Tuesday, May 12, 2015 4:30:23 PM
Saleen hits another ALL TIME LOW. Closes down (13.5%)at .0045
on over 3M shares traded. Massive sell off.
No doubt that the converted shareholders are liquidating their positions in SLNN for whatever they can get for them. Look for the trend to continue with approxitmately 22M shares left to liquidate for:
KBM Worldwide, JSJ Investments, Rock Capital, Vista Capital, Coventry Enterprises, David Weiner and the BOD's
before another 58M+ converted shares hit the market again in June and July. I do not know what will happen to the conversion if the share value drops to zero before then?
With no Funding secured how long can Saleen live off of Customer deposits? That is nothing more than a Ponzi Scheme waiting to blow up.
Recap:
1) Saleen is out of money- The only incoming funds are from customer deposits and maybe the sale of half a dozen cars per month. The White Label car sales do not generate any profit so they really do not help the cash flow situation.
2) Saleen has horrible credit and is delinquent with every lender, vendor, customer and the IRS so they cannot borrow money.
3) Saleen's share price is worthless, the equity is negative and the Market Cap is only $875K against debt of at least 11X the debt amount. So any prospective buyer is not going to have to pay for the company to get 100% of the shares. They just need to be willing to take over debt. No smart buyer will take over the Debt because the value of the company is 9% of debt amount.
The only possible solution is Bankruptcy. Even if a prospective buyer was interested in acquiring Saleen they would wait for bankruptcy to work out a deal with the court for debt relief and debt re-organization before they took over 100% control of Saleen.
Would Steve Saleen give up 100% of the company to keep it running?
Probably not. Would a prospective buyer be willing to go through all the BS and expense of bankruptcy and then the cost of rebuilding Saleen as a minority shareholder? NO WAY.
Conclusion: Saleen is DEAD.
on over 3M shares traded. Massive sell off.
No doubt that the converted shareholders are liquidating their positions in SLNN for whatever they can get for them. Look for the trend to continue with approxitmately 22M shares left to liquidate for:
KBM Worldwide, JSJ Investments, Rock Capital, Vista Capital, Coventry Enterprises, David Weiner and the BOD's
before another 58M+ converted shares hit the market again in June and July. I do not know what will happen to the conversion if the share value drops to zero before then?
With no Funding secured how long can Saleen live off of Customer deposits? That is nothing more than a Ponzi Scheme waiting to blow up.
Recap:
1) Saleen is out of money- The only incoming funds are from customer deposits and maybe the sale of half a dozen cars per month. The White Label car sales do not generate any profit so they really do not help the cash flow situation.
2) Saleen has horrible credit and is delinquent with every lender, vendor, customer and the IRS so they cannot borrow money.
3) Saleen's share price is worthless, the equity is negative and the Market Cap is only $875K against debt of at least 11X the debt amount. So any prospective buyer is not going to have to pay for the company to get 100% of the shares. They just need to be willing to take over debt. No smart buyer will take over the Debt because the value of the company is 9% of debt amount.
The only possible solution is Bankruptcy. Even if a prospective buyer was interested in acquiring Saleen they would wait for bankruptcy to work out a deal with the court for debt relief and debt re-organization before they took over 100% control of Saleen.
Would Steve Saleen give up 100% of the company to keep it running?
Probably not. Would a prospective buyer be willing to go through all the BS and expense of bankruptcy and then the cost of rebuilding Saleen as a minority shareholder? NO WAY.
Conclusion: Saleen is DEAD.
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