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In our current anti-regulatory environment, I don't see any hope of that happening. Although nothing would make me happier than seeing McGann in stripes.
Substantive post.
Agreed Ken.
Unfortunately, I think this deal will go through exactly as it's currently proposed, without any discounting of the debt...simply because it usually does in these cases. The involvement of Trump's son-in-law could also work against shareholders' interests. It's sickening, and I would gladly forfeit all of my remaining equity value to see McGann in orange.
Well, given the track record of this delightful investment, it will probably involve a reverse split to destroy what little value remains from your investment.
We were told that the BOD had given IMSC management a mandate to "fix the cap structure" of the company. McGann said they would get it done. Following that cc, where McGann had drastically changed his tone, I expected to hear about refinancing and a plan to earn their way out of debt. Instead, we are told absolutely nothing about their efforts to fix the cap structure or why they failed, and oh yes, we now have a commodity product and no pricing control. We can't earn our way out of debt and we are forced to sell. Something is rotten in this company and it isn't with the technicians or the engineers or the sales team. I wish that IMSC was under Federal investigation. Turn the lights on and watch the roaches scamper.
There are two glaring omissions from all of the earnings calls: details regarding their supposed attempts to secure better terms for the debt, and details regarding progress on the non-contact. We've been told that they'd be able to secure better financing as a result of their large contracts with TSA and other customers, and that they had a prototype of the non-contact. Watch how insiders will structure the deal to hold on to the non-contact. Ask yourself this: Why no details on their efforts to refinance? Why no details on the non-contact after both of these important issues were raised multiple times, and we were assured of progress. It will be insider dealing and we will be left out IMO. Like many others here, I'm hoping for a run up from the hype around Zapata to allow an escape. Who here is "delighted" with McGann? That guy is unbelievable.
As I said preiously, watch what happens with the non-contact, where the real money will be made. There's a reason they have downplayed this project, which will unlock the real value in IMSC. They don't want shareholders to benefit. They want it all for themselves.
I am suspicious that the non-contact is further along than we have been led to believe, and that insiders are looking for a way to profit from that product without current shareholders getting any benefit. So they are presenting the current swab scanner as basically a commodity, which it is, and downplaying the non-contact which is where the big money will come from going forward. Watch for who is involved, and how quickly the non-contact is commercialized after the sale.
My biggest complaints with Bill McGann are that, imo, he misled investors wrt opportunities to secure better terms on the debt once the company had secured larger orders (were all refinancing opportunities really explored?), and why was there not more progress on the non-contact? What happened to r&d over the past two years and why doesn't the non-contact solution that they supposedly have bring more value to the table? I think they are having a hard time getting a price that covers the Zapata acquisition without needing additional funds, or this would be done by now.
I agree, and what really bothers me is this: if the technology was really that much better than the competition then they would have some price control....but they don't....so it isn't.
The debt and interest are not new. What has caused the stock to crater since the cc is the lack of prospects for debt restructuring or other strategic developments alluded to on the previous call. They have discussed exploring more conventional sources of lending, but on the call McGann revealed that they are only talking to DMRJ. Also, margins are down, and they didn't offer anything concrete about new technology developments that might change the equation here. Why is McGann the CEO of this company? He is a dismal failure in this role, except to serve his own interests. BOD, What are you doing to address shareholders' interests in this mess? It's time to act.
We effectively do not have a CEO. We have a CTO in McGann, but we do not have someone who is representing the interests of shareholders. It is not good enough to say that if they keep winning sales then shareholders will be taken care of. Debt needs to be addressed and the company needs to be sold to Wall Street. Or they just need to hurry up and sell it, which is my preference.
Their arrogance in asking for new options is appalling when you look at the share price performance. They don't want to earn it, that simple. And this action tells you everything about where they think the share price is going, near term. I will also vote NO. If we had any real analysts following this stock, they would have annihilated Bill on that call.
Anyone who was happy after today's call must have a different interest in the company than as a common shareholder, because we are in for more dilution and share price erosion. I did not buy Bill's story about why the board members are leaving in droves. It is not a positive sign. And DJ should have been on the call, regardless. The entire tone of the call was so defensive it was uncomfortable to listen to. Bill starts saying "you know' every other word and does not come across as credible imo. Not CEO material.
I agree. I don't believe Dr. McGann makes any sense as a permanent CEO, and they did not make him the Interim CEO - so I think he is the CEO until the sale is inked. He is the head of R&D, why would he want to take on the role of CEO long term?
Hypothermia. You know a lot about their business!