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That's your litmus test? Here check us out:
http://www.investorshub.advfn.com/boards/Profile.aspx?user=452934
Unfortunately, it appears that IDNG will likely suffer a similar fate to SIMH. Something that was easy to see coming.
Believe me, the last thing on my mind is investing in a company with NO REVENUES and a capital structure like IDNG has.
Go read my posts over on the SIMH board. You've been there before. I tried to sound the alarm bells there too, but the message fell on deaf ears.
I don't need to figure it out. You cannot bypass the mechanisms of a fee market. The fact that you cannot, or will not, answer the question tells me all that I need to know.
How did you accomplish this feat of financial wizardry? You cannot "lock up" shares that are freely traded. Only Rule 144 and other restricted shares are locked up.
And how will you "lock the float"?
I can't wait to hear the answer to this question.
Please tell me what determines whether or not a person is a basher?
Is someone who offers a balanced view of a company a basher? Is someone who points out flaws in the capital structure of a company a basher? Is someone who warns of flaws in the business model a basher? Is someone who sees a disturbing balance sheet a basher?
I posted, just last week, that I thought that a competitor of IDNG would soon announce an increase in their authorized shares and a reverse split.
http://www.investorshub.advfn.com/boards/read_msg.aspx?message_id=109581389
Today the company announced exactly that news.
http://www.investorshub.advfn.com/boards/read_msg.aspx?message_id=109690007
Does that make me a basher, or someone who sounded a warning signal to other investors by performing a thorough analysis and in-depth due diligence on a company?
Please enlighten me on this whole basher thing. I'd really like to know. TIA.
Whether owned by insiders or not, those shares are still part of the capital structure, which remains bloated with too many shares outstanding.
Question: Why do you think this thing trades at 4/10ths of a penny?
Answer: Because it isn't worth very much.
We've given IDNG a perfunctory due diligence look, and from what we see, we wouldn't touch this stock with a 10-ft pole.
It appears that some of the old Sanomedics crew is jumping from the frying pan into the fire with IDNG. Wow, I never knew that there could be so many gluttons for punishment.
This is just another sub-penny sucker-play waiting to implode. Don't throw your money away. Find something decent to invest in.
Independence Energy Corp. had 360,094,082 shares of its common stock issued and outstanding as of December 17, 2014.
Did you happen to notice that they have zero revenues? That should tell you something .
Our work is done here. We're going to move on to another idea. GLTA.
Yes, it's really too bad that some thought our presence on this board had some sort of ulterior motive. After spending 35 years in the securities business, you learn a few things along the way.
We truly feel bad for those who got played.
I hope that some shareholders were able to get out without too much pain. Unfortunately, the worst is yet to come for those that are left.
They don't need shareholder approval. Management holds a 56% majority stake.
The board of directors has already approved the three items proposed; name change, increase A/s and the 1:125 reverse split.
________________________________________________________________________
Dear Stockholders:
We are writing to advise you that our board of directors and the holders of a majority of our outstanding voting securities have approved a Certificate of Amendment to our Certificate of Incorporation to:
·
change our corporate name to Sanomedics, Inc.;
·
increase the number of authorized shares of our common stock from 250,000,000 to 650,000,000 shares; and
·
effect a reverse stock split of our outstanding common stock on the basis of one for one hundred twenty-five (1:125).
These actions were approved by our board of directors on December 31, 2014. In addition, the holders of a majority of our outstanding voting securities approved these actions on [ · ], 2015 by written consent in lieu of a meeting in accordance with the applicable sections of the Delaware General Corporation Law.
WE ARE NOT ASKING YOU FOR A PROXY, AND YOU ARE REQUESTED NOT TO SEND US A PROXY.
No action is required by you. The accompanying information statement is furnished only to inform our stockholders of the actions described above before they take place in accordance with Rule 14c-2 of the Securities Exchange Act of 1934. This information statement is first mailed to you on or about [ · ], 2015.
Filing can be found here:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=10397650
Shares issued and outstanding are 218,375,144 as of 1/2/2015.
SIMH files a Form (pre)14C. Increase A/S to 650M & proposes a 1:125 Reverse Split.
No question about it. You are correct. We think that they have a great product, but the capital structure, and management are terrible.
To quote from our web site:
"Many of these companies have unique and innovative products, but have faced ongoing challenges and obstacles in the past, e.g. unattractive financing, poor management, marketing missteps, etc. We typically wait to see signs of a turnaround, or a significant internal or external catalyst, that we believe will change the past direction and the future fortunes of the company."
If and when, things change we may have an interest in this company on the long side. We found a similar situation with our current favorite long idea. They eliminated floorless convertible debt and brought in a new management team.
It's a totally different company now.
I understand. FWIW, I will tell you that we have no position (either long or short) in SIMH. I know that many here may not believe that, but everyone is entitled to their own opinion.
I wish you success in all of your investment endeavors.
Thanks for the free publicity. Yes, our focus is on small-caps, micro-caps and special situations. We've done pretty well in this space as indicated by the performance of our proprietary accounts.
http://www.altitradepartners.com/performance.html
Initially, we were hoping that we might write a report on Sanomedics, but after our preliminary look at the company, we decided against if for two reasons; poor management and toxic financing arrangements.
http://nebula.wsimg.com/de5044a0babc41f4c5c10c044c2f9107?AccessKeyId=B2252E193022D9A21C5F&disposition=0&alloworigin=1
We've learned our lessons from previous experiences with companies similar to SIMH.
Good luck, though.
Sorry, but that is a totally inaccurate statement. The stock closed at 0.0093. There were no after-hour trades.
I'd hate to imagine that could be true, but then again I never thought that I would see the CEO of a publicly-traded company post a tweet to his personal twitter account endorsing a penny-stock promoter.
https://twitter.com/305Hedge/status/543240898293678081/photo/1
I'm sure the regulators would be interested in knowing about any illegal activities that might be taking place.
Let me see if I can offer a little help.
When you put in an order to purchase shares, you are placing a bid, so it would naturally show at the bid price.
A seller could hit that bid and sell their shares to you.
While there is a buyer and a seller for every transaction, the fact that the price was lower than the last trade would indicate that the trade was a large sell order.
Somebody just whacked the bid with a 2,000,000 share sale at 0.009751.
Any guesses who?
Like I said earlier, distribution contracts, in and of themselves, are a dime a dozen.
Schein has nothing to lose, except opportunity costs (lost sales), if Sanomedics can't deliver.
I've seen many companies that sign distribution contracts, and later they are not renewed (or cancelled) for failure to perform. It happens all the time in the business world.
Thanks for helping to make my point.
A few Caregiver thermometers aren't going to impact Schein's $9.8 billion in revenues very much. These guys have much bigger fish to fry than worrying about a company with quarterly sales of $83,000.
I doubt that Sanomedics has that kind of leverage over a billion dollar company like Schein. If anything I think that SIMH would bend over backwards and agree to whatever terms Schein offered to get on their distribution list.
Sorry, but Sanomedics is small potatoes. They don't get to make the rules.
Since the terms of contract between Schein and Sanomedics is confidential, we can't say that the problem has been addressed.
Most distribution contracts are written where the distributor can effectively back out of the contract if the manufacturing company can't deliver product.
In most cases the manufacturing company has no recourse, and the distributor suffers no damage other than opportunity costs through lost sales.
Schein's sales are so large, that they would likely view the loss of one contract for one product a mere inconvenience.
I would think that the CEO, knowing the the financial condition of SIMH is widely know by investors, would have addressed this problem in his shareholder update last week. His silence, on this issue, speaks much louder than his words on other ones.
The idea that a billion dollar company like Schein would foot the bill for manufacturing costs, doesn't make sense. Why should they take that unnecessary risk? What do they gain? I doubt they care about Sanomedics financial problems.
First of all, I doubt that the sales from Caregiver would have any meaningful impact on Schein's overall revenues, so why should they care.
Secondly, if SIMH can't deliver Caregivers to meet Schein's demand, they would likely find another product which does the same thing with just as much efficacy.
http://finance.yahoo.com/news/visiomed-reveals-ebola-fighters-weapon-195845186.html?soc_src=mediacontentstory&soc_trk=tw
Schein is in the distribution business, not the manufacturing business.
Well, if you are buying SIMH shares here, that is exactly what you are doing. Hope it works out for ya'.
<<I would bet just about my last penny that the production costs are funded by the distributors.>>
Really, what chart are you referring to? The chart I am looking at shows a long, protracted decline of 97% from 0.60 cents to under a penny over the past few months. The accumulation/distribution line also shows that major distribution is taking place.
https://stockcharts.com/c-sc/sc?s=SIMH&p=D&yr=1&mn=0&dy=0&i=p97172913377&r=1420320903836
<<It is sooooo easy to see the chart heating up>>
It appears that some investors are putting revenues ahead of the manufacturing of the product. There is no money to manufacture product, so how can there be revenues from the sales of these non-existent products everyone is talking about.
Even the CEO failed to mention, in his shareholder update, that they had been manufacturing more product to sell. Why is that?
Distribution is important, but only if you have product to distribute.
You can't have revenues without first manufacturing product.
You can't manufacture product without having money.
You can't raise money when your balance sheet is a disaster, and your expenses are ballooning.
You can talk about revenues all you want, but so far they are almost non-existent.
<<At September 30, 2014, we had approximately $40,000 in cash on hand; and unless and until we increase our sales, receive additional financing from third parties or capital from stock offerings, which we may never achieve, in the absence of on-going cash infusions, we would be unable to continue to operate. If we are unable to pay our obligations as they become due, the related parties who are holders of the secured notes could seek to foreclose on our assets. In that event, we would be unable to continue our business and operations as they are now conducted and investors could lose their entire investments in our company.>>
You are correct. In my previous calculation (see below) I discounted the shares traded by 50% between convertible note holders and existing shareholders. I should have done the same with the 770 million shares that I referenced in my post. My oversight. Sorry. I apologize.
<<As reported in the most recent 10-Q, as of 11/11/2014, there were approximately 113 million shares outstanding.
Since that date, approximately 246 million shares have traded. That is more than DOUBLE the number of shares that were outstanding on November 11, 2014.
http://www.finance.yahoo.com/q/hp?s=SIMH+Historical+Prices
If we assume that roughly half of those 246 million shares traded in the past 6 weeks were from existing shareholders, that would mean greater than 100% turnover of outstanding shares; highly unlikely IMO.
This would indicate that the other 123 million shares were dumped on to the market by the convertible debt holders; very likely, IMO.
That would put the total outstanding shares at approximately 236 million (113+123). That's quite a bit of dilution from the 18 million reported in the previous 10-Q.>>
The average volume traded between November 11, 2014 and January 2, 2015 has been approximately 7 million per day.
There are approximately 110 trading days between now and May 15, 2015 (the last day to file their 10-Q and remain current) 110 X 7 million = 770 million.
There are probably close to 250 million shares already outstanding, taking into account the trading volume over the past 6 weeks. That total is pretty darn close to 1 billion.
From the recent 10-Q:
We have approximately $2,900,000 in secured obligations between Redwood and the related parties which mature in July 2015 and through March 2016, respectively, which are secured by substantially all of our assets, and we do not have sufficient funds to pay those obligations.
At September 30, 2014, we had approximately $40,000 in cash on hand; and unless and until we increase our sales, receive additional financing from third parties or capital from stock offerings, which we may never achieve, in the absence of on-going cash infusions, we would be unable to continue to operate. If we are unable to pay our obligations as they become due, the related parties who are holders of the secured notes could seek to foreclose on our assets. In that event, we would be unable to continue our business and operations as they are now conducted and investors could lose their entire investments in our company.
There is no assurance that the additional financing we require would be available on reasonable terms, if at all; and if available, any such financing likely would result in a material and substantial dilution of the equity interests of our current shareholders. The unavailability of such additional financing could require us to delay, scale back or terminate our business activities, which would have a material adverse effect on our viability and prospects.
Remember, it's not the company that is converting debt to equity, it's the convertible note holders. Their only concern is getting their money back. So, to answer your question, yes the dilution will continue until the note holders recover all of their monies. Revenues are irrelevant in this case.
What sales? All that they have are distribution agreements. Sales would require that they are manufacturing product to sell. I'm just wondering how they pay for raw materials and contract manufacturing costs without any money?
Add to that the sad state of the company's balance sheet, and I don't see them being able to raise capital on any sort of favorable terms, if at all.
Do the math. Between now and mid-May, at the current rate of dilution, convertible debt holders will likely dump an additional 700 million shares on to the market.
By my calculations, they are already close to bumping up against the 250 million mark.
http://www.investorshub.advfn.com/boards/read_msg.aspx?message_id=109581389
Unfortunately, by the time that they announce Q1 revenue, sometime in mid-May, the number of outstanding shares will be much higher than 250 million.
At the current rate of dilution, the SIMH share count could top 1 billion by then.
http://www.investorshub.advfn.com/boards/read_msg.aspx?message_id=109581389
Wishful thinking, but I don't think that lightning will strike twice for SIMH shareholders.
This stock becomes worth less each day with the dilution pollution taking place.