The COST of delay…
It probably goes without saying that most, if not everyone who is long in this trade has suffered terribly; both financially as well as mentally … and many of us have endured these two burdens for the better part of 4 seemingly endless months.
If, however, you’ve come to believe that Beatty and the GCS-crew are somewhere happily gloating over our predicament … know this: THERE IS NOTHING FURTHER FROM THE TRUTH OF THAT BELIEF.
This complex transaction was supposed to have happily (for them) closed by now. The existence of that mountain of NOLs was supposed to have remained a secret that no two-bit iHub poster was EVER supposed to stumble upon. And in the absence of those NOLs ASYI would look to be in far worse shape then even MKHD was/is in. And when MAXM was dispatched here (no doubt by GCS’s investment bankers) and began to beat the dickens out of ASYI’s PPS, it would have only appeared to be the ‘natural’ result of ASYI’s sorry state of pennilessness coupled with ‘bad management. And as a result of that, we would have completely abandoned the stock and left this board for other opportunities. Indeed, the seemingly endless saga of the KoolTel scam, and its NITWIT-CEO-JUDAS-GOAT-SHILL, Andrew Wells, would certainly have made even the most die-hard believer in ASYI finally throw up his/her hands in disgust and leave for good.
BUT THINGS DIDN’T GO EXACTLY AS PLANNED, DID THEY?
A couple of very hard-working posters didn’t buy the anti-hype, but continued to dig ever deeper into the unfolding mystery … until they discovered corporate greed, deception, lies and even worse. And as a result of their efforts, a stock that has been ‘cellar-boxed’ with no-bid for 3 straight weeks traded +60,000,000 shares yesterday. It’s easy to say --- as has been said RELENTLESSLY here – that the old-girl’s dead … but is that really the truth … or is it the truth that others would have us to believe???
But back to the COST of DELAY in this trade:
Rest assured that there is a very real COST to Beatty and the GCS-crew in delaying the closure of the triangular reverse merger … and that COST involves the loss of MONEY …and it’s very quantifiable:
Make no mistake in this: the NOLs are NOW the property of GCS …however, GCS cannot presently make use of them until such time as they can be transferred from ASYI’s books of account to GCS’s balance sheet …and the ONLY way in which that can be done is by the filing of a ‘Super-8K- by GCS.
At present, the NOL’s amount to approximately $28,000,000.00 of tax offset value. As such, they can be applied to offset taxes 20 years out into the future. HOWEVER, THEY MUST USED WITHIN THAT TIME SPAN, OR THEY ARE FOREVER LOST! So then, each year, 1/20th of their value is lost forever if that 1/20th of value is not used.
This means that each year, $1,400,000.00 is available for tax offset purposes (i.e., $28,000,000.00 / 20 years = $1,400,000.00 per year). Please bear in mind that I’m using approximate numbers here, for illustrative purposes only. Another way to look at this is to understand that each DAY during each of those 20 years the amount of approximately $3,888.88 becomes available to use as a tax offset … BUT IF IT IS NOT USED THEN IT EVAPORATES, FOREVER (i.e., $1,400,000.00 / 360 days = $3,888.88).
So then, each and every DAY since the GCS/MKHD merger deal was announced (back on July 20th), GCS has lost, FOREVER, the right to offset $3,888.88 of its revenue. Therefore, today (August 24th), by virtue of its jerking-us-around, it has lost a total of $128,333.33 (i.e., $3,888.88 X 33 days). And if GCS and Beatty waits until September 14th to announce the merger, then GCS will have lost $213,888.40 (i.e., $3,888.88 x 55 days). A final way in which to look at this is to understand that each WEEK that this deal is not closed, then the GCS-crew loses $27,222.16 (i.e., $3,888.88 x 7 days) … FOREVER!
Clearly then, in jerking-us-around, the GCS-crew is paying a price ... and a pretty terrible one at that.
So the very next time that you start to feel all bad and ‘wobbly’ about this trade … just think of ‘ol Neal Axelrad, CEO of the GCS-crew. ‘Cause he ain’t smiling either!
AI
