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I hope it works out in the end for you guys, like you said before you all took a lot of risk with this company and stock and you all deserve a much better stock price after having been vindicated with your faith in this company's IP. Buldoc has to wake up and smell the coffee because the shareholders can remove him ultimately if he keeps showing condescension towards them. Pickens over at ASTC faced two shareholder revolts in his time led by (ex-)insiders (I played a part in the 2nd by agitating via the CFO) and he modified his behavior and policy as a result to address the concerns shown even though he fought them off.
It kills me to think of the catbird seat the company would've been in had they gone for passenger first - a few years ahead of the product cycle - would tsa have extended morpho and smiths at that point?
Morpho and Smiths TSA ETD multi-year IDIQs have only just run out late this year just before IMSC's 162m IDIQ was granted so I don't know if anything material could have been gained by having QPL earlier as these competitor IDIQs were granted many years ago.
I don't think it would be wise to advertise he's looking for a divorce. And possibly an ugly one.
Indeed especially as it would spur an orgy of 8c option selling beforehand. However the issue is that he does not appear to understand/appreciate that the shareholders really need a divorce so the stock price can actually start appreciating and maintain its gains which is impossible if there is constant selling dilution that kill any rally. It appears to me from his utterances that he is content with the status quo whereby he continues to get paid well and the company is allowed to lose any amount of money because its main creditor DMRJ likes the fact that it still has so many very cheap in the money options.
He has a good window of opportunity now to actually work for his shareholders and find the finance to replace all of the exorbitant 15% interest debt including the 8c convertibles when it all comes due for payment on March 31st 2015. This is where he has a chance to prove what a great CEO that he thinks he is or will he just continue to take the lazy non-shareholder friendly option of sticking with DMRJ as he intimated at the last CC.
There is an option whereby DMRJ (and BAM) can be part of the solution rather than part of the problem here. They can agree in March to convert all their debt at once at a discount price say 60-80c. That way all the debt (and dilution) is gone, they become major shareholders and the stock can start seriously appreciating from a dollar+. Oh, you also then have positive book value to be able to join a listed exchange too. There are many good options available compared to the current unsatisfactory one if Buldoc seriously put his mind to it.
The Ionscan 500 (later models) and Itemiser DX were never going to lose air cargo compliance in 2013, that was a myth I confronted for years.
If the sp was $1.75 plus right now and a $1.75 was solid base, neither of us would be having this discourse.
Just not going to happen until buyers take all of DMRJ's 90m+ options off their hands. You have had quite a lot of good news recently but the collective volume burst in that week was what, 6m ? It's just not enough, you need major new buyers of this stock and you will not find many big takers while you sit on the OTC still having never made a profit with negative book value and huge toxic dilutive debt. Regardless of whether cargo or checkpoint was pursued first the collective good news would have been no different.
You should start attracting new buyers if you start producing profitable quarters but again you will need to catch a big whale or two to make a permanent sp difference as DMRJ take the sp down to the no-mans land in between their 1.09-1.18 options and management's 1.40 options every time.
So what are your options ? Well you could wait for March and see if there is new re-financing but seeing how chummy Buldoc is with DMRJ, who are represented at Board level and allow him to award as many options as he likes to himself and his team I would not put out much hope for any change in the toxic debt just another extension of it. So no change means waiting just for profitable/higher revenue quarters, perhaps selling some shares on any spike and reloading back at these levels for the next merry go-round. It's not much of a great hope but it allows you to stay long if you like the company while booking profit along the way as the debt gets slowly diluted out/paid off.
The other alternative is to get enough of a shareholder block in place to remove or greatly influence Buldoc and then get the DMRJ/BAM debt re-financed asap, one plus side of all this dilution is that collectively retail investors own this stock and have great collective power if ever harnessed and focused e.g the ability to nominate own BoD and then CEO.
(1) 30,000 shares will vest, if at all, upon 1st Detect Corporation, a wholly owned subsidiary of the Issuer, reaching $5,000,000 in revenue during the period commencing on December 1, 2014 and ending on December 31, 2016
(2) 67,500 shares will vest, if at all, upon 1st Detect Corporation, a wholly owned subsidiary of the Issuer, reaching $7,500,000 in revenue during the period commencing on December 1, 2014 and ending on December 31, 2016
(3) 202,500 shares will vest, if at all, upon 1st Detect Corporation, a wholly owned subsidiary of the Issuer, reaching $10,000,000 in revenue during the period commencing on December 1, 2014 and ending on December 31, 2016
Employee Stock Options (right to buy) (1) 12/3/2024 Common Stock 30000 $2.60 D
Employee Stock Options (right to buy) (2) 12/3/2024 Common Stock 67500 $2.60 D
Employee Stock Options (right to buy) (3) 12/3/2024 Common Stock 202500 $2.60 D
http://ih.advfn.com/p.php?pid=nmona&article=64745711
I was quite impressed with some of the A57's geekbench subtests scores but it is obvious now that this performance comes at a thermal price. A A57-A53 Octal looks a big.little combo too far for planar 20nm, looks like they will need FinFETs to make this work. Meanwhile Merrifield and Moorefield now available for those who want a bug-free 64-bit android experience .
Tablets were a bit of a mile race for Intel but phones look like they will be a marathon but it has the long relentless roadmap to take advantage of any ARM/foundry missteps every year and the 64-bit market has only just begun so there is everything to play for in the future for those who have the imagination to envisage it. Also there should be far less legacy software issues for x86 at 64-bit. Game on !
L3 isn't going to buy this company for a 200% premium, get real. Most buyouts are normally within 50% of the existing share price. However the method of buying you suggested (i.e. L3 shares) is a perfectly valid viable one if L3 wanted to incorporate ETD into their technology and frankly having just announced a $1.5bn share buyback they could afford to pay cash too.
Perhaps Buldoc should go to L3 in March and ask them for $80m cash to pay off DMRJ/BAM which they could say convert into shares at $1.00 leaving the company debt-free and with a total share count under 160m which would be better than the current 180m fully diluted with $40m debt on top. Would make far more sense than the current giving of 90m+ options to DMRJ for only about $25m debt.
Buldoc really has to use his imagination and initiative and replace DMRJ/BAM totally in March with a far more sensible loan structure. He's proven the company IP has value now so it really should not be that hard to find that sort of money for better than 15% interest and options that currently average out around 25c. In March all the debt becomes due so he would be well in his rights to find that money and tell DRMJ/BAM here's your money and thanks for the memories. DMRJ would still walk away with ~100% profit and they would not have to wait for the drip sells of 8c shares to collect.
.. to ensure their 1.18 options stay in the money or thereabouts. DMRJ do not like not making money.
Intel happen to have a 64-bit alternative ready and waiting in Moorefield if they fancy taking a walk on the x86 wild side .
Great history lesson Tim. eom
If IMSC had 125M shares but no debt and the above listed agreements in place, what do you think the stock would do? My feeling is, even with nearly 80% more shares, the stock would easily double from its 50 day average. Now, if you agree with that, and if you are a lender you might make a loan package available at a fair rate that might include a warrant opportunity ( bonus) in lieu of a convertible. I know I would do so readily.
As long as no large shareholder is selling it really does not matter how many shares you have, the price will go up on good news. I think Buldoc has to bite the bullet here and just say goodbye to DMRJ and BAM in March even if it leads to a temporary bloodbath on the price as DMRJ converts and sells its 8c options beforehand in a frantic bid to make $5m debt morph into $75m cash.
It will be better for the shareholders and his 1.40 options in the long run if all this convertible debt is replaced by a long-term loan at low interest with no convertibles in March. The point is if the company starts posting profitable quarters in May he has a window of opportunity before then to sort out the capital structure as the stock will recover as it did after 2009 with bargain hunters, day/swing traders and maybe even Institutions entering the fray if profit is shown.
However there has been no hint of such a change of debt strategy with Buldoc openly and publicly defending DMRJ like they are his best buddies against shareholder disquiet. I think Pickens III can be a bit of clown sometimes with his public verbose grandstanding but this beats even his excesses.
Management will not break the habits of a lifetime and buy any shares here because they know the stock is range-bound for the indefinite future with all the options they gave DMRJ. Other than a re-fi of DMRJ/BAM the only way out is to get some Institutions interested in taking some millions of shares off DMRJ's hands but none will be interested until you start showing some profitable quarters and your first potential one is the first quarter of 2015 which won't be reported until May 2015.
You all asked why DMRJ were selling before, well today is an answer, they have to sell when volume tips up at whatever price so they can't be choosey about the price. Your stock's current fate was sealed in December 2009 when Buldoc let it go all the way to DMRJ loan default and then had to agree onerous terms to carry on, the current Faustian 8c option deal. Your stock will never hold its gains as DMRJ sell all the way down to 1.18, their highest options price and then stop.
So unless there is a re-fi that take DMRJ out then to make money on this stock you have to play their game, sell when future pops fizzle out all the way down to 1.18 because as sure as night follows day DMRJ will return it to 1.18 every time. Then re-load at 1.18 if you fancy playing the game again further down the line and still like being a long for the future as at least you would have booked some profit along the way.
Talk of buyouts are just fantasy long-shots as the company is just too expensive with its diluted capital structure and has too much debt. Morpho's GAO compliant plus the introduction of its and Smiths non-radioactive products shows the clock is ticking on your current technology too which any prospective buyer would have noted. Whatever you think of the technology here there is no doubt that the company has been financially badly run for many years now and the past, current and future stagnant stock price is the result of that. For an ex-accountant Buldoc has done a very poor job of ensuring shareholder value is not lost through excessive debt and dilution. You need about another $100m from open buys to get DMRJ dilution off your back, I can't see and have never seen that happening any time soon.
I see DMRJ has taken the stock back down to the 1.18 level of its highest options, something I said it would do for over a year now and it will continue to do until every last 8c option is gone which is years away at the current rate of dilution dumping. If any of you guys were smart and plan to be long-term longs you would dump at higher levels and reload at this 1.18+ level because it will not maintain any higher price with the current 8c option dilution share structure.
p.s. ASTC does not need any dealing with, it is a completely stable company and stock with an absolutely great future (and glorious Space past) unlike this shifting sands train-wreck of a company and stock.
Do you think the dual-IMS detector market only started 2 years ago ? McGann's first product was of that type which shows you how late IMSC has been !
No, correct as usual. The TSA has thousands of Smiths and Morpho products in use, they did not teleport them in by magic, they were bought over many years. So IMSC is obviously late to the TSA dual-IMS detector party by over a decade in fact !
p.s. ASTC has wisely chose to stay out of this messy expensive 3-way dogfight and chosen easier avenues to pursue sales.
The Ionscan 600 and Itemiser 4DX are not old technology and have not gone through the EU/ECAC process as these products have just been released. IMSC has a small window of opportunity here to sell lots before these two products are on the TSA QPL too taking away IMSC's non-radioactive exclusivity in competitive bidding for future orders.
Well it is obviously late if 2014 is its first big order when Smiths and Morpho have been supplying the TSA for many years.
As a third late player in the dual-IMS detector market you must have known that the richly funded competition would play a major part in this company's future. Now both your competitors have non-radioactive products winging their way through certifications so it will be a race against time to deliver all of the $162m IDIQ before these latest products of theirs get certified too. Time for double/triple shifts now to get all this IDIQ delivered asap before the competition catches up.
November 25, 2014 Morpho Launches Non-Radioactive Trace Detector detail ...
http://www.morpho.com/actualites-et-evenements/presse/morpho-launches-non-radioactive-trace-detector?lang=en
http://www.morpho.com/detection/see-all-products/trace-detection/itemiser-r-4dx/
Quark competes directly performance-wise* with ARM A5 which ARM is also touting for wearables power efficiency. Quark is *not* going to be a competitor to Cortex-M which is perhaps the only low power range where x86 currently can't compete.
http://www.arm.com/products/processors/cortex-a/cortex-a5.php
http://www.arm.com/products/processors/cortex-a/cortex-a5.php?tab=Performance
http://www.arm.com/products/processors/cortex-a/cortex-a5.php?tab=Specifications
*similar DMIPS/MHz and clockspeed.
The closer it gets to March without any re-negotiations with DMRJ they will realize the score and start converting their 8c options 5% at a time and start selling off so all 60m+ are sold by March 31st remembering they still bank profit at 9c over being waiting to be paid off. Just keep your powder dry to take advantage in the last few weeks of March if that scenario starts to happen.
The most important MA lately has been the 50 SMA as that used to define resistance and it stopped the rising 90-100 SMA support dead in its tracks when they met a while back. If the 50 MA is now support it will now have the reverse effect and convert all the moving average resistance overhead back into support when they cross. At 2.90 all recent moving averages would have been crossed.
Your post absolutely nailed it. On March 31st 2015 IMSC need to pay DMRJ and BAM off totally when all their debt becomes due with like you say a new $80m facility from another more reasonable lender. Then this stock can have a future as befits its IP otherwise the Vulture Fund will continue to feed on new shareholder blood for years to come. As the first profitable quarter ever in this company's entire existence is likely to be reported in May, March will be an ideal time to tidy up the debt as you would be more likely to hold on to stock price rises then without the 8c dilution rain falling on you all the time.
As March 31st is the official debt pay off date there would be no need to announce or warn before then, just do it ! What is DMRJ going to say, how dare you pay off all our debt on time on which we have already made tens of millions ? Remember though DMRJ have a Director on this Board so this may not be as easy as it sounds.
“We will not continue to accept a business with multi-billion dollar losses. But this is the price you pay to get back in and we will get back in” Intel’s Chairman Andy Bryant stressed during his opening keynote.
Krzanich said the merge between its PC and mobile chip groups announced this week will only help drive its mobile sales growth. Through the reorganization, Intel will have a single unified gruop for the entire chip production process, from engineering and architecture to sales and marketing. Plus, since a lot of Intel’s customers come from the same company - think Samsung, who sells mobile, tablets, and even IoT products - it will only simplify the whole communication process.
http://finance.yahoo.com/news/intel-ceo-were-not-ashamed-184351141.html
Did Qualcomm give any server processor design details in their presentation ? Snapdragon did not exactly make the rest of the ARMy quake with fear in their boots .
Btw, are you still long in this stock ? You have turned very negative if you still are.
Is this the same Qualcomm that did not have its own answer ready for the 64-bit ARM A57 ? Bodes well when you want to leapfrog the lowly A57 and take on the mighty Xeon .
Director Adams sold 235K shares @$1.09 in 2011 and look how that proved terminal for this company and stock
In the 8-K Manning was warned she would not be in possession of all material facts if she went thru with the sale which tells me she just plain needed the money like Adams in 2011. The other important thing was that the company buyback scheme roared back into life again and the current o/s facility on that is a cool ~$6.5m which this company can easily afford to use up now. Interesting times ahead for both this stock and company .
There was someone flashing 257M shares @ 1.51
That would be some feat considering there are only 200m authorized shares in the company and DMRJ only have a combined convertible option total (debt +interest) of about 90m.
If you check DMRJ's note conversion documents they are precluded from holding 5%+ of the stock. Don't know on whose insistence that clause was put in, IMSC or DMRJ.
http://www.defensedaily.com/eletters/hsr-nov-19-2014/
'Implant says that under the new contract it received an initial delivery order for 1,170 of its QS-B220 benchtop ETDs. A TSA spokeswoman tells HSR via an email response to questions that the order is valued at $21.6 million and contains an option for a second year warranty and additional consumables. However, she says there are no other options and that the ID/IQ contract is for one year and includes monies from fiscal years 2014, 2008, 2005 and 2004.
Bolduc says a “good part” of the order for the 1,170 units will be shipped in Implant’s current fiscal year, which ends in June 2015.
The company reported $1.8 million in sales in its first quarter and with the TSA contracts sees more than $20 million for the fiscal year, he says.
Bolduc, however, says that the ID/IQ contract has options that could extend the contract into future years, although the number of years it can be extended for “is anyone’s guess.” He suggests that the $162 million potential says something about TSA’s needs and expects the new business to continue into the federal government’s fiscal year 2016, which begins on Oct. 1, 2015.'
Any disservice to the shareholders/readers here is not coming from me !
So you want to totally ignore the fact that Buldoc said in that article that FY2015 will come in over $20m and not over $30m or $40m ?
Ok, let's do the math from a financial year POV. Buldoc has said that he expects FY2015 to come in around $20m+. He has also said the 1170 units will be delivered from Dec 2014 to Sep 2015 i.e. over 10 months with about 120 in each month. So FY2015 will contain ~70% of the order. 70% of $21.5m is about $15m. This quarter saw $1.8m other sales, say $1.5m normal average, multiply that by 4 and add to $15m and you get $21m which is pretty close to what Buldoc said FY2015 would turn out which does imply the $21.5m TSA figure for 1170 is correct.
Now you said it would be unprofitable at that rate, I say not necessarily at full factory floor utilization and there will be full QS-B220 factory floor utilization from next month for the following 10 months processing flat out the TSA and other orders. You will have to wait for FY2015Q3 to be reported in May 2015 to see how profitable or unprofitable full factory floor utilization is but it is obvious that under $20K a unit is very cheap and the TSA will come calling again with more orders if they remain that cheap meaning that a $162m IDIQ could keep IMSC busy for the next 70-80 months i.e. 6+ years at that rate.
Even if you are only mildly profitable each quarter that sustained level of profitability will burn up all of DMRJ/Management options over time and allow for stock appreciation on top. There you go, I have produced an optimistic IMSC scenario and I did not have to make a single thing up like pretend a FPDS figure is not what is says it is . That's how you should present optimistic but believable DD.
with the TSA contracts sees more than $20million for the fiscal year, he (Buldoc) says
That will not be profitable overall for FY2015 so you need follow up orders tapping in to the rest of that $162m IDIQ for FY2016.
TSA typically competes the contract for ETDs for passenger and baggage screening on an annual basis with previous awards going either to Britain’s Smith Detection, or Morpho Detection, which is part of France’s Safran Group.
A TSA spokeswoman tells HSR via an email response to questions that the order is valued at $21.6 million
which is what FPDS has been saying all along. However now that the 1170 total has now been removed from FPDS I concede that there is scope now for this amount to be 'materially' amended but for now you must run with the $21.6m until proven otherwise. That is what serious investors doing proper DD do rather than just hoping for high numbers.
It is still not conclusively proven that he was not lying yet and anyway my statement was always provisional on the order not being amended but you seem to be ignoring that important conditional detail every time in your outbursts. After all these air cargo boasts about full pipelines and freight forwarders champing at the bit it is obvious every word of this evasive management must be verified by real facts.
p.s. the India order was a 'signed contract, done dusted' in that 2010 8-K FY2010 $19m forecast so your feeble attempts at claiming there was a difference are wrong. How anyone can defend the outrageous boasts of this management in official investor events/documents is beyond me considering their track record in hindsight.
I gave a concrete example, the $19m FY2010 forecast made in an official SEC 8-K. How many years after that statement did IMSC actually even recognize $19m cumulative revenue ?
I said if the order was not amended then he spoke with forked tongue. The order was amended. One of my two specified scenarios came to pass. You are the one who is baseless and incorrect with your accusations to/about me.
It was for 500-600 units. The order they got is worth is around 50mn as we claimed.
Speculation but FPDS has now removed the restriction that prevented that before so feel free to pump away All that is known for sure is that only $21.5m has been authorized. The other $28.5m of your $50m will need a new FPDS order form appearing or the original being amended again.
It keeps the $21,556,080.00 but omits the number of units.
Indeed ! Which means you are free to let loose your imaginations again now that FPDS has been amended to remove that restriction ! The way I figure this will work now is that your deliver the first $21.5m batch and then FPDS will then show the next batch etc etc until the whole $162m is ordered and delivered which will stretch over years now (original 1-year IDIQ will be amended too in that respect).
You will now start getting interest from a new class of investor/swing trader if you can start regularly quarterly profits so these will become your new price spike volume events as profit is something that has never been experienced before in this stock. Actual profit and future eps calculations is what really moves most stocks and the volume you can acquire from that can be quite limitless if you keep showing upward trends.