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  • Borneo To Report 1st Profitable Quarter, 200% Revenue Growth For 2014, NYSE Listing Application Possible Soon [View article]
    Charles, the NYSE MKT is the old Amex. It is easier to qualify for that exchange than any of the NASDAQ listings. We like BRNE as well and have been following the stock for a while now.
    Aug 19 10:25 AM | Likes Like |Link to Comment
  • NQ Mobile - Special Attestation Report [View article]
    It is not ridiculous to ask a firm that is being paid a lot of money to complete a forensic-style report to explain on some level, even just basic details, about what tasks they were instructed to complete by the special committee. What risk would Deloitte have in detailing the tasks they were instructed to complete? The answer is ZERO. The risk is on NQ's special committee. NQ should accept this risk but they likely will not as it could show that the forensic testing is inadequate and flawed. It is true that these details are not normally disclosed. This is not right. It is not fair to shareholders when the shareholders money is being spent to investigate fraud claims but the forensic investigator and the special committee refuse to release even just basic details to shareholders. On a most basic level, a list of tasks and tests the forensic team attempted to complete should be public. Also, no forensic investigative firm takes on forensic work without building in a cushion for potential litigation costs. Are you suggesting that a forensic investigator should have no risk exposure? That Yo Bob...is the most ridiculous comment we have ever seen.
    Apr 17 03:01 PM | Likes Like |Link to Comment
  • Green Automotive Company Update: Case Closed, It's A $0.04 Stock At Best [View article]
    Michael, your comment is solely based on fundamental analysis that begins with possibly flawed and definitely inadequate public disclosure of financial results. You should always consider the management who run a public company and the likelihood they succeed with their business plan. Lets take a closer look:
    1. This management team is not transparent and routinely attempts to mislead investors. We reference the press release about the "new Mia" whihc was actually released several years ago and was not and is not manufactured by GACR.
    2. The management team refuses to identify and discuss profitability in each of its business segments leading us to believe some of the business segments are entirely unprofitable and exist only to boost the sex appeal of the stock. The word "profit" shows up just 10 times in their 2013 10-K that likely has 10,000+ words in it. That suggests an obvious attempt to avoid the discussion on profitability. There is no business segment disclosure in this 10-K - which is perhaps a violation of SEC Regulation S-X which guides the disclosure requirements of SEC filings.
    3. Management issues pump press releases about acquisitions and other topics with no specific details of the accretive or nonaccretive impact of those acquisitions.
    4. Management pays for third parties to pump their stock. Real companies do not do this.
    5. Management can not get an S-1 approved by the SEC (see the S-1/A filed on 12/9/2013 that has neither been declared effective or withdrawn)...what are the SEC's issues? Is there a pending restatement (it would not be the first) or an SEC inquiry the company is not telling investors about?
    6. Sadly, the CFO recently passed away. The company has not hired a new CFO yet the company appears to have multiple complex cross-border acquisitions to account for and possibly release acquisition audits for. These do not appear to be simple acquisitions. There is no chance that Mr. Hobday, as CFO, can complete the accounting related to these acquisitions. So who will do this work? Is the person competent?
    7. Are the acquisitions that have been announced over the past 4 months even still pending? We have not heard anything about these acquisitions aside from just the initial announcements.
    8. Mr. Hobday has a lot on his plate. We see no evidence in his background that suggests he has any chance of handling the M&A, public company issues in general, and business operations in multiple countries in a fast-moving dynamic industry.

    As you can see from our comments here and in our published articles...we do not trust Mr. Hobday and do not believe investors should consider this stock as a real investment. We also are fearful for investors in GACR that the reasoning behind GACR's inability to receive the SEC's approval of the S-1/A filed for Kodiak is more than just an "administrative issue."

    We have a simple comment to leave you with. There are clearly better investments to choose from then GACR. If that is not clear than you need to actually read the two articles we have published.
    Apr 17 02:46 PM | Likes Like |Link to Comment
  • Green Automotive Company Update: Case Closed, It's A $0.04 Stock At Best [View article]
    We have no specific knowledge of those two individuals. If you have a message like this in the future you should send it directly to us. This article is meant to discuss topics on GACR only.
    Apr 8 08:33 PM | Likes Like |Link to Comment
  • Green Automotive Company Update: Case Closed, It's A $0.04 Stock At Best [View article]
    Additional comments on $GACR by SkyTides available on Twitter account, see http://bit.ly/1efopLg
    Feb 1 12:31 AM | Likes Like |Link to Comment
  • NQ Mobile - Special Attestation Report [View article]
    This article was recently referenced by the Financial Times, and includes feedback on the article by Carson Block. See http://on.ft.com/1dqQKI1#
    Jan 21 02:12 AM | Likes Like |Link to Comment
  • Green Automotive Company Update: Case Closed, It's A $0.04 Stock At Best [View article]
    G_E, the short story from what we can see so far is Viridian is a very small company. It is highly unlikely the company's revenues were in excess of GACR's revenues in 2012 which were $321K. If we were to guess we think revenues were likely below 20% of GACR's 2012 revenues, which means less than $64K. Its hardly worth getting too excited about. If Viridian was a super fantastic acquisition then there would be more details released about the company's financials by GACR management - who are never shy about releasing good news. But that hasn't happened so we presume there isn't much to say about Viridian's financials. A team member of ours may be speaking with a contact associated with Viridian in the next few days and will release that info as soon as we have it - assuming it is verifiable and news worthy. Regarding photos of buses being assembled...well we never said Newport was a fake company or anything like that. Of all three business segments (or four if you include Viridian), we think Newport is the most legitimate by far. We just don't see their buses as being all that innovative which means they probably won't sell at ridiculous growth rates that Stone suggests. This is a key reason why GACR is not "investment worthy" at this time. If they really do get the electric bus launched next month then perhaps we would change our minds. But a letdown is possible as the electric bus was supposed to be launched last November. They could miss again on their proposed launch date. But its still not impressive to us to just build one electric bus. GACR built an E-Range and it got them nowhere. Its all about the specs. Can Newport build a bus that is clearly better than other alternatives? We're not so sure they can. In the end we still believe this company at a $100M market cap was overvalued...and it still is today, at $40M.
    Jan 16 11:48 AM | Likes Like |Link to Comment
  • Green Automotive Company Update: Case Closed, It's A $0.04 Stock At Best [View article]
    JSK - thank you for your comments. We are glad you found our work helpful. Regarding the use of an anonymous pen name, we’ll further add that if the founder’s name was known it would potentially disrupt other business interests he has. Those interests, to be very honest, are more important to him than what he and the team do here on SA. Writing for SA and speaking with other investors is enjoyable. We do not do it because of the compensation – which is minimal.

    First, any company that refuses to discuss profits in each of its business segments within its SEC filings is super suspect to us. We are very surprised the SEC has not picked up on the lack of disclosure about profits in GACR’s filings. We would not be surprised if additional amendments and possibly restatements are filed with the SEC to correct the glaring absence of this info.

    Re: Alan Stone, first, it is always a bad sign when a company is paying for research. This is really sloppy, all over the place research that is full of words but no substance. It is painful to read. Public companies that can stand on their own do not pay for research. If GACR is paying for research it essentially means they have run out of good things to say/pump about. Stone’s disclosure is in the fine print on page 1 “The featured company paid a fee to Alan Stone & Company LLC (ASC) for preparation and distribution of this profile, as well as other potential fees for consulting and investor relations services. ASC and its associates may own restricted common stock of the featured company earned for such services, shares of which may be sold at any time without notice.” So essentially, this is tainted research because the people writing it have been paid to do so and hold shares of GACR so they are not motivated to be objective and possibly never would write about GACR if GACR hadn’t already paid for the research. Since they are long they also stand to directly benefit potentially from saying good things about GACR. Stone refers to the $20M Don Brown contract that we have already shown GACR breached. This is not a contract at all really. It appears as though it is just an open-ended agreement designed by GACR for use in pumping GACR’s stock. Don Brown is not under any legal commitment to buy 432 vehicles from GACR. Based on what we have inferred from management’s responses to our initial article and from the SEC filings, Liberty is not a successful business. GoinGreen is less than that. GACR just loves to pump without any details that matter. A contract with Navistar is great but no terms of any importance are disclosed. A one-stop-shop…another way to say this is a car repair shop and car sales office. That does not sound investment-worthy to us at all. Ironridge is not an investor. They acquire shares and trade them for profit/fees. Their involvement in GACR is in no way a good thing. The E-Range Rover is a useless endeavor. GACR built it but can’t sell it. But they continue to pump the stock about it. We think the accounting for GACR’s Powabyke investment is messed up since their appears to be no “equity in the earnings of minority interest” line item in the GACR P&L in recent quarters and there is no disclosure about Powabyke revenues, profits etc. anywhere else in the financials. This should be equity method accounting and it is not being applied correctly by the CFO.

    The 2014 projections by WallStreet Research are insane. Perhaps management should be asked what their thoughts are on the bus sale figures (which seem impossibly high to us). Can someone ask Carter Read about these projections? If GoinGreen can get sales commissions of $1M that infers sales of the Mia and maybe other products would be over 1,000 units. We think that is impossible as well.

    Smallcapnetwork is a slimy pump by an un-informed car salesman it seems. This was even harder to read. The E-Range Rover is called Liberty’s flagship model…yet as far as we know no units have ever been sold. The Modec truck…well Modec was a UK EV company that went bankrupt according to our research – hardly something to reference in a pump article but like we said, this guy is un-informed. The mia did not make GoinGreen’s sales go crazy…we are just guessing on this one for now…based on what management said in response to our initial article and our research. Lastly, we like the quote “That's the situation with GACR right now; it's been beaten down pretty severely over the past few days, for no particular reason.” The stock is down because of the downward pressure on the stock from Kodiak, Ironridge, and older shareholders that were locked up for several years and just recently could get out of the stock is taking its toll. Also, there were some articles written by SkyTides that outlined quite a few disturbing facts about GACR. Maybe someone should clue this guy in but he probably doesn't care as he was already paid by GACR - it appears.
    Jan 15 10:55 PM | Likes Like |Link to Comment
  • Green Automotive Company Update: Case Closed, It's A $0.04 Stock At Best [View article]
    Well, our first thought is that GACR has not filed an 8-K to announce the acquisition. It would be required if VMC was a significant acquisition. Maybe it isn't? We don't know the exact date the acquisition of the ownership occurred...how GACR paid for it...if they paid for it...what it means to GACR etc. Management just used the news to pump the stock. At least they are consistent. We may look into VMC but we have a few other topics we're more interested in at the moment. Lets see if they file an 8-K tomorrow. Tomorrow might be the end of the mandated 4 day filing period when an 8-K would be required. But we really have no idea at this point.
    Jan 15 12:53 AM | 1 Like Like |Link to Comment
  • 8 Facts About Plug Power [View article]
    We don't see any facts here actually..."Fact: 4th Q sales totaled $32 million. 1st Q will be better. So they are projecting $100 million (low end) to $200 million in sales this year." All management boasts...not facts...
    Jan 8 08:11 PM | Likes Like |Link to Comment
  • 8 Facts About Plug Power [View article]
    This needs to be clarified.... "1. They finished a quarter (Q4, 2013) generating $32 million in revenue
    2. They estimate the next quarter Q1, 2014 to do similar revenue"....actually the statement by management was "orders" not "revenues." So the revenues are likely going to be less than $32 million for Q4. Of course orders and backlog are important for any manufacturer/integrator like PLUG. We would never suggest otherwise. But we suggest investors consider that there have been plenty of executives companies who have previously said we are going to record a $ gabillion in revenues next year...and never did. See Patrick Allin of Patron fame recently discussed by Citron Research. Plug's CEO is boasting about "orders" and not shipped/sold product or "revenues." Its kind of odd in our opinion. However, we've spent almost zero time on this name and have no opinion on whether the boasts he has made about revenues will come true in the form of SEC filings, a 10-K, 10-Q etc.
    Jan 8 08:03 PM | Likes Like |Link to Comment
  • NQ Mobile - Special Attestation Report [View article]
    Not sure we agree NQ is a very very high profile investment and we don't think their reputation would be impacted one way or the other. Its a rounding error still. Funds make profits and lose $...but otherwise we generally agree with these comments. Its an opinionated issue in the end. We do not like the idea of following the lead of other funds in the China space. The funds have been wrong before. Also, we meant to mention this before but any of these funds could also have a short position at any time, or be playing options.
    Jan 7 04:05 PM | Likes Like |Link to Comment
  • NQ Mobile - Special Attestation Report [View article]
    Siv, we didn't say anyone at MS would or should be ok with throwing $ away.
    Jan 7 03:57 PM | Likes Like |Link to Comment
  • NQ Mobile - Special Attestation Report [View article]
    Generally speaking funds in Asia we've worked have are not short on capital. How do you seriously compare the London Whale $6.2 billion scandal to a $116 million investment? A $116 million investment by Morgan Stanley is not irrelevant. We think its a reasonable risk return for a firm like them actually...at 0.03% of the firm's assets. We aren't saying its irrelevant but its hardly a good basis for a retail investor to invest a large amount of capital.
    Jan 7 03:35 PM | Likes Like |Link to Comment
  • NQ Mobile - Special Attestation Report [View article]
    Simon, its likely pretty simple why MW doesn't disclose an address. If they do then they can be served a lawsuit by any lawyer who wants to waste MW's time and $ and MW will have to respond upon being served. Being served is what effectively "starts" a lawsuit. If you aren't served then you've got no worries. Carson is a lawyer we believe. Its just common sense to avoid lawsuits that are frivolous or that the attorneys aren't willing to spend an extra dollar tracking MW down. Regarding your Morgan Stanley argument...which is driving us insane with its lack of any value to an investor...aside from the fact that large institutions do not have the time or need to do due diligence on small investments (which this is) and the fact that large institutions have been burnt by fraud many other times and will continue to be burnt until the end of time, Morgan Stanley owned 7.9 million shares at $14.70 on 12/31/13, or $116 million. Morgan Stanley had $360 billion in assets under management as of 9/30/13, so Morgan Stanley has put 0.03% of their assets under management at risk by investing NQ. Even if all of these shares are in one mutual fund run by Morgan Stanley it is still likely an insignificant investment. Considering NQ, if not a fraud, is likely massively undervalued, we believe there is merit at putting some capital at risk to try to catch the possible upside but if you really want to follow Morgan Stanley, then don't put more than 0.03% of your investable assets at risk. See http://1.usa.gov/19QAW6N, http://bloom.bg/19QAW6O and http://bit.ly/19QATI9
    Jan 7 03:12 PM | Likes Like |Link to Comment
COMMENTS STATS
60 Comments
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