Saturday, July 25, 2009
Thursday, July 9, 2009
On July 9, 2009, Camelot Entertainment Group, Inc. ("Camelot") issued a press release announcing that in connection with the effective date of July 10, 2009 for the 700:1 reverse of the company’s common stock, Camelot has received a new trading symbol “CMGR” from OTC Corporate Actions FINRA Operations. A copy of Camelot’s press release is attached below.
In addition, Camelot has established a new series of preferred stock known as “Class D Convertible Preferred Stock”. All stockholders of record as of July 9, 2009 shall be eligible to receive as a cashless dividend the Class D Convertible Preferred Stock. Stockholders shall be eligible to receive 40 shares of the Class D Convertible Preferred Stock for each one million shares of common stock owned as of the close of trading on July 9, 2009. Holders of Class D Convertible Preferred Stock shall have the right, once the Common Stock achieves a 30 day average closing bid price of $2.50 per share as determined by the Over The Counter Bulletin Board (“OTCBB”) historical daily stock price quote, to convert any or all of their Class D Convertible Preferred Stock into 1 share of fully paid and nonassessable shares of Common Stock for each share of Class D Convertible Preferred Stock held. In addition, holders of Class D Convertible Preferred Stock will have the right to convert, as described in the designation, upon an initial or secondary public offering of the Common Stock by the Corporation where the offering price is $2.50 or greater. Camelot shall begin the process of registering these shares for distribution to its common stockholders subsequent to the effective date of the reverse.
Press Release:
Camelot Receives New Trading Symbol CMGR
Camelot Implements 700 to 1 Reverse; Creates New Series of Preferred Stock for Common Stockholders
IRVINE, CA, July 9, 2009 — Camelot Entertainment Group, Inc. (OTC BB: CMLT) (“Camelot”) announced today that effective July 10, 2009, Camelot has a new trading symbol “CMGR”. The Company has implemented a 700:1 reverse of the company’s common stock.
In addition, Camelot has established a new series of Class D Convertible Preferred Stock. All stockholders of record as of July 9, 2009 shall be eligible to receive the preferred stock as a cashless dividend. Stockholders are expected to receive 40 shares of the preferred stock for each one million shares of common stock owned as of the close of trading on July 9, 2009. Further information can be found in the Company’s 8K filing.
In addition, Camelot has established a new series of preferred stock known as “Class D Convertible Preferred Stock”. All stockholders of record as of July 9, 2009 shall be eligible to receive as a cashless dividend the Class D Convertible Preferred Stock. Stockholders shall be eligible to receive 40 shares of the Class D Convertible Preferred Stock for each one million shares of common stock owned as of the close of trading on July 9, 2009. Holders of Class D Convertible Preferred Stock shall have the right, once the Common Stock achieves a 30 day average closing bid price of $2.50 per share as determined by the Over The Counter Bulletin Board (“OTCBB”) historical daily stock price quote, to convert any or all of their Class D Convertible Preferred Stock into 1 share of fully paid and nonassessable shares of Common Stock for each share of Class D Convertible Preferred Stock held. In addition, holders of Class D Convertible Preferred Stock will have the right to convert, as described in the designation, upon an initial or secondary public offering of the Common Stock by the Corporation where the offering price is $2.50 or greater. Camelot shall begin the process of registering these shares for distribution to its common stockholders subsequent to the effective date of the reverse.
Press Release:
Camelot Receives New Trading Symbol CMGR
Camelot Implements 700 to 1 Reverse; Creates New Series of Preferred Stock for Common Stockholders
IRVINE, CA, July 9, 2009 — Camelot Entertainment Group, Inc. (OTC BB: CMLT) (“Camelot”) announced today that effective July 10, 2009, Camelot has a new trading symbol “CMGR”. The Company has implemented a 700:1 reverse of the company’s common stock.
In addition, Camelot has established a new series of Class D Convertible Preferred Stock. All stockholders of record as of July 9, 2009 shall be eligible to receive the preferred stock as a cashless dividend. Stockholders are expected to receive 40 shares of the preferred stock for each one million shares of common stock owned as of the close of trading on July 9, 2009. Further information can be found in the Company’s 8K filing.
Friday, June 19, 2009
Latest update on Camelot activities...
We have remained very busy since returning from Cannes in late May. We have been in the process of wrapping up our updated business plan which will be part of our registration statements. We have been working on our three main company acquisitions as we work through ongoing changes in the marketplace. We hope to have something solid to report on those soon.
We have also been working on all of our slates, individual productions and those projects in development. We are working on upcoming re-shoots on our urban division's documentary and are undergoing rewrites on two films that are in pre-production. We are also working on several acquisitions in our distribution division in order to generate some initial long awaited revenues. As with the corporate updates, we should have something to release on these items soon.
As part of our upcoming registration statements, we have been working on putting together our advisory board in addition to adding members to our board of directors.
In our studio group, we have been working on our next location. We expect to make a formal announcement during the summer.
On the production services group side, we expect to be able to release news concurrent with the filing of the registration statements.
As you are aware, we recently increased the authorization of our stock in order to meet contractual requirements and to facilitate anticipated issuance's. We have enlisted the aide of several small public company experts and along with our counsel we are working on what next steps to take in reference to the stock. We should have more news on this in the near future.
To assist in communicating with our stockholders, we are retaining the services of an entity to assist us in blogging, twittering and other stockholder communication activities in addition to the traditional press releases and regulatory filings. We continue to work on the web site as well. By bringing in additional help, we hopefully will be able to meet our expectations of regular communication with our stockholders.
We would continue to encourage our stockholders to read our annual and quarterly reports. We would also remind everyone that what we are working on is a long and tedious process and carries with it a great deal of risk. If we can be successful, the results will speak for themselves. But there are no guarantees.
We receive many calls and emails asking what we think the stock will do. Obviously, we cannot, nor can anyone else, predict the future. Stocks, especially those that trade on the bulletin board and the pink sheets, are extremely risky regardless of how strong or weak a particular company is. While we have been and remain optimistic about our future, we can only continue to work hard and do whatever we can to achieve our goals.
There are many who believe we are poised for great things. There are also many who believe there is no hope. We'll leave all that posturing to the pundits and others who love us when the stock goes up, and hate us when the stock goes down. I can assure everyone that those of us who are putting everything we have into this company absolutely believe in what we are doing. We know we are at the right place and at the right time to accomplish our goals. We are faced with many difficult and hard decisions on a daily basis, whether it be the stock, operations or which productions to embark on.
Many of our stockholders and others, both identified and anonymous, have opinions, both positive and negative. We appreciate their comments, even if in many cases they are misinformed, misguided, misled or deliberately negative in nature. For those that have the decency to send us emails directly or call and identify themselves, rather than hide behind anonymous postings, we do what we can to respond directly to your inquiries and questions. We have received many great ideas and suggestions. Thanks again for your input.
Please remember that our main focus is on our business. When we take time away from the business to answer bogus phone calls, emails and postings, that is time that could be better spent on the business, which will benefit us all. For the legitimate calls, emails and postings, again we will do our best to respond as time permits.
Going forward, our new investment relations entities will be keeping up to date the blogs, twitter, facebook and other stockholder communication devices. We will have management contribute when time permits. We appreciate everyone's continued interest in Camelot.
We have remained very busy since returning from Cannes in late May. We have been in the process of wrapping up our updated business plan which will be part of our registration statements. We have been working on our three main company acquisitions as we work through ongoing changes in the marketplace. We hope to have something solid to report on those soon.
We have also been working on all of our slates, individual productions and those projects in development. We are working on upcoming re-shoots on our urban division's documentary and are undergoing rewrites on two films that are in pre-production. We are also working on several acquisitions in our distribution division in order to generate some initial long awaited revenues. As with the corporate updates, we should have something to release on these items soon.
As part of our upcoming registration statements, we have been working on putting together our advisory board in addition to adding members to our board of directors.
In our studio group, we have been working on our next location. We expect to make a formal announcement during the summer.
On the production services group side, we expect to be able to release news concurrent with the filing of the registration statements.
As you are aware, we recently increased the authorization of our stock in order to meet contractual requirements and to facilitate anticipated issuance's. We have enlisted the aide of several small public company experts and along with our counsel we are working on what next steps to take in reference to the stock. We should have more news on this in the near future.
To assist in communicating with our stockholders, we are retaining the services of an entity to assist us in blogging, twittering and other stockholder communication activities in addition to the traditional press releases and regulatory filings. We continue to work on the web site as well. By bringing in additional help, we hopefully will be able to meet our expectations of regular communication with our stockholders.
We would continue to encourage our stockholders to read our annual and quarterly reports. We would also remind everyone that what we are working on is a long and tedious process and carries with it a great deal of risk. If we can be successful, the results will speak for themselves. But there are no guarantees.
We receive many calls and emails asking what we think the stock will do. Obviously, we cannot, nor can anyone else, predict the future. Stocks, especially those that trade on the bulletin board and the pink sheets, are extremely risky regardless of how strong or weak a particular company is. While we have been and remain optimistic about our future, we can only continue to work hard and do whatever we can to achieve our goals.
There are many who believe we are poised for great things. There are also many who believe there is no hope. We'll leave all that posturing to the pundits and others who love us when the stock goes up, and hate us when the stock goes down. I can assure everyone that those of us who are putting everything we have into this company absolutely believe in what we are doing. We know we are at the right place and at the right time to accomplish our goals. We are faced with many difficult and hard decisions on a daily basis, whether it be the stock, operations or which productions to embark on.
Many of our stockholders and others, both identified and anonymous, have opinions, both positive and negative. We appreciate their comments, even if in many cases they are misinformed, misguided, misled or deliberately negative in nature. For those that have the decency to send us emails directly or call and identify themselves, rather than hide behind anonymous postings, we do what we can to respond directly to your inquiries and questions. We have received many great ideas and suggestions. Thanks again for your input.
Please remember that our main focus is on our business. When we take time away from the business to answer bogus phone calls, emails and postings, that is time that could be better spent on the business, which will benefit us all. For the legitimate calls, emails and postings, again we will do our best to respond as time permits.
Going forward, our new investment relations entities will be keeping up to date the blogs, twitter, facebook and other stockholder communication devices. We will have management contribute when time permits. We appreciate everyone's continued interest in Camelot.
Tuesday, May 26, 2009
Finally back from Cannes and London. We ran into some technical difficulties which precluded us from sending any further updates while we were travelling.
This was our most productive Cannes in a number of years. While the market was slow with very few deals announced at Cannes, we were very busy. The biggest news from Cannes overall may well be that independent domestic films now must realize most of their revenue from domestic sales, rather than from international sales as had been the case previously.
Buyers are looking for quality and attractive elements that will help them sell a particular title in their territory, and most of the product available did not deliver the quality or the required elements, which include at least some recognizable cast members. Even those titles that were selling, and they were few and far between, were commanding far less sales figures than in previous years in what was truly a buyers market.
As a result, budgets have to be very low, or high enough to attract major talent. Those films that are produced in the middle ranges can find it difficult, if not impossible, to garner any sales. This continues to cause consolidation at both ends of the market, and while there may be a lot of titles still waiting to be sold, the demand for new content that meets the buyers requirements continues to rise, and this creates significant opportunity for companies like Camelot that are positioned to produce and deliver that content.
During Cannes, we met with buyers, distributors, financial entities and filmmakers from around the world. We had very productive co-production meetings with a number of countries where we plan to produce some of our slates. We have enlisted expert assistance from various territories who will be guiding us as we work through the various complex packaging, production, distribution and deliverable requirements that will allow us to commence production. While here in the US we continue to embrace the digital revolution, most foreign territories are moving a lot slower, making it more imperative than ever to fully understand what they need and how they want it delivered.
We have decided, based upon the result of our meetings in Cannes and London, to set up our first international production hub in the UK. We have begun the process of determining who will head up our operations in the UK. The UK has an established production infrastructure in place, which will allow us to move rapidly on our first European production slate.
Here in the US, we are continuing to move forward with plans for our first domestic production slate under Camelot Films. This slate is in addition to previously discussed features being produced under Camelot Features. We hope to be ready to announce where the slate will be produced following upcoming meetings with various states.
The process of identifying and securing intellectual properties continues. We had several meetings in Cannes with filmmakers which we hope will result in our being able to acquire several more projects this year. We also have identified several potential acquisitions of completed films and will be working with their respective sales agents going forward.
On the financing front, we are preparing our S-1 registration statement in anticipation of securing the funding necessary to complete our initial slates here in the US and in the UK. Along with our attorneys, accountants, auditors and advisers, we are looking at solutions to the current stock price issue and what structure will work best as we move forward. We are reviewing all suggestions that have been made and continue to be made as we continue to move forward in implementing our business model.
In both Cannes and London we had extensive meetings with two companies that we are currently negotiating to acquire. As a result of these meetings, we anticipate being able to make formal announcements in the near future. We will be meeting with our investment banking team in early June and hopefully we will come away from those meetings with deal structures that will work for both sides.
This was our most productive Cannes in a number of years. While the market was slow with very few deals announced at Cannes, we were very busy. The biggest news from Cannes overall may well be that independent domestic films now must realize most of their revenue from domestic sales, rather than from international sales as had been the case previously.
Buyers are looking for quality and attractive elements that will help them sell a particular title in their territory, and most of the product available did not deliver the quality or the required elements, which include at least some recognizable cast members. Even those titles that were selling, and they were few and far between, were commanding far less sales figures than in previous years in what was truly a buyers market.
As a result, budgets have to be very low, or high enough to attract major talent. Those films that are produced in the middle ranges can find it difficult, if not impossible, to garner any sales. This continues to cause consolidation at both ends of the market, and while there may be a lot of titles still waiting to be sold, the demand for new content that meets the buyers requirements continues to rise, and this creates significant opportunity for companies like Camelot that are positioned to produce and deliver that content.
During Cannes, we met with buyers, distributors, financial entities and filmmakers from around the world. We had very productive co-production meetings with a number of countries where we plan to produce some of our slates. We have enlisted expert assistance from various territories who will be guiding us as we work through the various complex packaging, production, distribution and deliverable requirements that will allow us to commence production. While here in the US we continue to embrace the digital revolution, most foreign territories are moving a lot slower, making it more imperative than ever to fully understand what they need and how they want it delivered.
We have decided, based upon the result of our meetings in Cannes and London, to set up our first international production hub in the UK. We have begun the process of determining who will head up our operations in the UK. The UK has an established production infrastructure in place, which will allow us to move rapidly on our first European production slate.
Here in the US, we are continuing to move forward with plans for our first domestic production slate under Camelot Films. This slate is in addition to previously discussed features being produced under Camelot Features. We hope to be ready to announce where the slate will be produced following upcoming meetings with various states.
The process of identifying and securing intellectual properties continues. We had several meetings in Cannes with filmmakers which we hope will result in our being able to acquire several more projects this year. We also have identified several potential acquisitions of completed films and will be working with their respective sales agents going forward.
On the financing front, we are preparing our S-1 registration statement in anticipation of securing the funding necessary to complete our initial slates here in the US and in the UK. Along with our attorneys, accountants, auditors and advisers, we are looking at solutions to the current stock price issue and what structure will work best as we move forward. We are reviewing all suggestions that have been made and continue to be made as we continue to move forward in implementing our business model.
In both Cannes and London we had extensive meetings with two companies that we are currently negotiating to acquire. As a result of these meetings, we anticipate being able to make formal announcements in the near future. We will be meeting with our investment banking team in early June and hopefully we will come away from those meetings with deal structures that will work for both sides.
Friday, May 15, 2009
News from Cannes. Following the stockholders meeting on Wednesday and later meetings with our auditors, attorneys and key advisors, it was off to Cannes and the film market. After arriving late Thursday, Friday was filled with meetings with filmmakers, international buyers and distributors.
The typical day here begins at 6 am and ends around midnight. With the world film business convening here in Cannes, there are more meetings and screenings of potential product acquisitions than there are hours in the day. The public hears about the festival and the stars, the red carpets and the parties. Behind all of that is the film market, and that is where the business of film takes place. Films are bought and sold, deals are made for future productions and the groundwork is laid for future deals as relationships are made and old acquaintances get caught up.
So far, this year's market is slower than recent years, due in part to the world economic issues and also due to a lack of quality product that the buyers are looking for to fill their release schedules. There are a lot of films available, but most are not up to the quality level that the markets now demand.
With the dvd market maturing and direct to consumer still finding its way, and with the high cost of releasing and distributing product, the need is greater than ever for commercial, high quality product with recognizable talent. It's not so much a function of budget as it is having a good script and getting the most for one's money up on the screen. So the paradox is on one hand you have a glut of product on the market, while on the other hand you have an ever increasing demand for more product that the buyers want and need in order to fill out their release schedules for theatrical, television, dvd, vod and all the other ancillary markets.
With the number of films being released by the major studios being cut back, and with many of the mid-sized companies being acquired or leaving the business all together, the marketplace appears to be reshaping itself into two distinctive segments. On the high end, large budget tentpole pictures with major stars and high concept commercial appeal, while on the low end, horror, action and thrillers that are well made and have some recognizable talent continue to do well. The middle of the road pictures, budgets north of a million up to ten to fifteen million, are in serious peril. Of course, there are exceptions to any rule, but for the most part the first full day here at Cannes has fairly well confirmed this.Dramas without a big name cast, comedies, and romantic comedies are having a tough time at any budget. Movies such as those made by Tyler Perry and others do extremely well in the states, but virtually have no marketability outside of North America.
For Camelot, all of this provides us with a great opportunity to meet the market demand for commercial, high quality films that can be made at a reasonable cost so those that invest in the films have the ability to realize a profit. It also provides us with the opportunity to acquire product and companies that have the same philosophy as we do. To accomplish our goals, we have to remained focused and realize that this is not a sprint, it is a marathon.
Tomorrow we will provide an update on the results of our first two days of meetings here in Cannes.
The typical day here begins at 6 am and ends around midnight. With the world film business convening here in Cannes, there are more meetings and screenings of potential product acquisitions than there are hours in the day. The public hears about the festival and the stars, the red carpets and the parties. Behind all of that is the film market, and that is where the business of film takes place. Films are bought and sold, deals are made for future productions and the groundwork is laid for future deals as relationships are made and old acquaintances get caught up.
So far, this year's market is slower than recent years, due in part to the world economic issues and also due to a lack of quality product that the buyers are looking for to fill their release schedules. There are a lot of films available, but most are not up to the quality level that the markets now demand.
With the dvd market maturing and direct to consumer still finding its way, and with the high cost of releasing and distributing product, the need is greater than ever for commercial, high quality product with recognizable talent. It's not so much a function of budget as it is having a good script and getting the most for one's money up on the screen. So the paradox is on one hand you have a glut of product on the market, while on the other hand you have an ever increasing demand for more product that the buyers want and need in order to fill out their release schedules for theatrical, television, dvd, vod and all the other ancillary markets.
With the number of films being released by the major studios being cut back, and with many of the mid-sized companies being acquired or leaving the business all together, the marketplace appears to be reshaping itself into two distinctive segments. On the high end, large budget tentpole pictures with major stars and high concept commercial appeal, while on the low end, horror, action and thrillers that are well made and have some recognizable talent continue to do well. The middle of the road pictures, budgets north of a million up to ten to fifteen million, are in serious peril. Of course, there are exceptions to any rule, but for the most part the first full day here at Cannes has fairly well confirmed this.Dramas without a big name cast, comedies, and romantic comedies are having a tough time at any budget. Movies such as those made by Tyler Perry and others do extremely well in the states, but virtually have no marketability outside of North America.
For Camelot, all of this provides us with a great opportunity to meet the market demand for commercial, high quality films that can be made at a reasonable cost so those that invest in the films have the ability to realize a profit. It also provides us with the opportunity to acquire product and companies that have the same philosophy as we do. To accomplish our goals, we have to remained focused and realize that this is not a sprint, it is a marathon.
Tomorrow we will provide an update on the results of our first two days of meetings here in Cannes.
Tuesday, May 12, 2009
Saturday, May 9, 2009
These are some of the items to be discussed during the question and answer segment of the stockholders meeting on May 13th. We encourage all stockholders to attend. If there is a topic or specific question not included on this list, please email bob@camelotfilms.com and we'll make sure to include the topic or specific question.
Stock Issuance's
Large Number of Outstanding Shares
Trading Activity
Market Makers
Reverse Stock Splits
Stock Price
Stock Buy Back Programs
Bonds, Preferred Stock
Registration Requirements
IPO's
Secondary Offering
Convertible Notes
Funding
Press Releases
Management
Anonymous Postings on Blogs, Chat Rooms
Discussions on Blogs, Twitter, Facebook
Fair Disclosure
Current Projects
Future Projects
Generating Revenues
Stock Issuance's
Large Number of Outstanding Shares
Trading Activity
Market Makers
Reverse Stock Splits
Stock Price
Stock Buy Back Programs
Bonds, Preferred Stock
Registration Requirements
IPO's
Secondary Offering
Convertible Notes
Funding
Press Releases
Management
Anonymous Postings on Blogs, Chat Rooms
Discussions on Blogs, Twitter, Facebook
Fair Disclosure
Current Projects
Future Projects
Generating Revenues
Shares do not trade for free. For example, some stock reporting services do not show any price below .001. So if a trade is executed at .0005, it might show up as .oo on the reporting service. Bid and ask quotations are not quoted below .0001. Shares are not issued for free. Shares do not trade for free.
Please remember to RSVP for the stockholders meeting if you plan to attend. Please email bob@camelotfilms.com. The meeting is this Wednesday, May 13th, 2009 at 8001 Irvine Center Drive, Suite 400, Irvine, CA 92618. The meeting will take place in the main conference room just off the main lobby beginning at 1 p.m. We expect to have call in information for those who cannot attend available on Monday, May 11th.
Wednesday, May 6, 2009
During the past few days, we have received calls and emails about what steps the company may or may not be taking in reference to the stock price issue. Please remember that we do not have any direct control over what the stock price is. We can take steps that may give the market comfort that we are headed in the right direction. We can keep everyone informed. But as we have discussed, there are many factors that affect a stock price, many of which are out of our control or influence.
First, these issues will be discussed in detail at the stockholders meeting. That is the appropriate forum at this time. We will address some of these issues briefly below.
Second, the company, its attorneys, its accountants and its advisers have been looking for a solution to the stock price issue for a long time.
At the top of the list is making sure the business works and we begin to generate revenues. As we have stated previously, the implementation of our business plan is a long term process.
Over time we have examined and continue to examine various methods to address this critical issue, including stock buy back programs, preferred stock plans, bonds (including "junk bonds"), promotional programs, stock incentive plans, acquisitions, restructurings, reverse stock splits, forward stock splits, buying programs, several financing possibilities, including structured financing agreements, and others. There are good and bad elements to each of them. Some require registration statements. Others require the infusion of outside capital. Some, like a reverse, may seem like the simple solution, but there are many things to consider, including the effect on our current stockholders. We have continued to resist doing a reverse. We have been looking into a bond type program that would result in a stock buy back since last year. Any program like that would require a registration statement. Any registration statement being considered must be prepared and looked at very carefully. Filing these statements are time consuming and expensive. We are currently preparing an S-1 registration statement in connection with a funding transaction. We hope to have a concrete plan in place as a result of this registration process in time to discuss in detail at the stockholders meeting on May 13th.
We are open to any ideas. if someone has a suggestion, please let us know. We will do our best to respond to all of the inquiry subjects at the stockholder meeting. All questions we receive will be part of the items discussed.
Remember, we are a small company with limited resources. The film business is a risky business. Investing in stocks, especially those as volatile as stocks that trade on the pink sheets and or the bulletin board, is also very risky. There are no guarantees. These stocks have to be watched very closely.
First, these issues will be discussed in detail at the stockholders meeting. That is the appropriate forum at this time. We will address some of these issues briefly below.
Second, the company, its attorneys, its accountants and its advisers have been looking for a solution to the stock price issue for a long time.
At the top of the list is making sure the business works and we begin to generate revenues. As we have stated previously, the implementation of our business plan is a long term process.
Over time we have examined and continue to examine various methods to address this critical issue, including stock buy back programs, preferred stock plans, bonds (including "junk bonds"), promotional programs, stock incentive plans, acquisitions, restructurings, reverse stock splits, forward stock splits, buying programs, several financing possibilities, including structured financing agreements, and others. There are good and bad elements to each of them. Some require registration statements. Others require the infusion of outside capital. Some, like a reverse, may seem like the simple solution, but there are many things to consider, including the effect on our current stockholders. We have continued to resist doing a reverse. We have been looking into a bond type program that would result in a stock buy back since last year. Any program like that would require a registration statement. Any registration statement being considered must be prepared and looked at very carefully. Filing these statements are time consuming and expensive. We are currently preparing an S-1 registration statement in connection with a funding transaction. We hope to have a concrete plan in place as a result of this registration process in time to discuss in detail at the stockholders meeting on May 13th.
We are open to any ideas. if someone has a suggestion, please let us know. We will do our best to respond to all of the inquiry subjects at the stockholder meeting. All questions we receive will be part of the items discussed.
Remember, we are a small company with limited resources. The film business is a risky business. Investing in stocks, especially those as volatile as stocks that trade on the pink sheets and or the bulletin board, is also very risky. There are no guarantees. These stocks have to be watched very closely.
We will check the links. We receive submissions on a daily basis. Please send directly to bob@camelotfilms.com. Please also note that we receive hundreds of scripts, treatments and story ideas both via email and by mail every month. As a result, it may take some time to receive a reply. I would recommend that if you have not heard back from us after two to three weeks following submission that you send a follow up email.
Please note that we have issued press releases and have posted our new address and phone numbers on several occasions.
Our address is 8001 Irvine Center Drive Suite 400 Irvine CA 92618. Our phone number is 949 754 3030. We have information available on our blog, facebook and twitter sites.
We have been attempting to update the web site to reflect the new information, but have been unable to do so thus far. We are working on the problem. According to the web hosting company, apparently there is an embedded technical issue that continues to block any updates that are made. We apologize for any inconvenience this may have caused anyone trying to reach us.
Our address is 8001 Irvine Center Drive Suite 400 Irvine CA 92618. Our phone number is 949 754 3030. We have information available on our blog, facebook and twitter sites.
We have been attempting to update the web site to reflect the new information, but have been unable to do so thus far. We are working on the problem. According to the web hosting company, apparently there is an embedded technical issue that continues to block any updates that are made. We apologize for any inconvenience this may have caused anyone trying to reach us.
Monday, May 4, 2009
Please RSVP for stockholders meeting to bob@camelotfilms.com. Meeting to be held Wednesday, May 13th, 1 p.m. at 8001 Irvine Center Drive, Suite 400, Irvine, CA 92618. In addition to voting matters, we will be answering questions and presenting updates on Camelot. This is your chance to find out what's going on and what's ahead for Camelot. Please remember that you must be a stockholder to attend and vote at the meeting.
Here are some recent questions we received and the responses. We are attempting to answer all questions the best that we can. If we make an error in response, we will correct any error as soon as we notice it. The goal of providing these questions and answers is to keep the information flowing between the company and our stockholders in an informal setting. Please be sure to reference our filings at our web site http://www.camelotfilms.com/ for more detailed information.
Question:
Stock bashing.....It seems there are a LOT of persons all over the Internet which are putting in loads of time & energy merely to "bash" either Camelot's stock or the Camelot organization or yourself (Robert Atwell). At first, I attributed this to one of two things a) people who bought the stock in the period of October through January only to see their investment diminish by at least 80 or 90 percent, or b) people who bought the stock in the past 6-8 weeks @ .0001 hoping to quickly "flip" the stock @ .0002 for a 100% profit, only they could not & are angry. But then I came across an article that shed some light upon a possible third explanation for all the negative behavior. It's a bit long, so I'll post for you the most pertinent part of the article here:
".....What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on. ....."
http://newcmkx.proboards.com/index.cgi?board=Answers&action=print&thread=5893
Tell me, do you feel there is currently a paid effort underway to "trash" Camelot's stock? BTW, when I created an account @ "ihub" (that's "investorshub.com") specifically to quell all the Camelot bashing with the above link & pertinent paragraph, the information was promptly deleted from the site......TWICE!!! I'm doing my best to defend Camelot and its stock, but the longer I have to, the more difficult it's becoming as more & more persons are apparently jumping on board the "basher wagon".
Response:
It is possible that this has occurred. When it comes to money, anything is possible. Naked shorting, or any shorting at these low prices would be ill advised, as it would not take that much buying to push the market up. The market is way too volatile. It’s very hard, expensive and time consuming to try to track down certain bashers.
They hide under anonymous names and emails. It’s a shame that they can’t or won’t use their time and energy for fair and realistic posts. Unless they are shorting (as there are no option trading on these types of stocks) what good does it do a stockholder to “bash” a stock that will only hurt the stock value? Maybe it’s a game for them. Maybe, in some cases, they have their own agenda, whether it’s being paid to bash or it could be simply that they thrive on bashing a particular stock, and once that is not fun anymore, they move on to another stock to bash.
There is also the herd mentality that comes into play. When a stock starts to move up, the herd jumps in and follows, regardless of whether the increase is justified or not. Same thing on decreases. Bandwagons go in both directions, up and down. Sometimes it only takes one basher (paid or not) to get the ball rolling, and others follow along. We would also point out that our stock was trading at these low levels with a lot less shares in the float.
It is troubling that some positive posts were taken off the board while the negative ones remain. We’ll have our attorneys check into that. Also, if someone is being paid to bash a stock, according to our attorneys they would be violating securities laws just the same as some promoters do. It works both ways. If you are being paid to discuss a stock, good or bad, it has to be disclosed.
What really causes irritation is that none of these “investors” have invested a dime directly in the company. They have bought stock in the open market from a seller and the money they paid went to that seller and the brokers making commissions. We have invested millions into the business, not to mention all the time, etc. Then you have someone who bought $500 worth of stock from the market attacking the company and the management with personal attacks, making all kinds of accusations that are totally false and unfounded, and why? So their stock will become worthless? What’s the point? If tomorrow the stock went way up and they made a nice profit, would they still be stating the same things? We value every stockholder, regardless of the amount of shares they may have. We appreciate all of their comments both good and bad. Some comments are just difficult to ascertain as to why they are being made when all the comment does is weaken their respective position.
Somehow many believe that the company has some sort of control over the price of the stock. The control is in the hands of the stockholders and market makers. The company can only report what is going on, file the reports and do what it can to make the business successful. Prior to the Internet boom, it was common for a business to take at least five years on the average before one knew whether or not it would survive. Now it’s minute by minute. A business like ours takes a long time to establish its footing and begin to grow.
Everyone is a critic. When you’re hot and things look great, they love you. When you’re cold and things look bleak, they hate you. For whatever reason, people tend to like bad news. All you have to do is watch the news. It’s a crazy world we live in.
We’ll just keep working hard and keep our eye on our goals.
Question:
Research reveals that you're also the CEO of "Sky440, Inc.", trading as SKYF on the "Pink Sheets". Tell me, are there any other companies which you're the CEO of? Obviously, investors in CMLT are under the impression that SKYF won't detract significantly from your duties @ CMLT. Should there be any cause for concern?
Response:
Technically, Robert Atwell is the Chairman and interim CEO of Sky440 while the company searches for a new management team. As the largest stockholder in Sky440, Mr. Atwell had to take back control of the company last year because it had reached a point where he had to protect his investment and that of others. The company’s management had done the best they could under difficult circumstances, but it had become clear that he had to take action. This does not detract significantly from his duties with Camelot.
This is also the case with Emaji, Inc. Unlike Sky440, which has ongoing albeit limited operations, Emaji is just sitting. Mr. Atwell and others had invested a significant amount of money into the company over the years (most before it became Emaji) and took back control of the company to try to protect their investment. Once things settle down with Camelot and there is a new management team in place with Sky440, we’ll see what can be done with Emaji.
On both of these, we had to step in so we could hopefully avoid losing our investments in them. There should not be any cause for concern.
Question:
Perhaps the largest piece of ammunition the bashers have to work with is the knowledge that Camelot has been around since 1978 but have absolutely no finished products to show for it. I've conducted several searches but could find no movies, TV shows, theatrical endeavors, radio shows, or any other piece of commercially viable media either produced or distributed via Camelot Entertainment Group or any substantive subsidiary of Camelot. I'm sure there's a logical explanation for this. However, as a person who's relatively new to the world of investing, I cannot provide an explanation. Is there some sort of Internet reference which could explain the 30-year Camelot business model in a way that makes sense to investors?
Answer:
Camelot Films was founded in 1978 as a private, film fund management company. The design of the company was to work with investors and others behind the scenes as investing in film was, and remains, a very risky investment that few really understand. As the company transitioned into production and distribution, our first theatrical release was in 1982 with “One Down two To Go”, an exploitation movie that was financed directly from a bank (which was unique at that time). We were involved in a number of projects over the years, but did our best to stay behind the scenes, mainly on the business side.
We developed a unique business model during the mid 1980’s that was based upon digital technology. Our goal was, and remains, to implement that business model and effectively change the way movies are developed, financed, produced and distributed. That is happening right now. The industry is changing rapidly.
It only took 20 years for the promised digital technology to really arrive and have an impact. Digital post took hold in the mid 1990’s. Now we have professional digital cameras that come close to film, including the “Red Camera”, the “Arri D21” and others. Digital distribution in coming along slowly. And we will probably be completely immersed in a digital film world by the middle of the next decade. Like I stated previously, these changes do not happen overnight.
Our executive team has been involved in many feature film projects that were released theatrically over the years in addition to “One Down”, including “Lone Wolf McQuade”, “Saved”, “Bully”, “Messenger”, “Trained to Kill” and others. I would recommend looking at the resumes in our filings for additional information. We also have agreements with distribution and production experts with vast amounts of industry experience. Many of these details will emerge when we file our S-1 registration statement.
Camelot became public in 2003/2004 when we took over an ailing public company and moved the Camelot operations into it. All of this information can be found in our annual reports and other filings. When we first became public, we were ready to finally begin implementation of our business model.
Unfortunately, the digital cameras were still not ready for prime time, and then we had an opportunity to build our first physical studio in Tustin, California. Between 2005 and 2008, we focused most of our efforts on what was known as “Camelot Studios at ATEP”. Budgeted at more than $450,000,000, this project would have firmly established phase 2 of our business model under Camelot Studio Group. Much to our disappointment, we were contractually forbidden to make any public announcement of what was going on, other than to minimally reference the project in our filings and make the minimum required legal disclosures. As disclosed in our filings, that project was terminated last year. (We will have materials from that project at the stockholders meeting on May 13th ).
We then began refocusing our efforts back to production and distribution, also disclosed in our filings.
We have always kept an eye on what our main goal is, despite pressure to change direction and become just like every other production company in Hollywood. As we grow, we will have executives and others with numerous credits and other credentials to enhance our team. But we remain steadfast in our resolve to implement what we feel is a plan that will change the way movies are made and released. And we are not the only ones. Every day another company emerges with new ideas and new markets develop. If we can stick to our vision, we’ll get there.
Question:
While we're on the subject of "bashing", there's another criticism that I've seen raised which is a bit less significant than others, but worth mentioning nonetheless. I realize you're in the process of putting together a new website. Since text on the current website talks about "new media", I believe it would behoove you to lend credence to this advocacy by enlisting state of the art web techniques for your new site. Critics are saying things like "....if Camelot is emphasizing 'new media', how come their site isn't built with 'Flash'....", etc, etc. .... I could care less myself, but there are those detractors who won't be sold on Camelot unless it practices what it preaches.
Response:
We agree. We paid a company in Chicago last year to rebuild our entire website and incorporate all of the new media and other features that would enhance our web presence. We are hopeful that we will have the new site soon. I agree, we have to practice what we preach.
Question:
What do you ultimately envision the market for Camelot's eventual productions to be? A cursory glance at several titles in recent PRs would seem to suggest that these films will be akin to the genre encompassing "made for the Sci-Fi Channel". Now, don't get me wrong. I know that those "Sci-Fi Channel" movies are crappy, but if they're still being produced, then there's obviously a lucrative market for them, despite what persons would tend to believe while having the misfortune of viewing "Stan Lee's Harpies". Tell me, where will these films end up?
Response:
It is our intention that every film we make will have a theatrical release, even the smaller films. The releases might be limited, but it is important. We will be looking at packaging up distribution points, such as cable networks, in order to make sure these films have a home and that we can cover production and distribution costs at a minimum. That is very hard to do.
Before a decision is made to greenlight a film, you have to know where you are going to sell it, who your audience is, how it will be marketed, etc. Quality and above the line talent is critical, especially with theatrical releases and foreign sales.
Everything starts with the script. Everything ends with the sale. You have to have both.
We plan to encompass a number of genres. Another important factor is that the foreign market, especially for independents, is shrinking, and as a result you have to look at the domestic marketplace for the majority of recoupment. Bottom line is you want to make the film for x and sell it for y, with y being greater than x. That will determine to a great extent where these films end up.
Question:
Stock bashing.....It seems there are a LOT of persons all over the Internet which are putting in loads of time & energy merely to "bash" either Camelot's stock or the Camelot organization or yourself (Robert Atwell). At first, I attributed this to one of two things a) people who bought the stock in the period of October through January only to see their investment diminish by at least 80 or 90 percent, or b) people who bought the stock in the past 6-8 weeks @ .0001 hoping to quickly "flip" the stock @ .0002 for a 100% profit, only they could not & are angry. But then I came across an article that shed some light upon a possible third explanation for all the negative behavior. It's a bit long, so I'll post for you the most pertinent part of the article here:
".....What typically happens in these situations is that the victim company has to massively dilute its share structure from the constant paying of the monthly burn rate with money received from the selling of “real” shares at artificially low levels. Then the goal of the naked short sellers is to point out to the investors, usually via paid “Internet bashers”, that with the, let’s say, 50 billion shares currently issued and outstanding, that this lousy company is not worth the $5 million market cap it is trading at, especially if it is just a shell company whose primary business plan was wiped out by the naked short sellers’ tortuous interference earlier on. ....."
http://newcmkx.proboards.com/index.cgi?board=Answers&action=print&thread=5893
Tell me, do you feel there is currently a paid effort underway to "trash" Camelot's stock? BTW, when I created an account @ "ihub" (that's "investorshub.com") specifically to quell all the Camelot bashing with the above link & pertinent paragraph, the information was promptly deleted from the site......TWICE!!! I'm doing my best to defend Camelot and its stock, but the longer I have to, the more difficult it's becoming as more & more persons are apparently jumping on board the "basher wagon".
Response:
It is possible that this has occurred. When it comes to money, anything is possible. Naked shorting, or any shorting at these low prices would be ill advised, as it would not take that much buying to push the market up. The market is way too volatile. It’s very hard, expensive and time consuming to try to track down certain bashers.
They hide under anonymous names and emails. It’s a shame that they can’t or won’t use their time and energy for fair and realistic posts. Unless they are shorting (as there are no option trading on these types of stocks) what good does it do a stockholder to “bash” a stock that will only hurt the stock value? Maybe it’s a game for them. Maybe, in some cases, they have their own agenda, whether it’s being paid to bash or it could be simply that they thrive on bashing a particular stock, and once that is not fun anymore, they move on to another stock to bash.
There is also the herd mentality that comes into play. When a stock starts to move up, the herd jumps in and follows, regardless of whether the increase is justified or not. Same thing on decreases. Bandwagons go in both directions, up and down. Sometimes it only takes one basher (paid or not) to get the ball rolling, and others follow along. We would also point out that our stock was trading at these low levels with a lot less shares in the float.
It is troubling that some positive posts were taken off the board while the negative ones remain. We’ll have our attorneys check into that. Also, if someone is being paid to bash a stock, according to our attorneys they would be violating securities laws just the same as some promoters do. It works both ways. If you are being paid to discuss a stock, good or bad, it has to be disclosed.
What really causes irritation is that none of these “investors” have invested a dime directly in the company. They have bought stock in the open market from a seller and the money they paid went to that seller and the brokers making commissions. We have invested millions into the business, not to mention all the time, etc. Then you have someone who bought $500 worth of stock from the market attacking the company and the management with personal attacks, making all kinds of accusations that are totally false and unfounded, and why? So their stock will become worthless? What’s the point? If tomorrow the stock went way up and they made a nice profit, would they still be stating the same things? We value every stockholder, regardless of the amount of shares they may have. We appreciate all of their comments both good and bad. Some comments are just difficult to ascertain as to why they are being made when all the comment does is weaken their respective position.
Somehow many believe that the company has some sort of control over the price of the stock. The control is in the hands of the stockholders and market makers. The company can only report what is going on, file the reports and do what it can to make the business successful. Prior to the Internet boom, it was common for a business to take at least five years on the average before one knew whether or not it would survive. Now it’s minute by minute. A business like ours takes a long time to establish its footing and begin to grow.
Everyone is a critic. When you’re hot and things look great, they love you. When you’re cold and things look bleak, they hate you. For whatever reason, people tend to like bad news. All you have to do is watch the news. It’s a crazy world we live in.
We’ll just keep working hard and keep our eye on our goals.
Question:
Research reveals that you're also the CEO of "Sky440, Inc.", trading as SKYF on the "Pink Sheets". Tell me, are there any other companies which you're the CEO of? Obviously, investors in CMLT are under the impression that SKYF won't detract significantly from your duties @ CMLT. Should there be any cause for concern?
Response:
Technically, Robert Atwell is the Chairman and interim CEO of Sky440 while the company searches for a new management team. As the largest stockholder in Sky440, Mr. Atwell had to take back control of the company last year because it had reached a point where he had to protect his investment and that of others. The company’s management had done the best they could under difficult circumstances, but it had become clear that he had to take action. This does not detract significantly from his duties with Camelot.
This is also the case with Emaji, Inc. Unlike Sky440, which has ongoing albeit limited operations, Emaji is just sitting. Mr. Atwell and others had invested a significant amount of money into the company over the years (most before it became Emaji) and took back control of the company to try to protect their investment. Once things settle down with Camelot and there is a new management team in place with Sky440, we’ll see what can be done with Emaji.
On both of these, we had to step in so we could hopefully avoid losing our investments in them. There should not be any cause for concern.
Question:
Perhaps the largest piece of ammunition the bashers have to work with is the knowledge that Camelot has been around since 1978 but have absolutely no finished products to show for it. I've conducted several searches but could find no movies, TV shows, theatrical endeavors, radio shows, or any other piece of commercially viable media either produced or distributed via Camelot Entertainment Group or any substantive subsidiary of Camelot. I'm sure there's a logical explanation for this. However, as a person who's relatively new to the world of investing, I cannot provide an explanation. Is there some sort of Internet reference which could explain the 30-year Camelot business model in a way that makes sense to investors?
Answer:
Camelot Films was founded in 1978 as a private, film fund management company. The design of the company was to work with investors and others behind the scenes as investing in film was, and remains, a very risky investment that few really understand. As the company transitioned into production and distribution, our first theatrical release was in 1982 with “One Down two To Go”, an exploitation movie that was financed directly from a bank (which was unique at that time). We were involved in a number of projects over the years, but did our best to stay behind the scenes, mainly on the business side.
We developed a unique business model during the mid 1980’s that was based upon digital technology. Our goal was, and remains, to implement that business model and effectively change the way movies are developed, financed, produced and distributed. That is happening right now. The industry is changing rapidly.
It only took 20 years for the promised digital technology to really arrive and have an impact. Digital post took hold in the mid 1990’s. Now we have professional digital cameras that come close to film, including the “Red Camera”, the “Arri D21” and others. Digital distribution in coming along slowly. And we will probably be completely immersed in a digital film world by the middle of the next decade. Like I stated previously, these changes do not happen overnight.
Our executive team has been involved in many feature film projects that were released theatrically over the years in addition to “One Down”, including “Lone Wolf McQuade”, “Saved”, “Bully”, “Messenger”, “Trained to Kill” and others. I would recommend looking at the resumes in our filings for additional information. We also have agreements with distribution and production experts with vast amounts of industry experience. Many of these details will emerge when we file our S-1 registration statement.
Camelot became public in 2003/2004 when we took over an ailing public company and moved the Camelot operations into it. All of this information can be found in our annual reports and other filings. When we first became public, we were ready to finally begin implementation of our business model.
Unfortunately, the digital cameras were still not ready for prime time, and then we had an opportunity to build our first physical studio in Tustin, California. Between 2005 and 2008, we focused most of our efforts on what was known as “Camelot Studios at ATEP”. Budgeted at more than $450,000,000, this project would have firmly established phase 2 of our business model under Camelot Studio Group. Much to our disappointment, we were contractually forbidden to make any public announcement of what was going on, other than to minimally reference the project in our filings and make the minimum required legal disclosures. As disclosed in our filings, that project was terminated last year. (We will have materials from that project at the stockholders meeting on May 13th ).
We then began refocusing our efforts back to production and distribution, also disclosed in our filings.
We have always kept an eye on what our main goal is, despite pressure to change direction and become just like every other production company in Hollywood. As we grow, we will have executives and others with numerous credits and other credentials to enhance our team. But we remain steadfast in our resolve to implement what we feel is a plan that will change the way movies are made and released. And we are not the only ones. Every day another company emerges with new ideas and new markets develop. If we can stick to our vision, we’ll get there.
Question:
While we're on the subject of "bashing", there's another criticism that I've seen raised which is a bit less significant than others, but worth mentioning nonetheless. I realize you're in the process of putting together a new website. Since text on the current website talks about "new media", I believe it would behoove you to lend credence to this advocacy by enlisting state of the art web techniques for your new site. Critics are saying things like "....if Camelot is emphasizing 'new media', how come their site isn't built with 'Flash'....", etc, etc. .... I could care less myself, but there are those detractors who won't be sold on Camelot unless it practices what it preaches.
Response:
We agree. We paid a company in Chicago last year to rebuild our entire website and incorporate all of the new media and other features that would enhance our web presence. We are hopeful that we will have the new site soon. I agree, we have to practice what we preach.
Question:
What do you ultimately envision the market for Camelot's eventual productions to be? A cursory glance at several titles in recent PRs would seem to suggest that these films will be akin to the genre encompassing "made for the Sci-Fi Channel". Now, don't get me wrong. I know that those "Sci-Fi Channel" movies are crappy, but if they're still being produced, then there's obviously a lucrative market for them, despite what persons would tend to believe while having the misfortune of viewing "Stan Lee's Harpies". Tell me, where will these films end up?
Response:
It is our intention that every film we make will have a theatrical release, even the smaller films. The releases might be limited, but it is important. We will be looking at packaging up distribution points, such as cable networks, in order to make sure these films have a home and that we can cover production and distribution costs at a minimum. That is very hard to do.
Before a decision is made to greenlight a film, you have to know where you are going to sell it, who your audience is, how it will be marketed, etc. Quality and above the line talent is critical, especially with theatrical releases and foreign sales.
Everything starts with the script. Everything ends with the sale. You have to have both.
We plan to encompass a number of genres. Another important factor is that the foreign market, especially for independents, is shrinking, and as a result you have to look at the domestic marketplace for the majority of recoupment. Bottom line is you want to make the film for x and sell it for y, with y being greater than x. That will determine to a great extent where these films end up.
Thursday, April 30, 2009
We receive a lot of questions regarding the stock price.
First, it is important to understand than when someone buys a share of stock in the marketplace, through their broker or online trading firm, such as Ameritrade or Etrade, the money goes directly to the person selling the shares, not to the company (unless it is an IPO or Secondary Offering, in which case there would be a prospectus and various SEC filings). Therefore, to repeat, when you buy a share of stock, most of the time the money goes directly to the person selling the stock, not to the company.
Second, the company has no direct control over the price of the stock. When there are more buyers than sellers, the price goes up. When there are more sellers than buyers, the price goes down.
As with anything, there is always people and entities that try to shortcut the system, and with stocks the term most frequently associated with this type of activity is called a "pump and dump", where the company or some other party that owns stock releases false financial statements or other unbelievable information that drives the price of the stock way up (the "pump"), and then once it peaks in price, the stockholder dumps large amounts of stock on the market, reaping enormous profits (the "dump").
This is one of the major problems with the chat rooms. A lot of information, good and bad, is passed around by mostly anonymous contributors, most of the time with no facts other than their own respective opinions based on rumors and other unfounded suppositions. If they want the stock to go up, they love the company. If they want it to go down, or keep it down so they can buy cheaper shares, they hate the company. There are some well meaning participants in the chat rooms who do their own research and try to provide accurate and helpful insight into a particular stock. But they are few in number and sometimes difficult to separate from the others. Investing in stocks is a risky business. Things change sometimes minute to minute. Especially in these volatile times.
Of course, there are many other facets to the stock price question. At Camelot, we try to make sure that when we issue a press release, it is accurate, timely and reflects updates that are current at the time the release is issued. Things do change. Sometimes, the items in a release may have changed the same day the release came out. If that happens, we do our best to try and keep everything updated as soon as possible. Standard press releases can range anywhere from $250 to $1,000 each time they are released. The expense can add up quickly. There have been many times where we could have issued a release about funding deals and other financial transactions, but did not because we wanted to make sure they were completed or that they had a good chance of being completed. Even with that conservative approach, there are still times where something looks solid only to change over a period of time. This is especially true of acquisitions, which take a long time to negotiate and when other elements enter into the process that alone can eventually derail even a rock solid transaction. In other words, the deal is not done until the deal is done. However, stockholders and others want to be informed about what progress is being made, and as a result the company is continuously balancing the need of getting information out and making sure that transactions have a chance to be completed.
All of the above can have a direct and indirect impact on the price of the stock. Sometimes none of the above will have an effect.
Case in point, at one time we had approximately 150,000,000 shares in the float. We had positive news over a long period of time, and yet our stock was trading exactly where it is now, and now we have substantially more shares in the float. We have a good idea how and why our stock price continued to decline, but once it reached the bottom, it just continued to sit. There have been days where we have traded 1.5 billion shares, and the price just stays the same. There have been days where we have traded 20 million shares and the price has gone up or come down. There have been days when we have had good news, and the stock sits or goes down. And on no news days the stock has gone up for no apparent reason.
Everyone seems to have their own idea as to why. From what we have been able to determine, it is probably a combination of many of the items discussed above and other factors as well, including market maker pricing strategies, etc. But in the end, it may just as simple as there are more sellers than buyers, and until the buyers kick in, the downward pressure on the stock will keep it where it is. Remember, investing involves risk. Investing in penny stocks is really risky. The rewards can be great. But one can never look away from the market. Even for a moment.
The low stock price has affected us directly in that transactions now cost us a lot more stock. For example, under current market conditions, a $5,000 transaction would take anywhere from 50,000,000 to 100,000,000 shares or more to complete. Those numbers begin to add up quickly. And we have transactions that date back years that are tied to the price of the stock. Many of those who received shares, such as our management, continue to hold on to them, resulting in management having a sizeable stake in the stock. It is in evryone's interest, including mangment and the stockholders, for the stock price to increase. But as we have stated, we have no control over where the market goes. Unfortunatley, the current market dictates what we do when it comes to financial transactions, and that is bad for everyone.
As a company, we have to continue marching forward, looking for solutions and hopefully making the right decisions that will lead us to profitability. It is a long and tedious process. And when we achieve profitability, we would expect our stock price would accurately reflect our progress. But it may not. Nobody knows. I wish we had a crystal ball. It would make things a lot easier.
First, it is important to understand than when someone buys a share of stock in the marketplace, through their broker or online trading firm, such as Ameritrade or Etrade, the money goes directly to the person selling the shares, not to the company (unless it is an IPO or Secondary Offering, in which case there would be a prospectus and various SEC filings). Therefore, to repeat, when you buy a share of stock, most of the time the money goes directly to the person selling the stock, not to the company.
Second, the company has no direct control over the price of the stock. When there are more buyers than sellers, the price goes up. When there are more sellers than buyers, the price goes down.
As with anything, there is always people and entities that try to shortcut the system, and with stocks the term most frequently associated with this type of activity is called a "pump and dump", where the company or some other party that owns stock releases false financial statements or other unbelievable information that drives the price of the stock way up (the "pump"), and then once it peaks in price, the stockholder dumps large amounts of stock on the market, reaping enormous profits (the "dump").
This is one of the major problems with the chat rooms. A lot of information, good and bad, is passed around by mostly anonymous contributors, most of the time with no facts other than their own respective opinions based on rumors and other unfounded suppositions. If they want the stock to go up, they love the company. If they want it to go down, or keep it down so they can buy cheaper shares, they hate the company. There are some well meaning participants in the chat rooms who do their own research and try to provide accurate and helpful insight into a particular stock. But they are few in number and sometimes difficult to separate from the others. Investing in stocks is a risky business. Things change sometimes minute to minute. Especially in these volatile times.
Of course, there are many other facets to the stock price question. At Camelot, we try to make sure that when we issue a press release, it is accurate, timely and reflects updates that are current at the time the release is issued. Things do change. Sometimes, the items in a release may have changed the same day the release came out. If that happens, we do our best to try and keep everything updated as soon as possible. Standard press releases can range anywhere from $250 to $1,000 each time they are released. The expense can add up quickly. There have been many times where we could have issued a release about funding deals and other financial transactions, but did not because we wanted to make sure they were completed or that they had a good chance of being completed. Even with that conservative approach, there are still times where something looks solid only to change over a period of time. This is especially true of acquisitions, which take a long time to negotiate and when other elements enter into the process that alone can eventually derail even a rock solid transaction. In other words, the deal is not done until the deal is done. However, stockholders and others want to be informed about what progress is being made, and as a result the company is continuously balancing the need of getting information out and making sure that transactions have a chance to be completed.
All of the above can have a direct and indirect impact on the price of the stock. Sometimes none of the above will have an effect.
Case in point, at one time we had approximately 150,000,000 shares in the float. We had positive news over a long period of time, and yet our stock was trading exactly where it is now, and now we have substantially more shares in the float. We have a good idea how and why our stock price continued to decline, but once it reached the bottom, it just continued to sit. There have been days where we have traded 1.5 billion shares, and the price just stays the same. There have been days where we have traded 20 million shares and the price has gone up or come down. There have been days when we have had good news, and the stock sits or goes down. And on no news days the stock has gone up for no apparent reason.
Everyone seems to have their own idea as to why. From what we have been able to determine, it is probably a combination of many of the items discussed above and other factors as well, including market maker pricing strategies, etc. But in the end, it may just as simple as there are more sellers than buyers, and until the buyers kick in, the downward pressure on the stock will keep it where it is. Remember, investing involves risk. Investing in penny stocks is really risky. The rewards can be great. But one can never look away from the market. Even for a moment.
The low stock price has affected us directly in that transactions now cost us a lot more stock. For example, under current market conditions, a $5,000 transaction would take anywhere from 50,000,000 to 100,000,000 shares or more to complete. Those numbers begin to add up quickly. And we have transactions that date back years that are tied to the price of the stock. Many of those who received shares, such as our management, continue to hold on to them, resulting in management having a sizeable stake in the stock. It is in evryone's interest, including mangment and the stockholders, for the stock price to increase. But as we have stated, we have no control over where the market goes. Unfortunatley, the current market dictates what we do when it comes to financial transactions, and that is bad for everyone.
As a company, we have to continue marching forward, looking for solutions and hopefully making the right decisions that will lead us to profitability. It is a long and tedious process. And when we achieve profitability, we would expect our stock price would accurately reflect our progress. But it may not. Nobody knows. I wish we had a crystal ball. It would make things a lot easier.
For those individuals who keep stating erroneous facts about our company, both here and elsewhere on the web, we would encourage them to attend the stockholder meeting, visit our web site, or ask specific questions on the blog, twitter or facebook site. Making unfounded and untrue statements about our company is a slap in the face to those who have worked and continue to work so hard. We are a fully reporting company and there is a lot of accurate information available if one chooses to look at the facts.
We hope to see as many stockholders as possible on the 13th. This will be a great time to ask questions and gather information. Hopefully between the stockholders meeting and the blog, twitter and facebook, we can finally have regular and accurate communication with our stockholders. Please be patient as we learn how to use these new devices. Remember, the stockholders meeting is Wednesday, May 13th, 2009 at 1 p.m. It is scheduled to take place in the large conference room at our main location: 8001 Irvine Center Drive, Suite 400, Irvine, CA 92618.
We currently have projects in various stages of pre-production and development. We have acquired the rights to several pictures, two of which are being packaged at this time. We are currently negotiating two other contracts which we hope we will be able to finalize prior to or during Cannes. Film projects, individual or slates, take a great amount of time, expense and persistence to complete. The risk is substantial. There are no guarantees.
In London, we will be meeting with the London Stock Exchange and with our potential sponsor for the AIM market. We will also be meeting with the film commission and several filmmakers we are discussing projects with. We will be visitng several studios for one of our upcoming pictures. We also have meetings with a couple of banks in what has turned out to be a packed schedule in London. Please note that we had an office in London for many years (Camelot Films).
During Cannes 2009, we will be meeting with banks, co-production partners, filmmakers and other buyers. We will be looking to acquire product for US market and select foreign territories. We will be continuing negotiations with at least one of our potential acquistions. We will also be discussing potential studio sites in Belgium and Germany. We will also be discussing at least three of our upcoming films that are in various stages of pre-production. We will be discussing our S-1 Registration, our Camelot Films slate, our current projects under the Camelot Features banner and our plans for 2009 and 2010. We will also have meetings on additional projects we have in development with filmmakers in Europe. Of interest to us this year is what effect has the economic downturn had on the buyers from the various countries and territories. We will be meeting with them to determine what their committments look like for 2010 and beyond, what they will be looking for and how we can do business. We hope to be able to make some announcements while in Cannes. We are focusing on the market at Cannes, not the festival.
Friday, April 17, 2009
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