It is public information on yahoo finance: http://biz.yahoo.com/e/130516/vsci8-k.html
I meant Pell hired the new CEO who comes from a strong Business Development background to does just that - Develop the Business and turn the corner. VSCI is at an inflection point with great products that are just right where they need to be along with the studies to back them up and the white papers showing what great ROI hospitals and doctors can have with VSCI products. The only thing left is for someone experienced like the new CEO who needs to use his network to get the word out, sign a ton of new deals with private practices and hospitals, ..as well as the government, and increase sales exponentially - not by nickles and dimes. There are many mutual funds and investors waiting to see real progress before they jump in with some real serious money. You will notice the stock gain traction once these results start coming in. I think that progress is around the corner given the amount of shares Pell and company have bought in recent months and years. The train is loaded and is ready to take off. This is the best time ever in my opinion to be onboard the VSCI train before it rolls forward. At a certain point this train will become an airplane with Jets but not yet :)
Sentiment: Strong Buy
I think Pell is getting serious now and hired an expert in Business Development as Interim CEO because he wants to push forward hard from what I can tell.
Big Lew has very high hopes from VSCI. It took him 15+ years to build this company not to sell it cheap at the end. He wants this baby to execute its business plan and reach its potential. $2.3 Billion market is a very big market indeed and VSCI is poised to capitalize on it with the right leadership. $50-$100 is not something that is not doable if all cards are in play. If the company is sold I think the most he could wish for would be $8-$10.
besides insulting me, you have not answered the question. This board is supposed to be for sharing candid opinions and info about our investment in VSCI. If you would like to use to take a cheap shot at me instead, well..you just did. Now get the #$%$,,,,k of this board.
I am starting to get really concerned that the CEO is planning to file for Bankruptcy and pay himself what the company owes him and leave us all remaining shareholders out with nothing!!
Liquidity and Capital Resources
We have incurred substantial operating losses since our inception and there can be no assurance that we will ever achieve or sustain a profitable level of operations in the future. We anticipate that we will continue to incur negative cash flows from operations during the remainder of fiscal 2013, driven by continued investment in a direct sales force for the U.S. market, spending for marketing, and general business operations. As of December 31, 2012, we had cash and cash equivalents totaling approximately $1.3 million. We expect that our cash at December 31, 2012, together with the $5 million of capital available under a convertible note dated September 19, 2012 with Lewis C. Pell, our Chairman (see Note 5. Long-Term Debt – Related Party for additional information), should be sufficient to fund our operations through at least December 31, 2013. However, if our performance expectations fall short (including our failure to generate expected levels of sales) or our expenses exceed expectations, we will need to secure additional financing and/or reduce our expenses to continue our operations. Our failure to do so would have a material adverse impact on our prospects and financial condition. There can be no assurance that any contemplated additional financing will be available on terms acceptable to us, if at all. If required, we believe we would be able to reduce our expenses to a sufficient level to continue to operate as a going concern.
Our officers and directors have the ability to exercise significant control over the Company
As of December 31, 2012, our officers and directors owned an aggregate of approximately 36% of our outstanding common stock. Under a convertible note dated September 19, 2012, our Chairman, at his option, has the right to convert the unpaid principal balance of $15.0 million into 12,500,000 shares of our common stock. The conversion of this note would increase the aggregate ownership of our officers and directors to approximately 50% of our common stock. As such, our directors and officers exercise significant control over all matters requiring stockholder approval, including the election of directors and approval of significant corporate transactions. This concentration of ownership may have the effect of delaying or preventing a change in control of the Company or forcing management to change its operating strategies, which may be to the benefit of management but not in the interest of the stockholders.
point GOOG holders will start to take profits and buy AAPL back.
Great Question - The interesting thing is that the CEO and his buddies are buying up the shares like they are going out of fashion. My only guess at this is a buyout is eminent.
On the other hand, these sleeper stocks take for ever to penetrate an existing market or establish a new market which is more likely the case with VSCI's products since they are changing the culture of how Doctors will be using scopes moving forward. It is NOT an easy endeavor to say the least and can be quite challenging for the most established companies. VSCI's management does not seem to have that great of a track record if any, so time will tell. They will need to get some really smart people on their board to help steer the company up this steep hill. This hill for VSCI is having as many training hospitals and well established hospitals and hospital systems start using VSCI's relatively new products. Once traction is established momentum starts building and sales will surge exponentially. Profits will grow as the cost of manufacturing decreases with volume production. This is going to be the key if not the only way for VSCI to lower its manufacturing costs - VOLUME!
This inflection point can happen and it will happen, but the key question for now is how much money can the company burn through in the process and who is going to keep financing it? This a question for Mr Pell Lewis and company to answer, and so far, he has not stepped back at all from financing his baby and even purchase ton of stock to keep it $1. I would like to see this company make it on its own rather than sell to a competitor or partner like Styker, but if a good offer comes at or $10, I will take it for now. Otherwise, I would like to hold this baby for $50+, maybe $100+ or even $500+ one day - years down the road I understand, but it can happen.
to be announced after earnings release, but either what I heard is completely wrong, or we might still see an announcement in the coming days or maybe weeks. Again, I am not holding my breath and I quite frankly would love to see the investment, but can care less about a full buyout as I want to see VSCI succeed and reach its fullest potential (double or triple digits).
will be significant for the company and the stock if this proves to be the case. Crossing my fingers but not holding my breath.
If you look at AAPL few years back when it was dying, it hit $1/share. So did many of what became growth companies before they turned around their business and started gaining traction. If you threw out a number like $120 for AAPL back then, people would have laughed at you as well, how about 200, 300, 400, ..or almost $700/share which is where it trades now? I am not saying VSCI will reach $120 although I would not rule it out, but if it too starts gaining traction in its space and start capitalizing on the opportunities the market presents in a smart way, VSCI can too start to grow in a similar way that many other companies have. So, while today $6 or $12 seem like a fair market price, tomorrow can hold a totally different picture for VSCI and its shareholders.
Math correction: if Lew sells at $12 he would have $200 Million Vs 2 Billion that he could get if he let VSCI grow and reach it full potential at $120 he would be sitting at 21 Billion which sounds like fantasy today, but not when VSCI really starts to penetrate the market and grow its sales exponentially. 200M vs 21B?
You know big Lew has only 1 way to sell all his shares and long-term investment in VSCI, or wait till the price is so high that selling few million shares here and there does not have much of an effect on price as Institutional investors and funds would be buying VSCI stock in large blocks (after future success). Let's look at each of these two scenarios:
1. Let the company fulfill his initial business plan when he started the business and have it grow to its full potential: The IPO for VSCI was around $12; I am sure big Lew would like to see a price for VSCI go up 10x; so a target price of 10x the initial public offering would yield a reasonable price target of a around $120. This is an estimate based on what Lew had in mind when he founded the company back in 1992. At that price big Lew can start selling his stocks without much of an impact on price overnight.
2. Sell the company: It would have to be at a price worth his long wait time on his investment in VSCI over the past 20 years or so. If big Lew put in an initial investment of 20 Million, other than what he added since the IPO (which is many more millions), but lets say he had an average of 20 million into VSCI for 20 years, he would want at least 20x10 = 200Million. Since he owns about 17 Million now in stock, VSCI would have to be sold at $11-12/share today.
Of course, not selling the business, could give her far more money - at a price of $120, he would be sitting on 2 Billion dollars instead of 120 million. So let's see what he really wants given the potential of the company say 3-5 years down the road.
Thanks CYTR for the 100% return in May and June.
I am putting 50% of my proceeds into VSCI for a much better long-term prospect here. I would rather be in a real company with real products and a strong long-term future rather than a gamble like CYTR here which is risky very risky at these levels. Too much resistance in this area; VSCI has bottomed and is starting to rise for its next target around $6-$7.
Have a nice day everyone..