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There is another webinar & call today at 3pm CST for anyone that missed the one last night
http://inkwayusa.com/call.htm
i agree ken if anyone would like information on what greene concepts has been up to then it certainly wouldnt hurt to join in the call or free webinar.
I once had an idea to put static bicycles attached to electricity generators and the homeless could get on them and once they have chugged away and produced enough clean power....it would spit out a nickel. nobody every bothered to implement it :P
looool nothing like a good bit of spite eh? :P
yeah i seem to recall the last time Lenny "bought" shares was a few months back when he wrote off debt at i think it was circa 0.0012c a share (i'm also too lazy to check that figure for sure) so that puts him at quite a loss too.
It also makes me think that he's got to try hard to make his company work. I hope for all the shareholders that he manages to.
agreed, there is little confidence in him. Hence the very low PPS. We dont know at all that he flushed cash down the tubes though. Businesses need capital to start up and to run. We dont know what costs he has used the money for or if its been used wisely or not.
I hate to say it but pinky companies dont trade shares for the good of their shareholders...they trade shares so they can get more money into their bank accounts to fund their fledgling businesses. They want money for themselves...not us. The flipside of that is that if they get the money they need and use it to grow their business then everyone wins in the end.
Time hasnt told yet which way LKEN will end up.
I can certainly understand why a lot of people are disgruntled...even angry....at this stock because I guess most people that hold LKEN stock right now are probably holding at a pretty deep loss.
But everyone needs to take a view of "we are where we are" and thats a 5 billion OS and a 10 billion AS at a price of 0002. occasionally 0001.
At the current OS of 5 billion and a price of 0002 this values LKEN at $1million. or if the price goes to 0001 it values them at $0.5million. If you want to take it for granted that the at some point the OS will rise to 10 billion then double those figures to $2mil or $1mil respectively.
I dunno....$1mil market cap for LKEN is low. Its trading at levels that a "almost dead" stock would trade at. I guess we all have to ask ourselves....is LKEN worth a shot at a million bucks or not?. I think they are. They dont have to do much to deserve a market cap of a million. Or two million for that matter. And maybe they manage to pull of what they have said they would all along....and then off we go.
Of course the other alternative is that they lay down and die and the $1million becomes $0. but i see the company are still doing things, still alive, still have people and new staff supposedly working on deals. And thats why i dont necessarily thing the 400mil shares that are about to come off of restriction will necessarily be dumped at 0001.
the price fell from 0007 to 0002 on just a few hundred million shares. it might take more than a few hundred million to get it on the up again but it just takes a decent contract or advertising and it will happen.
Good Luck, I've had a buy order for a million shares at 0.0002 on every day for two weeks and its never been filled. you might be one of the lucky ones though!
Toner Refills do exist, LKEN sells them http://freeink4life.com/store/toner-refill-kits/cat_33.html in fact LKEN has a lot of different products other than their flagship ink refill kit. I can only think that part of their new advertising plans must be to market other types of money saving printing tech that they have too.
LOL i do agree though, I cant really see a senator taking apart his printer and refilling the ink. Unless Obama really whoops their asses on cost savings :P
But i think home users, churches, charities, small business, schools even would all look at these products as a viable means to save a heck of a lot of money on ink.
Big things to come for LKEN!
Hey Hotrod, I'm glad youre doing well. I'm assuming you still have a position in LKEN? If you do decide to leave the markets for a while then pleeeeeeeeaaaaase dont sell all your stake in LKEN. External market factors arent going to affect this stock one bit....when they get their act together this stock is going to take off like crazy......regardless if the DOW is at 10,000, oil is $200 a barrel or the dollar is worthless.
I just dont wanna see you sell it all at 6's or 7's when pretty soon you could get 10 or 20 times that.
Think about it at least :)
Thanks Slide for the informative reply, I did miss something afterall. Well, not missed the info but maybe didnt see it as important as it perhaps is.
I've never seen any credible evidence at all that pointed to LKEN being investigated and never believed it was. But youre right, its a powerful message to those (bashers??) that have been saying it is.
I dont really see this affecting the PPS but i guess tomorrow will tell...hopefully I'm wrong and it will go up.
Cheers
Morning :) ... Am I missing something here? this report doesnt seem to include anything new from what their Q4 financials that were released on March 17th reported? Other than the attorney's "confrimation" I guess.
Or is there something I'm not seeing?
Thanks!
you're welcome :) well perhaps being locked for two weeks isnt a bad thing... will give you a chance to see what happens with this stock. It will be an exciting time for us in the next two weeks I think but some people who have been trading this stock for a while have sold out and are waiting til the end of april to see if they want to get back in.
So good luck and hpefully we will see you back here :)
The marketing specialist will be a great thing for LKEN, and if his credentials and previous contacts are as good as they say they are in the PR then all the better.
I think Lenny is probably good at running his ink business and building a good infrastructure but for sure he needs someone to focus solely on marketing this thing so I'm glad they now have someone. ANYONE is better that noone but i think this guy will do well and we can expect some decent deals to be signed soon!
Ugh.. I dont mind people having negative opionions about a stock and posting them. But stop your lies. We havent heard any such report of an investigation from the SEC or FINRA.
Post proof.
I know you wont because there isnt any.
Of course we'r trading LKEN why wouldnt we be?
Thats not a suspension, its just the stock doesnt have a position on the CNS for now. Many here believe itss beneficial for LKEN to be off that system for a while and it may even have been at their request. The price and volume havent really changed since this happened by the way.
If you need guidance on what the CNS is and how it works then you can google "Continuous Net Settlement System" or look here for a brief overview
http://www.dtcc.com/products/cs/equities_clearance/cns.php
awww you guys are so mean to poor urdeep. Give him a break :P
hes entitled to his opions too :)
A quick google search is all the DD i can be bothered to do right now :P and didnt reveal much
But i think many of us who have been here a while have been frustrated thinking "grrrrr Why isnt the company doing this or that, why isnt this happening....I could do a better job myself if i was given the task"....
well hopefully now that they have this guy actually focusing on this as his sole task will get things moving.
LOL just before i saw Gregs post about the news I was just about to make a post saying "Am the only one left that believes this company will make it on fundamentals"
Thanks for posting the news Greg,
Im pleased to see LKEN is putting focus on the Consumer Direct Marketing - I've said all along that I think this is the single most important mechanism that LKEN has to sell its product. Bigger than affiliates, banners and certainly bigger than retail.
This one sales source alone, if successful, can get this company huge revenues and right into profit...it absolutely maximises revenue for them and their profits are higher per item sold because they dont have middle men taking a cut.
I wonder if Duane has been appointed as a member of staff or an outside consultant.
Well this may not be hugely groundbreaking news, but its awesome to see that they are concentrating on CDM..which is what they should have been prioritising all along IMO... hopefully it will be successful.
This may be deleted for being off topic, but Ceo your outlook on this and on life in general is awesome man :) good luck to you
All cards are still on the table as to how LKEN will choose to deal with the issuance of shares to cover the dividend.
I will be refering to a couple of things from the Q4 financial report so feel free to read it here if you want:
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=45892
The current OS as of March 14th as stated in the Q4 report, if you believe it, is 4,862,000,000. The AS is 5,000,000,000. Restricted shares account for 3,280,244,297 of the OS. Leaving 1,581,755,703 free trading shares. I will be using circa numbers from here on in to make it easier to read.
Remember that dividends arent always paid to owners of restricted shares....this decision is left up to management. This is true for all publicly traded companies. With this in mind the dividend MAY only be paid to owners of free trading shares. The company would need to issue circa 79million shares to cover this. This would mean the new OS will be circa 4.941billion.....easily doable without touching the AS or thinking about a reverse split.
But for arguments sake lets say that all shareholders of restricted and non restricted shares get the dividend. Lenny himself owns circa 2.6 billion shares (the 2.4billion he got when LKEN acquired Accubrite in Sep 2010 plus the 200million shares he got in Feb 2011 as payment for writing off $240,000 worth of debt that LKEN owed him).
So if we exclude Lenny's own shares.....then there are 2,261,950,159 shares owned by everybody else. THis would mean to honour the dividend to all of these people then the company has to issue 113million shares. This takes the OS up to 4,975,000,000 so still just under the the 5bil AS.
The final scenario is that Lenny thinks "well i want MY 5% dividend as well" and so if he gives himself the dividend then they will need to issue circa 250million new shares which would take us above the current AS threshold.
So hopefully you can all see with regards to finding shares for the divident, the ONLY reason they would have to touch the AS or consider a reverse split is if Lenny himself wants to take his 5% dividend. I dont know if he is allowed to do that, or if indeed he would want to do it. For sure it would hurt the stock price if he does mess around with share numbers.
So all the people shouting here that the company HAS to increase the AS or do and R/S to cover the dividend... well you're wrong.
Having said that....theres nothing to stop them from doing that. Like any stock, specially pinkies..... they can increase the AS or do an R/S if they need the cash. Im just saying they dont need to do it to cover the dividend.
Time will tell friends.... Good luck to you all :)
I think many of us here do believe in this great product, and indeed the other products that LKEN is producing, but we just dont know if they have the ability to sell them in large enough numbers to be a viable public company.
It seems to me that Lenny does have a good level of business accumen when it comes to running a business, but this is likely his first time being involved in a publicly traded company and he is making some mistakes.
I dont know if hes taking advice from the wrong kind of people or what, but hopefully hes learning from his mistakes.
I still think the question, as its always been, is CAN they get this product out there and selling. If they can then this company is going far. Very far. The gross profit margins of circa 77% released in their Q4 financials show that they can produce the product very profitably. If they can sell it in decent numbers then we will see a true picture of revenue and profit and i guess only then can we make a judgement on what this company is worth.
I do think $0.10 a share is feasable at some point with the current share structure..... if everything works out and is done correctly but right now if they could do a profit of circa $7mil a year then the average PPS-Earnings ratio of 15 would value them at $100mil or $0.02 a share. I'd be more comfortable hoping for those kind of levels right now.
Again though, all depends if they can get (or have already got??) this thing selling. With all the PRs that were released and all the different avenues that this company claims to have been pursuing to get their products out there, then im hopeful that at least one of two of them will come to fruition and start bringing in the cash. I just wish the DRTV campaign would start up, I really think that with this alone the company would bring in enough cash to be profitable and would provide them with all the financing they need to get on with the other stuff. oh well!
Sad to see you go Tom. I'm sorry that some of your time here wasnt so much fun. I'm sure most of the guys who frustrated you werent attacking you personally, just debating their case.
But ive seen a lot of people get frustrated on this board, eh Garyst :P, but in the end we're all just debating our different sides and I've seen very few people here just attack for the heck of it. And i think yourself, and the guys you have been debating with, all believe your own opinions and think you are doing the right thing. I dont believe you pumped and i also dont see any of them trying to bash to get cheap shares.
Well if you bought in at anywhere near these levels then I'm confident you'll see a very big profit. And youre right...some of us have made big profits in LKEN already and havent moved on because we still think the risk/reward here is worth it.
For sure I have, and i think the potential reward in this stock is huge.
Well good luck to you.... at least come back and say ROFL to the board when you make your 1000% :D
LKEN has not been accused of doing anything wrong. whatsoever. That's why nobody will be able to provide you with the details of these accusations.
But you know that already!
Its abundantly clear to anybody who has bothered to read the notice fully that its merely a group of traders who are being investigated and there isnt as yet any evidence that they even touched LKEN stock.
I have been reading your debate with Garyst, and Garyst I've been in this stock as long as you and you certainly seem like an honest guy... but I think its a little irresponsible to be posting things like saying they are in trouble for criminal activity when no such allegations have been made by anyone.
Sorry to those of you who asked me questions the last few days and i couldnt answer.... im away on business with the day job!
Keep well guys
Exit from CNS system
I'm away for the next week but i just wanted to quickly clear something up for youreselves and perhaps some newer people who may think that LKEN has been implicated in any wrongdoing...it has not.
There has been no cpmplaint made against LKEN. Action is being taken against a group of traders for manipulating stock. Not necessarily LKEN stock for that matter.
Naked short selling happens all the time unfortunately and its usually dodgy market makers or trade groups that are involved in it....not the company itself.
The exit of LKEN from the CNS system will make it all but impossible for naked short selling on this stock to continue and it will be harder to manipulate.
just to end....its a group of traders that have been implicated here, NOT LKEN.
for all we know LKEN might have requested removal because they see their stock being manipulated.
Anyway...theres nothing here that should make you sell your stock because you think that LKEN has been accused of wrongdoing.
42 Million volume in 3 hours of trading, there's still a lot of eyes on this stock.
I agree there's a lot of new hands in this stock, strong or weak i dont know, but theres still a lot of us old hands here too :D
I dont believe that the company will have to raise the AS - certainly not to pay the dividend. Owners of restricted shares do not always qualify for dividends...its up to management to decide that... and in this case since Lenny owns most of the restricted shares i dont believe he will give himself a dividend especially if it means raising the AS.
Of course raising the AS or doing a reverse split is always a possibility for any stock in any market....i just dont think they will do it for this reason.
I also think that they may not need to raise funds as badly as some posters believe.... i think that a lot of debt restructuring has already taken place and call me overly optimistic but i think the company is heading for profitability very soon and may even be making a profit or be close to it right now.
I do still wonder what will happen to the $250,000 of inventory they had sitting in their warehouse as of 31st Jan though - if its been sold, selling now, in stock waiting for the TV orders to flood in, due to be sent out as a large order... or just sitting there doing nothing. who knows.
Thanks hotrod I'm gald your found my post interesting...just saying what I see. There are good things and bad things in the quarterly but i know that a lot of people who are down (or just impatient!) can sometimes focus solely on the negatives.
I'd love to be able to commit to comment on LKEN more often, unfortunately i work away from home a good 70% of the time and cant always get the time to read the boards or even get online.
I like some of your posts too, also very non-emotional rationale from you :D
(its dude btw)
look forward to hearing your take more on things in the future :)
No.....
In the 6th months up to Jan 31st they werent making enough money to cover their expenses. They were short by $124,000 for that whole 6 months. For the most of that period they had done virtually no marketing for their product at all.
We have no idea whatsoever how many units are being sold or how much revenue is coming in as of right now or in the future. They have cash to get them through the next few months without a single sale whatsoever but they are clearly selling and I think their revenue for Feb will have increased, and Mar, and I believe the company will grow. Admitedly the delay in the commercials and direct TV are frustrating but i think they will happen and at that is where we will see if this product truly takes off or not.
Increasing the AS or doing a reverse split is certainly not inevitable. Far from it.
Q4 Financials
http://www.otcmarkets.com/otciq/ajax/showFinancialReportById.pdf?id=45892
Some negativity about this report from some people, but what were you expecting from a report that only includes financials up to 31st Jan... this company had barely began marketing its product at that point. This is a start up company and we cant expect them to be profitable yet. There are hundreds of companies on the big boards with huge market Caps that have never made a penny in revenue and huge debt but investors know the potential is there.
Ive read the report in detail several times, and there are a few disapointing things which i will get to but there are some very positive things too:
1 - The Company is making revenue. The gross profit is very good (77%) meaning that in this period for every $1 revenue that comes in for a Freein4life product, it only cost the company 23c to manufacture. They report that as the number of products sold increases, they hope to reduce the cost of goods even further.
2 - The running costs of the company at present are small. Their facility that reportedly can produce 12million units a year had already been set up by Dec 8th (http://www.accubrite.com/6._LKEN_INK_LABORATORY_HQ_12.8.2010.pdf) and so I believe we can expect running costs to stay small even as they start producing and selling more items.
3 - The shares that were newly issued have all been used to pay off debt. Its also a very positive sign that Lenny himself accepted shares at 0.0012 a share as payment for $240,000 which the company owes him. He wouldnt accept shares as payment if he thought they would be worthless. He believes that they will increase in value or there is no way he would take shares as payment for a cash debt. The payment of these debts should mean lower interest payments ongoing, and therefore even lower running costs for the business.
4 - Their Balance sheet shows that as of jan 31st they had inventory in stock (ie product) valued at $252,946. We dont know how much of that has been sold since then, but they clearly produced it believing they can sell it.
5 - Balance Sheet also shows at jan 31st they had Accounts Receivable of $27,930 (ie money owed to them by customers) - this can only mean partner companies as individual buyers pay cash up front). This shows their product is indeed being bought by entities other than individuals.
6 - Balance sheet shows start up costs of $1,006,942. This is matter of opinion but i believe that the majority of start up has been paid for by jan 31st and the business is in a position now to not have to spend more money to be able to sell their product and that costs to grow the business from this point onwards will not be significant.
The above things, and the financials reported in general, show me a company that is just getting started and positioning itself so that it can sell its product effectively in large numbers. At this point we dont know how much product has been sold since Jan 31st and now. What we do know is that they are manufacturing it in significant amounts. The question...as has always been... is can they get enough people to buy their product. If they can, its clear that the profit margins are huge.
Ok.....
So the not so great things.
1 - Riteaid. Its understandable that sometimes things go wrong in product negotiations and I do believe the story. However, they have known about this since Dec 23rd. Many posters have said the the IR has told them they are "contractually obligated" not to speak of it. If this is true then why can they publicly release it in a financial report, and with who was this contractual obligation agreed? Not cool.
2 - Delays in the infomercials and DRTV campaign. I believe that the infomercials, and moreso the DRTV, will provide LKEN with the revenue it needs to get into profit and grow its business. We see from the financials that even a very modest success rate in DRTV sales would make for huge profits and take this company right into a position where it can be debt free very quickly and then grow. They should be getting DRTV out there ASAP and they should be giving us reasons for the delay.
All in all my take on it is that the financials are fine.....in fact in a lot of ways the financials are good. In terms of finances this company is right where it should be and they have created and infrastructure that can support their intentions of selling lots of product. The delays arent good. All boils down to do you believe that they can get their product out there and selling. I believe they are trying to do that, and the financials and inventory show that.
I also know that a lot of people here are impatient and greedy and will bail out because they didnt see huge $$$ flash up in this report. I'm staying in 100% because I know this thing is gonna rocket in the...... wait for it.... NEAR FUTURE :P
Ive had a buy for a million shares at 0.001 open for almost two hours but only 1 (YES ONE!) share has traded so far.
Lol it costs me $10 to make a trade......thats $10 a share!! it looks like Lenny's dream of $20 a share is getting closer :P
thanks for recommending the sticky Luckyme (they should change the title tho!)
Marc Just for good measure read this too
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=61090584
Youre welcome dsa, Ive enjoyed reading your take on things too.
I agree with your thinking, its a good idea to pay off debt (and sometimes absolutely necessary) and the fact that debtors are happy to take shares as payment does show that they have confidence that the shares are worth something.
It would have been nice if they had said how much debt was paid off with the shares like they did with Lenny's but I understand they are under no obligation to and its likely the creditors each agreed different terms and would be less than pleased if they thought they were getting less shares per $1 of debt than someone else.
lol what are you talking about? the Q4 financials came out yesterday :P
Whoa! Why are some of you freaking out about the numbers in this report? What were you expecting in a report that only includes financials up to 31st Jan... this company had barely began marketing its product at that point. This is a start up company and we cant expect them to be profitable yet. There are hundreds of companies on the big boards with huge market Caps that have never made a penny in revenue and huge debt but investors know the potential is there.
Ive read the report in detail several times, and there are a few disapointing things which i will get to but there are some very positive things too:
1 - The Company is making revenue. The gross profit is very good (77%) meaning that in this period for every $1 revenue that comes in for a Freein4life product, it only cost the company 23c to manufacture. They report that as the number of products sold increases, they hope to reduce the cost of goods even further.
2 - The running costs of the company at present are small. Their facility that reportedly can produce 12million units a year had already been set up by Dec 8th (http://www.accubrite.com/6._LKEN_INK_LABORATORY_HQ_12.8.2010.pdf) and so I believe we can expect running costs to stay small even as they start producing and selling more items.
3 - The shares that were newly issued have all been used to pay off debt. Its also a very positive sign that Lenny himself accepted shares at 0.0012 a share as payment for $240,000 which the company owes him. He wouldnt accept shares as payment if he thought they would be worthless. He believes that they will increase in value or there is no way he would take shares as payment for a cash debt. The payment of these debts should mean lower interest payments ongoing, and therefore even lower running costs for the business.
4 - Their Balance sheet shows that as of jan 31st they had inventory in stock (ie product) valued at $252,946. We dont know how much of that has been sold since then, but they clearly produced it believing they can sell it.
5 - Balance Sheet also shows at jan 31st they had Accounts Receivable of $27,930 (ie money owed to them by customers) - this can only mean partner companies as individual buyers pay cash up front). This shows their product is indeed being bought by entities other than individuals.
6 - Balance sheet shows start up costs of $1,006,942. This is matter of opinion but i believe that the majority of start up has been paid for by jan 31st and the business is in a position now to not have to spend more money to be able to sell their product and that costs to grow the business from this point onwards will not be significant.
The above things, and the financials reported in general, show me a company that is just getting started and positioning itself so that it can sell its product effectively in large numbers. At this point we dont know how much product has been sold since Jan 31st and now. What we do know is that they are manufacturing it in significant amounts. The question...as has always been... is can they get enough people to buy their product. If they can, its clear that the profit margins are huge.
Ok.....
So the not so great things.
1 - Riteaid. Its understandable that sometimes things go wrong in product negotiations and I do believe the story. However, they have known about this since Dec 23rd. Many posters have said the the IR has told them they are "contractually obligated" not to speak of it. If this is true then why can they publicly release it in a financial report, and with who was this contractual obligation agreed? Not cool.
2 - Delays in the infomercials and DRTV campaign. I believe that the infomercials, and moreso the DRTV, will provide LKEN with the revenue it needs to get into profit and grow its business. We see from the financials that even a very modest success rate in DRTV sales would make for huge profits and take this company right into a position where it can be debt free very quickly and then grow. They should be getting DRTV out there ASAP and they should be giving us reasons for the delay.
All in all my take on it is that the financials are fine.....in fact in a lot of ways the financials are good. In terms of finances this company is right where it should be and they have created and infrastructure that can support their intentions of selling lots of product. The delays arent good. All boils down to do you believe that they can get their product out there and selling. I believe they are trying to do that, and the financials and inventory show that.
I also know that a lot of people here are impatient and greedy and will bail out because they didnt see huge $$$ flash up in this report. I'm staying in 100% because I know this thing is gonna rocket in the...... wait for it.... NEAR FUTURE :P
How do we know its not Lenny who's holding things up and that the IR is just feeding us what LKEN feeds him?
In any case, patience little ones... the report will come :)
Just got back from my honeymoon and ive enjoyed reading whats been going on ;)
Its too early to be making predictions on pps and if there will be a dump after the reports IMO. Basically at the moment nobody really knows what LKENs revenue, units sold or earnings have been or will be.
The report we're all waiting for is only up until end of Jan - so before most of the "good stuff" that was reportd in the PR's kicked in. I guess the basic question is wether you believe the management of this company are trustworthy and wether they actually have the skills to achieve what they have said they want to achieve in their PR's. Theyre clearly a proper company, with revenue and units selling and a team of staff have done some important business related things like Dun & Bradstreet registration.
I do think that fundamentals in a stock like this will ultimately overpower sell offs from people trying to get lost money back or just want to break even. We dont know what the Q4 will show, my personal opinion is that it will show a heck of a lot of growth in terms of units sold but probably not as much revenue as some people are expecting. And probably a net loss in terms or profits. I think the large increase in revenue will be reported in the Qtr1 report.
Its important to remember that the price of a stock (and alright, I'm talking about fundamentals on the big-boards here) is based on what investors think WILL happen in the future, not what has already happened. Sure its nice for an investor to see their company made a bil last quarter but new buyers will only come in because they think hmmmm maybe next quarter will be 1.2bil....better get in now. This is particularly true for new startup companies.
Anyway... at the current price of 0.0015 this company is currently valued at $7.5mil. The average historical PPS-Earnings ratio of 15-1 would mean that this company should have yearly earnings of $500,000 for this to be a fair price. I think this is way way WAY undervalued.
Again, we have no idea how many kits LKEN will shift in the next year, or the next 3 months, or the next month....OR how much they will earn per kit. But if you look at their projections in their PRs from http://www.accubrite.com/Press_Releases.html they clearly are PRing that they have capacity to produce and distribute 12 million units a year and predicted around a million units a year should shift from TV alone. Again.....it all depends on if we believe they are capable of that. Then there is all the other places they sell or are planning to sell...CDM, Online, Retail....and also their other products like remanufactured cartridges for those of us too lazy to refill.
Anyhow i dont know what their earnings per unit are.....$5??? $10??? less? more?? If they really have built manufacturing capacity for 12mil units a year then they clearly must think they will need it. If they sold 2mil units a year at earnings of $5 a unit thats earnings of $10million. So a PPS-Earnings of 15 would mean a fair market cap would be $150mil so a PPS at todays share structure of $0.03 a share. Or they could sell nothing, or they could sell 10 million units. Or they could be making a loss on each unit or making more than $10 a unit. Who knows. What we do know is that this Q4 report we are all waiting for is not going to show any indication of what they have been doing this last few months or what will unfold in the next few months.
By the way i expect the company will have made a loss in Q4 if it really has been preparing all the infrastructure that it says it has. I may be pleasantly surprised though.
I think if this report shows a significant increase in units shipped, and if the company makes any hints as to further increases then more real money is going to start entering this stock... flippers and panic selling cant beat the fundamentals forever. Again...all depends on if you believe in Lenny and the boys or not!
Wow, well thats my long and boring take on things!
good suggestion :P
i filled it in anyway, thanks for the link.
lol post it 1800.... people dont have to read it if they dont want to. I for one would like to see what everyone has to say.
Not a bad day today I dont think. Up circa 60% yesterday and down 10% today. I havent done the metrics but it "seemed" to me that most of the volume traded today was done in the 26/27 range?? Either way i dont think a close of 25 is bad at all.
The PR today was obviously not the one that a lot of people are waiting for, but it was good news IMO. Any company with a product to sell typically has to market it through several different channels to get the publics attention. MLM is just one of many channels and they would be foolish not to use it. You dont see Ford or Gillete or Microsoft ONLY selling their products through one channel .. they have TV commercials, Direct Marketing, Newspapers, Sports sponsership, Internet Advertising, Affiliate Schemes, Supermarket Deals you name it. MLM could be very valuable to LKEN and by utilising Multisofts package approach to running an MLM i dont think it will take much time or money on LKENs part to get it up and running.
I notice a few people calling the PR today "fluff" and that it could even hurt the stock. I dont think its fluff. Clearly its something the company has decided is a good idea and they want to tell their shareholders that. LOL i remember in the fuel hike days of 2007 major airlines were putting PRs out about charging people a dollar to use a pillow and changing to organic sandwiches and whacking on a dollar for that. I also remember a few weeks back when there were no PRs from LKEN for a week or two and everyone went nuts saying the company had all but gone into hiding! If nothing else Lenny might just want to assure some of us that hes still around and doing something.
Some talk of dilution from at least one poster today. Absolutely no evidence of any dilution whatsoever. In fact i would say quite the opposite....a relatively tight range by LKENs standards. This is just a normal day.
And all the day traders and flippers out there.... I'm glad theyre here adding liquidity to the market. They are the ones who we longs buy from when we want cheap shares and who we sell to when we want to cash in our $$$. Wether theyre flipping between 0.0018/0.0025 or between 9c and 10c we need them....so dont hate on people wanting to make some cash :)
EOM
Ive been away for a week so just catching up on whats been happening in LKEN land now. I have some thoughts on SS and the way investors and traders have reacted. Im not pumping or bashing the stock in any way, i would just like to share these thoughts and also if im wrong on any numbers...please correct me.
In very simple terms what i see here is that the stock had a monster run up to $0.018 in Mid Jan. Then a little bit of dilution from the company which took us down to a support of $0.0050 and then just last week a number of restricted shares came off of restriction and this took us to where we are now....circa $0.0025?? right???
Correct me if I'm wrong but my understanding of the change in share structure is:
Mid Jan SS ($0.018).....................Current SS ($0.0025)
AS - 5,000,000,000......................AS - 5,000,000,000
OS - 4,180,000,000......................OS - 4,580,000,000
RS - 3,748,244,297......................RS - 3,398,244,297
FT - 431,755,703........................FT - 1,181,755,703
So since the "good times" of $0.018 we have seen true dilution of 400,000 shares (or 9.57%). Further to this We have seen 350,000 restricted shares come off of restriction. These two items combined have seen the float increase from 431mil to almost 1.2bil.
Okay. Seems to me that the only dilution that has occured is a 9.5% dilution. Yet our stock has plummeted massively from its highs. Some restricted shares have come off of restriction but thats normal. At SOME POINT all restricted shares in any company will become unrestricted. This in principle doesnt affect the value of a company because the OS remains the same.
To put this into perspective... if a month ago you thought that LKEN was going up to 10 cents a share on a OS of 4.2billion (so a market cap of $420,000,000) then surely now all that has changed is that to get a market cap of $420,000,000 the share price will go up to 9.3 cents a share?? Or if you thought 5 cents a share was achievable, then we now need to go up to about 4.5 cents.
I think the bottom line here is that if you believe in LKEN that they actually will do what they say they will, and that Lenny is legit then why is there the mass panic that has led to such a huge dive in price? Lenny Greene is the number one shareholder in this company....he has much more to gain from a solid share price than anyone else in the world and much more to lose if it tanks.
His company needs financing to achieve what he says they want to achieve. There are several ways he can do this. With solid orders he can get a loan for a set amount. He can get a revolving business credit facility. He can try for a pre-payment facilty. Or he can sell more shares. If he is serious about one day moving up to a bigger board then he will realise now that he has to be careful with how he manages his companies shares and deals with its shareholders. He has to walk the line between getting easy cash by selling shares cheap, which could damage his ability to ever leave the pinkies, and managing his finances in other ways.
Just my opinion but my personal belief is that he IS balancing that line. By now he could have taken the OS all the way up to 5billion but he hasnt. I believe he realises that for the good of his company, his shareholders, and indeed himself in the long term that he needs to be smart about securing financing and that is why the dilution we have seen has been so small.
Dont confuse shares coming off of restriction as any kind of addition to the OS...its not. It just means there are more shares that ordinary traders can trade. Sure the flippers might slow down an increase in PPS a little but it doesnt change the fact that if this company acheives what it wants to achieve then an increase in float from restricted shares wont have an impact in the mid to long term.
phew. EOM.