Decided to check up on the ole SDVI board. Proceed with random speculation:

So the only news (apart from the lack of news:) is that someone may have sunk $50k more into SDVI (assuming those new 500M are gonna get used). What are reasons SDVI/Mart would dilute more shares?

1) The ever popular 'evil scheme to steal shareholder value'. Blargh, unless these shares are being used for stock options or straight up compensation, there's no way someone could sell them all in these markets so that makes no sense. They are worthless at this time and at current volume, so its not just a cash grab. Cold

2) Related to the Graffiti:SDVI merger thingy. Possible, as there seems to be action on both fronts at the moment, but I don't understand how diluting SDVI a bit more would 'help' the GRAFF merger in any way (unless they are looking for some nice round number to use, lol). Warm

3)Control. The share expansion, which presumable all was purchased by one person (I'm guessing Mart or another insider) gave someone the controlling interest or vote control to do something that needs to happen. For example, Mart said before everything was waiting on one signature; I think I floated out the possibility at the time that that wait could be on Ken's signature (if not, was thinking it). For those who are conspiracy/they're-ripping-us-off minded, if you thought Ken was up to shenanigans before, maybe it would make sense for him to block financials from being released with his voting shares or whatever. Maybe this dilution gives Mart control enough to force 'X' to occur, despite 'Y's objections. Just a random guess. The other way to look at it is that a certain amount of control might be needed to take the company private. Dilution to major shareholder could achieve that.Hot?


On another note altogether, the games selling is entirely relevant, as the latest info available has GRAFF owned as a subsidiary of SDVI. Could that info be wrong? Sure. But that's the latest info. Also, if no games are selling, the company is bankrupt, 100%. If games are selling, then, like that Schrodingalingers cat (or whatever the hell his name was), the company could be alive or dead, at least it has a chance. Quantum investing!! :P

Cheers,
Saredi

Not a stupid question at all. It's called a targeted buyback, and yes, management can make a tender offer available to a specific shareholder. Usually used to kick out a vestigial remnant owner when the joint-ownership goes sour, or get rid of a troublesome activist shareholder, or as a golden parachute for an insider. Example would be if RJ gets canned from the company and owned shares (says he didn't but let's talk hypothetically here), you'd want to buyout his shares to get him entirely out of the business, no votes, no control (from Ken's point of view). Targeted tender offer at a fixed price and quantity is one method to do so. Wouldn't give one to 'just some guy' who buys a lot of shares though, unless your talking 15% of the company of course. There are better uses of $150k, so don't get any ideas. :)

Looks like I haven't missed anything the past few weeks. Surprising bit of volume the other day happening all at once and for no discernible reason; looks like a cross and since Machias claims to know who it is, I'd say he/she was on one end of it or another. Just a guess, doesn't really matter. March 31 deadline ticking, ticking, ticking.

Back to initiating sell ratings on Ag stocks...fun fun fun.

Cheers,
Saredi

If you log onto your Bloomberg, the positions Mart held at SNS Bank NV and RaboBank are listed as "Executive"; at least he wasn't the mailboy of the office. :) But really, unless you think Ken could do a better job still being in charge, arguing over Mart's history is a bit like biting the only hand that's offered to feed the company lately.

Till end of Q1 to get that Current Status and Financial situation sorted out. We'll see how it turns out.

Cheers,
Saredi

Amen.

So no abnormal dilution, still at 2B O/S. I agree with Beach, why would this have been such a 'secret'? Nothing earth-shattering there.

Thanks for looking into it. CEO seems quite responsive to shareholder requests. Q1 to get out financials is fine.

Cheers,
Saredi

"If earnings and good business sense could support it"

I don't think we have the earnings and distribution ability to do so. Of course, you are right that it would go a long way to solve problems if it happened. The earliest for such consideration IMO would be in a year, too long for many GRAFF holders.

Cheers,
Saredi

You're right that it would still leave O/S problems. Perhaps the problem is that folks are asking for two problems to be fixed which are mutually exclusive, in the short term. Either GRAFF gets liquid (merge), or the share structure gets fixed (r/s). Do both? I won't blame the new CEO for not being able to make everyone happy, short of a gangbuster year in Apps, as I don't think it's possible.

Everybody vote! lol

Cheers,
Saredi

I'm betting this is the approximate plan Mart has in mind. I could live with it, despite the unresolved O/S issue.

Cheers,
Saredi

Still got an L2 to post this morning? Curious to know if this is one house buying or many. :) Either way, happy to see the end of trips.

Cheers,
Saredi

Well, another PR upcoming? My first reaction was "Of course, the 4th app took a little longer to get approved, so that's the new PR". But then Bionic posts things like:

"I have just been advised that it will be an "out of the triples PR" by the CEO... "

And I think, as nice as the apps are, we would be highly disappointed if the 4th app was all that was included on Tuesday, lol, when you build it up like that. So I guess we should think what else has Mart promised that's still outstanding. Only thing he mentioned left was Current Status/Financials for last year. Mart always has alluded in prior PRs as to what will appear in future ones, so assume the same pattern will follow. Current status/audited-unaudited financials to come next week (probably with the 4th RR app on the side), and an allusion to either the future fate of Turbo/Fracture/some new game to be PR'd later on. As long as its not a Roller Coaster deal, or any deal over $10 million in value, because either of those I would no longer believe. Small but realistic steps only.

Thanks for the social media props, Bio. Its a relatively easy and cheap way to keep interest up in the companies.

On a sidenote, the ToysRus only has one game and only one copy of it available, so unless I missed a massive sell-fest during the day, it doesn't speak much yet to reorders. :) Sounds like we owed them a couple residual copies from a previous lot order from last year, rather than the start of a whole new order. But hopefully I'll be wrong on that one and they'll put 4 games with 80+ copies each in next week. My opinion is that RR wii is on hold until gamestop is empty, since how can another retailer compete with someone who's selling our game for $4.99 per new copy? No one else is going to order 40,000 copies to sell at $19.99 until that competitor is done dumping on the market. Then the RR orders will come off hold again. IMO.

Cheers,
Saredi the Joykill

You're in an enviable position sir. Well done!

I believe what was meant was that before either a Merger/IPO/Anything Else S.S. Related can occur, the audits need to be completed and status brought to Current (i.e. 'value of SDVI/GRAFF must be clearly known'). Then, whichever option is most beneficial to the corporation/shareholders will be chosen (likely merger). Sounds like the correct strategy in this situation.

Beyond that, we have a new CEO who is not bound by prior management gratuitous promises that lack legally binding contract status. Going after Ken you could make a case perhaps re: fiduciary duty/duty of care, but SDVI has Mart as the CEO now. You may have to bark up the Graffiti tree on this one. Proving fraud vs incompetence is difficult (read: expensive).

Anyone notice the archived news on the SDVI website is empty? All those past PRs are no longer supported for a reason, IMO. They are in the dungheap of history now (just the financials remain, afaik).

Cheers,
Saredi

Congrats on the new gig. Appreciate ya keeping us all in the loop as new things come up. Any word on ungagging the TA or is that for after the merger dust up is eventually settled?

Cheers,
Saredi

;)

I like to lowball my earnings estimates but certainly hope your estimates turn out to be more accurate. With a $2 margin and 3-4 opportunities for sale, it could be more profitable than the Wii release (without the tied up capital of having to pay to build the dang things and worry about returns). We should do more of this appy stuff, lol.

Are these Apple app downloads available worldwide or is this a geographically bound release at this time?

Cheers,
Smartphone-less

Well, that was fairly quick (if we assume that Mart got this ball rolling after he took the reigns). It's always nice not to hear about 12 months of lot check rejections for a change. Assumably the 4th will be released shortly as well, and thanks in advance to those who have the time/ability to track/calc/post sales estimates for these apps, which is handy. Variable CGS is non-existent beyond whatever licensing fees we pay to NordicSoft and Apple's cut; anyone know what Apple's take is of an average app? Flat rate or percentwise? Just a guess but we could be making about 0.99 as a margin on these (I'm randomly assuming $1 to licensing, $1 to apple, feel free to correct). If HTR racer made over a million downloads, then between these 4 apps, maybe we have a chance at a few hundred k's of additional moolah this time next year minimum. Hopefully the RR Wii sales were at least sufficient to break even on our Fixed Costs, and the apps can be the gravy that lines our pockets (finally).

Recall Marty's first PR, which made one specific promise:

1) More news on games to come before year end - Promise kept with 12/27/11 release to advise of the 4 upcoming apps.

Recall Marty's previous PR, which had two key promises (IMO):
1) "Signature Devices, Inc. has four new games in final review with Apple to be sold through the iTunes store in the first quarter of 2012, and these products will provide a new source of revenue to SDVI to kick off the New Year," Mr. van der Velde announced today.


I'm gonna call this one pretty much kept, since we have 3 out before the halfway point of January, and can assume the 4th is just making its way through Apple's redtape a lil' slower.

2)"We are also retaining securities counsel to help SDVI obtain a current status with our Pink Sheets listing and plan to make the appropriate reports and disclosures to achieve this during the first quarter."

This is the next big one, and the one that everyone's been clamoring about. Audits and disclosures by Q1 end. We're early in the timeline, lots of time for this to be finished.

Well Mart, your record is at 2 for 2 on promises made and kept, with a third still outstanding and lots of time in the Quarter to keep it. I don't know about anyone else, but we might just consider this to be an inkling of a positive trend so far. If that third one hits (I doubt the financials for last year will be all that pretty, but as long as we're still solvent), we could be looking at a sweet 2012 season.

Unspoken concern: There has been no mention of Turbo Trainz or Fractured Soul in the past 3 releases. It might be assumed that those deals are gone (since they didn't appear for Xmas sales and aren't being mentioned anymore). If there's still a plan to publish them, it would be prudent to mention it in the next release. If no mention is made, I'd assume the deal is dead. Which would be unfortunate but surviveable. Could be a lack of NWC at the moment to go ahead with the publishing, though Fract Soul's lifecycle is getting to the point it might not be worth pursuing with a new 3D version out in 2012. Anyhoo...

Cheers,
Saredi

S-Mart will deliver Boomsticks to us all one day... :)

Thanks for the promised news, Mart. First promise made, kept. A good half dozen of those and we may have honest to goodness trend. :)