The warrant's exercise price is $11.50 and there's over 3 years before they expire. You could run a Black-Scholes to determine the theoretical price but it sure seems like the warrants are underpriced especially considering KERN's volatility.

For example, this morning when KERN hit $12.50, the warrants were $1 in the money but were trading at $0.98/$1.00. The 3+ years of time premium was valued at zero.

I don't know if the warrants should be trading at $3 but at this price level, they're a bargain. I started buying the warrants two weeks ago at 50 cents and finished off my position today at 95 cents.

From the full version:

"While conventional valuation methods could be used when looking at MOMT, the company has a different exit strategy for shareholders. Rather than building a business based on sales and profitability, it is a business that would be an attractive acquisition candidate for a large company looking to quickly scale in India. It is also an ideal tuck in for companies that have a platform to serve the banked and smartphone customers of India, but have no plan to reach the un- and under-banked and those using cash. These large companies such as Google and PayPal would be interested in MOMT as a strategic acquisition saving time to market and legwork. In this circumstance the company believes it should be valued as a multiple of number of customers. MOMT has 220 million customers. The acquirer would consider the cost of buying MOMT versus its customer acquisition cost and add to that a premium for the network, and the speed to gaining market share."

A new Zack's Research report was released a few days ago, probably in line with the rights offering. This from the short version at: https://finance.yahoo.com/news/momtd-moneyonmobile-enabling-india-cash-213000898.html?.tsrc=rss:

"MOMT is in the process of a rights offering at $6 per share and hopes to raise $4 to $10 million to fund its growth. Given our estimates and peer comparables we believe that MOMT stock is worth $9.50 per share based on an industry average EV to sales of 4.1 times and our calendar year 2018 estimate of $12.7 million in revenues. Given the company’s revenue potential for 2019, the stock price could move to $34 per share based on this multiple."

The full version is at: http://s1.q4cdn.com/460208960/files/News/2018/Zacks_SCR_Research_05162018_MOMTD_Thompson.pdf

O'Connor's presentation at today's LD Micro Virtual Conference is now available at http://www.investorcalendar.com/console/conference/?id=26721

It's basically an overview of the company, not very technical -- directed mostly at investors.

$3.78 is the current exercise price.

Yes, that's correct -- as of the end of 2016 but (see note 19) they spent $2 million on the TyrNovo stake on January 11th. Money well spent, in my opinion.

His name is on the web site as IR contact, unfortunately. I hope he's not too involved with the company's operations.

Finally, a business summary released by the company yesterday:

OKLAHOMA CITY, Jan. 11, 2017 /PRNewswire/ -- Energy and Environmental Services, Inc. (OTC pink: EESE) is proud to provide a summary of current business ventures as the company's initial announcement under the new name and symbol EESE. Energy and Environmental Services, Inc. was founded in 1991. To date, the company has grown to seven locations and is focused on developing the following products and services.

Oilfield Chemicals

This has been and remains a core business for the company and this division generated a majority of the approximate $32 million in gross revenues during the last aggressive energy cycle in 2014. The company offers a full suite of chemical services to provide treatments for scale, paraffin, hydrates, corrosion, bacterial blockage, emulsions and foaming, all of which are known to cause declines in oil & gas well production.

In addition to liquid chemicals, the company has developed a patent pending solid chemical technology which management believes to be superior to other solid chemicals offered by competitors. Solid chemicals offer the advantages of easier handling and extended protection due to a metered time release and a higher rate of activity. Additionally, these solid chemicals are compatible with frac fluids and oppositely charged molecules found in downhole and other well site environments.

Powdered Coatings

The company owns the trademarked powdered coating Enduro-Bond® and offers this service through their wholly owned subsidiary Enduro-Bond Manufacturing Company. Enduro-Bond's coating facility is located in Chickasha, Oklahoma. The Enduro-Bond® process produces a smooth 1-2 millimeter protective coating to all areas of metal parts without compromising threads or connective tolerances. Enduro-Bond® coated ductile iron and carbon steel parts will outlast stainless steel in corrosive environments. In addition to its anti-corrosive properties, Enduro-Bond® is stable in high heat and protects against impact and abrasion.

The complex formula of polymers and selective additives that make up Enduro-Bond® can also be molded. Management is researching this molding capability to see if certain parts and products can be constructed entirely from Enduro-Bond® so that these products might have the potential to be lighter, less expensive and more anti-corrosive than stainless steel.

Enzymes and Probiotics

Through its wholly owned subsidiary EcoZyme System Technologies (EST), the company cultivates enzymes and beneficial microbes at its manufacturing facility in Troup, Texas. These live microorganisms are manufactured for use in the following organic product lines:

H2S Removal – This organic treatment system is in development for the removal of H2S in oil and gas production. The H2S bond is cleaved enzymatically allowing the operator to utilize a treatment system that is less expensive and non-toxic as compared to current industry methods. To date, this compound has proven to break-up and render the potentially fatal H2S gas harmless. Independent testing is in process.

Livestock Feed Supplements – EST has developed a proprietary combination of organic ingredients and beneficial microorganisms to create a feed supplement named BioBlendTM. Early tests have exhibited cattle reaching target weights in a significantly shorter amount of time, and with far fewer health issues in comparison to control groups using currently accepted feeding regimens. This supplement has also shown to improve meat grade, as well as, milk quality in dairy cows. Discussions are now on going with a major cattle producer and select universities to initiate independent studies in order to document the results of adding BioBlendTM to feeding programs.

Odor Elimination – The line of odor elimination products at EST is second to none when it comes to neutralizing malodors. The company manufactures "ecologically" compatible products for a variety of home and industrial applications in the area of malodor elimination. NeuScentsTM for home use eliminates odors by attacking them at the molecular level by breaking the chemical bond that forms to create the malodors. They are eliminated, not just masked or deodorized. NeuScentsTM is a non-toxic and biodegradable liquid product made from a process using microorganisms and a formulation of all-natural plant extracts. The NeuScentsTM "Odor Eliminator and Pet Stain Remover" can now be found on Amazon. This product will not only work to remove pet odors, it can be used on any foul odor. Industrial applications could include sewage facilities, feed lots, locker rooms and any other environment where foul odors might be present.

Please visit the EES company website at www.eesokc.com.

Further announcements will be forthcoming.

Contact:
Scott Shaw 800-635-7716
info@eesokc.com

It's a whole new ballgame. I know roughly what business we're in but has anyone talked to the company? What do revenues look like? Are they profitable?

I'm happy to be out of the natural gas/laboratory services business and I hope the Shaws are no way involved in our new company.

Well, yes and no. Here's what he wrote in his Feb 29, 2016 SA article:

Conclusion

In my original article, I ballparked KTOV's valuation at $22.50 per share. That valuation assumed KTOV took KIT-302 to market on its own and therefore, included additional equity financings and a concomitant higher share count on which to base the per share price. It also assumed a weaker marketing capability and therefore, lower peak sales. In this article, I've estimated KTOV's valuation on the idea that it sells KIT-302 to a large pharmaceutical company and I've provided some comparables to ground this valuation. (Nonetheless, there are a lot of assumptions here, particularly the peak sales numbers and the DCF inputs.) The comparable valuation method gives a share price target range of $13 to $29 per share, which corroborates the initial $22.50 per share target. As a result, I continue to hold KTOV as one of my favorite longs, and am hoping for a big payoff within the next four years or so. Indeed, after performing this research, I think it's likely that one of the companies mentioned in the article will buy KTOV sooner rather than later - with Pfizer (Celebrex's developer) being my front-running candidate.

New SA article by Amit Ghate this evening. He's holding to his $22.50 buyout target.

http://seekingalpha.com/article/4032938-kitov-pharmaceuticals-precision-study-shelf-registration-create-buying-opportunity

This Black-Scholes model indicates a fair value of $1.98 with the common at $3.46 (today's close). I calculated the annualized volatility at 73% using one year of historical prices from NASDAQ. I assumed a risk-free return of 3% but the fair value isn't all that sensitive to it.

Here's the link

Overhang got resolved with this morning's announcement of a rights offering. 2.5M units (stock and warrant) to raise about $10M. Hopefully, that'll last them 'til the cash starts rolling in.

So, what's with the 13D that was filed Friday afternoon? "Activist Acquisition of More Than 5% of Shares". Can anyone explain what's going on?

https://fintel.io/doc/https%3A%2F%2Fwww.sec.gov%2FArchives%2Fedgar%2Fdata%2F1594124%2F000110465916158130%2Fa16-21774_1sc13d.htm

Thanks for that reply.

So, to clarify, the ADSs traded on NASDAQ are the same shares traded on the TASE but in 20-share 'sets', if you will. So, does it follow that a single ADS vote in December will have 20 times the vote of a single ordinary?

Here's a question that's been bothering me for months: We know that each ADS 'wraps' 20 ordinary shares that are traded separately on the TASE. So, for instance if I owned 100 ADSs, they would represent 2000 ordinary shares. But those 2000 shares are owned by other stockholders, correct? Will those stockholders also have a vote at December's meeting and, if so, how will they reconcile the ordinary votes and ADS votes?

What am I missing here?

Well, I took a stab at cleaning up that 'awful translation' as best I could. I didn't do any checking of factual content and some phrases were ambiguous at best and I had to use some judgement about the author's meaning or intent. I found paragraphs 2-4 were especially confusing and I welcome any help that anyone can provide.

[1]Two weeks ago Kitov Parma completed a secondary offering totaling $12 million. The Company issued one share and a warrant at a negotiated price of $3.40. Unlike the IPO which yielded early losses to investors, the current offering was positive from day one and even now is showing the investors a gain of about 14%.

[2]Today (Haute Stokes?) revealed who the anchor investor was in the transaction - they purchased $6 million in shares and warrants of Kitov. The entity that purchased the stock is a hedge fund named Sabby Capital. Although the deal should theoretically make Sabby a major shareholder in Kitov, it will not happen. (This is part of the issue.?) Most investors sought to buy shares and warrants as a regular deal. However, Sabby chose the option to pay $3.39 and get unlisted warrants exercisable for shares of the company for 1 cent. Since Sabby currently holds warrants – it is not an interested party.

[3]Sabby is a hedge fund with assets of $2 billion. Sabby is also Israeli and is a stakeholder in a variety of companies such as Bioline, MEDIGUS and PLURISTEM. Sabby is also an investor in Intec Pharma and currently holds approximately 6% of its shares. Sabby’s Israeli holdings of each portfolio are not material. However, it is likely that some of its holdings of financial and Sabby are part of the investments are strategic.

[4]It is still unclear how Sabby sees its investment in Kitov. Also, until the warrants are exercised at the gate 1 cent - it will be impossible to know whether the company is working with paper. Either way, it does not really matter. Kitov now has another $12 million in the bank and it may serve the same promoting activity.

[5]You may ask why Kitov needs the money less than a year after she raised $12-13 million in an IPO. There are two reasons for the current round. First, Kitov doesn’t want to be dependent on a single product. It is likely that some of the money raised will go to finance the purchase of a new product investment portfolio. This step is right, necessary, and will cause Kitov to become more interesting in the eyes of investors. At the moment , I understand there is no concrete deal on the table - but that could change very quickly.

[6]The second reason Kitov may want these funds is to strengthen its bargaining power when dealing with pharmaceutical companies regarding KIT-302’s commercialization potential. When Kitov brings a strong balance sheet to the bargaining table, its power in any negotiation increases. It creates a threat that it will market the drug alone since it has the resources. If this does not happen, of course, Kitov will have to find a partner to market the product. However, it is still better to negotiate from financial strength than winding up a transaction that closes under pressure.

[7]The real test of Kitov now is to get a partner to market the drug - and put an initial amount of $10-15-20-25 million to the Company for the product. Any number wins. At the same time, you can expect Kitov to file an NDA to the FDA in the second half of the year. We will continue to monitor and update.

I believe our company is prohibited (by contract) from naming names.

Who else could Lenovo have gotten this flex display technology from? Maybe developed it in-house?

After doing some research this morning, I suspect Lenovo is one of our customers. They have recently demonstrated a couple of concept devices -- a bendable smartphone called the 'Cplus' and a foldable tablet called the 'Folio'. If you google them, you'll find some pretty incredible videos posted within the past four days.

You're right and I apologize -- I didn't see the release this morning.

Regarding your question, I have no idea why the offering was priced at $1.50, $0.58 below yesterday's close.

Maybe someone else on this board can help us out.

The offering hasn't been priced yet. The stock price is down AH as a market reaction to the news.

If you read the prospectus released today, the number, offer price and delivery date of the shares/warrants are left blank. Common practice. I hope they put the proceeds to good use. Meanwhile, I'm bummed but I'll get over it -- I'm holding for the long term and we'll be okay.

Maybe this has been posted before,
but I found this link with a quick search -- may be more out there:

http://stks.freshpatents.com/Unipixel-Displays-Inc-nm1.php

It's only a list of patent applications (and a partial one at that) going back a few years. But, it's a start.

Thanks -- that explains it. I appreciate the help.

And, to simplify, multiply the ILS quote by $5.28 to get US dollar equivalent, as long as the exchange rate doesn't change too much.

Btw, the Google currency converter can be found here:

https://www.google.com/?ion=1&espv=2#q=israeli%20ils%20to%20dollars

Thanks in advance for your help.

So maybe someone can help me out here -- as I write this, Kitov shares on the Tel Aviv exchange are selling for 129.3 ILS (Israeli New Shekels), up over 12%. You can find that quote here: http://www.bloomberg.com/quote/KTOV:IT

One ILS can be exchanged for .2641 US Dollars, so 129.3 x .26 = $34.15 per Israeli share! Obviously, not correct. But wait, there's more -- each ADS that we trade here is a bundle of 20 Israeli shares, so 20 x $34.15 = $683, again, obviously not correct.

The math is pretty simple, so I don't think I screwed that up. Could it be that the quote should be 1.293 ILS? If so, that would put our KTOV at $6.83/US share.

Can anyone straighten me out?

I also saw it. It looked like the offer was 'stuck' on 100 shares but the volume kept increasing. Btw, I'm sometimes able to buy small amounts of the warrants from my broker (Vanguard) between the bid and asked and the transactions have no affect on the level 2. I wondered if they have their own inventory and was filling my orders 'off-exchange'.

Navydude4 said:

But who else would pay .85 per share for a pink sheet company that has already stated it is only worth .55 per share and hasn't produced any financial statements to back that up?

I need to correct you: The PR didn't state that SNDH's worth was .55 per share -- rather its accountants determined that to be its cost basis for tax reporting. It has nothing to do with fundamentals -- only SNDH's price at the time the dividend was announced. SNDH closed at .55 on on that day. It's worth (or value on a fundamental basis) could be far less. From the PR:

The value was established by H-Quotient's auditors based upon the PRICE of Standard Holdings Group Ltd. at the time the dividend was announced, February 17, 2005. Therefore, the Standard Holdings shares paid as dividends are being treated as $.55 for tax purposes (empahsis mine).

Also, you stated:

Nobody would buy SNDH right now at these prices unless they had to.

Or unless they thought that SNDH was going to sell at much higher levels in the near future.

Roy

Res,

HarrisDirect delivered. See my post 3334.

Roy

Res,

HarrisDirect came through this morning as well. My SNDH shares are now in my account.

Roy

HarrisDirect still hasn't delivered although they say tomorrow (the 28th) is the day. We'll see.

Roy

Zano wrote:

why don't they just create some sndh shares out of the blue then so they can cover?

I expect some of that will be going on as well. According to Bulldog (on another board, I think) a couple of weeks ago, DC set things up so if they do naked short SNDH, they will be easily exposed.

In any case, they aren't scrambling yet (imo) -- but it appears that's what the brokers are doing.

Roy

Res wrote:

Question 1: If there is a share sold for every share bought, is it possible for naked shorting to create a situation where the aggregate number of SNDH dividend shares needed by the shorts/brokers to cover the dividend is greater than the aggregate number shares issued at the 1:10 ratio (Approximately 4 million issued by HQNT)?

Question 2: Are the shares issued by HQNT different than the shares that the shorts have to replace? How are these shares different and how are they treated, covered by shorts, bought by brokers, etc?


OK, I'll give this one a crack:

1. Think of shorting (in general) as creating shares out of the blue, if you will. They were never shares that the company issued, but are in the float, nonetheless. Assume that officially 30 million HQNT shares are outstanding and DC releases 3 million shares of SNDH for dividend purposes. Also assume that HQNT has been shorted (naked or otherwise) to the tune of 20 million shares. So now the owners of 50 million shares want their 5 million shares of SNDH but there are only 3 million to go around. Since the owners of those additional 20 million shares are also expecting their 2 million SNDH shares a shortage exists. Remember the game "musical chairs" you played as a kid? Same principle, but a lot fewer chairs. I wonder what the price of SNDH will be when the music stops?

2. No, a share is a share is a share. There is no difference between a share issued by the company and a share created by a short. When I buy a share of HQNT stock I shouldn't care if the seller was a naked-short European. I'm guaranteed that I will receive all the rights and privileges of any other stockholder -- including dividends.

I hope this helps.

Roy

Michael wrote:

There is not enough shares to give out so the brokers are going to have to buy them tomorrow.

Were you actually told this by your broker?

Roy

Glad to contribute to the volume spike.

Same here.

This would be a perfect time for DC to release a PR or two (and maybe even the long-awaited financials).

Good luck to all.

Roy

Steve wrote:

I don't think that you will see any large hands being played until we actually see the distribution of the dividends on HQNT's end. Then any shorts out there will know it's put up or run time.

By the time the distribution is made, it'll be too late for the shorts -- they can no longer crawl out of their mess by covering HQNT. And, there won't be enough SNDH shares to go around if they try to buy them on the open market.

If your scenerio plays out, a lot of us longs won't be getting our dividends and we'll have to scream at our brokers to deliver our shares. Who knows where SNDH's PPS will go in the meantime.

Interesting, indeed.

Jim wrote:

I know many feel Cohn made a mistake on the dates and may not catch the shorts, but my common sense tells me this was very carefully thought out with many long round table dicussions with others who are very knowledgeable in this matters.

I agree. Perhaps what we have been viewing as absolute lunacy on DC's part (the lack of transparency, pink sheets, etc.) is all be part of a grandiose plan that finally reaches its culmination next week.

OK, DC may be crazy, but he's also very intelligent and has many intelligent friends and associates. I just can't believe that what we've been seeing for the past 18 months has been blunder on top of blunder, although he may want it to appear that way.

I bought more HQNT this week and I may buy more next week depending upon the price action. I think DC is going to release positive news concurrent with the dividend -- maybe even the long-awaited financials to help give the PPS a boost. So, even if the squeeze fizzles, HQNT shares may explode on the news alone.

I've got my fingers crossed.

"Then over the next week there should be a significant increase in volume in SNDH!!"

That's the problem -- for the shorts. I don't think there are enough SNDH shares to go around. I think the message in SNDH's b/a spread is that the market makers don't have any inventory -- I may be wrong, but I don't think are are any (or many) shares left in the float.

The shorts HAVE to cover HQNT or the consequences could be devestating to them. Remember, they are legally obligated to pay the dividend. If they don't, their brokers are legally obligated to buy SNDH in the open market on their behalf. The brokers will pay whatever they have to pay (and charge their short clients accordingly). So, maybe the shorts will also be pressured by their brokers to cover before the 25th.

This sure is getting interesting.

caesar00 wrote:

"If there are shorts, covering their position will not eliminate the payable dividend they owe (the SNDH stock). If they were short on the payable date, they owe the dividend, irregardless if they are still short or not."

That's what I thought, too, up until this weekend. That's what all the posts were about (particularly those from Uriah Heep). The shorts can cover their HQNT shares through 4/24 (the day before it goes ex-dividend) and relieve themselves of the SNDH dividend liability.

We're all waiting in eager anticipation for the 25th. I bought a few more HQNT today adding to my already sizeable (for me, anyway) position. Even if this dividend event fizzles, I believe DC has lots of backup ammo he's holding in reserve, ready to release between now and the 25th.

Good luck to all of us longs.

You are right, shorts can easily cover and we haven't seen any evidence of that -- yet. If there are any significant number of HQNT shares shorted, we'll know it by the price action in the next two weeks.

You may not believe there are any HQNT shorts out there, but DC thinks there are, and he should know. He's gone to a lot of time, trouble and expense to thwart them.

The SNDH dividend puts a roadblock in the short's path. In two weeks we'll see if they come to a screeching halt or find a way around it.