Replies to post #114672 on Potnetwork Holdings Inc. (fka POTN)

[Matthew12321]

Agree with your sentiment. Everyone needs to make a point to be on the Q3 conference call whenever they have it and demand mgmt refi that convertible yesterday. No joke here - we are the shareholders and they can find better terms than converting a note at .003 (if that is still what's going on since mgmt isn't clear at all). Overall I'm still a holder and am not selling a thing. I think the financials are too strong too sell, we jsut need that convertible done away with and we can lift off.

[la_trader]

thanks for the summary- i concur. to me the good news is in the earnings. As in, they are actually making money and growing revenue. In ref to borrowing it is a necessary evil. Either you do a converting note, a share offering, or sell equity stake in the company. Or maybe you just have Jeff Bezos sending you free angel investor money. (kidding) lol. Either way, obtaining money for early stage growth is imperative and it is normally not feasible to use gross income to fund everything, even with the acquisition of another profitable company.

The key here is making sure management is not abusing the privilege of raising money at the expense of shareholder value and corp health. e.g. some companies in this sector are not making any revenue but keep "printing money" through convertibles and/or S/O. sort of a scam.

POTN appears to me they are intent on growing into a mature business, they have 100% executed on previously stated plans, and are positioned make a lot of money.

I also like FRLF and am presently studying it.

Disclaimer - I am long POTN a total of 200k shares as of this week

[researcher11]

Here's what I think about in what you said

Increased A/R of $259k.....increased sales always = increased A/R and they said A/R are less than 30 days old. (good)


Purchases Paid but in Transit of $483k... They were sold out at the Vegas show, many of their items keep showing on their website as sold out....so you borrow $477k to buy $483K of inventory so you won't be sold out. (bad and good)

The biggest problem is the terms they have to borrow that $477k at....leaves a sour taste and all kind of questions. (horrible)

Seems to me if they can't get better terms on that loan than they are getting, they just aren't trying hard enough.