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I've stated many times before the reason as to why I'm here.: SLNN is subject to a pump and dump scam orchestrated by David Weiner and his associates. They have a modus operandi that has become clear through AHRO, PHOT, DIGP and now SLNN.
They buy a publicly traded shell company. They offer to a private company in financial distress a lump sum in exchange for a reverse merger with their shell with an advantageous conversion rate for them. Once the conversion is complete, they are clear to offer the shares to the public. A subsequent "pump" is engaged, followed by consistant "dumping" of shares.
AHRO was the first to fall. It filled for bankruptcy last month. PHOT was halted by the SEC just a few days before Saleen's 416 party at Weiner's apartment. They all show similar signs of the scheme.
SLNN is no different. Signs of wash trading and direct stock pumping.
Anyone interested can read more about Weiner and his associates here: http://www.bloomberg.com/news/articles/2014-06-18/legal-pot-sets-off-penny-stock-frenzy
and here: http://nypost.com/2014/12/12/sec-weed-wackers-sparked-growlife-fears/
A reminder that David Weiner bought W270 which was the shell used for the reverse-merger with Saleen. He holds and sold shares of SLNN through his investment fund W-Net.
But of course labor costs are included in COGS! This is always the case.
Also, of course GAAP are guidelines, very clear guidelines stating "cost of goods sold is the accumulated total of all costs used to create a product or service, which has been sold."
Any way you look at it, Saleen lost money on every car sold last reported quarter. Inventory has nothing to do with it.
This is a misconception. The price didn't go up today at all. Most of the volume traded at $0.0145, 220,000 shares traded at or below $0.0145. Only 60,000 shares traded at $0.018 just before closing. That's only $1,080.
I want to clarify a few things once more:
We are talking about opinions weighting the good and the bad on Saleen. Fundamentally, nothing Saleen is doing is good since everything they are doing is in order to further the pump and dump scheme. A scheme which has been clear from their ludicrous $50 million valuation in 2013 that came out of nowhere and the subsequent fall of the stock price due to heavy dumping for over a year now.
But put this aside for a moment. No one would have the opportunity to be biased toward Saleen than their auditors. Saleen is paying their auditors. If Saleen goes bankrupt, these payments will stop. Yet their auditors are very critical of Saleen's financial situation and they go as far as saying that they will be bankrupt if they haven't raised more fund by March 31 2015.
Now it has been stated that they might have raised fund in the last quarter and didn't disclosed it because it was non-dilutive. This is ridiculous since it would be a clear violation of SEC rules requiring companies to "report when they’ve entered into a financing agreement not made in the ordinary course of business." Saleen would get sanctioned by the SEC for doing so.
Companies have 4 business days to report any new source of fundings generated outside of operations. If Saleen closed new financing last minute in March, they would have until Tuesday to report.
If they don't report anything by Tuesday, they have run out of money.
You want a link? You want proof?
Here it is for anyone to see: http://www.saleenautomotive.com/investors.html
Just look at the last 10Q.
The last funding they got was in January. They got $500k. But it wasn't enough. Just read what Saleen's auditors had to say about it.
F-8 in the last 10Q:
Are we claiming a recovery now? The stock gained 10% on 14,000 shares. That's $200 worth of the stock. The stock lost 50% on millions of shares since the black label unveiling. Also not forgetting it went from $1.00 to $0.012.
Let's not call 14,000 shares a recovery.
Cherry picking financial items that make SLNN's looks better does no good to anyone.
Putting it simply, SLNN took everything from shareholders in 2014.
They started the year with $1.1 million in total assets and they ended the year with $1.3 million in assets.
Assets basically remained unchanged through out the year.
They started the year with $9.2 million in total liabilities and they ended the year with $8.8 million in total liabilities.
Liabilities basically remained unchanged through out the year.
If both assets and liabilities basically remained unchanged during the year 2014, then how come the stock lost 95% of its value during the same period?
Simple. Here's what changed in Saleen's financial structure in 2014:
Saleen started the year with 100 million shares outstanding and they ended the year with 167 million shares outstanding.
This is the only important thing. And the worst is to come, in the last 10Q, over 150 million new shares are set to be converted and this number is poised to go up with the lastest change of the conversion rate.
This is not my opinion. These are facts from Saleen's reported financial reports.
It looks like Weiner et al are leaving SLNN behind and pumping DIGP. I'd be surprised if Saleen doesn't announce another round of toxic founding. Gladly surprised, bur surprise nonetheless.
Let’s analyze these hypotheses:
Ehhh and how what you just said make my statement "false"?
Does anyone knows why they didn't want to open the hood at the unveiling event?
You keep saying that they "ran it into the ground", but the truth of the matter is, Saleen Inc. was in better shape when it liquidated its assets than Saleen Automotive is now with Steve at its helm for almost 7 years now.
Some people seem to not comprehend how dire is the financial situation at Saleen.
It looks like the volume is taking off.. Oh ... no wait. The stock lost another 15% because the shares were dumped.
Dump? wait a minute.
Saleen just generated tons of press (pump) and now the stock is getting dump.
Might that be a pump and dump?
- Saleen unveiled a new model
- New model generates press
- Press brings new "investors" to SLNN
- Volume 4x the daily average - more shares are traded in 1 day than in the past month
- yet the price per share still go down (15%) because apparently people are willing to dump at an all time low. Who are these people?
Some would say that Saleen's pennystock pump and dump scam is pathetic, but to each their own I guess...
Of course they won't use the actual word. It doesn't change the facts.
Well this is a lie. It is clearly mention in Saleen's going concern that Saleen will stop its operation without more financing. That's bankruptcy.
There's nothing to worry with Tesla since they have $2 billion in cash reserve which covers 10 years of last year burn rate. Saleen on the other hand has 2 days worth of cash reserve at their burn rate...
Read both in detail, you'll see that Tesla's going concern and Saleen's are completely different. In Tesla's they never mention possible end of operation (bankruptcy), in Saleen's it is repeated..
Isn't that what I just said?
ON their 10Q yes, but on their 10K most company uses a going concern section to share risk factors for investors.
Anyway there's no doubt that Saleen's going concern section is way more concerning than most and does indeed scream "bankrupt".
Well people are pretty pumped up for the unveiling tomorrow. 5,000 shares traded. Can this stock be anymore dead.
Maybe you'll prefer autonews.com as a source. They pretty much say that Saleen ans his associates ripped off a bunch of dealerships of $300,000 each.
http://www.autonews.com/article/20080630/GLOBAL03/306309998/chinese-automaker-cuts-ties-to-chamco
If it was an unimportant reason they would have said it or just said "for personal reasons", but they didn't. They didn't because making the reason public would have been harmful.
The price decrease seems to not exist for some people. It's like every new low is a brand new day for them. If it reall was they would be doubling down which apparently they are not doing as shown by the ridiculously low volumes.
Somehow going from $0.50 to $0.02 is not an indicator of going to $0.000001. To me it certainly seems like the right direction.
No reasons were provided for the departure of the general counsel so of course we have to make some deductions. What is your opinion then? Why did he leave? And most importantly why didn't they provide a reason even if it would only be a very generic one like: for personal reason.
Oh I can certainly believe that: http://www.bbb.org/central-california-inland-empire/business-reviews/auto-services/saleen-automotive-in-corona-ca-89063801/complaints
these 3 complaints from last quarter are very believable..
If you don't believe them, then try to call Saleen. They simply don't answer the phone 90% of the time.
A link to what? I'm not following at all here...
If the day to day calls from lenders botther him so much he would have quit months ago. On BBB and Yelp there are complaints mentioning him directly going back in 2013 with people saying that he was avoiding calls in order not to pay back invoice.
Either he doesn't mind or he can't get out.
What post?
There's a power struggle internally and Steve seems to be losing. I don't know if Fiene is going to be the next to go though. I think he is one of the few still getting paid. My money is on a complete dissolution of the board so that Weiner and Knoll can place people to represent their interest.
What does it matter if it's at $0.02 or $0.001? It's the same thing.
Imagine someone who came in SLNN at $0.30 when the pump was at full force. Imagine they bought 10,000 shares. That's a $3,000 investment.
Now fast forward to now a year latter. Why would this person care if it's at $0.02 or $0.001? His $3,000 invesment is now worth $200. $200 or $0. Not a big difference at this point.
Saleen is not about investment opportunities anymore. It already has been established that Saleen was and remains a poor investment. Now it's about what happens of the fraudsters that caused this.
If tomorrow morning, 2 persons were to trade 12,000 shares of SLNN at $0.50, would you think that SLNN would be worth $0.50?
Payroll taxes: Again, Who cares about 9 months ago? Why do you bring that up now? The new information we have NOW is that Saleen is not paying it's payroll taxes due last quarter. The new information is that it went up. No one is trading on 3 months old information.
Look at the volumes! Chart below. The stock went up from $.015 on less than 600k shares. that's less than $12,000 in 3 weeks. this is a rounding error. This is a joke. You might as well erase the last 3 weeks of trading on SLNN and no one would see a difference.
Also, in what world payroll taxes went down during the last quarter? During the last reported period Saleen added $51,350 more payroll taxes owed.
September 30, 2014 they entered the quarter with $583,900 due and they existed December 31, 2014 with $635,250 due.
If they go back to pumping, it will not be solely based on PR trying to get unsuspecting investors to buy in. They will get back to matched orders to artificially boost the last sale price. If they manage to maintain it higher for a while, they will try to dump on investors in the red looking to average down. Believe it or not, there are still people "unsuspecting enough" to do that.
Like you said, they are burning $800k a month. They don't have any money now, so either way, they will need to raise more soon to cover that. I wouldn't be surprise if they manage to close someone, but Steve might have to go though. I don't think anyone will be willing to put any significant amount at this point with his track record.
Jonathan Michaels resigned from the board of SLNN. Jonathan Michaels is also SLNN's general counsel. We don't know if he is also quitting this position. If he is, this would be big considering all of the lawsuit Saleen's is involved in and amid the SEC investigation around Saleen and the large debt holders.
Anyway, it's the second board member to resigned in a few months and the last one wasn't replaced. Now it's just Steve, the guy from Crystal Research and Joe Amato who doesn't seem to be involved or owns much shares.
If you get to talk to Steve, you might want to ask him what he plans to do with the convertible notes making him lose his majority ownership in the company.
if his answer is nothing, then ask him if he has any insight on what the new majority holders want to do with the company.
Anyway I have my doubts:
Post
No. The updated information are in red. His ownership would go from 71% to 29% with the new conversion rate.
As for the amount owed to Europa International, again we cannont know that for sure, but as December 31, 2014, Saleen reported still owing $4 million in convertible notes and according to the previous share structure, Europa probably owns half of that debt.
No. Steve hasn't put any money in this company for a while now so his share ownership percentage has only gone down with dilution and to a monority with the new conversion rate on the senior notes.
Like I said on this chart: https://i.imgur.com/GEJ38yy.png this is on an estimated 278 million shares float, but they are a lot of smaller notes that will also be converted. The group of investors also owns some of these notes. Total it will be closer to 350 million shares if it stays at $0.02.