Due to travel the latter part of last week, I missed all the chat on this thread. It is good to see the quality discussion coming back regarding NWCM. Specifically, thank you John Dee for posting the Titan letter, and thank you Titan for helping my efforts to bring attention to the outrageous behaviour of Joseph Charles & Co.
Paperheart, if you had said at the beginning the Jessup and Lamont deal was merely an "offering memorandum" we would all have understood. Instead, passing it off as a done deal is the kind of misrepresentation that earns you no credibility on this thread.
It is no secret that Newcom is currently negotiating short-term bridge financing with a variety of lenders, in order to acquire some cash to support their torrid growth in sales right now. Asian Vendors are all demanding up-front payments for their production. NWCM will use this bridge loan to leverage into the Invesment banking deal with Furman - or whoever -in the next month or so. I doubt they will use the Jessup offering, as it involves some convertible debt, and Newcom would ( and should!) rather pay 15 or 20% interest for a short term loan than bring in the arbitrageurs once again. Hopefully Harry won't queer this.
My apologies to Rick Rapaport for inadvertantly calling him "Michael" in my August 4 post. It doesn't change the fact that his former affiliation with Joseph Charles does nothing for shareholder's perception of him as a benevolent force. One of his partners at EBI, John Oban, has spoken highly of him to certain brokers and managers, and insists he is a good balancing factor on the board. We should use the annual meeting as an opportunity to question him, and other board members, about this JCC (and other) issues.
One thing that is beginning to emerge from the Company right now - they are doing the right things to forge ahead. The biggest flaw in Newcom's structure to date (aside from having Harry Kurtzman as a majority shareholder) has been their Controls. They are currently installing the Platinum controls program, the state-of-the-art software for inventory and receivable management. This satisfies a major requirement that the investment bankers (including Furman) have insisted upon as a pre-condition to becoming involved. Further, Simple already has Platinum, so there is a good fit there.
Now for the really good news. Early next year Newcom will do a Secondary offering to take our Harry Kurtzman's shares.
This little Company is in the process of getting its act together. Period. |
