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that's why I sold 1/2 of my holdings. I figure others my have also
the share price is dropping right now because investors want funds to buy the dow which has bottomed and is now going back up.
excerpts:
Q: Why is the Company implementing a reverse stock split?
A: Our Board believes that effecting a one-for-twenty five reverse stock split at this time is in the best interest of shareholders and for the following primary reasons:
· First, our Board believes that we have an insufficient number of unissued shares to allow for capital to be obtained from the investment community and to allow for subsequent growth.
· Second, our Board believes that the current market price of our Common Stock may impair its acceptability to many investors, including institutional investors, professional investors and other members of the investing public and that the reverse stock split will encourage greater interest in our Common Stock by the investment community.
· Third, our Board also believes that potential executives and other employees may be less likely to consider working for a company with a low stock price, regardless of the size of the company’s market capitalization. If the Reverse Stock Split successfully increases the per-share market price of our Common Stock (of which there can be no assurance), the Board believes this increase could enhance our Company’s ability to attract and retain key executives and other employees.
· Fourth, to the extent that the reverse stock split does succeed in attracting more investor interest in the stock, shareholders may also benefit from improved trading liquidity of the stock.
-4-
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upon effectiveness of the reverse stock split, the total number of our common stock outstanding will be proportionately reduced from 494,170,082 shares to approximately 18,966,803 shares.
Finally, it is anticipated that the price per share of our common stock will increase to reflect the effect of the reverse stock split. Our stock price tends to be volatile, and it is not possible to predict the post-reverse stock split price exactly, but it should be approximately twenty-five times the pre-reverse stock split price. (For example, if our common stock closes at $0.05 per share immediately preceding the reverse stock split, it should trade on at about $1.25 per share post-reverse stock split. However, the actual price could, of course, be higher or lower.
The reverse stock split will NOT:
- Affect any shareholder's percentage ownership interest in the Company;
- Affect any shareholder's proportionate voting power;
- Substantially affect the voting rights or other privileges of any shareholder (unless the shareholder holds fewer than twenty-five shares of our common stock).
Q: How will the reverse stock split affect the market capitalization of the Company?
A: The mechanics of the reverse stock split will have no effect on our market capitalization. It is impossible to predict the performance of the stock price after the reverse stock split, however, and changes in the price due to trading would, of course affect the market capitalization.
Q: What are the risks associated with implementing a reverse stock split?
A: Our Board took into consideration a number of negative factors associated with reverse stock splits, including: the negative perception of reverse stock splits held by many investors, analysts and other stock market participants; the fact that the stock price of some companies that have recently effected reverse stock splits has subsequently declined back to pre-reverse split levels; the fact that having a greater number of outstanding shares aids employee retention and recruitment by allowing a company to offer option grants for a larger absolute number of shares; and the costs associated with implementing the reverse stock split. The Board, however, determined that these negative factors were outweighed by the intended benefits described above.
Q: When will the reverse stock split take place?
A: The reverse stock split will become effective on the date the Amended and Restated Articles of Incorporation effecting the reverse stock split is filed with the Delaware Secretary of State.
Q: Why did the Board choose 1-for-25?
A: Our Board selected the ratio taking into account a number of factors, including the trading price and market for our common stock at the time of the reverse stock split, the prices of peer companies, and overall stock market and economic conditions.
Q: Did the Board consider any other alternatives other than the reverse stock split?
A: Yes, the board considered several alternatives including (1) an increase in the authorized shares of the Company, (2) a loan collateralized by the assets of the Company and (3) a partnership with a third party by selling an interest in the Company leases. The Board has considered all of these items for some time and has had discussions with professionals advising them of the advantages and disadvantages of each of the above alternatives.
First, while an increase in the authorized shares of the Company could alleviate some of the existing problems the Company is facing, the board believes that this would not be in the best interest of the Company from a long-term perspective. A greater number of shares outstanding will have a negative impact on anticipated future earnings per share of the Company and the board believes that a reverse stock split would still be required in the future. Additionally, potential capital partners that are in discussions with the Company will not participate with an increase in the authorized shares of the Company.
Second, the Company has had discussions with potential lending parties and is not a viable candidate for a loan based upon the current condition of the Company. Oil and gas equipment is discounted significantly by potential lenders in relation to their ability to liquidate and obtain proceeds. Additionally, potential lenders will require the issuance of warrants to provide them with a rate of return they require and the Company has no ability to issue warrants because of the lack of unissued shares of Common Stock. The Board believes that the Company’s ability to obtain a lender in the future will be increased with the requested reserve stock split and the ability to issue warrants.
Finally, the Company does not believe it is in the best interest of the shareholders to sell an interest in the Company leases. The Company has had discussions with third parties and the requirements by them for the transaction are considered onerous and not acceptable.
-6-
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Q: What happens if the reverse stock split is not approved by the shareholders?
A: The Board believes that if the recommended reverse stock split is not approved by the shareholders, the viability of the Company as a going concern is at significant risk. Additionally, if shareholder approval is not received, the Board believes that the Company will have no avenue to attract required capital and shareholder value will be greatly compromised.
About Ludlow Energy SmallCap Index
The Ludlow Energy SmallCap Index is a basket of U.S.-traded small-cap alternative energy stocks. The Index provides both institutional and individual investors a gauge for tracking the day-to-day performance of small-cap alternative energy stocks. The index is designed for investors who have a long-term bullish outlook on the renewable and alternative energy market. The Ludlow Energy SmallCap Index is owned and operated by Ludlow Energy Fund, Inc., based in New York City. Additional information is available at www.ludlowcapital.com/indicies/.
could be, but that is what we were thinking yesterday about 6. In my experience, there is a spike before the pullback. AMEP pattern has been steady gain, accumulation.
there is definitely resistence at .06 but pullbacks, so far, have been temporary. Apparently buyers are looking for little pullbacks to increase their positions.
Oil Stocks were weak today - - - NEW YORK (AP) - Shares of integrated oil companies dropped Tuesday, as crude prices slid more than $2 per barrel.
The overall Amex Oil Index fell 1.6 percent, with all 13 of its component stocks marking declines. A barrel of crude dropped $2.35 to settle at $58.40 a barrel on the New York Mercantile Exchange,
yes, I notice that my gainskeeper JPHC are now converted to PAVC also.
nukuhiva: Will you give me the address to send my complaint? I'll just re-write your letter a little and send it in. I have about 2,000,000 paiv.
Thanks. Anyone considering investing should visit their website and see what they are offering, it really is impressive.
Bigdog: all of the above if customers are pleased with the technology. Anyone on this board actually tried voicebox? I e-mailed them a few questions and the customer service was very responsive. My computer wiz son says that the technology is in it's infancy and not as reliable as regular phones. I don't know. Any thoughts? If it is reliable, their service plans and the features are very attractive. I have 100K shares.
Most of my BB's have been down since the general market correction. I think sometimes the psychology is to look for a reason to sell when risk tolerance is affected by world events. A reasonable S-8 is not a bad thing considering the options. I had a limit buy in Friday at 7.5 and was pleased that I picked up a few more shares.
We need a change. The most knowledgeable person who is invested in SEVU but can also be critical - whoever that person is. It would be nice to have someone who lives in that area. Diverdan is fine. Almost anyone would be a better choice than Shamus.
Everyone who purchased during the class period is a member of the class and should receive a Notice of Settlement and proof of claim form you will need to complete in order to participate in the settlement. Those forms should be mailed out in the next two months or so.
-----Original Message-----
From: Proxime@aol.com [mailto:Proxime@aol.com]
Sent: Wednesday, July 31, 2002 9:53 PM
To: stoll@cmht.com
Subject: re: seaview
Will persons who purchased SEVU shares during the period between March 30, 2000 and March 19, 2001 automatically receive compensation, or only those who joined the class action suit officially?
----------------------
If I receive any shares, I have no plan to sell. I wonder how many others will simply hold their shares?
ENOVA: Anyone know if this has any value?
Francois:
Are you cautiously optimistic? The last filing had some ugly trees, but the forest looked better - , very professional, didn't look like the kind of report that a company would bother to assemble if bankruptcy was just around the corner. Of course, there have been rumors of big deals for years, but it does seem like more than a pipe dream at this point if the CA suit gets resolved (without massive dilution). Add to this insider buying and now a little spike. What's up?
"Commercial systems utilizing IRFS technology are deployed in parking lots and in-store loss prevention applications".
Deployed is slightly different than "being tested". Anything new here?
I think if I were CEO of SEVU, I would want to settle the class action before, not after, signing new contracts.
Seems to me that anyone actually holding SEVU must content themselves with the basic fact that the company does appear to still be in business, they have a unique and patented product, their CEO was recently at a trade show rather than out looking for a new job, and there is always the possibility of landing a decent contract. I am totally prepared for the company to go out of business, but perhaps they will survive. I don't know. If I didn't sell at $25, I'm not selling at 25cents or .o25 cents. I'm going to stick around unless the situation becomes completely hopeless. That's the chance anyone takes with a BB stock.
Broker, you report some amazing events:
Crush of people fighting to get a 100+K fliers - 4 major meetings with big companies to discuss large orders, 1,000,000 Secureview a year sales through RCA.
To the average Joe reading these boards, sounds way over the top to be true. I can't ever think of any thing I could imagine to add unless it would be people bringing in buckets of money and handing them to JR.
I would love to believe what you say. Anyone else there to give a second opinion.
I'm not selling because i know if i do, within a few days, it will take off. That's been my personal history of selling any stock. Because the Secureview is more expensive and more sophisticated than the x10, it may take longer to catch on. I like the idea of having surveillance without anyone really knowing. I like the idea of a camera in a light bulb, it is so simple an elegant. Insider buying - yes, they could be wrong, but it's not as likely. If SEVU was going under, I think you would have seen some major defections. So, I'm holding to 50 or to 0. Best to all. Prox.
New Your Times Sunday 11-25 "How much of a surge for security stocks?"
Excerpts
Americans spend a lot on protection. David Hale, chief economist at Zurich Financial Services, estimates public and private sector spending on security at $250 billion a year. In the aftermath of September 11, those numbers are likely to rise. Mr. Hale, for one, figures that the spending could increase 10 to 20% over the next two years. Prices of some security products and surveillance company stocks have soared since the attacks.
Bizz: makes sense. Also, probably people are reluctant to plop down that much money for a camera manufactured by a company that they have never heard of. Once it is in stores, especially if they have one on display or that can be shown to a customer, sales will likely improve. Then there is word of mouth. My point is that just because Sview current sales are a disappointment, doesn't mean it will never sell. Still, it would be nice to know the actual story behind the 9 million and why that fizzled.
paulmk: With the caveat that this is a highly unusual situation because of what happened to Rich, so possibly some benign explanation. Where there is any ambiguity, there will be speculation, and if the stock price is down, the speculation will naturally be negative. Still, SEVU was hovering around .4 or so for a while, so this is a huge increase even at the 7-8 level.
Sure would be nice to know for sure why SEVU is rising so dramatically. Hard for me to imagine that the rise has nothing to do with Rich - I was expecting the stock to plummet and it did initially the day after. If it is short covering, then why are shorts covering? Is this also a reflection of some major new news with insider buying? FG speaks of a retrenchment which is expected, but frankly, I was expecting a retrenchment today and it never materialized. I think it is a combination of Rich no longer being involved and some material developments that are bullish. JMHO. Prox.
Anyone care to speculate on the reason for SEVU's sudden strength?
Deepest condolences to the McBride family and friends. This is a shock to us all; a terrible shock to family and friends. IMO this is not a good time for any accusations, but a time for prayer and meditation on the gift of life, the temporary nature of all our worldly pursuits, the eternal love of God which is the supreme reality.
Tony, nice post. I believe that a camera in a light bulb is one of those things that people are going to think is totally cool and may catch on as a trendy thing aside from the technical aspects. The fact that GMA and Bloomberg's has picked it up shows to me, that they think it is something their audiences will find interesting. I am still hoping that the PP can be restructured and some of the changes Francois is working toward can be made to where the road ahead gets a little less rugged. Prox.
Francois: "Florida has Laws against that and they're going to be used to try and rescind the PP in its present form..." You are saying that the laws of Florida will be used as a basis for a lawsuit to rescind the PP - a lawsuit which you are organizing? Hopefully management will feel some heat and make some changes.
BTW, I don't think it is fair to characterize present management as "losers" - I think they have done a pretty good job of ramping up production and establishing some solid associations. + the economy sucks right now. I'm hopeful for a profit at some point this year.
Prox.
Seahag: Thanks for reminding us of what is really important in life. PS, many of the issues Bill refers to were fully in place when he was making positive posts; with the exception of the PP. The way I look at it, my decision to hold onto a chunk of SEVU was made over a year ago when it was in the 20's. As to the PP, I'm going to wait to see what happens and hope for some type of acceptable resolution. I still think that a camera in a light bulb is such a simple and totally cool idea, that it will catch on.
no, kiddin. "From a remote-controlled smoke alarm, to a super surveillance camera that fits inside a lightbulb". Anyone know how SEVU landed this exposure?
Did you ask why?
Somewhere between misleading and positive spin. In light of past problems, bad judgment in my personal opinion. Anyway, why prop up the price now; to reassure investors? My issue with the PP is that I can't see anyone wanting to pay 2-5 dollars for sevu when insiders can buy at 10 cents.
Perhaps at some point SEVU will have a line of cameras, some more geared and priced to the home/hobby market, and others commercial.
The small upward move coupled with generally low volume during this time seems odd. I'm sure there are many interpretations, but wondering if the general position among large holders is that there will be some acceptable resolution to the current issues.
Francois: what kind of time frame do you invision for this to come to a resolution?
Francois: you are saying that the term revenue shoud have been used rather than income. The difference between positive spin and misleading can be a fine one.
I think it is best to distinguish between endless bashing and bashing coupled to a constructive plan.
As I understand FG's position, he is working to reverse the PP, and to make the BOD more responsive to the average stockholder. Aside from all the character issues being discussed, if that happens, the average stockholder will benefit.
The failure rate and tech back up are different issues, but seems to me that the most constructive way to handle the criticism is to simply look at how tech assistance is managed and see if it needs to be improved.
My opinion only. Prox.
Cabos: By the same token it wouldn't make sense to mass produce without any buyers. In any case, I am more interested in trying to see into the future, what's going to happen scenarios. Best case seems to be changes in PP, continued marketing successes, production to meet demand.
Seahag, I'm sure everyone respects and appreciates your efforts to be fair and constructive.