10K FANTASTIC UPDATE/EXPECTATIONS:
Gang, sorry for the length, you know me, sometimes I like to diatribe... Please ignore or read at your leisure and as always thanks for your support.
Folks, I gotta say I'm really liking the business model and strategy this company is taking. They aren't messing around; JD Field Services was a whopper of an Acquisition and they pulled it off with some serious finesse! Who acquires a $20M company for 2 each, 59M shares of a shell??? Seriously gang, this is a WTF just happened moment for us!
Business Strategy -Rescue distressed company, solve debt problems; fix management. JD Field Services gets 18% of voting rights through a Power of Attorney which retains in reserve 158M shares (to be retired after debt is paid). What's not to like about this deal? Seriously, I'm just boggled they pulled it off so easily.
I can haz my own shell company too?
We intend to affect our acquisitions through several different financial methods; one such method is a stock purchase using the acquisitions cash flow to pay for the sale of our public stock. We currently have banks and access to cash for the funding of our acquisitions
My question is, why aren't more penny stock companies utilizing this strategy?
Debt and Deficits
Forgive me guys but let's talk numbers for a minute:
For the period ending Dec 31, 2013, NAS had a capital deficit of $(2,875,372); however, this is a decrease year-over-year in current liabilities by $(646,570), or (18)%. Net losses also decreased by $(229,467) or (45)% to $(280,596). Ordinarily you'd want decreasing liabilities and expenses inversely proportional to increasing assets and sales which would reflect strengthening of a businesses core processes. Since the company has no real assets we can't make that comparison; however, they did acquire JD Field Services, a major accomplishment:
Guys... JD Field Services is a monster accomplishment for NAS. The subsidiary brings in $19M in Assets and $21M in 2013 Revenues. Liabilities and expenses that seemed worrisome just aren't very ...worrisome anymore.
Combine this with the fact that NAS is reporting an additional $2.5M in unclaimed, Deferred Tax Assets and that $2.8M deficit seems downright trifling.
Liking the company yet?
Let's talk about the Convertibles and clear this up:
Trafalgar - Is Done. On September 4, 2013, the Company settled its obligation to Trafalgar Capital Group, SARL, in the amount of $234,537 in debt.
Asher Enterprises - is Done. As of October 12, 2013, the Company has mediated the default on the note. The Company will still owe the balance of $71,250, which occurred during the period of default. As of December 31, 2013, the Company has fully converted the principle and interest of the note.
On Accumulated Deficits:
Folks, this is important only because in larger exchanges some traders are used to paying attention to it -Retained Earnings (accumulated deficits). If the Deficit is increasing as an absolute percentage year-over-year, and outpacing Paid-in-Capital year-over-year (which should be an absolute percentage higher than Accumulated Deficit); it's normally indicative of deep financial stress... But since we're on the OTC (what penny stock isn't in financial stress?) all i really want to say here is that the company looks to be managing it. Yes Accumulated Deficit is a magnitude larger than Paid-in-capital... So what? We're on the OTC... If we see an exponential growth year-over-year going into 2014 or if it outpaces Paid-in-Capital further; it will be an indicator of worsening conditions. Keep an eye on it, but don't worry about it for now. That's all I have to say on this.
Off-Balance reporting:
As of December 31, 2013, NAS has no off-balance sheet arrangements
Share Structure
1,000,000,000 Authorized.
751,987,293 Issued and Outstanding, as of April 11, 2014.
261,400,000 Floating, as of 21 March 2013
Looking through the 10K we see only 126M enter the O/S between 21 March and April 11 (3 weeks), all restricted shares which means the float is still 261M.
Gang, I realize the 10K starts off slow... I'm not sure if they're obligated to put all of the Going Concern messages at the top, or if that was just an honest error of judgement on their part -the 10K starts off in a depressing fashion but really; it's just that top section that takes that tone -I have to say for an OTC stock, the rest of this report is FANTASTIC!
Look guys, I don't know what to say about the lack of momo and Dollars Traded, other than have patience. Word will spread. $20M dollar companies seem to be popping up all over the OTC lately; very abnormal if you ask me, but give it a little time. We're significantly undervalued here. Remember this wasn't a PR; it was a 10K filed with the SEC. The JD Field Services numbers were a Pro Forma (and not audited), so there's some wiggle room to play if they wanted to -but they've been straight with us so far. They PR'd that they acquired a $20M company and now we have confirmation in a 10K Annual. Time to start giving them the benefit of the doubt.
Good Luck the rest of this week guys.
AI
