Shortly after last week’s year end update on Bad Toys was published, the company issued another press release, which gives us a look at where they see themselves headed in 2007.
Bad Toys announced that the Industrial Board of Vernon, Alabama is going to build a 20,000 square foot facility to house Southland Health Care. Here’s a quote from the press release:
“This new facility will be 20,000 square feet and will accommodate the Company’s growth expectations to approximately $90 million in revenue.”
Here’s the big picture: Bad Toys spent 2006 treading water as they moved forward with their plans to spin out Southland Health Care into its own public company and attempted to refinance their defaulted debt.
Net result to shareholders: Bad Toys stock performance in ’06 was abysmal, as investors simply lost interest in the entire process.
Now that Bad Toys is very close to having an effective registration statement and possibly finding a non-equity demanding lender, we could be on the verge of having the interest rekindled.
I won’t put up another chart, as there is little change from the one that appeared in last week’s edition.
However, I will say that I believe Bad Toys is very close to having an effective registration on Southland Health Care, and being able to really go x-dividend- probably exactly one year after the original announcement. Once they announce an x-dividend date again, I believe the stock will trade up as investors acquire Bad Toys in order to be entitled to the dividend.
Comments and questions are welcome.
Exactly my thoughts. BTYH is trading at $0.5 range and i beleive the recent downturn is due to end of year tax selling pressure.
I have a question – “and being able to really go x-dividend- probably exactly one year after the original announcement.”. What is the original announcement date?
The Press release mentioned they are hoping the Southland paperwork will be approved in the 1st quarter of ’07. Exciting year ahead for this stock, IMO.
Editor: The company was originally supposed to go x-dividend on January 12, 2006. They are trying to do something I have never seen done. On paper, it seems possible. They couldn’t dividend out the shares because there are conflicting regulations between the NASD and the SEC, and they were forced to drag the process out until having an effective registration statement on Southland Health Care. 2007 is setting up to be a very interesting year for this stock- Reg statement should be effective very- perhaps this week. If they refinance their debt, I am convinced they could pull this off. They have the numbers.
Any thoughts on why C. Hubbard and A. Walls continue to unload their BTYH stock? I know this may not mean anything, however, it just would seem a bit odd that these insiders continue to sell if the company were ready to break out. I don’t see Lunan selling, so that is good.
Editor: Yes- these guys are simply nobodies who need a little money. Meaningless for the future.
Now I no longer understand it. NIHK received a major order and still is down about 15 %. How can this be explained ? Perhaps, the only reason is that the company is procucing its system with loss instead of gain. Perhaps the balance between production and advertising costs and so on is still balanced to net earnings is still negative. If so, this is a major negative
factor for the company. After all, if any company wants to live a healthy economical life, it will have to sell its products above costprice.
So, where are we about in this company ?
Editor: I’m not sure when you posted this comment, but I don’t know how you got the 15% loss observation. It is Thursday morning at 7:00 AM Pacific. The stock is trading at nearly $.08- up nearly a double from where it was on Monday, and at the highest level it has traded since last May. Two cents from my target price. If you want to be a little bit of a trader, sell it now, and wait for a pullback. You should have made a nice percentage gain on this one if you were in it at any level this Fall.
Hi,
This PR came out on 12/29.
Bad Toys Holdings, Inc. Announces the Filing of Amendment No. 4 to Southland Health Services, Inc.’s Registration Statement on Form S-1
KINGSPORT, TN — (MARKET WIRE) — 12/29/06 — Bad Toys Holdings, Inc. (OTCBB: BTYH) (the “Company”) announced today the filing by Southland Health Services, Inc. (“Southland”) of Amendment No. 4 to Southland’s Registration Statement on Form S-1 with the Securities and Exchange Commission (the “SEC”). Southland, a wholly owned subsidiary of the Company, filed the aforementioned registration statement to effect the spin-off of Southland to the Company’s shareholders.
Larry Lunan, CEO of Bad Toys Holdings, Inc., commented, “The Company has worked closely with the SEC and our legal counsel to appropriately respond to SEC’s most recent comments to our Amendment 3 and accordingly amend the Registration Statement. The Company will ascertain during the first week in January 2007 if any additional comments will be forthcoming. Our efforts continue to be directed at having the Registration Statement declared effective so that the spin-off of Southland Health Services, our ambulance division, can be finalized. We continue to believe that the separation of the Company’s two operating divisions will benefit each division as well as the Company’s shareholders. If the registration statement is declared effective, the Company plans to give effect to the spin-off during the first quarter of 2007.”
The Company’s common shares have been trading with the Southland stock dividend attached since January 12, 2006. The Company will attempt to provide its shareholders with at least ten (10) days notice of the date that the Company’s stock will begin trading “ex-dividend” (i.e. without the right to receive the Company’s declared dividend of shares of the common stock of its wholly owned subsidiary, Southland). The Company will continue to keep its shareholders informed as this transaction continues to progress. Amendment No. 4 to Southland’s Registration Statement on Form S-1 can be accessed on the Company’s website, http://www.badtoys.net, or on the Securities and Exchange Commission’s website, http://www.sec.gov. If you have any questions about this press release, please contact Mr. Lunan, the Company’s Chief Executive Officer, whose contact information is provided below.
Editor: Despite the fact that no one is paying attention, Bad Toys is going to completely transform in 2007. The stock is going to provide great rewards from these levels in my view.