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.