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Snake,
Check this out.
Merck has a market cap of $101 Billion.
Glaxo $97 Billion
Abbott $75 Billion
Pfizer $162 Billion
Novartis $124 Billion
...etc...etc...
We got what they need, and they're comin' to get it.
I'm going to be downright stubborn with my shares.
WestE,
haha - I had the same problem today with TDA: "you're bid is significantly above the current ask. Please make sure the symbol you entered is correct".
No problems with ETrade though.
Today was the absolute pivot point for CTSO.
The next 12 - 24 months are going to be incredible. We'll see multi-dollars here.
Great article on CTSO describing the product and the market potential:
You know how biotechs can run. This could easily hit $3.00, jmo.
http://biotuesdays.com/2011/03/22/2011-could-be-transition-year-for-cytosorbents/
I'm in agreement with you 100%. I prefer Cherry flavor over Fruit punch, but regardless I want VTSI to succeed.
Describing the R/S proposal as bone headed is putting it politely.
And since we're all part owners and financiers of the company, we have the right to assert our opinion. Whether that be through simply voting our shares, proxy contest, or otherwise has yet to be determined.
Mr. Ferris:
Just how deep do you believe?
Will you bite the hand that feeds?
Will you chew until it bleeds?
Can you get up off your knees?
Are you brave enough to see?
Do you want to change it?
Will you bite the hand that feeds you?
Al,
I'm not part of any crew. I don't follow anyone's rules, not even my own (lol) And by no means am I trying to destroy the share price.
Never have I argued for the 'demise' of VTSI. I've only argued that there would be a high probability in a sustained general downtrend in the stock price based on experience.
I'm holding a large position long.
And I don't doubt the viability of the company's future - obviously the reason that I'm still invested.
My only agenda is to have this R/S voted down, and allow management to come back to the table with a proposal that makes sense for ALL shareholders.
My opinion is that we're not losing any sales based solely on stock price, and even if we were losing a relatively small amount of sales, those losses pale in comparison to the market haircut we just experienced by having management even propose a R/S.
VOTE NO - FIGHT THE POWER!
AI,
(.095 pre-proxy price - .0685 today's close) * 158,000,000 shares outstanding = $4.18mm LOSS IN MARKET CAP
When will some get it?
VOTE NO - FIGHT THE POWER!
There is no "orchestrated resistance" here (at least not at the present moment, but that is about to change).
There is just a group of individual and experienced investors who have been through this before and voicing there concerns and schooling the inexperienced how it is.
This R/S proposal is the biggest bone-head move I have personally every seen.
Jed, what's your alias on iHub?
VOTE NO! FIGHT THE POWER!
When the questions started getting a bit more difficult to answer and shareholders started expressing their opinions, the call was quickly 'terminated' Something about Ferris having a flight the next day...?
There were still people in the question queue waiting for their turn.
Maybe another conference call should be in order now that people have had a chance to digest this information.
I'm not against Ferris by any means, but I'm totally against the R/S and loss of shareholder equality as presented in the proxy.
Maybe there were only three investors on the call because it was announced 24 hours before it started and shareholders needed to find out the call even existed by hitting 'refresh' on the "Press Releases" section of the company's website every day?
Of course they could always listen to the recording of the call if they Google the correct word combination and happen to find the Youtube video.
Here's a thought to ponder:
There are currently 2mm preferred shares authorized, and none outstanding as of 12/31/2010.
Can Ferris simply just issue a few preferred shares to himself with super-voting rights and call it a day?
My first assumption is "No", or there would have been no need to have gone through this whole proxy ordeal. Something must be blocking him from doing so. Maybe this might give us a hint on some of the other proxy items which reduce or eliminate certain voting rights...?
Here's the articles of incorporation which were filed by VTSI in 2008. It seems to be a carry over from the previous company.
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=18467
5Cap - was that you who was granted access to the T/A? If you wouldn't mind, can you ask them what the current preferred O/S is?
Perhaps taking a closer look at the chart right after the R/S proposal was discovered might lend some understanding.
Your thesis surmises that, once absorbed by the market, the Gander deal and going debt free should have added ZERO price appreciation to the stock.
My thesis surmises that the Gander deal and going debt free should have added substantial price appreciation to the stock. This appreciation was entirely negated by the proposal of an R/S.
Guess we're just going to have to disagree on the topic.
The Market's Darwinian Theory will sort it all out eventually.
Vote No to the R/S
I have a question for the board (iHub board, that is):
People are clearly on both sides of the fence.
Despite your position on the R/S topic, is there ANYONE that DOES NOT feel that a financial audit should be performed first and foremost before an R/S is even considered?
So what Bob is telling you is that as of Dec 31st, 2010, he had absolutely no thought in his head that he would attempt the R/S?
Yet, he signed the document on March 14th knowing full well they were going to attempt the R/S.
This is walking a very fine line and still comes across as misleading to me.
I'll drop it for now, but this topic will certainly be revisited if the R/S passes.
Looks like the annual report was refiled today?
http://www.otcmarkets.com/stock/VTSI/financials
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=46633
Why am I implying that the R/S proposal caused the sell off?
Because of the two long red candles on 3/21 and 3/22 which started immediately after the proxy was discovered.
When something goes from working to broken, it's usually the thing that changed in between that caused the problem.
There are still some shareholders that don't even know about the proxy, little yet the shareholders' conference call.
Ethically (if not, legally), all of this information is material and should have been disseminated through proper news outlets to create a fair playing field for all shareholders.
This whole thing was a total botch from the start.
I'm willing to give management the benefit of the doubt with my remaining shares, as they (or their advisors) are currently grossly mis-informed.
I will vote NO to the RS, and allow management to present us with a more thought out plan.
Does anyone have any ideas on what VTSI receives for a single Gander Mountain Academy setup?
You are correct - my numbers were off a bit. But don't you think certain people knew about the proxy before some investors started receiving it? Maybe even weeks ago?
People started receiving the proxy on 3/21. We were trading at .095 at that time.
The current bid is .077 = VTSI has lost over $2.8mm in market cap so far
Clearly the 1 or 2 contracts we "might" lose aren't worth this haircut.
Voting No on the R/S
Looks like in a few days we might have some more shares to 'churn' through...
Wait until the selling is done if you're thinking about buying.
Posted after market 3/28/2011
Description: Previous Stock Value: Par Value Shares: 500,000,000 Value: $ 0.001 No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 500,000.00New Stock Value: Par Value Shares: 25,000,000 Value: $ 0.001 Par Value Shares: 975,000,000 Value: $ 0.001 No Par Value Shares: 0 ----------------------------------------------------------------- Total Authorized Capital: $ 1,000,000.00
AL43,
Since the R/S was "discovered", VTSI has lost over $4.5 MILLION in market cap.
From our recent highs to today's paint job close of .0795, we've lost $6.4MILLION in market cap.
My opinion? Screw the 1 or 2 purchasing managers that are financially retarded enough to deny a purchase based solely on a vendor's stock price
Vote NO to the RS and allow management to present us, the company owners and financiers, with a more intelligent offer. Then we can talk.
Virtual,
A+ post and I agree 100%.
Step 1: audited financials
I'm glad to see this board has come alive recently. More importantly, the posts have been well thought out and well presented (for the most part). Up until a few weeks ago, we would go days without a post.
The R/S is simply one of the poorest decisions I've ever seen attempted by management of any company.
We've already taken a 30% trimming on share price due solely to the potential of a R/S. If the R/S is approved, it will get much worse.
I'm voting NO on all items.
My hope is that management will take a step back, rethink things, and "get back to us" with a more well thought out plan.
Has anyone received proxy material from either ETrade or TDA yet? If so, was it snail mail or on-line voting?
5cap - fyi I don't have PM ability - not exactly sure what happened there.
"with 2x earnings minimum coming up"
Is this your interpretation of what was stated on the conference call?
The A/S is currently 500mm and the O/S is 158mm. Isn't 342mm 'available' shares room enough to wipe out the current shareholders? wink
Outside of that, I agree with your statement.
Actually, that was toxic financing.
I'm all for doing anything that will help the company. If anyone wishes to bounce this plan off of management, feel free. I haven't had any luck getting them (or IR) to respond to me.
Under no circumstances, however, will I vote 'yes' for any ratio R/S or any item that removes power from the common shareholder and allows management to operate in a vacuum - unless it's done with a simultaneous and planned up-listing.
Maybe they will take shareholder ideas more seriously after the proxy is voted down.
Great intelligent response! Keep up the great work!
Appears we have our first candidate that prefers to get schooled the old fashioned way. Watch and learn my friend.
You can rearrange items 1) to 5) in any order you would like, as long as they're all completed before 6)
But Yes, your suggestion does make sense :)
No one has to concur with my opinions. However, the market is voting and has already given VTSI a 30% haircut solely due to this proxy attempt.
Regardless of whether or not management believes that solely share price is a deterrent for future business over audited financials and SEC compliant reporting, they're failing to understand what a R/S is going to do to VTSI's share price and the way it will trade.
If this R/S is approved, you are going to see much worse than this as the hedgies come in and start shorting a $7.65 pinksheets stock into oblivion.
Hedgies will treat this stock as a long term loan. They'll short, collect the money from those shorts to use for their other operations, stay short, and hold the stock price down for as many years as they can.
This is reality folks.
5 Star Post ztect
My thoughts and plan of action exactly. The market is a voting machine, and people are already voting with their shares.
And on the contrary, they specifically state the opposite:
Although the Company does not now have any definitive plans to expand the trading markets in
which the Common Stock is traded, the higher trading price that should result from the Reverse Stock Split should help
pave the way for the inclusion in any additional trading markets that the Company may elect to pursue in the future.
Just so I'm clear - Don is suggesting that these are 3 recs that VTSI is potentially bidding on and these clients are said to care what stock price VTSI is trading it?
They don't care anything about market cap, corporate debt, VTSI being an un-audited, non-filing Pinksheets company?
Gander has committed a much higher value, long term contract to VTSI and managed to get beyond an .08 share price. They have much more to lose if VTSI can't fulfill their end of the deal.
Just so we're all clear, the only thing that will change with this reverse split is that VTSI will trade at 100x the share price that the stock was the day before the split takes effect.
Liquidity will be nil and it will be difficult to buy or sell.
We'll still be on pinksheets, we'll still be un-audited and we'll still be non-SEC filing. These are the items potential clients should be concerned about.
I'm still finding it hard to believe that any potential client would consider solely a vendor's share price.
IMO - the ideal situation is still the following:
1) un-gag the TA
2) become SEC reporting (whether on the Pinks or OTC) Ferris was correct in saying that the MMs of many OTC companies have stopped quoting on OTC which trigger the company to automatically get listed on Pinksheets where it's cheaper for MMs to operate (IMSC for example) Those companies still file with the SEC and remain SEC compliant.
3) have all quarterly and annual reports audited
4) appoint independent board of directors to pre-comply with nasdaq requirement
5) keep on moving the company forward
6) announce a R/S with a simultaneous nasdaq uplisting
One more note that I need to reiterate:
On average, VTSI trades about $17,000.00 worth of stock each day (even less if you take out the recent volume due to Gander and the proxy).
At $8.00/share, we'll be trading around 2000 shares per day. The MMs and Hedgefunds will eat us for lunch.
IMO - it's the wrong time to attempt this.
EDIT:
BTW - I do not feel that Bob and/or Don are enemies, or have any secret motives. I believe all of our agendas are aligned. They've done wonders for the company up until now.
My feeling is that they're just being ill-advised.
Losing business as in not purchasing simulators because Virta is a publicly traded company that trades at 8 cents?
JMO - I highly doubt it. Gander, L3 and LM were able to look past this, and government agencies could care less.
After the R/S, they'll still have every characteristic of a penny stock (non-audited, non-SEC filing, PS exchange), just a higher price and extreme volatility.
If anything, lack of audited financials could be causing them to lose business. It's definitely deterr ing retail investors from buying, hence our typically lethargic volume.
Larger companies may want absolute proof that the company they're buying from is financially sound and will be able to fulfill their end of the bargain.
Without a concurrent uplisting to Nasdaq, I'm failing to see any positives with the items in this proxy.
The appropriate course of action should be:
1) un-gag the TA
2) become SEC reporting (whether on the Pinks or OTC) Ferris was correct in saying that the MMs of many OTC companies have stopped quoting on OTC which trigger the company to automatically get listed on Pinksheets where it's cheaper for MMs to operate (IMSC for example) Those companies still file with the SEC and remain SEC compliant.
3) have all quarterly and annual reports audited
4) appoint independent board of directors to pre-comply with nasdaq requirement
5) keep on moving the company forward
6) announce a R/S with a simultaneous nasdaq uplisting
It could take a year or longer, but what they hay, people have been waiting a decade already and the company will move forward no matter what exchange they're on
"GAAP" - "Governmental accepted accounting practices", lol
1) With regards to lowering the A/S in the same proportion as the O/S: Great - but they still have 342mm shares (3.42mm post split) to play with. Twice the current O/S.
2) No definitive plans for audit (although they said they received an estimate), no definitive plans for Nasdaq uplisting.
3) Some proxy items require 2/3rds vote to pass, others 3/4 votes to pass.
4) Expecting 5 Gander rollouts by end of May as previously announced.
5) They said they would un-gag the TA! No reason not to because they aren't planning to dilute beyond employee incentives.
6) Would not give out details about their securities advisor(s)
7) If R/S is approved, stock options would under-go the same conversion.
Listen, if we RS to $8.00, the stock will become completely illiquid. The spread will be 5%-10%. The hedgefunds will come in and short this into oblivion.
The company will still be on the Pinksheets and non-audited. This move will not accomplish a thing besides destroying the share price.
It's not the right for any of these moves. I have to question the experience and intentions of their advisors in this matter.
I'm voting no on all accounts.
Some people are just selling into your bid, but not with enough shares to completely take out your bid. The ask won't drop to .072 until all of the shares there are gone and someone is willing to sell at .072
ehhhhh - what were you expecting to happen?