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hmm, that's funny. My post I wrote on Friday has been removed so it seems.
Friday April 8th I wrote:
Hokie, Scrup...
Guys, I am the biggest fan. For those who don't know me, I was (and still is) a big fan of the product, and the proscpects of Antik.
I was watching "Fran" tonight (an eve show) and what did I come across? Fran Dresser in an pair of Antik Jeans!
I have to say, I elected to sell today at .53 from my entry of an average of .10 because I diligently persued the available data out there on the trac of MJET.
Frankly, I was blind to the RS possibility. But on further discovery, I feel this is a distinct possiblity.
Reference: dickmilde's posts here (only 2) and you will see what is about to happen; (once, and if the merger is finalized) it's there in plain english:
"In the exchange, we will issue shares of our common stock to Antik Members in such amount so that, immediately after giving effect to the acquisition, the Antik Members will own in the aggregate 95.8% of our issued and outstanding shares of common stock on a fully diluted basis....
...our current stockholders are expected to own approximately 3.8% of the issued and outstanding shares of our common stock after completion of the transaction with Antik, on a fully diluted basis...
dickmilde went on to say...
"If current stock holders have 28,122,570 shares and that will represent 3.6% then we can expect enough shares to be issued so that the total number of shares = 740,000,000."
>>>>>>>>>
I agree with dickmilde (after long deliberation) that this is the case. I have read hundreds of 10-K's, but with this one (i.e. Elvis connection, etc.) I ignored the real data.
Rule #1 NEVER FALL IN LOVE WITH A STOCK.
Just fair warning for those of you who have been on this ride up with me.
There is also still easy opportunity for those of you who have just bought. At this moment in time, MJET is a pure speculation play. Play it for the swings that will come.
Monaco
Remember guys, I also mentioned that there may be a few more swings in this stock left before the announcement. Just beware they may announce completion and an effective reverse split in the same swipe, same day.
Not to say this is a bad company who is the potential aquirer. Antik has the same potential as TRLG and AEOS. But the trading of late has been pure speculation, and it will take time for it to stabilize. I can't say how many times I was bashed for writing my "head-up" email last week.
I will be watching for the right entry point, and perhaps add some to the 401k after the merger and related events are completed.
Monaco
Looks like Keating is at again with CYPC.
Monaco
Settle guys, everything is OK,
Tomorrow holds better things, always.
You entered this stock on what? (speculation) and some of us are doing ok. So the pullback will teach us all something, will it not? For some, they bailed. For others, they added.
We all need to start reading charts, doing our own DD, and certainly holding (your) own. If you are uneasy, sell.
FYI...CYPC, MMLC, WWCO are a list of other (shell) stocks out there. It's very tough to read between the lines guys, so make sure you do your DD.
Monaco
Double,sorry...EOM
Looks like this is the Los Angeles store for Antik, and all the other brands of jeans Paul Guez produces. Look at the last jean company: Elvis Presley Clothing Co.
http://www.newmart.net/SearchResult.asp?Type=ALL&String=&CompanyID=284&CategoryID=7
Monaco
Congrats on getting in Goose,
I realize that some are waiting for the offical announcement from management that it's a go. Actually this is probably how these morphed stocks bloom (via apprehension). Frankly, I feel it is a foregone conclusion. I see most obstacles handled by (being the two parties) which is to say; there are not many better merger companies (Keating) combined with the talent(Paul Guez)along with the association with (Sillerman / Elvis).
As far as dilution, I expect some. In my prior post where I drew up a potential scenario of sales and EPS numbers. I estimated that there would be at least 30 mil shares before the first 10-Q hits. I used very conservative numbers, and still came up with a share price of $9.00 with a PE in the 20's. Mere speculation, of course. I should add, that my wife owns several pairs of Antik Jeans, thus my passion in this particular stock, and it's success with my ability to pay for more. After all, they are only jeans right? Look at what another MJET poster brought to my attention:
True Religon TRLG just came out with earnings as I wrote this.
Also check AEOS American Eagle Outfitters...
>>>Take CKXE (SPEA) for example. EPE (aka Elvis) had worth before they left the gate. Name appeal. Antik has this too. To what degree is determined by the buyer. Do a simple search on Google of Antik Jeans and you will see this transcends just jeans, it's an enterprise consisting of many facets.
We are looking at clean canvas with Antik. Coupled with the fact that INNO is not Guez's company (his baby). He has interests in INNO (and selling his position out to fund his own enterprise, as we speak, look at the insider selling).
Beware, I am not trashing INNO, but merely comparing the two.
Speculation IS the stock market. We are all speculating on MJET. Do your own DD.
Monaco
LFMAO, Goose! Glad you got in...nice .40-60 run for you.
The main reason, I believe, for the runup is:
A: The potential merger
B: The fact that Paul Guez is involed (huge potential)
C: The float: my estimate is less than 4 million
D: The quality of the shell company (perfectly organized, imo)
E: Public knowledge of all of the above (via DD and, yes Trader's Nation)
F: No surprised from the 10KSB released today
G: Can I say "The Elvis Factor"?
Take it for what it's worth, with a 4 mil float and 3.6 million shares traded today, it is being flipped, no doubt. The MM's shook the tree real hard today in the .36 range, and people sold. Then they bought again. Such is life.
If you really want to see the footprint of a merger like this, go research SPEA. Go to www.shellstockreview and navigate the site to find "The anatomy of a merger" and look at what happens.
SPEA was a huge exception to the rule, mind you. It went from .10 to $26 in weeks. But it shows what can happen if the merging company and the shell have what it takes. The merging company has to have a product that will sell, and be profitable. The shell needs to handle things properly so that the existing shareholders (you and I) don't jump ship.
I have heard of mergers where the newly formed company totally rips the exisiting shareholder. Which is why I think Keating is one of the important factors here, and I encourage you to do some DD on Keating. Most importantly, I can't predict the future but, IMO I think this one has legs.
Good trading,
Monaco
Yes of course Icde, the merger has to take place. But usually a merger like this fails because the shell is unkempt; bad books, etc. But I have done some DD on Keating Reverse Merger Fund, and they run a pretty tight ship. Another reason is the buyer is not worthy; financially for example. Paul Guez is loaded, so no issue there.
Good Trading,
Monaco
Goose,
That paragraph was in the last 10-Q when Keating
Fund aquired MJET. The actual agreement with Antik will
be released when and if agreed upon. The below paragraphs are new as of today.
I believe the 3.8% they refer to below, is the percentage
of stock being trade out there right now. The float. Because
the balance of the 28mil OS is probably tied up in escrow.
If anyone can confirm this, please do.
"On March 24, 2005, the Company entered into a Letter of Intent to acquire Antik Denim, LLC, a California limited liability company ("Antik"). Antik is a designer of highly-detailed antiquated and vintage denim and related apparel with an Old West flair. Antik currently sells its products through showrooms located in New York and Los Angeles as well as fine retail stores located in Japan and the European Union. The Company was established in September 2004 and is headquartered in Commerce, California.
Under the transactions contemplated under the Letter of Intent, the Company will acquire all of the outstanding membership interests in Antik from Antik's existing members ("Antik Members"). In the exchange, the Company will issue shares of its common stock to Antik Members in such amount so that, immediately after giving effect to the acquisition, the Antik Members will own in the aggregate 95.8% of the Company's issued and outstanding shares of common stock on a fully diluted basis. After the payment of certain transaction related fees (including the issuance of the Company's common stock to certain finders and advisors), the current stockholders of the Company are expected to own approximately 3.8% of the issued and outstanding common stock after completion of the transaction with Antik.
Completion of the acquisition is subject to the negotiation and execution of a definitive acquisition agreement, the delivery of financial statements of Antik prepared in accordance with generally accepted accounting principles in the United States of America, and the approval by Antik's board and stockholders of the acquisition, a corporate name change, an increase in the Company's authorized common stock and a reverse stock split to be mutually determined. There can be no assurances that these conditions will be satisfied or that the acquisition will be completed."
The MJET shares you own are yours. They are shares of MJET not Intellijet. MJET was a shell company and is being reverse merged with Antik. Your MJET shares will probably be converted (once the name and ticker changes, which is normal) into whatever ticker they choose. DO NOT SELL YOUR SHARES if you want to participate in this climb.
Intellijet is history as a public company, the security that once used to be Intellijet IS NOW Antik Denim, LLC.
I agree the letter was very confusing.
Monaco
Goose,
Excellent find. It was not until I did a search of D&B for the owner of Antik Denim, LLC, did I find that Paul Guez was the owner. Your further DD of the Elvis connection confirms my suspicion. The way I read the Azteca production numbers is:
The facility of manufacture, is owned by Paul Guez. Azteca (with his daughter), and he share this (500k/month) capacity. I also read that this production facility was placed a new 1 million square foot building. I can't remember the date of this move at the moment, but will continue to post any DD I find.
What's important about this is: They manufacture and sell thier own goods, which will increase the net profit of every pair they sell. As far as the numbers, it looks like they have a distinct advantage being the actual manufacturer and the net profit will have to be assumed at this point.
Let's just assume they do 30mil in revs the first year. Let's also assume they increase the float to 30mil. Assume they have a 50% profit margin (gross) less 25% of that in operating expenses, etc.
30mil revs minus 50% equals 15mil less 25% operating cost leaves 11.25mil divided by 30mil shares equals .375 cents per share EARNINGS. With a PE of ZERO the stock is worth .375 with a conservative PE of 25 the stock is priced at 9.37 per share. I think these figures and float are reasonable assumtions.
Comments welcome.
Monaco
DD on Antik Jeans, LLC
Paul Guez (owner of Antik Jeans, LLC):
Paul Guez as you know was the founder of Sassoon Jeans
back in the 80's. He is also a major shareholder in INNO.
INNO chart:
http://finance.yahoo.com/q/bc?s=INNO&t=my
As you see from this chart, Notice the massive uptick
similar to the phase MJET is in now.
A link to INNO's annual report Feb 2005. Read about Paul Guez and his involvement with INNO.
http://biz.yahoo.com/e/050225/inno10-k.html
<<<<<<<<<
I found this link about a Elvis promotion in London in 2004. When I read the paragraph below I had visions of a SPEA like rise in MJET: (EPE is Elvis Presley Enterprises)
"EPE and its first master licensee will launch a line of clothing and apparel in 2005. The line, designed by Paul Guez, the founder of Sasson Jeans, will be geared toward young, contemporary men and women. EPE has given CBS, a unit of Viacom the green light for two Elvis specials next year, one of which is a biopic. It authorized Broadway producer Jonathan Pollard to do All Shook Up, a musical based on Elvis' music, next year. This past summer, EPE let Miller Brewing feature an Elvis cover from Rolling Stone magazine on millions of beer cans."
http://girlsguidetoelvis.com/elshowupinlo.html
Another link to another Elvis/EPE tie to Paul Guez:
http://www.memphissymphony.org/elvis.html
If I read this correctly, it looks like Paul Guez is the first major licensee of EPE (the former SPEA or CKXE).
Have you noticed Lisa Marie has been on Howard Stern and Oprah, etc. after a long absence from the public eye??
Interesting.
<<<<<<<<<<<<
This is a link mentioning Uzan International, but if you scroll down, it mentions another line of jeans Paul Guez had launched (partnership) and tells of the nunber of units being produced.
"Mr. Guez is currently launching hippie jeans, his Azteca jeans is producing 500,000 units per week. Roger was Vice President of Paul's original wildly successful foray into the jean market the indelible Sassoon Jean label."
500,000 units a week. Antik Jeans sell for around $250.00 a pair (do the math).
http://fasarchitects.tripod.com/
Another corroberating link:
http://www.apparelnews.net/Archive/051101/News/news.html
<<<<<<<<<<<<
More to come...
Monaco
Here is the Dunn & Bradstreet info on Antik Jeans, LLC
ANTIK DENIM, LLC
5804 E. Slauson Avenue
Los Angeles, CA 90040
D-U-N-S Number: 16-856-8868
This is a single location.
Telephone: 323 278-6668
Manager: PAUL GUEZ, MEMBER-MGR
Year started: 2004
Employs: 10
SIC: 7389
5136
5137
Line of business:
Apparel design commercial &
wholesale men's and women's sportwear
Special Events
10/18/2004
SELF REQUEST: This record was originally created on 10/18/04 at the request of Deborah Greaves, Attorney.
More DD to come..
Monaco
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