My Tele Call Summary w/CEO Michael James from Friday after the market closed:
Let me start by saying Mr. James was very surprised by the reaction the stock had due to this partnership announcement. He said that with over 8 million shares traded on the day of the announcement, the stock may have traded more on this one day than the stock did in a whole year. He said that given all the big events that have taken place in the past year and PR'ed, he was surprised that this event was the one to finally ignite the stock. I explained to him that it is primarily due to the fact that the MJ stocks are really hot right now and it was simply the case of announcing a partnership in sector that was on fire at just the right time.
I asked him if he could provide more details about the partnership with Terra Tech. First off, he is a member of their board, serving as their Chief Financial Officer, which has done for several years. Thus he is very well acquainted with their business and he sees this partnership as a successful long lasting one. They are currently finalizing their testing on the oil-based hemp products they will be introducing to the market, to ensure the product can accomplish what it is intended for. Once they have confirmed the right formulation, they will need to have various sample runs before going into full production. Once they have completed all the necessary steps to ensure a great oil-based hemp supplement that will live up to its claims it will be introduced to the market and an announcement made to the market, other than that he can't comment further at this time. I asked if there would be any follow up PR's about this partnership deal or about the product they will be introducing. In keeping with his ongoing principals of not putting out any fluff PR's just to boost the share price, he will only PR something that is new and truly newsworthy and worthwhile for the company and it's investors. Given what Mr. James said, I believe we won't hear anything more until the finished product is ready to go to market in terms of this partnership deal. Now I know many of you are wondering how soon can we expect to see this new product line hit the market and Mr. James said he won't know anything until the testing and the trial runs are completed, which is currently underway. Mr. James is very excited about this partnership deal w/Terra Tech for Inergetics and its shareholders.
I also asked if he was considering putting out an additional PR stating they have received the $3 Million from the NJ tax redevelopment grant program. He stated he will not put out any additional announcements in the press, since it was announced previously just prior to christmas. He said any repeat of that news, stating they now received what they previously announced would be considered a fluff PR to only attempt to bolster the share price, which is something he has vowed not to do.
In regards to the questions about when will the company be filing their 10k & upcoming 10q's, Mr. James stated that they have completed their 10k and are now meeting with the auditors to go over the numbers and he truly expects to file prior to the deadline and the same goes for the upcoming 1st qtr 10q. He stated that they will always be filing earlier than the deadline dates, as he likes to get these out earliest as possible. Given his extensive background in finance, I don't think we have anything to worry about when it comes to the company filing on time. We can expect 4th qtr and year end results prior to April 1st and 2014 1st qtr results prior to May 15th.
As for the questions persisted by Robin in regards to an estimate of when the company will begin turning a profit and are they selling any shares. Mr. James emphatically stated that the company has not, is not, and has no plans to sell any shares in the future. He stated that anyone who is ever concerned about whether or not the company is selling shares, they can call him directly, so they can hear it straight from him. He had thought he has made this very clear many times! The only small amount of dilution seen quarterly is only from the interest due on the series G shares after he restructured their debt that was incurred by failed past management. As for the question about an estimated time frame of when they will become profitable, Mr James said once again he will not give out any type of projections or estimates of any sort. First off, he said it would not be proper to do so, unless it was in a public announcements, due to the insider trading rules. Secondly, it is something that has been abused in the OTC/BB markets for a long time and he is unwilling to partake in any such practices. In other words, we see these companies make big bold projections to entice the buying of their shares and bolstering the share price so the company can sell shares and dilute shareholders to support the company. In the end, many of these projections never come close to what the company touts in their PR's or through a paid promoter. This is commonly known as a Pump-N-Dump in todays market. Mr. James also made it very clear that the company does not need to sell any shares, as they are growing and supporting the company through increased sales and revenue, along with some recent additional monies in excess of $5 Million they received from the NJ tax redevelopment grant program. Mr. James has absolutely no plans of diluting shareholders and has not done so since restructuring the company's past debt over 1 year ago.
As for the question in regards to the difference between the old Surgex and the new reformulated Surgex, Mr. James said that the biggest difference is less calories and less carbs in the new reformulated Surgex. The flavor has not been changed in any way, as everyone liked the flavors the way they were. I was surprised to hear from Mr. James that he has met one of our members here personally and that is our newest asst moderator, Surgex lover! I never knew this Surgex lover and glad Mr. James mentioned it. BTW - He does remember you well and said you were a very nice gentleman and he enjoyed his chat with you.
As for the rest of the business(Surgex, Martha Stewart Essentials, Bikini Ready, Slim Trim, & Intrinsix), everything is proceeding as planned and they continue to expand all the brands by increasing distribution opportunities and depending upon the terms, those that are allowed, will be announced via a PR. Sales continue to increase as awareness for the brands grows through their ongoing advertising and FSI programs with valuable coupon offers to entice trial. I encourage everyone to call and speak with Mr. James when you have the time. You don't have to have a particular question, you can just try to get a feel for what new management is doing and how the business is doing. He is really an easy person to talk to and he will tell you just as it is without pulling any punches. He is a straightforward and honest CEO who is very personable and enjoys talking to shareholders.
I would like to thank those who submitted their questions to me for Mr. James. I am very excited about the long term success of this company and glad I invested for the long term.
Cheers!
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