I first learned of DSNY via MicroCapClub over 2 years ago and invested. Upon learning that HTFBS was covering it I subscribed to get a greater in depth understanding of the technology, as well as other opportunities. Best investment ever made in terms of tool for DD on individual stocks.
My network of 20 or so associated investors also invested some at that time and some later. Investments ranged from a few thousand shares to 200k shares. As with other investors, I also was impressed with the potential of the technology. But I always knew it was "potential" and its success would be based upon execution by the company (assuming it did have a secret sauce).
Besides my attending for my firm, a number of Investor Conferences (some of which Brooklyn attended, invested thereafter and was furious also with "perceived" misleading statements) and speaking to Steve (and I won't go into details)we assisted (uncompensated) the company on a several occasions with introducing it to and meeting with a couple of Private Equity firms (which I also attended). I also conversed via email with a few Seeking Alpha authors asking their thoughts and opinions on the tech and company. One has written several article first promoting, and now defending DSNY all the way down. (by the way...they subscribed to HTFBS after my introduction and prior to writing their first article and I assume spoke with the company, but much of the first article sounded like Van's newsletter summary).
You are right...I am now totally out of my 200k shares...selling the last at 1.40. I have no intentions of entering unless the SP reaches $3 pre-RS. Why? Because that would indicate confidence in management and carrying out its business plan within a reasonably acceptable time-frame. I suggested on this board that the price could easily dip to around .80 (200sma) and it did. Did I buy it for a trade...NO...not the least bit interested. First, I dont sit around daytrading my "investments", though I grant you some money could be made. But like VAN I have no intentions of being a slave to my screen and have a different model for investing which, like Van, is quite profitable.
Now why am I still on DSNY's board...
first, because some of my associates who can't or don't follow the boards and the company's progress or lack-thereof are still invested. Many of them subscribe to HTFBS, but don't follow the nuances, and as a result I pass on posting and keep them updated with personal email because above them making money, I am more concerned about them not losing money.
secondly, and in support of my first reason, I am interested in determining if this company really has the ability to execute and whether it can actually become disruptive with its technology. I have grown highly suspect of Steve's ability to execute and have not been able to determine if it is because of fundamental flaws in its technology, business plan or executive team and am determined to "stir the pot" here to find out the answer. Steve is not a dis-interested "third party" on who's opinion, I would consider or expect to objective.
third, I never tell anyone to buy or sell, I tell them what I am doing and why. Some of my associates, were even smart enough before me and sold earlier than me. They put it all together (being less attached and having less of a personal (time) investment in the company). Others sold while I did. Others held on stubbornly...probably because they did not want to take a few thousand dollar loss (which in one case is now $90,000...because IMHO...he made direct contact with Steve and became lulled into a false sense of security in "hearing it from the horses mouth").
The "nail in the coffin" for me was not HTFBS comments, nor the "big short", or any comments on this board or any other instrument of research...it was breach of credibility exhibited by the Company when after months had promised to "launch" clipstream and commence its sale to customers, as I re-call, before the end of the last quarter. On almost the last minute of the last hour of the last day of the quarter...they "announced" a "technical launch".
IMHO it was as though they were afraid of SH suit had they not "fulfilled" what they had clearly said was to occur "a launch before the end of the quarter". Even at that, it was more of a Beta version (IMHO...contrary to the impression it wanted to give), not a real revenue producer. It was the last time I was going to feel BS'ed to, as an investor, by the company. IMHO the company is a habitual "issue" with clarity of its deadlines and its progress (and perhaps the demand or breath of demand for its product). Answers to the question why such a problems with deadlines exists and clarity of demand is what IMHO every investor should be asking and getting answers to.
But the bottom line, with associates still in the game...I feel compelled to be involved. (Which only takes away from more productive activities for myself) Once they are all out...I am gone.
I have no interest in investing in DSNY unless there appears a compelling reason. To date, I have not seen it and question whether I will. I stay 100% invested in other stocks, and I do not intend to move money out of more compelling investments...even for an opportunistic trade. (leave it for you traders)
ps...my returns from their high, evaporated by 6 figures, but my return was still 6 figures...and would have been significantly less had I not kept my eyes and ears open to reality. But after re-investment those funds are back and exceed prior highs by a considerable sum. I wish I could say the same for some of my associates.
