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.
And yes they are delaying bankruptcy, but will not necessarily go bankrupted.
When you rely on raising money quarter to quarter to survive instead of relying on your revenu, you are heading toward bankruptcy. Now does it mean you will inevitably go bankrupt? No, because while you are delaying, you can secure a better financial structure.
I can root for them to succeed while not being blind enough to not see that their financial troubles are far from over.
When you are watching your team play and they are behind by 20 points in the last quarter, you can see that their chances of winning are not good, but you still cheer for them.
Once again they are only delaying bankruptcy by a quarter or 2. They are going to need to raise at the very least $20 million to get their EV program off the ground (which is their principal catalyst). The $3 million they just raised (not cheap by the way) will only last 2 quarters at best according to their last financials http://finance.yahoo.com/q/is?s=slnn
They need a bigger (cheaper) investment. You need to understand that the price per share will not rise (considerably) as long as they just push their financial problems quarter to quarter. They need to really get their shit together in order to be able to allow some financial resources to the EV program and the Saleen Model S. Now the little money they raise go to interest payments, defaulting vendor payments and operating expenses.
I’m not saying they will be bankrupt, but this is not a good news. I’m routing for Saleen to succeed. I’m just not overly optimistic like most people around here.
Yes it helps thanks. I’m just trying to figure out a decent valuation that could help me configure an exit strategy in case it does take off. I’m at an average of $0.20 a share so i’m not too nervous, but I like to maximize my profit even if it has the potential to reach the 100s pct.
Thanks. I think they updated their website because I dont remember reading this when I bought a month or 2 ago:
As at November 30, 2013 the Company spent $54,855,712 on the ICP. Of that, $631,224 was spent during the nine months ended November 30, 2013 (February 28, 2013- $13,176,084). Included in amounts spent to date, $16,498,912 previously spent on long lead items are not included in the current budget. Total to complete the project net of cost spent is currently estimated to be US$118,310,674. This budget would be subject to change when construction recommences on the ICP.
http://www.formationmetals.com/s/IdahoCobaltProject.asp
I'm new to both investing in mines and penny stocks. I usually stick to market caps above $500m and with an established financial structure.
I know the company currently has no debt, but it will probably contract some to get everything in place. Assuming everything works out to their estimate of a annual average net cash flow of $34 million over a ten year mine life - Do you have any idea how high the valuation could go?
Any input would be appreciated.
Good to know we are not alone.
Maybe you guys can confirm, is it the first time we know exactly how much money they need to start extracting in idaho?
The bloomberg article was the first time I heard of $120m. Do we know if they have any prospect in financing?
Is it just me or Sven Etzelsberger isn't listed on Saleen's website anymore? - http://www.saleenautomotive.com/executives.html I could swear he was right there a week or two ago.
According to his LinkedIn he is still VP of Engineering at Saleen http://www.linkedin.com/pub/sven-etzelsberger/15/40a/85b
Actually I wouldn't mind if he wasn't working there anymore. The Fisker Karma was a beautifully design car, but done with extremely poor egineering. The car was falling apart.
The difference is that no one wanted to put money in Tesla because it was 2008 and everyone was affraid to invest. Especially in the auto industry.
The economy isn't the same right now. Saleen can't find funding for another reason. What is that reason?
it looks like it's only you and I around here anyway.
Formation Metals need to raise $120 million to make the cobalt mine happen - confirmed by a spokeman
http://www.bloomberg.com/news/2014-03-28/tesla-to-use-north-american-material-amid-pollution-worry.html
The Idaho project is mentioned in relation to Tesla in this Bloomberg article http://www.bloomberg.com/news/2014-03-28/tesla-to-use-north-american-material-amid-pollution-worry.html
I dont know about AutoInvestor, but as for myself, I explained my intentions on this board numerous times and you don't have to take my words for it. I backed everyone of my claims with linked sources.
As far as "bottoming" goes, you have to realize that the bottom might very well be 0. The liabilities offset the assets by an order of magnitude. We should know by monday what the bottom will be.
FULL DISCLOSURE: I don't currently have a position on SLNN, but may initiate a long position in the next week.
I didn’t think the company was going to let the share slide to less than 0.25 – I thought they’d have introduce a new financing plan by now. We have to see something by the end of the week. The deadline is Monday. Otherwise they run out of money.
**Edit, sorry this msg wasn't meant as a reply**
If you are referring to me, yes I’m still watching from the sidelines. The narrative hasn’t changed. They are still running out of money.
I never said that they are bankrupted. Frankly I’ve never said that they are going to be bankrupt. Steve Saleen himself said it in the last financial. If they don’t raise enough money by next week (31-March-2014).
http://www.saleenautomotive.com/investors.html - look at the quarterly report – going concerns
With this said, I’m confident they will be able to raise money, but I want to know at which cost before pulling the trigger. So please don’t put words in my mouth. I’m just trying to help.
I'm glad to see you realized it was outdated, but its not necessarily the case for everyone.
Wow. Now you are using articles that I wrote myself to prove your point.
Right with you. Until they come up with a decent plan the finance their EV, I'm going to stay on the sideline.
Wow. My comment was deleted because I called out TOP1 for spreading outdated and confusing information.
He posted financials for the first quarter of 2013 and refer to the company as growing. I posted the last quarter available (Q4 2013) and I get deleted?
Here it is again:
Look at the last 10-Q http://www.saleenautomotive.com/investors.html
Their revenue decreased by 40% year over year from Q4 2012 to Q4 2013 (the last quarter reported).
TOP1 posted the last quarter that supported a image of growth, while the most recent information support a decrease in revenue.
I’m just trying to protect you from bad information. My information comes from Saleen’s last 10-Q.
It's 4 companies in the RED. The more the better doesn't apply to this. If the 4 companies are knee deep in debt and they are, it shit...
What kind of logic you guys have here!!!
You should thank that guy.
At least he is posting valid information. Not like most people around here like TOP1 who post a 9 months hold article about the valuation of the company from a penny stock pusher none the less with no actual explaination on the valuation at $1. I mean the article is wothless to start with and at this point (9 months later) it's just bullshit.
Personally I'm here because I like Saleen S7 and their mods. I invested in Tesla a while back and like the prospect of Steve Saleen working with them and making an EV of its own with AC Propulsion, but the company is just financially irresponsible right now and I want to now why people here are so bullish on this.
This is what is good about Saleen: http://blacksheepplanet.com/saleen-following-tesla-motors/
Everything else and on paper they are worthless (literally, it's not jsut an expression).
I'm trying. Look at the original post. I wanted arguments about why you guys are bullish.
To answer your question, they called it a merger, but actually it's W270 who acquired both Saleen Automotive and SMS (the company Steve Saleen started after resigning from the board of Saleen in 2007).
I don't want to be a dick, but you shouldn't invest in a company if you don't know they have merged in the last year.
http://finance.yahoo.com/news/w270-inc-completes-merger-saleen-135902084.html
That is not an argument. Saleen went public as a result of a merger and they only cleared about $3m with the offering. That is not nearly enough to cover operation expenses and the cost of R&D for a new EV.
Yes I should have post the link:
Saleen automotive FORM 424B3 02/21/14
You'll find the quote on page 8 under "Going Concern" and a lot of other red flags.
The only positive sign I saw is that a couple of close advisors (attorneys and accountants) that participated in the restructuring accepted to differ payments in exchange for stocks, but these stocks are Super-Voting shares.
I think they would need to raise close to $20m just to secure their debt and start to take their EV program off the ground
I don't understand how you guys can be so optimistic on SLNN. The company is defaulting on tons of payements and they said the following on their last filling with the SEC:
"However, additional funding will be needed to continue operations through March 31, 2014, which the Company currently anticipates raising through the consummation of additional Stock Subscriptions. In addition, management will need and is currently seeking additional funds, primarily through the issuance of debt or equity securities for cash to operate the Company’s business beyond March 31, 2014. No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, it may contain undue restrictions on its operations, in the case of debt financing or cause substantial dilution for its stockholders, in case or equity financing."
The important part is "Even if the Company is able to obtain additional financing, it may contain undue restrictions on its operations, in the case of debt financing or cause substantial dilution for its stockholders, in case or equity financing."
Can you guys explain why you are so optimistic? And please don't tell me it's because of the movie or the fancy press releases.