Capstone Companies (CAPC) research, news, and more from GeoInvesting

Company description

Fri, 03 Jun 2011 04:00:00 GMT

Through our operating subsidiaries, we are a developer and manufacturer of niche consumer products selling to distributors and retailers in the United States. Our Capstone subsidiary currently operates in five primary business segments: (1) Portable booklights and multi-task lights. (2) eReader lights. (3) Eco-i-Lite power failure lights and night lights (4) Wireless motion sensor lights (5) Light Ringers® collection of desk lamps and utility lamps.

Capstone is engaged in the business of producing the following consumer products, which are, unless indicated otherwise, manufactured for and under the trade name of “Capstone” by contract manufacturers in China, distributed by us and sold through regional and national retailers and distributors in the United States.

Notable Share Transactions

Fri, 13 Jul 2012 04:00:00 GMT

Item 8.01

Other Events

Capstone Companies, Inc. announced today that it has been notified by Dr. Jeffrey Postal, a member of its Board of Directors, of his intent to be actively purchasing Capstone shares of common stock on the open market or in privately negotiated transactions. Dr. Postal indicated his intentions to purchase up to 50,000,000 shares of stock over a period of 6 months, excluding restricted periods in which insiders are not allowed to be trading the Company’s Common Stock as in accordance with Company insider trading policies.

As of Dr. Postal's most recent Form 4 filed on July 29, 2011, he held 62,413,177 shares of Common Stock, or 9.6% of total shares of Common Stock issued and outstanding as of June 30, 2012.

Deal Flow

Fri, 06 Apr 2012 04:00:00 GMT

On April 1, 2012, CHDT Corporation, a Florida corporation, (“CHDT”) entered into a one year Working Capital Loan Agreement with Postal Capital Funding, LLC (“Lender”) to provide CHDT with a unsecured $1,000,000 revolving line of credit at 8% annual interest (default rate of 10% per annum). The revolving line of credit will be used for operating costs, including inventory purchases for resale to customers. Lender is owned by, among others, Jeffrey Postal and James McClinton, who are a director and director and senior officer of CHDT, respectively. The Agreement was reviewed for fairness to CHDT and its public shareholders and approved by Jeffrey Guzy, an independent director of CHDT. As previously reported, and from time to time, CHDT has received short term loans from members of management to finance business development or operating costs. CHDT has been unable to develop alternative, readily available, short term and comparable funding sources.

Comments & Business Outlook

Fri, 16 Mar 2012 04:00:00 GMT

Fourth Quarter 2011 Results

Revenue increased $782 thousand, or 59%, in the fourth quarter of 2011, compared with the prior-year period
Net income for the fourth quarter improved measurably to $27 thousand from a net loss of $43 thousand in the 2010 fourth quarter.

Stewart Wallach, CHDT's President and CEO, commented, “We believe our 2011 results demonstrate the effective execution of our strategy to develop and maintain positions of innovative and technical leadership in consumer lighting products. We nearly doubled sales last year and demonstrated the leverage potential of our business model with an 8.5% operating margin. This past year was the culmination of several years’ work to completely overhaul the organization to focus on our core competencies and create a sustainable growth model through the creation of new products, development of a competent and cost-effective logistics structure and establishment of our channels to market. We believe we have gained the respect of leading national retailers throughout the U.S. which we plan to leverage through new product introductions.”

Capturing market share for growth in 2012 and beyond; expanding margin potential

The Company’s recently announced domestic distribution strategy is expected to drive sales growth as it enables the Company to serve a larger group of potential retailers. In addition, the anticipated shift of sales from direct import to domestic programming over the course of 2012 is expected to deliver stronger margins.

Mr. Wallach noted, “We are expanding our lighting product lines to add features and aesthetics that we believe will be well received by a broader audience of consumers interested in the functionality of power failure lights, but requiring a more decorative appeal. Many of our new innovations were previewed at the International Housewares Show and reception by our current and prospective retail store customers was strong.”

Mr. Wallach concluded, “Competition is expected to be more intense as we expand our market share. We believe focusing on innovative niche products that may have been overlooked or underexploited by our competitors provides us a measurable competitive advantage so we can deepen our market penetration in the consumer lighting space. Our ongoing product developments in conjunction with our domestic distribution strategy should bode well for another year of growth both organically and through the addition of second-tier retail accounts."

Comments & Business Outlook

Mon, 24 Oct 2011 04:00:00 GMT

CHDT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	Sept 30,						Sept 30,
	2011			2010			2011			2010

Revenues	$	4,631,930		$	3,013,975		$	8,149,171		$	3,969,550
Cost of Sales		(3,579,048	)		(2,126,383	)		(6,195,735	)		(2,777,802	)
Gross Profit		1,052,882			887,592			1,953,436			1,191,748

Operating Expenses:
Sales and marketing		44,449			192,393			117,057			379,110
Compensation		208,887			247,629			585,630			755,039
Professional fees		22,041			43,502			66,268			109,541
Product Development		57,714			44,587			140,473			115,266
Other general and administrative		98,107			127,581			253,140			344,889
Total Operating Expenses		431,198			655,692			1,162,568			1,703,845

Net Operating Income (Loss)		621,684			231,900			790,868			(512,097	)

Other Income (Expense):
Interest expense		(87,872	)		(101,724	)		(242,342	)		(183,765	)
Total Other Income (Expense)		(87,872	)		(101,724	)		(242,342	)		(183,765	)

Net Income (Loss)	$	533,812		$	130,176		$	548,526		$	(695,862	)

Income (Loss) per Common Share
Basic	$	-		$	-		$	-		$	-
Diluted	$	-		$	-		$	-		$	-

Weighted Average Shares Outstanding
Basic		649,510,532			649,357,786			649,510,532			649,357,786
Diluted		806,932,109			806,629,363			806,932,109			806,629,363

Press Release:

“As I mentioned at our 2010 year-end conference call, we believed the Company had never been in a better position as revenues were continuing to grow through expanded product placement at both new and existing customers. We were confident 2011 would be a turning point for the Company as our strategy was to contain costs while introducing relevant products that were useful and affordable,” said Stewart Wallach, CEO of CHDT Corp. “The retail buying community has acknowledged our subsidiary’s efforts and today it is easier to name the few companies we don’t sell than the extensive list of those we do. We still temper our growth initiatives by being selective and focusing on doing business with retailers best suited to succeed in today’s challenging market conditions. I look forward to addressing our shareholders on Wednesday to elaborate on our continuing progress,” he added.

Comments & Business Outlook

Thu, 20 Oct 2011 04:00:00 GMT

RFIELD BEACH, FL, October 12 ,2011: CHDT Corporation, a Florida corporation (OTCBB: CHDO), (“Company”), with operating subsidiaries focused on designing and manufacturing consumer lighting products for the North American and Latin American retail markets and Capstone Industries, a wholly owned subsidiary of CHDT Corp., confirms the Company’s reorder activity has been strong through Q3 and the resulting order backlog is currently ahead of Q4, 2010 .

While CHDT Corporation’s Q3 results will not be formally confirmed until the Q3 audit is completed, the Company expects gross revenue of approximately $4,786,534 with net revenue of approximately $4,500,542 in the quarter. This brings our year-to-date gross revenue to approximately $8,492,901 and net revenue to approximately $7,966,239. More importantly, the Company expects record net income through Q3 to be approximately $400,000 as compared to a same period net loss of $695,862 in 2010. This translates to an expected improvement of more than $1,000,000 in the Company’s year-to-date performance. “It is hard to explain the sense of pride our team is feeling as we prepare to deliver these great results to our shareholders,” said Gerry McClinton, CFO. “We remained focused on our core lighting products and the product innovations have been recognized by the major retailers across the country,” he added.

“These results are really not surprising when one considers the great products being provided at such affordable pricing levels,” said Stewart Wallach, CEO of CHDT Corp. “What is surprising however is that our stock value has yet to reflect these achievements. I receive numerous shareholder calls daily, inquiring why the stock is so undervalued. We obviously remain under the radar, but we firmly believe continuing to post strong results will cause trading volumes to rise and stock prices to more accurately reflect the Company’s results. ” he added.

Comments & Business Outlook

Tue, 16 Aug 2011 04:00:00 GMT

DEERFIELD BEACH, FL -- (Marketwire) -- 08/12/11 -- CHDT Corporation, a Florida corporation (OTCBB: CHDO) ("Company"), with operating subsidiaries focused on designing and manufacturing consumer products for the North American and Latin American retail markets, reported today that the Company, during the first half of 2011, delivered record revenue of approximately $3,465,700, an increase or 262.7% compared to $955,600 for the first half of 2010 and a first half net income of $14,700 compared to a net loss of approximately $826,000 for the first half 2010, a net improvement of approximately $840,700 over the same period 2010.

The Company also reported a record order backlog in excess of $5,000,000, moving into the second half of the year. "We are posting strong revenue growth in both quarters and we have a record backlog that should serve to yield a record Q3 as well, and it was achieved in a very challenging retail environment," said CFO Gerry McClinton.

Total Net Revenues: For the three months ended June 30, 2011, the Company posted net sales of approximately $1,048,200 compared to net revenues for the same period in 2010 of approximately $602,500, an increase of approximately $455,700. This represents a 75.6% increase from 2010 results. For the six months ended June 30, 2011, the Company posted net sales of approximately $3,465,700 as compared to net revenues for the same period in 2010 of approximately $955,600, an increase of approximately $2,510,100. This represents a 262.7% increase from 2010 results. All of the revenue was generated by Capstone.

Cost of Sales: For the three months ended June 30, 2011 and 2010, costs of sales were approximately $738,900 and $413,200 respectively. For the six months ended June 30, 2011 and 2010, costs of sales were approximately $2,565,100 and $651,400 respectively.

Gross Profit: For the three months ended June 30, 2011, gross profit was approximately $309,300, an increase of approximately $119,900 or 63.3% from $189,400 for the three months ended June 30 2010. For the six months ended June 30, 2011, gross profit was approximately $900,600, an increase of approximately $596,400 or 196% from $304,200 for the six months ended June 30 2010. The large gross profit increase is attributed to increased shipments in the quarters as compared to the same periods last year.

Total Operating Expenses: For the three months ended June 30, 2011, expenses were approximately $322,900, as compared to approximately $459,400 for the three months ended June 30, 2010, a net reduction of approximately $136,500 or 29.7%. For the six months ended June 30, 2011, expenses were approximately $731,400 as compared to approximately $1,048,100 for the six months ended June 30, 2010, a net reduction of approximately $316,700 or 30.2%.

Net Income (Loss): For the three months ended June 30, 2011, the net loss was approximately ($92,400), as compared to a net loss of approximately ($318,200) for the three months ended June 30, 2010. The Company improved its net results in the quarter by approximately $225,800 from the same period in 2010. For the six months ended June, 2011, net income was approximately $14,700, as compared to a net loss of approximately ($826,000) for the six months ended June 30, 2010. The Company improved its net results by approximately $840,700 from the same period in 2010. This substantial net results improvement was the result of increased revenues and the ongoing effort to contain expenses.

"While I was hopeful we would also be reporting a profitable Q2, the results on a year-to-date basis are very strong and validate the expectations we had at 2010 year-end. Considering the backlog taking us into Q3, we are clearly on course to have a record Q3 and we anticipate the results through Q3 will be record setting as well. Strong, steady performance has been our goal and the management has delivered. I look forward to addressing our shareholders on Monday, August 15, 2011 to discuss our progress further," said Stewart Wallach, CEO of CHDT Corp

Investor Alert

Fri, 03 Jun 2011 04:00:00 GMT

As a small reporting company with limited resources, we do not have the resources to compete head-to-head with larger, more established competitors for any of the products. We face many national or regional brand-named competitors in all of our product lines. However we attempt to compete by leveraging the design, innovation, engineering and manufacturing capabilities of our Chinese contract manufacturers in order to provide quality products with more functions at what we deem to be a value price. Prior History. Since the start of the 1990’s, the history of CHDT has been a series of failed operating subsidiaries engaged in various business lines. With each failed business, we usually experienced a change in management and business focus.

Liquidity Requirements

Fri, 03 Jun 2011 04:00:00 GMT

The failure of CHDT to achieve sustained profitability in its operations continues to hamper our efforts to establish and sustain a profitable, growing business or cause any appreciation in our Common Stock market price. In fiscal year 2010 and through 2011 to date, we continued our historical reliance on raising working capital for operations, business and product development, by receiving loans or investments from members of management or their affiliates. During 2010 we were able to transfer our conventional asset based bank loan to a factor based line that would better support Capstone operations and working capital needs, however we may have to continue to raise working capital for CHDT and working capital for Capstone business and product development (as well as any possible mergers and acquisitions of other companies or their products) by selling our securities in private placements to investors and/or loans or investments by our management and their affiliates. This reliance on private placements of securities and insider loans or investments adds to the already significant number of outstanding shares of Common Stock, significantly dilutes our shareholders and further weakens our ability to attract primary market makers and institutional investor support for our Common Stock as a publicly traded security and also adversely impacts on our ability to do mergers and acquisitions, attract traditional bank funding or raise working capital by public offerings of our securities

Comments & Business Outlook

Sun, 03 Apr 2011 04:00:00 GMT

Our growth strategy has six main elements:

1. Introduce our new product lines to more departments at existing retail distribution channels; and

2. Continue to expand retail distribution and move into new distribution channels; and

3. Develop new innovative products in order to expand existing categories and launch new categories; and

4. Through acquiring businesses that have innovative products that would complement our existing marketing strategies; provided, however, we have not consummated any such acquisitions during the fiscal year and the low price of our Common Stock may discourage or prevent future acquisitions; and

5. Through acquiring businesses that would allow us to diversify into direct to consumer or commercial-industrial channels; provided, however, the low price of our Common Stock may discourage or prevent future acquisitions; and

6. Seek to expand retail distribution into overseas distribution channels, particularly in South America, Western Europe and Asia.

Investor Presentations

Fri, 01 Apr 2011 04:00:00 GMT

Howard Ullman, a director, will conduct investors meetings during the week of March 27, 2011.

Reverse Merger Activity

Thu, 06 Jan 2011 05:00:00 GMT

We are speculating that CHDO may pursue a reverse merger transaction:

From time to time, CHDT Corporation Board of Directors explores options to enhance shareholder value, including, without limitations, starting new business lines, the sale of existing business lines and other merger and acquisition opportunities. Such a review, with the assistance of outside investment banking counsel, was commenced in the fourth quarter of fiscal year 2010.

Please note that the stock has over 600 million shares outstanding.