SEVEN THINGS LEARNED FROM CASHMAN INTERVIEW:
Superb interview Chris. Charlie Rose could not have elicited more info, and you didn’t grope anybody as far as we know. From your interview with Bob Cashman we learned or confirmed:
1. In March, $SVTE expects to have fully implemented its growth plan and will begin “gradual” share reductions thereafter. (That’s all sooner than I expected.)
2. PR is coming out next week on a manufacturing piece of the plan already implemented. Bob said, “We’ve got the equipment that we bought up and functioning now, and it’s having quite an impact on the plant.” He seemed anxious to get talk about his manufacturing operation, instead of just issuing reassurances about share structure. (That’s hard production/sales related info that buy and hold investors like, instead of chasing rumors up and down.)
3. Bob also said by March he “intend(s) to have other things happening that will support the stock and keep it moving.” That’s the confidential part he cannot disclose yet, but we know he is focusing on (a) future sales levels the company is expecting from the manufacturing expansion and (b) the LOI for acquisition of the $15 million a year wholly owned subsidiary. (This is where the uplisting part comes in.)
4. Then the plan is to “level off” expansion for growth and “let money roll over rather than require new money.” (Ultimately, that turns into profit.)
5. $SVTE is getting “out of the convertible share environment” for good and is nearly there already. Remaining note holders have agreed to hold off on conversions as long as a year, but those could begin as early as March in coordination with the acquisition, share reductions, and uplisting. And yes, he did mention stock buybacks, particularly referencing money saved by not having to do PR to promote the stock. (I assume he meant the stock will get better coverage out of the convertible shares environment and uplisted, but he could have been referencing having to stay ahead of so much misinformation.)
6. The stock conversion yesterday was a lower level miscommunication at JMJ (one of four institutional creditor/investors), but Bob said rightly, “The good side is we have to get all these notes converted and out of the system (anyway).” The company is ultimately right sizing at the same level with share reductions regardless of when any conversion takes place. Bob even suggested some remaining convertible debt might be paid off. (If Bob can settle out the relatively small amount of remaining convertible debt one way or the other along with everything else happening in March, I’m all for it, too much hyperbole and misinformation about it.)
7. Finally, Bob reiterated that $SVTE is “absolutely not doing a reverse split.” (How many times has this one been confirmed?)
Everything else Bob said was in response to ridiculous rumors and assertions you shouldn’t have even had to ask him about. This week the street overbought going into a 10-k that we already knew would include nothing new to raise the stock price. Yesterday the street oversold on the release of the 10-k. Bob, of course, had no involvement in a single share traded. Add the major wildfire that knocked Bob’s electricity and business line out, and it’s a field day for bashing. This is a solid company moving toward profitability sooner that I thought just two days ago.
Bob has moved some major mountains. People need to give the guy a break. When the top sticky on the board is about some company $SVTE decided not to buy a year ago, it serves no good purpose. If a sticky is critical, fine, but at least it ought to be current, not to mention relevant and accurate. All of the seven items above are current, relevant, and accurate. The only good thing about the bashing is the picture gets clearer with every clarification. $SVTE is extremely undervalued. Buy and hold.
Chris, we salute you Sir.