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Yes, they do.. although I would admit, its more the exception than the norm. However, as this matter relates specifically to HPTG, I will provide you with a specific example.
On 10/12/2015, Magna converted a $17,300 convertible note at a 35% discount to HPTG'S closing stock price (in aggregate --- using prior trading day(s) calculated per the agreement ) which worked out to be roughly .0008. The price then used for the conversation was roughly .00052. The number of shares given to Magna by HPTG was 33,269,231. Under the normal toxic debt lenders modus operandi, those shares are then dumped onto the market strategically, driving the price down farther, enriching/covering prior short positions ... ultimately pushing the price down for additional note conversions and the process repeats itself until the company is pushed to no-bid and/or bankruptcy... the keys to this operation are the discount rate on conversion price and that the company's stock historically trades enough shares on a daily basis to facilitate the exchanges... Simple... Additionally, again as it relates specifically to HPTG, I would add that Magna was very active in helping broker the relationship and the deal between Hydrophi Technologies and Pro Star Freight Systems. The revenue generated by Pro Star alone is enough to cover any remaining/ new notes related to the merger. Magna is not destroying HPTG, but rather skillfully positioned itself quite wisely in obtaining a large ownership interest in the company... By the rules.... Their money, their rules... Roger has done an excellent job MANAGING this relationship. He did have to deal (swim) with these SHARKS for survival as we had virtually no money and no where else to turn .... Business wise, in the past, things just didn't go our way. Now things have changed quite dramatically and all shareholders are poised for success. Magna included...
Also, in my opinion, don't think Magna's lawyers won't use the Hydrophi/Pro Star success (along with a couple of others) in court during it's legal proceedings with Yippy Incorporated. Attorneys for Magna would undoubtedly want to show that their client is not as evil as is being alleged by Yippy's CEO... Food for thought...
Well, one thing's for sure, you've got the fighter's spirit all right... Good luck to you, my friend, hope you get some good news... Just curious, were you ever treated with Erbitux during your battle with colo-rectal cancer?
Yep, I guess we'll just have to wait for the respective 10q to find out. However, I'm sure they did what's best. It's a great move and I like the aggressiveness here. They're moving fast. IMO, more new trucking developments coming soon.
True... In my opinion there may be some more equipment coming we haven't heard about yet... We'll just have to wait a bit. As far as the 20 mil shares, I'm sure I'll get my answer in future 10q(s)
Thanks... Any thoughts on where the 20 mil (give or take) came from? Is it possible the company sold shares during that slow run up (up to .0184) to raise capital to help with the down payment on the new trucks?
I'm not complaining.. Just curious..
We still at 404mil. ?
Interesting...Thanks...
WWG, I apologize if I missed it in the press release... Concerning the 19 new trucks, did it say if they were purchased? Leasing the power units has always been their M.O. in the past...
WWG, I apologize if I missed it in the press release... Concerning the 19 new trucks, did it say if they were purchased? Leasing the power units has always been their M.O. in the past...
Right. The fleet grows by about 10?. They also supply us with a little bit of back-of-the-envelope math. Which I find refreshing. Keep in mind, the price paid for freight carried out of Florida is generally a little bit less then freight carried out of Midwest or the East Coast. But still, the ballpark number provided is good to know.
Right. The fleet grows by about 10?. They also supply us with a little bit of back-of-the-envelope math. Which I find refreshing. Keep in mind, the price paid for freight carried out of Florida is generally a little bit less then freight carried out of Midwest or the East Coast. But still, the ballpark number provided is good to know.
No. Not, that I'm aware of at this time. I will tell you, Mr. Zaric spends a good amount of time in Florida
I'm sorry... One of the reasons why...
Yes. We discussed the Southeast/ Florida to Illinois corridor (also Florida to East coast corridor) a while back as they were looking/ advertising for drivers from Nov-Jan based in Florida. Additionally, read Roger's statement closely regarding Indiana (Hammond). Taxes are the reason why...
Sure..well go back up... It's not doom and gloom... It's just part of the game and it's being done within the rules.... In a perfect world for us shareholders, we'd love to see every convertible note paid off before they come due.
You can Google "death spiral financing" which is what Joshua Sason and Magna are known for. To be fair, Magna does not always destroy companies and has a few successes. However, in general, the firm does manage to grab decent sized positions in viable companies or companies which they know will become viable. Magna helped broker this deal between Hydrophi and Pro Star. Roger went to Sason for financing years ago when he couldn't get money anywhere else. I think Roger has done a great job managing this relationship as most companies don't survive the toxic notes. We'll have to wait for the 10q to see every note that's left ... Unless someone has a running tab... ANY fixed sum convertible note holder has incentive to have a stock stay as low as possible until they're contractually allowed to convert ... Especially true with a company they know will eventually be a success...
I agree with your statement(s) whole heartily... I think most long timers here are correctly more concerned with business developments than stock price. Whatever factors exist, either by themselves or by a collusion of others, to keep our market cap under where it should be (based on value/future growth or a combination of the two), I don't really care... I can't do anything about it. I'll just use the opportunity others are providing (while I can) and continue to add if I think the stock is cheap. If, for instance, like another poster has suggested, that the price is being held down in order to collect more shares.... Fine... I'll add more, too. This is a real company with real revenues in an expanding market segment. In my opinion, after Sason and his group get what they want ( or better yet ) what they're contractually obligated to receive (notes paid off early), we move solidly up for good. More trucking news coming soon... (Just my opinion on that)... That's just from poking my nose around...
We're not talking about a few trucks... The fleet grew by almost double year over year. The data is available on the FMCSA website.
I'm not hung up on a single line, either. I discussed the Arrow connection with management 2 months ago. I was told not to worry about it.. and quite frankly, I'm not worried about it. I just don't know if it's necessary to have a middle man connected to our company while benefitting from it... That's fine if you're a private firm. Again, a little guidance is what I would like...
I guess I should clarify ... We need to compare apples to apples... in our case, additional equipment (speaking only of trucks) should and would effect our top line revenue numbers in a positive way... Get more business - need/add more trucks - sales go up. Simple..
However, we added rigs and sales were flat. So, if the economy is partially to blame for it, um, OK, but there's got to be a little more to it. So a little guidance would be helpful...One thing from the 8K that's sticking in my craw is I'd like to know who we're leasing our trucks from... If it's Arrow Freight Inc. and Union Freight Inc. Those two companies are owned by the 2 founders of Pro Star.... I'm not happy about that if that's the case... especially if we're leasing trucks we don't need.... if you can see what staying... Again, a little guidance might help....
Those two factors, land and equipment, would (and do) have an effect on the bottom line numbers... Not the top-line revenue number. The economy, on the other hand, absolutely would effect it. Someone earlier mention a little guidance would be in order. I agree with that.. It would help explain and give reason for the flat year over year top line number(s).
Right.. I would agree with that. I was looking for an increase in revenue from 2014 to 2015 with the increase in fleet size. But we didn't get it. Curious... Anyway, I guess it helps to explain why they haven't added a truck since May of 2015. Looking to add shares here and believe we're in the neighborhood of an established base (as far as the market is concerned- not me) and look forward to seeing how the company will execute it's growth plan.
No, I have no idea... I wish I did, but, I don't have access to that information... I would imagine most investors are used to larger corporations listed on established exchanges letting everyone know, sometimes months in advance, exactly when their financial releases are coming out ... My best guess is aligned with what other posters have written here before, which is everything comes out along with the 10K, which is due at the end of this month.. And if it's going to be late, they'll have to let us know then....
You're welcome... I'm looking forward to the numbers too.. I'm also excited about the future plans for Pro Star's growth. We may not get the word on those matters with the release of the financials, which, is fine with me. However, the business updates will give us something to look forward to other than the next batch of numbers.
I agree.... For "certain" types of train cargo, the Gibson yard is "Thee" railyard... Just Google it....
As I had promised the board a couple weeks ago, I said I would be traveling to Hammond, Indiana.. I can report that I recently did, so I guess I should start with a few observations.
First, the Hammond operations are larger than I imagined and clearly are going to be the epicenter of the Pro Star's near term growth. This is being done very quietly, which isn't a surprise given the way Roger plays his cards... No talk and no pr's. The activity/development (so far) is not at the Clay Avenue address but rather at the Michigan Street address. They're utilizing a large garage there (significantly larger than the one on Clay Ave.) and currently occupy much more than an acre of land. Lots of trailers and power units on the site. Separated and orderly. There is room to expand if/when necessary. There are no Pro Star signs anywhere announcing their presence. As I mentioned a while back, I would not be surprised if a corporate move to Indiana is in the cards... As shareholders we should embrace it... The tax savings will flow directly to the bottom line and/or fuel growth. The location is great... A couple of minutes from both 90 and 80/94 via Indianapolis Boulevard. One last thing.. This Gibson Railyard we're parked directly next to is a Colossus. There's business there right now just waiting to be taken advantage of.
In my opinion, the move here was not done simply for taxes and to streamline operations... The positioning here is strategic...
My sense of the Clay Avenue property is it will be utilized for something not yet announced. A have a few trucks there but it was quiet. The sign on the building from the previous company has been taken down. Nothing else going on.... that property was purchased for a reason ..... I guess we'll have to wait to see what it is...
Perhaps Crow.......
I was on it earlier in the day....
I agree... Perhaps a few words about trucking expansion a few weeks later as well...
I agree.. hopefully the 2014 numbers are in the same ballpark as the unaudited numbers already reported (27.3 million) and for 2015, I'd be happy with anything over 37 million in revenue.
Thanks, WWG... Yes, about Empower Medical SA, I agree with you and I'm fine with whatever Roger thinks is best for the company. As per the Hydroplant, what we do know is they're obviously not going to be marketing the unit in Europe the way they initially intended. That's a no brainer..
So, the question is, what's going to happen with it. I guess we'll just have to wait for Roger on that. Like I posted earlier (pretty much dovetailing what quite a few old-timers here have said), let's just give it a zero and focus on our transportation business. But I will point out, regardless of what the Hydrophi website looks like now, work is still being done on the Hydroplant. And the best way I can phrase it is that work is being done on it on an "as needed basis." That's all I can say about that. Again, to be clear, I'll still think of it as a lottery ticket and I prefer not to concern myself about it much. I'm a value investor at heart so I won't consider it's worth to the company until if/when people start paying for it and bolting it on..... As for the ProStar revenues, yeah, it'll be great to see them and how much of those trickled down to the bottom line. I've recently had conversations with other individuals in the trucking industry here in Illinois, and for a moderate sized trucking company with say, 50 million in revenues, a corporate move to Indiana might allow another million dollars to flow to the bottom line. **Before anyone flips out, I'm not saying ProStars revenues are near that number. I'm just using that number, hypothetically speaking, as it related to my private conversations about corporate tax rates in Indiana as compared to Illinois.**
Maybe there's more to Hammond, Indiana, that meets the eye...
I think we all got confirmation of the company's business strategy change back in October of 2015 when Equimaxx raised its stake in Hydrophi Europe to 22% from 6%, after acquiring just under 9 million shares of HTE. For those who don't know, Equimaxx is a merger specialist for microcap companies in Poland, putting newly established businesses with shells, which, was what HTE essentially was... having no business activity to speak of. Equimaxx's expertise is in the medical field and they been very successful so far with the companies they've created.
Anyway, shortly after Equimaxx's stake in HTE, our merger with Prostar Freight Systems was announced. Our ownership in the new firm, Empower Medical SA in Europe is in the low teens now. However, I'd rather have a stake in a company which is conducting business, rather than one which is not. So I see the merging of HTE with Empower Medical as a plus for us....whichever way Roger chooses to monitize it.
As for going forward with the Hydroplant and it's development/monetization, Greenmachine2 has posted before, and even Roger stated while speaking at the Brewer Conference last year, that Mercedes Benz (aftermarket division) was looking at the Hydroplant and was interested in the technology.
Based on how our company is structured now, it would make much more sense to license the Hydroplant to companies which service/sell parts in the aftermarket for diesels involved in ALL modes of transportation and energy generation. Obviously, the older, dirty ones (pre-2004) are what these companies are interested in concerning marketing the Hydroplant. The companies involved in the diesel engine aftermarket and/or parts and service older engines include, but are not limited to; Mercedes-Benz, Volkswagen, Volvo, Navistar, PACCAR, Detroit Diesel, Caterpillar, Cummins, Triton Power, MAN, Hyundai etc... just to name a few..
No matter what product is being licensed, the first negotiation is the most difficult and time-consuming. Things like exclusivity, patents, applications, rights granted, restrictions, sublicenses, territories, terms, improvements, warranties etc.. all factor in.
For a small firm like ours, coupled with the complexity/application of the product, negotiations most likely would drag on for quite some time. I'm of the hope that after we have all of our financial reporting finished over the next few weeks and some additional PR's on ProStar's future plans have been released, we may get some update on the Hydroplant's status. Based on the company we are becoming, I'd personally love to see us go in the licensing direction, however, that's just my opinion.
As an owner in the company, (as all shareholders are), for now I think it's prudent to assign zero value to the Hydroplant (going forward-not including tax write-offs) and look solely at the company's ongoing operations for its current and future value, which, should be somewhere between .75 & 1x annual sales. .75 - 1x sales happens to be the norm for all publicly traded trucking firms. It's easily researched and quite frankly, it's been detailed by several posters on this form already. Future growth for the company obviously will depend on how aggressive ProStar wants to be relating to their expansion and perhaps any tax strategies
we can take advantage of which would affect our bottom line.
For me, already into my 3rd year of owning HPTG stock, the Hydroplant has become a sort of "gifted" ( like a present) lottery ticket that I'm happy to stick in my back pocket and forget about.... While riding the Prostar train....
Bought a little more for myself this morning. I was glad to get the opportunity. I know what I own.
You got it...
Sorry I missed that post earlier today.... Prostar bought an existing facility that was already being used for the repair and maintenance of semi tractors. They even got all the tools and equipment in the purchase.
All they really had to do was turn the lights back on...The building really isn't all that special to look ... Its more utilitarian than anything else.... It's got 3 truck bays. Fenced lot... Additional truck/trailer parking is a block or so away... I plan on going back down there in a couple weeks. I'll take a couple pictures if anyone is interested...
You're absolutely right. We've discussed it before on this board, Prostar could have merged with a shell corporation somewhere. Doing it much cheaper and in a much more advantageous way (to Mr Zaric). So, there was a reason they merged with HPTG.
Imo, I believe going forward, the driver for the Hydroplant is emissions, especially Particulate Matter. PM reduction is being pushed hard in the EU and other emerging countries. The older diesels, on land and air, are the main offenders. The Hydroplant would be the cheapest solution for corporations and governmental agencies (transport). I truly believe over time, the market comes to us for a solution to those issues. Additionally, regardless of the cost of diesel, it's still a benefit when you can save some money based on improved fuel economy. It just wouldn't be a primary driver for the purchase of a Hydroplant while diesel fuel is inexpensive (relatively speaking).
Like a lot of investors here, I just prefer to think of the Hydroplant as being in the company's back pocket and focus on the trucking aspect of the corporation for right now.
You're absolutely right. We've discussed it before on this board, Prostar could have merged with a shell corporation somewhere. Doing it much cheaper and in a much more advantageous way (to Mr Zaric). So, there was a reason they merged with HPTG.
Imo, I believe going forward, the driver for the Hydroplant is emissions, especially Particulate Matter. PM reduction is being pushed hard in the EU and other emerging countries. The older diesels, on land and air, are the main offenders. The Hydroplant would be the cheapest solution for corporations and governmental agencies (transport). I truly believe over time, the market comes to us for a solution to those issues. Additionally, regardless of the cost of diesel, it's still a benefit when you can save some money based on improved fuel economy. It just wouldn't be a primary driver for the purchase of a Hydroplant while diesel fuel is inexpensive (relatively speaking).
Like a lot of investors here, I just prefer to think of the Hydroplant as being in the company's back pocket and focus on the trucking aspect of the corporation for right now.
Right... And add a little for leased trucks..C2C Global Transportation (usdot# 1768776) leases at least 2 older Volvos owned by ProStar.. Additionally, Riki International has another old Volvo. I don't know if that truck is leased or the company is driving it as an owner operator for Pro Star.
I'm more inclined to think it's being driven as an owner operator because it's on the street under ProStar's USDOT number
Right... And add a little for leased trucks..C2C Global Transportation (usdot# 1768776) leases at least 2 older Volvos owned by ProStar.. Additionally, Riki International has another old Volvo. I don't know if that truck is leased or the company is driving it as an owner operator for Pro Star.
I'm more inclined to think it's being driven as an owner operator because it's on the street under ProStar's USDOT number
I agree... However, the wait has allowed me to pick up some additional shares at a cheaper price..
Hahaha... So right... But, you gotta keep on top of it... Like an owner.. if you go to the FMCSA website you can look up historical data ... There you can look at power unit numbers monthly, quarterly and semi annually. When you do a little math, you'll like what you see...