Replies to post #32351 on Sphere 3D Corp (ANY)

[Tamtam]

Thank you for both posts of yours, they set things in the right view.

[macnqueso]

Very much appreciate your thoughtful posts. Quite helpful. Thanks Chairman.

[macnqueso]

There is likely no industry segment more careful about disclosing trade information and secrets than the fast changing, highly competitive tech segment. And these times, with a paradigm shift underway, are especially sensitive and turbulent... a degree of paranoia in this regard is healthy for tech companies... S3D needs to keep its most sensitive information close as does its partners... while this may hurt shareholders in the short run... in the long run the protection of intellectual property, trade secrets and partner relationships actually enhances shareholder value... the attempt to skew this as some kind of conspiracy is ludicrous... the Canadian regs are real as your post emphasizes... S3D did the right thing for the company, for partners and for true long horizon investors by pulling their target rev estimates under the current circumstances... S3D is in the middle of a storm... and is in fact attacked daily... it is proper to be cautious... the next 6 quarters will tell the tale... by the end of 2016 we will know with certainty which investment thesis was correct... the bears or the bulls... jmo... glta...

[Hugodrax]

Actually, Chairman, you are wrong. What you should understand is that just because there is one example that has details, it doesn't mean that other examples are wrong. It is not prescriptive. The rules just say the "material factors" should be "reasonable, supportable, entity-specific, tied to FLI and disclosed".

They talk about an example of a retailer using same-store sales growth AS AN EXAMPLE, not by prescription.

A very relevent example the regulator gives is a company that states: "The entity expects EBITDA for segment #1 to reach $125 million by 2014."

They give perfectly acceptable disclosure of the material factors re the above as:

"Retail business conditions are assumed to be within normal parameters with respect to prices, margins, product availability, and supplier agreements for our major products.

ABC’s ability to identify suitable candidates for acquisitions and negotiate acceptable terms . ABC’s ability to integrate acquisitions, including its ability to achieve efficiencies as planned.

ABC’s ability to implement its standards, controls, procedures and policies at the acquired business to realize the expected synergies."


They give even more room regarding Key Performance Indicators by noting "KPIs can be both qualitative and quantitative."


Anyone with an ounce of common sense knows that the company could have easily done this.IMHO.



Also IMHO, it seems patently obvious that they DID NOT WANT the $160M run rate "goal" to BE deemed FLI/guidance. The last CC made this obvious when Cabel asked them flat out if it is guidance and they bobbed and weaved.

Perhaps this part of NI-51-102 is the reason: "FLI can only be disclosed if there is a reasonable basis for the information"

The fact that the regulators seem to have called them out to provide at least SOME basis for the $160M means, IMHO and in my speculation, that they are using it as a convenient excuse to back off of it.


But let's get to the real point Chairman - a yes or no answer will suffice:

Do you think they will hit $40M in revenue in Q4? I'll even give you the Imation revenue in there. Yes or No?

[Pepsiman2001]

Absolutely no reason to comply with the regs in these early stages of the company. The Company was correct in walking it back instead of disclosing FLI.

For example, if there was a particular deal that lead to the euphoric providing of this goal, it would be easy to reverse engineer it to figure out much of the detail they want to keep proprietary.

Its such a shame this has turned out the way that it has. Keep this in mind when longs complain about lack of information. Every time Mgmt tries to throw shareholders a bone, the destructive, vicious wolves tear it apart. Its why we we will no longer hear about specific deals. Now we will not hear "goals". Brace yourselves for the company to eventually closing off all communication except for filings. When trying to look out for your shareholders, how many times does it have to backfire before the risk outweighs the reward. I'd imagine they are getting close to that tipping point.

Don't hit me with the having to file material info. The guidelines are broad and easy to skirt around. You do not have to PR sales, even big sales. The excuse can be proprietary info. Like with most instances, save the sale of the company or merger.

I have a feeling there's going to be a whole lot more to complain about before being able to celebrate. Before complaining about MGMT, bear in mind the collection of circumstances that got us to this point. Company first, Share price 2nd. Hope they continue to run the company correctly because revenues will follow. Then the share price will react. I have all but given up on the share price moving on potential. There is a dark entity involved with this stock that isn't involved in most others. Combatting this entity can be done with results only. Which means we are not able to celebrate during the PROCESS. Only at the finish line. Not as much fun, I agree. But it is what it is. See ya at the finish line.

All imo