zey- very strange trading indeed, a mix of a seller parked, unloading a huge raft of shares ( DMRJs Interest payment shares) and a short attack that tries to dovetail into the DMRJ dump-a-thon.
People ask, why do that? Well DMRJ wants money today. Only reason. "Tomorrow", they'll have more shares to sell.
People ask Glenn to announce that he'll be repaying DMRJ on such and such a day. He will, but he obviously doesn't know the day nor hasn't looked at an attractive refi proposal. However, he did refer to a number of "bankers" calling.
I can understand shareholders wanting the dilution to stop but unfortunately it won't until the company has funding to operate ( don't want to ever borrow more money) and can pay off DMRJ's loans one at time. I suspect DMRJ will hold onto a piece for greener pastures, like a qpl listing for a non-contact product.
This was the deal and obviously, it cannot be un-done or resolved TODAY. Tuesday, well, that's another day.
Questions re: IDIQ-- not sure how it can be misconstrued but it belongs solely to IMSC. Although a carve out of 10-20M to Smith's may occur just so tsa has an option should a comet hit IMSC's building.
IMO- the real big money is the follow on product, the inline non-contact multi vortex unit that supplements an ait machine ( x-ray, mili-wave). It will also signal the take out move by a parent to be.
So key events, to my mind:
1. how soon will IMSC have its first check from tsa?
2. how soon after that will DMRJ get paid MOST of what they are owed? ( refi or cash net from sale or combo)
3. No doubt, IMSC's Q2 or Q3 is going to be powerful, a profitable Q before debt is considered.
4. IMSC's Q3 should deliver great strides in product development ( non-contact, conveyer capable etc).
5. The Euro market is now a Greenfield market. This has the potential to deliver a much larger order than tsa's first 1100 unit order.
6. Everybody talks etd's across the usa, however, that funding has to come from the federal gov. as local/states are over-tapped. There are about 8 states that have fully funded their pension obligations so unless Uncle Sam is buying or there is an obvious need ( NYC-LA-CHI-SF-MIAMI ) I expect it will be Federal buying ( border, marshalls, atf etc.)
I am a shareholder but I also understand that El Big Dog ( dmrj) runs this show and until they don't, opportunities for longs are constrained by said Big Dog.
Best of Better LUCK to ALL IMSC LONGS!
