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Thanks MONQUE2, much appreciated!
Well, that's better than finding empty lots. Once again MONQUE2, thanks so much for all you do and for reporting your findings back to this board.
Their domain psfsi.com is set to expire on April 2nd. So the website will also go down unless they renew the domain before then.
https://www.whois.com/whois/psfsi.com
I own 4 million shares.
It's beyond shameful that this required every other year filing is the only way we get any glimpse of the company's actual production.
We should get our first (albeit forced) glimpse of the annual miles driven by our trucking company by the end of this March thanks to the FMCSA filing requirements. Our DOT# 1848543 ends in 3 giving it a March 31st deadline.
"Biennial Updates
Federal Motor Carrier Safety Administration (FMCSA) requires all entities under its jurisdiction to update their information every two years. You are required to provide this update every two years even if your company has not changed its information, has ceased interstate operations since the last update, or is no longer in business and you did not notify FMCSA.
Failure to complete a Biennial Update will result in deactivation of your USDOT number and may result in civil penalties of up to $1,000 per day, not to exceed $10,000."
https://www.fmcsa.dot.gov/registration/updating-your-registration
The last update was in 2015 when 13.2 million miles driven, according to FMCSA website, generated $26.7 million in revenues according to 2015 financials. https://seekingalpha.com/filing/2788243
MONQUE2's due diligence & contributions to this board are very much appreciated.
Using Google Earth Pro you can see evidence of activity growth at the Hammond Indiana property.
The latest image is April 2017, and when compared to the May 2016 image, you can see they have cleared the lot of all its trees and are now accommodating many more trucks/trailers.
Really want to see updated financials.
Found this post from MONQUE2 about a year ago regarding ASN Holding.
Post #17132
ASN Holding Llc
Several days after Roger resigned from the company, a new company was formed in Indiana by Nikola Zaric on 4/13/2016, using the 1850 Clay Street address (which is also the address used for Pro Star Auto Group Llc). The new entity is called ASN Holding Llc.
Anyone can search the Indiana Secretary of State website (business search) if you'd like to see it for yourself. The business Id# is 2016041300341 if you want to search it that way.
Don't know what it means. Just providing the information.
My guess is that they file an extension and provide annual financials by April 15th.
I cannot think of one good reason why the company would choose to delay the filings any further. THEY made the decision to become a publicly traded company. If they wanted to avoid SEC filing requirements, they simply could have remained a private company.
I hope they will also change the stock symbol and name at the same time or shortly after the 10-k is filed. Once they have the annual report filed, the quarterly ones should be easier to keep current.
I think we will see the 10-k by March 31 (or April 15 including a 15 day extension). It's also possible we'll see a name change and ticker change then or shortly thereafter.
Would be nice to find that the convertible debt that was associated with HydroPhi was also "disposed" of. Imagine what the financials will look like with all those revenues and no toxic debt...
I too am looking for the 10-K this month as well as a name/symbol change.
Makes sense, thanks.
Good catch MONQUE2. I see the number of power units & drivers decreased slightly when comparing the current website version to what was pasted in the sticky section here the other day.
http://safer.fmcsa.dot.gov/query.asp?query_type=queryCarrierSnapshot&query_param=USDOT&query_string=1848543
Wish they had updated the total mileage figure for 2016.
This kind of shady price swings wouldn't be happening if they would just release their financials.
Unbelievable that a $3 trade can (artificially) drop the value of the stock by 60%.
HPTG 6 cents per share fair value?
I'm waiting for the annual MCS-150 mileage numbers for the 2016 update. Not sure when that will happen but it could be updated before we get any financials from the company and that number will give us a good clue on revenues for 2016.
In 2015 the company reported $26.7 million in revenues on 13.2 miles driven. (Maintenance revenues are also included in the $26.7 million)
The growth in miles driven from 2014 (9.5 mill) vs 2015 (13.2 mill) was an increase of 39%.
If we assume a growth rate of less than half that for 2016-- say 15% to be conservative, then the miles driven would be approx 15 million for 2016.
New January 2017 Van Rate averages per mile are out and they show an increase. In the midwest $2.12 per mile vs. $1.82 in early 2016 & in the southeast $1.96 vs. $1.59 in early 2016. That's good news.
https://www.dat.com/resources/trendlines/van/national-rates
Also, Stern NYU industry averages have been updated last week. The trucking industry now averages .81 P/S ratio up from .73 P/S ratio in 2016. More good news.
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html
If we take my estimate of a 15% increase in miles driven and apply the average van rate per mile we get 15 million miles driven for 2016 at an average of about $2 per mile (That was our average for 2015). Simple math gets you to an estimate of $30 million in revenues for 2016.
More simple math implies we should have a market cap of .81 of annual sales. Revenues at 30 mill x .81= 24 million market cap divided by ~400 million shares outstanding= $.06 fair value per share.
I've book marked the NYU Stern School of Business site which tracks the average financial ratios by industry. They update it once a year in January. It's due for an update soon.
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html
According to their research, the Trucking industry has a average Pre-Tax margin of 10.13% and a Net margin average of 4.19%.
Here's another good link that shows the average revenue per mile by region in the US.
https://www.dat.com/blog/post/how-much-lower-can-van-rates-go
Thanks for that info. Sounds like they are coping well with the driver shortage issue that the industry is experiencing.
If the business is indeed "growing rapidly" we might see $30 million or more in revenues for 2016. $30 million represents just a 12% increase over reported 2015 revenues.
At today's price, we are just over $1 million in market cap. The sooner they release financials, the sooner the market cap corrects to a more reasonable level.
Since Monday is the on-time deadline for Q3 results, I certainly hope we'll see the financials for the three quarters of 2016. I'm expecting that revenues for the 9 months will approach $20 million and net profit will approach $1 million.
Also, I expect to hear some good news regarding the debt. Since the share count hasn't risen since early this year, it's reasonable to expect good news here.
Finally, I expect the company to announce a name/ticker symbol change. They've already taken down hydrophi.com indicating the possibility of such a change.
The 3rd quarter 10-Q on-time filing deadline is Nov 14th. I would hope that all 3 quarters of 2016 financials will be finished and released by then.
Pro Star could have remained a private company if they wanted to avoid SEC reporting and other shareholder responsibilities.
Shareholders need to know details of any expansion that has taken place, a possible name/symbol change from Hydrophi/HPTG, the current debt structure, and any other important material events.
The market cap has fallen to approx $1 million which is exactly the amount of net profit they should be earning for 2016 based on a conservative guess of $25 mill in revenues.
The share price is currently LOWER than it was BEFORE the acquisition of Pro Star. So far, the company's silence has cost them the benefits of going public.
I cannot imagine how IFCR can pay for the 2 prospective acquisitions he mentioned. For the trucking industry, the ave market cap is approx .7 times revenues. Mathematically, that assigns a $14 million market cap to the combined $19 mill in revenues for the 2 subs they're looking at. The $14 mill would be a reasonable price to pay for both subs. Where can IFCR get $14 million? Or $1 million for that matter?
The breakup fee that Smith & Morris might have to pay certainly won't be this much.
Using the 5,000,0000 shares that will be available (10 mill will be authorized and 5 mill issued post R/S) will be valued about $500,000 at $.10/share on day 1 post R/S-- so that doesn't make a dent either.
Their two existing subs might be bringing in $6 mill in revenue, according to IFCR press releases. That's not going to net much if any profit.
I don't believe that they are in any position to acquire new subs.
(Especially after reading yesterday's 8-K outlining their delinquencies)
Wouldn't it make more sense to get the audits done, let the price rise to $.0008, a fair value for a $6 mill revenue trucking company, and then do the R/S?
That strategy may give them enough resources (using the available 5 mill new shares at $.80/per share=$4 million + any collected breakup fees from Smith & Morris) to acquire the $7 mill sub in Florida for example.
I added more too. I couldn't resist these prices.
$27 million in revenues last year deserves a market cap of close to $20 million & not a market cap of $800k that we saw a few minutes ago...
When they get their SEC reporting act together we will see the stock fairly priced IMO.
Yes the ave PE is 17 but what I'm using to value the stock is Price to Revenue or sales since we dont have any idea of earnings. We do however have an estimate of sales. Average P/S is .73 for the trucking industry. This valuation nets a share price of between .0008 and .0009
If Smith and Morris revenues are no longer going to be under the IFCR umbrella, then all we have are these two subs: (Correct me if I'm wrong)
American Transportation of Hartford CT acquired July 2015 with revenues of approx $4.5 million stated in the press release.
SC Trucking of Philadelphia, PA acquired Feb 2016 with revenues of approx $1 million stated in the press release.
That's a total of $5.5 million annually. Maybe $6 mill if their business grew throughout 2016.
A reasonable per share value for a Trucking company with $6 million in revenues and 5 billion shares is $.0008 or $.0009 (That's an 8 or 9 bagger from here)
.73X revenues is the ave. market cap of Trucking Industry
http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/psdata.html
.73x $6,000,000= $4,380,000 divided by 5 billion shares and you get
$.000876 per share.
Of course this valuation doesn't take into account the effects of any debt, possible R/S, or new acquisitions etc..
Green, I would be very happy to see $40 mill revenues for 2017.
While I do think we may see growth in revenues as a result of the expansion of locations, I try to keep my expectations low so I am going to be extremely conservative in trying to estimate a fair & achievable value of the stock.
I know we don't know any numbers for 2016. But if we stay flat on revenues for the third straight year at ~$27 million in 2016, we still would deserve a market cap of ~$20 million and a price per share of $.05
$27 mill revenues x .73 (ave Price/sales ratio Trucking Industry)=$19.7 mill market cap / 405 mill shares outstanding= $.05 per share
(I posted this same valuation estimate in June 2016--see post # 17597)
What penny stock so you know that's taking in $27 mill in revenues the past 3 years and trades at $.0035? Once our financials for 2016 are released, the answer will be none IMO.
This is why I am still holding my shares.
Looks like Mr. Zaric is preparing the filings himself. Could explain some of the reason for the filings delay.
"We are not required to have and we do not have an Audit Committee. The board of directors of HPT Group performs some of the same functions of an Audit Committee, such as recommending a firm of independent certified public accountants to audit the financial statements; reviewing the auditors' independence, the financial statements and their audit report; and reviewing management's administration of the system of internal accounting controls. The board of directors of HPT Group does not currently have a written audit committee charter or similar document.
We have no audit committee financial expert. Mr. Zaric has financial statement preparation and interpretation ability obtained over the years from past business experience and education. We believe the cost related to retaining a financial expert at this time is not justified. Further, because of the nature of our current limited operations, we believe the services of a financial expert are not warranted, given the background of Mr. Zaric."
I doubt the yield sign will be removed until Q1 filing is in.
Happy to see some progress on the filings.
Thank you very much for doing more excellent DD. AND for sharing it with this board...
My guess is that HPTG received somewhere around $350,000 for their stake in HTE.
Estimate based on 51 million shares of HTE and 1 Zloty=.25 USD
51,000,000x.16 (current price in Zlotys)=8,160,000 Zlotys
http://www.newconnect.pl/index.php?page=znajdz_spolke_en&ph_main_content_start=show&ncc_index=HTE
8,160,000x.25= 2 million USD total market cap of HTE
$2,000,000x 17%= $346,800
Again, it's just a guess. The company needs to release a PR addressing this since this sale is a significant development. If they indeed received roughly $350,000 from the sale, that represents more than 25% of their current market cap.
Looks like HPTG has sold its entire ~17% stake in HydroPhi Europe.
http://www.reuters.com/article/idUSFWN1A8089
Also HydroPhi Europe has dismissed its board and appointed a new CEO
http://www.reuters.com/article/idUSFWN1A807S
Something is going on at HydroPhi Europe. There's been a flurry of news the past few days. Not sure, but I assume HPTG still owns 18-20% of the stock since we haven't heard otherwise.
BRIEF-HydroPhi Technologies Europe CEO resigns
http://www.reuters.com/article/idUSFWN1A40FN
BRIEF-Equimaxx sells 80.26% of Hydrophi Technologies Europe
http://www.reuters.com/article/idUSFWN19Z07I
Doesn't look like the market see this as bad news as the price on the Warsaw exchange has held up well.
http://www.newconnect.pl/index.php?page=znajdz_spolke_en&ph_main_content_start=show&ncc_index=HTE
It would be nice to know what is actually going on...
You're incorrect about ProStar not being profitable.
In fact, according to their audited financials, they had an operating profit for both 2014 & 2015. The operating profit AND net profit was over $1 million for 2014 (just about in line with industry ratio standards). 2015 was roughly break even for net profit-- mainly due to higher insurance cost.
These facts are available for all to read in their 3/18/16 8-k/a filing.
ABOUT EQUIMAXX
Equimaxx is reverse merger specialist for micro cap companies in Poland. It has successfully merged a number of promising young technology and life science companies thom the U.S. into publicly traded shells listed on the Warsaw Stock Exchange.
Equimaxx combines this expertise with cost effective equity line financing for both companies and individuals. Equimaxx will commit as much as ten million USD to buy publicly traded stock in a single company from either the company itself or an individual.
Focusing primarily on Central and Eastern Europe, Equimaxx has working relationships with a number of Polish and U.S. companies specializing in equity line financing.
Equimaxx has significant funds available for equity line financing and has completed more than 50 ELF transactions.
http://equimaxx.co/
Maybe the good news in the upcoming 8-k will be related to the HydroPlant. Since ProStar is leasing all of their trucks, most likely they won't be installing any HydroPlants on them. Maybe selling the intellectual property (patent) and their stake in HydroPhi Europe could net them enough to payoff a big chunk of any remaining toxic debt. Once that debt is paid, much better financing doors can open up (non-dilutive lines of credit for example). Better financing will obviously help accelerate growth.
In HPTG's last annual report they gave a value of the HydroPlant intellectual property at $650,000. (Find it under Intangable Assets in the 10-k)
http://ih.advfn.com/p.php?pid=nmona&article=67479651
A calculation of what their stake in HydroPhi Europe I did a few months ago, in post 15442, showed it worth approximately $400,000. Combined, that's over a million dollar infusion that could go a long way to help eliminate the toxic debt.
Like many other longs on this board, I bought in because of the HydroPlant tech but I am in favor of selling the tech if it makes the company stronger.
Think about this: At the current price, the total market cap is $1.8 million. IF we can get ~$1 million for the HydroPlant, that would currently value Pro Star, which probably will book ~$30 million in revenues this year, at just $800,000! IMO, this stock is way undervalued.
These are just some thoughts I had in response to yesterday's excellent post regarding the call to the CEO.
I do not believe they are retiring shares but I do hope they are paying off the remaining toxic debt. Once that debt is gone, the doors to much better financing to propel growth can open up.
Revenue rates per mile are holding up well this year.
http://www.dat.com/resources/trendlines/van/national-rates
$30 million in revenues should be possible for 2016.
IMO, it's likely that 1/2 of that amount, ~$15 million, has already been booked by ProStar.
When financials are released, I am hoping to see the remaining toxic debt eliminated (or at least significantly reduced) from the books.
Maybe that's the reason the outstanding share count has remained steady for several months at ~400 million shares?
If the road block is cleared, I would expect the next PR to be the actual SEC Filings. Again, I'm hoping for this scenario, we'll see...