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Inmarsat was recently awarded a judgment in a civil lawsuit against Gene Curcio, and Planetel. They had already been awarded a judgment in England, but this represented their efforts to have a local judgment handed down. It is most likely in the $5,000,000 range. This represents the $3,000,000.00 he allegedly defrauded from Inmarsat, plus interest, that had been accruing at about $1400.00 a day.
Inmarsat also owns 1,483,051 shares of WFWL. BTW: Curcio, under oath, denied owning any WFWL stock, (at least in accounts with his name on them.) This may explain why Curcio refuses to take any steps to monetize Wifi Wireless Inc. and increase shareholder value. Inmarsat would immediately grab any stock he laid claim to, and their WFWL stock would be worth something...all that work to rip them off and Inmarsat gets their money back with interest. So Curcio continues to refuse to do anything with this company. Instead he screws the shareholders so Inmarsat does not get their money.
Curcio was even offered a chance to bring value to WFWL, but turned down a deal to have a group of revenue producing companies back into the WFWL shell. Based on the revenues of the companies, WFWL could have been a $5.00 stock.
It is obvious he has no intention of commercializing WiFi's "product", or selling it's "tech",( both of which, are obsolete and outdated) or providing a return on our investment, or most important... returning our investment. He has lied to the shareholders and continuously disseminated misinformation. He has been stringing us along for 5 years, dangling various "carrots" in front of us, but his game and our patience, has finally reached its mathematical limit.
He has raised millions of dollars from unsuspecting investors, yet WiFi has 0 employees, 0 revenues, no IP protection, no proof of concept, and stale unproven technology. He has sat idly by, while competing companies have continuously consummated deals, generated revenues, grown their businesses,and formed the Dash 7 Alliance to comply with the Dod protocol. He has not attempted to build WiFi's business, move the company forward, or increase shareholder value. He has turned down or dismissed one opportunity after another, failed to apply the capital he raised, to the company, and repeatedly issued false press releases and allegedly sold WFWL stock through alias accounts.
Wifi Wireless Inc. is nothing more than a vehicle for him to defraud innocent victims of their life savings, and a way to finance his lifestyle and perpetuate the "successful entrepreneur" facade he created. The truth is he has a track record of fraud and embezzlement dating back many years and is nothing more than a run-of-the-mill OC con man.
In fact, Eugene Curcio isn't even listed as an officer of the corporation...only Lynn Peterson and Curcio's daughter Karly are officers. Doesn't that seem odd. You have to wonder if they have been drinking the same Kool-Aid we drank, or are complicit with Curcio?
http://egov.sos.state.or.us/br/pkg_web_n...
WiFi Wireless Inc. continues to exist for the sole purpose of enriching Gene Curcio, and not the shareholders who invested in the company.
Stay tuned for Part Two. The real stories behind, The Curcio Group, Phone Time Resources/ Venture Partners, Crescent Communications(where's Waldo), and Avalon RF. Plus Iridium, Globalstar, and Inmarsat.
The article on Cryoport published on street.com proves one thing and one thing only...the new IR/PR guy is doing his job, and doing it well. Much better than the previous administration. Essentially, the copy is de rigueur. ...yada, yada, yada, required protocol for all PR firms worth their salt.
Sageman: I forwarded the list of suggestions to LS, prefaced by the following letter...
Mr. Stambaugh,
I have always operated under the context that Cryoport possessed innovative technology and a revolutionary product. I also believed past management was inhibiting Cryoport's development and growth. With your hiring however, I felt the management issue had been addressed more than satisfactorily, and the company would subsequently be on the path to full commercialization. But then the sub-prime bubble burst, and the ensuing credit crunch made it next to impossible to raise the required working capital to bring Cryoport's product to market, and the whole process was brought back to square one.
Although I am trader by nature, I have always had a desire to own this company as a long term investment, but CYRX's price action made it extremely difficult to hold. While you appear to have made changes to a legacy system that was obviously ineffective, it appears to me that further adjustments in the business model may be necessary to insure scalable growth. I believe a new framework should be considered for delineating innovation based specifically on Cryoport's technology and market impact.
Without a comprehensive knowledge of relevant market dynamics, customer behavior, and channels, I am relegated to making suggestions that are very general in nature. The following is a compilation of the advice I gave in various posts on the Cryoport message board. I am not certain if they will help in your efforts or be of value to you, but at the urging of some of the participants on the board, I am respectfully submitting them to you.
OT, BBF: Please forward the following to Larry Stambaugh and Cryoport's management. These suggestions are essentially a compilation of the advice I gave in some of my posts. I am not sure if it will be of any help in their efforts, however feel free to pass it on to them, if you feel it could be of value to them.
1) Out-source a qualified business development expert.
2) Reevaluate product, pricing, market size, value proposition, positioning and key messages.
3) Concentrate on the basics of business development, sales and deal flow, rather than the abstract benefits of building brand awareness. Capture the attention of the target market immediately and fill your pipeline, so you can start generating cash flow and feedback.
4) Utilize inbound marketing by leveraging available online techniques, e.g. web content, search engine optimization, social networking, blogs, webinars, feeds, RSS, and white papers. Seek efficiency through optimization, content and social media to help get found in organic search results. Specific & relevant content on landing pages, and keyword optimization, are critical marketing strategies along with a well designed Web site.
5) Consider cutting prices. Cryoport is going to need to be profitable at lower price per unit and low initial volumes. They need to six sigma up and optimize asset utilization, so they can still earn attractive returns at discount pricing.
6) Focus on getting marketing and sales priorities aligned, and having narrowed "target market initiatives" to the essential value propositions; the technological superiority of liquid nitrogen, and the cost benefit of using the Express Shipper.
7) Expose, educate, engage, excite and enlist the end user to reach out to Cryoport. Convince the target market Cryoport's offering is worth the cost and the effort of switching over, and communicate the value clearly and concisely. Prove you have the "best" solution and change the customer's perception of value.
8) Don't rely entirely on FedEx to market the product. Create a value network employing new channels and new use venues, and begin to position Cryoport to be where the money in the value chain will be, not where it is today.
9) Don't target markets that are attractive to established sustaining innovators. Instead of targeting customers already using existing products, target non-consumption. If non-consumers are not available, look at low-end disruption. Target over served customers in the low end of the mainstream market, and potential customers who lacked money/skill to buy & use existing products.
10) Gradually, penetrate the market, and progressively move up, till you eventually render the competition's product obsolete.
Cryoport could easily invest their finite resources in a more effective manner. The end user will then ask for or demand your product. In turn, when a health-care company or CRO requires a cold chain packaging solution, they will look for a transportation company that uses the Cryoport Shipper.
Yeah, Dr. Bernanke is re-inflating the economy, but at what cost? Short term solutions at the expense of long term growth. Sorry, but there are going to be consequences for this monetary policy, and there is going to be a price to pay, somewhere down the line.
I do like the chart on DRYS, though, and we are coming into the best performing months for the stock market....April- July, so there may be a play there short term. However, I wouldn't be thinking long term bullish, in my opinion.
gigi: Between the new Medicare tax on investment income and a rise in capital gains and dividend taxes, a strengthening dollar, major technical resistance approaching, an 80% rally in the SPX off the March 2009 lows, a 100% plus rally in the Russell, over-the-top bullish sentiment, and low volume up/high volume down days, you first have to ask yourself, "Do I want to be long equities, right now?"
HS, I know you mean well ,and your intentions are noble. But thinking you can rally the troops into some kind of activist investor group, which will miraculously turn Cryoport around, is like thinking Obama is going to solve the Israeli-Palestinian crisis or the budget deficit. It just ain't going to happen. There are no short term solutions for problems that took years to develop. Management's past abuses and mistakes, culminating in the offering fiasco structurally damaged the company, while dealing with these problems remained the same. Management must rethink their business model and their marketing strategy, but I truly believe they lack the expertise, and more importantly, the will to correct their mistakes. Yes the SP is cheap, but the market has determined fair value for this company. Please remember what Albert Einstein said, "Sometimes one pays most for the things one gets for nothing."
BTW: One step they should consider is out-sourcing a business development expert.
...and no on can disagree that you can continue to parrot Cryoport's inimitable logic and hackneyed excuses.
We get it. We know and understand Cryoport's business plan, and their marketing strategy. We know its always been their strategy. Unfortunately, that doesn't mean it's been the correct strategy. Guess what... its not working. They miscalculated and mis-planned. I even think they realize it. You may very well be the last person, NOT to realize it, and the only one left, who believes their bullshit rationalizations.
Do you really think that every end user of their product is conducting 3 year clinical trials? If that's the case, they are really in a lot of trouble, and exactly the point I was trying to make. They are targeting the wrong market.
If Cryoport is priced so competitively, that it provides such a compelling ROI for the end user, why isn't their product being adopted? Lower the price till there is more demand.
Betting all you marbles on FedEx is not necessarily the wisest move, because you really don't know how motivated FedEx is when it comes to cold chain shipping, or how committed they are to your success, and you are not branding you product.
Successful companies, admit their mistakes and change before they have to. It may or may not, be too late for Cryoport.
Hs, you know you got the legs for those shorts, and besides, women love a man in uniform. And even though that broom is hard to get a handle on, keep it nearby, because Cryoport is going to need some sweeping changes.
To date, management's strategies are not working. If Cryoport assumed their product was so revolutionary or innovative, they could "leapfrog" the competition with their "vastly improved" product offering, and that their channel was right for their idea, they miscalculted. Quite simply, new entrants in an established market are unlikely to succeed competing against existing sustaining innovators.
Cryoport needs to adopt a truly disruptive strategy. They must not target markets that are attractive to established sustaining innovators. Instead of targeting customers already using existing products, target non-consumption. If non-consumers aren’t available, look at low-end disruption. Target over served customers in the low end of the mainstream market, and potential customers who lacked money/skill to buy & use existing products. Gradually, penetrate the market, and progressively move up, till you eventually render the competition's product obsolete.
This can be accomplished by cutting prices. Cryoport is going to need to be profitable at lower price per unit and low initial volumes. They need to six sigma up and optimize asset utilization, so they can still earn attractive returns at discount pricing.
Don't rely on FedEx to market the product. Create a value network employing new channels and new use venues, and begin to position Cryoport to be where the money in the value chain will be, not where it is today.
"Face reality as it is, not as it was, or as you wish it to be."
BTW: My post was meant to poke a little fun at HS's comments, but essentially, it was an indictment of Cryoport...and well warranted, imo.
FFF: I don't know about that. Summer is approaching and the FedEx drivers get to wear those spiffy little shorts with their company uniforms. In his spare time, HS could could ride shotgun on the trucks. This would help FedEx keep up with the surging demand for Cryoport Shippers, especially during this period of exponential growth.
Or he could move to Lake Forest (lovely this time of year) and and beef up the assembly line. (I hear the lunch cart in the parking lot has great carne asada tacos.) Only in this way, could HS help build up inventory levels and increase capacity in order to meet with the strong demand growth.
Or if he really wanted to be ambitious and move up the food chain, he could be the sales assistant to Cryoport's one-and-only salesperson. ( Also know as the only person in the world, lonelier than the Maytag repairman.)
And if all of the above fails to take place, I saw an extra broom standing in the corner, next to all the unused shippers.
gigi: There is not much to comment on, in reference to Cryoport. What's done is done, the market has valued the company, and until Cryoport starts putting up numbers, everything else is noise.
StockDude: Wrong on all counts. Different VFIN, and just because they are on the bid, doesn't mean they are the ones taking the offer.
FFF: You took the words right out of my mouth. Thanks for the reality check.
Hope Larry has sufficient O&D insurance, a good lawyer, and a better bodyguard.
In all seriousness...do you really think what Larry Stambaugh has to say is going to matter? If there was some earth shattering(positive) news pertaining to Cryoport, don't you think it would already be reflected in the the SP? Does he even have any credibility left, after the offering/ reverse fiasco? Believe me, LS's call will be disappointing, at best. Better hope RODM doesn't disappear entirely.
Welch also said, “Face reality as it is, not as it was or as you wish it to be.” Just wait till Rodman moves away once again, and the stock drifts down to new lows...then tell me again, how they are concerned about Cryoport's success.
Ceo extraordinaire, Jack Welch said, “Control your own destiny or someone else will.” FedEx doesn't have any skin in Cryoport's game. Who knows if Custom Critical is even a priority at FedEx, nevertheless Cryoport's marketing initiative. Major business/marketing strategy faux pas, imo. Welch also stated, " “Good business leaders create a vision, articulate the vision, passionately own the vision, and relentlessly drive it to completion.” You don't turn your vision over to somebody else, and hope they drive it to completion... unless they have an equity share in you business, and a self-interest in it's success...and even then, the chances for success are not as high as when you are full control.
Chudd, the tigress and the cubs are doing very well, thank you. Unfortunately, it appears they deleted my last post... again. Whomever, is doing it, is a real stugotz, and can b.m.i.a.
Breakout above 00.02 moving in 00.02 increments...200MA @ 00.08. Stock appears to have IR/PR support, ie., penny stock promotion...highly speculative of course, because the liquidity could dry up overnight...I like rimm on a pull back...will probably add
1)"The exercise price per share of common stock purchasable upon exercise of the warrant is $3.30 (representing 110% of the public offering price of $3.00 per unit) per share. The warrants will be exercisable by the holders at any time on or after February 25, 2010, and through and including February 24, 2015."
2)You can trade warrants like you would a call option, in this case, an out-of-the money call option, and utilize some of the same options strategies, however you cannot short warrants. The hedging possibilities as well as the kinds of options strategies that can be executed using warrants are more limited than stock options. In fact, the only hedging strategies one can execute with warrants is the protective put strategy and delta neutral hedging using put warrants, which acts in almost the exact fashion as a put option. Rodman is currently making a market in CYPTW, but the warrants are not trading. There is very limited liquidity in the warrants and in the underlying stock also, so I don't think you will see anybody attempting those strategies. Because warrants can only be bought and not shorted, it is mainly used by speculators as a form of stock replacement.
FFF: Could you imagine where this would be trading if rodm wasn't in there "stabilizing" the price?
Cryoport was not loaned money. An investor, or multiple investors, invested in the company, at a valuation they thought was attractive. Additionally, they received 100% warrant coverage as an added incentive to invest. Investors regularly make investments in immature companies with the hope of hitting the "big one", if they think the valuation is cheap enough. Yet statistically, a very small percentage of these investments are profitable or as profitable as the investors thought they would be.
I can tell you right now, what LS will say...verbatim. It's all about damage control at this point, so you really can't believe a word of what he is saying. Oh BTW, Rodman just backed off. You don't think they know what's going on?
If Rodman moves away this is going to turn into "Cry-report"...
price action in front of Stambaugh's conference call, may be very telling.
Lucky: Good point...makes a lot of sense. No color on that topic out of Lake Forest, however. Extremely frustrating!
A.I.D.A... Express Shipper Custom Critical
Always Be Closing!
CEO: My final word on this topic. As always, the points you raise have merit, and I am not disagreeing with them, but they are only 50% of the answer. To afford yourself the best chance of success in today's economy, you must integrate both "old school" and "new school" marketing approaches. Why limit yourself to just one, and in turn get half-assed results.
CEO: I knew that would be your response, and I respectfully disagree. I understand this is a B2B specialized niche market, but you can't ignore TODAY'S basic marketing principles.
You can hunt for organizations that fit your ideal customer profile by placing ads where your targets are likely to see them, exhibiting at trade shows they're likely to attend, direct mail, and yes, you can phone them direct. These efforts will connect you with some good prospects, but you'll also have wasted precious resources on finding the wrong sorts. Including some who've just completed purchases of a competitor's product, or aren't really in the market for other reasons. Money down the drain, with a high opportunity cost.
Generating organic search results through keyword optimization is an extremely important technique, especially for a late mover attempting to leapfrog the established competition. Wouldn't it be better if you could attract the right sorts to your website in a manner that prompts them to contact you?
CEO: Here is why I have so many doubts. Google "cold chain shipping". Do you see the Cryoport or FedEx link anywhere on the page?
CEO: Glad you got a laugh from my comments. Yeah, I wasn't there, so I guess it means it didn't happen. Obviously, it was RUMORED to have happened, and my info came from a very reliable source. Is it possible he was mistaken...yes it is possible. Could LS possibly have discussed some form of a debt deal with FedEx in an attempt to raise capital? Could a possible debt deal have been collateralized with all of Cryoport's big deals they had in their pipeline? Now I'm laughing. Either way, I brought the subject up because I felt it was relevant although not timely. My statement was even qualified and prefaced by saying...in retrospect. I realize Cryoport's marketing concept "has always been to leverage Fedex's team and also use an in-house guy." I am just wondering if its going to be enough and if its going to be effective.
"On December 14, 2000, the plaintiff Blake Martin, on behalf of himself and purportedly on behalf of a class of similarly situated stockholders, filed a complaint in the United States District Court for the Southern District of California against Maxim and certain officers of Maxim, alleging that the defendants violated the federal securities laws by purportedly issuing false and misleading statements to the securities markets."
Guess who was a defendant in that class action lawsuit?
http://securities.stanford.edu/1016/MAXM00/2004513_r01k_002484.pdf
LS was vindicated, but it does give one pause to wonder. And we all know... "He who can no longer pause to wonder and stand rapt in awe, is as good as dead; his eyes are closed."
Just give people time. There are people on the Yahoo board already talking about doing the same to Cryoport. BTW: I gave SPNG to everybody at 0.02 and it went to 0.28...timing is everything. I think most people are out 0.04 cents on WFWL, and I apologized for that.
Yeah, I thought Stambaugh was the real deal, but his recent actions run counter to that assumption. So yes, when proven otherwise, I will change my opinion. Only fools dogmatically adhere to a concept that has been proven to be flawed. The Peter Berry era may have ended, but his legacy and the ramifications of his decisions live on. I expressed an opinion, based on information I received from a reliable source ( just like you do) My G, all you have to do is look at the current state of affairs. In my opinion, Cryoport might be in a better place, if they would have done things differently. I backed up my claims and the market has backed up my claims too. I have also discussed what they need to do to improve their situation.
Nevertheless, I should not post negative but relevant comments? But its better you post your essentially meaningless articles about cold chain shipping. I guess its commendable you continue to promulgate the BS coming out of Lake Forest, giving people false hope all the way down, as the stock loses 80% of its value. I already apologized to the board for the possibility of my costing them any money with my calls. What you are doing is no different than my promotion of WFWL, but somehow you perceive your loyalty and promotion of CYRX as noble and enlightened, while my promotion of WFWL was something sleazy.
BTW: I think I realize the difference between a freight company and a packaging company and pharma company and a CRO. Do you want to explain your theory on equity offerings and dilution again?
Stella: As I replied to carrolu:>> Personally, I think I bring up some very valid points. If you don't agree with what I am saying, you are free to explain why you disagree, and you are also free not to read them. I care because I once thought Cryoport had a great story, but was poorly managed. I thought they had addressed the management issue more than satisfactorily, but it seems their problems might run deeper. I'd like to be able to own this company as a long term play, but they are making it extremely difficult to do so.<<
In answer to your question: No, I was not present during the FedEX, Cryoport negotiations, and I doubt you were either. And please don't tell me you have a verifiable third party source for all information pertaining to Cryoport. They are telling you what you want to hear. How long is it going to take till you realize Cryoport is playing you like a fiddle?
The company is sitting in the crapper! You'll be towing the company line when the stock is trading at a dime.(Pre-reverse adjusted basis & post-reverse also) Albert Camus said, “Life is a sum of all your choices." You don't have to be a philosopher, to know those words apply to business as well. Cryoport is not a scam. Their current status is the direct result of ineptitude, bad decisions, and poor choices. You also don't have to be a rocket scientist, to realize there's something transpiring "under the surface" the shareholders are unaware of, but is getting priced into the stock.
LJT: Trey said, he had "a horrible feeling in the pit of his stomach", and he "feels fortunate Cryoport isn't his only investment". Randy said, "Dawg, what is Stambaugh thinking? And Simon said, Cryoport "made some poor choices" and " deserved to be trading at all-time lows."
jobado: Maybe I have too much faith in people's inherent honesty, or may be I'm just being naive, but I don't think we've been scammed. I do think Cryoport's lack of progress is due to the economy and some bad decisions by management.
I have already detailed Cryoport's failure to utilize even the basic tenets of inbound marketing which resulted in a lack of search engine visibility and missed opportunities. I mentioned how Peter Berry turned down some small accounts and missed the opportunity to generate cash flow, introduce the product, and gain feedback. The biggest mistake however, may have been Stambaugh's decision not to enter into an equity strategic alliance, or joint venture relationship with FedEx.
Stambaugh was in negotiations to receive a large capital infusion ($10MM) from FedEx, but turned down the deal because FedEx wanted equity in the company. In retrospect, this would have been the way to go. Had Cryoport jv'd up with FedEx or allowed them to have an equity stake in the company, FedEx and Cryoport would be sharing the same goals. Cryoport would be enjoying the same benefits they currently have, but they would have more capital, and FedEx would be more motivated to see Cryoport succeed. It would also have put Cryoport in a better position to be acquired by FedEx. They would not have had to do the reverse split, and if you had to be diluted, wouldn't you rather be diluted by FedEx?
Management appears to be positioning Cryoport to follow a sustaining strategy (discussed in the Bloom article) "which is essentially trying to leapfrog existing competitors with an improved offering". The article goes on to discuss the "disruptive strategy", which is the path a great deal of successful companies take. Let's hope Cryoport has not made another bad decision.
hstrader: FedEx deal, 5MM in the bank, and the company's valuation declines 80% in 30 days. What is Mr. Market trying to tell us? If you liked it at $10.00, you are really going to like it at $2.00? The hairs on the back of my neck, and my Spidey Sense are telling me we might have been sold a bill-of-goods.
As C-port stated: >>As for marketing the idea has always been, to sign a deal with a global courier and leverage the marketing of the shipper. It's the likes of FedEx, UPS and DHL, that want to break the back of WC.<< On the surface this may be a more efficient way of allocating marketing resources than doing it organically, but is this the right strategy or best practice for Cryoport? Is it going to be enough? Can Cryoport rely solely on the affiliate marketing efforts of FedEX and other shippers, or should they also leverage available online techniques, e.g. web content, search engine optimization, social networking, blogs, webinars, feeds, RSS, and white papers?
Progressive companies with truly effective business plans are seeking efficiency through optimization, content and social media to help them get found in organic search results. When I went to the "Healthcare Packaging " website, Cryoport was not mentioned anywhere on the site. At least 4 of their competitors were mentioned or had published articles on the site. A search for "CRYOPORT" on the site's search engine yielded nothing. If you run a search on Google for "cold chain packaging" or "cold chain shipping" you will not find the Cryoport link. The FedEx link came up on the first search, but Cryoport is not mentioned in FedEx's copy. Specific & relevant content on landing pages, and keyword optimization, are critical marketing strategies, along with a well designed Web site. Cryoport has neglected these basic concepts, which leads me to believe they lack the marketing skills necessary to compete in today's business environment.
Cryoport could easily invest their finite resources in a more effective manner. Cryoport needs to expose, educate, engage, excite and enlist the end user to reach out to them. The end user will then ask for or demand their product. Then when a healthcare company or CRO requires a cold chain packaging solution, they will look for a transportation company that uses the Cryoport Shipper.
FFF: 5 year low close...in about 45 minutes.