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. 

Here is what we know now… NOTHING !

Yes folks… we (as in investors) know nothing.  Speculation is running rampant, accusations and name calling are at a fever pace, and investors are failure forecasting doom and gloom.

There were pleas, suggestions, requests, and outright demands for information regarding the infighting issues.  Investors demanded answers, and rightfully so.

Then, as was requested of them, Joseph and Steve posted on Investors Hangout.  We believe Steve posted first with his post on Friday, here.  Joseph responded with a post here.  Today, Saturday, Steve posted this around noon.  Joseph responded about 3 hours later with this post.  Steve responds a few minutes later here.  About 10 minutes later Joseph respond to another poster here.  Finally, Steve responds here indicating this would be his final post on the subject.  ==> 4/28/13 (6:40p) UPDATE – Steve makes a comment to a poster here.

Then, after doing the best they could given the circumstances, to inform the investors what was going on, both Steve and Joseph started taking criticism for fighting publically on a message board.  It was sad to see that there was little gratitude for their efforts to inform the investors of what was going on.  They were criticized at first for not saying anything, then when they did speak out, they were criticized again for doing so.

Now, we understand the circumstances surrounding this issue are difficult, and airing specific issues like this out in public is not a good thing for the company, but in our opinion investors need to understand that Steve and Joseph were only trying to appease investors fevered calls for information… ANY information.  Investors were nervous and they wanted information.  They got it, then they lashed out… not all, but many.

So… here we are.. its the weekend after the news broke, and the overwhelming majority of posters on the message boards are forecasting doom and gloom.  Well, there is something called a “self-fulfilling prophecy” (Wikipeda).  In other words, a positive or negative prophecy, strongly held belief, or delusion – declared as truth when it is actually false – may sufficiently influence people so that their reactions ultimately fulfill the once-false prophecy.  Now we really have no idea if the news will crash the stock’s PPS or not, however with so many posters predicting it will… the PPS most likely will crash.  Hence the self-fulfilling prophecy.

If you are a stockholder that posted such a message, and although this may be your true belief, should you really be posting such a message?  Yes, you CAN post it (free speech and all that)… but SHOULD you?  After all… its only your opinion, not fact.  No one knows with a certainty that the stock will crash Monday morning.  In fact, its possible (unlikely, but possible) that a joint statement issued by both Steve and Joseph prior to the opening bell Monday stating they have reconciled their differences and all is well, could significantly ease this entire situation.

For those of you who feel compelled, or its your “right”, to be able to post your failure forecasting opinion in public… please be aware of the audience that may be influenced by your opinions.  You may feel strongly about being able to post such an opinion, but just be aware of the damage you may be doing to your own shares if you are an investor.  If your post is not part of the solution… please don’t let it contribute to be part of the problem.

Thank you.  Hopefully this situation can be resolved quickly, and in the best interest of the company, and shareholders.  We look forward to a speedy resolution.

WOW… what a day !

By now you may have seen/heard about all the commotion today about the [questionable] SEC complaint filed by Joseph Collins, PunchTV President, against the CEO Steven Samblis.  See the press release of the filing here.    We indicate “questionable” because although Joseph Collins posted he really did file the complaint… there is no complaint on file (at least published on Edgar) to be seen.  AND… Steven Samblis posted a denial here.  There is also a posting on the PunchTV Facebook page here that appears to be a further denial of the action.  There is no indication of who posted the message, however it appears to have been posted by Mr. Samblis, or someone acting on his behalf.

This appears to be infighting between Joseph and Steven.  This would not be uncommon for the two merged companies to have their owners clashing.  In order to build a company like each have, there has to be egos at play here.  As we understand the situation, Steve’s company bought Joseph’s company… and unless there is something in the details (fine print) of the acquisition contract that allows Joseph to cancel the contract due to a breach by Steven (and that’s what this may be, a move by Joseph to gain his company back)… Steven is in control.  Also, its our understanding that Steven owns a majority stake in the newly formed company called IC Punch Media, Inc.  Weather he retains his title of CEO or not… he still controls the company if he has a majority stake in it.

Its not hard to imagine that Joseph would feel he is losing control of his baby if Steven wanted to take the company in a direction that Joseph felt would be wrong, or not in keeping with his initial vision for the company.  Its a shame for shareholders that if this really is simply infighting between men, that it had to spill out in public.  This public airing of their dirty laundry so to speak could negatively effect a lot of shareholders.  Although this controversy is still in its infancy stage… initial speculation is Joseph will end up being the spoiler here.   This is NOT how you reconcile your differences !

Although we are very concerned that this will negatively impact the PPS, we remain optimistic that the damage will be short lived.  Although this situation has the potential to do a great deal of damage to the company from a shareholder value standpoint (decline of the PPS)… the forward motion of the company could remain intact, and on plan.  We remain optimistic that the 2 men will work out their differences and move forward as a team.  After all… BOTH of them have a significant amount of shares in the company.  If the stock tanks… their shares tank also, so they have a self-serving interest to rectify any differences they may have – and do it quickly !   However… all bets are off when egos get in the way of rational thinking.  Hopefully these 2 men can settle their differences quickly and get back to building the company.  Such would be in EVERYONE’s best interest !

Is PNCH a scam ???

Well… if you listen to the bashers… they would have you believe it is.  However… what do they offer in support of their accusations… more rhetoric.  And when you press them on any subject, they pivot and change the subject back to other failed and disproved issues. 

If you would like to see a more in-depth explanation, please click here.  This article was too long to publish in its entirety here in a blog format, so we elected to publish it on our sister site so you could get a more in-depth view of the material.  We think you will find it not only informative… but it also just makes sense when you see the associated links to the supporting documents. 

As always…you can leave a comment if you like by selecting the “Leave a Comment” link at the top right of the article.  Also, if you want to be notified when a new blog post is posted here, you may add your email address at the bottom of the page.  We will never contact you, and your email will be held in the strictest confidence. 

PNCH holding its own…

Been quiet lately !  Bashers still bashing and pumpers still pumping, yet the PPS remains steady, hovering around .005.  Looks like its putting in a pretty solid bottom around the .005 mark.

Bashers on LieHub still bashing, using the same old tired lies and scare tactics they have been using forever, only it looks like finally such is becoming ineffective at pushing the PPS down.  They need new material, but with the company steadily progressing, they are finding it harder and harder to find new things to distort and lie about.  They are so boring posting the same trash over and over, and over again.  Pathetic… just pathetic.  Maybe they don’t know that within 5 minutes using any search engine their lame tactics can be rebutted with real facts and documents.  Oh well… such is the pathetic life of a basher.

So,,, its a waiting game till the 10-Q, or release of a PR.  In the meantime investors are likely buying a few shares here and there when they get a few extra bucks.  It was a slow trading day today with less than 500K shares traded.  As we have said previously… until some catalyst awakens this sleeping giant, this will be a boring stock.  Stay tuned !

Poor judgement… or illegal ???

The following information has been brought to our attention by readers of this blog regarding the “Shareholder’s Meeting” on 4/14/2013.  YOU be the judge…

1)      There was a closed door meeting facilitated by the company CEO and President, and in attendance were “substantial shareholders” of PNCH.

2)      This meeting transpired nearly 24 hours before the public release of the 2012 10-K financial reporting.

3)      A full trading day transpired between this meeting, and the public release of the financial reporting (10-K).

4)      Leaked information indicates that there were discussions:  including, but not necessarily limited to, yet to be released financial information, aspects of current and future advertising activities, and overall corporate direction.

5)      Some, or all, participants discussed and decided to, keep this information to themselves, family members, and close acquaintances.

6)      As of this writing (and to the best of our knowledge) there has been no public release of the above discussed information in any public forum or formal press release.

7)      It is currently unknown if any of the participants used this information to make PNCH stock trades during or after the next trading session(s).

Now, we will let you decide if this is simply poor judgment by the parties involved, or something more sinister like conspiracy, or, even illegal activities regarding insider trading as defined by the SEC.

We understand, and are saddened by, the likelihood that this information will be fuel for bashers of the company.  It is abundantly clear that Friends of PNCH are supporters of the company.   However… we also want to make it clear that we do not support any actions of those that would conspire to withhold information from other shareholders, nor will we be complicit in such by not releasing the information we have been provided.  Any scorn should be directed to the participants involved, not the messenger.   We feel it is sad that a select few of the so called supporters, made a decision to withhold vital company information from other, perhaps less “substantial” shareholders.   There are many more shareholders that have their hard earned money (whatever amount large or small) invested in this company, and for whatever reason could not attend the meeting.   Its shameful that the company executives would allow this activity to transpire, and our sincere hope that they did not sanction this action.   We urge the company to release the privately discussed  information to their other investors, and/or the general public.

Tackling 2 issues tonight…

Number 1… lack of available information surrounding the shareholder meeting.  Take a look at this post on Investors Hangout.  I think this post sums up for many investors, the sentiment surrounding the PNCH shareholder meeting.  We think the company has a responsibility to inform the overwhelming majority of investors that did not, or could not, attend the meeting in person.  In our opinion there should be no difference in the level of information provided for investors that did attend, over those that did not attend.  We think its shameful, and irresponsible of the company to not keep their investors informed.

Additionally… it is also shameful and irresponsible (and we will add selfish, arrogant, and shortsighted to the description) for those that did attend, to not inform their fellow investors of any and all  information they received at the meeting – given that the company has not.  Those that attended call themselves supporters of the company, however to what purpose does withholding important information from other investors do to support the company???   We assume the views expressed by this poster are likely shared by many more investors, as well as potential investors.  We challenge anyone to explain, or justify, how withholding information like this helps the company.  If anyone truly supports this company, they would put their emotions and selfish feelings aside and provide as much information as possible to as many investors and potential investors as they could !

There was a post during the meeting that stated Joseph and Steve were addressing the attending investors, and that they were addressing the “hard” questions that many investors have been asking for quite some time (in fact one poster requested questions to ask during the meeting).  However, there was never any mention of the responses to those “hard” questions.  So… since no information was not provided regarding this Q&A session… are investors to assume that the information provided was not favorable, or, are they to assume that the “supporters” of the company are simply too selfish to distribute the information?

Now, there will be those that say… the attendees provided updates on the Facebook Longs page (supposedly so the bashers would not get the information).  Well, that’s true, but only to a minimal extent.  And, if you have used Facebook you will understand that the information is fragmented, and very hard to follow.  And also, there were many investors that stated they did not use Facebook and had no access to the information no matter how hard it was to follow.  Investors, in our opinion, were in effect, begging for more information than what was being provided via Facebook or relay posts on IH.

To the company, and to the attendee “supporters”… you are doing yourselves a disservice by not providing this information to investors.  In our opinion, we feel this withholding of information, to some degree, is responsible for the decline in the PPS immediately following the meeting.  Shameful… truly shameful !

Number 2… the notion that investors are excited to see the PPS drop (not counting those that may be short in the stock).  Really… are you serious ???  WHO… in their right mind, invests in a stock and wishes it goes down in value just so you can buy more ???  Are other investors equally excited to see the value of their investments go down just so you can buy more ?  The notion that investors are excited about a reduction in PPS is simply counter intuitive to investing in general.  The ones that post this garbage are the very ones overly excited when the PPS is rising.  Pick a hat and wear it… either you want the stock to go up, or you want it to say low forever so you can keep buying every payday.  Unless you’re quitting your job, I guess you want it to stay low forever so you can keep buying ?

Please people… you are doing a disservice to the stock by suggesting you’re happy about a low, undervalued PPS.  If you really felt confident in the company, you would be willing to buy at any price because you are confident the PPS will go up and you will make money on your investment no matter what you paid.  We suspect those that post these type of posts are really simply trying to instill confidence for other investors to buy the stock at these low prices… but all you are really doing is telling other investors to wait, and the price will go lower.  Is that really the message you want to send to potential investors???  If new investors are not willing to pay more than you did for the stock… how are YOU going to make any money.  Think about the message you are sending by saying you are happy about a falling PPS !

Ok… that probably made a lot of people mad, but so be it.  It needed to be said, and our mail indicates these are sentiments held by many more.  The next time the PPS falls… ask yourself if you could have done more to prevent such.  Or, maybe its just easier to blame it on the shorties, or the evil market makers, or… etc., etc., etc.

If you can’t help… at the very least, do no harm !

Looks like quite a few didn’t like the K…

WOW… PNCH down almost 40% today !   Looks like more than a few didn’t think the K was as great as Steve thought it was.  Volume was over 3 times normal today, with over 27 million traded.

So, as we mentioned in an earlier post, a “sell the news” sell-off was expected, and with not much “buying the news” leading up to the K, that left the PPS to close at .0052.  Now the good news here is… that is still higher than the months leading up to today.  As you know, the PPs hovered around the .003 area for several months prior to today (excepting of course the occasional spike during that period).

Hopefully we see some sort of PR release shortly regarding the successful Upfront party.  Perhaps something else might be released also… that would be great.  Some sort of PR could help stabilize, and perhaps even increase the PPS in the short term.

If you have some time we thought this piece of video was interesting.  While it showed the overall buzz surrounding the event, we would draw your attention to Joseph and Steve who show up at about the 2-minute mark.  We found it interesting that of all the things they could have said during that short segment… Joseph made a point to highlight the fact that they are a public company now, and people could invest in the company by buying stock.  This, we think, demonstrates Joseph and Steve’s awareness of their role in promoting the company as a viable investment.  And, if you haven’t seen it yet, they promote the investment aspect of the company prominently in the PunchTV website.  See that here.

So… we shall see what tomorrow holds.  Hopefully today’s shakeout was simply a buying opportunity for those who… A) have some cash…and B) have the vision to see that PNCH is growing more everyday, and in due time will reward its investors handsomely.