Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
The single best moment in the history of analysts' calls occurred this morning in the NNDM call as follows:
Unidentified Analyst:
And my final question is, is the eventual goal for Nano Dimension to be bought out, I'm personally hearing KLA is on your radar. So I just wanted to share that with you. Thank you.
Yoav Stern:
Okay. Let's start from the third question. No, bullshit.
All I can say is that Yoav Stern is the greatest CEO on the planet. That conference call was a true classic among conference calls. He assumes his shareholders are intelligent enough to understand what he is doing with the company and how he is building it, and if they're not, he just doesn't care!
In the words of Chicago (Robert Lamm), "Only the beginning, only just the start."
Good decision. Why more people don't see how dominant this company is going to become during the next decade is beyond me.
At some point, I suppose it comes down to does one believe in the company's management or not. I still do, even though there are days when I think I should take my remaining 40% gains and run to another opportunity. Oddly enough, there's something about Leandro that makes me believe in his commitment to create a very successful company. Call it intuition, I guess.
Hey Peter,
I just this moment got an exactly identical response to the one received by Knux to the question that he posed about the 36 million share issuance. I don't think they will dilute much further for a couple of reasons: First, assuming the leadership team holds a large number of shares, it would also dilute them, and secondly, the $1.6M demand note at 0% interest held by the 49% shareholder of SwissLink really amounts to a temporary capital contribution, because there's no way the lender would ever call it, and it will likely be paid back to them gradually over time as the company achieves profitability and positive cash flow. I have a feeling there is more significant money behind this venture than meets the eye, and I find that to be reassuring if that is, in fact, the case.
I haven't gotten a response yet, but I imagine it'll be the same as you received. The "various price points" seem all to have been at $.10 per share. Maybe they don't think we can read the statement of shareholders' equity. Let's just hope that those 36 million shares are being held and not dumped into the open market.
I agree with your comments. I'll post their response to my question concerning this matter when I receive it.
Basically because if they had issued those 36 million shares even at $.30 instead of $.10, they would have had $7.2 million more to spend developing the company, and would not be as likely to need to issue more shares to enable the company to meet its cash needs.
Also, when they do reach profitability, let's say they make $4,000,000 of net income in 2021. The EPS would be $.04 with 100 million shares outstanding, and $.0294 per share with 136 million shares outstanding. If the share price reflects a P/E of 30 that might be assumed for a rapidly-growing company, the share price would be $1.20 with 100 million shares outstanding as opposed to $.88 with 136 million shares outstanding.
I asked that question in the public forum on the Ambassadors site, and was told yesterday to e-mail them privately with that question, so I did. I'll let you know when I receive a response.
I've just posed the question below in what is known as the "Bear Corner" over on the Ambassadors site, where all the hard questions are supposed to be asked. I'll post what I get as a response.
"Another question - almost 36 million shares were sold in Q1 for proceeds of nearly $3.6 million at a flat $.10 per share. I had thought that the company could sell them into the market directly at the then-existing market price, which at any time throughout the first quarter would have been considerably higher than that. Why were all the sales made at a flat $.10 per share?"
Here's my dialogue with iQSTEL on the Ambassadors site regarding the investment banker question:
jerseyboy:
When will an update on engaging an investment banker that was
scheduled for the end of April be provided?
iQSTEL:
Because we try to be transparent, we announce what we're working on hoping that everything comes to successful fruition in time. Unfortunately, it doesn't always work out that way. In this case, negotiations and discussions have taken longer than expected and because of non-disclosure agreements, we can't mention any names at this time until something is fully consummated. But just like our financials have proven, we follow through on everything and we will continue to show the growth in that area as well as an investment banking partner at some time in the future.
I may be wrong, but once the shares are sold by the company into the market, I don't think they have any way to track their disposition unless they are sold with restriction, which I don't believe was the case with these shares.
They sold all of them in Q1 and received $3,586,250 in proceeds per the statement of shareholders' equity in the 10-Q, from which I have excerpted the following:
Shares 35,862,500
Amount $35,863
Additional paid-in Capital $3,550,387
Total $3,586,250
It's largely to related parties - Footnote 5 shows $1.6M to the 49% minority shareholder of SwissLink at 0% interest, and another $200K to the same party at 5%. Another $80K is due to Alonso Van Der Biest at 16.5%, maturing in July 2021. There is also $245K in notes to unrelated parties, the largest of which are $106K to Darlene Covi19 at 0% and $102K to Martus at 5%.
Sounds good. I didn't spend as much time going through all of the detail as I probably should have.
Peter,
Can you check out my recent post? I'd really appreciate your input.
It has changed for the better. Their gross margin was 3.4% for the 2021 quarter, which isn't stellar, but it's a lot better than the negative 3.2% gross margin they incurred in Q1 2020.
Interest expense dropped by $171K, and the $540K loss on the settlement of the debt, which I think everyone here agrees was beneficial, was a one-time, non-recurring charge.
I'm not sure why they claim to be debt-free with $1,962K still sitting on the balance sheet, but it does appear that they have retired all of the convertible debt and all of the derivative liabilities except for $40K, so the wild swings related to them in the P&L of $278K in gains in Q1 2021 and $1,660K in losses in Q1 2020 should largely disappear.
I don't know how they incurred $630K in interest expense in Q1, but from my calculation using Footnote 5, it seems to me that interest expense should only be about $10K per quarter going forward.
With all that said, it seems to me that the entire other income section of the P&L should largely disappear in Q2, leaving them to need to achieve, at the current level of $14.2M in sales, margin improvement from the current 3.4% to 10.6% to cover the operating loss of a little over $1.0M and rise slightly above breakeven.
I'm really hoping that whoever else here knows how to analyze financial statements (Peter particularly comes to mind) will review this and see if they agree with what I've set forth, as the statements are very complex for a company of this size, and I'm not sure that I've considered everything in my analysis.
The dilution for the debt was a separate 6.3 million shares, which I agree was very valuable. The more significant dilution took place with the sale of the nearly 36 million shares at $.10.
Unfortunately it wasn't at higher share prices, as they only received $.10 per share for selling almost 36 million shares in the first quarter as shown in the excerpt from the statement of shareholders' equity in the 10-Q as shown below:
Common stock issued for cash:
Shares 35,862,500
Amount $35,863
Additional paid-in Capital $3,550,387
Total $3,586,250
They got over $3.5 million, true, but we paid dearly for it, as the new shareholders could easily dump out and make at least a five-bagger, which it seems likely that they did, and which was probably as much to blame for the share price decline and stagnation as any other factor.
I just asked for an update on that matter on the Ambassadors site. I'll let you know if I get a reply.
You do realize they have approximately $5.77 per share in cash, so when I buy more shares tomorrow at $5.53, if today's closing price holds, the market will be paying me $.24 per share to own their technology and intellectual property.
For me it's not the when, as I'm good at waiting, but the if. I believe in the company's potential and evolution, but need to see solid evidence of its development in terms of results that are calibrated in numbers, and I'm hoping the upcoming 10-Q will show positive signs of that development.
From one old man to another, I'm sorry to hear it. Right now, there is no point in paying attention to the stock, as it only creates dissatisfaction - what is important is paying attention to the company's development. If and when it posts increasingly improved results, the stock price will inevitably follow that upward trend as the results improve.
It is truly hard to imagine the debacle that represents this company's recent share price activity getting much worse.
You have no idea about Yoav's character or abilities, do you? You should listen to the conference calls, and you will then understand what's happening at this company and how it is being built.
There certainly are. I'll be buying more tomorrow, as if it's below $5.77, essentially I'll be getting paid for owning the technology.
I'm from Morristown, but have been in Massachusetts for the last 42 years. Even so, I've always said you can take the boy out of Jersey, but you can't take the Jersey out of the boy.
By my calculation, the company currently has $5.77 in cash per share. At today's closing price of $5.91, that would imply a value of $.14 per share for its technology. Only a true idiot would conclude that to be a valid estimate of their technology's value.
I have a feeling Eltek will be the next acquisition based on its recent share price activity and performance. That would be a nice company for us to have.
Let's hope for a good week this coming week with the filing of the 10-Q to be made and an update on the 2021 plan to be released.
The price is rising recently with higher-than-average volume. Here comes Yoav!
At $60 million in revenue, it all depends on what margins that can generate and whether they can cover the SG&A and earn a profit. The value in this company isn't in what it's done so far, it's in how it plans to utilize the technological assets and distinctive capabilities to access underserved end-user markets that it has.
From the Ambassadors site, and my response (if anyone is interested).
AMBASSADOR UPDATE:
I just got off the phone with our CEO. He emphasized to me the companies mission to keep costs low and to use all available cash for growth. No ferraris, no big houses and no wasted capital on fancy offices. All cash in the bank will be used for iQSTEL acquisitions and growth as planned!
My response:
Very different from many pink sheet companies, but no less than I would have expected from Leandro. The strength of his character, from what I can discern, and his drive to build this company are the major factors that caused me to invest and are what is keeping me here, even though I could sell now and still make a decent profit.
For now - but listening to the replay of the conference call, the future is so pretty!
And iQSTEL has responded to you below:
As admin of this group and somebody that works for the company, I can tell you that the Ihub poster has really not done due diligence. As most of you know, we added a 'Meet Us' feature to the website. From that link you can do everything from phone call, Zoom conference and just about everything else including an in-person meeting with management. Nobody is hiding. I can tell you what they are doing, working hard and focused on company growth as number one priority. Personally, as an employee and Admin, I talked to the CEO a lot. Leandro is extremely dedicated to working hard and believes strongly in the company being the star and not himself as the CEO. He's been repeatedly asked for interviews and often pushes other officers of the company forward in attempts to highlight the fact that the company is a team effort. In fact, the entire ambassador program was based on his belief that the shareholders should be included as part of the team. I think it's important at this stage for us all to focus and support that the company continues its growth, making the announcements when possible and that we leave management alone they get worked done. Having said that, I'm sure you will see some possible interviews and other features in the future. But right now the management team is very hard at work and very focused. Thank you. I might also add that you might notice that there's been actually less news, less Tweets then we previously have had in the past. You can thank Posts like this for that response.
It's hard to imagine it getting much lower. Who would be stupid enough to sell their shares at this level? Even a dope knows that this company is worth more than its current $79 million market cap.
There are macroeconomic forces against that happening easily. The money that chased stocks like this through mid-February has either been diverted into crypto in the case of penny stock players, shifted from being into these kind of stocks that have high growth potential but no current profits into recovery-oriented stocks, sold off for capital gains because of Biden's threat to increase the capital gains tax rate, or just plain sold out to capture the multi-bagger profits that this company generated virtually overnight. It's going to have to prove that it can increase revenue and margins and make money, and then the turnaround will occur, but only gradually, not rapidly as it did when I had made 500% on my basis in a month.
That's great news! Hopefully there will be improvements in the operational results that will help the share price to increase!
I'd be happy with $2.00.