10-Q out… many dismayed at results.

Well, its official, the 10-Q made its debut yesterday, and many were disappointed, surprised, dismayed, and yes… angry.

There was some confusion over the accounting procedures used to reconcile the divestiture of Punch (as explained here), in that there was a loss of 1.57 million showing on the bottom line.  However, one of the largest concerns was the recording of zero revenue.  Almost everyone was shocked that IC Punch Media, Inc had no reported revenue during that time period.  There was initial shock and outrage expressed on the message boards surrounding the disbelief that the company had no revenue during that time, when they knew (or thought they knew) that the company was broadcasting, and selling ad space.  Early the next morning the CEO explained in this post and here and here. that the revenues stayed with Punch as part of the divestiture.

As the questions began to fly from the upset investors on Investors Hangout shortly after the release of the report, the CEO became combative and what some said was dismissive of their questions, represented in posts here, and here, and here.  Needless to say, angry and insulted investors fired back, and the situation grew more combative as time moved on.

Then, in the wee hours of the following morning (5/22/13) the CEO reappeared on the board and began to answer questions.  Most board members of course had left the board by that time, however there were still some lingering questions that he did answer.  One recurring question theme was related to the divestiture, which the CEO elaborated on in this post.  We think this is a significant revelation.  In the post the CEO not only explains that the company did not lose anything in the Punch divestiture, but that there is a likelihood that  Collins may owe IC Punch Media, Inc. the difference between the value paid in stock, and the value returned in stock.  Now if most accounts of the Collins financial picture are anywhere near accurate, Collins may be what they call Judgment Proof, in that even if it is determined he owes something, he has no funds to pay.  The CEO did address that situation somewhat in this post here.

So… where does that leave us now, today ???  Well, here’s the good news… there was a Press Release around noon today announcing some new appointments to the company’s management.  See the release here.  This is exciting news.  If you read through the release, you will notice a common thread in all the appointments… the ability (and previous experience) to raise large sums of capital to finance ongoing and new initiatives.  This news appears to be well received by the investing community, as the stock’s PPS took a real deep dive during the opening few hours, however as we draft this post the stock has recovered almost all of the initial loss of this morning.  We closed yesterday at .0032, gaped down to open at .0026, and are currently sitting at .0029, with 2 more hours of trading left today.  Hopefully the PPS not only recovers, but starts a sustained climb up to the levels that are representative of the value of this company.

Stayed tuned folks… this thing may be down, but certainly not out !  The CEO stated we would be hearing many good things in the coming weeks, and if the initial indication of today’s announcement is any indication of what is to come… this will be an E-Ticket ride !

All is quiet… and some getting nervous !

As we have said before…. no news is not a good thing in penny stocks.  Now its only been a week since the breakup, and we understand the CEO is probably pretty busy, but none the less, that week would have been a good time to keep up communications with investors.  Communication is extremely important when it comes to penny stocks.  Investors start to get nervous when there is silence from the company.  Investors hear all too often about penny stock companies going “dark”… i.e. cutting off all communications with the investors, and that is usually the early warning sign of a company is not doing well, and in many cases simply closing up shop.  You will hear many investors talking about investments they got burned with saying… I should have known because they stopped all communications… i.e, went dark. 

Now, do we think Mr. Samblis is closing up shop… no, but there is no way of knowing that if he keeps being quiet.  We feel, he missed an opportunity to get out in front of the Punch/Collins scandal, and now we also feel he is missing another opportunity to keep investors informed about the current state of affairs and any plans that may be known at this time, subsequent to the divestiture .  In medicine they call it the “golden hour”… that’s the hour immediately following the medical emergency.  Get medical attention during that critical hour and you have the greatest chance of survival.  We believe its the same here… there was that critical time immediately following the Punch/Collins news release, and that time was wasted, and now we have another critical period of time in which communication is critical, and this time appears to be being squandered also.  

Perhaps the silence is because there is little news yet, as plans are not finalized.  Fine, but keeping completely quiet because the complete and finalized plans are not solidified yet is the wrong way to approach the communications dilemma.  Inform the investors of something… anything, just to show nervous investors you are not taking the company dark.  Investors get nervous in times like this, and when investors get nervous they do what is safe…they sell.  Show up and say you can’t say anything yet (wouldn’t recommend this but its better than silence) however you will keep them up to date as much as possible.

Please… don’t miss this golden opportunity to reassure nervous investors about the new plans.  Most investors in PNCH are extremely nervous right now… and who could blame them after the recent scandal.  They need something… anything… to be released.  The “golden hour” window is closing, and you can’t get it back… don’t squander it, please !

If you agree, or maybe you disagree… make your views known by selecting to comment on the post.  There is a link at the top-right of this post that will allow you to leave a comment.   Let YOUR views be known… perhaps if enough investors make their views known, the CEO may reconsider his silence. 

 

All Punched out !

Yes, its true… after weeks of IC Punch Media, Inc. CEO Steven Samblis saying he would never lose the PunchTV assets he purchased… he agreed to rescind the Asset Purchase Agreement and divest his company of all Punch assets.  See the Collins “Letter to Rescind the Asset Purchase Agreement” here

Many were struggling to understand the WHY behind the sudden turnaround in his previous stance that he would never lose the assets.  Mr. Samblis responded here, to the question here.  Also, here is the 8-K SEC filing which notifies the public of the action, and company name change.

Needless to say, this action took many by surprise.  The surprise wasn’t so much about the divestiture action itself, given the turmoil between the company principals… it was the that the action took place in such a short period of time between the demand for such by Collins, and the numerous previous vehement denials of Samblis that he would ever do so. 

Months since the original purchase of PunchTV had been spent extolling the benefits of the asset purchase to the then IC Places, Inc company.  Great emphasis and attention was placed on the increase in the asset value of the business, and great plans were envisioned for the promotion of the newly formed company.  Just when everything looked as though the plans were paying dividends, in the form of increased revenue from the broadcasting division… news of the turmoil surfaced.

At first, many were clamoring for information on what was going on between the owners, for it was just a few days earlier that they had both appeared together at the very successful UpFront  promotional gala for the company.  Accusations surfaced, asserted by Mr. Collins, that Mr. Samblis had been less than forthright with Mr. Collins compensation.  Rebuttal accusations then surfaced by Mr. Samblis about Mr. Collins having been less then forthright about running the broadcasting side of the business.  Shortly thereafter came the above referenced demand letter to rescind the original asset purchase agreement.

When Mr. Collins posted the demand letter on the PunchTV website, many, including Mr. Samblis thought Mr. Collins had simply lost his mind.  That is about the time Mr. Samblis began his vehement denials that he would ever let those assets be returned to Mr. Collins.  You can follow many of those assertions by reviewing the posts outlined in the post referenced above (here).

So… here we are.  The Asset Purchase Agreement for PunchTV has been rescinded.  Mr. Samblis has already taken actions to start his own broadcast network, entitled VU Television.  He has, or is in the process of, divesting himself from anything and everything PunchTV related.  He has started on a new website here.  There is not much material on the site yet as it has just been created from a template, so you may need to disregard much of the template text you see at this time.  As far as any other plans, they are sketchy at this early stage, but the concept is, Mr. Samblis will build a better broadcast network than PunchTV and Mr. Collins could provide, and there will be no negative connotations of being associated with Mr. Collins in the future.  

We understand that if you are new to this news you may have many questions that were not answered in this recap type post.  However you can find more complete details on our website here.  There you will find information, complete with documents and links as far back as September of 2012.  

Stay tuned… this journey into the new VU Media broadcasting company has just begun.  Hang on for a wild ride.  Its too early to tell how these events will effect the PPS.  We do know that the turmoil was not kind to the PPS, however only time will tell if the progress form here on out will be accepted or rejected by investors. 

Speculation running rampant !

Another week passes… and it’s another week wasted, because there has been no formal comprehensive press release explaining the company’s dispute between the principals.  The PPS is stagnant, the rumors and innuendos are ridiculous, and the message board posters take the smallest tidbit of information and spin it to suite their agenda and/or imagination.  No one knows anything because nothing has been formally released to the public.  There was an excellent post here that describes the issue and suggests a remedy, however it likely fell on deaf ears.

Oh yes, there have been bits and pieces of information released by the disputing parties, however nothing formal has been released explaining the disputed issues, and what, if any, steps are being taken to remedy the situation.  Until such is released, we believe, the PPS will languish around the .002’s where it has been since the early days after the dispute news hit the media and message boards.  Without formal facts… just about everything you may read is purely wild speculation and uninformed opinion.

We implore Mr. Samblis to release a formal document to the investors and general public detailing the dispute and the remedies sought.  He has already missed the only opportunity to get out in front of this in order to preserve the investors confidence.  Our hope is, he doesn’t wait until its too late for any chance of recovery before realizing he needs to release a statement.  We feel he has an obligation to report the issues thoroughly and honestly… and as soon as possible, given the current declining state of the PPS.

Where penny stocks are concerned… silence is NOT golden !

 

Censorship on PunchTV Facebook page !

Well… as can be seen by the below graphics… there is obviously blatant censorship being perpetrated on the viewers of this PunchTV Facebook page (purposely did not provide a link to a site as deceitful as the subject site).  You might keep that in mind if/when you visit there.    If you can’t trust some of the content… can you trust any of it ???    AND… how can you trust something you can’t see… i.e. deleted because someone didn’t want you to see it.  If you’re like us, when you go to a site like this, it is to get information… ALL the information, not just what someone allows you to see.  It seems apparent that when that someone can not defend the truth, the next best thing to do is… DELETE it !

( HERE is the link to the official PunchTV Facebook page)

As can be seen in graphic #1, Cassandra Cooper says the board is “for and about Punch TV“.   To most readers this means if its Punch TV related, it has a place on their site.  And most reasonable people would believe that the turmoil between Mr. Samblis and Mr. Collins is related to Punch TV.  Also, most reasonable people would believe questions and comments from Shareholders of PunchTV stock would be related also.

So, any reasonable person would be concerned if their comments were deleted and not available for other interested parties to see, and comment on.  And in one reported case, the ability to post anything has been denied.  Actions like these should cause concern for any interested parties.

As can be seen in (the differences between) graphics # 1 and 2, there has obviously been some degree of censorship practiced here.  As you can clearly see, our post has been removed.  We used no profanity, nothing derogatory, nothing disrespectful… just (what we believe to be) a fair question given the current turmoil.   These screen shots were taken a few hours apart, today.  The difference is obvious, and speaks volumes toward the frame of mind the people in control of this site have.  As we stated above… when you can’t defend the truth… the next best action to take is… DELETE it !  What a shame… and what a disservice to the readers of the site.  It seems apparent the censors have no respect for their readers, and are attempting to insult their intelligence by spoon-feeding them information.  Shameful… just simply shameful.

Graphic #1

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Graphic #2

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PNCH PPS circling the drain !

Yes… its sad, but PNCH PPS is down today… way down at .0026, from a gap-down this morning.   However, there was a slight bright spot, it held its own throughout most of the day.   The PPS is back to its consistent lows of February now.   Will it go lower… its likely to go lower if this ownership turmoil is not settled soon.

There is a lot of news, such as CEO posts and open letters from Mr. Collins (you can follow most of it on our website in the News section here)… however there is really no news, at least the kind of news everyone is looking for, namely the kind of news that indicates this dispute is settled. 

Since this is a legal matter now, it will likely take some time before its settled.  We just hope the PPS can hold out that long.  The PPS may dip into the “trips” as they call it (i.e. .000x) if there isn’t some substantial good news shortly.  If you visit the website link above, you will see some rather strong posts from Mr. Samblis, which was encouraging, but we need something definitive very shortly to save this PPS from complete disaster. 

Now, some already think this PPS is a complete disaster, however we would remind you that this is where the PPS was as recently as February of this year.  Do we like the PPS way down here, of course not, but we are confident the company will resolve these disputes and it will move forward with its business plan to become a dominate player in its field.

 

What’s the status of PNCH ???

There has been plenty of speculation and assumption surrounding the status of the company since the Joseph Collins (self-proclaimed CEO) of IC Punch Media started his crusade to (what many think is) effort to regain control of his company… that he SOLD to IC Places, Inc in June of 2012.  Now… no one that we know has seen the contract of sale, but its highly unlikely there was a buy-back (or take-over) clause in the contract.  Selling the PunchTV assets is no different that selling any other assets… say your car for example.  Have you ever bought a car, only to have the (previous) owner come back to you in a year of so later and demand it back???   That is ridiculous right?  Well, that’s what’s going on here.  Collins wants the company back, and he is simply claiming it’s his now.  Well… it simply doesn’t happen like that.  There this little thing called due-process.

Now, the shareholders have been clamoring for information on the status of the hostile takeover, and rightfully so.  Although Mr. Samblis has been, what appears to be, as forthcoming as he could possibly be to date, given the legal ramifications of releasing such information… shareholders still want more.  Many have been calling for a formal Press Release on the matter.  Well today Mr. Samblis issued, in our opinion, about the most unambiguous statement to date that any CEO could possibly issue.  Because it was posted on Investors Hangout, a public message board, this is about as close to a Press Release as one can get.  As a shareholder, if you can not consider this to be a de-facto, highly informative, and precise press release… then maybe you simply shouldn’t be invested in the company.  Here is the post from Mr. Samblis:

So we are all clear.  I have two law firms dealing with this and it is taking the time needed to file this.  Nothing I can do about that to speed up the process.  IC Punch Media owns all the assets of Punch TV.  Our group has over 51% of the voting shares of the company.  JC and is minions are attempting to use our assets illegally to try to create revenues for themselves.  That phone number you called is the number for the offices that JC has which was part of what we purchased.  Ramous and JC are in that office and will clearly say whatever they want, no matter how wrong it is.  During this transition we are having to deal with people like this that have no knowledge of the law and the laws they are breaking this includes Ramos and JC.   They also control access to the website and are doing the same with that.  None of this changes the fact that we paid JC and Punch TV almost 7 million dollars in stock for those assets and for JC to run those assets for us. We own these assets and will take over control very shortly.  This is not a fight we wanted. We are taking the legal steps required to remedy it in the quickest way possible.”

So… is there ANY doubt who owns what… and who is legally in control of the company ???  We think not !

 

PNCH up 10% today !

Yes, that’s right… the recovery continues.  Today’s closing PPS of .0044 is getting real close to last Friday’s closing price of .0049.  Looks like the stock will FULLY recover from the news on Friday.

A special note here… apparently there has been some more bizarre actions by Mr. Collins today by creating another Facebook page for PunchTV, and also changing the PunchTV website by removing any and all references about Steve Samblis, and IC Punch Media, Inc.  Here is a statement Mr. Samblis posted on the OFFICIAL Facebook page:

A NOTE TO OUR FANS… This is the only Official fan page for Punch TV. Recently in a continuation of ridiculous misguided actions a certain individual created a copy cat page of Punch TV. IC Punch Media, Inc. owns Punch TV and all of the assets of Punch TV and has since July of 2012.

These actions by Mr. Collins appear to be harmful to the overall well being of the company.  Mr. Collins, in a statement posted on the PunchTV website states:

As a senior officer of the company, and Chairman of the Board, it is my duty to do everything within my power to protect the integrity of our company and our investors.”

Well… Mr. Collins actions regarding his disagreement with Mr. Samblis are certainly NOT protecting the integrity of the company.  Mr. Collins should have taken actions in a court of law if he thought there were breaches of contracts, NOT publically caused embarrassment and distress on the company and/or shareholders.  Maybe Mr. Collins has valid claims, maybe he doesn’t… but clearly his recent actions appear selfish and shortsighted, and clearly are designed to benefit only himself. 

It’s a fair question to ask… given the recent actions by Mr. Collins… WHO would you want running the company, Mr. Samblis, or Mr. Collins?  There likely is not enough information to intelligently answer this question yet, however based on the actions of the two men so far, we think the answer is clear… Mr. Samblis.  Its a shame it has come to this, but it wouldn’t be the first time merged companies have these types of difficulties, and it certainly won’t be the last.

Please visit our website for more information about the company.  Visiting the FAQ page will allow you to follow news and issues over a period of time in chronological order.  Use this page for reference when you need links to articles or news events.  Also, if you would like to be notified when new posts are made to this blog, please scroll to the bottom and enter your email address.  We will never send you spam, never sell or share your address, and your address will be kept in the strictest confidence.  Of course you could also simply bookmark this site for easy reference.

 

PNCH – Strong Recovery !

Great day today, PNCH up 33% on above average volume.  Looks like the recovery process is well on its way.  It also might be possible that the CEO’s (Steve Samblis) appearance last night on Investors Hangout went a long way towards alleviating some fears and concerns that investors had over the recent issues between Mr. Collins and Mr. Samblis.  You can follow the conversation starting here with Steve’s first post.  Best we can tell, Steve stayed on the Hangout for almost 3 hours answering questions.

Now, of course there will be (and has been) some who will criticize Steve for not answering every question.  Just keep in mind, he answered the questions he could given the situation at hand.  As reasonable people can understand there are some questions, and aspects of the issue he simply can not, and should not, discuss.  Its a shame that he is criticized when he doesn’t talk, and criticized also when he does talk.  We prefer it much more when he does address the issues he can discuss.  And, judging by the PPS today, apparently many other investors feel the same way.  Its refreshing to see a CEO willing to address the shareholders so frequently and honestly.

Will the gap fill tomorrow??? Who knows, but we think there is a good chance it will.  Remember, the PPS opened at .0055, then closed at .0049 on the day of the news release Friday.  We closed today at .0040, so the recovery is well on its way !  A 33% increase, on heavy volume, is a great recovery in anyone’s book !

PNCH down 38%… who’s to blame ???

Yes, PNCH fell 38.7% today on HEAVY trading.  There were over 67-million shares traded today.  That may have set a daily record, but not sure. 

So… who’s to blame for the decline???  Well, certainly Joseph Collins is high on the list, but what about Steve Samblis?  And, what about shareholders?  Yes, we said shareholders.  How could shareholders be to blame you may ask.  Well, if you go back and re-read the lower half of yesterdays post here, you will see what we mean.  Disgruntled shareholders are bashing the stock, company, executives, flippers, bashers, and the anyone else they can think of.  Its a shame really… this is the same company they supposedly invested in last week and were posting the virtues of, now they are bashing it mercilessly as a POS stock.  Folks, this company was earning revenue last week… and it will be earning revenue next week also.  Yes, there is squabbling between the owners, but this squabbling will get resolved, and the company will be the same company it was last week.  Owners squabbling is nothing new, and not unique to PNCH.  It happens !  Companies get past it, and so should you.

Now… maybe a better question would be… who CAUSED this decline.  The bashing shareholders are simply reactionary to the cause.   Many believe Joseph Collins is to blame, while some say Steve has some contributory blame here also.  Many believe Mr. Collins acted selfishly, as his statements were interpreted as being about money and power (i.e. the lack of).  Mr. Samblis on the other hand is accused by some for not being more accommodating to Mr. Collins’s requests.  In other words Steve should have worked this out with Mr. Collins  before he went public with the press release.  Truth is… not enough information is known for any reasonable person to draw any conclusions as to cause, or blame assessment.  What anyone knows is what each side has been willing to divulge.  There is a saying (and song also)… “there are 3-sides to every story… yours, mine, and the whole darn truth”. 

This will get resolved, and for the sake of the shareholders (of which Mr. Samblis and Mr. Collins are significant ones) this should be resolved quickly.  HOW it will be resolved is another story.  How many men could simply put an issue like this behind them and continue on like nothing happened?  Tougher issues have been resolved between other men without lasting harm to the relationship, however lesser issues between other men are left to cause bitterness and resentment for a long time.  Stay tuned…

In the meantime, we think the PPS has found a bottom and will likely move up from here (after all… its a good company, with assets, that produces a product, and revenue).  If you were waiting for cheap shares… your wait is over.  For all the things that could cause a company’s PPS to fall… this is one of the better things to happen.  There could be far worse things that could cause a PPS to fall… none of which are present here.  They will either work this out, or they won’t… but it is very unlikely either of them will cut off their nose to spite their face (i.e. ruin the company to spite the other)… they both have too much to lose.