Pure fiction !

Yes folks… the latest 10-Q is out, and what a great exercise in fiction writing it is.  Pure smoke and mirrors.

Let’s set the stage here.  This latest 10-Q (as all SEC filings are) is a legal document.  To misrepresent the information provided in the legal section (see below graphic-click to enlarge) in our opinion sets the stage for the rest of the document.  Doing so also calls into question any other information provided on the form.  For if you misrepresent the legal information in the “legal” section… how is the rest of the document any more accurate ?  Also think of filing this document as you would your IRS tax return you file.  What happens if you misrepresent and/or omit information on that form?  There is really no difference between the two, as they are both legal documents submitted to a federal entity.

ImageOf course we are talking about the situation in which Mr. Samblis was sued (for $75,000.) for breach of contract over one of his proposed shows, for his proposed TV broadcast company (see the actual court documents here).   There is no question there was legal action against both Mr. Samblis and IC Places,  the documents prove it, and, Mr. Samblis agreed to a settlement of the case, in which he later defaulted on (all documentation available here).

We also know that there were at least 2 other previous incidents where information was misrepresented on the SEC document filings, (President resignation here), and CEO Employment contract here).  Of course this document is largely a financial document, and given the above, and having no access to the company checkbook… how can anyone believe the financial information is correct also?

As an example, look at the graphic below… it lists NO advertising revenue !  NO revenue in ALL of 2013, and NO revenue for the first 3-months of 2014.  HOW IS THAT POSSIBLE ?  How is it possible for an operating company, displaying obvious advertising on their websites, not to have any revenue in over 15 months.  Is that believable ?

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Notice the clarifying statement contained within the 10-Q where it states: “Advertising revenue is recognized when businesses place advertisements on the IC Places website or through banner ads or upon a customer’s purchase of partner offerings originated from links through the company website. Punch Television records and recognizes revenue when advertisements are aired through their websites.”  There is certainly advertising being displayed on the websites, and there are certainly links being offered on the websites, so… which statement is correct?  Both cannot be correct given the evidence.  Notice the “Punch Television” designation within the statement… apparently Mr. Samblis doesn’t proofread his filing documents prior to hitting the send button.  Perhaps Mr. Collins should be alerted to the fact that Mr. Samblis is still referring to his company as “Punch Television”… wasn’t Mr. Samblis prohibited from doing that?

So folks… how believable is ANY of the information contained within this (or any) SEC document filed by Mr. Samblis?  Many investors wait in anticipation of these filings, as the concept is for the document to give investors a clear and accurate picture of the company.  How clear and accurate of a picture of IC Places, Inc. is this document?  We suspect Mr. Samblis laughs so hard when drafting and filing these documents, that he looks forward to the time when he can do it again. Who wouldn’t want to take a trip to fantasyland every 3 months?    If Mr. Samblis wants to generate some real revenue form his efforts, perhaps he should take up fiction writing in the form of a book describing his tried and proven ways to run a successful cash-cow of a company.

And just as an aside… what kind of CEO overdraws the company checking account to the tune of $697.00 in 3-months?  (see below graphic excerpted from the referenced 10-Q filing).  Banks customarily charge $30.00 for an overdraft situation.   $697. represents about 23 overdrafts within 3-months time.  That’s about 1 overdraft every 4 days.  There’s some top-notch fiscal management for you !

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WHY would anyone trust Mr. Samblis with 1-penny (would buy 5-shares at current PPS) with their investment money given the above ???

 

PNCH falls to PINKS !

PNCH falls to PINK status, and is headed for trip-zeros (again) after 3 reverse splits.  This performance would be hard to duplicate even if you tried.

WOW… textbook picture of what NOT to do when running a company !   And… we believe all of this – ALL OF THIS… could have been prevented had Mr. Steven Samblis, CEO of IC Places, Inc. just acted like a normal CEO.  But instead he ridiculed and berated his investors that asked him questions he did not want to answer.  He made terrible business decisions by letting his ego and arrogance influence his actions and decisions.  He misrepresented the information about the company and its performance.  His actions of hiding behind multiple aliases on message boards only served to reinforce the thinking that he was avoiding being held accountable for his actions and statements.

Mr. Samblis’s actions just reinforce the concept of… you can change the name of the company, you can change the ticker symbol, you can even change the core concept of the company from a website to a broadcast multimedia company – but the one thing that did not change through all these 9+ years… was the CEO !   The history of this company, and the actions of its CEO should be taught in business schools around the country.  Failure, and what leads to it, is teachable, and many could learn from the avoidable mistakes of Mr. Samblis.

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Will Mr. Samblis quit?  Highly doubtful.  As long as there are people willing to invest without researching Mr. Samblis’s past, he will likely continue on… likely using other people’s money of course.  However… there are a dedicated group of [previous] investors out there that will do their very best to educate potential investors about Mr. Samblis’s past business decisions, actions, and performance.

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It appeared Mr. Samblis just didn’t understand the power of today’s technology regarding the ease of recording historical events, and access to historical information.  He also didn’t seem to understand the power of the investing community in getting the word out about the company, and his actions running it.  With today’s social media vehicles, its financial suicide to actively offend those that you need to rely on for support.  It will be said by many investors that lost money investing in this company, that it was the naysayers that caused its downfall.  We say… that is putting the carriage before the horse, for if there would have been no bad decisions, misrepresentations, investor disrespect, and poor performance of the company… there would have been nothing to bash.  Mr. Samblis gave the naysayers everything they needed to bash the company, and handed it to them on a silver platter.  They were only doing what needed to be done to warn others about what was likely to happen to their investments if they continued to believe in Mr. Samblis.

Look up Train Wreck in the dictionary, and you are likely to see a picture of the IC Places train careening off the rails, with Mr. Samblis at the controls, with a dazed and confused look on his face.  As they say… its just a dam shame, because it was a preventable disaster.

REVENUE… where is it ???

Can YOU find the revenue???  In our previous post (here) we asked the question… WHERE is the revenue?  It seems inconceivable that after spending millions and millions of investor funds… that there was not even $1.00 of revenue generated in fiscal year 2013.  But is that accurate ???  Mr. Steven Samblis, CEO of IC Punch Media, Inc reports, and attests to by his signature on the most recent 10-K filing, that there was NO revenue generated in FY 2013.  Again we ask… HOW can that be ?

Below is a great post from an investor asking the same thing (click to enlarge).  Kudos to this investor for asking THEE most important question about WHERE is the revenue.  As we pointed out in out last post, we are not talking profitability here… we’re talking simple revenue… i.e. were any funds paid by clients/customers/affiliates as a result of any of the public company’s activities or investments.

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As many know, there are a lot of issues surrounding this company, from the apparent misrepresentations in the SEC filings (details here) to the controversy surrounding the departure of the president… but none are more important to investors than the money !  Many investors could care less if the CEO lies (or even lies to them), as long as he is making them money.  BUT… mess with their money, and you will see investors get mean !

Working from the presumption that revenue is being generated (how could it not be)… WHERE is it at ???   For example… it’s been stated many times that the company doesn’t become “profitable” until the 5th airport comes on-line with the Clearvision deal.  If that is an accurate statement… then where is the “revenue” from the first 4 ???  In order to become “profitable” you need revenue to overcome expenses… but revenue just doesn’t appear at the break-even point… it accumulates from the beginning.  WHERE is the revenue being generated by the first 4 airports ?

All other questions (and there are many) surrounding this company and the business practices of the CEO Mr. Steven Samblis, are trivial when compared to the question of where is the revenue, and is it being diverted to another portion of Mr. Samblis’s business activities that are outside of the public company.   Again… Kudos to Mr. Milesblue42 for asking the most important question !   Perhaps a governmental agency, like the SEC or IRS, will soon be asking the same questions as Mr. Milesblue42 is asking.  It’s doubtful Mr. Steven Samblis will be able to put them off like he puts off his investors.

Rate the CEO’s performance !

Is the CEO’s performance, as represented in the below graphic (click to enlarge), (excerpted from the most recent 10-K report here) worthy of the title of The Worst CEO Ever ???  They say, even a blind squirrel finds a nut once in a while, but apparently this CEO, after having spent millions and millions of dollars of investor funds (3.25 million this year alone), doesn’t seem capable of making decisions that result in even $1.00 of revenue.  HOW is that possible. Could such even be duplicated in some sort of business simulator by a professional ?

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We are not talking about “profit” here… we’re talking “revenue” !  Even if you buy a widget for $10.00, and sell it for $5.00, aside from not being to smart to sell it for $5.00… you still have “revenue” of $5.00.  Again… how is it possible that there is NO revenue… not even a dollar !   Is Mr. Steven Samblis, CEO of IC Places, Inc. running the advertising that can be seen on the IC Places website for FREE ???   Is he not making a dime from the Prescription Discount Card program, or not generating ANY revenue from the VU Television (now DriveIn Television) effort ???   Really… HOW is that possible ?   Can anyone put forth a scenario in which this could be possible ?

OR… is it possible revenue IS being generated, but its being recorded outside of the public company?  Is there more to the “Strategic Partnership” than investors are being told ?  Mr. Samblis has said that the public company “manages” the other business divisions, but it doesn’t appear that this “management” contract and/or details have even been publicized.  Could it be that NO management fee is being paid (or perhaps charged), yet these divisions are generating revenue ?

In the entertainment business Agents manage entertainers, and those entertainers make money (generate revenue).  It would be possible, (unlikely, but possible) that although an agent “manages” the entertainer… he/she takes or accepts no management free for their efforts.  An example may be, a parent manages his/her child, and although they would perhaps be entitled to charge/accept a fee for such, they chose not to.  Nothing illegal about not accepting a fee for your efforts… in the right circumstances.

What are YOUR thoughts?  Perhaps you have an explanation of how its possible for the public company to record NO revenue for a full years efforts, while its plain to see advertising being displayed and business appears to be being conducted.  As many say… this just doesn’t pass the smell test !