CEO Letter – August 19, 2022

By: Robert Grosshandler | August 19, 2022

Boring News. Exciting News. You Decide.

I’m taking the opportunity of your company’s breaking the 81,000 member level to highlight some things.  Some are boring, some exciting, and some are exciting if you care about financial matters (like me).  On the exciting front?

iConsumer member count - 81,001

We’ve got some member recruitment efforts that are beginning to show affordable results.  First success: it’s YOU.  You’re using your personalized invite link .

Next, it’s paid media that’s getting exciting.  We recently ran a contest where we asked folks (YOU again) to submit a short video that we can use to promote iConsumer. 

iConsumer Video Contest winners

Thanks to our winners, our ads are beginning to drive new members to iConsumer.  Better yet, prospective members seem to like the ads, because they get clicked on a lot.  Which means a level of affordability in gaining new members that we hadn’t seen in awhile.

Financially Exciting

Given that the “float” of RWRDP is so small (about 3% of the outstanding shares) and transaction volume in the stock market even smaller, our stock price is very sensitive to even the smallest of transactions.  Yesterday, the 18th, somebody bought 200 shares for 1.64 cents a share.  That is, they invested $3.28 in our stock, assuming they didn’t have to pay any commission.  I appreciate it when anybody buys our stock.  Thank you! I think you got a bargain.

Because that was the only transaction (sigh), our stock price closed yesterday at $.0164.  Because of a $3.28 sale.  Another sigh. Somebody will want to invest in our stock, I’m sure, and the price will go back up.  That’s what happens each time somebody gets that kind of bargain price.

Back to the float.  About 3% of our issued shares are held in brokerage accounts.  The balance are held on the books of the transfer agent, and thus are not easily traded.  Of those 3%, a goodly chunk (I estimate 1%, maybe even more) are held by people who don’t want to sell until the price is really, really juicy.  So about 2% is available to trade.  About 2,000,000 shares.  At $.10 a share, somebody could corner the market for $200,000.  If somebody did that, I would expect the price per share to go up.  No guarantees, of course.

It’s a little weird.  Usually, the mantra is “buy low, sell high”.  Or, if you have nerves of steel and want to short a stock – “sell high, buy low”.  But since there is an apparent positive correlation between our stock price and member activity, the motivation to buy low is less, since that depresses stock price, depresses members, and may depress earnings.  Not to mention that it depresses me.

We’ve seen in the past that when the market price per share went up, the number of people excited about iConsumer went up.  And that translated into more members, and more members going shopping.  Which is revenue.  Which would be even more exciting. Because more revenue, in theory, translates into a higher stock price.  And, a higher stock price …

AMC/GameStop images

Why am I talking about this now? AMC and Gamestop

There is obviously a renewed interest in the market for highly leverageable opportunities.  Stocks and companies that can be made more valuable because the crowd decides to make them more valuable.  Meme stocks, in other words.  Plus, the recessionary headwinds seem to be lessening.

Meme stocks being back in, lessened recession risk, and a marketing campaign that shows promise.  The timing looks good.

Some boring stuff – the number of members may drop

Our terms of service include the fact that if you are inactive (dormant), over time we’re supposed to reduce your balance for having an inactive account.  We can’t reduce your balance below zero, you won’t ever owe us anything.  We can’t reduce the balance in your transfer agent account (stock you’ve transferred).  We want active members.  You want us to have active members.  We’ve never actually reduced anybody’s balance, but that time will come.  And when it does, that 81,000 member number will drop.