Greetings HHSE friends and followers - in response to the Form 4 notification last Friday - that CEO Eric Parkinson was "converting" previously accrued / deferred salary to Common Stock Shares - some of the responses shared with me from various stock chat boards represent such a profoundly false impression of this move that a response is merited. While anyone with an IQ above room-temperature can see that this move is a POWERFUL sign of management confidence in HHSE, for the sake of those not thinking it through, I will clarify:
The conversion of $362,949 in deferred salary at a $1-for-$1 basis means that Eric Parkinson will receive that dollar amount of shares as per the closing on the prior trading day. These shares will bear a Rule 144 Sale Restriction legend, and cannot be sold for a minimum of 12-months. So, is Parkinson planning to SELL these shares in 12-months? Or is he making a smart move to get shares prior to the jump to $.10 for HHSE?
In my humble - yet deeply informed - opinion, right NOW is the time to be acquiring shares of HHSE. There is an army of traders / investors (500+ strong) that have communicated the plan to support the HHSE stock following the uplist, the news of our production slate and the anticipated worldwide media coverage from Cannes on our industry announcement of the MyFlix launch on June 24. Hitting $.03 per share seems to be very quickly obtainable... and the target of hitting $.10 seems like a proportional value goal once MyFlix is on-line (e.g. proportional to the valuation of the MyFlix streaming service once on-line / relative to the total of HHSE shares in issue).
Even though these new shares are RESTRICTED for 12+ months, for Eric Parkinson (or any direct HHSE officer or affiliate) to sell Common Stock shares, a sale would have to be conducted under a registered S.E.C. 10b5-1 plan. Such a transaction occurs through a blind-sale with a broker-dealer, and is limited to 10% of the daily trading volume for the equity. The beneficial owner provides the broker with a "minimum price per share" (such as $.05) - above which the broker can sell shares into the market over a 90-day period, again, provided that the daily volume is not more than 10%. Additionally, the total amount of shares that an officer can sell during any 90-day period must be LESS THAN one percent (1%) of the total A/S for the issuer. So - even if Parkinson were selling (he is NOT), the move would be publicly announced in advance and the impact to the upward trajectory of the PPS for HHSE would be minimal. FYI, the last time Parkinson sold HHSE shares was in late 2013, over a dozen years ago.
The act of converting deferred salary into SHARES happened because Parkinson KNOWS that the shares are worth MANY TIMES MORE than the cash redemption value of the deferral.
To any seasoned business person, this should be obvious. But to the professional naysayers (who have been hired to "bash" the HHSE stock and it's officers), painting this move as something negative (!!) is the most creative thing they have ever done. Well, maybe it's the second most creative... with the all-time winner being when the SAME I-Hub posters declared that HHSE President Fred Shefte was a domestic terrorist and prison cell-mate with Timothy McVeigh (!!) A normal, functioning brain would have not come up with that insane of an thought, either. But their agenda is NOT to present wise, accurate or truthful advice... their goal is the OPPOSITE. They want to instill fear and uncertainty so that people are suckered into selling HHSE when it's low... and as they have proudly boasted on chat boards, they bash the price down, then let it pop back towards actual value, then dump... and "rinse and repeat." They KNOW that their days are OVER with our uplist and huge numbers of new shareholders flooding the volume and drowning their efforts.
So, consider the source... and enjoy the ride as we launch this ONWARD AND UPWARD!
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