HQS

[shipman]

Starting to move    Oops come again    False start.  Down all around.

[phabrux]

Friday could be the bottom of the right shoulder of a inverse Head and shoulder pattern.
With the friday quote we clearly see the descending resistance line changed into  a support line..
Could HQSM finally rebond Nord with a first target  of  0.365+(0.365-0.265)=0.465$ ?

[shipman]

Big blocks movin' higher

[shipman]

Another good day.   Big blocks taking out the ask.  lookin good

[David Randolph]

It seems HQSM's CEO was on Money TV this weekend, anybody heard the interview?

«HQ Sustainable Maritime Systems, Inc. (OTC BB: HQSM) CEO Norbert Sporns commented on a "good 2005" and looked forward to positive results continuing in 2006.»

Look at HQ's website, sounds tasty 

I'm ahead 6.56% on this trade and I'm expecting HQSM.OB to break $0.365 on the upside and move further North.

[David Randolph]

Everything is set for HQSM.OB to break $0.365 on the upside, let's see if it can make it the next couple of weeks.

I'll continue holding, I believe in the company's products and management.

[bw6458]

HQ Sustainable Maritime Industries Closes on Private Placement of $5.225 Million
Thursday January 26, 8:18 am ET        


HQSM Positions Itself for Strong Growth in 2006


SEATTLE, WA--(MARKET WIRE)--Jan 26, 2006 -- HQ Sustainable Maritime Industries, Inc. (HQ) (OTC BB:HQSM.OB - News), a leader in zero-toxin integrated aquaculture and aquatic product processing, announced today that it has closed on a private placement offering of $5.225 million, provided by a small group of experienced accredited investors.
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Terms and conditions of the financing are included in a Form 8K, which the Company will file forthwith.

The net proceeds will allow the company to directly market and brand its zero-toxin products to U.S. consumers and targeted retail outlets. This is a landmark event in the growth of HQ Sustainable Maritime Industries as it centers in the United States the marketing and sales of its products as well as its corporate offices. The company intends to expand the range of products it markets as it executes the "roadmap" outlined in December 2005 by the Company's Chairman. The Company expects this will have a strong positive impact on both sales and profitability.

Norbert Sporns, CEO of HQSM, said, "We are extremely pleased to receive this financing from such an important group of accredited investors who understand the huge growth potential of the aquaculture markets and HQ's capability of becoming the world market leader in zero-toxin production in this field. Our strong branding, marketing and distribution initiatives in the United States are in place to capitalize on the U.S. market growth and increased consumer awareness of quality toxin free food products."

[oicpecnoc]

As a favor to the 3sof, I am considering posting all of my holdings, so that everyone will know when the next private placement will be, or when the next negative pr will be released.  If I buy them, it is guaranteed to follow.   

[fill_the_gap]

Let the Private Placement games begin, just like with BRVO.

I am out until a breakout occurs.  Norbert had told me that they had all the financing to move forward.  Why a pp ?  This does not add up, imo.

[David Randolph]

As a favor to the 3sof, I am considering posting all of my holdings, so that everyone will know when the next private placement will be, or when the next negative pr will be released.  If I buy them, it is guaranteed to follow.   

Lol, thanks oicpecnoc 

Let the Private Placement games begin, just like with BRVO.

I am out until a breakout occurs. Norbert had told me that they had all the financing to move forward. Why a pp ? This does not add up, imo.

Yes, fill_the_gap, and when people see the private placemente red flag they run for the exit.

Private investors get an 8% interest on their notes, and a nice leverage in case the company performs very well, since the notes are convertible at a price of $0.30 a share, more class A ($0.35) and class B ($0.40) warrants.

Because of this private placement the share count may rise to 144.38 million. On September 2004 it was 70 million, and before that less than 30 million. This company is diluting shareholder value every chance it gets, and it doesn't matter how it business performs, the market cap is substantially rising without the share price rising.

I bought HQSM.OB at $0.32 and the stock closed at that level yesterday. I'll sell it today around the open, I don't want these kind of stocks on the Pennies Portfolio, it's too risky.

[bigdogs99999]

Let the Private Placement games begin, just like with BRVO.

I am out until a breakout occurs.  Norbert had told me that they had all the financing to move forward.  Why a pp ?  This does not add up, imo.

Why is a good question!     But I would not label this a Bravo.  Bravo keeps taking in money and is not really much of a business.  It licenses brands, it has someone else make the product, and it has CCE to distribute the product.  Yet it keeps wanting more money - for what? - who knows.   HQSM is completely different ... it is trying to create a vertically integrated company that does everything from growing the fish, to selling, to distributing.  It actually has a use for capital (why it is a private placement rather than using the much touted credit facility does bug me), so I am not so alarmed to see HQSM seek it in some form.  I think that the stock held up well yesterday considering the news and am holding it.  For me, this is the best stock by far in the pennies portfolio.

[fill_the_gap]

Bigdog,

The comparison is not to BRVO as a company.

The issue is what happens to the stock after a Private Placement becomes part of the equation.

No doubt that HQSM looks better than most pennies.  But we all know what control PP's have with being able to short the position with a hedge.  The public gets played while they make the money trading it in a range.

With Norbert saying most will occur 2007 and beyond, they will have more confidence in a short.  And with any news, they can cover and be hedged with the long pp.

It seems like a great company though.  The price is the concern.  It will be interesting to watch.  Any breakout with volume and I will consider an entry.

Good Luck,

[bigdogs99999]

Bigdog,

The comparison is not to BRVO as a company.

The issue is what happens to the stock after a Private Placement becomes part of the equation.

No doubt that HQSM looks better than most pennies.  But we all know what control PP's have with being able to short the position with a hedge.  The public gets played while they make the money trading it in a range.

With Norbert saying most will occur 2007 and beyond, they will have more confidence in a short.  And with any news, they can cover and be hedged with the long pp.

It seems like a great company though.  The price is the concern.  It will be interesting to watch.  Any breakout with volume and I will consider an entry.

Good Luck,

Fill,
You are right about the concern ... always an issue with a private placement ... but I cannot fathom that someone wants to play the game of shorting and hedging with a 30 cent stock that has an established business and is making money.  Perhaps I am naive, but there is simply too much risk and not enough upside for the type of investor who truly plays that game.  Sometimes PPs are to real investors and for legitimate reasons, and the hard call for someone like me is figuring out when that has occurred.  I have put my money where my mouth is on this one and am sticking in (unlike Bravo where the good posters of this board made me reassess and get out of my position).  If I read it correctly, the HQSM press release indicates that the PP is convertible debt "which can be converted into equity or repaid as debt at the Company's option within 24 months."   HQSM issued something that it can control maybe .  Good luck to you too. 

[la-onda]

quotation from micorcap speculator:

Thursday, February 02, 2006
HQSM clarifies financing (updated)
UPDATE (2/2): I received the following email from CEO Norbert Sporns today, which he has given me permission to reprint here:

Greetings from HQ Sustainable Maritime Industries Inc. I have answered your questions below. I have prepared these answers now that the Chairman's press release has clarified many of the outstanding concerns of investors and this information is properly made public to all, as I understand from our lawyers is required in the United States.
Of course this type of financing has costs associated with it that may seem high to some. Believe me we are working in the best interests of shareholders in structuring the best funding available. Our window on opportunity requires executing our plan as quickly as possible.
As a company with Chinese operations active on the Bulletin Board in the United States, we are subject to many factors which are not under our control. The investors in the announced financing have sent four representatives to China conducting a thorough due diligence on the company and attach a reward to their approach commensurate with market forces. One day China companies will not suffer serious discounting for their efforts. In the interim we are creating a unique niche for ourselves as the premium exporter of zero-toxin Tilapia and other products. We are working within the limits of the current business environment between these two great countries.
Those investors patient enough to understand this will certainly be rewarded for the groundbreaking efforts we are making.
Senior management is now coordinating in China with its senior staff in preparing for the coming year...as our office is being physically moved to Seattle. This is also the most important holiday period of the year for Chinese and a time for taking stock of one's blessings within family, friends, employees and supporters.
We thank you for your coverage of our company and the attention of your readers. We look forward to a prosperous lunar New Year and wish you and your staff and readers all the best.
Best Regards,
Norbert Sporns, CEO

-----------------------------------------------------------------------------------

Earlier this week I posted a critical analysis of HQ Sustainable Maritime's (HQSM.OB) (articles) recent equity financing. At that time I had asked the CEO to clarify several aspects of the financing. Although the company did not respond to my email, the company today issued a press release addressing the financing. To be fair to the company, I have reprinted the text of the release below:

    Dear Shareholders:

    HQ Sustainable Maritime Industries Inc., enters into the lunar new year delivering on its plans prepared and presented last year. The recently announced funding is in the form of a convertible debenture which provides for immediate funding for the establishment of our new corporate, marketing and sales offices in Seattle. This instrument is a loan which can be converted into equity or repaid as debt at the Company's option within 24 months. The new offices in Seattle will open officially later this month. We will be there next week setting up when the container arrives.

    This funding not only allows the Company to execute on its planned establishment of a distributor of our products there, but allows the Company to increase awareness of the importance of our zero-toxin product focus and to reap the benefits of more direct sales, increasing sales, market penetration and profitability. The company will in addition broaden its scope of products to cater to seafood purchasing requirements.

    This funding step is also necessary to shift the Company's "centre of gravity" by improving its profile for substantial lenders attracted by the Company's future prospects but preferring a stronger US presence. Finalizing this long-term USD 40 million loan funding can now be completed in the coming weeks. Further expansion of fish farms, production and feedmill will follow immediately in response to unprecedented demand. The benefits of this rapid growth is to seize the opportunity presented by the Company's unique zero-toxin products consolidating its leading position as set out in my December 2005 Chairman's letter.

    In management's estimation, 2005 has been our best year yet. We believe that our record sales and profits are only a precursor to the benefits associated with growth management expects in 2006. We have withstood the test of Typhoon Damrey, the worst typhoon on record for Hainan, unseasonably cold weather in early 2005 (which fortunately has not been repeated this year) and the normal challenges of presenting a growth company's change. We are working hard to continue to advance the Company towards the achievement of its objectives and we believe, 2006 will be a landmark year in our growth.

    We take this opportunity to wish our investors, clients and friends a happy and prosperous lunar new year.

    We welcome any questions or concerns that you, our investors, might have concerning our plans for growth and our partnership with you. Please contact us at [email protected].

    Lillian Wang, Chairman

My take: (1) I am glad to hear the chairwoman still speaking about record 2005 profits and strong 2006 expectations; (2) I am glad to see the $40M financing is still on the table and should be closed soon; (3) neither of these facts changes my impression of the equity financing -- it was unnecessarily expensive and unduly dilutive.

DISCLOSURE: I am still long a bit of HQSM.OB.

Link:
http://themicrocapspeculator.blogspot.com/

[alien41]

La-onda,

This is my first post so I hope I get it right.  Just wanted to let you know that the Harbinus blogsite, which you first directed us to in regards to AOB, has intitiated a strong buy on HSQM as of February 6, 2006.  For those who are interested in reviewing the web site it can be found at http://harbinus.blogspot.com.

GLTA

Alien41