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MNTY appears to be liable for $462 K of the disgorgement. I would assume that the company has zero assets and probably some payables. Does this mean that they will close out trading and bankrupt the company? Seeing I can not sell the stock that I have at least I could take the capital loss.
I have personally never been involved in a company that has disgorgement payments. I would assume minimal is ever returned to shareholders or previous shareholders. Curious if anyone has previous experience.
With the SEC investigation, can MNTY put reputable management (not sure who would want the job) in charge or will the stock simply be eliminated from the shareholders?
I understand this is a pink sheet stock and can virtually do what they want. In the November conference call, Jason indicated that they would not be taking money back from the first store, nor would they take a salary / wage at this time. Does management suffer any recourse from these comments if someone would actually pursue a complaint if they indeed extracted funds from the company.
I was wondering everyone's thoughts of the reverse split. From my perspective, they need funds to start-up the next two stores. I felt we were improving the long-term viability of the company with the apparent desire to become a full reporting company, but then they do the one item they had continuosly told investors they would not do: the reverse split.
It is simply amazing that we were better off prior to having an actual product (ECFL days). I hope the Borola's have a plan for positive news releases post split. Maybe this is what they have been saving P/R's for.
If anyone has an opportunity to talk with the Borola's, stress the need to be honest with investors. From what were are hearing now, InVogue is only owned partially by MNTY. If I recall previous correspondance, it states that it is a wholly owned company. In addition, Jason stated that Des, Jason, or James would not take a salary until this company is profitable. If they could indeed validate these items, as well as showing profitable measures for the Chocktaw store and Altus store, maybe us current shareholders can have some aid to regain our investment.
Where is the .00005 coming from? From speculation on this board, the company has raised $650 K from dilution. If they have diluted 5 billion shares onto the market, this would be a mixutre of .0001 and .0002.
Everyone discusses that dilution is a surprise. During the November conference call Jason indicated that one of the reasons that he was merging with ECFL was to raise capital (i.e. dilution).
I do believe that they got ahead of themselves, as at that time they probably had no cash assets. Jason brought the Chocktaw store and ECFL provided a ticker symbol (for 78% of the company). At this time, our 2.4 billion shares (O/S and CEO) accounted for approximately 23% of the company, which is acceptable seeing ECFL did not have much to bring from what has been posted.
The would assume they felt that starting up stores rapidly, they would be able to maintain the share price. Instead, the price has fell to .0001 and several investors like myself are down.
Now I hope the company will come clean with the use of proceeds (~$650,000 in dilution). If this was to start up three stores and inventories, I would be feel more comfortable with the proceedings. I would hope the company would have pursued only one store if they had realized the dilution would have occurred at .0001. If they continue to sign leases (w/o the help of alternative financing from dilution), I would be concerned.
Hopefully we are in for some positive results over the upcoming week, but I do not see much gains until stores can be started and the company starts a share buyback plan. Otherwise we have to many shares outstanding at these levels to make any major gains. This is just my opinion.
The one item that I find difficult to understand is why the company does not include weekly or bi-monthly updates via the BLOG. I understand that they do not want to spend the money on PR's as the funds can be allocated to more useful projects; however, informing the shareholders is essential.
I do not have a problem with dilution if the return is greater than alternative financing options. Obviously dilution is our only financing option until the company can fully report and show positive cash flow. However, this is costly as all shares to be repurchased will be signficantly higher than .0001. Looks to me that they will pay a premium of 100% plus for funds today. Seems they got way ahead on themselves; however, I would rather have this scenario in the beginnings than no movement at all.
If I hear about further expansion plans that will cause additional expansion beyond the three Market 99 stores, one InVogue store, and multiple websites I will state serious concerns. They need to make these enterprises operational and find alternate financing sources other than dilution (unless they can get the price up for us shareholders and it once again would pay to dilute).
This is feeling like we might have a long ways to go before we can see some upticks to this stock, but eventually I believe we will be rewarded. Always looking for everyone's thoughts.
Thanks for the update on the share count for the management team of our company. From my interpretation of the information, the management is currently affected by the dilution as much as the common shareholder. This is a major positive in my opinion.
The second item is that the fully diluted operation will be A/S + preferred shares. Our current market cap is $1.6 million fully diluted and $2.0 if the full dilution to 10 billion shares (common shares + converted preferred shares * .0001).
From the apparent profits of the one store location (estimated $10 K per month), the P/E ration would be 13 to 16. This does not include any information from the InVogue, two new stores, or websites. Obviously the numbers become challenging as numbers change drastically as we move from the current share price.
I just wanted to hear everyone's opinion on this issue. If the first store location is truly profitable, it is a big step to holding value for our company as we move forward.
I may be one of a few that are willing to hold for a long term investment and see if the Borola's can establish a solid, profitable enterprise.
I am new to this stock. I have nothing invested at this point. I reviewed the annual report. Is it correct, the CEO's Class E shares are equal to 4 times the outstanding and issued shares. That would mean that his shares are worth 10 billion shares. Am I mistaken, or does the CEO have full voting power and 90% + ownership in this company.
Interesting post Pastor Phil on the costs of establishing a dollar store. With an additional 5 billion in shares, it would only start a store and a half at current share prices. However, with leases signed on store fronts they will need to continue dilution. Appears everyone got ahead of themselves in signing as many store front leases as possible. Hopefully lessons learned for the future, making new store developments through profits or when the share price can sustain adequate return on diltuion.
It is unfortunate that the company can not find any type of financing to start these stores. I would assume that most of the shares will cost multiples the price at dilution if they reach the goal of share re-purchase.
Pastor Phil,
You mentioned that the Board of Directors each received 10 million preferred shares. Do we know what the conversion rate for the preferred shares to common shares is?
My biggest concern is that the directors and management of the company are feeling the same effects of dilution as the common share holders. If the shares allow for a conversion as a percentage of outstanding shares, this would be a warning signal that the company will continue to dilute and utilize funds to continue progress with them owning the same percentage at the end of the day.
Earlier Jason indicated that himself, James and Dez owned 60% of the company. With 5 billion authorized shares, this meant that they owned or options up to 3 billion maximum. I just wonder if they will only hold 30% (now James and Jason) at the end of the next round of dilution.
It would seem that we are in for a long period of time until the opening of the stores, profitability can occur, and repurchase of shares takes place. In addition, will the company desire to expand with free cash flow instead of repurchasing shares (which is why it is important that the management and BOD will benefit as much as common shareholders from the buy back of shares).
Puffyk,
I also do not have PM capabilities. Do you have any indication of the potential good news? I have been adding shares since I heard the press conference in November. I appreciate any news.
Where did we stabilize for O/S and A/S
I have been a shareholder of MNTY for some time. I can understand the delays of opening stores and dilution, but I have having trouble with the lack of professionalism displayed by posting profanity to a company website.
If anyone has contact with management, please express concerns that it is not acceptable for a publically traded company to post these messages on a website.
It is obvious the company has not lived up to the November conference call, but I hope any investor envisioned challenges (maybe not to this extent). If the company could get a second store location, e-commerce website, and InVogue website established we now have a company foundation.
For the potential, I am willing to hold for the long-term. However, I sure hope that this is not an indication on how business is handled or will be handled at Market 99.
Insider Ownership -
From the mid-week Blog, Jason indicates that the Borola's and Desmond own 60-65% of the company. Does anyone understand how this is the case? I understand the the common stock outstanding is near 3 billion +. Did they issue preferred shares?
I am a little disappointed when I view the office location. For a company that is short on operating funds, the location appears to be in an extremely high rent district. I have never understood why everyone feels it is improtant to have an over the top office location for a corporate headquarters, especially for a company having to dilute to open stores.
I am new to the stock. What is the relationship between AURC and Krong?
The $1.8 million was the end goal stated during the November 7th conference call from my memory. I believe they were at $17 per square foot at that time since its inception in July. Figuring this to be only 1/3 of the year, the total sales should be $51 per square foot or well over $600,000 per year (can not remeber total square footage).
I understand that these values seem high for a .99 cent store. I have not completed any industry research to determine the viability of the statments made, but as per sales per hour I would hope that it is greater than $250,000 or they would never cover a lease payment.
Lets hope you are right. This has definately turned into a long term hold at this point. Hopefully Jason has some respect for the shareholder and understands the value of long-term shareholders.
On a seperate note, once stores start to open the real question will be is if they are profitable. If my memory serves me correct, the current Market 99 store was on pace to gross $1.8 million, with a 42.6% gross margin. I would have to assume that operating expenses would not exceed 20%, but who knows. Even if you figure a 40% tax rate, this would still be a 100% + ROI for each store based on no debt.
The only logical reasoning is that they entered these arrangements when dilution would have had greater returns for us, the current shareholder. Now that leases have been signed, this is the only course of action. The biggest mistake that I can tell is that they did not an acceptable plan to raise funds for the agressive strategy.
I am currently hoping that lease signings are curtailed for the time being. If they can successfully start five locations (Market 99 and InVogue), as well as some profit from e-commerce, then we should be able to find more desireable dilution points.
I feel the dilution is needed to start a chain of Market 99 stores, as it would be hard pressed to find a lender willing to finance the expansions.
The dilution to 2.5 billion should have been expected by investors, but if this is how we are going to continue to grow we need to increase share price to maintain value to the current shareholders otherwise the dilution yields minimal results. How can the company feel that diluting at .0005 is a good thing unless they did not anticipate prior to signing leases. Remember, if they would have diluted at .002, it is four stores for one.
Starting 60 + stores in 2 years will take extensive funds. If the ROI is strong enough, I feel the dilution is in everyones best interest. There does come a point where shareholder value is considerably affected long range.
I apologize if I am repeating already discussed information, but just have not had the time to short through the massive amount of posts.
If I understand the most recent press release correctly, the company has increased the authorized shares to somewhere in the vacinity of 4.9 billion shares.
At these prices, this would allow for additional funds of $1.9 million to the company, which will apparently cover start-up losses for 8 stores more/less. Then, the remaining will need to come from further dilution / earnings / debt.
The only positive that I can see is that we are still is a considerably better position than with our prior company. I still find it hard to believe that the Borola's have invested $600 K into this company, have taken no stock, and will receive no salary prior to this company becoming established.
Time will tell if they can get this off and running. Does any know what the O/S is currently. Will we have enough to stock the shelves without further dilution?
I am still confused about Desmond giving up his shares and stepping down as CEO. From my understanding, their is no insider ownership of this company.
Enough rambling, I was just wondering if we are indeed at 4.9 A/S and any knowledge of O/S.
Thanks,
At these prices, any sale of issued shares would yield minimal funds for the company to operate. If this is the only way to fund new stores, we are in for a long road; however, if this is not the case we will eventually be rewarded. Manipulation or dilution? The million dollar question.
I was surprised to see that the short interest stayed relatively constant as of January 28th. I figured the number would be considerably higher, unless .0004 is a point to cover.
Does anyone live near or know anyone near the signed lease locations? It would be great to know how the sites are coming along. I do not expect any PR from the company until the locations are ready.
It just does not make sense to me that they would issue additional shares into the float at these price levels and keep signing additional leases. If each store costs $600,000 to open, the amount of shares that could possibly be introduced to the public only would fund a fraction of this amount. Something does not add up to me. I would seriously question the financing of this company if this is the case.
If the Choctaw location is profitable, share buy back would be the smartest position. The store was debt free and already profitable in November. I would think the most healthy activity would be for shareholders to request another conference call. I have not had any luck in my correspondance to the management team; however, my hopes are for this to be the result that they have not had time due to the rapid store establishment.
I find it hard to believe that a company would dilute at these levels to generate minimal funds. If so, how could the strategy be to open a store every 20 to 30 days. The key is the financing arrangements. If the numbers presented by Mr. Borola are correct, the Chocktaw store cost $600,000 to open. Any dilution at these levels would not be in anyone's interest, especially for the CEO who has contributed significant funds to this operation.
I would hope that the management team at MNTY would know how to get more proceeds out of their company. At the current price, the market capitalization is near the initial investment by Mr. Borola, that has generated a profitable store.
I am a long time holder of the previous company and bought additional shares since the merger. I feel that this company will need strong leadership to achieve the goals set forth; however, I am more than willing to invest in MNTY for the long term. With any pink sheet stock, it will be a roller coaster. Hopefully everyone's due dilligence will pay off and we can be rewarded.
The conference call initiated agressive goals for the company. I personally feel that opening the four stores that leases have been signed, as per the last press conference, will be a strong indication that this company is headed in the right direction.
As the company expands, they will likely need to alter the initial plans. I am still concerned that we will have the funds to open stores this rapidly. The key will be that initial locations are profitable. Hopefully the extra time delay was for due dilligence to ensure profitable target markets. At current prices, we should be able to be rewarded even with a fraction of the number of stores indicated as targets during the November conference call. I feel that we all must remember that it was only a few months ago that the beginnings of Market 99 took place.
I am sure I am like everyone else, I would like to see this stock jump to pennies; however, I am still pleased with the progressions of this company (although triple 000's is difficult to view). I think for share price to increase it is necessary to understand the most recent happenings that have occurred in share retirement, management control changes, etc.
If anyone does have contact with Mr. Borola, I would like to suggest another conference call to discuss updates to the 2008 objectives. I have sent an email requesting this arrangement. I felt that the first conference call was very informative. With the massive amount of changes that have happended (i.e. 1.21 billion share retirement, change of CEO / President), it would be great to discuss these changes in greater detail. In addition, it would be a great chance for us shareholders to get other questions answered including financing terms, site development updates, and other key isses.
At least we are seeing some progression with the alternative revenue sources. After all of the happenings that have occured, it would be the most beneficial to understand if they have found financing for the expansion plans.
We have a lot of unknown factors with our company; however, I am not sure I know of another penny stock that I feel has more upside potential.
I apologize if any of this information is repeated from previous posts, but I just have not had the time to review the massive amount of daily posts.
The new www.mntyinvestor.com website gives new light to some of the happenings of this company. Under the "contact us" section, Jason Borola is now the CEO / President? This does contradict www.mymarket99.com corporate information.
Other areas of interest are in the "subsidiaries" section. With websites coming soon in www.invogueaccessories.com and www.mypartypatrol.com, new items are happening with this stock.
10 million shares dumped to the public for $12 K. If 20 million shares for a total of $24 K would break a company that has a profitable store already operational, I would be shocked.
We simply need more "long-term" funds invested in our beloved company. The news must not have sparked anyone to accumulate shares. I will likely buy more, but funds take a few days to enter the account.
These road bumps are nothing towards the end goal of all longs. I feel it was a positive move yesterday, as we know have the ability to seek out financing. I would assume to will use the shares to find lendors. I doubt they will sell the shares back into the float, as this would only raise a portion of what they need at today's prices.
I am still trying to figure our how this helps Des and the Borola's. I have only two thoughts -
1) They believe in this company and they will make their money through future earnings and pay.
2) Authorized shares increased, as they simply changed outstanding shares for stock options.
1.21 million share retirement answers the major question of where the company can generate funds to increase store locations.
It would be interesting to see in Desmond or the Borola's have made any open market purchases of stock. From this announcement, the management team has 0% holdings. The $600,000 that the Borola's invested to get the first sotre off theground has been "donated" to the shareholders.
If the management team has this much faith that this will make them back their investment of money and time through future stock options and salaries, I have to state that I am very bullish on this stock.
Please correct me if I am missing something.
Chad
Maybe I missed something over the past few days, but when was the biography and picture for Desmond posted? In addition, when did the Market 99 website start to be completed. I see the "about us" section and the "real estate" sections now have discussion.
Isn't that figure from October 25th, which would have been near .0002. I would assume as we pushed towards .006 the short interest increased; however, this is mere speculation. I would have to believe that additional short interest was established in the manipulation that has occured over the past week. That does not mean that the shorts maintain their postion for any extend of time. It just seems like this figure could be significantly higher.
I would have to assume if anyone is short that they will cover fast after listening to the CC. My fear was a sizeable increase to the outstanding shares to compensate the Borola's. This was answered by Desmond, as he will simply retire a portion of his shares.
I just finished listening to the conference call. A few takes from the call.
- Mr. Brola is impressive and knowledgable about the company.
- The first store has gross revenues at $17 per square foot since its July inception, with an operating expense ratio of 42.6% or $100 K profit per year. Expectations are significantly greater than current revenue streams to $1.8 MM per store. This would equate profits of $422 K per year.
- The first store took $600 K to open. This would be an ROE of 70%.
- Will have the Altus location operational by Christmas. Additional locations will follow. The goal is to have 62 operational stores by the end of Year 3. Of which, 36 are expected by year end 2008.
- Has engaged legal counsel and accounting firms. The call stressed this to be a reputable company. We (shareholders) now have a tangable asset to attribue the stock ticker ECFL.
- The ticker will change away from ECFL.
- Market 99 website will be fully operations soon. The E-Commerce portion of the website will be operational in 30 days (hopefully).
- Share structure will remain similar, with Desmond retiring a portion of his shares to compensate the Borola's.
- Officers will receive no compensation until multiple locations are opened and the company shows positive profit.
- The end goal is to generate a company attractive to buyouts.
- No debt to-date.
- Potential franchising opportunities.
The company will ultimately be judged by the ability to increase revnues, maintain margins, and generate capital for expansion. Hopefully I did not mistate anything, I am writing from memory. It seems like we are in a new era for this ticker.
At our current market cap (unclear if additional shares were added in this reverse merger) the total value per projected store is $155,000. (2,400,000,000 * .004 = 9,600,000 or $154,838 per projected store). If they can sustain a 43% operating margin like previously discussed on this board, a long term hold position could make everyone very happy IMHO.
At our current market cap (unclear if additional shares were added in this reverse merger) the total value per projected store is $155,000. (2,400,000,000 * .004 = 9,600,000 or $154,838 per projected store). If they can sustain a 43% operating margin like previously discussed on this board, a long term hold position could make everyone very happy IMHO.
I hope someone can ask th outstanding share / share strucutre.
Exactly what I was thinking. This stock has a large market cap right now for a field with only three test wells and 3D data. It is possible that the company could reach a significant value if they begin production. From my previous knowledge, I would assume this company should be worth considerably less (unless production as been stabilized). If they hit oil and at today's current prices, this could be a bargain. I will try to find out more details.