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The stock is at zero! $0.007 that's zero. It certainly closer to 0 than to $0.30, fromm which it was never suppose to go below.
Also I remember assertions about "2015 begin great for SLNN". Well so far 2015 is a 75% drop for Saleen.
Any value investing is worthless without a proper valuation model. In order to have a valuation model, you need to project revenue.
With any revenue projection, Saleen cannont be cash flow positive from operation without at least $12 million in revenue.
This is what has been asserted before, that Saleen doesn't need to raise more money or issue more debt because they are cash flow positive from operation. Saying this is the same as saying they will report $12 million in revenue.
How much of an increase in revenue? $3 million? $5 million$
because anything short of 12$ million Saleen will lose money. So predicting an increase in revenue is one thing, predicting that an increase in revenue will turn Saleen to cash flow positive from operation is another thing.
Trading at $0.007 right now. Is there enough ZEROS to call this zero?
No at $0.02 that’s just the $2 million in convertible notes held by Weiner and associates.
The really toxic debt is held by about half a dozen companies and conversion started last month, consequently the stock went sup-penny for the first time, and it goes on all through the summer.
KMB Worldwide, Inc.
LG Capital Funding, LLC.
JSJ Investments Inc.
Rock Capital, LLC.
Vista Capital Investments, LLC
Coventry Enterprises, LLC.
Typenex Co-Investment, LLC
JMJ Financial
There’s no way to know how many shares until we know the stock price at the day of conversion. Most of the notes have a 40% discount on the lowest trading day out of the past 20 at the time of conversion.
For example the most recent note to have converted is JSJ Investments’ first note (they also have a second). They probably got around 7 million shares at about $0.0075. they are likely the ones selling at this sub-penny level since they would be the only ones making money from it.
What is important is that these kind of lenders going for 40 to 50% discount on the lowest trading really don’t care about the price of the stock nor the future of the company. As soon as their shares convert they are making money. All they need is being able to unload these shares.
There’s also the toxic notes held by KBM:
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003040/form8k.htm
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003160/form8k.htm
https://www.sec.gov/Archives/edgar/data/1528098/000149315214003262/form8k.htm
The guys behind KBM don’t have a great past:
You read the filings and you didn't see anything wrong? What about the millions of shares coming this summer?
Exactly. Someone can't praise Saleen for building the S7 then blame the investment firm when the car breaks.
If it's really HPA's fault that the S7 was a lemon, then they should also get the credit for making the S7 right? Not Saleen right?
It's one way or the other. Can't have it both ways.
$0.0085 LOL! Is that close to 0 enough?
Again. I'm asking for an explanation as to why. It looks like the author of the article on Saleen said the truth while Saleen and their representative lied. I'd like to see anyone proved otherwise.
What is not right in these comment regardless of where the author is from:
You keep saying that the author of the article about Saleen doesn't know what he is talking about. Yet you can't disprove anything he said. I would very much like to no how he is incorrect to further my OWN knowledge about Saleen.
You say that yet you can't disprove anything he said. Glorious.
Everything in this article about Saleen is true. I welcome every able to prove otherwise:
The quoted comment especially mentions that the PRICE doesn't include the performance upgrades because they couldn't be visually confirmed. The quoted comment is out of context and clearly was about the price mentioned by the Saleen representative.
If the car would indeed have a cut gear, which the article simply says couldn't be confirmed (not that it wasn't there or that it was), then the price discrepancy would be even greater and making the author's point even more valid.
I don’t see how someone’s occupation can affect the validity of the claims. Especially when all the sources are clearly disclosed. Like in this case.
All evidence point toward the fact that Saleen lied about a lot of information regarding the “Saleen Tesla”. Including being "fully in partnership with Tesla". Something they themselves "corrected" just a few days later.
Anyone can contact Saleen's Pr and ask them if this is true: pr@saleen.com
As for the warranty, no one is claiming you can void a warranty without cause, but clearly Tesla can claim the unauthorized modifications affected the parts claimed. Which would be very likely since the Model S is software heavy. Changing any data intput can affect the car's performances.
Here’s an interesting entry. If this is true, shouldn’t have Saleen needed to disclose layoffs? Recent on site reports confirm there’s never more than 20 cars in Saleen’s parking lot. Last time Saleen reported an headcount they said 30.
These are ALL statistics for the Mercedes NOT THE SALEEN TESLA. They can't claim the 0 t 60 is better than the SLR just from one race.
What is crazier is that was 8 months ago and they still haven't released any performance statistics. Like none.
When heavy volume results in a decrease in stock price, it is often referred to as a sell-off.But the actual transaction is clearly 1 share sold for 1 share purchased. Saying that 2 shares were both for each share sold is undeniably inaccurate. Today's spread on the level 2 wasn't pretty for SLNN's investors as usual.
Again. This is wrong. The actual selling and buying on SLNN was exactly the same amount as it is require based on basic arithmetic.
If we are talking about the spread then that's another thing.
What? No. Every share that was purchased today was also sold! Like the exact same amount. Like every single day. If someone purchases a share someone else sells that share. SLNN is no different.
It simply doesn't work like that. If Saleen would have paid back a convertible note it wouldn't have made the O/S count go down. It simply wouldn't have made it go up. They are not taking away shares from the market, they are simply not adding any. Far from being the same thing.
The only way to go down is a company buyback which would have been a material event that would have needed a disclosure.
Again, best available info is 167 million from last 10Q December 2014.
Always work with best available information. Currently, best available information is 167 million from last 10Q. Next best will be in a few weeks from the 10K.
DD? why would anyone look at June 2014 numbers when we have the December 2014 number?
167 million shares outstanding as of December 2014. Not 142 million.
No one is arguing that! What everybody looking at the financials are clearly seeing is that even if the revenue increase 3 folds year over year(which they won't of course), they would still be losing over a million.
No way around this.
Saleen's only way out of this will be to bring a deal to the BOD with an investor group to bring the company private by settling debt.
This is what they will do, if they can manage to...
Sure months later. SO what... Saleen made 2 body kits on 2 Tesla in 9 months. They must be rolling in money. What are they going to report next month? $5.5 million as a minimum is the consensus I recall?
None and that’s not even the most obvious evidence leading us to believe these notes are meant to be converted. If Saleen was planning on paying these notes cash, they wouldn’t have agreed to 135% and 150% premiums. These notes are designed to be converted at maturity. It's obvous and it is very clearly what happened with JSJ’s notes since no one else would be willing to sell millions of SLNN shares sub-penny.
It’s not KBM. KBM will get their shares in a few weeks and start unloading then. That’s when the real pain will start. Now it looks like JSJ are unloading.
This recent drop matches the JSJ’s first note being converted last week. See below. Right now JSJ is the only player making money on selling SLNN below a penny. Not even Weiner and friends are making money at these levels. They must have got 7 million shares at $0.0075. So of course they are looking to unload that before the KBM notes mature and start putting even more pressure on the stock.
This is painfully inaccurate:
Anyone looking at the volumes from that period would realize that making money would have been extremely difficult.
Any way you look at SLNN, it is and was a bad investment. Not a 20% loss. Not a 30% loss. Not even a 50% loss.
A 99% loss. I remember hearing that $0.30 was the bottom. While today most of the volume traded sub-penny.
Based on what? They are burning through over $1 million a quarter. At this rate they will need to raise money again by the end of the year. They have a dubious share structure with preferred shares ready to be converted at any time.
Unless proven otherwise, they look like just any other pot stock out there looking to sell hype. Not to mention that it's brought to you by the same people that brought you PHOT and SLNN.
Well now it's 1.6 million shares that traded sub-penny. SLNN closed at a new all time low again.
This would assume that the price goes down because of lack of revenue, but it's not the case. The price goes down because of the millions of shares converted from toxic notes in the hands of too many different parties looking to dump.
SLNN a sub-penny stock. About 800,000 shares traded at $0.009 today. That's a new all time low for SLNN.
Again, I didn't say otherwise. Their revenue will likely go up quarter to quarter next report. I have never said otherwise. Although it is a fact that that their revenue went down every quarter for the last 4.
And even if their revenue go up next quarter, no one was able to explain how they could make money even if they sell $5.5 million (which they won't sell, I predict 2 or 3 million).
I quite clearly stated "3 versions of the mustang". The word version was taken out of this quote:
Alright. As most retail investors I read/watch CNBC for entertainment purposes, certainly not for stock advice, but this time it hilariously delivered on both since I thought immediately of SLNN.
Five ways to spot a dead company walking
http://www.cnbc.com/id/102596821
1) Declining revenues and mounting debt
Dead on for SLNN:
Revenues have been declining every quarter for the last 4 quarters.
Liabilities have been going up every quarter for the past 3 quarters, after having a ton of debt converted 4 quarters ago.
2) Overexpansion
Again dead on for SLNN with spreading all the resources between Challenger, Mustang , Model S, Camaro. Not to forget 3 versions of the mustang. Even their own fans beg them to focus on Mustangs.
3) Improbable new revenue-generation schemes
Again and again dead on. Their own investor presentation taunts "Multiple Revenue Stream". They go as far as mentioning 8 different revenue streams all more improbable than the other.
4) Corporate bonds with ballooning yields-to-maturity
Now it becomes scary familiar to SLNN. They even mention anything higher than 20% interest is a big red flag. Saleen has notes with over 22%.
5) A sunsetting industry
Car tuners go bankrupt every other day. It's well known.
I thought this was pretty funny.
Apparently not. Looking at the charts gives us a completely different story.
Again, it doesn't work like that.
Just because TSLA's share price is higher than SLNN, it doesn't mean TSLA is more overpriced than SLNN. Because you get more shares for the same price doesn't mean you get more value. It doesn't work like that.
SLNN has negative shareholder equity why TSLA has $900 million in shareholder equity. Meaning that Tesla's book value to share price is infinitely better than SLNN's since SLNN has a $9 million shareholder equity DEFICIT.
It has been stated before that somehow Steve Saleen is still a majority owner of SLNN.
This is currently not true and it will be less and less true everyday from now on.
Steve Saleen wasn't issued any more shares as disclosed by SLNN since the S1.
Shares outstanding last reported earnings were 167,962,443.
82,333,375/167,962,443*100 = 49%
Steve Saleen doesn't own a majority of SLNN outstanding shares anymore and his stake will be further diluted very soon with the KBM notes coming to maturity.
I just wanted to clear this out.