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HSXI sharehoders.
-When the merger between HSXI and IHSI (at the time) was announced, a total share certificate was given to Mr. Ivezic. He chose not to distribute those shares to HSXI shareholders.
-In late 2009 Mr. Winters found out about various innappropriate actions and facts that were withheld and as a result "backed-out" of the HSXI/IHSI agreement and with the reverse split eliminated the HSXI share certificate and changed Innovative to IHSN.
End result, your HSXI shares are worthless and you have no IHSN shares coming to you.
Tato - do you have an e-mail I can contact you on regarding HSXI?
The "they" we are all referring to are Mike and Chris. Period. Everyone else walked out the door a long time ago for receiving the same treatment we are. Which by the way is a material fact they chose not to disclose (negligence & securities violation).
Without further communication from either of them we have no choice but to file complaints with the regulatory bodies to enforce our ownership position. This never has a good end result, but what other choice is there at this point?
Unfortunately, as time goes on, irregardless of the reasons why it has played out this way, we need to take actions as shareholders. I was wrong and others were right. Some facts to consider:
-Transfer agent has 83 million shares outstanding.
-Since we as shareholders owned the assets of the company, barring any creditors/lienholders which there were some, we should have immediately received shares in IHSI. SEC put a hold on the trading of HSXI shares, but they did not strip away any assets.
-Direct shares were promised in exchange for money for some and never issued. More information to come in this regard.
Management owns the bulk of the shares so I don't understand their motives to get themselves out of the situation either.
Has anyone had communication with company in the last three weeks? Not sure we will get anything out of this, but we need to now take action.
right - that was my point. Then no securities laws would have been violated in that situation. If they issue shares and they fall into the reg d for example, they don't have to register them. The only possible backstop to that is state laws, but most of them cannot enforce an exception at the federal level. Meaning, if you've got a reg D exception, then for the most part a US state law cannot force you to do the registration in that particular state. At least that is my understanding given the entire purpose of the SEC is to put ultimate authority at the federal level.
While as an investor, none of us are happy at present(management included I'm sure), I want to make sure we avoid creating rumours about securities violations.
What specific shares were being offered and to whom? Have you have checked to make sure they don't qualify for Reg D or other offering exemptions?
My opinion:
1. You should have taken the loss last year on the HSXI shares. You have documentation from the company last year stating not to trade the shares as they are worthless - which means you could have supported the tax loss last year. The new shares will be brand new shares to you and you have no tax basis until you receive them.
2. With pinks, there are few securities laws to break. Remember, most securities laws relate to reporting results, material events etc. Only possible issue here is securities regulators could potentially force them to go ahead and issue the shares. BUT since management is not selling their shares - i.e. they are treating everyone equally it may not be much of an issue. It would be different if there were shares trading, management was selling their shares, and we all were not able to do anything. So there is no "myriad" of securities issues they violated.
small companies like IHSI have multiple false starts over many years, sometimes decades. Key fundamental points many of us invested in have not changed:
1. Medical industry spawns some of the fastest growing most valuable companies. If you look back at some of the companies that have taken off many have storied histories with many false starts and only after years and years of persistent work, it pays off.
2. Company vastly majority owned by management/initial investors. They have way more skin in the game than us
3. products work
All I'm saying is, don't forget the fundamentals here.. If and when we get our shares you don't want your emotions to force you out prior to reaping the long term reward.
don't lose sight of original reasons you invested here.
Just keep in mind the management or initial investors own more than all of us "indirect" shareholders combined. Doesn't help understand the current "unknown", but the fact that volume has been so low means they haven't sold out. Still own a huge chunk. Have to assume their own best interests (and therefore ours) are in mind with whatever is happening
Regarding shares, just keep in mind that Dieter hasn't been doing IR for many months. He respectfully answered most of our questions etc., but the issues regarding our shares need to be directed to Mike and Chris.
As I've always maintained in past posts and one of the reasons I invested here was because I think we are all in the same boat including management. The volume of shares is so low that you have to believe management doesn't have much in the way of free trading shares either - or if they do are not selling. Companies that have no products even trade freely because of swing/day traders. There are always s-t buyers to be had. Some have implied that they are pocketing the funds from the few shares that do trade. It's not nearly enough to justify all the years they have been at it.
Wish I knew what was going on, but have to think back to fundamentals.. they have products which are selling. Unfortunately we need even a little bit of transparency.
Tato, Love - good to hear from you. Glad to hear orders still going through fine for the cream. Otherwise, nothing else at this point.
Been a while since I checked in here. Figured would hear something by now if we were going to receive new shares in July. Love, Tato, VC - hear anything recently?
Beacon just issued their note and it is in fact GCHK which should spur a ton of interest and accumulation for the next few days. I also made an error in my price calc of $1 yesterday because I didn't realize their newly signed contract is actually in EUR and not USD. Really makes it more like a $1.25 conservative value right now (i.e. doesn't even consider future revenue growth). In the past you had to guess what their revenue streams would be. Now no longer so you can actually try to put a value on the stock. They have a contract on the books for $11m bucks and that is the first one. Good buy. Welcome any other valuation thoughts.
I think Beacon is going to announce this one tomorrow as well. Just a total guess, but the pieces of the puzzle fits and often they announce their picks the day of or right after a major announcement from the company. See the e-mail they sent below in case you don't get them.. Plus it all seems to fit... "panick selling a month ago" - look at this stock - almost a month exactly it dropped 30% in one day and it has slowly reversed higher as noted. Also, I think Beacon proposed it in Nov of last year at which time it went up about 50% which they note below.. Again total guess.
Just on fundamentals the new deal they signed is probably worth 5 cents in EPS and with a p/e of 20 that equates to $1/share. So I think this is the play - the value is now there at $1 per share - you no longer have to guess what it's worth because they have a contract in place with a legit organization...I'm sure others in Europe are to follow. So my view - tomorrow it will gap to close to $1 per share so I'd be buying now. Total long shot = high risk.
Our latest idea comes from one of our longtime favorite areas of the market—the "Green" sector. This company has developed an innovative technology that they hope will make a major dent in the US gas consumption.
The best part is that after a day of panic-selling almost a month ago, the stock has since stabilized and slowly reversed higher. This looks like a classic turnaround to us. You can buy the stock today for a big discount to where it was just a few months ago. So, while the company still is as good as it was a couple months ago, you can scoop up shares at a big discount right now compared to where it has traded in the past.
And did we mention that we've had a great track record with this company? Yes, we've actually mentioned this one to our members before. In fact, the first time we alerted members to this growth story, the stock shot up nearly 50% following our alert …and was one of our strongest performers of the year.
Stay tuned as we will be announcing the name of this proven performer tomorrow morning. As the old saying goes, "History may not repeat itself exactly….but it often rhymes."
4828 S. Broadway #182
Tyler, TX 75703
never base charts on day where Beacon and OTC give recommendation on stock. Guarantee it will come right back down within a day or two like it never happened. Has to move on fundamentals to make charting accurate. Seen it happen 100 times if not more.
But am interested in this stock. What gives - cash on hand, solid products.. Product roadmap looks good. A lot of SG&A killing bottom line but that's expected of early stages and the fact it's coming down. $9m in debt not too bad given level of revenue and early stage. Any long term thoughts on this?
You have to ask yourself not only who is selling, BUT WHO IS BUYING. I've been long on this stock forever but the situation is such that until there is some level of stability and movement in business operations in the right direction, I'm certainly not buying any more even at these levels. Because right now, you just have no idea if it is throwing good money after bad.
Tato - you are about as long as they come on this and but I have to believe you feel the same way without something of substance to support going further long...
Also, when you look at other things you can put your money into... The bank stocks are at lows (The gov't will never let BAC fail so why not buy some shares at $4 bucks... Christ buy Ford motor company at less than 2 dollars a share - the only US auto company who doesn't need help and with gas prices low the F150's will start flying out of the dealerships again this spring - that part of the company is worth well more than 2 bucks a share). I think people are starting to realize, we've come too far down. Even Beacon's latest recommendation (most of which I ignore because they go up for a few days then come right back down) ZILA is about as good as they come (developed products, good roadmap, cash in the bank, etc). Too bad I have so much money tied up here!! : )
Clearly someone with free trading shares wanted out or needed some cash at any level.
Two months since last update as of tomorrow. Unfortunately, only thing that has happened with share price in that time is a drop of 70% on almost no volume
With regards to gov't oversight, most government bodies that oversee markets are completely impotent. Obama "scolded" the big wall street bonuses given in 2008 - the 6th largest pool in history in the worst financial crisis since 80 years ago. Obama was supposed to be "different" - he's showing already, he's not.
have to believe financing has not arrived. Which is not good. As Love noted many times, this is not a lot of money they are trying to get. Have to believe they could pursue other avenues and get some level of funding immediately.
Next week will be two months since updates like the following were given:
7. The IHSI shares, are trading - although at very low volumes. We continue to make presentations to financial institutions to tell our story, and many are expressing interest. We expect that interest to be reflected in the stock activity and volume over the next two months.
Unfortunately appears no interest was reflected.
5. The electronic IHSI share transfer to your accounts is pending and we will give appropriate notice when the process begins: please remember that SEC rules have placed a ‘trading restriction’ on these shares for a minimum of 6 to 12 months.
Unfortunately we just passed another two months.
Actually I understood the aqua classes were not going to be expanded, but I thought they were continuing them at the locations in Canada where they were already set-up. Because that section of their website did migrate over to IHSI website and still exists today and you can still see the locations in Canada they supposedly offer the class. Other than that, I don't know anything for sure.
Also, the quarterly statements just issued do not include the HealthSonix and AquaSonix operations. It's only the Holding company itself. If you look at everything from revenue to expenses, it can't include any of the two operations. So once again, we really have absolutely no idea how much revenue and gross profit the sales of Zingiber, EnSonix and any classes might generate. They should have clearly disclosed this since the purchases were done in July...
You could certainly take the loss in 2008 because you can support the fact that the HSXI shares are worthless and you have documentation from the company to not trade them... I'll probably take the loss in '08.
That number does not reflect the HSXI shareholders, it was just the IHSI shareholders.. Like I think the most recent financials as of 9/30/08 might show. But they should disclose that.. I'm only guessing that because the 9k revenue figure must not reflect sales of ZingiberRX, aqua classes, etc (or at least we should hope not).
Oh yes - because SEC filings are sooooo trustworthy... Here's a news flash.. Audited SEC filings are extremely expensive and if you must have them, then you are a long way from home investing in very early stage pinks. That is why there is a Pink Sheets - the entire purpose, because it is one step above a private company. That is why some firms hang out in the pinks for years and years because believe it or not, some execs don't actually think it's worth all the money required to do the additional filings and if they are getting the funding they need from the equity markets without doing it then it makes no difference. You must remember, at the essence this is just a source of funding.
Now back to the financials. They don't have 1M in long term debt. They have 700k owed to a "related party". Means most likely it is owed to HealthSonix or some other legally related party. Means no outside creditor is hanging a noose over their heads and it most likely could easily be extinguished or exchanged for shares.. It's nothing. What should concern you more is the revenue (lack thereof)....
Regarding your last comment, I don't get into the personal lives of these people... You think the execs of half of the biggest companies out there are not criminals in their own right???
Thanks for sharing. I could have sworn I looked on pinksheets between now and then and I didn't see them.. Oh well. I'm honestly not hung up on the audited thing at this point. IT would be nice, but they are not going to pay for auditors at this point.
The good news is they are keeping up with their Pink Sheet filings. What I can't figure out is their revenue number... $9k in revenue????
I agree - I think at some point you have to look elsewhere. Spreads have come down - way down.. in fact below where they were before all this started. Money is flowing.
But like I said, I'd be really surprised if anything material happens in 2009. I would like to get the shares though. Next week there will be a lot of big blue chips announcing big layoffs - guarantee it. Most of this year is not going to be pretty so this is not an environment where new products or expansion of existing ones happens.
Regarding your point about funding - that's my feeling as well. I honestly think the funding is now there to be had so it worries me it is not closed yet.
One question though - how do you know they had a bunch of money. I never got the feeling they had a bunch of money sitting anywhere and that would be extremely unusual for a company of this size and stage of development. Normally they are burning through cash faster than it's printed. I think they were better off than most having completed most of their initial investment, but I doubt they were sitting on any money.
can't say I completely disagree, but assuming that is not true... I'm guessing funding will not come through for another several months, no shares will be distributed, they would likely not release infomercial, Gen2 or anything else major until end of 2009 anyway. Doing so before then would be a waste of time and money. Who is going to spend $200 on a home treatment unit in the next 6-9 months when unemployment in the US will probably peak sometime in 2nd or 3rd quarter of this year (next week will bring more announcements of tens of thousands of layoffs and major companies). Might as well write 2009 off and hope they can hold out until 2010 when unfortunately competition will be much stronger in the same markets/customer base etc. Many, many new creams on the market in last 12 months, other home units being further refined/developed etc. Plenty of room for many competitors over the long term, but 2009 will not be "prosperous" for them by any stretch of the imagination.
anyone have a guess when the funding will come in?
Think everyone would agree, only thing that will heat this up is funding. And then they are in an extremely difficult market, mounting competition across both of their main products, etc.. They will need to use some of the funding to expand product line.
All excellent points. Japan and the auto industry is a perfect example - they didn't invent much at all in the beginning they just copied and made it better. So there is always room for a company willing to perfect a product and in the medical industry the margins and size of the market can carry many, many competitors with the same products. Merry Christmas & Happy New Year to you too.
Here's some thoughts on that... Good thing is they probably don't want to borrow money - they'd rather do equity to raise capital. If they truly have 60 plus pharmacies that carry ZingiberRx, assume that they conservatively sell on average only 20 units per month at each location (I'm sure given the market potential they are probably selling a lot more than that) that's 1200 units from those pharmacies alone, times $25 per unit that's 30,000 per month or $360,000 per year in revenue. Income after COGS is probably about $144,000. I'm guessing they figure this is enough to pay their bills and keep things rolling without taking on more debt until they get this much anticipated funding. And keep in mind this is probably quite conservative - it's possible they are pulling in much more money. Problem is however, it's not enough to launch Zingiber and the EnSonix into a higher level of marketing/sales and get the Gen 2 launched etc.
Tato - all good points and I agree there is nothing we can do at this point. Also, the market they are in is large enough where they can still be very profitable even if there are many other competitors - as there will be.
But they were ahead of the curve and therefore possibly have now removed some of their "me first" competitive edge. But again, the market is such that there are plenty of profits to be had.
Just read the update as well. Always good to hear something.
And in case you think ZingiberRx is still alone, think again.
http://www.hormoneprofile.com/arthritiscream.htm us just one example of other companies promoting the benefits of Ginger creams. See - they have many other ingredients that are supposed to reduce inflamation as well, but once the buzzword becomes "ginger" they simply start calling it out. And it comes in one with no odor and another one with mint smell.
The average consumer is not going to know the difference between an almost completely Ginger based product (ZingiberRx) and something like this product. they are going to think - hey they both have Ginger in them. And this one doesn't smell or smells like mint.
These are new products folks. These companies are still moving fwd in this environment.
So Tato - this is always my point about you can only wait so long. I wish I was willing to wait forever, but now that we have waited, there is much more competition in both key products IHSI sells. This is just the tip of the iceburg. What happens when Johnson & Johnson starts selling a home sonic unit at Walmart that you can buy for 49.99... It's over, that's what happens. You sit still, you get run over - especially in the incredibly profitable healthcare market.
while everything is quiet here there are more and more personal sonic devices coming on the market for pain management. Here are just a few -
therapymart.com
mendmeshop.com
medicalproductsonline - sells one too.
in the past the argument was they had no competition. There is direct competition now.
Unfortunately I think most are just plain tapped out of inspiration on this. I'll believe anything when I actually see it happen. Another month gone by since I last spoke and neither of the items that were supposed to happen in 7-10 days has happened. So you say they said February.. I say - we'll see. Happy to be proven wrong, but the odds are in my favor.
Read what I actually wrote. I did not compare them to GE.
let's take oh... GE maybe.. How many judgements do you think they have against them in a given year? This would be considered immaterial even to a company like IHSI. Not to say info is not good or not important.. But it is immaterial if it is accurate.
Love - actually I don't know. I was taking the by month end idea from your post 2082, point #1 where you mentioned when you talked to them they were trying to complete by end of month. I was assuming that meant by end of October.