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Please share your findings?
Was it the solar field in construction that you saw?
My account shows my GCHI as acquired 9/23/14. That is actually good since if they do trade (big if) it will be long term holding period reported to the IRS.
All else being equal, the difference between the tax on short term and long term gain is better than the return one could reasonably expect from whatever they would have invested in with the proceeds from selling their GCHI stock long ago. I don't know about you guys, but I didn't assign any of my WNTR basis to GCHI, so every penny I would get from the sale is taxable gain.
Anyway, I personally do not want to see GCHI trade at all until that solar field (if there really is one) is generating revenue AND we get a cash dividend from the income (if that is a promise that Frank will keep). We will get a lot more for the stock if it has even one recent cash dividend in its history.
If we believe the financial statements to be remotely accurate, they are fantastic for this market price. Last quarter the net income was $76,000 which if projected for the whole year that would be $304,000 which is more than the current market cap. In other words, if the company stopped trying to do new fancy things and just distributed the net income as cash dividends, the dividend yield would be over 100%. If they just started issuing these dividends, the share price would immediately increase ten fold such that the dividend yield would be more like 10%.
The bulk of that net income is from interest income (you really should look at gross profit, that is gross receipts after cost of goods sold, rather than gross receipts when determining what makes up the net income). I don't know who is paying that interest, but this is what an auditor would consider "low audit risk item" in that this is not something that people would normally fudge as opposed to an increase in FMV or claiming income for work in progress. The company will have a copy of the agreement of the other party to pay said interest and conditions for principle to be repaid.
The valuation of assets on the balance sheet are more likely to be kind of screwy. They should be recording their patents at the lower of cost or FMV but who knows if the company got hoodwinked into paying good money for crap. Personally I think that aspect of this company is just gambling. But that is the purpose of having a diversified holdings company. You have some aspects that may explode into something huge or just die, and you have some stuff that provides some stability, like whatever bond that is that is making sure there is plenty of cash to pay Frank a salary while still having net income even if every gamble the company makes fails.
So if you want to know if the financials are good, ask frank what is the driver for the interest income. If it is a related party, then that sucks. If it is a bond type note, then that is great.
It is strange indeed. Buddies shorting the stock would be an explanation, but that is too easy to find out and thus risky.
In a non-pink sheet company the only way to effectively destroy the share price for long is to do real damage to the company's bottom line. Several unfulfilled promises can destroy the share price in a pink sheet company even if there actually is net income (especially if you have people who bash the stock on boards such as this). This could be an elaborate setup for Frank and his buddies to have almost complete ownership of the company cheap where the company eventually buys back the stock much cheaper than the $.01 a share buyback he promised. Then they can start declaring dividends of the net income and after that happens the company can sell the shares on the market (preferably a new one like the Frankfurt exchange) for a mint and then proceed to destroy the market price again and start over.
This is one possible explanation that makes sense to me. Personally, if I did not believe I would go to hell for it, I would try this if I were in his position. He won't go to jail for it like he would if all the financial statements were total BS. Not something to bet the farm on, but I think worth throwing an amount you won't really notice missing at.
What is the significance of that number? Is the company and/or officers (or parties related to officers) allowed to make trades in that volume without disclosure earlier than they otherwise would? Were they buy offers at that particular volume?
If that is the case and they were buys, then that is a good sign that the tender offer is legitimate. If the company can get away with buying 999,999 at a time at this market rate rather than what the tender offer is set at, that would save the company tons of money and those left with shares would have their book value per share go through the roof.
What cost basis do you intend to write off with your GCHI shares? Did you reallocate some of your cost basis in WNTR to GCHI? Or did you report a dividend of $60k in 2014 and saying that is your cost basis in GCHI?
If you didn't do either of those things there is no tax benefit in "writing off" you GCHI shares. Your cost basis in GCHI is zero, so you have no loss.
It is still pretty easy to do the tender offer via email, so I don't think anyone who has a big stake who really wants to tender will fail to do so. The issues I see preventing the whole 2 billion shares tendered is that of the 2.5 billion shares outstanding my guess is that about half a billion shares are probably in the hands of the directors who will not be participating. So everyone else will need to tender all of their shares to make that happen. Anyone who sees this as a true vote of confidence on behalf of the directors will probably not tender their shares (at least not all of them) for as little as the company will be willing to pay for them.
Since the company set aside $2.4 million for the auction and uplisting expenses, I figure the company wants to try and pay $.001 a share for the 2 billion shares. Considering the hundreds of millions of shares that were purchased for $.0006 and $.0007 right after the PR I think the company will be able to get quite a huge chunk for $.001 (which the company can afford with the money borrowed for this purpose) but I doubt the whole 2 billion.
Just my opinion.
Brilliant scheme Frank is playing out.
Frank and the other directors are trying to effectively get back all ownership of the company without having to put in another dime. If the company succeeds in buying back the whole one billion shares (which won't happen, I will at least keep several million), what is left I think is not much more what Frank and the other directors hold.
Frank probably either reads these boards or is frequently contacted by those who do so he knew that there were many people grumbling about this stock and was hoping the stock would drop to .0001. He was throwing just enough good news as a CYA move but not enough follow up to shut down all the bashers. If you take all the things Frank said at face value, there would be no legal basis in claiming he was torpedoing the stock in order to have the company buyback the shares cheap.
If the buyback mostly succeeds and the average price the company pays for the stock is 10 times the current PPS, that would only cost the company $6 million. This would not have been possible eight months ago when the stock price was .005 already. A lot of people holding now have averaged down or came in low and will be perfectly happy to bail after quadrupling or so their money at .002 so the company may even be able to pay some stockholders .01 and still do most of the buyback for a few million dollars.
We may find out later about some sale of a patent which is right now almost finalized covers that $6 million that the company may have borrowed for the buyback.
And if the company does not get listed to a major exchange in the next few months, Frank can start the cycle all over and have the company sell shares, buy assets with the proceeds, let the stock tank again, buy the shares back cheap as soon as an asset sale is pending and can borrow money that it pays back after the asset sale.
So I want to thank all the bashers for making this possible. I imagine the hardest bashers have been actually loading up. I hope to see you bashing again if the company sells the shares back to the public in a few months!
I think you are right about GCHI shares being a penny stock if it were available for the WNTR holders to sell right away. At the least it would have gone down 50% because those who bought WNTR right before the divvy date and sold after cutoff would have doubled their money and it is hard to resist massive profit taking when it happens so fast.
If GCHI declares a cash dividend before the divvy shares are unrestricted, that would do wonders for the stock!
Another reason that I think holding off the trading of the stock until march would help the shares is that the people holding the divvy stocks will feel (rightfully) like they have invested more because the money was tied up longer. For those that put $10,000 into the stock in mid June and ended up with 20,000 shares of GCHI they would have been happy to even get $.25 per share if they got it within a few months. With it being nine months however that $.25 would not look as great.
I don't think GCHI will trade anything like WNTR does because the company is a lot less speculative, that is, it owns companies that are actually doing something you know will make money given the way things have been going politically in the US regarding marijuana. It is much closer to selling a necessary commodity, i.e., more safe, more boring, and more likely to have a small dividend yield. Anything technology based can make boatloads of money, but can just as easily amount to nothing.
They effectively had given a ex-dividend date. They had said the dividend was payable 11/21 to shareholders on record as of 10/31. The ex-dividend date by definition is 2 business days prior to the shareholder on record date. If you bought more shares on or after 10/29 you will not be a dividend on those additional shares.
I understand that. Your post suggested that they will be a dividend from WNTR after Telemedcare. They would be a dividend to owners of GCHI, not WNTR.
E3 and Pamilco was already in the GCHI dividend.
These dividends are non-taxable events since it is a spin-off. When you sell the I-texts (this goes for GCHI as well) stock it is a capital gain. So you need to have a holding period of at least a year to have the qualified dividend/long term capital gain rate. To properly account for the basis of these spin-offs is actually kind of a pain (and honestly is not black and white so you have wiggle room) and I am sure the brokerage firms will mess it up.
Good point. That is why the volume is not very high today with people dumping.
Yeah, I learned the hard way last divvy. I thought I was getting a deal too. The price dropped from .006 to .004.
I hate to break it to you guys, but I had purchased a bunch more WNTR on June 26th which was 2 business days before the shareholder on record GCHI divvy date (June 30th). I did not get my divvy for those extra shares purchased...so I think people buying more today are actually going to be very upset in a few months when they hear other people got their divvy and they did not.
And more math to add to that. With the lowball number of $60,000,000 revenue for I-texts, lets further lowball and say the dividend we get is half of wntr's holding in I-texts. That would mean 10% of the above $60 million would be earnings for those who get the dividend. Lets say someone was able to purchase all of wntr at current market cap. That means he would pay $2 million and just on the I-texts divvy alone would make $6 million in the first year!
Say we adjust the wntr price to get a reasonable p/e for I-texts of say 10 (instead of 1/3 as above). That means that if wntr was priced 30 times the current price it would be a good deal just for the I-texts divvy. So in other words, if you pay any less than 4 cents a share of wntr before the dividend date, you did not get hosed assuming the scenario Supervisor placed.
Works for me. Gives me more time to invest more of my paycheck into this before it spikes in late Oct.
I am so happy about this dip! Up to 10 million shares now baby! The day before the i-texts dividend this stock will be close to a penny I bet.
As I understand it, WNTR still has some ownership in GCHI, so yes, we are in the MJ industry as well.
Anybody here get their GCHI shares yet?
You mean after June right?
Nice. I guess you have BMAK to thank. Earlier this year I bought a bunch of another penny stock at 52 week bottom. I was kicking myself so hard for flipping it a week later. If I waited until the price stabilized a few months later to sell I would have made $50K more. Still was happy about the flip though, I knew the stock had potential to run but I was hoping it would tank again first...I got greedy hoping I would be able to buy cheap again. Nice pickle to be in :)
lol. Small time JPMorgan?
Who is this BMAK you guys speak of?
I have to say I am very happy with this week. Picked up 2 mill at .0018-.002 so far :)
I thought that the cut-off date for next divvy was Sept 30 not the payable date.
When I see people bad mouthing a stock on a board like this, the only explanation I can imagine is that that person is waiting for the stock to get really close to the 52-week low and then buy in big. What other motivation would he have? Why would you bad mouth a stock you really want to dump? You can't buy put options on these and shorting seems like a pain to do with these as brokerages don't want to deal with shorting penny stocks.
The cheerleaders are the ones who want to dump eventually, but they want to wait until they double or triple up first (i.e. the people buying in now saying it will reach a penny will likely be mostly sold off at .007-.008 hoping it drops to .004-.005 again before it gets to a penny). They are also very convinced it will do such. They cheerlead to try and make it happen sooner.
The mostly quiet ones are the ones who actually think this company has potential to eventually either start paying cash dividends or actually get listed on a bigger exchange and the pps will be more stable and resemble much closer the real book value (i.e. what the auditor feels comfortable putting his career on the line by saying it conservatively represents the financial strength of the company). They don't care what happens right now, if the stock goes up they are happy they get paid off early and they will rebalance their holdings, if it goes down they are happy assuming they are able to keep putting more money in a little at a time over time.
All equity stocks are gambling. Try telling someone who ate shit on Citibank otherwise.
Nobody is 100% certain of any stock.
A disciplined investor who believes a particular stock is massively undervalued will still not put everything they own into that stock. Some people have some disciplined standards like "I will not sink more than say 5% of their brokerage account into any particular stock or 10% into a particular index fund."
Yes I am.
New to this board but been in the stock a couple months.
About the fiasco about the audited financials coming out late, I would venture that it is no fault of the CEO, but that the auditor insisted (rightfully) that the green fund be audited as well to be comfortable giving an unmodified opinion on the financial statements taken as a whole given that the green fund was a big part of the value of WNTR. I have not seen a detailed balance sheet showing what investments make up what percent of the value of the whole company, but given that the stock dividend was dubbed a $.01 per share dividend and the company's total book value is supposedly $.03 a share that would make GCHI one third of the composition of the portfolio, thus a material misstatement in GCHI would likely amount to a material misstatement in WNTR.
BTW, if an actual CPA signs off on these financial statements I would venture that it would be in good faith. Not enough money at stake in a company this size to justify paying off even a pretty corrupt auditor enough for him to risk having this audit be peer reviewed and lose his career over.
I do think that the company will remain undervalued even after audited financials come out. I don't think this company will trade at book value (at least consistently) until some real cash dividends are paid. Then the flippers will lose interest and move on to some other penny stock the long term investors will be happy and sell of a bit to rebalance their portfolio and dividend seekers will fill the gap. I personally hope that the price stays low long enough for me to invest more of my income in this company at these levels, unfortunately my more cash flush months are a ways away.