Why Is The Stock Price Dropping?

[MARK MONTGOMERY]

I will have to say, if it goes $12.00 and below, I believe I will buy more.

 

[bunchathrees]

I will have to say, if it goes $12.00 and below, I believe I will buy more.

You might just get your chance. @ 16.50 1PM EDT.

 

[Sailor Dog]

Maybe people should read this article about SeekingAlpha
It give a good picture about them
Reading that article, it reminded me of another site some like to believe.

Also should read Wikipedia-seeking alpha has been very well reviewed by forbes, wired, and Kiplinger. Article about Elio should be seriously considered, the ATVM loan is the only thing that we all know can save Elio. I wonder if the NHTSA classification risk plays into the loan decision?

 

[LillyMayPatterson #1685 & #5648]

What a great conversation ! Thanks. Got some questions. The stock that was offered to you and me till February First was only 1/8 of 'The Company' right?
We, 16 thousand investors bought $17 million dollars worth of stock. But, Elio could have sold $25 or was if $50 million but didn't. Can Elio sell the rest of the old offer and make more money without giving up any more control than that 1/8 of 'The Company'. When do you suppose Elio can / will sell the rest? What is outstanding 26,487,548 and what is float 1,410,038?

 

[RUCRAYZE]

"Do I feel lucky?"[/QUOTE]
thought the q was -do you feel lucky punk?
Liked him better when he talked to a chair

 

[Sailor Dog]

Also major multi-university study mentioned on Wikipedia showed the accuracy of seeking alphas crowd based predictions. I am sorry to unfairly criticize beforehand. Just hope seeking alpha isn't too right.

 

[bunchathrees]

What a great conversation ! Thanks. Got some questions. The stock that was offered to you and me till February First was only 1/8 of 'The Company' right?
We, 16 thousand investors bought $17 million dollars worth of stock. But, Elio could have sold $25 or was if $50 million but didn't. Can Elio sell the rest of the old offer and make more money without giving up any more control than that 1/8 of 'The Company'. When do you suppose Elio can / will sell the rest? What is outstanding 26,487,548 and what is float 1,410,038?

The Board of Directors authorized 100 million shares of common stock and 10 million shares of preferred stock. As of 2/17/2016, it doesn't appear that any preferred stock was issued. Of the 100M shares of common stock, there are 26,487,548 in existence (Reg A+ accounted for 1,410,048 of those). There is also outstanding convertible debt which could become another 3,768,760 shares in six years.

The float represents the number of shares available for trading. The majority of issued shares are not going to be traded for some amount of time (they likely have restrictions on when they can be released hence they are known as restricted stock). That 1,410,048 float number multiplied by $12 = $16,920,576 (essentially $17 million) - the Reg A+ proceeds.

The Reg A+ offering is closed. Elio could open another offering or the Board could authorize more convertible debt - both of which would dilute the value of released shares. As I've opined in other places on this forum, the intrinsic value of the stock is going to deteriorate before it appreciates. Whether that deterioration comes in the form of the ATVM loan, more shares offered for sale, or more restricted stock issued, it will come.

The bottom line is that the Reg A+ share holders own about 1/19th of the stock - unless I miscalculated.

 

[slinches]

Why would the ATVM loan hurt the value of the stock? The whole point is that the return on value of that debt is greater than interest on the loan. I think it should actually greatly improve the value of the stock since it would fully fund production and bridge the gap until the revenue from sales can support the company. That one action would be the biggest possible step toward ensuring the success of EM.

 

[Coss]

Also should read Wikipedia-seeking alpha has been very well reviewed by forbes, wired, and Kiplinger. Article about Elio should be seriously considered, the ATVM loan is the only thing that we all know can save Elio. I wonder if the NHTSA classification risk plays into the loan decision?

The ATVM isn't the only way; there are others.

Besides the A+ offering, there is also another stock for investors that they were selling long before the A+ Seems that most people have forgotten about that one.

 

[bunchathrees]

Why would the ATVM loan hurt the value of the stock? The whole point is that the return on value of that debt is greater than interest on the loan. I think it should actually greatly improve the value of the stock since it would fully fund production and bridge the gap until the revenue from sales can support the company. That one action would be the biggest possible step toward ensuring the success of EM.

Debt has a negative effect on the enterprise value. Granted, if management uses the debt effectively - oh, say, maybe by efficiently bringing a product to market, then it will end up having a net positive effect. Just securing the financing is only one step in the process.