FYI - It was a result I sent a limit order to buy 8000 at .30 for my own account. I was surprised to see it immediately filled since the ask was pretty far away at .3499. Was it a computer fill? Was there an invisible 'all or none' limit order to sell matching mine (I doubt it), or was there a super high frequency trading computer that did not want a limit to sit in from of its limit at .27? (selling at .30 and hoping to buy at .27?). Don't know why it filled like that. I will be posting much less because I am not supposed to do this on the job. Also I have to be extra careful that I am not giving financial advice, so it is to stay out of trouble. I may post on the weekends, but I will be travelling out of the country through May. Best luck.
It was more of a footnote, but I think I understood it correctly: Under 'results of operations' section, second paragraph in the latest Annual report:
Gross Loss: For the fiscal year ended December 31,
2014, the Company had a gross loss of ($27,890)
compared to a gross loss of ($39,260) for the fiscal
year ended December 31, 2013. Modifications
to the assembly machine to accommodate the
improved silicone seal contributed to the gross
loss. The modifications were a one-time expense.
As a reminder I think that the two highlights for me in the report were that we are still on for PepsiCo China ramping this year as well as for another very large Chinese distributor (all for this year). I also thought it was interesting they retrofitted their factory for a new and improved seal which sort of confirms the December 2014 news from Starlim about developing a 100% foolproof seal for IDC and being in serial production for months. They aren't sitting on their laurels.
I notice on the CNN website they are featuring South African Xenophobic violence against foreigners and their businesses. In some cities it has turned violent with arson and looting foreign businesses and murdering foreign business owners. Part of the tinder box includes a 25% unemployment rate, many without food or water.
One of the common roles of a CEO is to bolster stock performance. This is tied to the notion that management works for the owners which are the shareholders in a public company. Often a CEO's compensation is directly tied to stock performance. I hope the new CEO views this as one of his responsibilities or roles. Our old CEO, now chairman, seemed to be actively supporting the stock price in the past, but not as much recently, and the stock has performed poorly. I hope Mr. Shaver can inject some new life into this company, and stock. It could be his promotion was timed to coincide with the ramping of our two partners in China (PepsiCo/Tingyi and one as yet unnamed) later this year. These events offer multiple opportunities for substantial positive changes in the stock price. Mr. Shaver has a background in marketing, so he probably recognizes the importance of communication and publicity, branding, and shareholders as important stakeholders, and is not just focused on the customers and the status quo.
Well that was my point. However packaging is part of how they present their product which is why they still have a stake in the business and the same Marketing chief governs both companies. But bottling is a low margin business so I think funding may have to come from both companies (possibly - this makes sense to me). But the alliance (as it is referred to) was to help PepsiCo and Tingyi bring new products to market faster. It is evident so far that the Answer is to be a major part of that strategy.
Benefits were said to include:
•Bringing innovative new products to market faster and improving choice for Chinese consumers across the country
•Improving operating efficiency and reducing costs by combining local and global expertise in manufacturing and distribution
•Providing better service to PepsiCo's retail and food service customers in China through TAB's distribution expertise
•Supporting new opportunities to develop local economies in interior and western China
•Extending the national distribution of PepsiCo's carbonated soft drink and non-carbonated beverage brands
•Increasing the investment made in PepsiCo brands and marketing in China
Pepsico sold its low margin bottling business to the distributor Tingy a few years ago. It was a strategic allicance for both entities. The Chief of Marketing for both companies is the same person. But it looks like it is not just PepsiCo. Tingyi is an important stakeholder and may be the one making the infrastructure changes.
This is a good summary from a March 2012 article when the alliance was finalized:
As part of the alliance, Tingyi's beverage subsidiary – Tingyi-Asahi Beverages Holding Co Ltd (TAB), one of the country's leading beverage manufacturers – is now PepsiCo's franchise bottler in China. TAB will partner with PepsiCo's current bottlers to manufacture, sell and distribute PepsiCo's carbonated soft drink and Gatorade brands. In addition, PepsiCo and TAB will begin co-branding their respective juice drink brands using the Tropicana brand name under license from PepsiCo. PepsiCo will retain branding and marketing responsibilities for these products.
Under the terms of the alliance, PepsiCo has contributed its indirect equity interests in its company-owned and joint venture bottling operations in China to TAB and received as consideration a five percent indirect equity interest in TAB. PepsiCo has an option to increase its indirect holding in TAB to 20 percent at its sole discretion by 2015. The shareholdings of PepsiCo's existing Chinese joint venture partners in the joint venture bottling operations will not change as a result of the transaction.
The PepsiCo-Tingyi beverage system now provides Chinese consumers with some of the country's most popular beverage products, including:
•Pepsi, China's top-selling cola
•Mirinda, China's top-selling flavored carbonated soft drink
•Gatorade, one of China's top-selling sports drinks
•China's top-selling tea and water brands, sold under TAB's Master Kong brand name
•China's second-largest juice portfolio
to be continued:
As a shareholder I hope the strategic potential JDAs and accelerated licensing efforts are successful. They are running this show on a shoe string. I think their salaries are too high since normally executive salaries are tied to stock performance and that has not been good due to dilution resulting from having to perpetuate the firm as an operation while for much longer than expected they have not been able to get financing beyond just perpetuating the firm as an operation. So cutting costs should start with their salaries until they can start running based on operating revenues and cash flow. They gave themselves more than half of the outstanding shares after diluting us out 1 for 5. I think that was a little over the top since they have not yet done anything for us. Too big a reward for having delivered nothing yet. Either that or I would be glad if someone in the industry with deep pockets came along and realized their IP is worth more than $1 billion, offered half and we take it! I would be glad. Then I can finally get my return! That's all I am interested in at this point. A return on my investment. So much money. So many years. Starting to get the feeling I am being led on, and led on, and led on, like it's all gonig to happen this year, but year after year and still nothing. I would like to get to then end of this long dark tunnel. It was supposed to all happen in 2 years, 10 years ago. Is it still 2 years out before we go public? This is taking too long IMO. B ut we are looking really good as far as the IP is concerned thanks to our researchers, scientists. That is where all the value is. That is worth a billion to someone with the money and the wherewithal to apply it. That is my hope.
I hope it does come to fruition soon. It would be a big deal. I would rather see IDND resting somewhere above $1.00 (between reports) than at .25 (where my return is negative on every lot I purchased since 2011).
Have we ever stepped out of the Beverage Insdustry into the Pharmaceutical Industry? Wouldn't there be a need for aseptic taps and accurate metering in dispensing liquids in a hospital environment as our updated improved aseptic tap allows?
I studied the history of the competition between Pepsi and Coke during my MBA program back in the 90s. There is also a keen awareness of what is called a 'first mover' advantage, as well as differentiating your products in some way over those of your competition. The good thing is our product offers a strategic advantage, so it is a matter of 'who will be the winner?', and not if but when. This is a good position to be in. We just have to hope that the 'when' is sooner than later since we are running on a shoestring.
Well if Pepsi delays much longer, Coke might beat them to the punch. Our representative in China is apparently working with them now according to the report. I agree either would be good. It looks lie about $100 worth of trades were executed today. The commissions must be almost as expensive as the stock!
I attribute value to it. The value will someday be in the form of cash and at that point I think the value will be understood. Most of the market has difficulty assigning value to assets, and projects. It is even worse when it comes to intellectual property. But I see it as a major future cash cow that has been rendered a zero value by the market (worth billions after mining costs in future cash flows). Oh well that's why I don't mind sitting and waiting. It could be a matter of years but I think we will eventually see the $3 to $10 range.
I think it's safe to say we can reasonably expect that two large Chinese distributors, one being PepsiCo China, and the other not named due to confidentiality agreements, are expected to ramp by the end of 2015. That is a reason for me to not sell.
I think the promotion of Tom to CEO was significant, no offense at all meant to Greg, and I am glad his ego didn't prevent this smart move. About Tom: "At SIG Combibloc, one of the world’s leading system suppliers of aseptic carton packaging and filling machines for beverages and food, with worldwide revenues of $1.9 billion... As Vice President of Marketing for North and Central America, Mr. Shaver developed the strategic roadmap that produced record sales for North America. He was directly responsible for all SIG Combibloc global account management sales activities for Coca Cola and PepsiCo, and executed multi-million dollar equipment and packaging contracts for Unilever and Campbell’s Soup."
He was probably promoted because his background was more aligned specifically with this product and industry than Greg's and he has years of previous experience and success working with Coca Cola and PepsiCo as clients (so he is not a stranger to them). He is also still in his 40s. I have a feeling he was already being considered for being promoted to CEO but when Sophia complained that Greg was over 60, and the company would be without a leader as he faded into retirement, I think that did it. I am over 60 too but there are many people out there who don't realize that 60 is the new 39. I'm reminded I have grey hair everytime someone stands up to offer me a seat on the subway. No one asks about how I can still run a 7 minute mile, maintain my college weight (down 50 pounds from my worst post college weight in 1977), can press more than I could in my 20s, have a bone density same as the average 30 year old, still have all my hair and teeth and I don't have memory problems yet. I don't feel old yet. I suppose I will go mountain climbing, biking, when I am forced to retire at 70 into a non-idle retirement. Yeah I know, it is all about the fading hair color, that extra thin line around the throat. NO old goats allowed in the pig sty. I can read the writing on the wall.
Aside from the typical standard scary disclaimers that have frightened Sophia again, and the fact that we were don to the line regarding cash, there were some non-negative positives such as operating expenses were cut by $600K and should stay down. And the following little details seemed
to contain some substance regarding progress though we are all still pounding the table asking "Where's the B$$F?"
1. "customers that Li Xin has been cultivating, including Doehler, Nestlé, Huiyuan (the largest privately held juice company in China), and Coca-Cola."
2. Doehler has invested in BIB fillers for the project and is in the process of actively marketing The Answer® to institutional customers throughout China.
3. India: The Company has recently been contacted by the world’s largest producer of mangoes, based in India and the primary mango supplier to Coca-Cola, for sample bags and taps for a potential project.
4. (Pakistan):Engro Foods department heads, underscored that, 1) IDC’s pricing model is competitive, 2) Engro is willing to invest in infrastructure, 3) Engro is willing to convert existing product lines
to The Answer® and believes that The Answer® can help it expand other product lines into new distribution channels for the first time.
5. China PepsiCo: He reiterated: "both PepsiCo headquarters and PepsiCo China have stated that The Answer®
will “absolutely” be launched in 2015" .. well at least they didn't change their minds :)
a.PepsiCo also confirmed that it conducted a comprehensive worldwide search for an aseptic tap and found that only The Answer® worked as promised and passed all their
b. As a result of Li’s speaking engagement last year, a major multinational food and beverage company is now moving toward a launch of tea, soy, and peanut milk products with The Answer®
in China in late 2015.? Who is the???
So we have 2 major China distributors expected to be ramping this year now? This is hopeful.
I agree. I noticed this mention: Modifications
to the assembly machine to accommodate the
improved silicone seal contributed to the gross
loss. The modifications were a one-time expense.
So it looks like the seal was improved recently as some of us thought
Again we are making substantial progress with our partners but I notice we are running out of cash. I would say I am disappointed but not extremely. But we need to quintuple our sales or more up to 10 million taps sold from 2 million to get beyond our expenses. I'll be excited when we receive large orders from new customers of substantial size so we can finally show progress on our income and balance sheets. It looks like we are edging closer to receiving orders from several partners but this has to accelerate into deals. I hope
something happens this year in that regard.
Mr. Shubin also eloquently argued not only that we all have similar fundamental skeletal and other biological structures and functions, but that we share an amazing number of genes which are inherited which suggests we share a common ancestry and of course similar species may be closer on the family tree to each other with more genes in common. We actually share 99% of our genes with a Chimpanzee which shows how important and powerful a few genes can be. He also used his knowledge of geology to locate 2 missing link fossils which were predicted but not yet found. One was a fossil of a walking fish which he predicted would have to have existed prior to the first amphibians and he went canada where there were rocks and layers of fossil baring rock dated to 375 million years ago which was about when he expected these fish with fins that enable them to get on land (we actually still have walking fish today). He found these particular fossils he was looking for. The theory of evolution also predicted that we should find some link between the reptile and the mammal because it was suspected that mammals came from reptiles. He indeed found this missing link as well in rock in the Bay of Fundi that were in strata that represented the time when they would have emerged. He found a fossil showing a rodent like mammal with some distinctly reptilian features. All mammals apparently eveolved from this little creature. It was also forecasted that because whales were mammals they probably evolved from being a land animal so they should find fossil whale bones somewhere with vestigal limbs, and they subsequently found several of these in Northern Africa. It is a pretty powerful 'theory'.