Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Hearing that Wang is on the way out and a new management team is coming in.
Apparently the team is pretty solid and will bring in a new strategy and business model.
FWIW
graphic on intro is irrelevant. FYI, whomever posted the graphic on the top of the page: it's not relevant to the Seratosa RBD device. I suggest waiting til there is further detailed information from the company and then using that. This graphic is specific to a 'straight cannula' device which is a large needle and not the RBD device.
What everyone is neglecting to consider is that Sitoa's primary business, eCommerce software and the proprietary platform underpinning it, is non-synergistic with IRIS' business of wate-to-energy....
So what makes the most sense to this merger?
Very simple - IRIS merges in the WTE business then Sitoa spins off the ecommerce biz to a 'strategic' buyer....
As controversial as Sierra is, and I have absolutely no idea if he/she is legit or not, eBay would actually be a good candidate although not eBay proper - it would be Magento Commerce which eBay bought a few years ago for $180 million. They have over 8,000 websites including some of the largest eCommerce sites in the world, as their clients who use the Magento front-end platform.
Sitoa's platform is a perfect addition to this.
I'm not saying Sierra has insight merely there is much more to the overall strategy than simply an ecommerce and waste-to-energy merger.
The true value of STOA lies in the fact that its not a 'shell' company and can spin off the existing business thereby leaving a 'pure-play' WTE business while also rewarding shareholders with a cash dividend from the sale of the eCommerce biz.
If anyone disputes this, do some homework - check the Magento site, look up the eBay M&A news, ask a securities lawyer if the spin-off makes sense.
Haha. Is there any bit of irony in there?
Actually, not only have I lost a tremendous amount, I've also managed to miss several decent trading opportunities.
Make no mistake, even if this goes to the level that is an optimistic target, I'll still be down around -75% even with the recent cost average down that I did....
If they issue shares in exchange for the Phuket asset + other pipeline assets (based on comparable transactions in the WTE sector), I'm estimating a fully-diluted target of around .10-.12 per share.
Even though thats a considerable jump in price/valuation, it still leaves many shareholders from 2007-2012 way way down so as exciting as it seems, It's more of a non-event for me.
IRIS waste-to-energy project in Phuket has 80% gross margins. I have a friend that does construction financing in SE Asia.
his firm looked at the IRIS project and the original financial projections, based on local municipalities purchasing the energy from them, were between 70-90% gross margins...
they took another look earlier this year when the company was trying for refinancing an sure enough, they are tracking on projections.
furthermore, they are only operating at ~80% capacity so there is room to grow revenues up to around $20mm.
bear in mind, this is the first of many projects that STOA/IRIS will have in the region.
IRG + Merriman = higher valuation
It's obvious that STOA is doing some very big things to deliver shareholder value. Having a Mergers & Acquisitions advisor and a Capital Markets advisor is showing that the company will
a) identify and acquire a company that allows STOA to scale faster and higher
b) increase the share price and valuation to accommodate that acquisition
this is typically seen with much larger companies so it seems that management is taking a very aggressive appraoch.
Excellent!
New STOA market maker, Merriman & Co. - they typically work with micro-cap and small-cap companies and could possibly initiate research coverage. good news!
Merriman & Co just started making a market in STOA.
Significance of engagement of IRG
It looks like STOA engaged IRG to help them identify acquisitions. the growth over the past year has been impressive, going from zero to $4 million annual run rate. it's probably better and faster to acquire some privately held companies at low valuations and try and get the public company valuation uplift. Should be very interesting to see.
Not to mention, Zacks still has a $1.05 target and here it is trading at .10.
Undervalued? Most definitely!
FYI: Zacks has a research report out today on STOA with a .95 price target.
I'm wondering where you learned to read balance sheets - debt is actual 'borrowed' money. There are shareholder loans of $40,000.
Accumulated negative working capital is not debt. Call your accountant and ask him.
Since the public company is not a 'new' company, the negative working capital and stockholders deficit (which again, is not debt) does indeed accumulate although it is not owed to anyone nor needs to be repaid.
Sitoa Corp, which is a private company, received 2mm shares in exchange for the technology license AND the CEO from Sitoa Corp, Cal Lai, joined Sitoa Global.
The previous iteration of the public company, which was known as Sinobiomed, got rid of the China based biopharma assets and $11mm in debt( owed to a consortium of banks) back in Jan/Feb of 2011.
Read the 10Q's and the 8-K filings.
Read the 10Q again - there is only $40,000 in debt not $34mm in debt. The predecessor company, Sinobiomed had $11mm in debt but that was jettisoned with the previous company's assets.
It's straight debt with 5% interest - no warrants, no convert, no extraneous features...
its also specific to building marketplaces in emerging markets where the funding will go to development costs.
That's big - they now have the ability to pursue large scale marketplaces in emerging markets without having to worry about funding.
From what i understand, the intellectual property behind the platform is patented and quite distinct from the other technology out there....
Amazon.com and Rakuten are the only major peers although Amazon doesn't license it out, only provides it to Amazon marketplace partners/customers;Rakuten only operates in Japan and has an online mall which Rakuten owns and operates.
Additionally, if this was built for Sears, HD and Target, then it must scale significantly and offer quite a bit of functionality.
Hopefully, they sign on another customer before year end - this would be a good first year for them given that they've only been "Sitoa Global" since June 2011.
News Out - BayPeak LLC invests in Sitoa Global
China marketplace launches
Looks like they got the site launched for the first China marketplace, Chunjie365.com.
I went thru it and it's in both English and Chinese. given that the Sitoa Global "focused social marketplace" was only in English before, I would venture a guess that a bi-lingual site not only allows them to go after the China market and also any market where ecommerce is viable e.g. India, SE Asia, UAE, Russia.
Being able to demonstrate a platform in emerging markets AND also generating revenues from it is a great business model.
Hope this helps although further clarity from the company on their tactical and strategic plan would be nice.
I read thru the last 10-Q filing and it looks like Sitoa Global is the platform behind Sonsi.com.
Sonsi is owned by Charming Shoppes (NASDAQ:CHRS) and they have their three primary brands on there, which Sitoa Global designates as "Enterprise Sellers" or "Anchor Sellers" and then numerous ancillary sellers which are deemed to be "Microsellers"...
Further, it looks as if Sitoa Global integrated a social networking connector between the site and other social networking sites such as Facebook and Twitter.
Friends of mine in the eCommerce applications industry tell me that this type of platform, especially since it was built for Sears, Target and Home Depot, is something that really has acquisition target possibilities.