With any offering, someone has to buy the shares and they are. In addition many individual investors are buying at this level and with good reason.
You have to understand how an offering works. The offered shares are not the shares you buy, they are the shares sold by the underwriters Roth Cap and they are only sold to select customers @ $1.25 with an agreement that they cannot sell the shares for 90 days. The market makers job is to use some shares to make the current PPS to the public look good so the select buyers are getting a good discount on the shares they are buying if they choose to buy. It's all in the SEC Filings.
I still am up in the air as to understand the plan mgmt. has to how they will use the money. I don't think it will be for an acquisition. I think it will be used to pay debt and run the operations until positive cash flows in and they may be near that point.
"Importantly, the company confirmed that the FDA did not bring up any safety or efficacy issues regarding AVP-825. This was a relief for Avanir since the company will not have to conduct additional studies on the candidate in order to get it approved.
Avanir said that it is working with the FDA towards implementing the necessary changes. The company intends to conduct a fresh human factors study and expects to respond to the CRL in the first half of 2015."
"no further tests were asked by the FDA" ..
There is good news , and old news from Nov 7, I think this will be a non-event for the PPS after a day or two. There is nothing that can't be corrected.
SEC file after the close show the shelf offering filed on Oct 22 has started and the MM will support the PPS until all the stock is sold in the offering. That's why the PPS was up 0.10 today. After the close on the offering the PPS will seek "Fair Value" which almost always down for the short term anyway. This is not about an "acquisition" even if they spin it that way. This is about raising money to buy time running the current operation until earnings and profits can be generated which they seem to be close to realizing. That's my take anyway, some good, some bad.
I've seen a reverse split to get the pps over a buck so it wasn't delisted. It seems to me this company has its back is against the wall and they are in trouble. They have a negative cash flow for operations and can't continue without putting the debt on the backs of the current shareholders which is WHAT THEIR DOING.. I would be real careful, the lawsuits are right around the corner and a lot of top people have been released, quit or were fired just read the SEC files and annual report for 2013. Bottom line they left for some reason that never was explained.
The stock offering hurts bad. Why do they need to raise capital?
If you have NO PROFITS, (not earnings), every quarter you can't run a company on REVENUES. They haven't even started to tap into the "Shelve Offerings " that was filed with the SEC. on Oct 22 for 50M worth of stock. Wait till that shoe drops, a share will be worth 50 pennies if that !
Which leads me to a question, MGMT said they got a "low interest loan from the bank". No Bank would give them ANY interest loan unless they were a good risk or first in line in event of BK. Check those bank covenants.
One thing is for sure, something or some plan is being played out that leaves us in the dark. As to the selling price of $1.24 that is the SALE or Discount price the company and the market makers set to move the stocks in a short period of time.
60 Stocks More Than Doubled in 2014 So Far
With me that's the first thing I look for. I don't hold a stock unless it is a 52 wk double or better. What I fell in love with was that site "Finviz", I was up all night working that site and all it could do. I love looking at several graphs all in one screen. It's going to take awhile to learn all that site can do to help you do your DD. I got that sucker bookmark and will become a member .
There are many many examples of small caps that have incurred years of losses
I'll give you 2 pluses. First the banks loan them more money but the key there is the low interest rate they got if they are telling the truth. The second positive is the losses are smaller and that is a good sign. If the PPS drops much lower before rumors of a good next quarter surface I might throw some "mad money" to buy some shares but I would never bet the farm on it. Good Luck !
Hey midhashid I just poster today, the 24th, about the good old days when LF kept selling out of all the product they could get their hands on. I moved on but I check back once in awhile. If the stock couldn't soar when they soldout of everything because the shorts controlled everything, it's not going to do well now that they don't own the market. Checkout SPCB you might like it.
Your post showing LF ranking @ Amazon is really SAD to anyone that held this stock 2-3 years ago. At one time in the "top selling Toys" LF had 3 of the top ten listed and just short of 50% of the top 100 "Electronics for Kids" list, yes they made that many products. The ONLY REASON some products fell out of the "Top Toys For Kids" was because LF would always SELLOUT and they couldn't keep up with the DEMAND for their products which lowered their sales numbers with nothing to sell . Those were the days ! LF own the market !
Read it from the SEC 10Q Quarterly Report !
Summary of Results
For the three months ended September 30, 2014, the Company reported revenues of approximately $26.9 million and net loss of approximately $1.4 million . AND That's a FACT ! Don't use those smoke and mirrors numbers mgmt. uses that don't include things like expenses and taxes and fool a lot of people, that's the games mgmt. plays.
Remember the "shelf offering" filed with the SEC Oct 22 to sell up to 50M worth of stock at any time mgmt. sees the need to raise capital on the backs of the current stockholders by taking value away from their stock. There are 83M shares of common stock outstanding worth 122M @ todays close. Add another 50 M dollars from the offering and the current stock will be worth a little over 1 dollar as of today which means the stock will be close to being delisted if it drops below a buck for 30 days.
The LED market IS NOT A NEW MARKET. LEDS are everywhere in cars, homes , stores, street lights, ect. The problem is everybody is in the market to try and make a killing. Only the BIG BOYS have the deep pockets to run the small cap companies out or buy them up and make a profit. RVLT is as good as gone by next year.
heelflip56 • Jul 24, 2013 10:29 PM Flag
LaPenta , BURY these shorts for good ...put them in the grave....announce the big one
you can and will do it.
That was the "SHORT SQUEESE" when the stock closed July 23, 2013 at $5.20 ! Boy did those SHORTS get BURN all the way to $1.46 ! What a bunch of losers those "Shorts"! Why stop now ? This guy LaPenta that everybody says is so great is just playing you guys. Wake Up !
Don't know where you are getting that info but 2 different sources I use show only 2 after hour trades:
Sorry, you are right. Cleared by temp files and my numbers are same as yours now.
i'm a fan of institutional investors, but i think, generally, SPCB is a little small for the big institutions to get a piece they would like. Less than 15m shares o/s and volume can be anemic on days
You might want to check out the NASDAQ s.i.t.e. do a search on SPCB , click Institutional Holdings that will show you the number of active positions that have increased or decreased by the number of holders and the amount of shares. Also the number of NEW and SOLD out positions. The information is a little old, dated 9/30/14, but you can get an idea of what the trend has been and it has been VERY GOOD.
Longs can't sell - Shorts can't cover - Now we wait for a reason to start a SHORT SQUEESE
Why would the "shorts" want to cover"? Short Squeese ! You got to be kidding ! I've heard that since the stock was 5 bucks and I sold at 3 bucks once I figured out this company NEVER MAKES A PROFIT ONLY A NET LOSS and buys REVENUE from takeovers that also are not making money but add revenue that RVLT can spin in their ER but the BIG BOYS can't be fooled like the small investors.