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Yes, if you read the SEC filings he actually acquired shares.
If you look at the filing from 1/15/19
EDGAR
He controlled 9.8% of the company per this filing.
If you look at the 12/13/19 filing, he purchased 7,600 shares:
EDGAR
And now controls 11.39% of the company. Interestingly, the numbers don't add up. He has more shares now than he has filed SEC forms for the acquisition of, so he bought well over the number of shares reported above. Not sure if he missed filing some forms or if I'm misunderstanding his reporting requirements, or if my math is off somewhere.
Either way, major investor, presumably with more knowledge than we have, buying and additional almost 3% of of the company. Bullish sign, I would think.
Well, Fred DID actually oust Steve, let's not forget that. Personally, I'm not necessarily doubting the guys integrity, just his ability to turn the ship in the right direction. Maybe they are saving news for the November call?
Well none of us should be surprised. The reverse split was first approved years ago and has been there on the SEC filings. The original reason for the split way back when was to get the share price above $5 (it was a buck something at the time) so DSNY could get listed on the NASDAQ. Doesn't sound like that's the idea here obviously.
Reverse split is usually bad for price, buy back is usually good. Both usually mean they're out of ideas and are resorting to manipulating stock price with financial engineering instead of, you know, actually growing the business.
I figured they were going to buy back a bunch of Steve's shares as a way to kill the lawsuit, but doesn't sound like that's what's happening either.
I'm reserving judgement until I hear more about the strategy here from Fred. Might be some reason for wanting to get it over a buck, and it will make revenue and income more obvious. Anyone else have thoughts?
Not sure I agree that cutting Clipstream was the right thing to do. With the gift of eagle eye hindsight, raising capital while shares were $2+ a pop and getting the resources to invest proper time and effort in both product lines would have been best I think.
Its neither here nor there at this point though. I agree that Fred's complacency is VERY worrying. I can't imagine that he would be that nonchalant without having the major investors on his side. Makes me wonder if there are things in the works that they aren't telling us small fry. If I had big bucks into this train wreck I'd be shopping for a new CEO if I kept getting the same thing over and over for a year and a half while nothing materially changed.
Anyway, that's my bet and why I haven' liquidated at this point: either Fred is on his last legs, and will be replaced with a hot shot outsider (maybe there to sell the company) within six months, or there is something in the works that will move the needle.
Hey man, I know that the knee jerk reaction to mentioning Steve is to get pissed off. (He cost me a lot of money and I've had a bunch of funds tied up in DSNY for a lot longer than I like, I'm not a fan of his either.) But you're missing a couple things here.
A) I'm including all of the new "directors" in my numbers, including the new one they just hired per the call. I imagine that puts us way over the $483k number.
B) That is besides the point. The point is that there is no clear road map to making large increases in revenue. $100k less in executive pay? Still same ballpark and still same results: not moving the needle on revenue and income. Its been the better part of two years under Fred and there has been minimal impact on DSNY's market share in the Play MPE arena. I'm a big Fred fan so far, but at some point I need to hear a plan to dramatically bump up revenue and not just "we're going to incrementally improve the product and hope for the best." My post below was merely a suggestion that shareholder value may not be maximized by continuing the firm as a going concern if this doesn't happen soon.
Is it time to think about liquidation?
Nobody puts money into a microcap stock with single digit revenue growth and negative income growth. While Steve wasn't the most honest guy, at least he was thinking big. Now instead of Steve siphoning off a bunch of money, Fred and the team of executives are now getting as much if not more. We're getting a line about market penetration being the key to growing revenue, but there is no real plan to get to the 2 or 3 times current revenue that would be needed to make it worth holding this stock, just vague statements about how they are only 5-10% of the current market and the same BS every quarter about sales that somehow don't translate into moving the revenue bar by much. They aren't moving fast enough to bump up that market share, and as evidenced by Fred's spiel in this latest conference call, the market is changing.
If staff was cut back to a skeleton crew for a year or so, there would be $5mil in cash on the books. Paying out the cash as a dividend and selling to a competitor might net shareholders a reasonable profit.
Somebody just went in big.
The revenue boost from the new UMG contract should be visible in this quarters numbers. If that is as good as Fred was saying and they have continued organic growth, should bump up a bit, I was thinking mid-.30s. I can't see real big movement unless they've signed another big contract though. If I had to bet (which I guess I have actually, haha) I think the new board will keep him honest and on task and we will see .50 this year barring something crazy happening.
Figuring in the 14% increase from UMG and a moderate increase elsewhere this should be in the mid-30 cent range before too long I would think. Going to take more than that to really break it loose. At least one big investor bumped up their shares though. Seems like mostly good news? Anyone have any thoughts?
Well I like where things are headed. I see success as being a buck a share at this point. Quick analysis:
Current cap: $9.9MM
PPS: $.18
NI: $656270
That puts us at about 15x net income. But there is $2.3MM cash on the books. Backing out the cash we currently have an 11.58x net income price. Which is pretty low for a tech company, but I'll keep it here for a conservative analysis.
So the equation I'm working with is (NI * 11.58) + Cash = market cap. Once again pretty conservative for a micro cap tech stock.
With 55 million shares outstanding that means we need net income to hit about $4.25MM to get over a $1/share price at the end of the year, assuming all additional cashflow goes on the books not spent. Seems pretty doable with minimal additional cost considering how well their platform scales.
If we assume a more liberal ratio of 16.5 we only need about $3MM NI to hit a dollar, and at 20, which is pretty standard for tech, we only need about $2.5MM.
Basically, signing another major with similar usage to UMG would put them there, looks like.
If they were smart, they would release Clipstream on a freemium model. You want to host plain jane videos? Great that's free. You want 4k, real time video watermarking, or other premium features? That'll be a bit extra. Work out the kinks in the product, and either turn it into a real business or sell it or release it open source. Hope it doesn't end up in the trash.
Here is a link to the quarterly report. If you would crack these occasionally, you'd see the company does in fact have 2 mil in cash on hand. Don't know that they should spend it all on this, but if I was a major investor I'd rather see them burn it doing something that will move the needle on share price and get rid of the threat of legal action than blow it all on lawyers.
My theory is that the board either has or is attempting to come to an agreement with Steve to buy back his shares as a settlement. This would put $2 mil in his pocket and hopefully bump the stock price a bit. Steve owns 11,006,111 shares per EDGAR, but that may be a bit out of date.
Buying Steve out and burning his shares would be good all around for the company and shareholders.
Clipstream is gone I notice.
Doesn't sound like they pinned much on him. Link to claim: https://file.io/BMN53H