$3 million for the O&O business, eh? Now what was your estimate...?
So inuvo showed up at a conference hosted by Dawson James. Has anyone found D-J's website? Check this out from the Fitapel Kurtalawfirm:
Dawson James has a history of customer and regulatory complaints.
Dawson James has a number of regulatory events disclosed on its securities license. Below are examples of such conduct:
In April 2014, Dawson James was fined by FINRA for having an inadequate supervisory system. Specifically, the complaint discloses that Dawson James for failed to investigate a number of “red flags” in certain customer accounts. These red flags included high concentrations of securities in customer accounts as well as numerous suspicious transactions. In addition to failing to detect and investigate red flags, the FINRA complaint also alleged that Dawson James failed to enforce its existing written supervisory procedures. Having adequate supervisory procedures in place is vital to any broker dealer as it ensures the well-being of customers and protects against broker misconduct.
In August 2013, Dawson James was fined for complaints related to the buying/selling of bonds to customers at prices that were not fair. In connection with these complaints, FINRA determined that Dawson James Securities failed to use reasonable diligence to determine the best price for these securities, which were sold to its customers.
In addition to these complaints, Dawson James has other publically disclosed regulatory and customer complaints on its securities license.
Meanwhile, I have my hands so full of dealing with the bankruptcy lawyers that I cannot get around to publishing the required SEC quarterly reports...
(per SEC filing)
Donedoodit - Individual Investor
Thank you. Hi, guys! Looking at your cash flow statement, do you anticipate a Chapter 11 filing before or after the end of the second quarter?
Kenny Kragone, CMP*: Probably sooner than later...
* Chief Mouth Piece
Yes indeedy, there are all of three such "experts" following and recommending the shares of this company on the sell-side of Wall Street, including Wainwright that was recommending purchase of LOCM right up to that company's bankruptcy filing.
Typically, Wall Street assigns small-cap names such as this one to its most junior analysts and analyst-trainees, so that their mistakes will not damage the broker's clients too significantly. Keeping in mind that the broker's clients that are important are the institutional accounts. You are considered to be a "customer" -- pure cannon fodder.
Two points, Ol' Boy:
First, the April P/R that you copied and pasted (again, for the umpteenth time) was superceded by the June 26 P/R that said "We're bankrupt -- we power nothing."
Second, you should know that the trustee in not in a position to fire anyone. He can bring criminal charges if he is so inclined, but only the company and its BOD can do the firing, even in a bankrupt condition. The only ones with any real power of persuasion are the unsecured creditors who can, as a committee, recommend to the company's Board that any or all individuals should be fired. You perhaps ought to petition Robbins Kaplan, the Creditors' Committee mouthpiece, to make this recommendation.
But when you run the books through GAAP accounting (which is NOT what the Court looks at), you find a much bigger number for book value...except that it has a "minus" sign in front of it.
(Hint: given the stock price and the June 26 filing, think about what the accountants will recommend be done with the goodwill account that Loco Corpse continues to tell the Court is worth the same as at March 31, 2015.)
The value of nQuery is worth at least a cup of coffee at McDonalds, judging by the level of interest CFO Cragun reports to the SEC...maybe two cups!
It is not necessary to file an 8-K if the transaction is not material to either earnings or the financial condition of the company.
That being the case, Ding#$%$, how much lower do you think management needs to bash the stock price before they swoop in and buy the company?
Considering the small size of this company, the time it is taking to get any kind of a deal done would suggest that the "stalking horse" is simply a large dog....
3. State what progress was made during the reporting period toward filing a plan of reorganization
Selected a stalking horse bidder candidate, working on an asset purchase agreement and drafting Section 363 bidding procedures.
4. Describe potential future developments which may have a significant impact on the case:
Future developments include the possible sale of assets through a Section 363 sales process.
At present, the Company does not expect that it will have any assets to deliver to the holders of the Company’s Common Stock, $0.00001 par value, following completion of the sale process based on current indications of interest and the total amount of debt owed by the Company. If certain requirements of the Bankruptcy Code are met, a Chapter 11 plan can be confirmed notwithstanding its rejection by the Company’s equity securityholders and notwithstanding the fact that such equity securityholders do not receive or retain any property on account of their equity interests under the plan. Accordingly, the Company urges extreme caution with respect to existing and future investments in its securities.
Source: Form 8K dated 9/17/2015
Now, I have a question: If there is indeed a "stalking horse," then surely this information should have been made know to the bankruptcy court, in which case Winthrop Couchpotato, the company's BK mouthpiece, should have the filings availabl on its website. But Winthrop Couchpotato doesn't even list the company as a client,three full months after its bankruptcy petition!
Those financials sure turned a lot of heads, eh stannguruknowsnothing?
By the way, in our country, no court can force anyone to buy anything. Maybe the federal reserve can put pressure on Bank of America to buy Merrill Lynch and Cuntrywide Financial, but those pressure are not manifest in a court order. And they certainly do not extend to a Google buying anything from Loco Corpse. You might wish to brush up on the U.S. Constitution before you make your inane remarks.
In other words, as of March 31, they were essentially lying about the net value of their property & equipment...
It is all very strange. If they sold assets, they have to report it. Also, note in the first monthly report, issued in August, that the line item Property plant and equipment dropped by 90% from the last 10Q we saw (March 31). What had been $5,196,000 has suddenly become $520,000. Very strange, indeed.
At the same time, the pre-petition liabilities amounting to $28,714,000, are a solid $3,042,000 higher than the liabilites at Mar 31, while assets DECREASED by $2,235 (including the decrease in plant & equipment of $4,676,000).
Actually, it is possible to make asset and liability valuation changes and run the changes directly to the equity account without running it through the income statement. Never made much sense to me when this change was made in the early 1980s, but then again, the FASB has often made some strange accounting rules...