In addition, the timing of the buyout offer in relation to the recent testing by Cal Poly is reasonable.
No, I'm saying it might be all we need. I don't know what it will go up to. Anyone, please correct me if I'm wrong here.
I believe that when someone shorts a stock and it goes up, there is a ceiling imposed by the broker that says it needs to be covered by a specified time. If it isn't, interest is tacked on. So at some point the interest cost of waiting for a stock to drop is more than the cost of just taking the loss and buying the shares.
I think even just a couple pennies increase would be enough for a successful short squeeze. It shouldn't take much. Maybe as little as hitting $0.02 would do it.
If Global Inc. successfully initiates a short squeeze, it sends a message to don't try it again or they will swing first.
Importance of Talbor Patent:
Talon Composites (Ref. 1) is the company who has been working on, and successfully completed, development of the material Talbor, a metal matrix composite with a diverse range of uses. Robin Carden, CEO and owner of over 25 patents, previously ran Alyn Corporation, a publicly traded company, focused solely on developing Boralyn. The company failed and Mr. Carden resurrected his team and formed Talon Composites to continue development of Boralyn under the new name Talbor. In October 2006, Thresher Industries acquired Talon Composites and continued development of Talbor.
The earliest reference I could find for Boralyn development was 1999 (Ref. 2). Boralyn was highly sought after, and the failure of Alyn was lamented by retail, sports, military, nuclear, and auto industries. On February 24th, 2010, Cal Poly University, San Louis Obispo, confirmed that the Talbor quality claims made by Thresher Industries were accurate and that it is a high quality material.
This means that on Feb. 24th, a highly sought after material finally reached fruition after at least 11 years of work. Thresher not only holds the patent for Talbor (Ref. 3), they also hold the patent for the machine that makes it (Ref. 4), and the process which uses recycled materials and zero emissions production.
11+ years of research and entire careers of work finally completed and verified. Two weeks later, an offer was made to purchase the company at a price above current market value.
If you believe this is a scam, fine. Pink sheets are risky territory and I will never disregard that opinion based on OTC history. But anyone who is evaluating this "scam" and has not evaluated the fundamental company in conjunction, is cutting theirselves short. 11 years of research, with an eco-friendly material and process, and patented protection, should not be underestimated during this evaluation.
Ref. 1: http://www.taloncomposites.com
Ref. 2: http://www.allbusiness.com/company-activities-management/product-management/6638973-1.html
Ref. 3: http://www.netcomposites.com/news.asp?4166
Ref. 4: http://www.thresherindustries.com/materials.html
That's assuming the dilution was not part of the deal. Dilution would be the only way to have a price tag worth selling and keep the total cost reasonable for the buyer. In reality, Thresher was probably diluting already. Maybe not to 14 billion, but they were doing it because they are having cash flow issues. If they weren't having cash flow issues, they wouldn't entertain a buyout.
It isn't the only scenario, but it is not unreasonable either.
Plus, you have to take into account the fundamentals of this company. It isn't all technical. Merging with a company who has deeper pockets, established global sales channels, and the capacity to manufacture more and faster is the perfect partner. I expect that this buyer, if there is one, will be a large manufacturer in the industry who meets all those criteria.
More disinformation. Excerpt from March 17th PR:
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CEO Tom Flessner was happy to announce that "as of March 16, 2010 the Board decided to initiate procedures to finalize the sale of the company in an accelerated manner." On March 9, 2010, Thresher Industries received a proposal to purchase their company. The proposition was later approved and disclosed preceding the Board of Directors of Thresher special meeting.
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They accepted the offer. It isn't finalized, but they certainly accepted it. This is further in negotiations than eWorld or Yahoo ever got. It will take a fallout at this point to stop the agreement. At this point, they are way beyond where the above two examples failed.
I smell lots of disinformation here. It's clearly a situation with no concrete answers yet, but the scam conspiracy theory holds no weight yet. Conspiracy theories always lack a smoking gun. Until I see that then it is just as bad as saying "the deal is done, money is in the bank." We're in limbo.
Hawks, I will agree that the lawyers are another unknown factor. I consider it a yellow flag, not red, but I won't disagree that they are clearly a wildcard.
If you are referring to the eWorld buyout, that wasn't a scam. They denied the buyout offer and that's it. The Board of Directors and preferred shareholders were in disagreement and they were not seeking a buyout at the time. You can not over complicate that into a scam. If so, then you might as well call the Microsoft buyout of Yahoo offer a scam too, because they discussed it and rejected it. At the same time, their PPS skyrocketed.
According to their last financial report, the execs owned the following number of shares. I have included a 0.01 pps value as well.
Flessner: 6,527,567 shares x 0.01 = $65,275.67
Rowell: 1,693,649 sharex x 0.01 = $16,936.49
Weeks: 601,125 shares x 0.01 = $6,011.25
Gardner: 175,003 shares x 0.01 = $1,750.03
If they were offered those buyout numbers, that would be a tough sell since they probably make a lot more than that in salary and are sitting on patents and plant worth tens of millions.
In this case, dilution that allows them to convert their preferred shares to outstanding and then add on another 500 million to 1 billion per person would give them buyouts much much higher. Plus, the current buyer can sweep up all the new shares at a bargain price.
In reality, the buyer is probably only going to be paying the full $0.01 for about 5 billion or so shares. That's $50 million, plus, another $18 million at the most for the the other 9 billion shares if using an average purchase price of 0.002. And that's if they bought them all recently after the spike in value. Since the dilution has been steady since February, they are probably no where near 0.002 average.
At a high-end scenario, we're looking at a buyout of $68 million. That's the price tag for the patented rights to a metal matrix composite that shields nuclear radiation, and a zero emissions production process. Doesn't that sound a little more reasonable?
If they announce the buyer tomorrow after hours, I think the deal is complete and it won't open for trading on Tuesday.
I'm still not convinced they are announcing the buyer though. This was not in a PR directly from Thresher.
YouTube was bought for $1.6 billion by Google, despite only being 9 months old, burning money, and no model for generating revenue.
It was purchased because it was believed that whoever owned YouTube would control the market, not that they would make money specifically from the current business.
YouTube is the extreme, but this happens all the time in high-tech startups. Actually, in high-tech startup, you are banking on the idea that someone is going to buy your IP. It's part of your exit strategy.
Thresher could be an operation that is currently packing its bags and getting ready to jump on a plane to the Bahamas. But until you can really pinpoint the value of their IP, the facts stated in your post are not fully supported. You can not overlook the value of the patents, processes in place, research with Universities, and contracts they currently have.
The day that conference call hits, the whole thing is over. That day we will find out who the buyer is, how the buyout works, how/when we get paid, and that trading is officially halted. Or, we find out there is no buyer, all credibility is shot, and a reverse split or business as normal is in effect.
I think that the risk vs. reward ratio leans toward this being completely legit. The motive for deception doesn't seem to fit because the amount they have to lose is huge. However, we're in pink sheet world so I won't rule it out completely.
But, I can assure you one thing: when that conference call happens, we will have our answer, for better or for worse.
It doesn't matter whether the acquiring company is private or public so long as they pay. A penny per share is a penny per share.
The other part of this is that they might have received an offer of 0.005 per share. Thresher said no and countered at 0.02 per share. Then on March 9, 2010, a 2nd counter-offer of 0.01 was made. One week later it was accepted by the board of directors.
There are so many unknowns here. It is not likely that someone offered 0.01 out of the blue with no negotiation. It's probable that there were negotiations prior to March 9, 2010 and 0.01 was the number settled on by the board, per the PR.
Thresher Industries is a company with huge intellectual property, growing production facilities, and capital restraints due to debt. It makes sense that a buyer would be someone who lacks intellectual property, has large production facilities, and has no constraints due to debt.
I think the buyer will be someone who can take the patented technologies and manufacture them at 5x-10x the capacity that Thresher Industries could.
No. You nailed it in your statement: it's a rumor. So far Thresher Industries has made information public in their PR's. If an outside source says they are doing something, and their PR doesn't say the same thing, it wasn't sanctioned by Thresher Industries. It is highly unlikely they will say who the buyer is on Monday because it wasn't in their PR.
If the conference call doesn't happen next week, then this is the first investor statement in the past weeks that they have not upheld. Outside of PR's, everything else is manipulation or hearsay or uninformed.
A letter of intent is not to be taken lightly. It means the buyer INTENDS to buy as long as the parties agree and the facts are straight. You won't find any company issue a letter of intent if they don't intend to follow through. At this point, we need to confirm who the buyer is and that the facts are straight. It's like taking a drug test and running background check after you had an offer from an employer. The offer is the letter of intent, the contract signing is the official agreement.
Good luck all, but so long as there aren't skeletons in the closet, I don't think we'll need luck.
I won't be moving on from TSHO just yet. To much DD and to much positive results to leave it for the next big thing. I will have much difficulty growing an equal amount of confidence in the next company as I have here.
Ok, let me ask you this: is THRR allowed to do something such as dilute 2 billion more shares and hand them straight over to an investor? Then dilute 2 million more and hand them straight to their management? And so on and so on? If so, that only makes the $0.01 price tag that much more reasonable.
It says both the board of directors and majority shareholders "have agreed to the offer price of $0.01 for any and all outstanding shares."
But if the buyer already owns, say 4 billion shares, he's essentially just paying himself the $0.01 per share right? So in reality, it's not as if it is costing him anything except the original price he paid for those shares.
Sort of. All outstanding shares they don't currently own. That's a pretty important piece of the puzzle. It makes the buyout cost and dilution numbers more sensible.
I don't buy into the MM paid bashers theory. They don't need to. MM's short and short-selling investors short. The goals are aligned, thus there's no reason to pay anyone to promote what is already being promoted. It's just a powerful combo.
If/when the sale is finalized, won't they have to halt the trading immediately? Otherwise, they will be unable to figure out how the value is divided up.
If so, then there must be some sort of preparation with the SEC to do that. I don't think you just "spring" that sort of thing onto them. We should be able to use this as a point to research.
I still haven't been able to verify that they are announcing the buyer on Monday. I also can't see any benefit to it, unless it's to prime people for the conference call.
I would think if they were going to announce the buyer on Monday, the PR from them would have stated that.
If you are referring to the trial that has ended, we'll probably never see those results. Nothing good will come out of releasing numbers from a test campaign. It was merely for gathering data and planning for the next campaign.
For all we know, it was an underhanded move to slide in a buyout price of $20 million. Absolutely ridiculous to think that it would go that low. It didn't even make sense in the context of the "summary."
Did they alert regarding the supposed conference call for today?
It's not a real court document. It has discontinuities all over it, plus the lack of a source.
What lawsuit?
Chris, do you have any verifiable info regarding the buyer being revealed on Monday? I can not find it, and we know the purported discussion for today was not verified.
If they release the buyer's name, this tells me it's done. Because if the deal falls through, or a scam is really in place, you are now dragging down two parties, not one.
I'm not sure I see the logic in even announcing the buyer until the conference call.
Where is the confirmation, from Thresher, that they are revealing the buyer on Monday? I'm not trusting anything from Xplosivestocks.com unless it is directly verified by Thresher.
One week trail? You referring to the most recent campaign that already ran?
I think you're referring to O/S, not A/S.
The other component here is that if Monday's announcement goes as planned, this is the last two days to cover a short position. As long as the buyer is announced Monday, the stock will reach a new high Tuesday morning. A massive high.
So there is great incentive to drive price down right now. At some point though, there just won't be any shares left to buy.
Good article on conspiracy theories. Lends insight into how and why they work.
http://people.howstuffworks.com/conspiracy-theory1.htm
Oh and by the way, as we all know maone15 hasn't been around much after the attacks on TSHO. He had a lot of personal attacks on him. Recently I have become aware of how draining attacks can be when you are constantly trying to defend yourself. I have no doubt that this is one reason we don't see much from him anymore. It's just way to much expended energy for a temporary issue. I'm sure this has been on everyone's minds although not many have said it.
I feel the exact same way on that. It sounded like investment suicide, especially with the list of questions he was about to be barraged with. Here's how I think it went down:
He had a discussion with that board, and it went reasonably positive, but didn't answer all the concerns. He was asked to have a shareholder discussion by the board, scheduled for Friday at 3:00 pm. He said, let me think about it and discuss with my attorneys. Attorneys said no and he declined the discussion. The board owners jumped the gun on it, released the info under names we have never heard of, and then said the CEO chickened out.
No PR from the company whatsoever. This company has chirped about all the news they were willing to release so far. They even released a PR for a conference call next week, albeit tentative date. They said the buyer is to be announced Monday after bell.
Today's discussion was never set up. I'm not a 100% optimist here, but if you remove all the hearsay evidence and just look at the facts, there is no reason yet to believe this isn't real.
The buyer backing out is another story. Any buyer can back out at any time from any deal. Always a risk. But as for all out premeditated scam? I still haven't seen the evidence.
You know, that conference call for today was never officially announced by Thresher. They've officially announced all their other news, including a conference call for next week. There is no evidence that the intended conference call for today was ever sanctioned by them.
If they carry through with this, they are smart to combat short sellers proactively. Someone over there is soliciting good advice or well versed in this type of situation
I don't see it being a scam either. It doesn't make any sense at all if it was. I do see, though, that there is always the issue of the deal not going through. Until the contract is signed, it's hard to rest easy.
Then you have swirling questions of dilution, reverse splits, to high of purchase price, etc. We have hashed these out to different situations many times, but it's all hypothetical
A big lie? No, most likely not. Set in stone? No, not yet either. I see two good things though that are happening:
1. They are moving the deal fast. We won't be on pins and needles for long.
2. Even if the deal doesn't go through, they are operating in full swing. With the mutual testing of their new material by Cal Poly at the end of February, it opens the doors to more and bigger contracts.
Enjoy your weekend folks!