This is what I just sent Mark -
Mark, we are all concerned that we have no more buyers, despite an excellent product and company. We don't mind helping finance the start-up costs but investor confidence is extremely low. No one wants to invest more in a company when the share price keeps going down. We need to do something quickly to bring more new investors to the cause. I asked one of my associates what he thought could be done to change things and these were his suggestions:
(My question)
RRUFFF, if you were him, and he has "painted himself into a corner" what would you do? How could he get us unstuck?
(rrufff's answer)
...convince him that he can make more money aligning with and getting the trust of a strong shareholder base.
You ask -"how?"
I say, "show me." Cut the float. cut the o/s. Show us a business plan that says - only minor dilution at this point.
What does that mean?
He has to
1)cancel some of the freebie and cheaper shares issued to insiders, including to him and family
2)buy up shares from the float, a bargain now, especially if he and associates have been selling at higher prices
3)show how they get to cash flow positive - what will it cost and how it will be paid.
Do that and the stock is a multi-bagger.
I wanted to forward this post from me as well:
I posted this on IHUB and want to see what you guys think:
IMVHO, what we have here is a revenue sucking machine. Can you imagine what the monthly burn rate is? We have to pay for these things:
Salaries: Astrom, Erikson, Shah, Juan(New York), others?
Rent/Utilities: Office in Orlando, FL
Advertising/PR's
DVD's/Stationary/ETC
FCC fees
Lawyers
Loan payments(hopefully not since so much stock has been sold)
Income:
Local Advertising rates(Not much)
I have been thinking about what you said about the dilution being "violent". Apparently, they have no choice. They have to pay all the above things just to stay in the game another month. Also, I think if Mark's last name was "Moody" the buying pressure would have been much higher in the beginning, and therefore the company could sell less stock to get adequate funding. If you were Mark what would you do at this point? Did you know that HISC sold 100 million shares at an average price of .07(guess)? That's 7 million dollars. Know what 100 million shares sold get us? 30k...probably about the monthly burn rate. Do you see the problem? VWKM has to dilute to stay alive, but dilution keeps away new investors. I don't like it either, but I'm just trying to give my honest opinion of what is going on.
Wonder what HISC is going to do if they spend all the 7 mill. before they reach profitability...
GodBless-NoDoubt
cris
I closing, if somehow we can get the share price above .10(like HISC did) then I don't think anyone would mind if the company sold shares. We would happily pick up the tab as long as we knew management was still protecting our investment. We will never get there though unless we do something. Thank you for letting me tell you how things are feeling from the investors point of view. At this point I will stop making suggestions to you, and see how it all unfolds.
God Bless - No Doubt
cris
Mark Erik Astrom <markerikastrom@newscreen.tv> wrote:
Good Morning Cris,
Thank you for your thoughts!
Cheers,
Mark Astrom
Vision Works Media Group
On Nov 2, 2005, at 12:30 PM, wrote:
Mark -
I just wanted to send you and e-mail thanking you for taking time to talk to me today. I am very excited about New Screen Tv and feel like we are going to have a very bright future. The product is excellent and you have assembled a teriffic staff. I have no doubt that New Screen Tv is going to going to be a smashing success.
After our conversation, I was doing a bit of reflecting, and realized that one part of our conversation was very significant. You said that you put the broadcast radius on the website because you realized that we are not in Florida and cannot see and know what you know. I realized the same is true for how we feel about the stock. You cannot possibly know exactly what we are hoping for unless we tell you. I think I speak for many when I say that we hope you will recognize what we have done to help New Screen Tv go from a dream to a reality. We have purchased shares of VWKM stock and held them in order to help finance the process. It has been a long, long, road, but we feel the company will be reaching profitability soon. When the turning point is reached, we would like to see the float reduced so that the price per share will go up and up...this will be part of a our reward for our dedication to the company. We will also be rewarded knowing that New Screen Tv is a reflection of us. This is the WIN/WIN symbiotic relationship with management we are all hoping will come to fruition. True vindication can only be achieved if both New Screen Tv and VWKM become successful. New Screen Tv will be judged by ratings and VWKM will be judged by price per share. Both management and investors are going to viewed in light of those things. If either fail then both management and investors will both be lumped together as failures.
Thanks for letting me broadcast how we feel. We do believe the best is yet to come!
GodBless-ND
cris
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What do you guys think? Feels great to lay it all out. At least this way I feel like I got my money's worth. This experince has been priceless, no matter how it all turns out(back to thoughts of dating the girl with the bad reputation). I'll let you know if I get a response.
GodBless-ND
cris
P.S. jmhollen now i'm starting to understand your approach. |
