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You do not have to guess at sales, the PO was for $830k to Walmart.
According to OWOO's financials, the Company takes credit for sales upon shipment. Since the dolls are already showing up in Walmart you can safely assume the next quarterly report (mid-November) will show these sales as it will cover the month of September in the financials.
A more realistic figure on what this means for the bottom line is given here: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=117189658
Stability - thanks for the refreshing comments. What is your take on why the company is not using Rubenstien and Shade Global (world class PR firms already hired by the company) to make a bigger splash?
Ok - I did the math assuming they sell out 100% of the dolls and no returns....2924 Walmarts x 10 dolls per store x $23.74/doll = $694k.
Now factor in Walmart's cut (assume 10%), Tonner's potential cut (5%), cost of sales (assume 70% of sales price - more than generous considering history shows that cost of sales is at 100%) and you end up with a gross margin of only $178k.
Now start subtracting the hard cash that is heading out the door:
Projected Interest Expense for 2015 = $2.2 million
Project G&A for 2015 = $0.9 million
Lawsuits/Settlements/Judgments = $0.8 million
Working Capital Deficit = $24.3 million
Accumulated deficit = $35.8 million
More derivative losses
No cash to fund ongoing operations/production
Also of note from the latest financials: "We believe that our operating expenses will increase over the next 12 months and estimate that our capital requirements for the next 12 months will exceed $1.5 million."
How long did Amazon have an SEC recividist on its Board of Directors, pull a 1:750 reverse split on its shareholders, and a have founder who is a convicted felon?
You forgot to mention, Steven Plumb, CFO. Plumb has been involved with a number of boiler room pump and dumps, including SEC suspended CYGX and a few others:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=78380969
http://seekingalpha.com/article/3488956-the-titanic-ten-exposing-10-related-otc-stocks
REIVAX - how did you arrive at $0.10 before Christmas? This stock saw a couple runs within the last couple of months with hundreds of millions of shares trading hands, yet it barely cracked $0.01 with all of the flurry of announcements, shares being traded, and hype. Reaching 10 times that figure seems a bit of a stretch, especially on $833 in paltry sales (at no margin) for the quarter (about the take of a good weekend garage sale). Do you have any basis for that prediction?
sharky - how about quantifying those revenues you expect over the next couple months? From what we know from the company, they have PO's for at least $850k. What kind of margin would you expect, if any, after cost of sales, G&A, interest expense, ongoing capital deficits, lawsuits, marketing, etc??
fluent123 - where is the link to this alleged O Magazine announcement?
Yes - hoarding by the freak show collectors....looks like OWOO made the top ten list: http://www.sheknows.com/parenting/slideshow/list/2661/9-inclusionary-dolls-to-celebrate-our-wonderful-differences/dolls-of-different-american-ethnicities
By all (twitter tweets) accounts, inventory is already on the shelves - what new information do you think we will hear in 12 days other than the same inventory is still sitting on the shelves?? Any "news" about their arrival has already been factored into the trading of the stock.
When you have Robert Hines, former CEO of SEC suspended EVSO stock scam (http://www.sec.gov/news/press/2011/2011-120.htm ) on the Board of Directors, it kind of sends the wrong message....
The point you bring up about marketing is interesting - one would think that high powered guns (Shade Global and Rubenstein) hired by the "world class management team" would have an execution plan for this much ballyhoo'd roll out....apparently not....
correct - the company has come out to state that they have received about $850k in purchase orders, which by all accounts have been shipped as we are now seeing product in stores. Interesting to note is that OWOO will claim revenue "upon shipment" (net of any returns) - therefore, the next quarterly report (mid-Nov) should show us how profitable (or not) these new product lines are, and how much increased costs (G&A, interest expense, marketing, Tonner agreement cut (if any), lawsuit judgments/settlements) pile up to show if they will make a net positive margin, since this upcoming 10Q will include September. I predict it will be nominal at best.
Here is how OWOO records revenues from the latest 10Q:
"We record revenue from the sales of dolls and accessories in accordance with the underlying sales agreements when the products are shipped, the selling price is fixed and determinable, and collection is reasonably assured. Our revenues are recorded net of returns and allowances"
At June 30, 2015, the convertible debentures and related accrued interest payable were convertible into approximately 2,514,516,000 shares of our common stock. Based on the assumptions used to estimate the fair value of the derivative liability at June 30, 2015 and assuming all lenders convert the notes payable at the June 30, 2015 conversion prices, the Company would have insufficient authorized shares of common stock to complete the debt conversions.
The convertible notes, IF converted, would result in the company needing to authorize additional shares to cover 2.5 billion potential shares as their current A/S is only 500 million.
From the last public message from the company, they stated that "at this time", they do not anticipate increasing the A/S.
Based on those who check daily on the current share count, we are approaching just shy of 400 million. Even without these significant conversions occurring, I am predicting that the "at this time" statement above will no longer be applicable by mid-November (right after the next 10Q) when they will have to increase the A/S to cover ongoing expenses, marketing, interest expense, lawsuit judgments/settlements, and inventory.
The revenues you refer to are estimated to be $850k based on public statements from the company about purchase orders in hand - really no guess work in it (aside from the token sales at Dollgenie, HEB, et.al.).
Assuming the Tonner Agreement (not a partnership who would share in costs/debts) was in place in time for his cut, take 5% off of the gross purchase orders and you have about $808k left before cost of sales. Giving OWOO a generous estimated gross margin per doll of 30% (note ALL sales since inception of the company have yet to turn ANY margin), you have a gross margin of $242k.
Now start subtracting:
Projected Interest Expense for 2015 = $2.2 million
Project G&A for 2015 = $0.9 million
Lawsuits = $0.8 million
Working Capital Deficit = $24.3 million
Accumulted deficit = $35.8 million
More derivative losses
No cash
Forward looking statement from the Company: "We believe that our operating expenses will increase over the next 12 months and estimate that our capital requirements for the next 12 months will exceed $1.5 million.
Don't be fooled - this is a clear stock sham: http://seekingalpha.com/article/3488956-the-titanic-ten-exposing-10-related-otc-stocks
Correct:
1. He loans the company $2 million
2. He receives 5% for "the full use of its library of molds and sculpts for the production of current and future fashion and collector projects"
Your analysis does not make any sense. These are two separate items.
The $2 million loan will be on its own terms - interest and conversion rate on terms that I am sure will make him very happy with his risk (unless they treat him like WHC, Darling, Gel, and LG).
The 5% of purchase orders is a simple annuity with no risk. A more realistic example is taking the current $830k PO from Walmart - he gets $41.5k just for saying hello. Meanwhile OWOO takes on all the risk of making a margin, paying for cost of sales, G&A, Interest expense, marketing, returns, and convertible notes.
No....he does not "pay" $2 million....he LOANS them $2 million on interest terms that are financially agreeable to him (AFTER he raises his own $5 million) - presumably on the same convertible note terms OWOO has done with others (ie 50% discount to market)
Actually, to be clear...it is not 5% of all sales...it is 5% of all purchase orders - meaning even if OWOO does not make any margin, or incurs returns and/or losses, Tonner still gets 5% of the gross purchase order - no overhead attributed to him, no cost of sales, no interest expense, no derivative losses, no convertibles - pure profit with no risk.
1. Tonner Interview expanding on Tonner Dolls going public
2. 8K showing 2 year agreement with OWOO
3. Tween Scene fashion line weblink
Items 1 and 2 might be considered just one, so I guess we are at 2 of 3.
I have to admit, after re-reading this "Huge News" (is this the #3 of 3 of the promised game changers?), I had to chuckle - a press release that gives out a hyperlink to the new fashion line, that announces that they will soon be making an announcement of when that hyperlink will be active. Perhaps we will see another press release announcing when they will in fact make this press release announcing the announcement??
LOL - more like Aristo-crap.....
The company is busy working - but apparently Trent is not....no surprise though as his morning show (6-10am) appears to have been pulled:
http://kjozradio.com/show-schedule/
yes yes.... $2 million...whenever Tonner first raises his $5 million....eventually on loan terms that are agreeable to Tonner (is the going rate $0.50 on the dollar for friendly convertible notes?).
Woo hoo - yes, product on the shelves at little to no margin....sounds awesome <yawn>
Amazon slashing prices on the Prettie Girls doll line - these will soon be added to the "collectible/hard to find" collection....
http://www.amazon.com/s/ref=nb_sb_noss_2?url=search-alias%3Daps&field-keywords=prettie+girls
What exactly do you expect to see in mid-October? The next quarterly report will not be out until mid-November and will only cover sales through the end of September. Realistically, you will not see the results until Mid-April 2016 when the 10K comes out.
Assuming for the moment the dolls are shipped in time to show up on the November quarterly report. From what we know, the company is expected to record $850k in sales sometime soon. As has been the case since inception of sales, the gross margin after cost of sales is nearly negligible. However, giving them credit for a volume order, let's assume for the moment they make a hefty 30% gross margin - this would result in $255k take home to brag about.
Now let's look at the ongoing and potential expenses AFTER cost of sales to produce the product:
1. Tonner's agreement calls for 5% of the gross purchase order to be paid to him - or about $42k (or about 17% of the above gross margin).
2. Current Interest expense is $452k per quarter
3. Current G&A, R&D expense is another $459k per quarter
4. LG Capital default judgment for $296k
5. Darling Capital judgment for $58k
6. WHC Capital lawsuit for $416k
7. Gel Capital judgment for $98k (just paid off?)
8. Debt settlements?
So factoring in all of the above, please explain what will make October so stellar?
Remember - it was never about the dolls....
"They worked together in the past and screwed over many people" - as some would say here, the past does not matter - what matters is the present...
LG Capital
Gel Capital
WHC Capital
Darling Capital
Alief School District
...
...
...
No - you are not reading it correctly. Two separate transactions - a $2 million loan will come with terms that are beneficial to Tonner (ie at a discounted convertible rate) - hopefully for OWOO it will be on commercially more viable terms than past deals that appear to be at $0.50 or better on the dollar.
The 5% of all purchase orders is a great deal for Tonner - for example on the latest alleged $820k PO with Walmart - he would take $41k off the top - without any of the risk that OWOO has for making a margin on the dolls and/or the risk net of returns for unsold/damaged goods. OWOO on the other hand, gets 5% of their gross sales taken away off the top - in a world where OWOO is not showing any net margin, selling at a cut throat discount outlet such as Walmart does not bode very well for getting much of any revenue down the road.
From the deal he also gets buy in from Melton and Daniel as shareholders in his new Tonner venture (re.: not OWOO getting a buy-in of Tonner's company).
Regarding Tonner's ~10% buy-in of preferred OWOO shares, it simply hasn't happened (yet) otherwise we would have seen a 13d (or 13g) filing as required by regulation for publical traded companies. What we don't know (if ever) are the terms of such a buy in - as the preferred shares are not readily/openly traded, the Company is pretty much free to hand them out at a price they feel is at their whim. The preferred (AA) shares have a voting right of 10,000:1 over common shares, so you can imagine how much stroke he will have with 10%.
Robert Hines is still on the Board of Directors at OWOO - that ought to tell you enough: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=83799200
Disclaimer - that post was made well before I knew anything about Trent's past.
Was just looking at possible ideas of why the world famous PR firm seems to have botched this whole video thing.
Maybe Shade Global is suing to get paid??
http://oneworlddolls.com/the-one-world-doll-project-signs-multi-year-representation-deal-with-shade-global/
Ignoring the content of his message and instead attacking his motives?
Must read article on SGNI: http://seekingalpha.com/article/3488956-the-titanic-ten-exposing-10-related-otc-stocks
"Why does OWOO need money now? "....I can think of $296k reasons....http://investorshub.advfn.com/boards/read_msg.aspx?message_id=116715419
"What One World needs is a good PR person if they want to get this stock price moving"...guess OWOO should ask for a refund after the much hyped hiring of Shade Global (Marketing and PR) and Rubenstien PR (PR).....