posted
This is why growth by acquisition does not create shareholder value (too much dilution).
I never said you could not make $$ here. All I am saying is I do not see how it could be a long term investment. If the price spikes in the next 20 trading days someone will convert (at .03)into common stock and then selling pushing the price back down.
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posted
but none of us have seen the whole deck played...and by the way ever heard of CMGI or on a smaller scale MOBL they did the same thing...alot of the holders ie sc. and img they aren't converting at .03 cents. and how ling do you think it will be .03 cents for. I think once some contracts for hnet are announced the the other rumored deals are out we will rock way past .03 cents..............
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posted
Its so transparent though...he says he was looking at this stock a month ago but decided not to buy. yet he shows up a day after a rumor about cigna and a pr on IMG that announces that a pretty large company just hired them....
He is doing this for our benefit as if none of us ever read the 10q. then he skews it to show as much dillution as possible ignoring alot of things. ie the as of 150mil...his whole basis was garbage...but once again he is just doing us a favor. hey i do that all the time research stocks i don't own and try to help out shareholders please.....
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posted
We all know that this dilution is healthy for MOTG. OSU Please talk something new. If you do not like the stock, do not buy. Buy something else. But I tell ya, something big is in Place and CIGNA thing is Darn Big. Single pennies will be history.
-------------------- Almost There....
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posted
I wouldn't call OSU's work 'garbage'. OSU just have a different angle of view at MOTG than us. Here's the outcome of his findings: If he's right, those that follows him will save tons of money. If he's wrong, those that DIDN'T follow, makes tons of money. As for the quality of his analysis and research, I give him FULL credit for the work and sharing it with us. IMO, I don't agree with OSU but, at least he earn my respect as a researcher.
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Press Release Source: DeMarco Energy Systems of America, Inc.
DeMarco Energy Systems Subsidiary, American Geothermal, to Attend the Austin Green Living and Home Products Expo Monday January 9, 5:27 pm ET
OXFORD, Miss., Jan. 9, 2006 (PRIMEZONE) -- DeMarco Energy Systems of America (Other OTC:DMES.PK - News) announced today its planned exhibit at the upcoming Austin Green Living and Home Products Expo at the Austin Convention Center in Texas on January 20 through the 22nd. The company will promote its environmentally friendly technology and related solutions to further the goals of the environmental movement based on shared common grounds of energy conservation and alternative energy technology. ADVERTISEMENT
The DeMarco geothermal heating and cooling systems use proven, reliable water source heat pumps to extract heat from municipal and reuse water systems in the winter, and to sink heat to the same water in the summer. It eliminates boilers, cooling towers and mechanical roof equipment while delivering significant operating and maintenance cost savings.
Anthony Welch, Chairman of DeMarco Energy added: ``As promised to stockholders, we continue our rapid growth track by expanding our market presence.''
The company's aggressive growth model addresses the exploding world-wide demand for alternate energy and energy-saving technologies. The company's rapid growth plan includes: expand operations, building revenues, acquiring energy-related companies, and introduce new technologies and energy-related products into the marketplace. DeMarco is also focusing efforts to license its patented energy-saving geothermal technologies throughout the world.
Energy Vision International and DeMarco Energy are on a rapid growth and expansion track based upon revenue growth through key acquisitions, energy technology distribution, international licensing of its patented geothermal technology, and seeking acquisitions congruent with energy conservation and supporting industries. This strategy lays the groundwork for consistent introduction of energy-related technologies and continuing revenue growth for Energy Vision International a.k.a. DeMarco Energy and its shareholders.
About the Company
Energy Vision International (DeMarco Energy) expanded its business plan in 2005 to include energy-related acquisitions, marketing its patented geothermal water-air heating/cooling systems, sales of energy conservation solutions. The company has geothermal installations in Oregon, Pennsylvania, Washington, Montana, South Dakota, Mississippi, California and Texas. EVI's primary focus is to provide energy efficient technologies to commercial and institutional markets through the application of the DeMarco 'Systems' patents and other acquired technologies. For more information, visit the company's web site at: http://www.demarcoenergy.com.
Safe-Harbor Statement
This press release contains statements (such as projections regarding future performance) that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to those detailed from time to time in the Company's filings with the Securities and Exchange Commission.
Contact: DeMarco Energy Systems of America Investor Relations feedback*demarcoenergy.com 1.662.236.5928
-------------------------------------------------------------------------------- Source: DeMarco Energy Systems of America, Inc.
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posted
I wouldn't worry to much about the OS shares. Look at GZFX with over 1.2 Billion shares. Revenue under 1 million last year and traded over .02 last month. While MOTG at around 3 cents is projecting revenues of $75 Million for the upcoming fiscal year. I like our prospects. Come on AW do that thing you do.
PS: Thanks for your input OSU.
HOW BOUT THEM LONGHORNS! InVINCEable.
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quote:Originally posted by osubucks30: This is why growth by acquisition does not create shareholder value (too much dilution).
I never said you could not make $$ here. All I am saying is I do not see how it could be a long term investment.
You're right, acquiring companies does not raise shareholder value.
The revenues from those acquisitions is what raises shareholder value.
What raises it even further are the cost-cutting connections and "synergisms" (to use Welch's word) that occur between subsidiaries driving the parent companies value inherently higher.
For instance, let's say that MOTG owns a company whose software is about to break into the insurance industry. Let's say MOTG also owns a marketing company that happens to have just signed a contract with an insurance company. See the connection here? The cross-communication between subsidiaries, even though they are in different sectors, opens up a broad range of possibilities for future developments and income. MOTG has placed itself in the sublime position of being able to hand clients from one subsidiary over to another, and reap even more benefits. And shareholder equity.
Imagine still that MOTG owns a consumer electronics company. Say that MOTG looks to buy another consumer electronics company currently listed on the Nasdaq. Not only does MOTG go to the Nas without having to wait for its pps to hit $4, but suddenly we are looking at a synergy between two major electronics retailers in the US. Think there would be a merger between them? You betcha. Think that one large electronics retailer would put a bigger dent in the market than 2 smaller ones? Oh yeah. Think that the resulting company will add revenues and result in higher shareholder equity for MOTG? You know it.
"I do not see how it could be a long term investment."
As if you still needed a reason...
Look at the many pr's in which Welch has stated his goal to get listed on a major exchange this year. Look at the line in that same 10Q about how Welch owns 13,000,000 shares of commonstock in his own company. And go back to the recent pr which read (in bold, I believe) PROJECTED REVENUES FOR 2006 = $50-75,000,000.
Oh, of course you knew all that. That's why you're here, doing DD on a stock that has "too many red flags" to buy, and posting on the board that you are not going to buy it. Carry on then!
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posted
This was Welch's reply to my emailing him the post osu made. I thought it had merit and wanted to see what he would say. He responded within an hour with this long email.
WHY I SAY TO STAY AWAY?
So the $2,000,000 could be converted at 40% of .03 which is .012. When you do the math the equates to about 167 MILLION SHARES?
Again, presumption of worse possible stock price situation. Furthermore, the follow-on rounds aren't registered as of yet and won't be for months.
Our objective is to grow the company, acquire a wide stockholder audience. with sufficient liquidity and active trading, the 'conversion' won't even make a dent.At the moment, our market is more shallow than we would like. So, we stock can be pressed down easily, and when down, get kicked in the teeth. I've asked the CD holders to not kick us in the teeth , at least for a while and they have responded.
In the meantime, I will work to get the money refinanced. This won't happen overnight.
I appreciate these points and of course I'm always one for a lively debate. But I won't get wrapped up in this 'the sky is falling' reasoning.
My objective is to build the company. Period.
I have a few things going that will improve both the revenue and earnings picture.
Stockholders who get weak in the knees within weeks at the first sign of trouble will care little for 6 months from now.
No one likes it when a stock price declines, particularly the CEO of the public company in question.
These points this person raises appear over and over and I find myself constantly addressing them.
I may do so in a PR soon in an attempt to squelch its reappearance.
If we did nothing to promote the stock, promote the company and grow the company, this scenario is likely the right one.But I don't intend to sit on my hands.
So the 1500 series A stock equal $1,500,000 when converted at 85% of .03 (.0255) you get about 59 MILLION SHARES?
Presumption of conversion at these prices. None converted nor are any planned for conversion.
On January 24, 2005, we utilized $1.5 million of financing we received from four institutional investors to purchase a $1.5 million convertible debenture in DeMarco Energy Systems of America, Inc. Anthony K. Welch, our Chief Executive Officer and majority shareholder, is the Chief Executive Officer and Chairman of the Board of Directors of DeMarco Energy Systems.?
Can you say conflict on interest? How much is this guy getting paid at his other company? It is a PINK so no filings!!!
A presumptive question. This bespeaks a cynical nature. First: Me being Chairman could not POSSIBLY be a conflict of interest, whatever THAT is in this example. I am not paid a single penny nor a single share from DMES. This stockholder should thrilled that I am Chairman of DMES and working to get it turned around. Otherwise, the value from the DMES Debenture might go to zero. This 'conflict of interest' question is humorous.
"PINK so no filings!!!"?this implies secrets.Again, cynical presumption. Fact is, DMES is working VERY HARD to get its filings up to date right now. this fact has been mentioned in the DMES Press Releases if they had cared to read them.furthermore, DMES technology represents a possible revenue opportunity for MOTG. As DMES expands, so too does MOTG's opportunity to provide services and provide energy related technology to DMES as MOTG acquires them. It is a valuable relationship in our view.Therefore, I would say this person, at a MINIMUM, hasn't thought the matter through.
Add them all up you get 331 MILLION SHARES?
Remember the lower the price goes the conversions prices will be lower which equates to more potential dilution. So as the stock falls it will be harder for it to climb out.
Mathematically impossible. Investors wish a return on their money. Destroying the company doesn't achieve that.
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posted
There ya go OSU, the CEO's reply to your post Can't get much better than that.
My favorite part: "These points this person raises appear over and over and I find myself constantly addressing them. I may do so in a PR soon in an attempt to squelch its reappearance."
There's a responsive CEO if ever I've seen one.
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posted
MOTG has 150 million AS. Doesn't that mean they can only convert up to THAT MANY SHARES? That is why they convert low as to have a lower entry point?
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posted
i'm unable to watch the action this week...did ARCA do his thing today again ? why did we get 4M+ volume and couldn't get pass 0.04..ARCA?
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quote:Originally posted by stocknut2006: i'm unable to watch the action this week...did ARCA do his thing today again ? why did we get 4M+ volume and couldn't get pass 0.04..ARCA?
we had good volume considering only 45 minutes of trading were left. then of course some profit taking happened, and buyers eased up, picked up a little closer to the close. what will happen tomorrow Who knows? but as of NOW I am very happy with the way things are going
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trade04 - thanks for the reply. ...I agree i'm very happy about the way this company is progressing and we have a great CEO - not happy about the PPS but that will change soon IMO
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osu, IMO I think you should open up a small position and hold 'em all the way tot he nasdaq, but thats just my opinion gltu in whatever you do
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osu-thanks for your post and research. I think lots of people have been getting worried since the slip of the pps, and all the dilution we've seen. I'm glad welch responded.
IMO this is at least an easy double from here, so I think it's a good buy now even if you don't want to hold long like some of us. GLTY
posted
another I would have called his work garbage and i think i did...the reason as welch said is becuase it is far fetched....but your right about on thing is that those who buy will make a ton of money...
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Thanks for posting Mr. Welch's response. Nice to see him take some time to respond in such depth. (I only hope he's not neglecting responsibilities to do so, hehe)
I've sent mails to both AW and Megan in the past and never received a response. They either don't care for my questions, or I'm being too easy on them
I don't know about anyone else, but I really don't see how the share price can stay this low. We have a CEO who is hell bent on producing results. Only time will tell.
Good luck everyone who has had the patience to weather the storm, and to those of you who will be joining us in the near future
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