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LOL. So, how much cheaper do you want them to get? They are already below a penny.
There still appears to be quite a bit of shares that the convertible debt holders can sell into the bid. I don't think that they are anywhere near erasing the debt from toxic financing.
Looking at the chart you can see the accumulation/distribution line shows major distribution taking place. That would be the convertible debt holders flooding the market with shares.
https://stockcharts.com/c-sc/sc?s=SIMH&p=D&yr=1&mn=0&dy=0&i=p97172913377&r=1420320903836
There were quite a few opportunities for long believers to buy shares offered at 0.01 all week. I didn't see very many people stepping up to the plate to snap those cheapies up.
I wonder why?
After doing some number crunching, it appears likely that the current SIMH share structure is nearing its authorized share count of 250 million.
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.
I'd expect to see an 8-K, sometime in the near future, indicating that the number of authorized shares has been increased (probably to something around 1 billion shares) followed by another reverse split later in the year.
SIMH is currently undergoing a paid promotional campaign (often referred to as a pump & dump), scoring 19 touts during the last 24 days.
http://www.pumpsanddumps.com/
Question: If this is such a promising company, why do they need to hire promoters to tout the company?
Answer: To offload worthless shares on unsuspecting and uninformed investors, acquired through toxic financing arrangements.
Visiomed Group is a $27.5 million euro company ($33 million USD). Sanomedics is a $1.1 million USD company.
http://www.boursorama.com/cours.phtml?symbole=1rPALVMG
Visiomed Group also has a 100,000 unit order in the works for their thermometer:
http://www.visiomed-lab.com/images/files/finance/visiomed%20group%20cp%20thermo%203%20vdef.pdf
What does Sanomedics have? Last I heard they sold 100 units to the CDC. No updates since.
Guess who wins here? Seems like a no-brainer, IMO.
Dude, we know that they have no money. We know that they have engaged in floorless convertible, death-spiral, toxic financing. We know that the outstanding shares have gone from 18 million to over 113 million in the space of a few months.
We don't know that the product is selling, other than a $501,000 order disclosed in October. Ask yourself this question: why would they be so excited to announce that order back in October, and yet (if the product is selling as you say it is) not release additional sales numbers?
The CEO update released today was lame, IMO. Maybe the sales just aren't there?
It looks like Caregiver has some serious competition.
http://finance.yahoo.com/news/visiomed-reveals-ebola-fighters-weapon-195845186.html?soc_src=mediacontentstory&soc_trk=tw
<<Just last week 6,500 devices were delivered to the OFDA / USAID for use in Liberia and Sierra Leone. Already an international reference, ThermoFlash® by Visiomed was first selected by NATO for use during the avian flu season.>>
<<Visiomed is certified by Oseo Innovation and has been recognized with the Technology Fast 50 Deloitte Award and the Technology Fast 500 Deloitte Awards for the EMEA with 14,169% growth. In 2013 the company made a global turnover of $14 million.>>
There is absolutely no reason why this company would back back their own stock. First of all, they have no money. Secondly, they have no money, and lastly, they have no money.
The idea of a cash-strapped, sub-penny stock buying back their own shares is one of the most ridiculous ideas I have read on this thread. You can't help but smell the desperation here.
The quarter just ended yesterday, and you expect them to post their 10-Q financial results in two weeks? Good luck with that!
$CELH Our single best idea for 2015. Here's why:
http://www.investorshub.advfn.com/Celsius-Holdings-Inc-CELH-8224/
$KO $NSRGY $PEP $DPS $MNST $CELH If you invest in beverage companies, these are a must read http://stks.co/b1QWa http://stks.co/d1QSO
It really doesn't matter to those of us who have no money invested here. We're merely spectators, since we know better than to fall prey to the vultures who take advantage of the uninformed and misinformed.
From what I can tell, very few who have invested in SIMH have done any sort of extensive due diligence on this company.
It's not about a press release and a CNN video. That's the hype that has sucked many people in. Due diligence goes far beyond that. It requires many hours of hard work and research to uncover all of the facts.
Do you really believe that there are actually people who would short a stock at 0.009?
They would have to be betting on the bankruptcy of SIMH to make any money. I don't think that is a realistic outcome for this company.
Even under a bankruptcy scenario, the most they could make is less than a penny a share. Hardly worth it, IMO.
It's amazing to me that so many people here cling to the idea of the big, bad short-sellers who are driving the stock down. It's kind of like those who believe in the urban legend and myth of the paid basher.
Both are a fabrication of the penny-stock players who need to find a scapegoat for their poor decisions.
Read the 10-Q and the company financials to understand what is really going on here.
Take a look at the 10-Q and financials and you'll see what is obvious. This is a troubled company that has mortgaged its future to toxic financing. The story has been played out, over and over, with these types of floorless convertible debt arrangements.
It never has a happy ending for shareholders as the continuing dilution destroys the equity base over time. No reason to believe things will be different with SIMH.
An ostrich can't see anything with his head buried in the sand.
<< A frog sitting in a well can only see the sky big as the well. It's time to jump out and take a look at the bigger picture.>>
Even a PR won't help much. Any attempt at a move up will be met with more selling pressure from the convertible debt holders. Besides, most of the longs here are trapped, and will use any price increase to bail as well.
I don't see any chance for a sustained rally with the share overhang from the toxic financing.
At some point they will have to do one of two things:
1. Increase the number of authorized shares from the current limit of 250 million, or
2. Effect another reverse split, on the order of 1-for-10 or 1-for-20.
It does not appear that either of these choices bode well for SIMH shareholders.
It sure doesn't look like a bottoming process to me. A bottoming process would entail a long period of the stock price going sideways in order to establish a base. A rule of thumb is the longer the base, the better then case. Nothing here but lower lows and lower highs as a result of the relentless dilution pollution taking place in SIMH.
Don't forget that 99% of SIMH investors are underwater on their position. We should see quite a bit of selling over the next 10 days by those investors looking to book a tax loss for 2014.
The weekly chart of $CELH shows a bounce off the 200-day moving average at 0.38 and a MACD crossover. The stock closed at 0.54 on higher than normal weekly volume. The next target is the 50-day moving average at 0.60. This will definitely be one to watch next week.
http://stockcharts.com/h-sc/ui?s=CELH&p=W...2525619446
I guess after thinking it over, you decided that this would have been a very poor decision. I agree with your choice not to buy anymore, and not trying to catch a falling knife.
<<thinking of adding another 2M if it drops below penny>>
Yes, but it never happens with companies that engage in toxic, death-spiral financing.
I disagree. In the case of SIMH "the house" is the convertible debt holders. They are in complete control and hold all the cards.
A real investor most likely would not invest in sub-penny stocks. What you are doing is called gambling, and the odds are clearly not in your favor. SIMH is a rigged game to take money away from unsuspecting and uninformed people. You'd be better off going to Las Vegas than throwing your money away on this crapshoot.
We are finally starting to see some volume in this stock. Big trades at the ask all day. Volume always precedes price. Worth watching.
Doc, none of the shares being sold would appear to be going directly to the company. If they were selling shares, they would be required to file a registration statement with the SEC. So far no such filing exists. What you are seeing is, most likely, the ongoing conversion of debt to equity by the toxic financiers, who are then dumping shares into the market.
They might, very well, have a "plan for production", but the question remains where will this company with millions in toxic debt and very little money in cash and receivables, come up with financing to manufacture and build the inventory which you speak of as being so important?
That all sounds nice, but unfortunately nobody knows the terms of the distribution agreement, so at this point I would not rely on maybe's and what if's.
Price is the final arbitrator of value. If investors felt that this company was worth more, they would be bidding up the price. It ain't happening!
I said in one of my previous posts that the news of a distribution agreement with Henry Schein was a positive:
http://www.investorshub.advfn.com/boards/read_msg.aspx?message_id=108914858
However, to infer from that one announcement, that huge sales and revenue numbers are just around the corner is a mistake IMO. There is still a lot of work to do before Henry Schein can even begin to distribute product.
No one has yet to answer the question of where SIMH will get the working capital to manufacture product and build inventory? Their financials show a very distressed company that has been unable, in the past, to raise capital on any sort of favorable terms.
A few P.O.'s are not going to change that IMO.
Purchase orders can be cancelled. Sales and revenues are reported only after delivery of product to the purchaser. There's a big difference between the two.
It has already been pointed out that Henry Schein is a billion dollar company. Why does anyone think that the revenue generated from the sale of a few Caregiver Thermometers is that important in the overall scheme of things for them?
It's such a small percentage of their total revenue that it is almost insignificant. A distribution contract, in and of itself doesn't mean anything. Sales and revenues are the only thing that matter.
The idea that somehow purchase orders lend credibility to SIMH is nothing but wishful thinking, IMO.
Yes, desperate certainly sums things up here!
Here, this guide to registration statements may be helpful.
A company MAY NOT sell shares to the public without first filing a registration statement.
Registration Statements:
Registration statements are of two principal types: (1) "offering" registrations filed under the Securities Act of 1933, and (2) "trading" registrations filed under the Securities Exchange Act of 1934.
"Offering" registrations are used to register securities before they are offered to investors. Part I of the registration, a preliminary prospectus or "red herring," contains preliminary information that will be in the final prospectus. Included in Part I (or incorporated by reference) in many registration statements are:
Description of Securities to be Registered
Use of Proceeds
Risk Factors
Determination of Offering Price
Potential Dilution
Selling Security Holders
Plan of Distribution
Interests of Named Experts and Counsel
Information with Respect to the Registrant (description of business, legal proceedings, market price and dividends on common equity, financial statements, Management Discussion and Analysis, changes in and disagreements with accountants, directors and executive officers, security ownership of certain beneficial owners and management and certain relationships and related transactions).
Part II of the registration contains information not required in the prospectus. This includes:
Expenses of Issuance and Distribution
Indemnification of Directors and Officers
Recent Sales of Unregistered Securities, Undertakings Exhibits and Financial Statement Schedules
"Offering" registration statements vary in purpose and content according to the type of organization issuing stock:
S-1 - Companies reporting under the 1934 Act for less than 3 years. Permits no incorporation by reference and requires complete disclosure in the prospectus.
S-2 - Companies reporting under the 1934 Act for 3 or more years but not meeting the minimum voting stock requirement. Reference to 1934 Act reports permits incorporation and presentation of financial information in the prospectus or in an Annual Report to Shareholders delivered with the prospectus.
S-3 - Companies reporting under the 1934 Act for 3 or more years and having at least million of voting stock held by non-affiliates, or as an alternative test, million of voting stock coupled with an annual trading volume of 3 million shares. Allows minimal disclosure in the prospectus and maximum incorporation by reference of 1934 Act reports.
S-4 - Registration used in certain business combinations or reorganizations.
S-6 - Filed by unit investment trusts registered under the Investment Act of 1940 on Form N-8B-2.
S-8 - Registration used to register securities to be offered to employees under stock option and various other employee benefit plans.
S-11 - Filed by real estate companies, primarily limited partnerships and investment trusts.
SE - Non-electronically filed exhibits made by registrants filing with the EDGAR Project.
N-1A - Filed by open-end management investment companies.
N-2 - filed by closed-end management investment companies.
N-5 - Registration of small business investment companies.
N-14 - Registration of the securities of management investment and business development companies to be issued in business combinations under the Investment Act of 1940.
F-1 - Registration of securities by foreign private issuers eligible to use Form 20-F, for which no other form is prescribed.
F-2 - Registration of securities by foreign private issuers meeting certain 1934 Act filing requirements.
F-3 - Registration of securities by foreign private issuers offered pursuant to certain types of transactions, subject to the 1934 Act filing requirements for the preceding 3 years.
F-4 - Registration of securities issued in business combinations involving foreign private registrants.
F-6 - Registration of depository shares evidenced by the American Depository Receipts (ADRs).
F-7 - Registration of certain Canadian issues offered for cash upon the exercises if rights granted to existing security holders.
F-8 - Registration of certain Canadian issues to be issued in exchange offers or a business combination.
F-9 - Registration of certain investment grade debit or investment grade preferred securities of certain Canadian issues.
F-10 - Registration of certain Canadian issues.
SB-1 - Registration for certain small businesses.
SB-2 - Registration statement for small businesses. No aggregate offering value of securities.
"Trading" registrations are filed to permit trading among investors on a securities exchange or in the Over- the-Counter market. These Registration Statements do not include a prospectus. Registration statements which serve to register securities for trading fall into three categories:
1. Form 10 may be used by companies during the first two years they are subject to the 1934 Act filing requirements. It is a combination registration statement and annual report with information content similar to that of SEC required 10-Ks.
2. Form 8-A is used by 1934 Act registrants wishing to register additional securities or classes thereof.
3. Form 8-B is used by "successor issuers" (Usually companies which have changed their name or state of incorporation) as notification that previously registered securities are to be traded under a new corporate identification.
Prospectus
When the sale of securities as proposed in an "offering" registration statement is approved by the SEC, any changes required by the SEC are incorporated into the prospectus. This document must be made available to investors before the sale of the security is initiated. It also contains the actual offering price, which may have been changed after the registration statement was approved.
Not true. If the company were selling shares to the public in a secondary offering they would have to file the appropriate registration documents with the SEC. None of the shares currently being sold appear to be for working capital purposes, since there have been no filings with the SEC recently to indicate that the company is selling shares to the public.
The point is that their financial situation is precarious, at best. They have extremely low cash levels, and a massive working capital deficit that continues to grow larger and larger.
Those who are relying on substantial sales of Caregiver thermometers must believe that the company's financial situation has somehow improved overnight. Otherwise, how can they pay for the inventory to sell?
The important thing to understand is the history of the company's previous financing activities. If they have not been successful in raising capital on favorable terms in the past, how, all of a sudden, are they going to do a complete about-face and attract additional financing on any kind of favorable terms?
They still owe a massive amount of debt to the existing convertible note-holders, and any new monies will, most likely, be subordinated to the existing debt. Who is going to want to give them money, knowing this?
My experience is that once a company climbs into bed with toxic financiers, it is extremely difficult for the company to extract itself from the death-spiral nature of such an arrangement.
While not impossible, I would say that it is highly improbable that Keith will be able to pull a rabbit out of his hat.
I would look for dilution to continue to the authorized share count, followed by the dreaded reverse split. Lather, rinse, repeat. It happens all too often with these kinds of companies.
Directly from the 10-Q dated 11/14/2014:
At September 30, 2014 our cash on hand was approximately $40,000. At September 30, 2014, we had a working capital deficit of $5,653,407 as compared to a working capital deficit of $3,288,322 at December 31, 2013.
Since our inception in 2009, we obtained our liquidity principally from approximately $4.2 million principal amount of cash advances from CLSS, a company owned by a former officer and one of our shareholders. The Company has executed promissory notes totaling approximately $755,000 as of September 30, 2014 with CLSS. Each note (a) bears annual interest ranging from 8.0% to 9.0% (20% upon the occurrence, and during the continuance, of an event of default), is convertible into our common stock at a fixed conversion price of $0.50, and is not pre-payable by us, and (b) is subject to a security agreement under which all of our assets secure our loan repayment obligation. Additionally since 2013 we have also had to rely upon third party lending as an additional source of capital. As of September 30, 2014, the total of the third party debt borrowings, net of discount, was $2,145,021 as compared to $300,762 as of December 31, 2013. The increase primarily consisted of $1,055,504 due to Redwood. During October 2014, the third party debt borrowings have been reduced by approximately $1,000,000 through common stock share conversions.
Our net revenues are not sufficient to pay our operating expenses and satisfy our obligations as they become due. Although we expect that our revenues will continue to increase from both our historic operations, there are no assurances our revenues will increase to a level to fund our needs. In addition, even if we succeed in substantially increasing our revenues, we still need substantial additional capital to pay our obligations as they become due and finance our business activities on an ongoing basis, 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. In October 31, 2014, the debt to Redwood and the related parties was reduced by approximately $1,000,000 from debt conversions to equity.
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.
Even if we are successful in raising the equity financing noted above we will require substantial additional funds to finance our business activities and acquisition strategy on an ongoing basis. 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.
So, again, my question is where will they obtain the working capital to finance the costs associated with manufacturing large numbers of Caregiver thermometers?
Any guess would be pure speculation, and therefore have no real value to anyone. If you want the most reliable information, I suggest reading the current filings and financial statements. If you dig deep enough, sometimes you'll be surprised at what you might find.
I still would like to know where they are going to get the working capital for raw materials, and the contract manufacturing costs, associated with all of these Caregivers that you expect them to sell?
No one seems to have an answer to that very important question. I wonder why?
Well, unfortunately with SIMH you have neither. Do you realize what it would take for them to reach $50M in revenues? If retail is $300, assume they would sell them wholesale at $150. That means that they would have to sell over 333,000 units.
So you are saying that they can go from selling 100 Caregivers to the CDC to selling hundreds of thousands of these virtually overnight?
Even their announcement of $501,000 in recent orders pales in comparison to your outlandish projections of $50M.
My first question, to you, is where are they going to get the capital for raw materials and manufacturing of all of these Caregivers?
Distribution means nothing without product, and product requires working capital. Business 101.
Let me try to attempt a clarification on the issue of short selling. There is nobody in their right mind that would intentionally short a penny stock at .01 or .02 cents, as a speculative bet, since the most they could make is a few pennies.
Rather, where there most likely is short selling is from the convertible debt holders. Remember this is floorless convertible debt, meaning that, in reality, there is no floor in terms of a price at which they can convert.
Also, remember that they are getting their shares at a substantial discount to the market price.
Here are the mechanics of how this all works. The convertible debt holders can short the stock, at let's say .02 cents in the open market. These are the trades that you see on Level II. Now they are short shares that they do not yet own (naked).
Since they have to abide by T+3 settlement rules, they must deliver the stock that they sold to someone else (the buyer) within 3 days.
They simply exercise their conversion privilege on the notes, get stock from the company representing the shares they've already sold, and deliver those to the Transfer Agent within the 3-day settlement.
They are no longer naked short, since the shares have been delivered to the buyer, through the TA, by the settlement date.
Forget all this nonsense of people naked short-selling to speculate on a .01 or .02 cent stock. It's pure nonsense. The risk vs. reward just is not there for anyone with even a modicum of intelligence.
I hope this helps explain what is most likely going on daily with this stock.
Good luck to everyone.
Then, I would make an appeal to IH Admin to have them post the news as a sticky note. Tell them that the existing moderator team is falling down on the job. It can't hurt to try. Good luck.
Why not sign up to be a moderator and sticky the news yourself?