Gimme Some COIN! Or Not....

Discussion in 'Stocks' started by stonedinvestor, Feb 13, 2008.

  1. I like this stock it's fertilizer which may be played out now- check this nicely detailed piece by stockmaster Cheshier whoever he is... the damn chart looks fine though- perfect time to buy-

    Converted Organics Inc. (COIN) is a development-stage business seeking to use organic food waste as raw material to produce all-natural soil products combining both disease suppression and nutrition characteristics. The Company's process, which has been demonstrated in a pilot manufacturing facility, uses heat and bacteria to transform food waste into a high-value natural fertilizer.

    The Company's initial facility is located in northern New Jersey, providing access for the delivery of feedstock from throughout this geographic area. The facility is within a special recycling zone and has been approved for inclusion in the Middlesex County New Jersey Solid Waste Management Plan.

    Converted Organics recently hit the big-time, running from $2.25 a share all the way up to $14.14 a share in the last 52 weeks, before settling at just below $10 now. So why have shares gone up 300% in the last year you ask? There is good reason: COIN Logo

    According to their last webcast, in the second quarter of 2008 their Woodbridge facility will be converting organic food waste to their all-natural fertilizer at the rate of 250 tons a day. That will bring in approximately $52,500 in revenue per day. There are 90 days in a quarter so they will have $4,725,000 in revenue per quarter. 40% covers cost of conversion so that leaves them with $2,835,000 in operating profit. Subtract an estimate of $1 Million in Selling and Administration expenses and that leaves $1.8 MM profit per quarter. With 4.23 million shares that means $.40 in earnings per quarter. And that's with one plant at half capacity. The plant at full capacity will convert 500 tons per day which means $.80 EPS per quarter OR $3.20 Per Year.

    That sounds really good right? Well… almost too good in my opinion. After years of reading prospectuses, quarterly earnings reports, and press releases, I’ve become a bit skeptical. Especially from a company that hasn’t made a dime – literally. Don’t take my word for it, check out their financials:

    Then there’s the “Dividend”. Every Quarter, COIN pays out a quarterly common stock dividend of one (1) share of common stock for each twenty (20) shares of common stock outstanding, payable to all holders of record of the common stock.

    I have to admit, I like the idea. Especially at current price levels.
    The problem is that the number of outstanding shares will increase from 4.23 million to 5.14 million in the next year, which means the numbers I mentioned before are completely skewed. As they continue their dividend, further dilution will occur.

    Kind of sounds like a pyramid scheme, doesn’t it?
    Pyramid Scheme
    Something about this company turns a siren on in my head. But I could be wrong – anything Organic is popular these days, and maybe they can beat the odds and compete against large, established fertilizer companies that actually have revenue.

    You be the judge on this one.
  2. Well I've risen to the point where I can move markets- My reveal of the SEC info here has been picked up and circulated and she's a diving...
    Shares to be issued at $5.50 for a $10.00 stock, surprised this isn't getting more debate bvy the jaded ET regulars. ~ stoney

    After Hours: 9.91 0.84 (7.81%) as of 4:54PM ET on 02/13/08
    Last Trade: 10.75
    Trade Time: 4:00PM ET
    Change: 0.79 (7.93%)

    Don't know what to do now. ~ stoney
  3. with no sarcasm intended. congrats man. u really did a good job.:cool:
  4. That's not the vacuum company is it?

    The government filing link has it>


    Title of Each Class of Amount to be Offering Price Aggregate Amount of
    Securities to be Registered Registered 421,307 per Security(1) Offering Price $5.50

    Common stock, $0.0001 par value

    It's a tough form fit from the download but check out the sec filing above. ~ stoney
  5. OH MY GOD $9.50 in the after market now...

    $10.75 close. What hell hath I wrought? Cascading now over 11%. I know a chart reader who is going to be very mad at me just mailed out a newsletter with a buy recommendation, gave me the name today... hummmm. I better lay low for a while. ~ stoney
  6. I shorted more!!!
  7. gaj


    nothing to do with you, they have 750k worth of shares which will be sold...

  8. ???? Who the heck waits until the illiquid after market to try and move $750 grand's worth of stock!! Unless they read something they didn't like on Elite Trader. Now I have already applied for an 10Q Investigative Blogie Award and I won't have you raining on my parade. Not only that if I can prompt management to step forward and explain why just a few days ago they registered these shares knowing full well who ever received them would be getting an instant 100% gain on them.... the stock will rally back and we will perhaps make some interday $'s with it... this pyramid scheme of offering more shares to holders on a constant basis is the first I've ever heard of this in a long career.... It feels like Bodesin Biotech all over again or Force Protection... I have to ask myself why am I in these type of stocks and how the heck have I made money off each one? Speaking of which TASR reported today, not bad... eesh... I tried to walk away, but every time I do.... they pulled me back in! ..... like the mafia.... STOCK MAFIA @
    just came up with that- hands off everyone I may want to copyright it.... all eyes on the COIN today....
    #10     Feb 14, 2008