Dilution… you be the judge !

Hello folks… there is still a lot of buzz on the boards regarding Mr. Steve Samblis, CEO of Imagination TV (IMTV).  Pumping type of posts from several new comers appearing to attempt to sway newbies into buying IMTV stock.   If it weren’t for the integrity issue involved in supporting their efforts, many more disappointed investors would be beneficial to getting the word out about the history of this company, and it’s CEO Mr. Steven M. Samblis.   However it would be flat out immoral to suggest they buy stock in the company for a purely selfish reasons based on the history of the company, and it’s CEO Mr. Steven M. Samblis.

Two points… number one – is the dilution claim valid?  Well, one needs to look no further than the below graphic.  It tells the story, and history of this company.  Just take a look at the encumbered stock shares as a result of the loans the company (i.e. Mr. Steven M. Samblis) has made.  (click to enlarge)

IMTV_ConvertableDebtNotice the $472,107. dollars of convertible notes ???  Also note that the figure is from September 30, 2014… over 7-months ago.  Has that figure increased since then ?   Also notice the price paid by the convertible loan provider (i.e likely Asher) – wow, how would you like to get your shares at a 65-69 percent discount off the retail price???  AND… look at what the lender pays for the shares if there is a reverse-split… $0.00001 – that’s 4-zero’s folks !!!   So… if an investor is in the market to sell their shares… who do you think would win the bidding war for the very few buyers out there?  We are not sure how many of those shares  would be covered by the anti-dilution clause of the contract, but given that the last reverse-split was done in October 2014, it would be a safe conclusion that ALL those shares were bought at quadruple-zero 1.  Do the math on that for a clue to how many shares are being flooded into the market.  You’re going to need a really big calculator !

Number two… revenue.  There is a post from a poster that they indicate was from Mr. Steven M. Samblis himself.  Quoting the text supplied it states “The launch brings in revenues…”.   Well, for the sake of argument let’s say that’s true.  There are many who believe (and the evidence would support such) that Mr. Steven Samblis is currently making revenue from the web sites he maintains, and the obvious advertising viewers see on the sites.  Either Mr. Steven M. Samblis is giving away those ads for free, or, there is revenue being generated from such.  Assuming Mr. Steven M. Samblis is not giving the ad space away for free – where is the revenue from those ads ???  It is certainly not being recorded in any of the last several quarterly reports – so where is the money?

Given the above… why would anyone think that any revenue generated from the proposed “launch” be added to the coffers of the public company?  Apparently none of the current revenue is going to the bottom line of IMTV, so why would any future revenue go there either ?  Is it really believable that all the effort AND MONEY ($472 thousand that we can see) that Mr. Steven M. Samblis has poured into IMTV – that there is not one dollar of revenue ?  That just defies logic.

So… “Good things coming soon…” – highly doubtful based on the 10-year history of Mr. Steven M. Samblis and his company IMTV/PNCH/IC Places.  As they say… even a blind squirrel finds a nut once in a while, but in the case of Mr. Steven M. Samblis, he apparently has not found one in 10-years, so the chances are not the greatest he will find one anytime soon.  In the meantime, one has to ask… how does he support himself, and pay the expenses of the company if it makes no revenue ???  Can you say – convertible debt ?

 

Ticker change ???

Doubtful !  If the estimates that have been indicated by Mr. Steven Samblis are accurate, the cost to change the symbol is somewhere around the $15,000. mark.  Everyone knows, or should know, that Mr. Samblis keeps the company running by selling stock to finance day to day expenses, and also… cheap shot coming… his bar tab.  So, it is conceivable that in order to do a symbol change he would need to sell stock to pay for it.  Today, the PPS was for the most part of the day sitting at .0001.  In order to sell enough stock to pay for a symbol change at that price, Mr. Samblis would need to sell 150-million shares of stock to pay for the change.  Doubtful he will do that unless or until the PPS increases….which seems unlikely anytime soon.

Given the PPS lately, Mr. Samblis has likely had to sell more and more of the company’s authorized shares to pay the ongoing expenses of the company, and, his personal compensation as CEO.  Mr. Samblis had posted previously that there were some months where he would need anywhere from $15,000. to $40,000. to run the company per month.  Now given the recent decline in the company’s  activities its unlikely he is needing that much every month now, however its fair to assume he needs some amount of money to operate the business’s day to day operations.  Mr. Samblis likely has personal expenses to meet also, and the funds to pay those expenses likely result from selling stock also.  Where else could the money be coming from if not selling stock?  The company has no revenue (according to the last few filings), so unless he has a part time job somewhere, the funds come from selling stock.

So… at the recent PPS average, it’s conceivable that Mr. Samblis is selling somewhere between 25 and 50 million shares of stock every month (and that’s assuming he only needs $5,000. a month).  Of course the quantity sold would be adjusted accordingly based on then current PPS and amount of cash needed.  As the PPS declined, Mr. Samblis was forced to sell more and more shares of stock just to meet the same level of monthly expenses.  The low PPS is killing shareholder investment twice… once because their investment value is decreasing as the PPS decreases, and again when Mr. Samblis needs to dilute at a greater and greater level to meet the fixed monthly expenses, given that share value is worth less.  Shareholders will likely be shocked at the increase in Outstanding Shares when the quarterly report is released in a few days (or maybe longer if an another extension is filed).   Remember, as the PPS falls, a larger number of shares needed to be sold to meet the fixed expenses.

Mr. Samblis’s back is likely against the wall.  He is caught between keeping the company afloat by selling more and more shares, thereby diluting the company into oblivion, or increasing the Authorized Shares (A/S) in order to be able to hold on a little while longer.  However he likely knows that increasing the A/S count at this point will be the death blow to the company.  There is always the Reverse Split (R/S) option as a last ditch attempt at attracting new investors that wouldn’t normally touch a stock selling in the tripple-zero’s, however he likely knows that a R/S would also be a death blow to the company.

What is a CEO to do ???

Well, one tried and true option would be to find a tactic to keep shareholders hanging on until he can perhaps make the VU Television Network thing generate some revenue.  Enter the pseudo-CEO messenger.   If Mr. Samblis can find someone he can convince to promote his business using pseudo-information fed to them on the condition they not release the details, that person will spread the word that something really big is happening, and shareholders should not only hang on, but buy more a these low prices.  Hopeful shareholders will likely latch on to anything because they want to have hope that they have not lost everything with their investment.  The CEO feeds the ego of the pseudo-CEO messenger by telling them he is confiding in them some secret information that will blow the lid off this stock… BUT… they can not release any details to the public.  ONLY the pseudo-CEO knows this information, therefore they feel special, and powerful, knowing they have information that no one else has.  The pseudo-CEO will say things like he has inside information that he can not release… but trust them… it’s the truth because they heard it straight from the CEO.  This is an extremely useful and effective tactic for CEO’s to use.  They plant the rumor, but then have deniability so they can not be held accountable for misleading investors.  Think about it… use your common sense… if the information being “secretly” spoon-fed to this person was valid… why would this information not be worthy of a press release.

Remember… Mr. Samblis needs buyers for the shares he needs to sell in order to meet his financial needs.  At these low prices, potential buyers need to be incentivized to not only buy more stock… but not sell the shares they hold because those sales would be competing against the company’s for the small pool of buyers.

We will see what the quarterly report holds in a few days.  Hopefully it will be less than a disaster !  The good news is… the PPS can’t fall like it has in the past when reports were released !  (not the good news you might have been looking for, right !)