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.
...sooo, if you buy the company for $22 million, you in essence have $10 million in cash and a company losing $1,000,000 a quarter.
By December you will have $0.00 cash in the bank and a company still losing $1,000,000 a quarter.
Amazing is right.
possibly...time will tell
convertibles/options, etc., the underlying basis is all equity at this level. No offense, but don't be naive enough to think that there aren't some tricky anti-dilutive clauses in here.
...and if there are reset provisions in the previous raises, look out below.
There ya go Birdy!
I vote for Birdman...do I have a second?
Holy crap. I was here a year ago and not a single thing has changed with this company, that's pretty hard to do! (well, there are more shares out)
It looks like my colleagues were right, this is just a really expensive science experiment gone futile.
IMO, I think what you'll find is that these guys will slowly start pulling away from this business plan and start a "solar management service". Not what we were hoping for, but at least they will get paid for awhile.
Nice try at the solar cell thingy though.
How do we get the intro to Telkonet updated???...I mean this current profile is a misrepresentation of the company.
Not a horrible 10Q, but I just don't think that investors are excited about this company going from $15MM (2015) to $18MM (proj.) in sales, with no strong indication of profitability. Just not scaling the business enough for the risk.
Investors can revisit this thing in 2-3 years at this rate and still have a decent entry level. Why come in now? I'd rather spend it on a vacation or maybe one of those new Tesla's....oh..not yet?
In addition, JT blames the loss on a little proxy fight that puts them $400K+ in the red...what's gonna happen if something larger unexpectedly happens? Don't like the cash balance number as a result.
Other thoughts:
- Profit margin isn't supporting growth whatsoever.
- In no way, shape or form can they justify a $32MM market cap. Can't be done.
- R/S anvil still attached
- They've got 2,350 properties/5 million network users under Ethostream, you mean you can't exploit that customer base for more than just monthly fees?
- IMO, this company needs a JV/acquisition with an industry-related company that has a significant sales staff. Couple that with a cap raise, R/S and an up-listing - NOW you've got an interesting company!
PK???
Yea, IMO, its really the right thing to do. Its not personal, just business. The current board has been extremely passive other than Davis chiming in on one conference call, we've seen very little leadership or urgency from this board.
I think the company is at very critical crossroads. The time is now to shift this into high gear. I believe they have the product and market, now they need more aggressive and strategic execution.
The company needs to get off the OTC. That's gonna take capital and maybe an acquisition (and a reverse no doubt). They are pretty close to qualifying under the alternative guidelines I think.
I refuse to be overly-critical of Tienor as he has done an admirable job of re-positioning this company. But from here on out, I think we need some significant changes to get on the main track. Whether that means the addition of new and more experienced executives, a change in corporate philosophy or a broader vision of our market, not sure, but this move is needed in my opinion.
Kross is right, they have done done nothing to exploit the fact that they are a public company (they have not raised money, they have not acquired anyone, haven't used their equity for any kind of growth)...why are they public?
Time for some changes...now.
Form DEFC14A - KROSS PETER T - TKOI
Filed: May 19, 2016
FULL PROXY AT WWW.SEC.GOV
TELKONET, INC.
ANNUAL MEETING OF STOCKHOLDERS
JUNE 27, 2016
PROXY STATEMENT OF
PETER T. KROSS
IN OPPOSITION TO
THE BOARD OF DIRECTORS OF TELKONET, INC.
WHY YOU WERE SENT THIS PROXY STATEMENT
Peter T. Kross is seeking your support to elect Messrs. Peter T. Kross, Leland D. Blatt and Arthur E. Byrnes to the board of directors of Telkonet, Inc. (“ Telkonet ” or the “ Company ”), in opposition to the candidates nominated by the incumbent board of directors of Telkonet. This proxy statement and form of proxy are first being mailed to stockholders on or about May 19, 2016. Mr. Kross, Mr. Blatt and Mr. Byrnes are participants in this solicitation. The terms “we”, “us” and “our” refer to the participants.
THE PROBLEM AND THE SOLUTION
We are seeking your support to replace a majority of the Telkonet board. The board has presided over the Company’s poor financial results and stock performance. Since inception through December 31, 2015, the Company has incurred cumulative losses of $122,095,121 and has never generated enough funds through operations to grow its business.
While the Company has been unable to generate enough funds to grow its business, the members of the board have continued to be well compensated, earning $48,000 per year, plus expenses. On the other hand, stockholders have suffered through significant stock declines since the Company’s inception, and stagnant low stock prices for at least the past five years.
We believe the Company’s sustained poor financial results put Telkonet at a critical juncture in its history. Stockholder value continues to erode or be transferred to the board in the form of board fees. We believe that the financial results of Telkonet support our view that the Telkonet board is failing stockholders.
We also believe that the backgrounds and experiences of our nominees will allow them to be a resource to the Company in addressing the risks that the Company faces: (1) the industry within which the Company operates is intensely competitive and rapidly evolving; (2) the Company depends on a small team of senior management and may have difficulty attracting and retaining additional personnel; (3) the Company’s inability to obtain capital, use internally generated cash or debt, or use shares of common stock to finance their operations or future acquisitions could impair the growth and expansion of the Company’s business; (4) the Company’s management and operational systems might be inadequate to handle potential growth; and (5) the Company may not be able to obtain payment and performance bonds, which could have a material adverse effect on the Company’s business.
As an outsider and stockholder, our nominees cannot make detailed and specific plans about where to lead Telkonet until they are directors with full access to the information necessary to make informed decisions. When elected, we will lead a very thorough and complete and intense review of the Company. Our nominees will strive to reverse the Company’s poor financial performance by being well informed, independent, and decisive, with a strong focus on stockholder value, and they will open-mindedly considered all available options to maximize stockholder value, including a sale of the Company.
OUR ALIGNED INTERESTS
We can deliver with certainty on a pledge that our interest in the Company will be the same as most public stockholders because--like the vast majority of public stockholders—we have put our own capital at risk by buying the Company's stock in the open market. Indeed, all of our nominees have put significant capital at risk, unlike the outside board members who hold in the aggregate fewer shares than any one of our individual nominees for director holds on his own:
Name of Nominee Class Amount
Peter T. Kross Common 4,467,880*
Leland D. Blatt Common 500,000
Arthur E. Byrnes Common 698,000
_______
* Mr. Kross holds 10,000 shares of record, and is the direct beneficial owner of an additional 2,710,327 shares. In addition, he may be deemed to be the beneficial owner of an additional 1,231,211 shares due to voting and investment power that he has over shares held by or on behalf of certain family members. As an investment adviser, Mr. Kross directs client accounts as to which he has discretionary voting and dispositive authority with regard to 516,342 Shares.
No hedging or other transaction or series of transactions has been entered into by or on behalf of any of the nominees, nor has any other agreement, arrangement or understanding (including any short position or any borrowing or lending of shares) been made, the effect or intent of which is to mitigate loss to or manage risk or benefit of share price changes for, or to increase or decrease the voting power of, any nominee with respect to any share of stock of the Company. None of the nominees has pledged any shares as security.
The current outside board members hold in the aggregate fewer shares than any one of our individual nominees for director holds on his own, as show in the table below. The valuation date used for valuing the shares is April 18, 2016, which is the record date.
Board Member Class Amount Value
Tim S. Ledwick Common 171,887 $32,659
Kellogg S. Warner Common 63,098 $11,989
Jeffrey P. Andrews Common None $0
If elected to the board, the nominees intend to recommend that board fees be paid in shares of common stock to better align the directors’ goals with those of shareholders. This should also help the Company conserve cash for operations.
YOUR VOTE HAS THE POWER TO CHANGE THE BOARD
Notwithstanding our perspective on Telkonet, it has been our experience that shares of good businesses suffer when leadership is misguided or self-serving, or both. With such leadership, a company’s stock price often times stays at the same price or declines, as the Telkonet stock has done. As one study indicated, a board can positively impact a company’s financial performance by participating with management in formulating corporate strategy in the interest of stockholders, developing appropriate incentives for management and other employees to harness their interests to achieve the agreed upon strategic plan, and judging the performance of management against the strategic plan.
So, what is an investor to do when a board is entrenched and no longer focused on generating stockholder value? Normally, the answer can be disappointing because it can be very difficult for stockholders to change management even if performance is very poor, and voting for an alternative slate of directors often isn’t even an option. This year, however, you have the power to effect change at Telkonet. We have offered you a choice--an alternative slate of director nominees.
Please take advantage of this opportunity to make a change. VOTE TO CHANGE TELKONET FOR THE BETTER. VOTE FOR OUR DIRECTOR NOMINEES.
ACCOUNTABILITY
The current leadership has had time to manage toward a better future for Telkonet. Yet, the Company continues to incur significant losses, and the board members continue to collect their board fees. It is time to hold the board accountable and elect our nominees.
MEETING DETAILS AND PROXY MATERIALS
We are soliciting proxies to be used at the 2016 Annual Meeting of stockholders of Telkonet, including any adjournments or postponements thereof and any meeting which may be called in lieu thereof (the “ Annual Meeting ”). The Annual Meeting will be held at 1:00 p.m., local time, at the offices of Telkonet, Inc., 20800 Swenson Dr., Suite 175, Waukesha, WI 53186 on June 27, 2016. At the Annual Meeting, the stockholders of Telkonet are being asked to consider and vote upon (1) the election of five directors to the board to serve until the 2017 annual meeting of stockholders, (2) the ratification of the appointment of BDO USA, LLP, as Telkonet’s independent registered public accounting firm for the fiscal year ending December 31, 2016, (3) the approval by an advisory vote of the compensation of the Company’s named executive officers, (4) the approval of an amendment to the Company’s Amended and Restated Articles of Incorporation to effect, at the discretion of the Company’s board of directors, a reverse stock split of the common stock, par value $0.001 per share, at any time prior to next year’s annual meeting of stockholders by a ratio of not less than 1-for-10 and not more than 1-for-50, with the specific ratio, timing and terms to be determined by the board and (5) any other matters that may properly come before the Annual Meeting or any adjournments or postponements thereof.
Important Notice Regarding the Availability of Proxy Materials for the Stockholder Meeting to be Held on June 27, 2016 . This proxy statement and the accompanying form of WHITE proxy card are available at www.dfking.com/tkoi.
IT IS IMPORTANT THAT YOU RETURN YOUR PROXY PROMPTLY. IF YOU ARE A RECORD HOLDER, PLEASE SIGN AND DATE YOUR WHITE PROXY CARD PROMPTLY AND RETURN IT IN THE ENCLOSED ENVELOPE TO AVOID UNNECESSARY EXPENSE AND DELAY. NO POSTAGE IS NECESSARY. IF YOUR SHARES ARE HELD IN “STREET NAME” BY A BROKER, NOMINEE, FIDUCIARY OR OTHER CUSTODIAN, PLEASE CONTACT THE PERSON RESPONSIBLE FOR YOUR ACCOUNT AND INSTRUCT THEM TO VOTE THE WHITE PROXY CARD ON YOUR BEHALF (YOUR BROKER, NOMINEE, FIDUCIARY OR OTHER CUSTODIAN MAY PERMIT YOU TO VOTE VIA THE INTERNET OR BY TELEPHONE).
Please contact D.F. King & Co., Inc., our proxy solicitors, at the following address, telephone number or website, if you have any questions or require any assistance:
D.F. KING & CO., INC.
48 Wall Street
New York, NY 10005
Toll Free: 1-800-859-8509
www.dfking.com/tkoi
I enjoy reading ALL of the many viewpoints on this board regarding Telkonet, but I'd like to offer Birdy a little advice if he/she wants to be taken seriously or just wants to be another deranged, uneducated shareholder looking for any excuse as the reason for a down-tick other than corporate fundamentals, financial performance, industry analysis, peer group valuations - or simply - more selling than buying! Ya know...REAL STUFF.
#1 - Spy vs. Spy. This take is embarrassing, there are NO conspirators trying to "put the brakes" on. Who are these people and why?? It's not the "shorts", they know the stiff penalties of doing that. All bets are off however, on companies that undergo toxic financing. Then you are dealing with a den of vipers.
#2 - This stock moves on news, financial/corporate performance, emotion and day-to-day buying and selling
#3 - I find it highly unlikely that any knowledgeable investor is going to have their investment decisions decided on anonymous, uninformed posts on an internet message board
#4 - OK, we get it, you need a lot of hand-holding, but I think you would be better off just letting the company execute. If you have confidence in management and the industry in which the operate...chill. Coming out like Chicken Little every time the stock goes down and shouting BUY-OUT! every time the stock goes up, can't be a healthy way to live.
#5 - Add value, like your links to articles. No one here want to listen to paranoid thoughts...do they?
TKOI is getting its legs, and and as such, will go up AND down. JT seems to have his hand on the rudder, let him drive for a bit. I mean, holy cow, how can you watch this thing move every minute of every day??? Hearing the accusations of manipulators and conspirators is getting tiring and honestly, has no basis in reality.
Just my opinion, of course!
Getting a little chippy in here..
Allow me to offer my insights, constructed solely from my personal opinion.
First of all, based on the actual interest on this message board, I'm not 100% convinced that littlebirdy and bdn3030 aren't the same person. If, in fact, you two are separate and actual individual TKOI shareholders, why don't you two gals just exchange phone numbers.... seems like a lot of unnecessary anonymity, don't ya think????
Second, TKOI is a real company relative to the market we are wading in, and as such, you really should be using a bit more financial acumen when discussing it. Let's take a closer look.
So TKOI did $4.6 million for the quarter, well done and about time they show a little growth- but STILL not their highest quarter. Is it just a churn of backlog, we'll see. But let's apply similar production assumptions for the rest of 2016. That gives us $18.4 million in revenue and $480,000 in net income, which works out to $0.0037/share in earnings. This represents a 22.7% revenue lift over 2015. Applying that growth factor to the price/earnings, we come up with a price of $0.084/share. But let's say "we" are a bit delusional and want to apply a 50x growth (revenues of $22.5 million) rate to TKO future earnings, we still come up with a $0.185 share value...hmmmm.
So you see, its simple math...err..reality. The company right now is fully valued on most likely what will be 2017 earnings and discounting wild speculation, should be trading NO higher that $0.19..exactly were we are today. In fact, you could make a strong case that the stock is OVERVALUED.
This company will be and is being valued on its financial performance, and so far the market is doing a bang-up job. IMO, I don't think there are new buyers coming in at this point, its the same old buyers like "littlebirdy" that are trying to average down from $5.00 by buying 1,000 here a 1,000 there.
Growth in top line revenue is nice, but it's the cost of getting those numbers that really translate into whether a business is sustainable or not. Jury is still out on Telkonet long-term. Any one of 5 different competitors could come up with a better mousetrap and Telkonet doesn't have the pivot to defend its market.
Scalability is a problem on their own, its painfully gradual. It's......one.......building....at.....a......time. Telkonet remains a little (albeit growing) fish in a big pond, although Tienor is doing an admirable job trudging through his "growth initiatives"
IMHO, this company is fully-valued at $24MM (probably over-valued really). They need ALOT to have happen, not only financially, but capitalization-wise to even think about an up-list..which they really need to get to the next level. It's clear from the disinterest that we've seen the past two days. Simply put...no one cares. IMO, dead money for another 12 months barring cataclysmic advancements.
I know some like to speculate about a buy-out, that's great. But IMO, the purchase price based on today's company is certainly not anything north of $30 million, unless Telkonet's HQ is built over a red diamond vein.
Did you notice they tried to be cute and excluded the impact of non-cash based compensation, but stood strong in posting Goodwill of $5.7 million. Hey, if you can make it sing, make it sing...LOL!
Finally, if you want to be taken seriously on this board or even in entry-level investment conversations, you have to start using reality as your bully pulpit, along with just a smidgen of financial sophistication to lend credence to your statements.
Hey, just tryin' to help...Go TKOI!
P.S. - Don't forget those 5 MILLION shares at $0.13 that were just awarded.
There's absolutely no reason for Davis to be paid $60,000/yr. as Chair and for the other 3 current directors to be paid $48,000/yr. on a micro-cap doing $14mm in revenues.
Of COURSE they don't want Kross to make them accountable.
That $204,000 could probably be used on 2-3 very good salesman.
Thanks Dano/Jericho,
I appreciate the info, I'll keep sifting!
Ok, I'm at my wit's end and need some input. I've spoken to brokers and analysts and even they can't provide any substantive explanations.
I love the industry and I'm trying to find anything that makes a buy here not irresponsible.
Can someone tell me how this company has a market cap of $93 MILLION??
Do they have a bio-tech division I don't know about?
Some more dribble:
- simmer down with the grammar corrections, we don't need English lessons on a message bored
- they are not BIC, and i don't have time to do the due diligence for you. Let's just say the financials are a good start:
Product revenue
2015 - $10.9 MM
2014 - $10.9 MM
2013 - $10.1 MM
- if "they have received an offer" as you have predicted, they would have to issue an 8-K, soo...
- i understand you really want to believe and that's ok, but this is dead money here as we are real close to full valuation ($26MM) based on both the company's trailing and future metrics.
- to justify today's price, they need to post net earnings of at least of $1.3 million AND prove that its on a sustainable upward trajectory. I don't see it happening under current conditions in 2016.
- the short isn't naked, I'm sure they have a locate, so there will be no squeeze. It will not "factor in to the share price in a big way" ever
- the Nest acquisition came with so many value-adds, you can't begin to compare the two
- don't get me wrong, I want Telkonet to succeed in a big way, I just think its better to put the pom poms away for now and come to grips with reality. I can appreciate your unbridled enthusiasm after lo these many years, however.
- IMO, I'd love to see a reverse, up-list, cap raise and a few accretive acquisitions
A few observations on the Telkonot 2015 Overview webcast:
1.) It could be my computer, but the audio was horrible!
2.) If I didn't notice the date and year, this presentation could have been from any one of the past 16 quarterly webcasts. No value.
3.) Why, after running this company for the past 7 years, does the CEO STILL have to read from a script?? You would think he would know how to present this company and its 3-month business activity from his heart and head, not from a piece of paper
4.) If I hear "preparing the company for future growth" one more time....ARGHHH!!!!
5.) IMO, management has to stop with these quarterly calls. For the most part, there is not enough business/financial activity quarter-over-quarter, at this point, to justify these events. It sounds like the same 10 people are listening. These webcasts do nothing for the company or shareholders, why pay to read the 10K aloud? Also.....they are very BOOOOOOOOOOORING
Just sayin'....
Been a shareholder since the iBridge so I'm fairly confident in my take:
Gimme a break. Tell us, what "group" of people is the news not reaching? Is there a secret society of stock buyers that the news is by-passing? The news is released across the national financial wire system of MarketWired, which by the way, was just bought by NASADQ so stop with the conspiracy stuff. This has nothing to do with IR/PR, it has EVERYTHING to do with EXECUTION.
Here's the bottom line. Forget about the recurring revenue model, that's not going to get these guys anywhere. If they are going to create value, its the smart energy division, that's where its gonna happen, IF its gonna happen.
IMO, Kross doesn't believe in current management, and why should he? By the looks of the year-over-year performance, he's right. PRODUCT REVENUES WERE DOWN $68,000 from 2014...that is horrible and inexcusable for a tech/software company that has had their product on a growing market for 4 YEARS. They are not showing any ability to scale the business. These guys should be doing $40+ million at this point if the technology is that disruptive. They're operating in one of the hottest industries and sales are DOWN.
R&D expenses up only $300K? In contrast, SG&A expenses are UP $1 MILLION and they had less revenue??? Hmmmmm....something ain't right.
IMO, the smart thermostat is a non-starter in its current home. There's too much competition and Telkonet can't afford to lose money while it tries to compete in the brutal consumer marketplace for share (it will ultimately get crushed if left to its own devices).
These guys need to be sold to a company that can put them in a national distributor and dealer sales system. The hard part is determining value. No one really knows if this technology is best-in-class. By their revenue numbers, its doesn't appear to be so.
Here's what I think will happen, they will either do a reverse, simultaneously with an up-listing and capital raise (Cannacord?) OR they will sell the company, for what I think is an inflated, but fair value of $25-$30 million (which concedes that the technology is better off in someone else's hand). I just can't see how a higher buy-out price can be sanely justified at this point.
I'm not here to argue, just to state the facts that educated investors are already aware of.
Good luck.
What concerns me is that this company is off most all solar and energy investors radar. There are no real results here and it is becoming clearer that it will be a long way to market, IF ever. I fear that if they ever have a "product", they will be trying to sell buggy whips to car owners. These guys just don't have the answer to the market's demand...and they are now left to work with low-level equity financing firms whose only concern is selling their shares in 90 days. I'm not a large shareholder, just one that can see that this story potentially coming to an end soon, IMO.
One of several cases in point:
Saudi Investors Join $70 Million VC Round for Solexel’s Thin Silicon Solar Technology
More than $240 million in funding, so far, as Solexel moves to volume production of high-efficiency thin silicon solar panels
Solexel, one of the few remaining standalone solar silicon startups, has completed a long-in-the-making $70 million round of funding and added Riyadh Valley Company, the VC investment arm of King Saud University of Saudi Arabia, to its list of investors. According to an SEC form, Solexel closed the D round in June.
Last year, Solexel added new investor GAF, a large roofing materials manufacturer, to its roster of investors, which includes SunPower, KPCB, Technology Partners, DAG Ventures, Gentry Ventures, Northgate Capital, GSV Capital, Jasper Ridge Partners, and Spirox. The firm's board of directors includes Mehrdad Moslehi and Michael Wingert of Solexel, as well as Ira Ehrenpreis of Technology Partners, Les Vadasz, Jan van Dokkum of KPCB, and Greg Williams of DAG Ventures. SunPower did not reinvest in last year's D round first close. Earlier this year, Solexel picked up $25 million in senior debt financing from Opus Bank.
The micro-cap graveyard is littered with these types of interpretations.
Good luck.
This is not a positive sign. Firms go to equity financing sources such as Dutchess when all other doors close.
If this is a typical deal, massive dilution is ahead.
Looks like this science experiment is almost over.
If anything positive, the Company is going to have to create liquidity for Dutchess, so we may have some short-term promotional, but artificial, upside.
Rochester, NY — (August 6, 2015) Natcore Technology Inc. is entering into an investment agreement in the amount of US$10 million with Dutchess Opportunity Fund II.
During the 36-month term of the agreement, Dutchess will be required, at the option of Natcore, to purchase up to $10 million of Natcore common stock. Natcore will control the timing and amount of any share sales to Dutchess and a minimum price of the common stock to be issued.
get your filing info from sec.gov for accuracy. ceo owns 4.6 million and the numbers on the bid and ask don't have to be accurate. MM are only legally required to to buy or sell 1,000 shares on either side, then they can go away (also know as a head-fake). don't be fooled, these numbers can be deceiving.
if CEO or Co. sell they have to file with SEC - i.e, you would see a filing!
Lotsa volume here, are these guys still being promoted? There's really not much of a company here. Trying to figure out where all the volume/interest is coming from.
If you want to provide specific question(s) catblu, I will try my best to provide clarity based on personal observations and experience.
That's weak Lenny...
What "figs" are you referencing?
Thanks.
In my humble opinion (aka fact), with speculation of the 10Q results this stock could trade in the $0.04 - $0.16 range over the next 2-3 weeks.
Panic will certainly ensue and the usual calls of "this is a scam" will be presented.
These guys need another $10 Million (at least) to execute their business plan.
Sincerely,
Reality
I hope everyone is buckled in...
Hey, let's play a game (you guys are getting boring with all this sublingual talk and complaining).
Two questions you must answer:
1.) What happens if these guys don't make it?
-and-
2.) What happens if these guys are bought out for $2.50 a share?
Sad to say but I totally agree. Using twitter and the other social media sites is a complete waste of time, especially in the manner that they are employing. I for one am getting concerned and irritated at this management team's lack of good decision making and execution.
The product marketing (or lack thereof) that these guys have done has been embarrassing to say the least, I thought they had some experience. These tweets by their athletes haven't done a thing for this company and won't. The total lack of any traditional TV, print or radio ads is just mind-boggling. They seem to have ignored the basic formula for effective marketing an branding success by choosing to employ a lackluster, lazy, ill-conceived and cratering social marketing plan that is being ignored by basically everyone. They've adopted TMZ marketing which lasts for about 2 minutes. A total waste of efforts.
Don't see why an actual Walgreen's pr is so important, we all know they are trying to get into the stores so an announcement is anti-climatic and won't do much for the price of the stock IMO. It's good to get into Walgreens but the critical factor is not the news, but their actual deployment, which seems to be going very slow.
The ONLY and MAIN driver for this stock, and company overall, is revenue. In a few weeks when we see their quarterly filing, we will know if they are still driving on pavement or towards the proverbial and on-coming cliff.
Well, well, well..... it looks like some of you are finally starting to understand the sandbox you are playing in.
I've opined several times that this thing will not go straight up cause Tiger wins a tournament or they sign with Wal-Mart. Nor will it go to zero if they do another three capital raises.
Yours truly contributions aside, probably the most intelligent thing anyone has ever said on this board is from Kylelele and it is something you need to make part of your being:
"Based on the current shares, this stock can have large fluctuations up and down. And until the revenue catches up with the equivalent pps evaluation, that will continue. Only with revenue will we get stability".
Simply and purely brilliant.
Regardless of any charts, in my opinion, you most certainly want to have shares available under $0.15...the lower the better
That's one half. The other half is the company stays in business.
Financiers get a return, Fuse gets working capital and shareholders get motion sickness.
There's no doubt management is getting paid, but the real question is, are they earning it? And you can get the answer to that question four times a year
"But it still does not explain to me why they would not wait to sell later with all kinds great news on the way."
They don't read the news, they don't care about the news. These PIPE investors see these companies as a number and that's it. They shoot for a specific ROI and as its met, they are gone to move onto the next one.
Do you know why? Because 85% of the companies in this market don't survive. They know it, and they know when to get on the ride, how to get on the ride and when to get off.
Most individual investors treat these stocks like a scratch-offs which is what they are. Problem is, reality has to set in eventually. If you own Fuse Science as an INVESTMENT, you should own 10 other micro-caps with the same potential, this way the odds are that you should be right at least once.
First, let's stop turning this into some kind of conspiracy that's just ridiculous and a waste of time.
What is happening now, in the most general terms, is the moving around of paper because of the financing. I'm not going to provide all of the nuances, but if you read the portion of the 8K provided earlier about the 80% VWAP, you'll get an idea.
This goes on every day in the penny market, it's just how funding gets done. The institutional investors are have a different agenda than us so you have to be able to deal with it because this is the way the market functions down here.
Usually, by the time we see it, it's already happened.
You need to read the 8K filing, in particular this section and the supporting text in the body of the document:
The initial conversion price of the Notes is $0.17, subject to adjustment as provided in the Notes. The conversion price will be adjusted to 80% of the average of the volume-weighted average price per share (“VWAPs”) for the ten (10) trading days immediately following the date that the registration statement covering the resale of all the shares underlying the Notes and the Warrants are declared effective (the “Measurement Period”), in the event that such adjusted conversion price is lower than the initial conversion price (the “Conversion Price”).
Manipulated??? Am I missing something or did everyone miss the fact that these guys just did a financing at $0.17?? Where did you THINK the stock was going to go??
Does anyone read the filings??
From the March 4th 8K:
The indebtedness evidenced by the Notes bears interest at 5% per year, payable quarterly, and matures on the first anniversary of the Closing. The principal amount of the Notes will be payable on the maturity date. The Notes may be converted into the Company’s common stock, at the option of the holder, at any time following issuance. The Notes are mandatorily convertible if Fuse’s common stock trades at a level equal to 250% of the Conversion Price (as hereinafter defined) for any twenty (20) consecutive trading days commencing ten (10) days after the Measurement Period (as defined below). The initial conversion price of the Notes is $0.17, subject to adjustment as provided in the Notes. The conversion price will be adjusted to 80% of the average of the volume-weighted average price per share (“VWAPs”) for the ten (10) trading days immediately following the date that the registration statement covering the resale of all the shares underlying the Notes and the Warrants are declared effective (the “Measurement Period”), in the event that such adjusted conversion price is lower than the initial conversion price (the “Conversion Price”).
Hoff, you are correct, the overhang of the CASHLESS warrants would have tortured this stock if you read the S-1. This exchange appears to put a floor into the Series A warrants while giving those that choose an opportunity to buy some calls at $.30. Seems like a responsible move.
Regardless of what they do with these warrants, if they don't EXECUTE, this is all for naught!! The ONLY thing that matters right now is establishing a strong and growing REVENUE stream and INCOME ..absolutely nothing else.
I could care less about any more athletes, other than Woods, they have had no effect on the business whatsoever.
REVENUE, REVENUE, REVENUE, REVENUE.