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I think you're not alone. That risk has been around for awhile now, though, and the hospital stocks have done ok, so perhaps RCM will, too, regarding that risk.
I've often wondered if there's a silver lining there, too, if customers and prospective customers need help w/ their rcm even more when conditions are tighter.
I suppose R1 could also target health care providers with a small mix of Medicare/Medicaid, to help reduce the government risk.
The fast run from $3 to $4 is being unwound. Wonder what produced that run up, as it has not been sustained.
Ascension expansion; 2020 forecasted midpoints raised; 2017 guidance at high end of range.
Result: RCM up big in a few after hrs trades.
Well, a pullback is in progress.
So far, anyway, the stk doesn't want to go lower than the $3.80's. Pretty strong support given how far we came, so fast.
Yet another strong day for RCM, at least so far---up almost 5%, on big volume. Almost at $4 now. The way it's looking, we could test that today.
My guess is that big players have started getting in recently, after word has been getting around that the turn around at RCM looks to be for real.
RCM's looking great, from several perspectives:
---it has broken out, with the next major resistance over 50% higher from here
---it's still off the radar. Only covered, barely, by one or two small-firm analysts. Investors chat rooms are silent, as was the Company for the most part for awhile now, as they focused on cleaning house and turning this thing around. Feels like hardly anyone knows or cares that things seem to have dramatically changed for the better. I love getting in when that is going on, as eventually the world will find out and the move from off the radar to on can be huge.
---the recent analysts conference webcast went very well, IMO. The Company is looking to greatly expand their sales efforts going forward, now that the Ascension deal has moved forward nicely. Guidance assumes no such sales, so this stock could keep moving up big if they expand business with current customers and eventually land some big new accounts, which they admitted they expect will happen starting this year.
---longer-term, there's still plenty of bounce potential left. The stock once had a mkt cap of about $3bil, which it mostly achieved during an impressively short 5 month burst in late 2010 and early 2011. Not at all saying that history will repeat, but if it does, with 250mil fully diluted shrs O/S now, that's about a 4 bagger from where the stk was just a couple weeks ago.
So, of course I bought shares and have kept adding!
Yes, Saleen the company and SLNN the stock have been and continue to be disasters. This has been a wipe out machine. Even the senior, private money refuses to put any more capital in. And the company hasn't even been able to file their 10-K yet, much less the current 10-Q.
Viv, you might find this of value:
"The investment fraud law firm of Fitapelli Kurta is currently investigating claims against the broker-dealer firm, Maxim Group, LLC.
Maxim Group, LLC has a long history of customer and regulatory complaints."
http://tinyurl.com/zs9...
A chat window appears and asks, "Thanks for contacting Fitapelli Kurta, have you lost money in an investment?"
Some examples they site of Maxim's bad deeds:
Maxim Group, LLC or its brokers have been fined by FINRA for the following securities and sales practice violations:
Most recently, on August 4, 2014, Maxim Group, LLC was fined $5,000 for effecting short sales in securities for its own account without borrowing the security as required by SEC Rules.
On June 7, 2013, Maxim Group, LLC was required to pay $95,000 as restitution to its investors for failure to execute orders fully and promptly on 49 separate occasions.
On March 28, 2011 Maxim Group, LLC was fined $10,000 for allowing one of its brokers to excessively trade a joint account held by two elderly clients.
On October 29, 2010 FINRA fined Maxim Group, LLC $75,000 for failing to use reasonable diligence to ascertain the best market and buy or sell in that market in order to grant a favorable return to their customer. This occurred in 39 separate transactions. Additionally, in 24 instances, they failed to execute orders fully and promptly, in violation of NASD rules.
On March 24, 2010 Maxim Group, LLC was ordered to pay $82,500 in restitution to its investors for incorrectly reporting investments and executing reports that contained inaccurate, complete and improperly formatted data.
Viv, that's a very interesting development---if Continental was told by Axion to delay the release of the post-split shares.
I've seen similar behavior in other nano cap stocks. Usually it's because the sellers might have a block minimum shares, such as 5k. Just a guess, though.
No problemo.
A very interesting thing to me will be if Axion runs out of shares to give the convert guys. I haven't done the math, but before the reverse I think they had something like 28mil shares left that they could issue.
Liquity is the most important thing the convert guys need---it's the one material risk in their investment. Last time Axion tried to get shareholder approval for allowing >100mil shares authorized, they were denied. With the low price of AXPW, and declining rapidly, the math might show that there won't be enuf shares to satisfy the convert guys' request for shares. At that point, you would have to look at the deal terms to see what the cure is for that default. IIRC, the first deal required Axion to keep requesting shareholder approval for more shares, which, if applicable to this deal, might keep getting denied. There also might be a provision that prevents release of addition escrowed cash, which could be a problem for Axion's liquidity. I suspect that might, in turn, accelerate a deal with the Chinese.
My assumptions:
Because the discount convertible holders sell before they take share delivery, knowing their sales will be covered in a few days once Axion delivers their shares. I suspect the share count as of, say, today, is substantially higher than last Friday.
While I read Axion's first discount convertible deal terms a few years ago, I haven't read the current deal terms. If the current deal is very similar to the first one, it probably has a max sales per day provision, meaning Maxim has an incentive to pump up the volume so their favored customers can sell as much as possible as quickly as possible.
The first deal also had a following of shorts, knowing that such deals are called "death spiral deals" for good reason, especially when amplified by reverse splits. Some of the sales are probably from them or similar investors.
The OTC, while not quite as wild westy as it used to be, can still be that way. Perhaps some especially bad behavior is also happening.
IIRC, there is still a lot of principal left on the convertible notes. Those guys are not in the business of holding. They convert and flip as quickly as they can.
With the stock price back to low levels, expect millions of new shares to be issued over the coming months. It's why no serious investor does the following mkt cap math: 292K shares O/S * $.15/shr = only $44K mkt cap, as everyone should know that millions more shares are coming soon, and likely tens of millions more. Axion knows that, of course. It's why they issued the recent PR 3 times. Trying as hard as they can to minimize the new share issuance to the convertible vultures. Get anything out there that they can, anything that can be viewed as positive, anything to help prop up the stock price, NOW. Material news 3 months from now won't help the current retail investor, with the price back below a penny. They will take yet another 90%+ hit by then, needing a 10 bagger to get back to now and a 100 bagger to get back to 2 weeks ago, ad infinitum.
Some conversions of the convertible notes to common stock. This should surprise no one, as the interplay of PbC news and the discount convertible debt conversion and immediate dumping is THE determinant of AXPW's price.
Hopefully, when any investor talks to Axion, the Company is truthful about who the big sellers are and why (hint: it's the same professional flippers that it's been for years).
Thx for talking to Bogan, Vivavegan. Did he say if the (main) selling investors are the convertible notes investors? They're the obvious candidate, of course, but just wondering if Bogan will/did say that.
Mcab40, that biz plan would be shorted to oblivion. A lot of real investors would love to have that chance.
rofl, Mcab40. This chat room sure is entertaining every now and then!
Of course you're right, Mcab40.
Almost BK, death-spiral convertible debt financed stks like SLNN trade only when a buyer detaches their buy decision from the end-of-days fundamentals. Their behavior is actually an interesting area of study in behavioral finance.
SLNN is such an all-around disaster that IMO only 1 or 2 clicks away from no-bid is appropriate.
I will admit, though, that when a company has not only their back against a wall but their front and sides, too, it can be a kick to day dream of ways to defy all those odds. Team up with Harley D and hit that crowd? Maybe they can go all-electric and become meaningful again? Maybe China is so far behind us that a muscle car add-ons company can make a go of it there? Maybe they can become the performance department of an Indian auto company? Maybe a Ch. 11 and a big cash injection from the founder can somehow free up their animal spirits?
Saleen Auto has certainly produced some cool stuff over the years.
Saleen the stock investment, though, and Saleen's financial situation, have of course been awful. I'd like to read, in their next 10-Q, how they've been able to avoid bankruptcy these last few months, given their last 10-Q that said SM Funding stopped funding. Maybe thru more of the same--stretch out pymts, etc., while they hope to get some good enough news out so they can finally get the elusive preferred stock deal done.
One of the many problems Saleen Auto has is that these days there is too much strong and superior competition. Just look at the OEMs, who have gotten really good at their own performance options, displacing and/or threatening a big chunk of the after mkt guys' business.
In addition to that growing headwind, as vehicles continue to turn more and more into tightly integrated systems, expect that "pushing out" to accelerate. Saleen's biz was much much easier when all that you had to do was bolt on a new whatever and maybe make a few simple adjustments to something else. Now, everything affects everything else. Change one major thing and you need, or will soon need, access to the computer algos controlling that and everything else. Why in the world would, say, Tesla, allow access to the company secrets to someone like Saleen Auto? A: of course they wouldn't. Certainly not to someone in as a bad of financial shape as Saleen Auto.
Everything I write on this blog is my opinion. Please do your own due dilly, and be very careful investing in almost no-bid stocks.
SLNN collapse fact # 17:
Tesla develops and sells its own performance versions of its vehicles. It has no need for any almost-bankrupt pink sheet company to help it build its world-leading electric vehicles.
SLNN collapse fact # 6:
Even SM Funding has refused to do biz w/ this company.
SLNN on bankruptcy watch. Could be any day now.
No bid coming?...That means no way to get out.
For sure...SLNN is a joke
She's about to go no bid....SLNN
The question is: do they restructure in BK, or liquidate?
Since the fundamentals behind SLNN are so ridiculously bad that they're fun bad, the only angle for a long time now for any long is to pump and hope and pray for a blind drunk to come to the rescue.
That stocks like these are allowed to trade is a shameful inconsistency with the much better regulated other things that can easily be highly harmful to people, such as prescription drugs, explosives, construction, and the like. Even driving is much better regulated---you have to at least pass a couple easy tests before you're allowed onto the roadways with other drivers.
Just open a brokerage acct and away you go. Then after the publicly subsidized student loan money has been squandered on penny stock gambling, simply move on to public housing. It's not right to burden the taxpayers with the consequences of bad behavior that's so easily avoidable.
Realistic ways to avoid no bid:
1) Dramatic fundamental improvement. Not made-up rumors by some boiler room penny stock pumpers but actual metal, glass and rubber that a lot of paying customers actually want to buy.
2) Close the preferred stock idea into a deal. Hard without 1), though.
3) Reverse split. They're probably hoping 1) and 2) happen first.
Bingo. The allure of easy wealth is what draws in the retail penny stock investor. Same old same old. They get all excited, get in, then get hit with a 90%-99% down round of converts or other bad news. Then they get out, only to be replaced by a fresh crop.
The place to be is in the PIPE deals themselves, but that's a tough hurdle for a retail investor, between not having enough capital or not allowed in to the club by the agent, even if they do.
But the situation here may provide an opportunity for a retail investor to get in. I strongly suggest, for any serious investors here who also have a decent amount of capital available, talking to the Company about participating in a financing deal. Sure sounds like the Company is a motivated seller, given that SM Funding is in default in its funding commitment, and the lack of the hoped-for preferred stock deal. The window is wide open. Heck, you might even be able to dictate terms, given how desperate the Company might be.
The death spiral convertible debt holders need liquidity to get out. I suspect that prices lower than $.0002 scare them because it's so close to no bid, and no bid scares retail away. Gotta keep the retail buyer around, because no legit institutional money would ever venture here. Even the death spiral guys need higher prices, for any next round. Another 99% drop is mathematically impossible from here while maintaining liquidity. That's why I think a reverse split is inevitable. Something like a 1:10,000 split to bring the share count down to 8.3 million from the projected 83 billion, but more importantly drive the share price back up over 10 cents.
BK red flags are flying all over the place. The latest is the disclosure in the new 10-Q that even SM Funding refuses to front them any more money. That's a new deal that quickly went into default. Can the signs get any clearer?
My guess is the Company sells itself or its IP to the Chinese, for some low price. Some of the debt gets paid off, the rest is written off and the common gets nothing.
The best the common can hope for, IMO, is some other white knight agreeing to put up some money, but in exchange for more of the Company than the LOI terms.The non-affiliated common gets all but wiped out in that case, too.
It's having a nice little bump as I write this. But I think the big move will come if/when a partnership is announced, which I expect to happen soon.
Question for those retail guys who are long the stock:
Why have the Company's sales been at such a low level?
Bad, and getting worse. Not only are current common shareholders holders getting massively diluted by the convertible paper (over 2 billion shares are now outstanding), but the Company states, as you know, that should they get their hoped-for financing , then the current common shareholders will be diluted way down to only 3% of the company.
Plenty of far more successful, well-known firms folded. Times change. Situations change. Clearly, Saleen Auto is in a world of hurt. I'm beginning to wonder if they sell their IP for a song to the Chinese. Keep Steve around for public appearances, or maybe as a consultant.
It's common for struggling manufacturers to sell out to the Chinese, or at least try to. Perhaps the IP is worth more than $1, in which case maybe they'll wait.
It's tough when they don't have any money left. Negative operating cash flow for a company that can't even get SM Funding to keep to their agreement, is big trouble. In fact, how are they even keeping their doors open at all? What supplier would dare work with them at this point? Perhaps they require a cashier's check before unloading a delivery.