Tom Allinder has effectively destroyed shareholder
Post# of 11899
Posted On: 08/26/2013 8:02:33 PM
Tom Allinder has effectively destroyed shareholder value during the last 12 months.
The O/S has been raised from just over half a billion to over 2 billion in about a year.
Granted, the balance sheet looks much better now than it did previously, however, the share price has declined by over 75% since that time as well. So for any long term stakeholders in RFMK, capital has been destroyed and we have seen "consultants" getting huge payments upwards of half a million dollars, off the backs of shareholders via massive dilution.
The sales and revenue of a meager $6,000 up to June 30 (in the last Q2 report) is a pathetic reminder of how Ironridge's massive funding is getting spent and used by management. The company is allegedly receiving $50,000 per month for operations. This money should be more than enough to ramp up a marketing and sales effort in order to sell product but all shareholders have seen from management is promise after promise and no results ($6,000 in product sales).
In my opinion, shareholders need to see some major progress from management and very soon, in order to justify investment in this company. The alleged audit has been going on now for over a year, and promises of a 10K and uplisting abound, not to mention all the talk of big news coming regarding board of directors announcements and the new product, but in the meantime, months and months go by and we just see PR's and shareholder notices promising the same things with small variations in verbiage.
One interesting part of the stock ownership though is that the public float is only about 20% of the total outstanding shares in the company. Basically, 61 or so shareholders of record own large positions (Ironridge, insiders, long term shareholders, etc), and the rest, the free float which is supposedly changing hands each day is a small subset of the total shares. I find it rather amusing how the peanut gallery on other boards each and every day attempt to make claims that their arguments are proven by the stock performance. It is rather obvious that with only 1% or so of the free float trading daily (on average) the volume is incredibly low, not to mention that the free float already is only about 20% of all the shares in the company. On about that kind of daily volume, the PPS has plummeted down from the 200 day moving average which is still above par value. I see some posts claiming that the PPS will never again get out of triple zeros. I find it all very amusing. Even with a very basic and conservative argument we can see that the proper valuation for RFMK is much much higher than the current PPS. Consider ...
forgetting for a moment the $1.5M in funds (receivable on the balance sheet) over the next year and a half from Ironridge, if we only consider the current liabilities subtracted from the net asset value, then the RFMK balance sheet basically has about $360,000 on it. There are basically 2B shares in the O/S. A simple calculation, assuming a rather standard P/E of 30, shows that fair value is about $0.0054.
However the stock is trading right now at a tenth of that value, so in my opinion there may be an opportunity in RFMK for long term investors. I cannot judge the short term because as we know the strange and sketchy "trading" we witness in RFMK every day does not properly represent any real price discovery (supply of shares versus demand) in the normal sense, IMO.
The CEO must deliver on promises made though or I think investors will continue to remain on the sidelines and not invest in RFMK. If it is in fact the case that great things are truly coming for RFMK, then great, that would be a welcome surprise for long term shareholders here but until then I have turned rather negative on the way this CEO has managed this company; "managed" meaning, steering this company into the rocks or over the cliff.
Come on Mr Allinder, DO something....
Do or do not, there is no try.
GLTA
$RFMK
The O/S has been raised from just over half a billion to over 2 billion in about a year.
Granted, the balance sheet looks much better now than it did previously, however, the share price has declined by over 75% since that time as well. So for any long term stakeholders in RFMK, capital has been destroyed and we have seen "consultants" getting huge payments upwards of half a million dollars, off the backs of shareholders via massive dilution.
The sales and revenue of a meager $6,000 up to June 30 (in the last Q2 report) is a pathetic reminder of how Ironridge's massive funding is getting spent and used by management. The company is allegedly receiving $50,000 per month for operations. This money should be more than enough to ramp up a marketing and sales effort in order to sell product but all shareholders have seen from management is promise after promise and no results ($6,000 in product sales).
In my opinion, shareholders need to see some major progress from management and very soon, in order to justify investment in this company. The alleged audit has been going on now for over a year, and promises of a 10K and uplisting abound, not to mention all the talk of big news coming regarding board of directors announcements and the new product, but in the meantime, months and months go by and we just see PR's and shareholder notices promising the same things with small variations in verbiage.
One interesting part of the stock ownership though is that the public float is only about 20% of the total outstanding shares in the company. Basically, 61 or so shareholders of record own large positions (Ironridge, insiders, long term shareholders, etc), and the rest, the free float which is supposedly changing hands each day is a small subset of the total shares. I find it rather amusing how the peanut gallery on other boards each and every day attempt to make claims that their arguments are proven by the stock performance. It is rather obvious that with only 1% or so of the free float trading daily (on average) the volume is incredibly low, not to mention that the free float already is only about 20% of all the shares in the company. On about that kind of daily volume, the PPS has plummeted down from the 200 day moving average which is still above par value. I see some posts claiming that the PPS will never again get out of triple zeros. I find it all very amusing. Even with a very basic and conservative argument we can see that the proper valuation for RFMK is much much higher than the current PPS. Consider ...
forgetting for a moment the $1.5M in funds (receivable on the balance sheet) over the next year and a half from Ironridge, if we only consider the current liabilities subtracted from the net asset value, then the RFMK balance sheet basically has about $360,000 on it. There are basically 2B shares in the O/S. A simple calculation, assuming a rather standard P/E of 30, shows that fair value is about $0.0054.
However the stock is trading right now at a tenth of that value, so in my opinion there may be an opportunity in RFMK for long term investors. I cannot judge the short term because as we know the strange and sketchy "trading" we witness in RFMK every day does not properly represent any real price discovery (supply of shares versus demand) in the normal sense, IMO.
The CEO must deliver on promises made though or I think investors will continue to remain on the sidelines and not invest in RFMK. If it is in fact the case that great things are truly coming for RFMK, then great, that would be a welcome surprise for long term shareholders here but until then I have turned rather negative on the way this CEO has managed this company; "managed" meaning, steering this company into the rocks or over the cliff.
Come on Mr Allinder, DO something....
Do or do not, there is no try.
GLTA
$RFMK
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