Yes, there are quite a few mysteries with PNCH. So many questions, and so few answers. Why is that ? How hard can it be to answer a simple, straightforward, legitimate, investor question ?
Some important questions that remain unanswered by Mr. Steven Samblis, CEO of IC Punch Media, Inc are:
Revenue. Why is there NO revenue being reported ? There is a general understanding that the website IC Places is part of the PNCH company. It simply defies logic to think that none of the advertising on the website is, or has (of late), produced even $1.00 in revenue. OR, any other business endeavor PNCH may have been engaged in, such as the ClearVision Airport deal. It important to understand the difference between revenue, and profit. It’s understandable that the company may not be making a “profit” on any advertising or other activities surrounding the business or website due to costs, overhead, etc., however it’s just unbelievable Mr. Samblis is running advertising on the site for free. If anyone paid to have an ad on the website, that is revenue, regardless of any associated costs to run the ad. Where is that revenue at ???
There are some who think that any such revenue is being recorded within the accounting of the IC Places Productions company, also owned by Mr. Samblis. What if… any “revenue” is being accounted for within the IC Productions company (which to our understanding is a wholly owned subsidiary of Mr. Samblis, however NOT part of the IC Punch Media, Inc (PNCH) company)… and the “expenses” to produce the medium that airs the ads (IC Places.com) receives the expenses ? Aside from any legal discussions within the IRS and/or SEC over any such a practice … this would seem to indicate a willingness to mislead investors at the very least. We would welcome Mr. Samblis to set the record straight on this subject. Lacking such just leaves the issue open to speculation. In the past Mr. Samblis’s response to such a question was to attack the questioner, but never address the question. Perhaps now would be the time to come clean and directly address the issue with a full and complete explanation of how it’s possible to run a business and not have even $1.00 of revenue over a 9-month period for those efforts.
Click graphic to enlarge. Complete Quarterly statement here:
Broadcasting content. It was with great fanfare that VU Television Network announced that they had purchased the rights to 2000 hours of programming for airing on their network. See the press release here. In fact this purchase was such a huge deal that Mr. Samblis decided to delay the much publicized initial launch of the network because of it. Additionally, although it was not communicated to the investors a that time, the “original” programming content that had been developed for the launch… was set aside in favor of the new content. There was never any details released to the investors, or the public, related to the cost of this deal. And there was no mention of it in the most recent quarterly report. Granted, the report covered a reporting period ending September 30th., so maybe the financial aspect of the deal would not be included, but the report was filed on November 19th, long after the initial launch using this programming. Why no mention of the purchase ?
Now, fast forward to recently, sometime around the filing of the quarterly report, and there is no more 2000 hours of programming being broadcast on the VU Television Network. Where did this content go ??? This much publicized content deal, that was important enough to delay a much publicized initial launch… now appears to be non-existent. The network now appears to be broadcasting the content that was not good enough for the initial launch. Also, VU Television Network now appears to be airing re-runs of old movies, which is in direct opposition to their (initial) claim that they were cutting edge broadcasting for the 18-34 year old demographic. We see now that they have changed their company focus wording to programming “that speaks to classic and contemporary ideals and interests, ranging from the inspiring to the hilarious.” This change is a major shift in direction and it would seem fiscally responsible to have advised the investors about. This programming issue also needs a full and complete explanation.
Outstanding Share increases. This also is a major issue that needs a full and complete – and honest, discussion. As can be seen by the below chart, the outstanding share count is projected to increase to 5-billion shares by June if the current trend continues. Mr. Samblis keeps spouting the same rhetoric about he has not sold a single share in over a year… well the figures that are represented in this chart need an explanation. We addressed the situation recently here. Mr. Samblis, as CEO of the company, certainly knows how and why this increase is happening, and should be straight with the investors about it and not repeatedly play them as fools using the I never sold a single share line.
If Mr. Samblis ever expects his company to do better… then HE needs to do better. He needs to do a better job at being straightforward with investors on simple, but very important questions like the ones posted above.
Can he turn this company around… maybe. But what he can’t turn around is the past… HIS past. That’s the one stubborn thing about history… you can’t get rid of it. Investors don’t care too much about the past if they are making money, but the problem is, will they become investors if they do more than 5-minutes of research on the CEO’s past experience and history of management decisions. An internet connection, rudimentary knowledge of using Google, and 5-minutes, will likely have 99% of potential investors taking their chances on some other stock. Mr. Samblis hasn’t made one, or even a few bad decisions… we all have made a few bad decisions in our lives, but Mr. Samblis has frequently, and consistently made bad decision after bad decision. Some could say that’s the only type of decision he knows how to make. But the very worst decision he has ever made… is the one where he chose not to be straightforward with investors. For most, his creditability is shot. He is frequently called a “liar”.
We think however, Mr. Samblis could begin the process of rebuilding his creditability if he would simply make a choice, a decision, to begin being straightforward with his investors. We feel he needs to find a venue, perhaps the Investors Hangout, apologize for his decisions that caused this company’s stock to hit a low of .0001, and then open himself up to questions – AND… answer those questions openly and honestly. Stay for as long as it takes, and return frequently to address open issues. Hiding behind a Facebook site where tough and unflattering questions are deleted, does nothing to rebuild creditability.