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What awful numbers.
Sales falling off a cliff as it seems they don’t have the cash to pay suppliers for inventory to build it.
Eric Kelly is a genius.
Cyrus is into this thing for $80-90M going back to Tandberg then Overland then Sphere. They are idiots.
It’s just the penny stock daytrading clowns like “Clay Trader” who pick a few turd penny stocks a day, buy some, then blast out to their email subscribers and post on all these forums to create a temporary spike to suck in bagholders and move on to the next one. Most baggies even know the game they just try to ride the little pump.
This thing is toast and really just about Cyrus trying to get out without taking a total write off.
It doesn't matter what their intent is. Worthless is worthless.
IMHO
No, you have to manually incinerate your cash each time.
Hah
Oh please Geneie abandoned its Israel oil and gas exploration activities last year:
https://www.prnewswire.com/news-releases/genie-energy-suspends-exploratory-oil-and-gas-drilling-program-in-northern-israel-300558113.html
due to, surprise, no commerical quantities of oil and gas.
They had a crappy drilling services company as well that they are unloading to the manager of that division.
It sounds like they sold if for about zero as they say the deal allows them to reduce the "wind down costs".
IMHO you have a better chance of a gold meteor landing on your front lawn than finding commercial oil in Israel.
But go ahead! Keep shovelling your blessed cash to Zion. The execs appreciate the hundreds of thousands of dollars each that they keep earning.
Brown's compensation was $632K last year, $575K the year before, and $419K the year before that. Carrillo earned $450-$500K per year, CFO $365K and so on.
Just keep sending in the $250 at a time folks. Step right up. It's for the "blessings of Israel" etc.
Ugh.
You need to check the Price To Seasons Greetings Ratio.
If you add up the number of Seasons Greetings over the past 10 years, then divide that by the number of holiday seasons, you can calculate the P/SG ratio.
I think you'll find that in the other years there were multiple seasons greatings each year, so the 10 year P/SG is still quite healthy and well above 1.0. Probably 1.8x or so.
Don't beat yourself up about it. Easy mistake to make.
Stop blaming short sellers. The company has been raising money from mom and pop investors for decades, using their faith, and drilling dry holes, paying huge salaries to management, and doing it over and over. Notice how drilling and testing always slows down for silly reasons (hard to get equipment into Israel!, it’s the holidays! Gotta be safe!) just log enough to raise the next chunk of money from mom and pop. It’s common knowledge that Israel has no negligible commercially viable oil. Almost 500 wells were drilled (mostly 1950s to 1970s), but now technology and geology are much better which is why nobody drills there anymore. Except Zion. Why is that? You don’t think Exxon or Total have $5 million? Nice offshore gas fields, however.
Note the type of well they’ve been drilling - a simple horizontal should take perhaps 6-8 weeks to drill and test. We are 15 months in and they are still stretching it out.
Find any energy company that uses the term “live oil” or “barrels of fluid”. It’s misleading and they must know their investors don’t understand. Blinded by “faith”. and their Facebook post “we found oil!” will come back to bite them. The SEC has that. Why do you think subpoenas are flying?
You think the CEO would just up and quit if this hole in Israel isn’t a dud? Note now he’s not an insider so can dump his shares on you.
IMHO preying on people’s religious beliefs is about as low as it goes.
Direct your anger where it belongs. The company and the mirror.
It was over 15 years ago.
This company doesn’t even use standard industry terms. “Live oil”. Barrels of “fluid” lol. Just drag things out and out and out while raising money from gullible nitwits.
It doesn’t take a year and a half to drill and test a simple horizontal well. It takes weeks.
Wake up.
Have fun riding this to zero.
What would it take for you people to actually realize what is happening to you?
Holy smokes. No pun intended.
Clearly a problem with EK’s financing. My guess is if there is a deal at all it’s going to get reduced dramatically. If they leave debt behind the company is an insta-bankruptcy (IMHO) so paying off the senior debt for cash, giving Cyrus a few $M, and then Cyrus converting their junior debt to equity in order to wipe out the rest of the bagholders may be the result.
Bookman has tweeted some blockchain stuff recently so perhaps the little VAR and the shell that is left will pivot to a blockchain pump?
If you have evidence of Steve lying to you directly via email I suggest filing complaints with the BCSC and the SEC. Easy to do online.
You could also file a civil suit but would likely have to include the company as a defendant and the company might possibly be on the hook for his costs as an indemnity.
But the complaint is easy. I do them all the time. I also send fat envelopes of my research anonymously to regulators. In my experience the SEC is far more responsive. Assuming you are American I would play up the fact that some Canadian company ripped you off.
Yes DSNY has a $8.8M market cap, is currently cash flow positive, and has $2.05M in cash, or 3.7 cents per share.
With say $1M they could buy back 11% of the stock.
There are a few things they are probably thinking about:
1) It would increase the price and liquidity which would help Steve get more liquidity to fight the company in the lawsuit.
2) They might be thinking "we are so thinly traded now that buying back stock would reduce liquidity even more after the buyback"
3) Fred may have a reason for wanting to hoarde cash - e.g. if the U.S. weakness might be be the start of something deteriorating.
4) DSNY trades 12K shares per day, which is literally like $2K at these prices. May not be practical.
All are valid.
I haven't been tracking the lawsuit but one thing in the back of my mind is that a settlement with Steve might include no cash to him, but agreeing to sell back some or all of his shares back to the company. That may be the end game here and why Fred might be hoarding cash.
Eg. if the stock goes to 10 cents they could pay $2M to Steve in retiring his shares. Although I'm not sure if they can do that from a regulatory standpoint without offering to other shareholders. Rules are complicated on that. Might be a way to structure it.
Of course Steve may be on tilt and irrational so who knows.
There are a few comments i find a bit worrying in the transcript:
"US revenues were flat, where a consistent 5% growth in US independent was offset by decline from one US major customer."
I'm worried that is Universal
"Revenue from our European customers was down 6.7% due to declines from certain of our major Scandinavian and Sweden labels."
Also the word "major" could that be Universal as well?
"The increase in marketing expenses was associated with increased client engagement efforts focused on areas where we've seen some recent declines as I just mentioned."
Hopefully the horse hasn't left the barn here.
Reading between the lines I wonder if Universal and/or other "majors" are starting to move on from PlayMPE???
"Our lack of appropriate investment in Play MPE had strained relationships with customers, hindered our ability to grow and threatened existing revenue, and we've known about this for quite some time."
Universal is 43% of revenue as of last Q, or $396K. That 43% was the same last Q so there is stability for now.
The company should probably sold IMHO. A buyer could probably knock $500K off of G&A and perhaps $300K from sales and marketing. Maybe do earnings of $1.5M or so, sell it for 10x that and you'd have a $0.27 exit, nearly a 2x from here.
Not sure who the buyer would be though.
This isn’t a bad Q. But the company is fully priced here at 16 cents given the complete lack of growth (about 12x earnings). Perhaps a tad on the cheap side now given the $2M cash balance. It only grew because of an FX fluctuation.
They said they had a revenue decline in the US from “a major customer”. If that is Universal I’d be worried. And their increased marketing spend is directed at this declining area, with little color provided.
The narrative they are spinning is that they underinvested in MPE (true) and are now “correcting” that. But it’s not clear if that effort will pay off (eg is it too little too late).
Fred seems ok. Although if he really was concerned about the stock price and thought he was cheap they could BUY BACK STOCK.
They could retire 20-25% of the share count with their $2M cash balance, AND clear out the Steve overhang.
Seems like part of their strategy with Steve is to allow the share price to collapse to starve him of cash to litigate.
They would never be able to say this.
Interesting situation. I don’t see a reason to unload at these prices but not a screaming buy that’s for sure.
My sense is lots of bad blood w Steve. Hopefully Fred and the board swallow their pride and and do whatever the right thing is.
You could be right, but I think it could be a registration issue - i.e. unregistered stock can't be traded regardless of whether one is an insider or not.
The reason he filed the 144 before quarters is because he has to get the stock registered (tradable) in a brokerage account, and for a low volume stock like DSNY most volume occurs after quarterly results. It’s all about liquidity. He is a big overhang and the more volume there is the more he will sell. My sense is he needs the money given he doesn’t have “his” company to extract $$ any longer.
Focusing on MPE is the right thing to do and the company seems to be in an infinitely better position now. Fred seems ok as well.
I have no criticism of this company now.
It’s in their 13Fs exactly which funds hold it. Vanguard is ONLY index fund.
LOL!
Vanguard, Blackrock, and Fidelity are forced to own $ZN because they are:
INDEX FUNDS!!!!!!!!!
$ZN is in the Russell 2000 so they are forced to own.
No smart money owns this. None.
These sales are nothing more than them auto-selling stock to cover the tax bill on their free stock grants.
It's really all about how many more scraps can be extracted from bagholders.
$6.3 million more in market cap to go to reach fair value.
IMHO
Colbeck's game is also priming Cyrus. Every nickel the extract as the secured creditor impairs the Cyrus loan. I'm guessing Cyrus is marking their debt at par for now.
It's been 5 months since the EK deal was announced and two months since shareholders approved.
Clearly there is a problem with getting the deal financed.
If EK was smart (IMHO he's dumber than a potato), he'd now negotiate the deal down to $20M or so -enough to get Colbeck out and perhaps 10 cents on the dollar to Cyrus and be done with it.
Would also make a ton of sense to cleanse the liabilities through a quick bankruptcy.
Really fascinating to watch the corpse twitch like this.
Gonna lose it all bud.
It’s pretty clear what happened. Cyrus had pumped many $10s of millions into Tandberg and then Overland by engineering that merger. They were looking at a total loss in all likelihood as OVRL (per the merger proxy docs) only had toxic alternatives that would have crushed Cyrus. Cyrus also owned it in various funds with differential priorities so had an internal problem (eg later Cyrus fund investors had higher priority in the convertible debt whereas older funds owned equity. Hard to zero out everyone and then try to convince your institutional investors that you weren’t using new investors to bail out old investors and/or throwing good money after bad.
ANY had a pumped up market cap up $200M but almost ZERO business outside of the VDI train wreck they bought . A total joke IMO. A complete and utter obvious joke IMHO.
But ANY was low on cash and nowhere on execution. They pizzed away the money the I-banking clown morons raised for them.
So Cyrus bails out ANY on the condition they merge with Overland. Same playbook as Overland and Tandberg. Solves a OVRL problem with a stupid market cap merger partner and a “story”, and solves the ANY problem of having to deliver with a silly “product” that doesn’t even really exist. They then get to lump in “Glassware” revenue of basically nil with “disk systems” so nobody can see the joke, and they at least have revenue, albeit low margin ancient technology.
Gave Cyrus time to find more chances for life in order to protect their debt (I suspect they realized the equity would be long gone in all probability). Found morons to keep buying stock but also did crushingly dilutive deals with buddies like McFarlane and Sheldon Iwentash who got to reload deeply discount Stock and get free warrants.
Silicon Valley Bank are super bright guys and sharp. They forced the company to keep raising equity and were getting ready to pull the plug on the company. Enter the clown car from Opus who takes out SVB entirely and ANY is almost instantly in special loans with the other garbage companies OPB loaned money too (some basket case microcap cash sinks and was in public filings).
So the last 3 years have been really about Cyrus deftly leveraging various morons to keep their convertible debt alive and have the highest chance of repayment.
Now OPB is on like its 8th extend and pretend waiver with the company and ranks above Cyrus.
So we are at endgame, with OPB on the verge of finally taking its lumps and foreclosing, which would zero out the equity and likely the converts as well.
The final Hail Mary for Cyrus is that EK finds someone dumb enough to buy this awful business for $40+ Million to pay off OPB and Cyrus. I’d be shocked such a dummy is out there but you never know.
More likely he fails at raising the money and it will be a tension between OPB finally pulling the plug and grabbing the accounts receivable, but taking a hit, and Cyrus finally ready to throw in the towel.
WhT you might see is OPB putting it into Chapter 11 or 7 and bidding with Cyrus with the debt - so OPB rolls its debt and Cyrus becomes 100% of the equity in a newco that walks away from all liabilities. Maybe they kick in the $5M they got paid back that the dummies at OPB allowed them to take out.
Now tell me, where am I wrong here?
One analyst even likened the merger to EMC and VMware merging.
The saddest part about the ANY saga is that some real people got REALLY hurt. Sure, one can blame them for being greedy or naive, but the company’s behavior was absolutely disgusting, IMO. I’m aware of one fellow who bought hundreds of thousands in stock and call options after the Infamous Eric Kelly pump letter.
The second saddest part is how OBVIOUS the joke was here when the stock was at $250 ($10 pre reverse split).
The third saddest joke is that someone out there is supposedly dumb enough to give Eric Kelly $40M to buy this thing out. My math may be off, but I think if you invested $10,000 with The day He became CEO of Overland you might have 50 cents left. Maybe.
I am most thankful that Opus Bank lent this company money. It showed me how awful their underwriting standards are so I shorted it heavily. Their tech lending book imploded and it got crushed. Tip: if the US heads into recession, consider shorting OPB. They are dumber that Deutsche Bank.
IMHO
Yes. Surely working on a big “Exosphere” contract. Containerized of course. Bare metal and full stack. On a chip.
PR today is just silly. My guess is desperate or maybe taking heat to keep the share price up while Roth or Cyrus unloads more.
They PR this puny deal in mid May even though it was inked and they were shipping against it in Q1.
Just pathetic.
In all fairness to Hubert Mak at Cormark, he is not crooked. Just an incompetent fool.
Bitcoin on a chip.
If someone is stupid enough to back Eric Kelly and pay $45M for almost all of the assets, we me get a round two as we’d have Peter T with a listed shell (with the VMware reseller they bought last year) - maybe he will turn it into a weed stock or crypto play?
I can’t believe EK will come up with the money.
If you really want to stop him or get justice file a complaint with BCSC. Emails from the CEO are gold. Heck you probably have a good litigation claim.
FWIW from what I’ve seen from Fred things look much better. Focus on the core, make your customers happy, rinse, repeat.
Steve probably spent more than the current market cap 3 times over on the Clipstream rathole.
I met the guy once. Won’t forget it.
I randomly came across this tweet that I found interesting.
https://twitter.com/Keubiko/status/966434971807137792
Well,
1) they are unloading almost all of the company to Eric Kelly
2) the funds won’t go to shareholders, they will repay the debt.
3) shareholders will be left with scraps including “Glassware” and that reseller they bought a year ago for a couple of $million or so.
4) good chance the deal doesn’t close as It is subject to Eric Kelly raising money. Eric Kelly delivering on anything is a risky bet. If anyone does serious diligence on EK Obcant see how he is a backable CEO. And the Overland biz, IMO, is a bad low margin dinosaur.
5) good chance if it does close the price will be lower due to working capital adjustments.
6) the fact that this contingent deal is the best they could come up with speaks volumes.
7) potential further dilution to even get through closing.
Coming out the other end it seems you have a small Low value biz with Peter T flapping around.
Having said that PT could pivot the thing (eg with a blockchain pump) to restart a new thing with fresh retail investors to do it all over again.
Just amazing. The guys that rode this from $10 to $0.10 must be livid.
With a $15 million market cap quasi shell company without debt lots of things a good hypester can do. Will be fun to watch.
Very respectable. Nothing wrong with building a solid small and profitable business.
Now what they need to do is figure out a way to use blockchain with PlayMPE and the stock will 3x for a while. Not even kidding here.
PlayMPE (rights management) is actually a legit candidate for blockchain tech. Look what Kodak is trying to do with images.
Again, not kidding on this point.
No, I repeatedly pointed out the estimated cash zero date estimate. Has been spot on, as they’ve raised ore equity, and now that that isn’t feasible (IMHO) have raised $2M more in high cost debt and now have authority for blank check preferred.
You can get a sense for the size and timing of these deals. Most school districts publicize their RFPs.
Interesting these are HVE reseller deals, a puny company ANY bought for a few $million last year. Good for a bit of PR directed at guys like Bruce who apparently lap it up and pretend the Stock hasn’t collapsed 99%, that they aren’t $50M or so in debt, have to dilute massively with shares for each quarterly interest payment, raise money to fund the burn, and just approved blank check preferreds so they can wipe out shareholders even more on a moment’s notice.
Let's not forget, The $24.5M Cyrus debt is due on March 31, 2018.
Given Opus ranks ahead of Cyrus for $18.2M, that is another looming problem.
How are they going to raise $24.5 million when they entire market cap is $15 million?
IMHO it's not realistic that they will be able to raise anywhere close to what is required to repay Cyrus.
So what does that mean?
IMHO probably yet another big pound of flesh from Cyrus. Not only are they getting paid interest in stock, but, IMHO, if Cyrus is asked to extend like they will probably have to be, get ready for another pounding.
With the 1-for-25 reverse split, the Cyrus conversion price is $75.00 (down from $187.50). IMHO look for, at a minimum, that conversion price to drop down to something like $2-3 plus a bunch of fees, etc etc. At a $2.00 conversion price that would about triple the fully diluted share count. That would be 12.25 million shares if converted vs the current count of 6.7M.
Oh lordy, the pain.
You can find the 6-K here:
https://www.sec.gov/Archives/edgar/data/1591956/000106299317005271/form6k.htm
If you're Eric's pal Victor McFarlane and you are buried in ANY, what do you do?
They already own 25.3% of the stock. And we know the company is in special loans with the bank and at risk of more defaults. Another stock deal plus warrants (that seem to be never be worth anything) is yet more risk.
So bleeding in another $2M in a debt position above the common bagholders probably makes sense, to help protect his equity position, but not dig a further hole by buying even more stock.
This way if there's a restructuring, once Opus is paid. then if Cyrus is paid, they will be first in line for the next chunk, if there is one.
It would also be a natural instrument to do a debt to equity conversion if/when the other creditors are paid off. They could convert it into a massive number of shares.
Of course now that they have blank check prefs then have even more tools to crush shareholders.
But don't worry about management. They just got a fresh reload of of a "performance incentive plan" approved - another 18.7% of the stock! LOL!
"The proposed amendments to the Plan would increase the maximum number of Shares that may be issued pursuant to the 2015 Plan by an additional 1,250,000 shares, representing approximately 18.7% of the issued and outstanding shares of common stock of the Company issued and outstanding on the Record Date."
Of course, it was also important to put this in:
"restricted stock units granted under the 2015 Plan as described below during any one calendar year to any one individual would be increased from 80,000 shares to 300,000 shares."
Now, I wonder who will get those? Hmmm. Any guesses? This kind of talent doesn't come cheap you know.