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Well, we'll see I suppose. Frankly, I'm getting tired of waiting, it has been 7 years.
Well WTF??? Now they are moving away from the QVH, which we were told was the be all end all and was the focus of the company going forward, to the original model? Sorry, I have no faith at this point.
Thank you for the updates Mike.
FINALLY!!! Some actually QVH sales. Also, the per use "leasing" model doesn't seem like a bad idea to get people using the product.
Well, I'll be dipped. First profitable Qtr in 9 Qtrs. And did so with no QVH sales (itself somewhat disappointing). Hopefully this is the start of the turnaround.
Mike,
So, you feel that the Q1 announcement this afternoon will be disappointing? (again) Sheesh. You would think that even a blind squirrel could find the occasional acorn.
Thanks,
Marc
Mike,
As you mentioned, there are larger players in the arena QVH is entering. With that being the case, and the float being so small, don't you think a buyout would be in order? If you are a much larger player, why would you take the risk of some upstart coming into your turf and upsetting the applecart, just buy them out, gain their technology and move on?
Thanks,
RMS
SPIN Receives Notice of Its Quad Video HALO(TM) Compliance in Accordance With EN 60601-1:2006 + A12:2014 Along With 2006/95/EC for CE Mark
Lots of volume today being transacted at the ask price. That is a nice sign.
7 bones a share is a stretch for this company - at least in the foreseeable future. If management gets their act cleaned up and the QuadHALO units start rolling off the shelves, 4-5 is not out of the realm of possibility though. Both of those are big iffs.
Heck of a lot of volume for before 12pm. Anybody heard anything?
eastunder- When you reference backlog, I assume you mean the product order backlog? It's a nice problem to have, not really a problem at all actually, unless you can't get the products out to the customers in accordance with the terms of their purchase orders. It would be nice if they could add some production capacity, but considering their current constraints, this is not an option.
I think CPST has great products, just lowsy management.
Fine, but where does the chart tell you the stock is going?
Hopester- Okay than where is CPST going from here, where will it be in 3,6,12 months? If the charts can't tell you that, they're useless. I used to pour over charts til I was blue in the face in my 20s. Never did any good.
As a long-time holder of CPST I offer you this --- The biggest problem of all is what management has done vis-à-vis dilution. In the last 5 years they have diluted the stock to the tune of 53.5%. That's pretty rough to have YOUR shares be diluted like that by a management team that is clearly "deluded". Anyone who passed a college finance course can tell you that the three ways to finance your operations are with internally generated revenues, issuing debt, or issuing equity. Issuing equity is the least attractive. The fact that management has issued so much new equity says they either cannot get at least neutral terms for a new debt issuance or they are too stupid to know better than to dilute the stock to piss water. In either case, something is very wrong. The market has not tanked, yet CPST has. You have to ask why? And, you shouldn't have to look too far or too hard for your answer either.
eastunder - Where is the "Like 100 times button"?
The chart is irrelevant. I look at the fundamentals, the balance sheet, the income statement, the cash flows. Despite revenues doubling over the last 5 years, CPST is still losing money. No chart in the world can disprove that fact.
The bottom line here is irrelevant to the recent stock price movements. This company has a great line of products that are clearly in demand as the constant orders indicate. However, this company cannot seem to breakeven, let alone make money. What is the problem, it's not the product? That only leaves how the company is run. Hopefully, one of the GE's of the world realizes how potent the market for CPST's products is and swoops in as a white knight to buy out CPST. Problem is, with the stock so damn low (I can't figure out why its this far down either) we as shareholders wouldn't be getting what I feel is fair value.
Considering that the entire float is less than 20 million shares and the insiders have a decent % locked up, how much volume are you expecting to see?
That's it, I'm done with this crap. This wasn't a bad report, it was an B-F-ing bad report.
WHERE ARE THE REVENUES DONOVAN!!!!!!!!!!!!
Clearly somebody wants out, and they want out before the news comes out. Doesn't seem like a good sign.
Well, someone clearly wants out at .60.
TC,I agree that the heavy insider ownership is a positive sign, but I'm still waiting on some news about HALO units moving. Also unfortunate is that there was no follow through or consolidation of the prices in the 60s. Still in wait and see mode.
TC- I personally perceive this to be a positive announcement all around, however, we need to see some HALO units moving. Just a couple will suffice for now, give me something tangible Donovan.
We've been promised a revenue stream from HALO sales, that stream needs to start flowing.
Regardless, things do seem to be percolating at SPIN.
But then again, what about the regulatory environment as concerns the core business model?
We got nailed in FLA. I know SPIN is more in tune with what the lay of the land is in TX and its clear that TX is not a swing state prone to dramatic policy/regulatory shifts. However, to be a true winner, SPIN must go beyond TX. If what happened in FLA can happen there, it is not beyond the realm of possibility it could happen elsewhere.
Perhaps SPIN expands into Louisiana say, and does so heavily, and then we get bunned like we did in FLA with new regulations?
That is my fear. HALO does not seem to have this potential pitfall. Of course, I could be wrong.
Bottom line with SPIN is that the Quad HALO units need to start moving. When the revenues from those start to come in, then perhaps I'll be sold. For now I am neither for or against, I have not sold my block of shares, but I am not adding to it either.
As a clarification, I would see having a loan overdue/in default as wrongdoing. That's what I thought the poster was trying to say, that SPIN was in default on the loan and the case involved going after SPIN for the money.
The only link to SPIN in this case I see is that one of the defendants in the case had a business relationship with one of SPINs officers. How that makes SPIN a defendant is beyond me? Where is SPIN or its officers named as defendants in this case?
Calling no joy on this
Well, to quote Barry Corbin's character in War Games, 'Hell, I'd piss on a spark plug if I thought it'd do any good.'
I'm glad to see the focus on marketing the HALO (I think it does have really great potential), but this should have happened a year ago. But then again, it's like the Titanic showing up in New York harbor tomorrow, better late than never.
Always, if you read my post previous to the one you replied to you would see that I am no cheerleader for SPIN. There are very serious issues with this company, namely how it has been managed over the past several years. There are some positives too.
As far as know concerning Cash Flows, they are still collecting on the cases they initiated in the state of Florida before they tucked tail. So, for the time being, they will still be collecting a good amount of cash.
Either way, new sources of revenue will need to be found.
And soon.
TChauncy, I will say and admit there are things within SPIN's financials that speak to the positives you mention. Among these positives are:
As far as assets and liabilities go:
Cash on hand has trebled since 2010. Current receivables have doubled since 2010. Long-term receivables (although having dropped from 2012) have doubled since 2010. Total assets have more than doubled since 2010.
Total liabilities are roughly flat compared to 2010.
These two in combination have equated to shareholder equity trebling since 2010.
Also, Net Working Capital is a plus 2mil.
So, fundamentally there are some very real positives with SPIN. However, as I've said, there are real concerns with how the company has/is being run. We shall see.
TChauncy, thank you for your detailed response. However, I'm afraid it only raises more red flags for me. I do appreciate your views and your time to post, however, I have some SERIOUS concerns about SPIN.
Before I respond to the points you made I would like to point out:
Net Revenue for 2013 was lower than every year going back to and including 2010 (the first year of full operations as you put it).
General/Administrative Expenses have more than doubled since 2010.
While the long-term receivables are up from 2012, the current receivables have dropped off sharply, erasing the gains in the long-term category.
That being said, let's get to your post. That's fine that you believe from personal experience that Dr. Donovan is a fine man. No one is saying that personally he isn't. What we are saying is that he has not gotten SPIN to live up to the promises that he said it would reach. Couple of items here that you mentioned:
He was 6 months too slow in getting out of FLA. That's not saying much for his leadership and vision is it? If a simple change in the law can basically run SPIN out of a state, how good is the business model?
He was too generous in settlements - to the tune of 4 million shares according to your post. Well, that is not exactly a glowing endorsement of responsible fiduciary duty isit? Considering he owns over 3 mil of the float, it is also detrimental to his own position. If he doesn't seem to care/be able to help look out for his own investment, what confidence should I have that he is looking out for mine?
You mentioned the competition in MacAllen. Well how is it that some other concern can come into SPIN's territory and beat us out even though we had the advantages of being first-to-market and the HALO? That is an awful sign I'm afraid. If we can't win in our own backyard when we have the advantages on our side, what other view could you take on the issue?
You also mentioned his personal practice - Northshore. Could it not be possible,that at his age, he is simply overwhelmed with doing both?
To my mind, these are all very legitimate concerns that your post has not assuaged me of. Going to your final point, people have every right to criticize Donovan for his performance. I can read a financial statement and a balance sheet. There are serious concerns with SPIN. There have been serious setbacks, that to date, have not been overcome with no serious evidence that they will be. If you are the CEO of a public traded company that has clearly raised capital from investors who technically own the company, you certainly well know that you open yourself up to criticism from those investors if there is evidence the company is not performing. That is every bit of clear evidence that SPIN is not performing.
Thank you Frank.
I've got a question for Tchauncy.
You have consistently (at least since I've been following SPIN - over 4 years) been a cheerleader for SPIN. It is clear that they (namely Donovan) were wrong with their projections in 2010/11 that 2013/14 were going to be great years. We KNOW they were wrong in 2010/11. Considering this, what causes you to believe that they are correct now in that SPIN has a bright future? Thanks
RMS
Quite frankly, I am somewhat surprised we didn't get a little Dabney Coleman 'How low can you go Indio O?' action today. Perhaps most of those looking to dump shares have gotten out by now? With such a small float, it's definitely possible.
The fact that there has been painting with SPIN is nothing new. Since I've been following SPIN (Jan 2010), I've seen countless small(100-500 shares) 'caribbean-jerk trades' as I call them at 3:58 or 3:59. These have tended to be, in my estimation, 80%+ uptick paints for show. This is nothing new with SPIN, I don't think it means anything.
Honestly, I think SPIN is toast. I'd love to be proven wrong, but the only person around here who is constantly proven wrong seems to be Donovan.
This is just sickening. Donovan ought to be ashamed of himself. For years it has been, "We're rounding that corner, we're almost there. We can see the bright horizon, it's close.' Well, by my reckoning, SPIN has circumnavigated the globe chasing that bright horizon and still hasn't gotten to it. PATHETIC.
Somebody get me barf bag.
Geez, I guess ask and ye shall receive. Only took 15 minutes.
Last year they reported on 4/1, we don't even have an announcement stating when they are going to announce yet. WTF?