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On a happier note... perhaps there will be more liquidity and volatility in STTK shares, making it more interesting for new investors to climb on board.
Unbelievable! 16,189,848 shares sold today... which at a .0018 average PPS works our to about $29,000 in value traded today.
Again, I understand the dilution - even as I don't at all like it, But,who wants the stock so bad that they'll pay these ridiculously low prices for it? One wold think they are either shorting the heck out of this stock - and hope to drive it further down... or, they are hoping for another run. This is crazy.
Has anyone else anything like this before - with a sharp plummeting PPS for a stock that just reported their third straight quarter of growing customers and revenues, and decreasing costs?
I understand how the convertible debentures are causing this dilution scenario that's playing out to reduce the price of our stock. What I don't get is where all the buyers are coming from?
I sent another note to Michael Hill. He doesn't need to respond directly back to me, in case he's monitoring this site... but I asked him to consider publicly releasing more product and partnership information.
Assuming they have some real meat on the bones, such PRs might increase investor confidence and thereby keep the PPS up - which would reduce the amount of share-holder value dilution that will occur if these low prices are sustained for any length of time.
I could envision a scenario where either a prospective buyer of the company or even a competitor might try to broker a side deal with ASC Recap or Redwood.
The buyer might do this to obtain control over the company to reduce their cost of acquisition; while a competitor might be interested in destroying the company's ability to obtain new financing... causing the company to fold.
The fact is, somebody is selling very cheaply - and that can only be ASC Recap or Redwood, and someone else has been willing to purchase them - even as the PPS is plummeting.
What is strange to me is we're not seeing enough buyer interest on the Bids in Level II to cover the Offers and trades that are occurring. It does give the impression that the real Bids are being kept secret and handled privately by a broker representing ASC Recap and/ or Redwood.
I'm open to other ideas though.
I suppose anything's possible. This slide is not anything I would have expected for a company that has officially posted posting financials for three months in a row.
I know they are not profitable yet; but, on the other hand, they continue to demonstrate significant revenue and customer growth with decreased costs.
But, if I'm a new investor to this company, looking at the charts, I don't think I'd take the risk of investing. So, who is buying these very, very cheap shares is a real mystery.
We'll have to see what the short sales are for the company today. What I've noticed over the past several months is the stock PPS takes a nose dive every time we see a certain naysayer commenting on the board.
Just my opinion...
This is a bit discouraging to say the least. Only ASC Recap or perhaps Redwood would have shares to sell in the .0025 range. So, dilution unfortunately appears to be back.
The shorts were out strong Friday... and it looks like they were covering today. Perhaps a little dilution again today.
Well, we have until October to worry about that. (i.e. Redwood can't convert their shares until then at the earliest) If Mr. Hill is serious about keeping this company financially healthy, he'll release the new products in time to show revenue growth, announce key partnerships, continue to pay off ASC Recap, and strike a new deal with Redwood.
All of this is what I believe he plans to do. We'll have to see if he can pull it off. In the meantime, my money's still on STTK, and Mr. Hill.
Some Flipper has been sitting on the Ask all day offering 606K shares at .0039... hoping you'd change your mind and raise your bid. ;)
aghedo24... if you've read through the 10-Q, you'd realize his hands are tied. Those deals were done in their early days when they didn't have the history nor financial performance data to obtain other means of financing.
Despite that, the Company's managed to retire more than 50% of their debt to ASC Recap. On top of that, their revenues took off in month two of the quarter... so assuming they can keep the same level or better of performance, the next quarter will be even better.
In the meantime, all measures of performance are up for the third quarter in a row. See summary below:
1234... very nice summary of where you think we are with this stock. Thanks,
Cool! I've always been on the other side of the fence, building IT companies. Investing in them is still new to me. I'm learning as I go and appreciate all the information and thoughts we are sharing on this board.
BI, I should have caught that myself. Here is the Going Concern statement from Last Quarter's 10-Q:
Nervous... too funny. I just read your post after I submitted mine. We both have the same concern.
I've been a VP level officer in a number of IT companies... all the way from running sales in a start up through its successful IPO, to several mid size firms, and even running sales and marketing for a Division within a billion dollar software company. If it's me running the show, I would take a very aggressive short term strategy to further reduce expenses and direct all resources to growing revenues...but, I certainly wouldn't concede or give in.
I've helped turn around IT-based companies in much worse straights than this company. The only issue they have is the dilutive financing they have. In a Machiavellian sense, they shouldn't care. All that matters in the long run is achieving profitability, or building and proving the business model for acquisition by larger company that can sustain the costs.
In fact, for a start-up, this company has a lot going for it. Proven products... a growing listener and content provider customer base... increasing revenues per listening minute... decreasing costs... and sustained revenue growth... for three quarters in a row!
So, I'm just not getting why that section was written as negative as it was. It's almost as if the CEO took a position that would further keep the share price in the mud. That won't help stop the dilution... nor do I see how it will it make the company an attractive acquisition target.
Baldinvestor... I'm with you, 1234, LoadnLock and the other Long investors. I put my money down, and I'm in this for the long run. The only real concern I had today was the tone set in the "Going Concern" sections. What do you make of that?
Thanks,
I agree the dilution is not good - although it could have already been a lot worse. It's interesting that they are actually including more information, in the latest 10-Q, on the amount of dilution that can occur if the stock price continues to fall. But, I'm most concerned about the statements made in the "Going Concern" sections of the 10-Q.
Personally, I still give the benefit of doubt to Michael Hill. I think he genuinely wants this company to succeed. The financing he received from ASC Recap probably sounded great when he first got the company up and running... and then he was stuck with it, and similar financing, once he found out how challenging it is to build a profitable tech company.
The problem he now faces is that it will be tough to get decent financing until he can demonstrate profitability, or at least the means to achieve it. Even if he got financing to get rid of ASC Recap and Redwood, he still doesn't have enough revenue flow to show the company can make it.
Looking at their Balance Sheet, they have got to solve the revenue side of the business problem ASAP. And, I agree, they really do need to rethink the amount they are paying themselves - not so much because of the impact it has on their balance sheet... but because it sends the wrong message to investors about their commitment to making this company successful, as opposed to simply using it as a vehicle to make an above average living.
If they want to save this company, they need to reconsider their executive salaries... and show us their faith in their ability to generate wealth through their STTK share holdings.
Apart from that, they look like they have done a pretty decent job at cost containment. If I were counseling the company, I'd suggest they redirect all their resources to working on only those products and business activities that will help generate more revenues in the short run, and put on the back-burner anything else that is a "future" nice to have.
But, I suspect he doesn't need me to tell him that.
Another great piece of news!
Okay! That's definitely doable. The OS was my one concern. Now, we just need more investors to discover this little Jewel of a company.
AIMO... and GLTA
I thought I had heard they weren't taking a salary. 1234 or LoadnLock may know.
The best thing that happens with this company is the Q3 financials come out showing significant revenue growth - even better, profitability, along with new partnership announcements, and the price runs to where the diluters are not a significant factor anymore.
I can still dream...
Looking at L2, it looks like we have someone trying to either hold the stock at .0039, or to flip it at .0039.
Software development is generally a relatively fixed cost in an IT based company. As one product matures (i.e. as is occurring with RadioLoyalty), most companies simply transfer their software developers on to the new products/ feature enhancements.
If the company is at all sophisticated in the design of their software development tools - and in my emails with Michael Hill, he strikes me as a pretty competent developer - then they can do a lot of new design and development without adding more developers.
I'm also encouraged that RoboFruit is a development tool for advertisers... meaning they should have a handle on these types of things.
So, hopefully, they haven't taken on many more developers, if any, to implement the new products/ features that we are expecting.
By the way, here's an example of Michael Hill's communications with me on his development background:
It actually makes sense to report quarter or previous year's quarter's reports as businesses often have cycles within a year...
For example, this is especially true in Retail where the Christmas Holiday often generates the bulk of a company's sales for the entire year.
Snizz... what's your gut feel on the PPS with the next bounce? Do you think we'll hit the 2 to 5 cent range of the past two runs - earlier this year/ end of last year?
How were their 6.5 million shares to trade on Friday in the low .003s when we were trading at double that for most of the past week. i don't5 get it.
Should have held on for less... someone else hot 1.4 million shares for .0038.
I'm so ready for the 10-Q and partnership announcements to get us out of this pit.
We apparently have some folks fishing for some really cheap shares. I guess we'll see if the MM/ diluters still have some to give up.
Yeah, it's interesting to see the two Asks of 1,568,00 and 1,134,300 respectively at .0006. Blocking attempts? Or, some flipper(s) hoping for a quick profit before or as the Q-10 Report comes out.
Seattle1980... someone may have answered your question already... but the ultimate answer is how they monetize advertising. This is a real advantage to content providers who have a tough time making money on streaming their own radio content. It also makes it easier for advertisers who only have to work with one company, like StreamTrack, to selectively hit any number of radio markets by location, age, content, interests, etc.
If you read the June 3rd PR from StreamTrack, titled StreamTrack Releases Duration Based Video Ad Algorithm Technology, the company notes they are "the first company to replace audio advertisements with video advertisements in a live broadcast radio environment." The company also noted "revenue per listener hour increasing from an average of .093 cents in calendar year 2013 to .127 cents for the two months following release, an over 35% improvement." Since the content providers share in this revenue, it's a real advantage to both StreamTrack and their client radio stations. It's also an advantage to advertisers since video impressions form stronger impressions on listeners than audio ads, and they are willing to pay more for them.
1234xyz and Loadnlock can tell you more about upcoming features for Listeners. However, the reason I'm attracted to StreamTrack's business model is that I think it's a much more sure path to profitability... as so many content providers have a tough time making a buck in streaming their content.
They have to build and maintain the IT infrastructure for streaming content, attract advertisers, develop/ publish content, and attract listeners. All those things are expensive to do for one station. RadioLogic lets radio companies focus their resources on their core business... developing and publishing audio content.
In the way of validation, I have a good friend in Southern California (Venice) who is an SVP for a television company that provides original programing to most of the major network and cable companies... and monetizing content - especially in the relatively new world of mobile - is a key problem he says his industry faces.
Watchthis.com will take the RadioLogic business model to online television viewing.
I'd love to see this company acquired. Maybe they would be interested in StreamTrack's Patent... But, I don't really see this fitting Opera Media's business plans. They are focused on ad placement through other companies' web sites and mobile devices... not attracting viewing customers themselves. And, if they did change their model, why wouldn't they purchase Pandora? They are also a partner of Opera Media.
This partnership adds value to StreamTrack's client radio stations, as Opera Media is about delivering ads and monetizing ad revenues across all StreamTrack's client radio stations. i.e. adding more revenues to each listener hour. Streamtrack also receives more dollars per listener hour through this partnership. In that regard, this partnership is fantastic - as it should help drive revenues and profitability.
However, I think we need to look to the large content providers as the companies' that would have the most interest in StreamTrack. Google, Yahoo, possibly Sirius or XM Radio if they decide to have a larger Internet presence, or even Apple... any company that needs to attract and keep more customers on their mobile platforms and web sites.
I also think we need to see some partnerships with Samsung and/ or other major mobile device or mobile telecom companies... so that new mobile phone devices have StreamTrack prominently displayed and accessible among their mobile applications.
These are the next partnerships I'm looking forward to seeing.
My two cents...
I don't get this morning's spread... why is it so great... nearly a tenth of a cent. Any one have a clue?
Of course... as soon as I wrote this, the spread closed the gap down to .0005. Sometimes I thinks the MMs are watching this board. ;)
Looking at L2, it appears at 13:22 a 2.3 million STTK share purchase at .0038 may have finally blown the lid off of the current dilution. 6.4 million volume so far today, and the PPS has risen steadily since to .0059.
After all these months of waiting, it would be awesome to see the start of the run we've all been waiting on. The timing is right with the recent Opera Media Works partnership announcement and the next 10-Q showing 2014 Q3 Fiscal Results coming up just around the corner.
I have Scotttrade... and they make you wait three days when buying Penny stocks.
Still seems like there's a lot of cheap shares available though.
You should be able to wire money for same day service. I've done so twice already with STTK.
Thanks cccc17. For me, I'm happy to see the company coming up with creative ways to monetize mobile advertising. However, while their listener growth in RadioLoyalty is extremely solid, I still want to see how they plan to drive even listeners and viewing customers to RadioLoyalty and Watchthis.com. That's the other piece of the partnership puzzle I hope to see in the days, weeks and months upcoming. Then, all these advertizing monetizing activities will really drive profitability.
What do you speculate the Game Changer will be?
Is this correct? It appears no shares have traded yet this morning.