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http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11707092
Gary Blom signed as CEO on Nov 25 2016.
Does anyone know how many shares ECGI has issued and outstanding?
http://www.bloomberg.com/research/stocks/private/person.asp?personId=49716693&privcapId=271982243
It does appear that Mr. Bloom is the new CEO of ECGI!
Looks like an interesting company with an interesting product suite in an increasing industry of interest. Unfortunately when ever you have a company that has "billions of shares" with massive dilution dumps to fund ongoing operations it is never a good thing for the shareholders.
So glad I got rid of mine. There doesn't even look like there is room to day trade on this as it is a dead bounce every time the announce something great and then flood the market. Their approach is simply meant to fleece investors is like the story but don't know the fundamentals as Stock Barber points out. Been there done that and learnt a valuable lesson. Always look at the underlying share structure to get the real story on what the company thinks of its shareholders.
Anyone have details on the share structure? Are there preferred shares out there that will hurt common shareholders when converted?
For those of you currently invested in Signal Bay. Does the company use PIPE Financing to keep its operations going?
This is exactly what GAWK is doing. 3.8 Billion shares outstanding. I've been burnt twice now by these types of PIPE scams but I'm a newbie. I now check the company's share structure before investing in them no matter how "good" their story is.
I just sold my 23000 shares at a loss and I'm not coming back either. Check GAWK - they do exactly the same thing with 3.8 billion shares outstanding. These types of companies are using a SCAM approach to fund their efforts at the shareholders expense.
Don't expect any "disaster recovery" from this stock any time soon.
@Stock Barber
How does one get in touch with Stock Barber privately?
Arnold at networkologist dot com
@ghost008 - the share structure does not reflect what you just said. The Prefereds will get everything.
@until2017
I just dumped mine. The whole company setup appears to me to be a scam meant to line the pockets of the few company execs at the expense of shareholders. As Stock Barber says "know what you own". Cost me $1k but well worth the lesson. I'll keep an eye on it but until the preferred are exercises Gawk stock is less than worthless.
So who is buying this stuff?
Agreed, but who the hell keeps buying this shit?
But WHO is buying this stuff? That's what I want to know. Given all that is printed about the self serving share structure and the mounting losses - who is buying?
I emailed Scott directly with those comments. As expected no response. I am increasingly convinced that Scott is not in support of the shareholders that invest in this company but rather in it solely for himself and his associates.
sk@gawk.com
I put my order in at 0.0001 because my trading system does not allow me to go more than four decimals after the "."!
and on what factual basis do you base your call? Really? Just another Smoke Signal? Are you part of the Pump and Dump Gang associate with GAWK management?
Scott
I was very disappointed in the conference call today and in you personally based on our recent one to one telephone discussions and your stated commitment to common shareholders.
1. You did not talk about how much money the company is losing but rather just about revenue increases. Increasing revenues mean nothing if the company is losing more money than it is taking in.
2. You did not allow any questions to be taken by shareholders and the media which to me means that you are hiding something and don’t want to face the music of being asked really hard questions.
3. The Shareholder Structure that the company has is clearly not in favor of Common Shareholders yet you do not want to address any questions about this structure or arrangement. As such, it appears that the company Shareholder Structure is set up to pay off you and your associates at the expense of the Common Shareholder. And the fact that you personally do not want to address this makes it even more obvious that you are out for yourself and your associates through Preferred Shares at the expense of common shareholders. The minute the company makes any money it is going to be sucked out of the company through payouts to Preferred Shareholders at the expense of Common Shareholders.
4. The “note holder debt” the company has, some at high interest rates is terrible, along with the constant dilution and 350 billion Common Shares to continually dilute and flood the markets which means that the you personally and the company does not care about a) people it lends money to as note holders and b) or the Common Shareholder of the company common shares.
Having invested $1,000 in GAWK and lost most of it I’m simply going to mark this as a bad experience and write off. As far as I can see you guys are doing everything within legal rights and limits to cheat people out of their investments and show no regard for the Common Stock shareholders.
As such I would not recommend anyone consider investing in GAWK, not for the short term or the long term. And I have made that comment to others.
Everyone seems to know that GAWK is a scam because when you guys come up with new great increased earnings news the common stock takes a nose dive because of your and your note holders flooding the market and diluting it to death! And with 350 billion common shares to go you personally are going to pound Common Stockholders into the stone age at their own expense while you may eventually collect your $1 millions on Preferred Shares.
I think I’ll pass on your scam. Hopefully others will see GAWK for what it really is – your personally piggy bank.
Arnold Villeneuve
The question I have is "who keeps buying these shares" given how diluted the stock is and the fact that they have 3 billion 500 thousand share float. With that they could dilute forever and then just create more shares!
I asked the CEO why the increased to 3.5 million common shares if it was not to fund ongoing operations by dumping stock on the market from the treasury. No answer! Seems to me that if they wanted to they could just keep adding shares to the treasury and keep dumping stock until it is toxic and no one buys it!
I'm waiting to purchase 200K more for a total of 1 million and that will be my limit. Then I'm just going to sit on it and focus elsewhere until it shows signs of real life.
I'm waiting for it to hit 0.0010
order open for 500,000
500,000 shares @ $0.0015 is only $750!!!! We are not talking lots of money here. No one, including the people holding convertible shares from money they loaned the company, is getting rich here. In fact people that hold convertible shares are only hurting themselves by selling.
Stock Barber
Can you contact me. I'ed really like to hear your insight.
Arnold at networkologist dot com
His phone number is already posted on this discussion board. Just search for the CEO's last name.
Well TTomm, if you have evidence to the opposite I think everyone would welcome to here what you have to tell us all!
My question remains - who then is buying the stock that is on such a downward dilution trend?
So here is the question?
If debt holders or the company itself are dumping stock on the open market who is buying it as the stock price is being driven down?
Obviously someone sees an opportunity at buying the stock on the cheap and continually cheaper level.
That's less than $12,000 in cash. No one is getting rich here.
Given how well you keep track of this do you know how many more convertible shares are out there that can be dumped onto the market?
I called the CEO today and spoke with him personally. His explanation sounded quite reasonable to me. Some of the "investor funds" that have loaned money to the company are converting their debt owed by the company to company shares. However, one of the "investor funds" is not interested and as such they are dumping the stock they converted on the open market to get their money out. And my review of the 2015/2016 financials (although I am not an accountant) seems to indicate to me that this could go on for another six to twelve months.
I do not believe the management of the company wants to see the shares at the price they are nor do I believe a majority of the "investor funds" want to see the low stock price either. Certainly the shareholders don't. However, until those "investor funds" stop dumping their shares the dilution will continue from what I can see. The CEO stated that he is not pulling shares from the Treasury to raise money at this time.
I also am in this for the long term. I do not see this as a day trade. And I am only investing a max of $2k in this one company so for me its better than gambling at the casino or buying a lottery ticket.
If you are interested give the CEO a call. He seemed approachable and reasonable to me. But to be sure one of two things will happen - the company will move to a positive cash flow and the stock will reflect the companies true valuation or the company will not go positive cash flow and continue to dilute the value of the stock and people will stop buying it and it will die. If the latter happens no serious "investor funds" will lend the company money and non of the existing ones will ever get their money back.
Based on the following note from the recent financial statement means that dilution will continue until August 2017 in order to pay for the purchase of Net D and in order to pay Chris Hall his $1 million sell of his company.
From the recent financial statement.
On January 18, 2016, in connection with the acquisition of Connexum, the Company issued a $1,000,000 note to Net D which bears annual interest of 18%. The Company is required to make monthly principal and interest payments of $63,806 for a period of 18 months through August 1, 2017. The Company paid $25,000 in a good faith advance on January 27, 2016.
As at January 2016 they have almost $2 million in convertible debt as I read it but I'm not financial analyst.
-----
Less: current portion of convertible notes payable
1,934,932
Additionally, it would appear that the company currently has close to 200 million treasury shares that it can issue as convertible debt so it would appear that this dilution of the shares could continue for a long time and will be used to fund its obligations. And they will be successful at it as long as people continue to purchase shares. Given the situation it is no wonder that Short Sellers are hitting the company hard from time to time and probably deservedly so.
Aggregate market value of the voting stock held by non-affiliates: $1,501,187 as based on the closing price of the stock on July 31, 2015. The voting stock held by non-affiliates on that date consisted of 100,079,156 shares of common stock.
---
From the recent financial statement.
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. As of May 10, 2016, there were 342,254,092 shares of common stock, par value $0.001, issued and outstanding, 1,000 Series A Preferred stock $0.001 par value, issued and outstanding, 63,437,500 Series B Preferred stock $0.001 par value, issued and outstanding, and 14 Series C Preferred stock $0.001 par value, issued and outstanding.
------
So I don't think the dilution of shares is going to reduce anytime soon. In fact, it could increase as it appears to be a vehicle to fund purchases of new subsidiaries, which to a degree makes sense but is also not in the Shareholders best interests.
It would appear that GAWK is a personal piggy bank for the CEO with no appreciation for shareholders. I'm not sure how much further down he will take the shares. I imagine he can just keep issuing convertible debt that is at his and his lenders advantage and not in any way a benefit to the shareholders. I have written to the company about the share dilution and convertible debt without any response from the company. The amount of convertible debt the company has is staggering and appears to mean that the stock is just going to keep going down and I don't think Shareholders can do anything about it. It is really too bad because the company does seem to have a good and improving story.
From the recent Annual Financial Statement.
Change in fair value of derivative liabilities increased to $326,899 from $0 for the years ended January 31, 2016 and 2015, respectively. Our change in fair value of derivative liabilities increased due to the issuance of convertible notes payable.
Loss on issuance of stock increased to $2,956,954 from $0 for the years ended January 31, 2016 and 2015, respectively. Loss on issuance of stock increased due to the conversion of all deferred compensation to the CEO to preferred shares
On January 18, 2016, in connection with the acquisition of Connexum, the Company issued a $1,000,000 note to Net D which bears annual interest of 18%. The Company is required to make monthly principal and interest payments of $63,806 for a period of 18 months through August 1, 2017. The Company paid $25,000 in a good faith advance on January 27, 2016.
NOTE 9 – CONVERTIBLE NOTES PAYABLE
The Company had the following convertible notes payable outstanding as of January 31, 2016 and 2015:
January, 31, 2016
January, 31, 2015
Dated – August 22, 2014
$ 1,700,000
$ 1,800,000
Dated – July 31, 2015
65,000
-
Dated - August 12, 2015 and December 15, 2015
66,666
-
Dated - August 18, 2015
38,000
-
Dated - September 29, 2015
27,500
-
Dated - October 7, 2015
26,500
-
Dated - October 26, 2015
28,500
-
Dated - November 6, 2015
34,000
-
Dated - November 18, 2015
50,000
-
Dated - December 29, 2015
35,000
-
Dated - January 4, 2016
40,000
-
Dated - January 20, 2016
38,500
-
2,149,666
1,800,000
Less: debt discount and deferred financing fees
(204,427
)
(208,950
)
1,945,239
1,591,050
Less: current portion of convertible notes payable
1,934,932
(1,591,050
)
Long-term convertible notes payable
$
10,307
$
-
The Company recognized amortization expense related to the debt discount and deferred financing fees of $342,831 and $149,250 for the years ended January 31, 2016 and 2015, respectively, which are included in interest expense in the consolidated statements of operations and comprehensive income (loss).
is GAWK simply selling more shares from the treasury and subsequently continually devaluing the share already out there?