"You really do not seem to understand what is afoot at all, Dutch. They are not taking ANY of the VIE cash."
You really think so? Or perhaps you are discussing semantics and wasting all of our time. Again. Which would be more plausible? Come to think of it, it's probably best to put you back on ignore. You have all the answers anyway.
Jimmy, you are all over the place.
Of course the parent decides what happens to a child. And yes, the BOD can fire the CEO any time they want to. Of course they must have a good reason.
Half the cash, all of the cash. Of course they want all of it. Take a look at the corporate strucure in the 10-K. It doesn't matter where they keep the cash. My point was simply, they can't take all of it. They have to leave some behind for daily operations and employee benefits. But I reckon it's just a small amount.
As for 50% of the votes, they probably need it to approve (and speed up) a buyout (by Han) if it comes to that. They may need it for a dividend. I think it depends on the jurisdiction of incorporation (Nevada) and/or corporate bylaws. Who knows what else they may need it for.
"Tick told me that is $65m. I wondered why that doesn't correspond to 1/2 the cash on the latest BS (ie. last 10-Q)."
They can't get all of it. They have to leave some cash behind for daily operations and employee benefits etc.
"The firing of the DSB BOD was fascinating"
That was to be expected. I thought they would have done that a lot sooner. But at least it is done now, as of Feb 3.
"so that is the basis for inflating the float from 17m to 25m shares."
Well, one can only hope that they did it because they want an easy 50% of the votes. Of course I don't trust them. But, the encouraging fact to me is that none of the 9 investors sold any shares in the past few days. They received a bunch of shares for free but they didn't even sell their existing ones.
Btw, ZA was delisted from NYSE because the market cap dropped below $15M. Different rules apply to Nasdaq. I don't want to scare anyone. CCCL will simply have to do a reverse split to stay listed.
I assume they wanted to raise more cash initially. The F-3 filing is for $20M total (potentially).
Also, these management teams are rather clueless when it comes to the impact of these offerings. They will only learn the hard way. ZA (now Zahly) also had a small $3M potential offering. The stock crashed, market cap dropped below $15M and they were delisted. Now trading on the grey market for a fraction of that $15M. They never even raised cash. Utterly destroyed.
So, we are looking at a bit of mismanagement here. It happens all the time. In general, most managers underestimate the amount of cash needed to keep things going. Not unlike the shareholders !
And what the company will do is, if they need the money, they will get it.
You want to learn something from this?
Buy HERB. They don't have any cash. But they did an asset swap last year. They will have $140M of FREE cash flow starting LAST year. And no, it's not a fraud.
CCCL is high on my buy list as well. But not even close to HERB.
I know they have $35M. But it's not enough.
I have said this many times. People in the US should not be allowed to participate in the stock market unless they get a basic education first. But the SEC is not listening.
The new production line. Inventory build up. And Account Receivables will go up.
All of that costs money.
I don't own the stock. Just trying to help. Because you people don't undertand much apparently.
"Too bad all of this risk wasn't clearly spelled out in the annual 10-k reports."
Yup. We can always sue the entire BOD if they keep on diluting us.
Have it your way Jimmy.
I have explained why insiders can't buy (or sell) and I think I explained it well.
I'm not going to argue with fools who refuse to listen.
Neither do I have any intention of interacting with bashers who want to buy it cheap.
The Yahoo message boards are corrupted.
There isn't a single sane soul left on here.
So I'm done here.
You want to take away my right to vote now, Jimmy?
Why don't you sell the stock and save yourself the agony. It could be bad for your health.
I'm not sure what your point is pappy. My point is simply that insiders will not be buying or selling any shares at the moment. They probably talk to legal counsel all the time so they are better informed than the market. And that quickly translates to material non-public information.
We have rules. Insiders are not allowed to rip-off unsuspecting investors. This is not the Wild West. End of story.
Get a clue, folks. Insiders are not allowed to buy stock when in possession of material non-public information. Do you REALLY want them to buy stock from you or anyone else in the market place while having superior knowledge? Sometimes I do wonder. I have said it many times though, Americans shouldn't even be allowed to participate in the stock market without a basic education.
Have a nice day.
"This may be the year that Han gets religion"
This may be the year that Han gets fired by the Board, proscecuted by the SEC, banned by the shareholders, and dumped in a deep black hole by the Chinese government :-)
Yes, gleb, roughly 30 times. You usually don't see this even in China land unless the company is very problematic or a scam. HERB doesn't even have a VIE. And with the assets appraised and the swap approved by the SEC, I think we have a winner.
Of course the kicker is the new cash flow situation. And the cash they are sitting on already!
There will be more developments soon.
I am not always right. Certainly not when it involves details. But you were teaching this company how to book assets, and you told me to get a clue IIRC, it doesn't matter. Even though what you posted on this board was off most of the time. I don't have a problem with people being arrogant, but you have to be right at least some of the time. It wasn't helping anyone on here. We can put it to rest now.
I simply can't buy more of the stock because I'm really maxed out here. 42% invested and 72,500 shares. The rest is invested in illiquid stocks which are almost as depressed as HERB.
The same applies for my friends basically. So what I'm going to do is, I'm going to call them today and ask them to call their friends. Let's see if we can get the share price moving. Because this is getting beyond ridiculous now. There is roughly 30k available at 0.49. No guarantees of course. It's probably not going to work but it has worked before. So who knows.
That's me. What are you going to do about it?
I'm confident that HERB can rally any moment now. It seems we need one or two buyers to get this thing going and then the rest will follow.