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Hooka,
Where is JD's response to the latest questions? It has been 24 hours. Did I miss it?
"Are you finally accepting some ones point of view or were you just being funny with your crazy sense of humor?"
I was agreeing with fastfish720 because he is absolutely correct. I agree with FACTS everytime!
"So you admittedly say they havent disclosed their cash balance in a "long time", so why would you speculate so assuredly they you know that they have "very little cash on reserve"? That seems rather contrived to me..."
Simple... they were selling shares 3 days ago! Obviously they needed the money!
"How tight are they?"
- From past year's SEC filings... very tight. Like 10% if memory serves. Look it up. Invoice factoring will shave off another few percentage. No reason that in this cutthroat economy that their margins would have increased. For most companies the opposite is true.
"As of when exactly do you know this to be a fact?"
- Well, we are both speculating as they haven't disclosed their cash position in a long time, and don't seem to be in any hurry to do so.
"Also, do you also believe they won't have more cash in the near future?"
- I would hope so as they are shipping some products, but without a line of credit, they would have had to spend their own cash to get the materials to build the Lowes fixtures! Their margins are very tight, so it isn't like they'll be flooded with cash anytime soon.
"and they have the ability to buy companies"
With what? They have virtually no cash, and they can't issue anymore shares... well, they can, but no one wants that!
"or develop new products"
The jury is still out on that one...
"Generally, special dividends are declared after exceptionally strong company earnings"
Note the term "generally". This is absolutely not the case with EXPH or any pink sheet stock.
Just be weary, this move is not done from strength, but rather as a desperate defensive strategy. You did notice that the release appeared minutes after the price dropped below $1?
Additionally, from the PR, they are: "currently reviewing the possibility of a special dividend". This is just a headfake. Did the MMs flinch, or did MOMO guys misread the release? My guess is the latter.
There are considerable legal costs to restructure the company and spin off a division via a special dividend. Is this REALLY the best use of the company's very finite cash reserve? I'd bet that it never actually happens...
Hooka,
Any response to your email from JD?
"spin-offs are often used to UNLOCK VALUE"
-That's not the case here.
By doing the spin off as a dividend, short shares would be in a real pickle!
IF the price holds or continues to climb, the short theory is correct... if it retraces. I'd say the short theory is busted.
"Sounds like shareholders might get to keep their stock in EXPH...but might also receive additional shares of company EXP"X" as a dividend."
I'm sure that is exactly how it would work.
"I call this a solid green flag that CEO JDB has contemplated to enhance the market value of Expo Holdings's trading stock"
- Please explain how divesting a division started 3 days ago can "enhance the market value of Expo Holdings's"? The only way this could add value is if doing so somehow requires all shares to be called in or something. Maybe to pay the dividend all shareholders of record would need to be identified, and this could put an end to any shorting going on. If this is the case, then JD is a genius!
"To share that news today JDB is attempting to counteract the
very obvious manipulation of EXPH ."
- So you are saying that they are trying to manipulate their shareprice?
"A spin-off means: He already has contracts."
It means nothing of the sort.
Spin off dividends are often used to divest a bad division or failed merger partner.
This is NOT a cash dividend.
This really seems like nothing more than an attempt to manipulate the shareprice. I'd call this news a SOLID red flag for investors!
"With the market filled with particle board and foreign made items [] and maybe the cycle is reversing in consumer demands for good old American products."
All the kitchen/bath cabinets that I see in Lowes/HD/Menards are already made in America.
Good patriotic speech though!
"The future for EXPO has NEVER looked or been brighter."
I disagree... I think it looked much brighter Tuesday morning when the world was waiting for the unveiling of the $100M/year with just one retailer "game changer".
You're close :)
"You would just pay the interest each month if that is what you wanted."
You actually don't pay interest, just the fee for the cash advance.
I like you... you can think on your feet and want to learn!
"Since you both seem unwilling to accept or understand the argument presented here on this board"
Please share it with us... I know that I've missed it somehow!
"so lots of other banks and lending institution call it an asset based line of credit"
Technically they are both asset based, but the difference is whether it is a tangible or intangible asset, and the benefits of each are dramatically different.
The 50% based on inventory is tangible asset based. The invoices are considered an intangible asset. That is why they are discounted from face value and cost you a higher fee than a traditional asset based LOC.
A true LOC can be spent at will, and at any time. Invoice factoring is only good for a percentage of the invoice value and can only be accessed when you have real invoices on hand.
A credit line is based on your company's assets, while invoice factoring is a cash advance based on the credit worthiness of those who owe you the money.
Make sense?
Spring,
Your last company did not have a $750,000 line of credit. The part that was collateralized by 50% of the inventory is a real line of credit. The 75% is likely the limit of the percentage of accounts receivable they were willing to invoice factor. I'd guess that someone had summed the two and called it a $750k LOC.
Make sense?
Good post.
The answer is probably covered by an NDA! <VBG>
"doesn't matter if it is a loc or invoice factoring or whatever else you want to call it. $1 million is $1 million however you access it."
Absolutely untrue. I'm not sure what to tell you if you don't understand the MAJOR differences.
"They JUST rolled out the new patented product."
- Wrong. Patent pending. A provisional patent at that. $220 and a stamp.
Please stick to the facts, pumping caused the current shareprice crater...
"Why not ask JD?"
Because I KNOW the answer... I've been posting it for weeks! No one wants to believe what I'm saying and if I post an email from JD, they STILL won't. Get it?
Some 3rd party must present this here. Maybe you camelion?
That is invoice factoring, which is not a line of credit, it is like a payday loan. Note the term "credit facility".
I want to hear JD admit it! Someone posted here a while back that he DID admit it to them! Who was that? Please take a bow! No one who is long wants to hear the truth, let alone see it posted here!
"With no increase in A/S and no obvious need for JD to raise funds"
No need? Why did he just sell 2M at $.03?
"I certainly don't know but as many have stated, a large retailer will not be giving it floor space if they do not feel it will be accepted and that is what makes them successful."
- Maybe you should wait to see if a retailer does sign on before buying? I personally don't think they will get one.
Please ask the question, I want to hear to from his lips and publicly... It is one thing to say something for private consumption, it is another thing to state it publicly for the record...
A couple more Hooka...
- How many shares does Southern Candle hold, and have they sold any?
- Does EXPH have a line of credit... not invoice factoring, but a working line of credit? If so, how much for and with what bank?
- What are you getting stock_barber for Xmas this year?
Ok, just kidding about the last one...
Where did he get $800 from in his estimate of the etc. sales price?
Where did the $800 number come from?
How did JD think that he would get $800 for an etc cabinet? He threw this number around repeatedly! Home Depot doesn't even sell any stocked bath cabinet in the price range. What was that price for then? An entire kitchen?
You can already buy a wide array of preassembled cabinets at Lowes for around $200!
White:
http://www.lowes.com/lowes/lkn?action=productDetail&productId=247994-59890-B36.WV.WH&lpage=none
Oak Finished:
http://www.lowes.com/lowes/lkn?action=productDetail&productId=283505-59890-B36.WWR.TS&lpage=none
"You are confusing orders. The Lowes shipments are store fixtures, not the "game changer" cabinet.
Why won't any longs confirm this FACT to put the incorrect information on this board to rest?"
<crickets chirping>
So no one wants to straighten out a fellow long who has his facts wrong?
You are confusing orders. The Lowes shipments are store fixtures, not the Mr. Potato Head "game changer" cabinet.
Why won't any longs confirm this FACT to put the incorrect information on this board to rest?
"EXPO's interchangeable cabinet faces are LOVED by those who matter....SOME OF THE LARGEST RETAILERS IN THE WORLD.
A MULTI MULTI BILLION DOLLAR BUSINESS AND EXPO HAS WHAT THEY WANT AND NEED : )"
Yes, they love it so much that they haven't placed an order yet... I doubt the $12k order is headed for a large retailer, it wouldn't even stock a single large store, IMHO.
"I guess they are shipping 2.5 truckloads to Lowes with no agreement?"
No, they are shipping truckloads of store fixtures to Lowes. This is a totally different, and previously announced, deal.
"He doesn't and he's 100% wrong"
- How can a FACT be 100% wrong exactly? It is a FACT that no announcement of any agreement with Lowes to sell the Mr. Potato Head cabinet has been announced.
"Please dont pass off opinion as fact."
I am ONLY stating facts. If there is an agreement with Lowes, it has not been announced. So, the only "opinion" here, would have to be yours.
"3. Billion dollar client exhibiting and selling new product
for EXPH."
-This statement is not accurate. They have not signed on a large retailer for their "game changer".
"Last I looked EXPH was a Pink and has always been a Pink so all this talk of audited financials is a Paper Tiger.
If at some point they decide to Audit financials and uplist, that's a different story.
Complaining about non filing isn't a true objection since that was the status when everyone bought."
Read the thread again... we were talking about uplisting... actually, that may have been a different thread...
"How many otcbb have financial audits? .
IN otcbb i see thousands stock with nothing real trading more than 100 million cap !!!..."
All of them require an audit! Are you thinking of pink sheets?
The periodic reporting requirements under NASD Rule 6530 require annual audits of an OTCBB issuer's financial statements.
"company is begin buyback shares "
- Then why were they selling 2 days ago?