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Their is nothing wrong with the Saleen product. The one off display cars they build are great looking and have power.
The problem with Saleen is that the business model created by Steve Saleen, David Fiene, David Weiner and KBM Worldwide is not to build production Mustang's, Camaro's, Brracuda's, Challenger's and Tesla's (give me a break). The business plan is to sell SLNN shares and bail on the OTCBB investor's.
It's the purest execution of a Pump and Dump scheme you could find. The BOD's has a PR company owner, and a POT magnate who has done this three times before and is being investigated by the SEC. Saleen's lawyer has quit the board.
Now Saleen is funding the company with a conversion scheme
that screws the investor's coupled with a Ponzi scheme that is using deposits to cover the payroll rather than buying parts to tune the cars that were ordered. This Saleen company is not a business at all and should not be a publicly traded company. The public needs to be protected from these scam artist's.
What's the source of these accounts of very satisfied Saleen customer's? Saleen pays for Public Relations firms which put out misinformation on a regular basis. One of Saleen's
Board member owns a PR firm. They also have 30+ customer's who have put $1.1M of deposits down for cars which have not been delivered. Spleen also pays for positive articles to be written and published in Automotive magazine's. Do not believe everything you read.
Better hurry. That $500K poison pill Saleen just swallowed is even bigger than in the past. $100K is already spent repaying a previous note. The remaining $400K will be doled out by the lender to only purchase inventory, so it cannot be used to pay down debt. The conversation was based on the share price on May 15th of .005 and would equal 25,000,000 shares on the conversion date. As of today's close that conversion is already
57,242,857 shares and by next week will be over 100,000,000 shares.
So the $400K Saleen get's from this deal is about two ---three weeks of survival. Saleen is digging a deeper and deeper hole
Which it will never be able to crawl out of. They have already buried the OTCBB investors and now they're just throwing more dirt on their caskets. Steve Saleen and David Fiene should be fired. They have violated their responsibilities to the shareholders.
SLNN's share price really takes a beating today. Down (32.4%) to it's lowest share price ever of .0023. The sell off continues as the converted shares are being cashed in at any price they can get for them. Millions of shares remaining to be cashed in with another 30M+ shares converting in June. This stock price will keep going down because the lenders are guaranteed to always be selling at a lower price than the market. They just get to convert more shares to get = cash.
Saleen's CEO- Steve Saleen and CFO-David Fiene poisoned SLNN's stock and killed the OTCBB investors with these convertible notes with deep discounts.
No. It's analysis based on the facts reported by Saleen's
CPA firm to the SEC. Cannot just go into denial mode when
Information is put out there. Many people provide support
for their conclusion's. Some just state that they "do not have to"
because they do not have any support for their erroneous opinions.
I see two options for SLNN:
1) The stock value is nearly zero and the Market Cap is only
$579K. An interested party could buy all the shares of the
outstanding shares of the company for $579K and then deal with
the $9M of debt and the need to buy inventory to tune cars,
let's say another $2M. So for $11.6M they could have the Saleen
brand and be a private company. Steve would not have any
shares or control over the decision making, but he may be able
to eek out a management agreement.
2) More probable scenario: The same interested party waits for
Saleen to declare bankruptcy. Should be soon. The Bankruptcy
court will zero out all the unsecured debt so the vendors and
banks would get screwed and the shareholders would get nothing
for their SLNN stock (including Steve and the BOD's).
Now the interested party could offer the bankruptcy court a
deal to take over the company and pay the IRS the back payroll
taxes $635K and agree to employ 20 people for at least a year.
The court may find this arrangement more favorable than a
Chapter 7 bankruptcy. The interested party may have to pay some
of the critical vendors so that they can keep the parts
flowing. This is the lowest risk approach with the least amount
of haggling. They do not even have to argue with Steve.
This is much cheaper than Option #1.
The only risk to option #2 is that there may be multiple bidders at the bankruptcy court and the bidding could drive the price/cost up.
Where are the names of all those Ford dealerships that are claimed to have serviced the Saleen vehicles as warranty claims?
Where are the copies of the $0 dollar invoices which indicate all the warranty parts and labor that were charged to Ford Motor Company?
SLNN's Market Cap is actually down to $579,564 and the debt is at least ($9,000,000). So the Debt is 15X+ the Market Cap. The company has negative net worth of ($8.4M). In other words, Saleen would have to pay someone $8.4M to take it's shares.
GE has a very strong Balance Sheet and plenty of liquidity.
Should start to see acquisitions soon.
Agreed. GM is still rebounding. Look for a long gradual upward direction with lot's of ups and downs. Long Term play. Not a good day trade candidate.
Taking the car into service is not the same as submitting a warranty claim thru a Ford Dealership with Ford Motor Company on a Saleen Mustang.
AutoInvestor challenged the claim (post #6071) that stated that warranty claims on multiple Saleen Mustang's were transacted
at multiple Ford Dealerships. Which Ford Dealerships? And where are the $0 warranty invoices ? Why is this information not forthcoming?
So a 700 HP Saleen Mustang is towed into a Ford Dealership and the Service manager needs to lift the hood and put the car on a rack to separate and identify all the Saleen parts versus the OEM Ford parts? Then, since the car won't start they need to scope the car to try to diagnose what is wrong it? What if the driver jumped on it and throws a rod? Or the Ford OEM rear end can't handle the torque?
Will the Ford dealership be required to take the time and to separate and diagnose the problem without being paid by the Customer or Ford Motor Company? Why would they bother?
So now the Ford Dealership Sales Manager diagnose's the problem(s) with the 700HP Saleen Mustang and half the part failures are Saleen parts and half are Ford OEM parts. How does he/she fix the car? Does he just replace the Ford OEM parts and then tow the car to Saleen? Who pays for the tow?
Now the towed car shows up at Saleen and they are suppose to replace their parts under warranty and give the finally repaired
car back to the owner at no charge?
What happens if Saleen only has $7K in it's bank account and cannot afford to buy the warranty parts? Or the custom parts
have to be ordered from a 4 axis machine shop because Saleen
does not have the parts in inventory?
This warranty issue is ridiculous. In the real world this customer would get towed into the Ford Dealership and the owner would have to sign a release agreeing to pay for all the repairs. No signature, no diagnose's, no work let's done. The customer would pay for all the repairs and Ford would reject any and all warranty claims.
Just try and quote warranty law to a Dealership Service Manager. See how far you get.
$90 seems inevitable as the advertising revenue kicks in.
GE is undervalued. This should go up.