Rich get Richer 2 - LFVN

Here are some random questions I've come up with while investigating this..

1. What is considered a reasonable number of options to have out against your company's common stock at 100M market cap with 70m shares outstanding?


2. "During the three and nine months ended March 31, 2011 we issued 1,193,725 and 11,646,825, respectively, shares of common stock as a result of conversions of convertible debentures."

How long of a period of time is three and nine months in this sentence? Are they just saying "over the past year"? Is this the standard way of listing a period of time? Why or why not.. ?


3. 'Between April 1, 2011 and May 12, 2011 warrants for 10,411,173 shares, and 1,198,825 in convertible debentures were exercised. This will result in a net issuance of 8,375,761 shares of common stock.'

Is there any way to determine what timeframe this issuance will take place over? Saying, "This will result.." is a forward looking statement; so as of the report, this hadn't happened yet correct?


4. "Common stock — par value $0.001 per share, 250,000,000 shares authorized and 73,677,540 and 61,494,849 issued and outstanding as of March 31, 2011 and June 30, 2010, respectively"

This is a quote from the unaudited 10-Q, on the Balance sheet under "Liabilities and stockholders' deficit". On the exchange, it is listed that they have 73.5m shares Outstanding. What is this 61,494,849 shares number? That couldn't possibly be the total number of options and warrants they currently have out against their stock is it?


5. "We incurred an aggregate of $1,138,660 in commissions and
expenses in connection with the 2009 private placement offerings,"
They incurred the above cost in connection with the sale of $4,995,000 in privately placed debt. Is this a normal amount of commission to place such an amount of debt?

Do they make chocolate teapots too?

I haven't listened to this but listening to conference calls usually gives a better idea about random unknown companies

Conference Call Information Investors interested in participating in the live call today can dial (877) 795-3613 from the U.S. International callers can dial (719) 325-4744. A telephone replay will be available approximately two hours after the call concludes and will be available through Tuesday, May 31, 2011, by dialing (877) 870-5176 from the U.S., or (858) 384-5517 from international locations, and entering confirmation code 6523612. There also will be a simultaneous, live webcast available on the Investor Relations section of the Company's web site at http://www.lifevantage.com/investor-profile.aspx. The webcast will be archived for 30 days.

Nice details,
so, executive summary: short this stock?

short all the stocks baby, buy a shotgun

On May 18 2011 16:57 Night2o1 wrote: Here are some random questions I've come up with while investigating this.. 1. What is considered a reasonable number of options to have out against your company's common stock at 100M market cap with 70m shares outstanding? 2. "During the three and nine months ended March 31, 2011 we issued 1,193,725 and 11,646,825, respectively, shares of common stock as a result of conversions of convertible debentures." How long of a period of time is three and nine months in this sentence? Are they just saying "over the past year"? Is this the standard way of listing a period of time? Why or why not.. ? 3. 'Between April 1, 2011 and May 12, 2011 warrants for 10,411,173 shares, and 1,198,825 in convertible debentures were exercised. This will result in a net issuance of 8,375,761 shares of common stock.' Is there any way to determine what timeframe this issuance will take place over? Saying, "This will result.." is a forward looking statement; so as of the report, this hadn't happened yet correct? 4. "Common stock — par value $0.001 per share, 250,000,000 shares authorized and 73,677,540 and 61,494,849 issued and outstanding as of March 31, 2011 and June 30, 2010, respectively" This is a quote from the unaudited 10-Q, on the Balance sheet under "Liabilities and stockholders' deficit". On the exchange, it is listed that they have 73.5m shares Outstanding. What is this 61,494,849 shares number? That couldn't possibly be the total number of options and warrants they currently have out against their stock is it? 5. "We incurred an aggregate of $1,138,660 in commissions and expenses in connection with the 2009 private placement offerings," They incurred the above cost in connection with the sale of $4,995,000 in privately placed debt. Is this a normal amount of commission to place such an amount of debt?

2. if today were march 31, 2011, then this means that in the past 3 months they issued 1,193,725 shares, and in the past 9 months they issued 11,646,825 shares as a result of conversions

4. .61,494,849 is the number of shares outstanding as of june 30, 2010. this sentence basically shows the increase in shares outstanding over those nine months (in the time frame from june 30, 2010 to march 31, 2011).

5. this depends on the size of the company, but $5m is quite a bit of debt for a company worth only $130m~ish.

#1 and #3 perhaps others could answer better. since this is trading at only $1.80 i would probably recommend staying away from it altogether (don't even short it). lots of share outstanding, constant dilution of shareholder value, no earnings but still issuing new debt... don't touch this company unless you have some read that they'll come out with a huge drug in the future.

Thanks a bunch for your reply TheMusiC, cleared up that 3 and 9 months thing especially haha.

This company is a steaming pile of shit with a very overvalued stock, definitely not putting any money in

I'm curious as to why you say "don't even short it" for a company that seems so awful and with a stockprice which will have to collapse to reality at some point in the future?

well even a shitty company that might collapse could be a good acquisition for a stronger drug company that just wants the company to be not a threat and to have the name brand which would make the stock go up. You can lose a lot when the stock going to 0 is a lot less likely than it doubling with news of an acquisition or some wonderdrug. It's good research though and you can follow the stock for a while and do some paper trading on it to see if your research was right. Remember how valuable a stock is has nothing to do with how good a company is, it has to do with what the big boys on wall street decide about a company. If there's no interest in a company by big buyers then it doesnt move. If everyone on wall street shorts the stock then it will die. If they buy it the price goes up. I think it's much more likely to stay stagnant or go up than die.

Im not very experienced on trading/investing so there's the disclaimer on that.

so the thing about this is that $1.80 is a pretty low trade price (you also didn't tell us what exchange it's traded on which would further help your decision-making -- this seems like quite a small company and the market for its shares might be illiquid) and the company doesn't look to be in very good shape, so i wouldn't want to touch this stock. you'd also want to look up press releases and analyst reports (and other recent news about the specific industry etc) pertaining to this company. there are different theories and such behind market efficiency and pricing, but i tend to believe that prices for the most part are all event-driven, which is why press releases and current events are so important when looking at equities to invest in -- they give you a general outlook on the company and industry, as well as rumors about things like management changes, possible mergers and takeovers, etc which will all affect share price. you can short it if you think the price will collapse a la citi, enron, etc but i think that's highly unlikely and if the stock will move significantly in any direction it will be up.

you're doing well in looking at the company's background and financial statements, but you need also to look at news surrounding the company and industry when you're making your decision as well. also, there's specific things you should keep an eye out for when you're looking at the financial statements as well (EBITDA and capital expenditures, for starters).

thanks, next time I make a post like this plz respond to it too ^^