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After many years of sticking by this company, I can officially say yesterday was the beginning of the end. Bill Quirk's underhanded move to take control of HDVY is complete and the company likely won't survive. Quirk clearly got his people on the board, who then got him on the board, giving them a majority and the ability to can Norris; really bad move. The fact that Kevin Kowbel - with no experience nor contacts in the field - was named CEO would be laughable if it wasn't so sad; I don't know why NEO, or any other company for that matter, would deal with HDVY or its management, its a laughingstock. And for those of you who think Quirk is some savior, remember that he was on the board from 2005-2008 and nothing was accomplished, so what's different now? Its a shame this company is going down, but management is an embarrassment.
The guy won the Presidential Medal of Freedom and the San Jose international airport is named after him; my guess is he doesn't need to squeeze a few extra bucks out of a penny stock company.
the company is clearly going under, that's why a former Secretary of Transportation and Commerce jumps on the board of a penny stock company at the last minute to ride the ship to the bottom. Get serious, why would Mineta, a 25 year congressman and Washington player, jump on board a penny stock if the company is going under? Makes zero sense; this is good news, plain and simple.
A brief glance of the 10Q doesn't reveal much from the financials, but they did add a heavyweight to the board of directors last week; Norman Mineta, former Secretary of Transportation under Bush and Secretary of Commerce under Clinton. Maybe HDVY isn't a scam.
Why would he need to see the Q1 financials? I don't know, maybe to support his allegation that Norris is spending the company into oblivion; do you know how much the company is burning per month? No, neither do I. Moreover, if Quirk's comments are based on public information alone, then they are pure speculation, and should carry no more weight then if you or I made them. Again, I wouldn't put much stock in this letter, Quirk, like Barnhill, is on the outside of this company now and he doesn't like it. And if he's not, and the company is going under, why would he let everyone else know before getting out? He could have been liquidating shares for years, yet here he sits.
As far as Norris, he has been CEO since December yet the only filings have been related to Barnhill's termination as a consultant and the 10K for last year. There has not been one filing or press release related to 2013, so to say someone can learn something about the current status of the company from "public information" is ridiculous. Do I expect anything good? No, not really, Norris has failed as a CEO to keep his shareholders informed, which is a no-no.
From the "Quirk" letter:
"All this would be fine if you or they had produced revenue or investment for HDC. Or positioned HDC for merger or sale. Or exploited the patents. Or done something, anything, to improve the miserable 4¢ stock price. Regrettably though, you and your League of Illustrious Resumes, many of whom, including yourself, are eligible for Social Security and Medicare, have produced exactly nothing of substance. It's a great retirement gig with no evidence it will end until the money runs out."
There is zero public information to support the above statement from the letter; again, they may have done nothing, but how would Quirk know this? Has he seen the 2013 Q1 Financials? does he get insider information? If so, why hasn't he been selling if the company is doomed? Bottom line is that Quirk has been shut out of the company and he is upset; that is, of course, assuming Quirk wrote the letter.
I wouldn't put much stock in this letter from Quirk, assuming he even wrote it. He says that Norris, etc., have done nothing to help the company since taking over and are bleeding it dry, yet how would he know this? He isn't part of management or on the board, so unless he has insider information, ie., HDVY's 2013 Q1 financials, he is shooting blind, just like the rest of us; if he does have insider information I would hope he is smart enough not to say something in a letter on a message board. Again, assuming Quirk even wrote the letter, my guess he is just upset, like the rest of us, that we have heard nothing from management; the silence has been inexcusable.
I listened to the Neogenomics Q1 earnings call this morning and HDVY was mentioned by both the CEO and CFO. Unlike in previous calls, the CEO went into an unsolicited, in depth description of the prostate cancer test, and indicated that NEO has filed for a patent that would augment HDVY's patents on the prostate cancer test technology; long story short, they are working hard on the test and he specifically mentioned the prostate cancer test as one of NEO's keys going forward; he did, however, indicate that this test was in long term development, ie., its going to be a while. The CFO mentioned HDVY when going through NEO's financials and why NEO increased R&D spending significantly in the first quarter; according to the CFO, NEO is spending a lot more money to develop tests based on HDVY's technology. I've listened to 2-3 of NEO's previous earnings calls and this is the first time HDVY has been mentioned by the CEO or CFO without being asked about the company; there is little question after listening to the call that HDVY technology is a significant portion of NEO's platform going forward; whether anything will come from it, only time will tell. Now, if we could only get HDVY management to say something. Good luck to all.
This from Neogenomics 10K-Annual Report out today:
"By licensing this technology and combining the expertise that already existed at HDC with our expertise in genomics, proteomics and digital imaging, we believe we are well-positioned to begin developing innovative and proprietary new products. SVM-RFE techniques allow us to combine and analyze data from genomics, proteomics and digital imaging to develop practical, cost-effective and reliable new assays. Using this technology, we believe we will be able to offer a whole line of advanced tests that will help physicians better manage the treatment options for cancer patients. We have prioritized the development of better tests for the diagnosis and prediction of clinical behavior in prostate cancer, pancreatic cancer, breast cancer, leukemia/lymphoma and other solid tumors as part of the License Agreement."
The positive is that Neogenomics is still working with HDVY and trying to develop tests in multiple areas; we'll see how that pans out. The negative is that we have now received more information about HDVY from Neogenomics then we have from HDVY management; the lack of communication, especially from a new CEO, has been ridiculous.
As I noted, I could be wrong about his "consulting" duties, but my gut tells me he is getting shut out of the company completely and there will be minimum compensation to him going forward. I believe the consulting agreement was Barnhill's attempt at a golden parachute when he got pushed out, as the pay was better under the consulting agreement then his employment agreement. I think the large players in the company, such as Quirk, etc., saw this agreement and said no way, that is why 3 weeks after being named interim CEO, he is out and Mark Moore is in as a temporary COO; why be named interim CEO to resign 3 weeks later, without a permanent replacement? Something obviously happened during that 3 week period, otherwise he wouldn't be gone. Regardless of this speculation, Joe Mckenzie is running HDVY right now as Chairman and the company has a much better chance of success without Barnhill at the helm.
I think you are going to see a significant drop in expenses over the next few months because I believe Barnhill is completely out of the picture at HDVY; if you read the filing from 11/21, it notes that Barnhill resigned as interim CEO a week earlier, i.e., he lasted less then a month as interim CEO; I think his job as a "consultant" was also curtailed at that time; I could be wrong about that, but I don't expect to see much in the way of him being compensated; at this point, I believe Joe Mckenzie is running the show.
At $200 per hour and a minimum 35 hours per week, Barnhill isn't going anywhere; at least not by choice.
Neogenomics had a couple of huge trades this morning which totaled 950k+ shares; have to think it is HDVY selling its remaining shares in NGNM. If so, the company is burning through cash way to quick; hopefully the board can get expenses under control, because Barnhill has/is clearly mismanaging funds if HDVY already blew through the $800k+ that it received from the initial NGNM stock sale back in August; if the burn rate isn't brought under control, this stock will be finished soon.
I believe Barnhill's "resignation" is a huge plus for the company as a qualified CEO can now be installed. I wouldn't believe for a minute that Barnhill resigned on his own, he was forced out by the board (and Bill Quirk, the largest shareholder); why would he leave a company he founded a decade ago, when it is finally profitable and he takes home a nice salary? It doesn't make sense. Plus, the company is sitting on 950,000 shares of NGNM, which currently has a buy rating fron multiple analysts who have projected a share price of anywhere from $4.60-$5; in short, the company has cash and isn't going under anytime soon. My guess is the board was tired of Barnhill's antics and decided to pull the trigger; remember there is a reason that Gallagher, Hadden, etc., only lasted at HDVY for short periods, and that reason was Barnhill; he had run off virtually everyone on the business side of HDVY. With new, qualified leadership I think we are going to see a much stronger HDVY, and its potential come to fruition.
At this point, I don't think Barnhill does much as Neogenomics is creating the diagnostic tests and Howard Loff of Doctor's optimal is handling Retinalyze, so Barnhill isn't the point man in those areas. What would be interesting to know is which party terminated the Quest Agreement; obviously, everyone assumes it was Quest, but after re-reading the 10Q I'm not sure that is the case; Quest has been sitting on its hands for years, and I'm not sure HDVY didn't see a better opportunity to get the tests to market with NGNM; NGNM, while a fraction of Quest, is rapidly growing and trying to make a name for itself in the laboratory industry, and what better way to do that then cutting edge new tests; furthermore, a case can be made that if Quest introduces these new tests, these tests might cannabalize revenue from other more lucrative areas, such as biopsies; in short, these tests might be beneficial to the patient, but not Quest's bottom line, so they won't see the light of day; what amazes me, is how incestuous this industry is, as the CEO of NGNM, Douglas Van Oort, was the COO of Quest back in the 90s, and NGNM's CFO was a regional controller at Quest until the mid 2000s. All this being said, I would still can Barnhill today.
I read it, and it's uglier then I thought it could be; Quest and Abbott being out of the picture might be a death blow, and Retinalyze sounds like MelApp two. The fact that Barnhill actually increased his compensation in the second quarter (albeit through additional shares) is a travesty and an insult to shareholders; I've been a long time holder of HDVY, and dealt with a number of disappointments, but this may trump them all. If HDVY does not announce some positive news in the next 30-45 days, enter the fat lady, because they are burning through cash (and now NGNM stock) too fast.
Seeing as how Barnhill refuses/fails to update the shareholders about the company, it'll be interesting to see what, if anything, the 10Q contains today or tomorrow. It is hard to imagine that a publicly traded company could do a worse job keeping its shareholders informed - we've had one press release about neogenomics/quest/cancer testing since the first of the year; while I'm optimistic about HDVY, management makes it difficult to remain so. Good luck to all.
No mistake, I'm just looking at the short term (next 2 months) why are you are looking more long term; I agree with your long term outlook about Neogenomics and I'm really hoping we see those tests commercialized before year end. Like almost everyone on this board, I have been here a long time waiting for positive results and I'm hoping the Q1 results can light a fire under the share price; I'm not looking for a miracle, but I took for granted a lot of days when this stock languished in the .20s and .30s, not realizing we would be under .10 for a year or so. Its been a long ride and to think we are still a year off from reporting (hopefully) significant revenue is painful; hopefully todays news and the Q1 financials can get this stock back on people's radars and moving up. Good luck.
go back and read the second half of my post #10623 and you will see what I am talking about. HDVY is going to report Q1 financials in the next few weeks and my guess is they are going to state they are profitable for the first time because of the cash they received from Neogenomics; this should cause a rise in the pps as profitability on the OTCBB is rare; my point is that if a rise occurs, it will occur from this non-recurring revenue, ie., we won't see this revenue in Q2; I am hoping of course that we see millions more in additional revenue from neogenomics but that revenue is at least a year off (or won't be reported until end of Q1 2013) if the tests don't come out until the end of the year. Long story short, I believe the pps should rise with the release of Q1 financials, but the revenue driving those numbers is a one shot deal. As far as Neogenomics doing their due diligence on HDVY I would hope they did.
Of course its a licensing agreement but for the purposes of reporting financials and the current pps the only thing that matters is the cash and stock they have received, not what they might recieve if and when the tests come to market; no one is buying on the come.
to borrow from former President Clinton: "I feel your pain." I also think it is very fair to say that Barnhill has been the biggest question mark about HDVY and there is a fair chance the companies success will be in spite of him, not because of him. That is my hope with Retinalyze, that Dr. Hoff, an eye surgeon, is carrying the ball on this and not Barnill. Bottom line, HDVY has shown great promise but hasn't delivered and I can understand why you are skeptical; hopefully, the revenue from Neogemonics, although a one time deal, can spark the stock price.
As always, it just depends where you bought in at, but there is no question that the stock has dropped over the past few years; that being said, I've been in this stock since 2009 and quite frankly one could make the argument that it should not have traded as high as the .40s back then; when it was that high the company had no $3m deals executed, no retinalzye, no intel patent infringment case, etc., all the company had was a case against vermillion and the same deals with Quest & Abbott they have today; the stock was high on pure speculation and a good PR machine. I understand yours and others frustration with this company and on more then one occassion I've felt Barnhill needs to go, but if the company reports its first profitable quarter in its history that cannot be taken lightly. HDVY has a very long ways to go to reach its full potential, and quite frankly, there is a distinct possibility it will fail, just like hundreds of other businesses every day, but to dismiss the potential of this retinalyze deal and the $3m from neogenomics is not giving credit where it is due.
wow, i didn't realize stocks were stagnant and couldn't go up or down; I guess were stuck at 8 cents forever and should give up.
I guess you either don't read, or don't know how to read financial statements.
so I guess the almost $3m they recieved in cash and stock from Neogenomics isn't real money and doesn't count?
I agree Steady, this press release has the potential to be huge news and isn't even in the same ballpark as the MelApp. Assuming the minimum requirements under this deal are met in 2013, HDVY would be generating a minimum of $550k per month in revenue, which more then keeps the company afloat, but actually will make HDVY profitable based on its current burn rate; even if the earnings per share is very small, say one cent per share, you should be looking at a stock price of .30-.50 minimum based on a multipe of 30-50 (higher multiple for a otcbb stock); on a side note, I think HDVY's numbers for 2012 Q1 will actually look pretty good because they received the $1m from Neogenomics; I realize that $1m is non-recurring revenue, but it should make the company profitable for Q1, which is good for the share price and much more attractive to potential investors; profitability on the OTCBB is rare.
Neither have walked away from anything; Abbott gave up rights to the LDT but kept the exlusive for the in vitro test, which I believe needs FDA approval; I believe that HDVY actually wanted Abbott to give up the exclusive rights to the LDT so they can go after the entire market by selling the test themselves (see buying or merging with a lab) and they can also enter agreements with others besides Quest and Abbott; not sure why Quest is dragging its feet, but I think they are in the game 100%. There is no question this has taken much longer then anyone could have expected but I think the company is close to launching the test; look at it this way, why would a vp at Quest come on board with a significant portion of his compensation (2m warrants) contigent on goals if he didn't think those goals could be met? My guess is the acquistion or merger with a lab is imminent, but only time will tell. All in all, I think the company is close, but I also think they have thrown out to many red herrings (i.e., the MelApp) which have made many followers of the stock apprehensive. If you are shareholder good luck, if not, I think now would be a good time to buy.
There is one piece of the news today that is very important and that is Mr. Hadden's first million warrants are to be issued after a merger and/or acquisition of an approved laboratory. In short, it looks like HDVY is going to start their own lab and manufacture, market and sell the test independent of Quest, Abbot, etc.; this must be why HDVY announced Abbott relinquished the exclusive rights to the test back in the summer and now it appears it was actually really good news; now HDVY can distribute the test themselves and go after the entire market, not just those patients in the Quest network (remember Quest only provides psa testing to roughly 5m of the 25m tests per year); also, when they sell the test themselves they keep 100% of revenue, not the 1-2 percentage points from royalties. Long story short, as their own lab, HDVY has unbelievable potential.
The melanoma phone app is out; it was released last thursday according to itunes (where I found it); go to the app store on your iphone or ipad and search for melanoma apps, its there. I assume that is why the PR firm is getting involved.
You touched on something that I haven't heard addressed here before, and that is a 50% ownership interest by Quest. I think there is a strong possibility Quest is going to purchase a controlling interest in HDVY, which benefits them in two ways; revenue from test sales, and the potential investment opportunity of developing HDVY from a penny stock into a multi-dollar stock; Quest's potential return is huge if they can get in cheap and drive this stock to $2-3 per share. I think there is a distinct possibillity of this happening (I heard Quest has done this before) and kudos for bringing it up. Good luck.
It'll be interesting to see what that number is at closing on Friday but I suspect it will be significantly higher; I just didn't know if that 217m was a recent change (last day or two) or had been up there for a few weeks. Thanks.
Is it me or did the OS on the quote page move from 210m to 217m? I'm not sure if that is an oversight on my part or whether it has been there for a while. Clarification is appreciated. Thanks.
If Quirk doesn't exercise the warrants, I wouldn't read to negatively into that; I don't think it is a reflection of the company, but more an indication of Quirk's financial status; we have all been assuming he has the $5m cash to exercise his warrants, and that is a big assumption. Maybe he does, maybe he doesn't, only time will tell, but I think we can all agree that the fincancial situation of a lot of folks in 2010 is a lot different then 2007 when these warrants were issued. Overall, I believe HDVY has known all along that news from Quest, etc. isn't coming until after September 7th, therefore the company is not releasing any news and keeping the price low; Barnhill and the rest of the gang don't want the dilution and as I mentioned in a post back in May the company is not happy with how Quirk got these warrants, i.e., the counterclaim for breach of fiduciary duty. Regardless of all this, every day that goes by, we are one step closer to success; I think October/November will be the beginning of a fun ride. good luck to all.
As we have discussed before, I doubt we will be hearing any news from HDVY until the Quirk warrant issue is resolved. The good news is that we will have a decision on that no later then September 7 and hopefully sooner if Quirk pulls the trigger now. The best news is that we have Note M resolved and are soon to have the Quirk issue behind us; once these issues are behind HDVY, I believe we will see the company release news and the stock price move dramatically up in Oct-Nov. No question it has been a long, quiet summer with HDVY but the two biggest hurdles this company has faced on the investor side are almost behind us and that is huge; good luck to all.
It'll be interesting to see if we ever get news about the prostate tests from HDVY; I have a feeling Quest wants the technology and will acquire HDVY before the tests are ready for commercialization; obviously its cheaper to acquire HDVY now, before any news leaks about the success of game changing technology. If I'm not mistaken didn't Quest say earlier this year that they are in the market to acquire a genetic testing company? Regardless of this speculation I think HDVY shareholders are in a good spot and by next year we will look back on this summer of silence and laugh. Good luck.
I don't believe we need to worry too much about the long term effects of the settlement; the addition of Dr. Albitar, the exit of Scott Tobin, the resolution of note M, etc. I believe are all steps pointing to the acquisition of HDVY by Quest; I think all the loose ends are being tied up and we are going to see Quest acquire HDVY in the next 6-12 months; my guess the purchase price will bring somewhere between $1-$3 per share. Good luck to everyone.
Zenos,
Thanks for the welcome to the board and I wholeheartedly agree that if the LDT is ready, news will come out regardless of HDVY's position; I, along with you, would be ecstatic if that happened tomorrow and wouldn't give two flips about Quirk. The point of my original post was to try and ease the minds of those on the board lamenting the fact there has been no news over the past six weeks or so and that the price has been languishing; I think the lack of news and the clear manipulation of the price (amazing how it never closes below .142, which is just enough to keep millions of Quirk's warrants "in the money") is occuring because of the Quirk issue. I believe HDVY management (along with Quirk) knows the test won't be coming out until after September, therefore they are trying to keep the share price in check such that Quirk can't exercise his warrants when they come due in September; my belief is, if HDVY releases consistent, good news (not the "big" news) and the stock runs back into the .5-$1 range, then Quirk can sell some of his millions of shares, cover his tax obligation, and then exercise his warrants, netting additional shares and instant profit. I just find it too coincidental that HDVY was consistently putting out solid news for months, and then the Quirk dec. action is filed in early May, and the company goes deathly silent. Regardless of all this conjecture, as you know, the only thing that matters is the success of the test; whether it comes today, tomorrow or a year from now is immaterial, we will have all hit a home run if it is a success. Good luck.
Putting aside our fun back and forth, I would love to know your reasoning for buying 2.2million shares of HDVY. I hope you make a fortune from it.
google warrant v. option, it will take you five minutes to read it.
you know we are talking about warrants here, not options; I thought a keen investor such as yourself knew the difference, but you never know. Good luck with your investment, if you don't know the difference between an option and a warrant you might need it.