I probably shouldn't try to imagine myself as a "voice of reason," because I'll, likely deservedly, get taken apart by both sides. But what the heck, it's a peaceful Sunday morning, so here goes...
1. VHUB as an operating company, having products reported by knowledgeable people as being excellent, is not a scam.
2. Debt, which started out as not necessarily being toxic, has become toxic, because the greatly reduced stock price figures into the formula with which debt gets converted into issued common shares.
3. The FDA regulatory threat is very real, not because the products won't be compliant, but because it will be expensive to prove that compliance.
4. As long as the majority of the common shares are owned by Winther family and friends, executive salaries can be raised (from 50K annually to 150K annually, if you look at 10K reporting), consulting contracts can be let out to related parties (like the contracts to the Winther CPA firm), and intra-family leases of property can take place. I'm not saying that any of the contracts are outlandish, but there is that risk.
5. Soon, perhaps already, the Winthers won't own a majority of the stock - Typenex will.
6. VHUB's SEC reporting may be behind as regards June 15 debt conversions to equity, just like it took a month for the May 15 conversions to be reported (in fairness, it might have taken that long to renegotiate the deals).
7. Way back in spring 2014, there was the pump and dump that actually got me interested in this story. The P&D only hurt the Winthers, as to the best of my capacity to read reports, they held onto their shares from all the way up to all the way down.
8. Like the rest of us, Cerp has the right to switch his posture on the company and on its stock, though it would have made a more complete picture if he had let us know when he actually switched posture and why he did (beyond informing us that the whole thing is a scam).
9. Going forward, it's especially hard to take out the crystal ball and predict what the stock will do. On the one hand, Typenex can cash out (albeit at bargain bottom)and drive the price down, or can sell enough shares to keep the price down so that upcoming conversions will be more toxic in expectation that the stock price will later increase. Or, Typenex could do all it can to boost the company and its stock price when they'll be holding a majority position in the company. Without interest expense, this is very likely to be a profitable company.
10. Given what the price of the stock is these days, and therefore the total market value of the company (maybe 90 million shares by now multiplied by about $.0045 per share comes out to a little over $400,000), I could see the Winthers trying to take VHUB private or Typenex buying out the Winthers, which would create the same result, just with a different owner.
Bottom line of this restrained-rant:
1. The company itself is decent.
2. The stock has had its misadventures from Pump and Dump to press releases that try to make sales look larger than they are (quarterly sales always seem that they should be larger, given the hype about how quickly new products are moving out the door or how there are new distribution modalities particularly in foreign countries), to not knowing where we are this moment in outstanding shares due to June 15 having passed and we don't yet have a clue as to how the debt then due was paid off.
3. I have no idea whether it's better for minority shareholders to have the Winthers in control or Typenex in control.
4. This is just a message board, and everyone's entitled to an opinion, even entitled to a change of opinion, but it's better for the quality of this board to present reasoning for opinions and changes of opinion, as it takes no particular wisdom to predict that any penny stock will go nowhere, because that's exactly where most of them eventually go, whether or not they're "scams."
Have a good week, everyone!
